96 since halloween. our road map begins with the markets. we could be in store for a four-session losing streak. that stronger than expected adp number adding to worries the fed might taper sooner rather than later. >> and a holiday treat as november sales give sales a lift. >> and a double whammy for financials. citi with a downgrade and we could see a tougher than expected volcker rule. >> and ron burgandy means green for dodge. sales fueled for the durango. >> news on concerns that the fed might scale back their bond buying program when they meet later this month. we'll get ism services and new home sales in about an hour from now. it's been said maybe december tapers right around the corner, jim, if numbers like this keep up. >> i think it's tough for yellen to come in, we start tapering and we get some big frackus in january. we forget the two parties hate each other. they tend not to accomplish anything. worst congress in history if you care about output. she's going to be reluctant do that. people are starting to talk about doing the over 250,000 jobs on friday and that means interest rates go to 3 and that means ultimately you can buy the banks. that's the one group that does better at high rates. >> net interest margin. if we get above 250, that would be a good thing. >> you're going good news/good news? >> i'm going with the jobs are good but not necessarily good for the stock market. >> right. that's why i think 17% of the market will be good, another 83% that gets hit. i think that's what this downturn is about. >> adp, the estimate was 170 and they severely underestimated the october. so this is the strongest adp number in a year. >> i'm sure some people say it was just recovery. the retail world is very split. the auto world is not split. it's very strong. yesterday the autos were the tale of the tale. the stocks were all down because what you have said, david, we have too much employment. you've seen the last good number. that was an action that typically said peak in earnings cycle. i don't agree with that but the stocks are flagging 3% rate and someone is going to say the incentives are going to cost more. that's such a convoluted way. >> gm has ban little weak lately, also because there was a pricing period on big convertible there and that means people short the stock to set up that hedge. it was not artificial but may have been weighed down on that. >> it went up on the news that the federal government is almost done selling. i didn't know a hedge fund that didn't know that already. that was a classic moment to short. at least we came out and said it. >> so we're going to start talking taper again and again and again. >> there will be many companies whose earnings are much better than we think if this is true. but we don't get earnings season until alcoa and that gulf between now and let's say the nfc championship, we'll try to put it in a nice light is so far from here that we're going to have to -- >> you mean eagles -- >> how'd you know? >> broncos, come on. >> win out, win out zip have to tell you it's too far and that's the big issue for me, which is the earnings are going to be pretty good i think but they're so far away. in the interim we do 3%, maybe people start talking about the fed impotent here, all that kind of talk, which by the way, the real estate investment trust have been signaling this. they're like hammered relentlessly. >> they never really got off the map from when we first started hearing. >> finally we got a year where shorting the ten-year worked. after years of saying this will be the year, that finally worked. >> i told you so. >> we're 176? >> we're up over a hundred basis points. >> look, the numbers for mortgages are bad. a lot of people think that's bad for banks. that's a risk business that's not as great as the no-risk business of paying you 0.8 on a five-year cd. cd rates still -- still not going up! if you want to examine what the banks are doing -- >> it's like the prime rate. it always moves faster in one direct. >> mortgage apps, fifth straight week down, refi rates, the lowest in september. >> this is facetious. the penalties for sure for european bank regulators, not as high as the penalties per sure by the u.s. but there's another check -- >> there is and it's adding up there. we're going to talk financials given the volcker rule. jcpenney, the shares did appear they would be up this morning. i want to take another look at that. the department store chain says sales jump 10%, that was the second straight year for jcpenney. you got shares of express done on third quarter earnings, which missed expectations, as well as current quarter guidance, which is also below the earnings that analysts have. the reason i mention jcpenney there, it's not up at all. in fact, it is down, which i had noticed. let's not forget the comps they're coming off of. ron johnson set the bar so incredibly low that if you can't beat it, you're done. >> by selling something you beat last year's. what's more important than penney is michael weiss is the company's chairman and ceo at express. i'm sure some we deal with will criticize me on this. he's got a look for people entering in their 20s the workforce, he has the right looks. this is not teenage. this is another demo that's not spending. >> wow. there is a stock that's going to be down sharply this morning and it goes back to the same theme we've been talking about for three or four months, and that is that apparel is not selling as much as people buying mobile stuff. >> and maybe they go into the trunk. mr. jaffrey on squawk on monday blew the numbers out buts that is the lower to mid-rate jump. and they made an acquisition. i've fancied myself as a bit of a retail enthusiast. >> we didn't know that. that's shocking. you a retail enthusiast? >> you got a nice hair cut. how's that? >> thank you. >> you want to go fight in the schoolyard after this? >> what? i used to get beat up all the time until i realized it was okay to hit back. >> was it carl icahn? >> my father said, listen, stop getting beat up already. boy, did i ever go the other way. >> i would not want to see that. >> the first time i got the beatdown it was extraordinary because his mother called my mother. my mother said will you give me a break? he's been beat up every year. it's his time, it's his time. >> we got a raw scores downgrade today. yet that again is a consistent player. consistent. i fancy vince's apparel last night on "mad money." i am so not a vince wearer, by the way. my tailor is named vince. but that stuff is selling. >> two months in, they do not believe yet. >> i think what happens with penney is what does survival mean to the price-to-earnings multiple? if they're going to make it, maybe some other guys are doing better. i'm throwing my hands up with this group. william sonoma. anthropology good, urban bad. even within months. gap good, gap bad. who can figure this stuff out? the only group that's been consistent, cvs, walgreens and rite aid. drugstores. >> citi removed from the buy list and a tougher than expected volcker rule next wednesday. mike mayo calling it the new era of big brother banking. >> oh, please. when i read that story i said tougher than expected by who? that's why morgan stanley has moved away so aggressively from fixed income. if we get tim masset over at the ftc, that would be something, not this. this is something we all talk about. no! that article's wrong. >> the fact that hedging activities which they've argued for on a larger context which would allow them to still make one-way bets, let not forget the whale, for example, the cia of jpmorgan, when we found out about it, never making these enormous one-way bets when it was supposed to simply be hedging, that is what they're trying to stamp out here. will not hurt the flexibility of the banks? >> no, because no one likes those banks. those are all the shorts. anybody doing that stuff is not what we want. we want stable earnings from other streams. anybody still doing this volker stuff is like, geez, i'm going to take you down to the -- >> what do you make of the argument that our competitiveness around the globe will be hurt as a result of this? >> i've heard that, too. >> is everyone going to start going to -- >> the japanese will come back. >> i want to go right into france, which is being downgraded continually. wire my money over to anglo ireland, the bank of ireland, rbs! >> there are some big global behemoth banks. >> do you like the citibank downgrade? >> no. >> 20% up side since they named the conviction model. >> morgan stanley, they downgraded sun trust today? they're all the same, people! they're all yield curve. what do we have to do to teach these people? >> if you really are getting regulators in terms of not allowing to you take any risk, what are you doing there? when you get to the point where they're telling you who you can make a highly leveraged transaction loan to or what the lef ramg ratios you should be looking at if you're considering those, that is bizarre. >> when we get to the point where these banks almost ruined our society and broke our country down -- >> the answer is to make sure they're not too big to fail and let them take the risk and their shareholders and creditors will take the risk. >> i think if you're a bank and europe still doing this stuff, i'm shorting you against bb and t, i'm shorting you against key. do you think that key does any of this stuff? do you know what key does? they lend. they give you certificate of deposits that you -- i like that! >> they have customers and countries all over the place. >> citi i actually like. i'm just saying that volcker tougher than expected. i mean, talk to the ceos. they all saw it coming. it wasn't tougher than expected for any of them but these reporters don't or the reporters are so hated by the ceos they won't speak to them. >> and the analyst, too. >> when we come back being ron burgundy teaming up with dodge and it's working. >> the rear seats fold down perfectly flat. and you know what that's for. of course, i'm talking about sex. >> that outrageous ad campaign pushing dodge durango sales a lot higher. and later on, the ceo of harley davidson looking to rev up sales this morning. take one more look at futures. another morning of red arrows. a lot more "squawk on the street" from post 9 in a moment. 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[ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. all right, america. say hello to the new dodge durango. this thing is going downhill fast. it's definitely odge. >> you can't get enough of it. call it the ron burgundy effect. it's spiked a surge. >> chrysler dreams up this ron burgundy campaign and all of a sudden the durango is the vehicle to have. nothing else changed really other than this outstanding campaign. we have stores that are up as much as 50%. we're up something look 35% on the durango. >> 35% on the durango. >> isn't that incredible? "mad men" didn't do as well when they had the big tobacco campaign. that's amazing. this company is coming public. this is when they should issue a gazillion shares, by the way. have you been dvr'ing the commercials? >> yes, will ferrell is one of the people i would do that for. >> have you met him? >> he was in our studios -- >> i think he kissed sue herrera. >> i ran out to see him and i missed him. >> they gave him creative control of this whole campaign. there has been discussion about incentives especially late into the month, particularly gm and ford to have to keep up a little bit to keep the stocks going. >> i still believe the all the owe market is genuinely strong. the strongest markets i find are the auto markets and sports peril markets. those are the two doing well that i find in retail that i know are consistent. >> underarmour never cuts price. nike -- >> lulu. >> i worry about lulu. i struggle to find confidence brands that come on and say you're fine to by x. >> home depot you said. >> yeah, but lowe's was bad -- inconsistent. lowe's had been catching up to home depot. home depot then pulled ahead of lowe lo lowe's. sprouts did that market. >> a nice outing. >> when we come back, get into the green with cramer as "mad dash" is on deck as we approach the opening bell. one more look at futures on a wednesday morning and we will get ism services at the top of the hour. back in a minute. gpipes and drus playing over ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. if i can impart one lesson to a new business owner, it would be one thing i've learned is my philosophy is real simple american express open forum is an on-line community, that helps our members connect and share ideas to make smart business decisions. if you mess up, fess up. be your partners best partner. we built it for our members, but it's open for everyone. there's not one way to do something. no details too small. american express open forum. this is what membership is. this is what membership does. