See you late. General electric selling Home Appliance unit to Swedens Electrolux for over 3 billion in cash. First, big news from twitter on a potential new revenue stream. Julia boorstin joins us from los angeles with breaking news. Good morning. Good morning. Twitter is announcing a test of its buy now but allow users to buy products directly from a tweet, first big move into ecommerce. The idea to make mobile shopping quick and easy. So say renan can tweet a photo of the tour tshirt and say, buy now. Twitter saves the credit card information and shipping address, saying everything is encrypted and not shared without permission. There are products in price points of all kinds and offers of all kinds that work across the platform. Its not a flash sale platform. Certainly things will work better. Again the temporal nature of twitter makes relatioal time in wheelhouse. Twitter working with 19 partners. A number of artists including emin eminem, pharrell and rihanna. The Company Plans to add more retailers and roll out twitters base over the shopping season. Starting in physical goods, because that was a way to test the User Experience we think that Digital Goods and on demand services, because of the realtime nature of twitter, are a great opportunity for us. Were going to start in physical goods but youll see us expand pretty quickly. Twitter says it does not expect retail to impact its revenue this year but huge potential in both taking a cut of the sales and also selling more ad for retailers looking to put the buy now button in front of more people. Julia boorstin with breaking news. Thank so much. Holiday retail got more interesting. Between this and alibaba, a lot of ways to buy things. We do. Perishables, a lot of fish you caught, sell them there, put the buy button up. Get the drone to bring it to you, right . Or an uber taxi. Boom, bring it to your house. Logistics important for that. I assume the Companies Providing the buy button will provide the logistics. Alibaba, logistics an interesting question. Well get to it in a second. The interesting thing about twitter, ever since anthony noto got there, all you hear is monetization. The former analyst from goldman, hes an investment banker, took a stay in the nfl, but i just like this i think the news flow is good out of twitter thats one of the things where you say, a year ago, how are they going to make money . Now featuring a button, and the customers, burberry, home depot, customers that are sophisticated. So its not like these companies dont know what theyre doing. Theyre very forward companies. On a day where whole foods testing onehour gross delivery in 15 cities. Waiting for than whole Foods National ad campaign. The beginning of the whole foods playing offense. See what happens. Campbells, by the way, opposite. Campbells numbers, other than bolt house, i use the bolt house vain ven inaigrette the cann soup is against the grain of what the country wants. Alibaba, they are kicking off their ipo road show today in new york. The chinese ecommerce giant seeking to raise more than 21 billion, would make it the largest ever tech debut in the u. S. Alibaba expects to price the offering between 60 and 66 a hair. Yahoo shares reacting. Could gain 8 billion on 1 billion investment. 22. 5 stake. Theyve already sold some, a previous deal one of the reasons, main reason, the ipo is happening, because of yahoos desire to sell some of the stake. Though less and less this time has gone on of the 22. 5 . Weve talked about it over the last more than year in terms will they be able to sell some point of it tax efficiently . What will be sole. For the alibaba ipo, bringing this giant company to the u. S. , jim, you know, despite a thousandpage prospectus, a lot of questions out there. Ive spoken to a handful of big investors who are going to try to get those answered in the road shows. They didnt break out tmall, how is each one doing . They say 85 commerce, from 85 of revenues from commerce but dont tell you which is which. A different model than amazon or ebay. Its about 3 of gross merchandise value, which keeps going up. Enormously. But not doing their own logistics, not buying the way amazon does and storing stuff and shipping it to you. A lot of questions. But obviously, incrediblebly efficient model that is continuing to grow. Although growth is decelerating but from the stratosphere. A good article this weekend about jack, i read it over again, i wanted to be sure i understood the ownership structure, i dont. I dont understand it. End board structure. Very different. Like when kirk goes to visit the clingones, everythings different. Clingones were straightforward in the end. You know what motivated them . I guess really i try to understand this thing. What you need to understand whats the multiple . An incredible growth company, difficult for some to understand, the structure is convoluted to a certain extent, some will take issue with that, that hasnt