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. we got six minutes opening bell, it's "mad dash," middle of the week, hump day. let's talk at&t. >> this is a worrisome downgrade. why? jpmorgan. first of all, the stock is one of the five stocks in the dow that is not up double digits. it's already been a lagger. second, it's got a big yield so people will be saying i can hide in this. but they're talking about wireless competition, maybe a wide-eyed acquisition in europe, david. is that the talk of the town? >> there's been no secret randall stevenson, the chairman and ceo of the company has tried to get his shareholder base thinking about will they or could they do something in europe. vodafone is the name we hear most often, vodafone will be willing to sit down once they conclude the verizon wireless transaction. we'll see if we get anything there in terms of at&t/vodafone. would not be a surprise. but the other concern is erosion and lack of growth in wireless in terms of share and what we talked about many times, which is increased competition. >> sprint mobile. >> sprint is going to spend a lot of money next year and t-mo, as you say -- >> boy, are they good. remember we talked about ad campaigns. the ceo there is an ad campaign for t-mo. they just have a different feel about them. >> by the way, there may not be consolidation. the ftc's chair seemed to indicate he would not look favorably on four to three. >> i don't want to be in this stock. i would be in verizon if hi to -- if i had to be in one. another worrisome downgrade, evercore downgrades ebay. a lot of people have been rumoring thinking something is wrong with ebay. that's why the stock went down here. right here maximum pain. guy waits for a bounce and they he takes it off? does he know something, david. that's what everybody's buzzing about. does the evercore guy know about some kind of weakness? everyone says this guy has a good call on ebay. >> all right. we got a lot more to come here on "squawk on the street." stay tuned for the opening bell. 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[ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. you're watching cnbc "squawk on the street." a busy morning. we got hot econ data. adp coming in with a nice beat, 215,000, estimate was 170. that is the strongest adp number since last november and portends some good things for the jobs numbers coming on friday. we will get ism services in about half an hour. here's a look at the s&p at the top of your screen. here is the big board, oil and gas company antero resources celebrating its recent ipo and over at the nasdaq, the alvin ailey dance theater celebrating their new performance season. >> you were talking about the ebay downgrade even during the break. >> david was so right. now all downgrades are created equal. ever knows evercore does quality work. this reads like a quintessential be careful. two weeks ago they were not talking about earnings, they were talking about -- this is too intelligent of a downgrade to stay in it if i owned ebay. >> for the last 20 years i've given a lot of hard times to analysts, for good reason. there was no wall between banking and research and it was a free for all but even now there are many analysts who are not particularly good, who are young or sometimes you pay attention about what they say not about a price target about a buy or sell or simply the information but there are actually some who can do a good job. >> and this guy -- this downgrade worries me. i would not own the stock. >> dow is down 40. this will be four days down. again, since last september is the last time we had a stretch that was five days down on the d dow. it's funny, we walked into december saying it's the best time of the year, why would you want to pay the tax year? >> there's a lot of people positioning themselves for a big number on friday in the nonfarm payroll. they say why not teak profits. alternatively there's a vacuum of information and people say i got a great year. i'm concerned only that when you get to 3 there will be another wave of selling and that may be when you buy. that wave of selling. not this wave. >> do a little picking. always good to pick. >> we did come into this week giving all the reasons why there were very few reasons to sell. >> and that was bad. i fell into that complacency. by the way, there is one place where we saw -- i want to point out i like oil here. you have opec saying all the right things, you have no real cutbacks. you have this glut finally ending because you finally got the selling keystone part out of curbing. that is very good for the domestic oil companies and not so good for the refiners. >> the biggest losers this morning, valero -- >> a lot of people said goi goto get into refineries, i got to get into refineries. michelle caruso-cabrera yesterday with a fabulous piece about mexico. she does fine reporting in areas we have to spend more final right. >> you got that right. >> and lennar, is it too easy a story that you sell the housing companies here? >> it's been the right thing when rates go to 3. when you get there, you revisit. turns out the companies are making a little bit more money to get there. i don't have a thesis to buy those stocks. i have a theses to buy a whirlpool because i think there's going to be turnover. the cfo talked about when your house gets above water, you spend more money on it. so i'm not saying the housing related's bad but i don't have a thesis going on a home builder. not right now. >> not much green on my screen this morning. shares of hewlett packard up 2%. >> because i pushed a stock about as hard as i've ever pushed a stock in my lifetime. there will be people who said your head is -- i can't think of anything else other than the -- >> probably the reason. >> i pushed it really hard because the chart is great and i think meg whitman is pulling off maybe the turn around of this century. it's not that old of a century. >> and there's big volume. that's the cramer effect. you don't have to say so, i will. >> and tesla is down 2.5%. i didn't like it on the show. just kidding! tesla had such a big move that, david, if there weren't profit taking, it would be tesla, solar city and the 3-d printers. you have this 3-d division in israel. if you blow that division out, you'll blow that company out of water. your favorite voxel jet! >>. >> the musk trio, huh? >> musk. >> business person of the year. >> wasn't the year of the hedge fund. it was the year of the inventors. >> i prefer that year. >> because that's something we create as opposed to pushing paper? >> and they create jobs. >> the hedge funds wipe out jobs -- >> they doesn't necessarily wipe out jobs. you can have a 500 million business and have five people employed. i was. >> talking to the partner at goldman sachs over the weekend and we were saving in the 90s partners still departmeidn't ma much. it was only that recent explosion and i think that money goes into munis rather than creating new companies and that's what short. >> and it goes into quality -- which the president will talk about today. >> i got a house in long island, somebody's always puting up a 35d million house next to me. is there any house that's not 35 million? how much is that house? 30 million. i had a tough year. >> on this show we're talking about million dollar homes all the time or we're talking about whether the minimum wage is structurally located from overall income in this country. there's going to be a hundred cities tomorrow where there are pror tests about fast food wages and for a long time, those were starter jobs. but people are not in those jobs as starter jobs anymore. >> i think the dichotomy is somewhat like when lenin game from the fenland station and talked about the stuff with trotsky and said can you believe how much the oligarchs are making and the peasants are making nothing. our system has to create jobs. it would be fabulous if we created some good jobs on friday. i want the market higher because our viewers want the market higher but we got to get out of this world where it's burger king or it's ol gark. >> though with google developing row barts that are going to do -- >> bay the way, talk about holding the -- google is not going to roll out a radio service until next year. but thief been resilient as they got through the price. >> my charitable trust owns google. and another business of mine is the street and the programmatic advertising world is google's. in the meantime, did you see that resignation at facebook of a high level executive going from instagram to snap chat. i thought that was not a good sign. >> apple, we didn't talk much about it this morning. aing about upgrade for milanovich. >> i think this is china in their conference call talk about that china is delayed. and the competition in china is on the low end. when china mobile -- if china mobil does this big deal with am, there will be many people who will not have heard about that and they will buy apple. that's what happens. apple has this second wave. we can talk about china mobile from now until the cows come home. hey, did you know about china mobile? that's how it works. it's unfortunate. i wish everyone would read it and get it at the same time. >> the dow is off 46 again, a fourth day down in a row. bob's on the floor. hey, bob. >> reporter: we have more taper anxiety. the s&p futures dropped, 10-year yield, all good news, allnd cases the job report on friday would be pretty good. and not surprisingly your ininterest rate sensitive groups, home building stocks a bit weak being some of the utilities on the weak side. reits are also a bit on the weak side. let's state the obvious. we still on an up trand. but the way the example is building about this. >> we had a minor move down in may and june, another minor move in the beginning of october. since the beginning of october, it's been straight up. we are only 1% off of our historic highs. i said that yesterday butch we need to restate it. stocks are still in an uptrend. in usual, three days, even in johnson again, still not a long-term trend that we're seeing. express is the first company to come out and reflect on what all of us have been talking about what happened on thanksgiving. not only did they lower their full year earningsout look, they specifically cited the fact they had to discount so much. right now we've got a double whammy going on here. sales were below planned for express and the margins are due to discount. the good news, traffic was up, but mobile sales were flat to down. that's the story. express is reflecting that. let me talk about jcpenney. there is a lot less to meet the eye. david, if i remember, you made a very good comment about this. the company said 10% was really good and it certainly is better, double-digit gains are better than nothing but a lot of analyst himself 10% to 20% estimates for same-store sales in november. it wasn't like they blew the doors off. they just had a decent number. stern mcgee wassestmating their same-store sales were down 20%. that was sandy and they're very much around in this particular area. when you comparing, beating by 10% last year in 2012 was no great shakes. certainly it's moving in the right direction and i think you have that right, david. auto nations, the car sales numbers still very good. not amazing but ul 8%. november same-store sales, double digit gains in premium luxury sales an indication the high end is doing very well. back to you. >> thank you, bob pisani. and let's go to chicago to join rick santelli. >> good morning, david. all you have to do is look at this chart and it explains a lot. we're in the mid 2.80s. good reason. we're seeing better job growth from adp and not on in the current month but in the revisions. it's really putting hope out there. friday we'll see a similar jobs rrt from the government, from the bureau of maybe statistics. now, if you open the charts up, you need to watch all the goebbels fixed income market and if you look at the u.s., you can clearly see reare hiring. the ten-year u.k., very close to the same yield. we see that even though bund is being dragged on these sprirds and turning up, it's of a difficult a little bit. i think i'm hearing more interest from my international sources on trading this than some of the steepening trades intra market with regard to the u.s. foreign exchange obviously is a huge deal and there's been so much debates to to what will happen with the taper, the fed's program on effect in the forng exchange. but thing i can tell you, when you see a surprisingly strong number like adp today it, strips away a lot of the riffraff with regard to what we look at in the mark market and for a moment of two gives you a glimpse of something important. the dollar chart looks like the 10-your chart. keep that in mind. back to you. >> news of his lavish party, former ceo dennis kozlowski, he's getting parole after serving time for looting tyco. we'll have more when "squawk on the street" continues. dow is down 50. i love having a free checked bag with my united mileageplus explorer card. i've saved $75 in checked bag fees. 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[ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪ ♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪ a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ ♪ let's groove tonight, share the spice of life ♪ welcome back to "squawk on the street." i'm sharon epperson at the ny x nymex. we didn't expect opec administrators to make any changes, and they're not. we're not seeing much reaction in the brent crude market except to the down side, below 112 a barrel but the big change in the wti contract that has a lot to do with the industry supply data we got yesterday from the american petroleum institute showing a decline for the week of more than 12 million barrels and the fact that transcanada will start service on its southern pipeline going from curbing, oklahoma to the gulf coast. we're likely going to see more supplies coming out of curbing before the end of the year. we'll be looking for that curbing number from the energy department at 10:30. we're watching gold prices. they have reversed course. we're above 1225 an ounce. we'll see if this remains or a short coffering bounce for now. >> all right, sharon. so much going on in your world. thanks. >> dennis kozlowski will be released on parole after eight years in prison. he was convicted for stealing more than $100 million from tyco. a new york state parole board tentatively agreed to release the 67-year-old next month. his lavish spending of kous included that $2 million birthday party in 2001 for his then wife and who could forget the $6,000 shower curtain. apparently some of the conditions of parole, he's going to have to seek employment as part of the deal, can't open any kind of fiduciary role, a bank account or credit account without the parole board essentially giving him permission. >> that's pretty severe. the enterprise value of tyco when koz left was 62 billion and the current is $92.7 billion. that company was -- the parts were worth more than the whole. >> they've got a lot of different parts, adt, the one that comes to mind. >> there are a lot of good assets. >> the cult of the ceo, probably a time that we have moved past. >> yes weeks have. >> and given all of those people that we were, you know, lauded so often incorrectly. >> for a lot of the time i was at the journal covering emerson and they could not get their hand around how this new rival of theirs are rolling up and showing up everybody in the space. >> and they're such a discipline company, it must have been driving them crazy. i remember this guy did an interview with someone in a gymnasium. talk about a company, the ceo, that you flagged. >> talk about the competitors who also wondered who looked at worldcom, how are they doing this? on tyco, it wasn't accounting fraud, it wasn't enron. that's why they were able to move ahead once he was gone. >> when you deal with an emerson, he and ivan seidenberg, these are business people. they want to do the right thing. when they see someone pyramiding, and i'm going to use that word, they're like -- and the stock's going higher, their stock's doing nothing. the pressure! that was the towiga party. >> now that koz has been granted parole, what will his welcome home party look look? we'll get "six in 60" with jim after a break. that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge. all right. time for "six in 60" with jim. we'll start with norwegian, not the cruise company. >> there's 22 million shares that came in at 33 1/4 today. and access partners, that one is doing well, too. that's my favorite pipeline company. >> alcatel/lucent. >> i think they've been taking money from lucent. >> u.k. coming after epa saying stop picking on b.p., let them buy some leases, let them go. >> comeco, six buy recommendations. >> eddie lambpert giving people funds. >> keep in mind g3 licensee. >> jcp is their best -- one of their biggest partners, izod. a lot of good things having for tirico. g3, underarmour, nike, that is hot area. people love sports apparel. >> on "mad money," we're speaking to ken austin. he's avion, the man behind it and we're going to canada and doing a little canadian club chaser to technic er tr to tequ. i'm going to ask him about mez-cal. >> if anyone knows tequila, it's cramer and we won't talk about how. >> and coming up, steve case and the ceo of harley davidson coming up with new bikes nicknamed the piglets. 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[ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. welcome back to "squawk on the street." we have two months of new home sales, september 354,000, october 444,000 and that definitely bests the expectation of 430. if we look at the ism, nonmanufacturing for november, a bit of a miss here at 53.9. we were looking for a 55 number. and just to give you some context, in august at 58.6, that was the best number since '05. so like much of the data today, especially the jobs report, most of the data airing on the strong side. for some real granular detail on new home sales, we go to our expert diana olick. >> these are some really good numbers. you have to look at september versus october, a big drop in september, a big jump in october, up 25% from september month to month. these new home sales numbers can be very volatile. they're also based on signed contracts, not closings. this is people going in and signing the contract in september and october. we do have these two months because of the delayed government shutdown. 4.9 month supply on new construction right now. that's good. that's coming down from the five-month supply we saw in august. we want to see these homes selling faster, but we also need to see construction ramp up and we have not seen that in the housing starts. home builder sentiment has not been great in the last two months so going forward we don't know we're going to see any big jump in these numbers. this big volatility that we're seeing in september and october, likely due to the government delays. but to see the numbers, the 444,000, the expectation was just 427,000. the market and builders should like that. nothing on pricing yet. we do expect the home price to go up for new home sales because we've been seeing that has as a trend over the past self months. the builders have had that pricing power because there is so little supply on the market right now. simon? >> thank you for that. rob morgan also joins us and our very own steve liesman joins us from washington. steve, what is the big picture takeaway now from the data that we're getting? >> i think the economy was strong in the third quarter and some of the weakness that we're going to get in the overall gdp number in the fourth quarter i think is exaggerated by inventory turn around. jobs are doing okay, we came back from a little swoon we had in july/august and it looks like businesses in the private sector were able to find their way through or even see through the government shutdown and hired and seem to be doing okay with the big exception to the data capital investment, simon. >> i know that's a big thing for next year. tom, the dow and s&p have each recorded eight consecutive weeks of gains. is it any wonder that we're correcting? >> i think what the market has to grapple can is what's your next catalyst to move higher? we have a modestly better economic profile built in for 2014 but it's still a better profile. while it may seem like a rather small advance from this year, the the bottom line is the incremental growth could be seen as a catalyst into the equity market in 2014. >> what do you think, rob, will work now sm. >> we're consolidating a little bit here. fund managers have had some good years, they're locking in some gains. i continue to like stocks from a big picture standpoint. my favorite sectors are technologies, industrials and some other -- and financial. i still like stocks and really in the cyclical spaces. >> hey, simon, i want to note that rob did not mention tapering and the feddon. i'm just wondering if the market at this point has seen through this, is expecting it. i think one of the parts in the big picture to talk about this s that these kind of jobs number does create the possibility of a december taper. i don't think that's off the table here but i'm not sure how concerned the market is about it right now, simon. >> tom, why don't u pick that up. >> i think it would be shocking if the fed actually tapered in december. i think much to steve's point. it's what we've soon is you haven't seen enough. we have the payroll report on friday. even if we come in better than consensus, that's not the robust numbers -- excuse me, let me restraight that. you're not going to have a robust string of numbers for the fed to respond to. we think march is when the fed will taper. january is a transition month. you go from bernanke overdoing the but march is where we're really looking at a that point zip know, steve, you hob nobody with bankers all the time. in your general, are they like normal people? are they like a co that says we're going to have redundancies but let's not tell them before christmas. >> it is interesting that a lot of these central bankers were schooled at mip, that they're infect and dries. i think that's one of the things that exacerbates people about central banking and monetary policy. >> maythey're meeting the week before christmas. does that mean if they announce a taper now, it will have unknown effects, let's leave it, go on holiday and think about it when yellen's in charge in. >> i'm not sure if the christmas holiday, if they have overwhelming evidence and there's support on the board for a taper, they're going to do it. i'm not sure how much christmas is going to matter all that much in that regard. one of the litmus test is confidence in the economic improvement. when you're a central banker, you have to think about how your -- their confidence has to include their thinking about the effect of their taper. if they think a taper is going to kill christmas, hurt the economy, they would not pass the litmus test. >> we will see where the december jobs number takes us on friday. guys, thank you for your time. >> thank you. >> in the meantime stocks have been on a three-day losing streak. if you're an opportunity, that means a lot of buying opportunities out there. you're dominic chu has more on that. >> good morning, carl. if you believe this is an opportunity to buy some stocks on sale. we put together a list of stocks that might be the good candidates. it's a buy the list shopping list and we went back and say over the past three years, what are the best performing stocks. among the best performers are health care and financial stops. look at the top three between black twied and check us up health care. yes, it was bailed out but it's been on a tear ever since. it's up 21% off average a year. consumer discretionary are three of the worst performing stocks during the index during this time. there are some big names you wants pay attention to. goals is down 9%, best buy down around 10% and expaidia down 16. if you really are an apartment mist and you believe the market is going to go higher, check out sof of the stocks that have been performing best in history. >> got sot news out of vienna as oppose pd. >> steve is with us live with details on that. hey, steve. >> reporter: there are big differences this goes right to the heart of politics in the middle east, the battle between the shi'a and sunni regimes, the latter being saudi and former being iran. that's why we're going to have the same secretary-general for the next year. abdullah says he will continue as the saenl because he's -- he's going to continue as the secretary-general. i talked to him earlier. >> the most important thing for me is iran to come back, for iran to be a normal member of other countries, they can explore, they can develop, they can produce. this is the most important thing for me. >> and herein lies the point. iran could put 4 million barrels on the table. i spoke to their oil minister. he said as soon as sanctions end, they want to be producing 4 million barrels, which is technically possible. plus the iraqis are putting a lot more oil on the table and there's hope for the libyans and nigerians and that could spell a perfect storm for opec in 2014. the next meeting is