provided despite a lot of details as much as investors want to figure out that end question which is, what do i pay for this thing in. Ever used the site . Never have. It pops up. I wanted to buy bar stools, popped up as cheapest bar stools. I dont know, bar stools from china. Whatever. Sophisticated software allows you im sure jeff bezos is watching this thing. You dont want to be eclipsed by them. Bezos is spend, spend, spend in china. Algorithms are very good. Kayla tausche at the waldorf, talking about the road show, launching on three continents. A piece of sound from their presentation. Take a listen. This is the story of how alibaba has helped open up china to ecommerce, enabled online crossborder trade and affected the lives of millions of people. In 1999, we saw how technology could help Small Chinese wholesalers compete with global players. So we created a marketplace that enabled them to find new customers abroad, alibaba. Com. The education commences. I hope the education doesnt force everyone to sell Everything Else in space because we are going to have a hammering like you wouldnt believe. Youve raised that point. This amount of supply that it will come to the market is enormous, though a lot reduced through a robust m a market. Fridays mad money saying that. At the same tie you can see what kind of stocks would get sold, high growth stocks. Mute fuel fund manager no longer get money like they used to, etfs arent going to buy it. A diminished pool of capital thats going to buy. At the same time the stocks that look like it, whether it be ebay or whatever, i mean, if the growth characteristics are superior, youll see amazon. At its basic, its pretty nice pitch. Ecommerce in china. It is. Thats all i need to say. Okay, i want in on that. How many dont have it yet . Another key question, they have penetrated big urban centers, but what do the numbers hook like in lets call it the less mature markets in china . Well get a lot of answers to the questions as the week goes along. Its worth it. When you have the largest ipo, you begin to get that kind of frenzy that we see. People ask, jim, you think retails going to want to own it . As it goes higher, as they check the range up, 62, whatever, more people calling brokers saying i want a piece of alibaba and at a certain point were going to say, wow, its gotten too big, and it cant hold. Lets move on to another story weve been following closely here. Jim has as well on mad money. Hertz announces that Mark Frissora, the ceo, has stepped down from that job for personal reasons. While rental car Company Searches for a replacement Brian Mcdonald will serve as interim ceo. Last month you may recall hertz withdrew full year guidance, cited operational challenges, costs related to continuing accounting issues. The stock getting beat up. It has been a hedge fund hotel. I can give you more background in terms of what went on here from the boards perspective, according to people close to the board. Theres a sense that frissora had lost control of the company in a way. Listen, the accounting problems were not of his making necessarily. But theyre in accounting h echehell in terms of restatements, they lost a lot of top managers over time and so, theyve dont to mcdonald who i am told has the inside track. Really . Yes. Hes sunoco. Not scott thompson. While still going through it, i can tell you at this point, what im hearing, theres a belief on part of the board that you need someone who can run a complex organization and that theres not a feeling at this point that perhaps that thompson is the right guy and it may be macdonald who gets the full time job and you need someone to take over quick after its spun off. The big shareholders, frissora trying to keep his job, he met withicahn, other big shareholders recently, icahn, im told, offering to back him if given a board seat. But here you have the board saying, no, were done, were moving on with linda levenson, apparently meeting with large shareholders as well this is not a board wer shareholders have ability to force them out in the near term. They were acting on their own and mr. Frissoras now has now left the company. Jim you tweeted hes been on the wall of shame. We add the wall of shame, thinking perhaps he would spend more time with the company. A sound from mad money earlier this year. Mark frissora, okay, ive got to welcome you to the mad money wall of shame where when you depart you create instant value. We hope it will be a brief sojou sojourn, sir, i think hertz goes up 10 the moment you bid the company adieu. As long as youre there, avis done have to work harder to be number one. You do it for them. 10 , not far off. Well get it, we will get 10 . The reason avis, avis has been the winner here. And theyve got theyve got great margins. Hertz was cutting to get big fleet deals. They have stopped the cutting, why Larry Robbins recommended. At delivering alpha. Saying you want to be in it . I think the