signalled for june 11, '14. if all those can countries put the oil on the table and we see the shale production, then we could see a very serious threat to the current ek will ibium. we suppose to -- he's not worried about it. and back to you guys. >> thank you very much, steve. steve sedgwick live from vienna. >> steve case is going organic, with his money as well. he'll be here to talk about his big bet on orgivenic food. tdd#: 1-800-345-2550 trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. welcome back to "squawk on the street." check out shares of intuitive surgical. they have ordered a recall of its da vinci line. stock is down 25% year to date. in october they reported a decline in third quarter earnings on lower sales. they took a dip but they're off their session lows, carl. back to you. >> thanks, dominic chu. >> organic food is a multi-million dollar business this these days. and now steve case is making a bet on it. he's here to talk about his latest investment. he's also the former ceo and co-founder of aol. good to have you back. >> good morning, carl. >> we've been talking about organic and pharma as an overall friend. the fact that it's piqued your interest is interesting. >> i think this space is going to be a rapidly growing category. it's really important. as you know and your investors who watch the show know some many of best investments in the past are starbucks and chip olts. two of hottest ipos were pot belly and noodles and company. it's a great theme around getting people to make healthy choices and we feel there's a big opportunity to build a valuable company here. >> it's called skreet green, thr -- called sweet green. do you think some of the larger chains have long-term exte existential worries? >> i believe they should. people just don't feel that a salad links to mcdonald's. but that's what sweetgreen is about. it's not just about the food, it's about the whole experience, how it works with the community and works with local farmers to create a farm-to-table opportunity. i think there is a big opportunity here. sweetgreen has 22 locations open. they started six years ago, it's got tens of millions in revenue pand we think it's scratched the surface and can emerge someday as the chipotle of the space. >> i'm trying to get an idea of the magnitude of the investment you're making. whether you're a self-made man paying it forward or whether you believe that one of the great revolutions of this century will be fool and the peeling back of the horrors that are in the present food change. would you go that far. >> i would. revolution likes to back mana management teams. food is fundamental to our lives, something we spend many hours each day thinking about, what we choose to eat does have an impact on our individual health. that's why we have an obesity krifs. we think this could be a ga part of this revolution will make power on adjustment. there there are sweetgreen riding that way and we think it's important to give people in our country healthier options. >> steve, we like to lean on you when it comes to businesses, small business and innovation. you wrote a decision yesterday about detroit. up said you don't want to get cocky or complacent like detroit did. what went wrong there and how do we keep that from happening again? >> first of all, i should say detroit is fighting its way back. the reason there's some open hoep there is not just the stabilization of some of the gm and big car companies butt startup now in downtown detroit is extraordinary. the reason detroit tell into where it is now, being bankrupt, losing 65 of its population. it was like our nation's silicon valley, arguably he was corporate and global competition set in and detroit has suffered greatly. it's fighting its way back but i think that's encouraging. my point around looking at detroit is to say as a nation, we have the been the leading economy because we been the most purple nation over the past two years. now the strim revelation and support them and celebrate them so we continue to have the purlial country and continue to drive our economy and be the leader of the free world. it's really important. >> the big talker to some dwre has been the amazon rogue story. where do you rate amazon? >> they've been trask. what amazon has done the last two decade. >> they are an example of a large company, google's an example, apple is their example that, have gotten to significant scale yet still are figuring out ways to innovate and be nimble and entrepreneurial. most companies as they get large become more defenders and the entrepreneurs are the attackers that are really challenging the status quo, sweetgreen challenging the restaurant with a better solution that's more in step with the trends, the edesired it's want be vat. >> i hope our next interview is at a sweetgreen's. >> i do, too. stephen choice joining us from new york. >> pintres is coming of age. we'll tell you how companies like target and nordstrom are using it for online and in store. that's next. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. 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[ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. this holiday season, pinterest is gaining some ground. what does that mean for the startup. julia boorstin is live from los angeles with more on that. >> reporter: carl, pinterest is a massive force in holiday retail, hoping retailers find gifts and brands find consumer. a market research firm finds 54% of pinterest users spend more time on the site during the holidays and 94% say pinterest has changed their holiday preparations. that translates into revenues for brands. revenues doubled over the holiday weekend and was up by 3.6 times on cyber monday. those results are drawing about half a million brands on to pinterest and they're sharing products online and featuring popular pinned items in their stores. the company, has a $3.8 billion valuation and has zero revenue but it s closer to a business model, announcing promoted pins back in may. >> one thing that we hear from our partners is when our pins are in principle tesinterest, w lot of value. we are experimenting with an opportunity to allow them to do a promotion of pins. we're not charging for that just yet. >> but charging could come soon. >> when you go to pinterest, it's a discovery experience. it's like walking into a mall, you don't know exactly what you want but you see lots of things and when you see something, then you know you want it. >> with the virtual mall so popular, we do expect pinterest to start charging brands next year. >> amazon announcing today that this holiday shopping weekend was its best ever for its kindle. the devices are available at kindle.com and another day for them to grab the headlines. they're not giving specifics about how many kind ls they let see, the kindle fire was on sale for 179. those are some pretty good discounts. the way to i think put it into context with the entire tablet space, this isn't so much about a challenge to apple as i think it is to google. you're either buying an ipad or buying certainly android based. amazon has done a better job at layering their own software on top and the new may day where you can get help. >> the debate in my house is kindle versus ipad and even in their release some find the kindle lighter than even the ipad air. >> it is a debate between kindle and ipad. so amazon is really winning versus the other android folks when they win. >> and it's still about an ecosystem. >>. >> i'm sorry to be cynical but why really understand how many candles are originally sold. we don't the real weighted gauge as to whether this is successful or not is looking at amazon's media sales. >> despite low rates, mortgages applications continue to slide, down 12% last week. mortgage levels are at the lowest we've seen since september. we'll tell you why after a break. thrusters at 30%! i can't get her to warp. losing thrusters. i need more power. give me more power! 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[ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪ welcome back to "squawk on the street." the decline in weekly oil supplies according to the energy department down 5.6 million barrels. that was greater than what analysts surveyed had expected. keep in mind the american petroleum institute last night said in their report, weekly supplies had dropped by 12 million barrels. so this is far less than the industry report but still greater than expectations, a decline of 5.6 million barrels in crude supplies for the week. in terms of gasoline supplies we saw a rise of 1.8 million barrels and distillate fuel supplies up by 2.6 million barrels. a lot of folks want to know what is happening in curbing, oshing oklahoma. that pipeline news about the pipeline going to the gulf coast, being in service by january 3rd and having to fill up before that time that, is something that is likely to be watched very carefully and will be supportive of oil prices by the contract. back to you. >> thank you, sharon epperson. we want to turn to real estate, new home sales riding 25 347b9% in october. that's the biggest jump in over 30 years. but there's still concern over the lack of first-time home buyers. great to you have back, dolly. >> thank you for having me. >> i wanted to get your reaction to mortgage apps, which are down five weeks now. what do you think is going to happen now? >> it's a problem with rising prices and rising interest rates and no great signs of unpresident obau unemployment yet. and they're all doing the buy versus rent analysis, right? they're saying how much does it cost every month to do this or do this. every time there's an interest rate jump, rent win. >> funny, zillow was on yesterday and he said on mobile people are beginning to do a dual-track search. >> without a question. everyone is coming to me and saying if i rented this, what would it cost? different from the chinese group. >> we talked to you a couple week weeks ago that china has had and it's been getting strong, picking up steam as we go along. one of the big reasons is the chinese market and investors are a true investor group versus the u.s. market is more of a let me keep some money under the mattress group. they want to be fully invested and they're looking at new york and san francisco real estate. deer valley montage,ing and. >> you said something that made me think after. you said there's no reason for anyone, and i think you were talking about new york, to sell. why is that? at what point does this foreign interest or should it trigger to say actually maybe i should cash in my major asset now? >> well, in new york specific, the market is still overwhelmingly co-ops. as a result the chinese aren't buying co-ones. they can't rent them up, they may be refused. th they. >> and all kinds of reasons. they're not looking at that as an investment, and chef shouldn't since they likely can't rent it ut. that's one of of the major reasons. the other is where are you going? you're cashing out, you can't trade up because the tradeup market is also tight. there's really nothing you can do. you're stuck. zahn that same argument that you are used used. >> but rentals are also very high. then you're paying taxes the. >> randy: he has massive rent on his apartment putting my capital into the. >> and that happens a lot. we see these very big rentals, 50,000, 60,000, 100,000, 125,000 a month on a rental. you'd be surprised. this is fairly secret market. it's not out there. it a whisper. >> we had mentioned the first time home buyer dynamic when we flounced you. how worried are you about that? and have new home builders, this very desserted -- the first time home buyers are really stuck buying existing inventory. that's the reason luxury home builders aren't buying first-time homes. there's really not market for it. >> not anymore. one of the sad dynamics. >> it is sad because it's really such a big gap between the wealthy and can't get wealthy that i don't think it's a healthy dynamic. >> i think think obama is going to speak on in about 30 minutes' time. >> good. i hope he addresses it. >> dolly, thank you so much. >> thank you so much. >> check out what's happening with deere. the stock is spiking after announcing repurchase of $8 billion worth reberth of 9 we'll call it 93.5 million shares if it could buy back. that's about 25%, simon, of its for you? >> so do new likes equal 2014 in just a moment. ♪ and i don't want to before their gift helped preserve the point... before a credit solution was used to expand their business... before trusts were created for their grandkids' educations... they chose a partner to help manage their wealth... one whose insights, solutions, and approach have been relied on for over 200 years. that's the value of trusted connections. that's u.s. trust. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. you can fill that box and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. could 2014 be what you might call the year of the flying hog? hog is the ticker symbol of harley davidson. their ceo joins us now. could it be the year of the new piglets, which is what dealers are calling the new concept bikes? >> just in early november we revealed the new what we call street 750 and street 500. so those are bikes that are really designed for the new urban generation, right? they're agile, nimble, built for urban riders. they fill a need that our dealers have had for some time. >> for a long time i think they complained about the fact that there was a hole in the range that, you discontinued a few years ago. what's fascinating about this and these i believe are concept bikes, there wasn't engines in them, is you've done it with focus groups from brazil to india. you're looking at much has driving restricters versus what actually will sell on main street here. this is a very different approach for arch harley. our focus has been to extend the brand oaf what's typically been our core riders over time. >> which are basically middle-aged white men? >> exactly. our employees have done a great job. we've brought younger riders, female riders and we've expanded our reach internationally. >> where are you going to make them? india? >> both india and in kansas city. >> are you making the parts here and shipping them out as to do to brazil but all the bikes for north american sales will be built in kansas city. >> we keep trying to get our head around the consumer, where they're at. some retail shows you that they're stretched, some retail show you that they're flushed. are terms of financing getting to where you think this is more of a leap for them? i mean, it's a discretionary purchase, we always say. >> i think it's a dichotomy. i think there's consumers that do have the resources to spend on these types of consumer goods -- >> toys. >> and there's those that don't, right? the financing is readily available. we do financing through our harley davidson financial services division, but we think that, you know, we think that there's -- it's a dichotomy. >> can i just ask you about the stock price and about what investors can expect for now because you've been at at this four now years, you've cut cr k crock -- over the last couple of weeks, people have raised their price targets to where you are but they've gone to neutral. the answer is it still a consumer market base, it's strong competition. what would you say to where you are now and what you can promise for 2014? >> i guess what i would say is -- and some of those things are true, i think, if you step back and look at it. but what i would say is what we've done is we've transformed the company. so you mentioned four and a half years, right? i mean, we've transformed the way we manufacture products in a really great way, in a world class way. we've transformed the way we design and develop products. we have a pipeline full of new exciting products coming. you just saw that with the launch in august of our rushmore product line. now the reveal on the street. if you look at what we've done in manufacturing, they've gone in -- >> i have a colleague, kelly evans, and she was trying to try them out. >> what do you ride by the way? >> a have a road glide anniversary model. >> tricked out i assume? >> as much as it can be. >> thank you for joining us, keith wandell. >> there's a little bit of move. hayman capital, run by our friend kyle bass, has taken a stake in gm, a hedge fund taking a stake in a large auto maker. it does have the stock up. the presentation or the thinking behind his thesis also posted publicly on a web site called harvest, on which a number of hedge funds are going to start to post their ideas or at least the thinking behind them. i did speak to bass, though. basically what he had to say about gm and the reason for taking the stake is they believe it's cheap, three times value to ebidta, minus pension costs, but the costs are a lot less than what they were than prior to emergence from bankruptcy. they are currently taking share back from the likes are ford and chrysler. also points out the government has been a significant part of the volume in the stock for some time. they are -- that will not just mean selling pressure on the stock is gone but it will also allow the company to reexamine an executive compensation plan and make it more competitive perhaps, share buybacks, dividend, all of those kind of things that have been handcuffed because of that governorship ownership of gm. reports of that stake have taken the stock up. now, let's not forget, of course, these hedge funds do not know everything. th that. >> busy week for that stock, that's for sewer. listen up, shazam is shaking up the world of music. we'll find out how they plan to compete with the big guys. that's coming up later on. dow has reversed its losses, up 100 points from the session low. we're back in a minute. we're aig. and we're here. to help secure retirements and protect financial futures. to help communities recover and rebuild. for companies going from garage to global. on the ground, in the air, even into space. we repaid every dollar america lent us. and gave america back a profit. we're here to keep our promises. to help you realize a better tomorrow. from the families of aig, happy holidays. hmm. mm-hmm. 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[man]lumbar button [woman]lumbar [announcer] tempur-pedic.the most highly recommended bed in america. now the fun begins! hey, rick. >> good morning. today is a great morning. jobs jobs jobs. i love those three words. and today we have an ample helping both in the present and in the past through revisions. maybe this will be indicative of a trend we'll see with the bureau of labor statistics' version of the number on friday. but it still doesn't mean things are going to be easy. as a matter of fact, for all those traders and investors out there in tv and radio land, it may start to get way more complicated. let's go through it. we have the economy, we have stocks and we have rates. it's been less than an hour since the dow jones industrial average floated into positive territory. it was under pressure after the good data, and we all know why. but what we don't know is maybe why it had nothing to do with the data or getting used to the stronger data. i think we'll have to listen to john harwood. there's humbli ae's rum blings washington. i'll tell you where it gets complicated. fed drama. no matter if you agree with the programs, disagree with the programs, they they've been useful, none of that really matters. we used to go from the economy being strong to making stocks strong to pushing rates up. that's why everybody says, hey, if rates are going up that's a good thing. traditionally absolutely. now? well, who knows? it could be, but here's the problem. with the fed drama and i'm not saying they want drama but they have a $4 trillion balance sheet, interest rates on reserves, a lot of balls in the air to juggle. but here's the problem. let's say that's stock prices and that's about where we are at 16,000. maybe if it wasn't for what the fed's been doing maybe it would have been at 14. we don't know what that premium is. on interest rates there's a chance they could actually be where they are or lower considering some of the weakness we've seen. but it's hard to tell. and when you push down on a spring, what happens when you take your foot up? so the drama or the uncertainty about the exit, i mean, come on, instead of talking about the data we're talking about the fed. and i understand why. but it's this dynamic that will give us a boat load of volatility. maybe after it settles we'll things get back to normal. the issue is, where is normal on the stock indices and rates? only time will tell. simon, back to you. >> thank you very much, rick. tweet time. after more than eight hours in prison, kaz louski was convicted of stealing more than $100 million from his company, his lavish spending included that $2 million birthday party in 2001 along with a $6,000 shower curtain that hung in a maid's bedroom. that comes to squawk on the street. now that he's been granted parole, what will his welcome home party look like? tweet us. we'll get some of your responses next on cnbc. 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[ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. some of the best offers of the year. this is the pursuit of perfection. if every u.s. home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes? 1 million? 2 million? 3 million? the answer is... 3 million homes. by 2030, investments in energy efficiency could help americans save $300 billion each year. take the energy quiz. energy lives here. squawk on the tweet on this wednesday. dennis kozlowski was the poster boy for success and corporate greed. you might remember that $2 million roman themed birthday party he threw for his wife. brings us to this squawk on the tweet. what else? a bunga bunga party hosted by berlusconi. maybe kozlowski will have to use his $6,000 shower curtain as a blanket. and lots of orange jumpsuits instead of togas. people have good memories when it comes to some of this stuff. >> well, it was a great piece of video. it was kind of iconic. >> he's done his time. >> that's true. >> spent plenty of time in jail, behind bars, and in the halfway house. mark schwartz, the ceo, still in prison. >> maybe he could become a party planner. what a great business idea. >> interesting to see where he'll land in terms of the job front. on the market front, it's amazing how quickly the reversal happened when we got that weaker than expected services number, the weaker than expected housing number. we are truly in a good news is bad news, bad news is good news when it comes to equities. >> i think the jury is still out as far as the data. i think it's 100 points from the trough up so it did move extremely rapidly. maybe other events we're not wholly sure yet. >> a lot of chatter, a budget deal out of d.c. we'll see. >> although rumors are flying everywhere. in the meantime, if you're just joining us, here's what you missed earlier on. >> welcome to "squawk on the street." here's what's happened so far. >> nothing else changed really. other than this outstanding campaign. we have store that's are up as much as 50%. i think we're up overall something like 35% on the durango. >> adp rising by 215,000 in november. >> earnings are going to be pretty good i think but they're so far away and in the interim we do 3%, maybe people start talking about the fed impotent here. all that kind of talk. that's amazing because this company is coming public, this is coming in hot. this is exactly when they should issue a gazillion shares, by the way. >> we continue to think that march is when the fed will taper. january is a transition month. you go from bernanke overseeing the meeting, two days later you have yellin taking over. >> we either continue to invest in our nation's entrepreneurs, support them, celebrate them so we can continue to have the innovative entrepreneurial culture and continuing to be the leader of the free world. it's really important. >> the "squawk on the street" countdown to christmas is in full swing. ho ho ho! >> good wednesday morning. we're live at post 9 of the new york stock exchange with a check on the markets. did look for a while we might have our fourth consecutive day down. but on some data around 10:00 some of the taper fears began to ease up a bit, dow now up 43 session highs, s&p back to just a shade below 1800. hewlett-packard is up, a new 52-week high. a union in britain is saying hp plans to cut more than 1100 jobs in the uk. taking a look at the ten-year note yield, we had -- currently holding at 28.41. >> here's our road map for this hour. sometimes posting sales gains just isn't enough. jcpenney falling despite a rise in december comps. we'll explore what it means for the department chain. shazam is setting the stage for an ipo. we'll talk to the company's ceo about its company's strength. in one restaurant, wearable technology is not on the menu. we'll ask the owner of one eatery why it booted a patron for wearing google glass. shares of yc penny lower after being up 4%. the retailer released favorable november sales showing a jump of 10% versus a year earlier. a second straightonth gain after two years of declines. for his thoughts, let's bring in rick snyder. rick, welcome. >> thanks, kelly. >> why the turn-around, why this after-hours pop and now the weakness this morning? >> i think people were expecting double digit sales. early november had the biggest sale of them