tax problems, the accounting problems, werent that great. And the industrys on fire except for hertz and i think hertz will be going along, pulled up by the rest of the industry. Amazing consolidation here that the Justice Department let occur. I think you buy hertz. All right. When we come back, ford gets slapped with downgrade. How bill ford reacting to the call . Hear that coming up. Also ahead, speed and luxury mean high fashion. Well talk to the ceos of maserati and zegna and their collaboration. Longest streak since 95. Holy cow. Thanks to the journal for that. More from squawk on the street from post nine in a moment. Theo w requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Starts at 6 30 a. M. On the vo rush hounose. Und here but for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. General electric agreeing to sell appliances u night Swedens Electrolux for 3. 3. Allows to reshape portfolio of businesses. Electrolux will use the Ge Appliances brand. Earlier on squawk box, electroluxs ceo spoke about what the deal means for his company. This, in fact, doubles our size in the u. S. , with this acquisition, come bbination of existing business under frigid air, electrolux, Ge Appliances doubles that and that combination increases size of the total Electrolux Group by a third. Yes, it has a significant condosolidation leverage sale effect. Swedens biggest u. S. Acquisition since 2008. Do you worry if youre whirlpool today . I see whirlpool down. I would not worry, because consolidations seems to be good for the remaining guys. Its lg and samsung whether theyre dumping, that is a concern in that industry. Ive got to tell you, anyone who has been to buy appliances, the price wars have been endless. Youre surprised when you buy a stove or refrigerator its less than it was five years ago and more energy efficient. Thats because competition, too much competition. This is a smart move for everybody. Something else less than it was years ago, ability to borrow, of course. Another story. Electrolux borrowing most of the money that it will be using to finance the purchase, Deutsche Bank leading a Bridge Facility theyll replace by Capital Markets activity, 75 of it. And a rights issue. Well, free money, got to do something with it. Those who we look back and think of the companies that did something, ones that didnt, the ones that did were going to like, including anal. Ge, is it doing something . Certainly, nbc universing no longer a part of it, appliances small, 5 , of of revenues. So, is it getting to a pure form, jim, ta you can mahat you argument belongs together or a stronger argument to be made, keep going . I think the key issues what theyre going to do with energy. This going to be become the foremost Energy Equipment play . I mean, look, ive always felt they should buy national fargo, transform the whole mosaic. Yes, theyve got to keep going, make it easier to understand. The conglomerate stocks just dont do that. They dont. Thats old style way to do things. Look at tyco breakup. Look at the money created when Philip Morris broke itself up. I was speaking with a bunch of people, when you get off the desk, they talk about what was liquor doing for fortune brands with furniture and golf equipment . These things all unlock tremendous value and i think thats what people want. Ge is not going to break itself up. Anything to its more edible. 90 of revenues from Ge Appliances in the country. Dont buy a lebehr, a disaster. Im trying to get a response from the company, they dont they dont care. They make cranes, though. Thats like i bought a ge refrigerator, all in how much . 480. I have an electrolux mini fridge, works nicely. I did better. Talk about the ovens after the break. Good deal. Cramers mad dash. Well talk about the ford downgrade. More squawk on the street in a moment. Moment. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. The opening bell on monday. Start the trading week with a mad dash s. Im doing an inversion, i say, what is going on . What is going on . Another win for an activist. Would icahn be there if berrys there. Talk about how another triumph of activism. I think people have lost faith in him. That was a rough that was a rough period there of course for a number of reasons. Whats interesting about whats happened there excuse me i turn my phone off, sorry that could be icahn saying not going to you get two board seats if youre janet. One agreed to by the company, less than 1 of the company that they own. How is this possible . I think boards are responding to a certain extent early. Look at hertz. Now here you have activists in the stock but the board has is not under threat of a proxy fight. Not at all. Decided to toss the ceo. Microsoft gave value active board seat less than 1 . You know, its interesting to watch. On walgreen, the question is what happens now . I mean, they did not pursue the inversion. Theres real questions there, there are some people who think theres more to come in terms of shareholders fighting with this company. Craig wasson . A billion dollar miss in estimates, extraordinary, some of the prescription business wentoff line. The undertold story, larry merlot on our show, cvs is killing him. Why arent they killing him . They didnt have the big generic price cut problem that walgreens has. Ive got to tell you, david, i think the combination is beautiful, my Charitable Trust has been buying the stock. I didnt expect this. I thought an amazing win for the activists. A big win. Love letter to rosenstein in the journal, toop and 11 billion. The big house in the hamptons. Opening bell 4 30 away. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. Opening bell in about 90 seconds. What a week is about to begin. Weve got the apple event tomorrow. The president addressing the nation on isis on wednesday. Draghis on the tape. Jack lew talking tax reform. Twitter buyin has stock up 2 . Everybodys back. Yeah. An exciting time. I think that we should not underestimate the fact that alibabas investing in companies, they fund a lot of companies, the uber competitor apparently. And then were going to have to figure out, go back to the yahoo issue, how can that company only be worth 11 billion . I think yahoos been a buy, ive been behind yahoo a long time. You can reinvent yahoo if you wanted to, make an acquisition. Whats taking them so long . They need money. Look what theyve done. Theyve bought back more than a third of the stock over the last five years. Hey, its been a winner. I mean, i think its its like pepsicos a winner. You know the story on yahoo is a winner. Its all because of alibaba. But do we asterisk . I dont want gains because theyre from alibaba . How many asterisk. Fine. But you can make an argument current management teams not doing anything new, despite getting enormous amount of publicity. Lets see what happens. Lets see if they dont change the way. Do i know something . I dont know. I dont know. Sounding different to me. Its going to get interesting over there. Theres the opening bell. And a look at the s p at the top of screen. Down here this morning at the big board, lets take a look who is riniging the bell, 9 11 tribute center. The 13th anniversary of that date is later in the week. Over at nasdaq, canines for cops, supporting canine units and Law Enforcement agencies and schools. Take a look at ford, down in premarket. Morgan stanley downweighted from overweight. Talking peak u. S. Auto cycles. Earlier phil lebeau asked chairman bill ford about the downgrade. Heres how he responded we have a lot of new launches coming, great products, we think theyll do well in the marketplace. So you know, i feel very good about our future im think that the f150, the launch is under way. So far its going very well. Were of the canable with where we are. Its one of Morgan Stanleys nitpicking points. They think expectations are high for the changeover, theres risk and nobodys talking about what the response will be. I like the auto business. Phil lebeau terrific. Here you have this piece, talking about a lot of new innovations no apology. I thought lebo was going to say, the giants are going to crush the lions, you would say good luck. I think fords in very good shape. Ford europe, they got that together. Ford latin america the last quarter was good. I think marks a good steward of the company. The question is, i dont think the auto cycle is peaking, because theres so much slack. Does the evolution of auto financing not worrying you either . Talking about being avery small part of the actual buying of autos. The thing that i worry about is that europe was getting better. Thats that could be a ford problem. The downgrade i thought was a little they shouldnt have pinned it on international sales. The new aluminum, i think its very good, lightweight is very good. Thats alcoa, by the way. One of the best performers of the year. Downgraded by so many between 8 and 10, constantly underestimating kleinfeld who i regard as being visionary. Numbers are going to go higher in 2015 because of a new factory in saudi arabia. Speaking of analysts calls. Jeffreys does add google to franchise pick list. I saw that. Based on youtube strength in a growing Online Advertising market. The times has a piece how facebook has an advantage over youtube making videos go viral. Great piece. Beyonce piece. I think that people have to recognize that theres just the advertisers just more and more comfortable giving of the 600 billion advertising market, giving google more dollars, giving look, frankly what happens is, they go to their go to their ad firm and say, listen, put more money online and it gets spread out. You hear the same thing, my moneys better spend on facebook, some say my moneys better spent giving a check to google for problematic. Some money in twitter. So this is just reallocation of resources away from print. I still see tv as being incredibly robust. But