all, which they didn't have for veterans day last year. they got off to a good start. and everybody was expecting double digits. we just barely got there. >> this sounds like -- so 10% just isn't good enough or it's more they aren't sure the gain will be sustainable? >> i think it's a little bit of both. if they put up a 10% sales gain, comp gain for the quarter, their sales would still be about 24% below where they were in 2011. >> ouch. >> we also -- i'm sorry, just on profitability we're also expecting on that amount, should that happen, sg & a would deleverage by 400 basis points despite being -- >> in other words, their margin, what they're earning on the clothes they're selling, is falling considerably. >> correct. and i haven't even mentioned the incremental $40 million to $45 million in interest expense. they're a long way from profitability still. >> they had to do what they had to i guess at the time, when it comes to interest expense. no metrics on traffic. how worried are you about that? >> i'm concerned about traffic. i noted in the press release they did not say traffic was up. they said they were excited about it. i was excited about the world series, but my team lost it's not the same. so this recovery cannot happen without traffic increasing. conversion is great, but, again, a little perspective. if the average department store customer shops four times a year and this year they buy three times chshgs is what conversion is, instead of two times, conversion is up 50%, but it's limited. they can't buy more than four times so they need incremental traffic. i talked to some other people and they said, yeah, we were concerned about the traffic as well. >> also, e-commerce said they were vague. i didn't see any hard empeer cal number, did you? >> no. everything was vague. their e-commerce numbers were down about 25% to 30% last year so they're just getting back to, again, 2011 parity. >> the bull case for jcpenney, look at best buy, one of the best performers in the s&p 500, up i want to say triple where it began the year as it cemented its turnaround plan. is it your view jcpenney could be the best buy of 2014? what is your actual recommendation? >> i have a hold recommendation. part of the reason is because when stocks go this far down and there's this little market cap, they get very volatile. just like we saw last night until this morning. so we're in the midst of a slight turnaround, but they have to get profitability and gross profit dollars. and i hear that best buy argument a lot. totally independent. >> apples and oranges. >> yeah. >> jcp, best s&p stock last month. you have no problem missing out on the 36% run. >> no. i think right now what people who are buying the shares low are looking at sort of an option strategy. something akin to what kelly is suggesting, but you have to say, if i pay $6 or $9, i could still lose the whole thing. so is the upside enough to justify that investment? and knowing that they could run out of cash again, even with all the cash that they raise. so i think that's what people are looking at. it's more of a trading vehicle than investment vehicle right now. >> rick, great to see you. thanks for your thoughts. meantime, blame it on the weather. that's what some retailers were saying about tepid sales last holiday season, which if you recall saw an unseasonably warm december. a lot different it this year. courtney reagan is here, denver is 8 degrees today. >> doesn't that feel a lot more like christmas, carl, than when we see temperatures in the 50s and 60s? of course massive blizzards don't encourage mall traffic but cold temperatures are on the top of many retailers' wish list during the holiday season. at least on the first key shopping weekend, santa delivered a little early. arctic cold air sat on most of the eastern half of the u.s. on black friday, pushing temperatures three to 15 degrees cooler than average and results followed through, just as retailers want them to. a strong departure from what we saw last year. j boss says macy's cfo has recently mentioned increased outer wear opportunity into this holiday season. the weather channel surveyed consumers to measure demand for winter goods both this year and last year during black friday week and found a 125% increase in demand for heavy outer wear this time around. that suggests higher margins, especially important in one of the most highly promotional holiday seasons in some time. the only apparel searchs in google top ten searches were north face and decker's ugg boots. timb the weather channel's paul walsh reported that colder than normal temps will continue. a 100% increase is projected in snowfall. the current winter storm cleon will hurt foot traffic generally. it is christmas. >> we're getting tweets from minnesota where they're expecting another foot of snow. >> but they're tough there, carl. they go out and shop any way. if they don't, maybe they shop from macy's online. it's christmas. >> thanks, court. meantime, chinese telecom reportedly no longer wants to stay in the u.s. market. in an interview with a french news site, the company says after years of accusations of cyber espionage, it will cut ties with the u.s. ironic it takes place as the vice president is on its way to beijing. >> i've got clarification on that, carl. talked to them this morning. they told me they're not pulling out of the u.s. market. but they're not investing in growth here because they feel like they're blocked. they're going to continue to serve customers, sell hand sets but they're not making any kind of big investment push on trying to grow their network equipment business. now, at the same time, they pledged $2 billion of investment in the uk a year ago this month. they're planning to double their oorp european work force. so they're saying, hey, u.s., you're missing out on important growth. >> what's kind of interesting in the tech space right now is there's almost this balkanization effect, is there not? this is one of the most globalized industries but everybody seems to be pulling in their horns or maybe it's the u.s./china relationship where a lot of business lines have been severed instead of expanded. >> a couple of interesting ways this is shifting. one is the snowden effect. back when huawei was first in the crosshairs here in the u.s., oh, no, the chinese are spying on us. now we know the u.s. is spying on us not through the equipment but through the pipes. everybody is scared of the u.s. right now, not so much concentrated on huawei. so their position has gotten a big stronger because of that. then at the same time there's the fact that a third of the components in huawei equipment come from u.s. suppliers. qualcomm, broad com among them. so they can argue, you know, you're hurting yourselves here by locking us out. >> how much of this is cost or production? are manufacturing rates in the states going up? we know they have been in china for sure. >> you mean how much -- >> cost of assembly, cost of production. anything regarding where you put your products together. this country versus other countries. >> huawei is definitely cheaper. that's been part of their expansion, they can undercut cisco and others on cost. they don't care as much about those huge profit margins. but they are still buying a lot from u.s. suppliers and it's high margin stuff. these chip sets from among them those three i mentioned. so it kind of works both ways. >> interesting. political story, business story, too. >> thanks. let's get a quick market flash. >> check out las vegas sands hitting a 5 1/2-year high. standard & poor's to a bbb minus from a bb plus. the outlook is stable. the bottom line, it is now an investment grade credit rating versus the high speculative or junk credit rating. that's why you're seeing shares pop up to at least the session highs. back to you. >> thanks, tom. one of pandora's rivals is turning up the volume when it comes to the idea of going public. shazam likes the sound of it. we'll talk to the ceo. also, rick san telly in chicago. rick? >> you know, what happened in detroit yesterday is important from a legal standpoint, important when you're in a city like i'm standing in, chicago, with underfunded pension liabilities. it's a horrible scenario for those pensioners. but we're going to talk to holman jenkins jr. if it's wednesday, he's writing an op-ed column in the journal. he's written in on detroit. let's get his opinion, bottom of the hour. charge of your future. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach. what'swithout the thinkingdo capitathat makes it real?? what's a vision without the expertise to execute it... and the financing to make it grow? whatever your goal, it can change more than your business. it can change the future. that's why, at barclays, our ambition is to always realize yours. 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[man]lumbar button [woman]lumbar [announcer] tempur-pedic.the most highly recommended bed in america. now the fun begins! >> materials are let by cf industries, hitting a record high. it's considered a possible master limited partnership structure to its corporate side of things. their structure to pay out cash to unit holders rather than stocks to shareholders. the company has been criticized for its dividend payments, also watch what's happening with quarterly dividends and metals and mining company free port mcmoran, overall lots of insider transactions with freeport certainly one of those stories we want to watch. music tagging app shazam sees its 400 million users tag their favorite artists, songs and shows every day on the heels of a partnership with media agency mind share. now a recent $40 million round of funding by carlos salim. how is shazam positioning itself? john ford joins us, rich. good morning. >> great to be here. >> one thing we know about him is he doesn't mess around. he makes a bet and stays with it for a while. how has that changed the game? >> we were very fortunate to receive a $40 million investment from carlos slim. we're partnering with them across latin america. we'll be preloaded on their devices. they're handling advertising on mobile and on tv. so the partnership is off to a great start, very strategic. >> talk to me about the business behind shazam. we know it as, what's that song? but it's more than songs, tv also. i know you can sell songs once people figure out what it is. but where does the business go from there? how much advertising opportunity is there for us really? >> we're one of the ten most popular apps in the world. we just crossed our 400 millionth user. people are shazaming 500 million times per month. from that activity, we sell over 500,000 songs a day, between 5% and 10% of all downloaded music are sold directly through our app, making us a big player in music commerce. there's also a big advertising opportunity because every shazam is a strong signal of intent and interest. you may have seen our push into tv, we were part of the american music awards two weeks ago. one of the ways you can vote on "x factor," we'll be on "glee" tomorrow night. also jaguar and the concept is turn 30 seconds of engagement into several minutes. shazam to get more. in that example you go inside the car. >> just to jump in, it's interesting there's a battle for kind of radio right now, whether you look at pandora, this youtube music screaming service that may come next year. from that point of view, if shazam is one way of getting people involved, why wouldn't i as apple or google buy you and integrate that into my service? >> shazam is one of the primary ways people discover and engage with music. historically downloading music has become the largest form of music consumption. you can stream music, rent music, spotify. we have a big partnership with spotify. we really want to provide consumers choice. if you want to download the music on itunes, amazon, google. >> you want to be the inqui-- >> weigh want to offer a lot of choice. >> when i-radio thought, they thought, that's it, pandora is done. that hasn't happened. the stock has outperformed. is that overdone, how many players can coexist? >> it just turns out people love music and consume a ton. some people want to own it, some want a radio format. people still listen to torrenti terrestrial radios. what's great is people have a lot of choice. >> is your technology limited to audio, or could you shazam images just as easily if you're looking at a magazine or watching tv and you want to know, who is that, as opposed to what is that? >> sure. >> used at parties by the way. >> we're proud of our technology where we have over 30 million sounds in our database. when you shazam something, we take a fingerprint and look for a match. we're adding over a million songs. we want to add to that. we want to add