print, no. It makes a lot of sense to give money a record high on facebook today. Obviously within the group, two names we started the show with, though, ones moving, twitter up over 3 . You saw that. And yahoo on alibaba, up almost 3 . Well timed. Those are the two bigger of the group that you took a look at, including facebook, google, ebay, amazon. This is the group that im most concerned about, Charitable Trust owns these. I think international places to sell in order to raise capital for to take alibaba. Alibaba, as you as underwriters and the company is trying to establish longterm shareholders here they want you to if you commit to a billion dollars, theres an opportunity. Thats what theyre looking for. I know. You dont need too many, even for 20 billion ipo, enormous though it is. And they are putting a lot of it worldwide. Right. You assume there will be well over allocated, well. But how it performs in the aftermarket, that size, its you know s p says the biggest ipo priced in the u. S. This year, visa, 17. 9 billion all time, all time. Yeah. Gained 28 on its first trade day. Well they really controlled that remember that deal . Community banks are so smart, they did that deal so well. I hope that alibaba understands if you want to go long term, lets everybody win at the initial. You know, let everybody mean, meaning investoinvestors. Talking about customers if youre in retail thats receipt thing to say but beware. Boeing moving on what we expect to be an order 11 billion of 737s from ryanair. Ryanair. When mcnerney was on mad money, look lots of orders out there. We had air Leasing Company say, well take up any slack. Im concerned about boeing because of the dollar. Because of i think that i think the europeans have said, all right, enough already. Lets start giving our airbus a discount by ruining the euro. Havent even started with the scots. Scotlands going to deutsches report, be avery afraid on the implications for the pound. How do you portion out the debt if this thing happens . Its going to be complicated. I just kind of i think paul krugman did an excellent piece in the New York Times about the hazards of it. Frankly, no ones thinking about this, and thats what happens. If youre in britain, youre are they going to keep the currency, not keep the currency . Something to watch. The poll, maybe we shouldnt read too much into the sample, if you have a currency and you its strong as the pound and think, wow, maybe the pound doesnt hold up, who was thinking that . Wow. That was kind of a breathtaking thing. Out of nowhere. Touch on campbells . 49 cents did meet, revenues short, guidance weak, onemonth low. They dont come in. General mills terrible. These dont come in because everybody figures its a mat or of time before consolidation. A piece why campbells is a takeover target. They dont come in. Fixed equivalence. Its whats going on. Watch tesla today. Elon musk making comments that a possible partnership with toyota down the road is not unthink able . Geez, maybe rethink the idea the stocks too expensive. Taking up the price target. Fbn represents tesla. Tesla, i think has momentum. Were dealing with 500,000 car presentation we had from analyst. I think that what happens is that people kept buying tesla and say we can own it for the rest of the year because its been a winner. When we get to september, big mutual funds, listen, tesla, you have to be in tesla. Its been a big winner. They feel that way window dressing . Its hard to go to your your board which is quiet, it is one of guys have tesla, did you buy the tesla . Were on it. Hey, ill take testesla. A friend on the board of a big mutual fund. I went to the meeting and the guy didnt have intel. And they have this thing, the pentium, you know, theres kind of like the Board Members get involved when theres an obvious win and teslas coming out as an obvious win. Lets see. Dows down 15. We welcome back the long lost bob pisani to the floor. Bob . Thank you. A week in venice, wonderful time. Italy, as much in trouble as it is, one of the great countries in the world. We had another record high, 57th record high since the great bull market began in 2008, 2009. S p at a record high on friday. It was a very broad rally. This has been a broad rally. Remember, august, september, two weak months and continuing hit record highs despite fact a lot of scynicism about that. S p, i mentions how broad the rally has been, new highs in materials, consumer staples, health care, this is not Technology Stocks dragging everything along. Major sectors hitting new historic highs as well. I want to mention, alibaba. The terms were announced friday after the close. So its very ripe i struggle to explain how big it is. And heres best way i found. Eye appeal of the mark this year is 40 billion. Alibabas eye appeal is 20, its 50 of the market already. More than likely, if you do 80 billion in ipos this year, alibaba roughly 20, 25 of the whole ipo market, thats how big it is. Thats the best way to figure out to explain to everyone how big it is. The big question over the weekend, will there be some big trade around alibaba . Will there be some big short around alibaba . I dont know. But heres the most interesting thing that i noticed if you looked at a competitor, jd. Com, they went public, chinese tech company, went public may 22nd. On that day up 10 the day it went public. Other chinese tech stocks on that day, jumei, vipshop, weibo down 10 prps the . Theres definitely some kind of effect that goes on. Alibaba magnitudes bigger than jd. Com. Whatever trade you want to set up, its foolish to think somebodys not doing that on this day. Will this open the floodgates . Everybodys getting out of the way of alibaba. So will we start seeing some more ipos coming . We just did this morning. Citizens financial announced its ipo. Nobody noticed it because its overshadowed. 140 million shares at 23 to 25. Everybody knows citizens. I big regional bank, based in rhode island. Theyre going to price september 23rd, thats tuesday for wednesday, thats three days, after alibaba. Already a few days later weve got a big ipo thats been announced. Answer is theres another floodgate coming i think in the very near future. One thing that did puzzle me about alibaba, other than the fact they waited until friday after the close, 60 to 66. The average ipo is 20 to 30. I think the average price is 24 25. The signals to me i dont think theyre concerned about retail trade then may be right. If youre 80 of the dotcom market in china you can afford not to worry about retailers. Maybe its not gotten the same recognition as twitter or facebook. Campbells, they gave 2015 guidance for the first time. We are talking 0 eps growth, 2 eps growth, sales growth of 1 to 2 . This is a real disappointment there again for campbells but thats been a disappointment for quite some time. Good to be back. Good to have you back, welcome back. A lot of gelato in venice. Looks all right. Thin, welltanned. This morning, if you are in the risk arbitrage event business in a hedge fund, you are likely focused on comments from secretary of the treasury, jack lew this morning. At an urban institute sponsored speech followed by panels discussion in question, inversions. Big headline here, despite concern that perhaps we get some sort of new proposal from secretary lew, that was not the case. Tack a listen, though for key words he did share. To prevent a rush of corporate inversions to get in under wire before a change in the law, legislation should work retro actively, applying to any deal after early may of this year. I want to emphasize one again how important it is for congress to solve this problem. Its imperative that lawmakers get this done. Still, the administration is clear eyed about the possibility that congress may not move as quickly as necessary to respond to the growing wave of inversions. Given that, the Treasury Department is completing an evaluation of what we can do to make deals less economically appealing and we planned to make a decision in the very near future. All right. The end there, of course, being the key. I mean weve heard this before, the question is what that will be, some of the instant analysis from those watching closely for mr. Lews comments, its to remove the threat treasury will release a proposal that would be considered sort of unknown or a wild card, if you will, many continuing to believe youll probably see them try to do something when it comes to the ability inner company loans, key part of inversion once you invert, the company, the headquarters, so to speak, loans money to the subsidiary being in the u. S. Which theyre paying interest on which lowers u. S. Tack bill. Its a complicated issue as weve explained many times. But overall not unexpected from secretary lew. I reference comments last week from jim woolerry, soontobe chairman, whose firm advised on a number of inversions, including the st. Louis pharmaceuticals deal, his comments about what we might expect. I think there will be some activity that tries to implement a unilateral action of some kind but i think it 4 be proposed. I dont think it will actually be theyll go straight to it. If they do, im not sure that its going to withstand sort of scrutiny over time. I think theyre struggle now. If there was a clean, unilateral option here we would have seen it already. What we are also seeing this morning, or take a look at likes of covidien, medtronic and the spread there, those enormous deals rely on tax inversions, that were there to be a retroactive change would suffer from that. You can see covidien shares are up. Taking a look at medtronic. And as well shire abbvie. Speaking of m a professionals, lawyers and bankers who put these deals together theyre coming. Weve seen burger king recent lip im hearing any number of inversions on the drawing board, typically in pharmaceutical land, but not just in that area. One of