live events, movies. we want to keep going on the audio side and eventually -- absolutely, to shazam something could extend into print and use the camera as well. we have a lot more opportunity in audio for the near term. >> shazam tuning up for ipo, to what extent is that true? >> an ipo is an ambition of ours. on this platform, music engagement and tv engagement, continuing to scale our businesses, makes us think an ipo in the future is a great ambition to have. >> i still think of shazam as a superhero from the 1970s tv show. did you have to pay royalties on the name? >> we do not. there is a superhero named shazam. that's different. >> interesting to talk of the ambition toward an ipo. rich, great to see you. >> thanks for having me. >> meantime, the president is about to address the center for american progress in washington. the budget income and equality set to be on the agenda. john is here. ghorng. >> what you can expect is the president to cast health care reform as part of a broader agenda to help people who are poor or working class get into the middle class. that's been part of his argument all along. now that they believe they've got the web site mostly working effectively for people, they can begin to frame a positive argument, try to pull more people in. this comes against the backdrop of house and senate negotiators getting close to a deal, carl, that would be a two-year $90 billion deal offering equal sequester relief for both domestic and defense programs, not likely to touch the hot buttons of tax increases or medicare and social security, more mundane revenue raisers, things like selling federal assets and aviation fees and on the entitlement side, hitting federal retirement but not medicare and social security. so that would be under wheming, but i know there's a lot of trader interest in that. it does appear they're going to reach that deal and it makes it much less likely we have a showdown in january that could result in another shutdown. >> that is good news, i guess you could argue for the market. the other thing, too, john, is to what degree the president continues this campaign of reselling the affordable care act, something that sounds like he's going to make it a daily occurrence from here on out. >> what he's got to do -- this is the most important program of his presidency -- is persuade people, despite all they've heard about the problems with the web site, other objections being raised by critics about privacy, about the difficulty of getting plans that they can afford after having a noncompliant plans canceled. got to convince people it will work and it will be in their interest to go on to these exchanges if they don't have coverage through their employer or medicare or medicaid and go sign up. because they've got to hit those targets by the end of march to have a certain number of people and the right mix of people in those federal exchanges so they're financially viable and rates don't spike next year. >> sounds like a piece of cake. thank you, john. coming up, we'll talk with the restaurant owner who kicked a patron out of his eatery for wearing google glass. what's his beef? find out when we return. welcome back. check out shares of cgi group, the i.t. services company. james chanos has taken a position. cgi group is behind the glitched health care.gov web site. we are waiting for comment. those shares near session lows. back to you, carl. >> moving the market yet again. a sign of the times. a customer at a seattle cafe was asked to leave after refusing to remove his google glasses and abide by the restaurant's no google glass policy. joining us this morning is the owner of that restaurant, david mi minert. david, great to have you with us. good morning. >> good morning. thanks. >> for those not familiar with what exactly happened at the restaurant, can you just tell the story? >> yeah, sure. a customer came in and he was wearing google glass. one of our waitresses asked him to take them off, and he refused. then he was asked to leave. he threw a big fit, almost knocked over a table and left. then went on a facebook rant about it. >> and eventually wrote a review on yelp and the whole nine yards. you had already had a policy of no glass at another restaurant, is that right? >> yeah. i had banned google glass from the five point cafe earlier in the year which got a big reaction. >> you've said that part of that was a joke, to be funny and get some reaction, although people might wonder. is glass so popular where you are that this policy was needed? >> no. the initial ban was kind of a joke but also serious to start a conversation about privacy and respect for other people in a public space. >> david, that's exactly what i was going to ask. is this about the behavior of the people wearing google glass or about your concern for the people in the restaurant? because this is just one little example of, as these things proliferate, the kind of conversations and discussions that will be taking place in all kinds of spaces. >> my customers don't want to be filmed without knowing they're being filmed, nor does my staff. one of the problems with google glass is that you can wear them and secretly film and video other people. that makes people around it uncomfortable. >> what is the current situation with the policy? i assume it's been more formalized at both restaurants? >> yeah. we put it online so people know, and we're making little stickers, no google glass stickers, for the window. it's popular enough we may even make no google glass t-shirts. we'll see. >> i was just going to ask, do you think this becomes a broader cultural thing? the concerns you've expressed really have little to do with the rest rauntd and a lot more to do with the idea of people under surveillance without having agreed to it. >> i think it has a lot to do with that. i think people's reaction is kind of telling about how the general public's feeling about it. people feel like they're not enough privacy. snun can look at the front of your house online. they can look at you on the street. you're filmed by security cameras and all that. i think people are a little tired of it. we're actually talking about starting another business that has no internet access or cameras allowed or anything. there's a really positive reaction to that. >> wow, interesting. it's like we're all turning into "minority report." by the way, the customer who you served actually does have a statement in response. i think we have a graphic built of that. after being asked to leave the restaurant, banning an item because it has the potential to record or take photos he says is as ridiculous as saying you can't wear shoe laces because they have the potential to strangle someone to death. what do you make of that, david? >> kind of a weird analogy. very rush limbaughesque, i think. i don't know. all i know is that you can film people with them while you're wearing a glass. it makes people uncomfortable. it's private property. it's my business. i can choose what i want and not. he should respect the rules. >> so we can assume, david, you're not wearing google glass right now. >> i'm not. >> are you against the glasses? >> i'm not anti-google glass. they're fine. >> but you said you're going to make t-shirt. i think you're merchandising this. >> i could. always looking to make money. >> but just to let you finish the thought, you say you're not necessarily against it outright? >> google glass is a technology. like anything, technology isn't necessarily good or bad. it's how it's used. i think there needs to be sometsome etiquette around its use. >> maybe you need to be the new emily post, the wearable tech world. thank you so much for joining us. important issue. appreciate it. >> thank you. europe's trading day is wrapping up. when we come back, we'll get you details on the close and the impact it's having. stay with us. welcome back. simon hubs is here to tell us today why we're so deeply in the red. >> we're gyrating in the red all day today after yesterday's steep losses. a lot of stocks going ex-dividend, particularly in the uk, which is part of the reason. but we still have a major problem with growth not accelerating within the eurozone. of course tomorrow you have the ecb meeting. we're not expecting any surprises, if that's -- we're not expecting any surprises. euro of course looking very high, 135.61, arguably too high. barclays is suggesting ecb may stop publishing the minutes of the meetings. we finally got figures on the fines from europe for the banks that colluded in the rate fixing scandal. it's $2.3 billion overall, $1 billion being fined to deutsche bank. they of course have said they're going to ban more of their traders from operating in chat rooms. note that u.p.s. and barclays aren't fined because they cooperated. standard charter that makes most of its money in asia is warning of a slowdown particularly in south korea on consumer banking. finally an appeal for investors in this country to buy 40% of the euro star rail service from the british government. this of course is the train service that runs under the channel tunnel through from london to paris and brussels, 40% owned by the british government. they want to sell off that 40% as part of a thatcheresque sales of state asset sales. >> not a cheap trip, simon. >> have you use td? >> yes. it's a couple hundred euros each way. >> a great ride, though. >> my trick when i was doing the summit for cnbc europe, i'm traveling through the night, you need to upgrade me. you get a great meal, three courses, all the wine you can drink. >> my fear is always, if the train breaks midway, you've got a long walk to get to the outside. >> by the way, the french government owns the other 60% so you might not want to get in bed with it that regularly. >> i hope they don't follow airlines after deregulation. that may be the end of your french dinners. >> yes, probably. >> thank you. let's get a check with sharon. >> we're looking at prices near the highest levels we've seen in three months' time, $112 a barrel here. but opec's chief secretary-general says that prices will be between $100 and $110 a barrel next year. opec may be hard-pressed to keep oil prices at the triple digit level with all of the production expected to come back online. we're talking about iraq, iran, libya, nigerinigeria. when you look at iran's oil minister, saying they want to get to 4 million barrels a day no matter what. it will be an interesting showdown next june in the opec meeting whether they decide to cut production. it's not just the swell in production from opec members we're likely to see but also here in the u.s. and to alleviate some of the glut we're seeing in the middle part of the country, that's why we have this southern leg of the keystone pipeline expected to start service january 3rd. this is what we've been talking to you about in the last 24 hours that has had a significant impact on the wti price. we're looking at prices that started to surge yesterday and have continued to climb today as we are also learning that we've seen the first decline include supplies in 11 weeks' time. that's why we're looking at oil prices at this level. back to you. >> great, sharon. thanks. let's bring in bob with a look at what's moving down here. we're back, bob, toward the flat line. we've been down, up. >> a lot of confusion about what's moving the markets. focus on the jobs picture. we had two jobs reports today and both of them moved the markets. we did get a housing report, october housing numbers, pretty good, little confusion on the prior month but focus on the jobs number. the adp number came out. jobs indications were generally strong. i'm simplifying. at 10:00, the ism services number came out and the employment component of that showed weak job growth, disappointing job numbers there. so how does the market we act? follow the situation, look what goes on here. s&p futures here, the strong jobs report at 8:30, more chance the fed tapers, stock market moves down. 10:00, weak jobs report, less chance the fed tapers, the market rallies. that's how you understand it. same thing with the bond market. look at bond yields. strong jobs report at 8:30, more chances the fed tapers. there you go, bond yields go up. then at 10:00, you see the report came out, less chance of a fed taper, bond yields tend to move to the downside. remember, it's about job creation or lack of job creation. that's what's moving the market right now. move on, let me show you the risk on rally. had a few down days, weakness. it's come back, materials, finances and technology all to the upside. banks higher, rates a little bit here. regional banks to the upside today. finally just want to point out housing related stocks moved on the headline is the october number better than expected, september was weaker. but some of the home builders to the upside. the important thing is, whenever you get a jobs point, the market will move on that. more chances of fed tapering, less chances of fed tapering. it's that simple. if you use that, the market moves today. made a lot of sense. >> thanks. >> friday a big day. thanks, bob. it is official. thanks to a judge's order, detroit is now eligible for the largest municipal bankruptcy in u.s. history. rick has thoughts on that in chicago. hey, rick. >> hi, thanks, carl. i'd like to welcome our guest today, mr. holman jenkins jr. from the "wall street journal." welcome. >> hi, rick. good to be with you. >> i'd like to break this up into two simple pieces, the first piece i want to hear your opinion on what it means moving forward for cities like chicago, for fiscal responsibility, for potentially dealing with public pensions, just another contractual obligation in bankruptcy. your thoughts on how this may change other cities or the legalities of the rule of law. >> well, the detroit decision obviously was sad for the people who came to depend on pose those pensions but it's good for democracy. you can't have in a city or town, cronies getting together and awarding themselves fat pensions they don't pay for and having the liability then become the liability of people who were not even party to the bargain. in this case, if the judge had upheld the pensions, ultimately they probably would have become the liability of people all across michigan who had nothing to do with setting these liabilities in the first place. so the decision does tell cities that you have to be responsible when setting pension promises and if you aren't responsible, you can look forward to something like this where you have to default. >> now let's look in the rear view mirror. what are your opinions on how detroit ended up in bankruptcy? >> well, detroit is a remarkable story of urban decline. it's lost three-quarters of its population. it's a big empty place. i don't think that was just some kind of natural industrial revolution. you think about the car industry still is a giant, powerful technologically innovative wealth producing industry, and detroit for half a century was a global hub of that industry. it had the talent. it had the skills and know-how. if you were going to build an auto plant in america as a foreign company, detroit and the upper midwest was the place to go. except for one thing. they didn't want to deal with the uaw. so we still have a very powerful, rich, auto industry, but a lot of it mazz moved south of the mason-dixon line just to get away from the uaw. they sacrificed the advantages of being in that hub just avoid dealing with detroit's labor relations. that's a big part of the story people don't want to own up to. >> i can understand because the pensioners are definitely caught in this and it's not a pleasant thing, especially when you've reached that ripe old age, maybe you're 55 and older, to count on those funds. one final thought, do you think there's going to be any challenges to this at a higher court? >> oh, absolutely. this will probably go pretty high up. i don't know if it will go to the supreme court, but the unions are going to look for a court more favorable to them, and that is going to impede detroit's turnaround somewhat. i just hope it doesn't impede it too much. >> holman jenkins jr., thank you for the time. after the break, our electronic cigarettes just as bad as real cigarettes? the new york city council thinks so. in fact, it's seeking to ban e-cigs in parks and restaurants. the hearing is under way right now in new york. council man james gennaro stepping out of that meeting to talk with us. thank you, be right back. . coming up on the half time report, will today be the first four day losing streak since september? plus, europe isn't as bad as you might think, but there is one sector to avoid. we're looking at the stocks company insiders are selling and find out if you should follow their lead. all ahead on the half. adam parker joining us as well with his 2014 playbook. >> got to give him a hard time about that. >> 2014, right? >> exactly. today squawk breakthrough wants to chip away from lululemon's market share by offering customers simple, affordable designs. cory vine has benefitted from lululemon's problems. sales up 400% since november 1st. great having you. >> thanks for having me. >> my first question was, what was your reaction when you heard the comments from lululemon's chief and did you think it would turn into anything? >> i think we saw the news took a viral effect across the internet and it really upset a lot of women out there. i think for us what we wanted, we didn't want to kick them when they were down, but we want to show our customers we're all about accessible, accessible from a price point, fit standpoint. our returns on leggings are less than 1% and we find that people find their stuff true to fit. >> how quickly did you notice a change in order terms? >> that week, our leggings went up 400%. that was from very effective marketing we did, social media, e-mail marketing. what we really also wanted to do is show them how we're about quality and show them a six-step process and be transparent with them and show them we're all about quality. >> why did you decide to get into the space when a couple of years ago when lulu started it was really wide open. now you've seen the gaps, adeed das, understanding that active wear is a huge category. >> my family has been in this business for over 60 years so it's always been something exciting to me. i saw an opportunity in the market that the consumer was changing. and this person was digitally connected, focused on making healthy choices, from walking to work, biking to work, anything like that. i wanted to create versatile clothing for this versatile individual. that's what we try to do. >> you mention it's been in the family for a long time. you've resisted the temptation to raise outside capital. when is that going to change or does it have to? >> it doesn't right now. last month we saw a total of 100% growth on sales. this month we're seeing something similar. we had some early money early on, from family and friends, which led us to buying inventory and that generated sales. so right now we're seeing steady cash flow. we're pretty lean. we're having a lot of great conversations but we're just looking for the best partner. >> what does 2014 look like for you? >> we're focusing on building our unity, product development, attacking brick and mortar in a destructive fashion. >> a lot to handle. you you're going into the new year with steam. nice having you. >> thanks. electronic cigarettes are a growing trend. the new york city council wants to ban them in public places like parks and restrestaurants. the hearing is under way right now. we'll hear from councilman james gennaro, he's co-sponsoring that bill. stay with us. you won't want to miss it. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach. yep. got all the cozies. 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[ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year [ ding! ] at the lexus december to remember sales event. this is the pursuit of perfection. welcome back. new york city is holding a hearing whether to ban e-cigarettes in public places. now lawmakers are trying to do the same with e-cigarettes. james denaro is a counselman from queens. he joins us now. councilman, good morning. >> yes, good morning. thanks for having me. >> thank you so much for being here. i could understand if you were concerned about the personal health risks that may come from nicotine consumption. to say from a public health point of view you're worried about the vapors released from e-cigarettes? really? we're told that it's largely just odors and steam. you feel differently, though, it seems. >> yes. the science is still very much not conclusive regarding that. there have been no real solid tests of these kinds of devices which can be manipulated to have a lot of nicotine, a little bit of nicotine and new york city is really kind of following the lead of many, many -- well, many jurisdictions throughout the country and three states. currently 20 million americans live in states or local jurisdictions where tobacco products are treated just like e cigarettes. and we're just kind of catching up. we think it's important to not have a situation where we're renormalizing the act of smoking. and also gets in the way of us doing proper -- proper enforcement of the current anti-smoking bills we have now, because they look-alike. this is causing confusion. we want to err on the side of caution as many states and localities have already done. we think this is a prudent next step to make sure we do not renormalize smoking and have people subject to these vapors which are very much unknown. >> thinking back to the original smoking ban you referred to, a lot of that was driven by employees of bars, employees of restaurants saying we do not want to be subjected to the smoke. are they now saying the same thing about these vapors? >> not so much. i mean, when we did the first bill, which based on -- which had to do with indoor spaces, it was all based on that. then we did more measures to take them out of public spaces, to take them out of outdoor spaces like parks and beaches. and so what we're doing -- and those second set of measures were more about sociology and denormalizing than they were sort of hard medical science. we thought it was important to make sure that smoking was completely denormalized. so what we're doing today is the step to further deformalize this activity, to make sure that we can properly enforce the laws that we have on the books now and protect people from unknown vapors that could be harmful to them and this is -- this kind of sums up the rationale for what we and other jurisdictions around the country have already done, like i've said about 17 million to 20 million americans live in jurisdictions where e-cigarettes are regulated just like tobacco. >> sounds like it will be a tougher slog than banning smoking was in the first place. thank you very much. appreciate it. keep those tweets coming. dennis kozlowski will be released on parole after more than eight years in prison. his lavish spending included this $2 million birthday party in 2001 for his then wife. it brings us to this morning's "squawk on the tweet." what will his welcome home party look like? tweet us at squawk street. we'll get some of your responses when we come back. [ male announcer ] here's a question for you. if every u.s. home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes? 1 million? 2 million? 3 million? the answer is... 3 million homes. by 2030, investments in energy efficiency could help americans save $300 billion each year. take the energy quiz. energy lives here. squawk on the tweet this morning, former tyco ceo dennis kozlowski was the poster boy for success and corporate greed. you may remember the $2 million party he threw for his wife in sardinia. now that he's been granted parole, what will his welcome home party look like? matt writes, he's going to be going to chuck e. cheese for a welcome home party. joel treats kegger. we have other as well. >> i should mention an e-mail saying i just want to attend the after-party. >> interesting, a budge of stocks on the move despite relative flattish action on the dow. >> weakness on the nasdaq and media names are getting a bid. twitter, up 5% hanging in that low to mid-40s range, carl, where a lot of people thought after that week or so that it started out strong we'd be drifting down towards the mid-30s. facebook doing all right as well. >> twitter will take you back to about november 13th, 14th, just about a week or so after the ipo. a little of people at twitter glad to see the forehand again. microsoft we should mention is now the fourth best performing dow stock for the year. >> wow. >> up 45%. this is the 13-year high, up 45% in 2013, as i think a lot of people hope, bet, that alan mulally takes that job. >> that will be one to follow. >> let's back to the halftime. >> inside information, what names are the bosses buys and selling and what does it mean to your money? jemaah godfrey opens her playbook in how to invest across the uponed in 2014. we start with stocks hoping to avoid that four-day losing streak since september. once again, you know where the focus is, it's on the ten-year yield, rising beyond 2.8% today as the adp report came in stronger than expected. will rising rates eventually kill this rally? it's halftime, let's play the action. simon baker, that's the question to you. >> no. >> i'll take it from here, simon. >> enough said.

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