the reasons why, you see a campbells, the ownership, the people from camden sold a big stake. When you see campbells and think, what the heck, why isnt that stock down 10 , the answer is, i dont know, probably a lot of companies that want to do something in that space. I just find over and over again, every time you get negative, some deal not talking about multimedia game deal, talking about big deals that you mentioned, make me think, you leave the table and then suddenly you get a combination of the tesla gopro mobilei and deals motivated and you say i left the table because i heard that the fed was going to raise and, you know, going to raise 2012. Keep your eyes open as alibaba prepares to go public with the massive ipo, well ask one analyst whether you should be bullish on the chinese ecommerce giant. Meet the ceo who likes to be called the Martha Stewart of marijuana when squawk on the street comes right back. Come. [ male announcer ] ours was the first modern airliner, revolutionary by every standard. And that became our passion. To always build something better, airplanes that fly cleaner and farther on less fuel. That redefine comfort and connect the world like never before. After all, you cant turn dreams into airplanes unless your passion for innovation is nonstop. Unless your passion for innovation is nonstop. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. This is holly. Her long day of Outdoor Adventure starts with knee pain. And a choice. Take 6 tylenol in a day or just 2 aleve for all day relief. Onward what a weekend of football over the weekend. Of course the redskins lost to the texans, a surprise to some, but j. J. Watt asked about the game after the game. The texans defense signed 60 million deal and didnt know what to do with the money and said, quote, i googled what do rich people buy. Because i dont feel like a rich person and i dont try to act like a rich person, so i dont know what they buy. I didnt really like the stuff i saw. Im going to stick with ply humble lifestyle. We did pull up with j. J. Watt at the white house correspondents dinner. He was one of the more sophisticated people ive ever talked with about money, as well as andrew luck, who looked okay last night. J. J. Spends a lot of time watching cnbc. And i think well be surprised. What hes saying is, im a saver. He wants to know how to save. Not that im going to buy a house in the hamptons. Hes a modest man very conscious. A lot of experience in dealing with nfl pros who have not handled money well over time. I reminded him you only need to get rich once, dont touch that money, put it in some form where when careers over boy the nfl careers do end maybe you start spending it. He was listening. Our friend was suggesting, listen. Listen, i watch cnbc, we can make fun of j. J. , hes saying, hey, i know ive got to be careful. Compared to Hedge Fund Managers and private equity guys we know, hes nothing. He could buying a 71 million apartment last week, to add to you can buy a plane, some art. You can spend that kind of honey, talk to any of the guys we know. I had that hand surgery. That had to do with his handshake. Hell be proud to know that. We will get stop trading with jim in a moment. Dows down 16. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com time for cramer and stop trading. Something ive been waiting to hear. Goldman sachs goes hold to buy bank of america. Why . Theyve settled a lot of problems. People concerned with interest rates, people feel, as long as rates are so low, Net Interest Margin is going to matter. This is one of those situations where bank of america putting this stuff past them allows moynihan spends all of his time being a banker. From the people i know involved in the settlements the ceos are no matter what they do, are side tracked by lawyers some actually go and be a banker means bank of america, i think he was a lawyer. He was a lawyer. And the best General Council of all General Councils but it didnt matter. Paul west, the guy who you know, tony west, the guy who left the Justice Department was finished his job when he nailed bank of america for one of the 9 billion in cash. But i think that this is a very good upgrade. We had a downgrade last within and didnt get that at all. Tonight the ceo of biomarin. The group is so hot, we didnt talk about this, but jazz pharmaceutical, people saying thats the allergan target people want to own biotech and they ought to know what they own. Because what happens is they own it and its a one product and it doesnt get approved and you see those go down. I think this guys the real deal. I cant wait to speak to him. Were doing defense. I think the u. S. Government defense budget, we have many challenges ahead of wednesdays speech. By the way, squawk did it but congrats to the birds. Nice comeback. You were tweeting, still early. Maybe had concern, maybe scared to death. Jets won. Yes. One ugly win as the post says. W and ws. Thank you. Saimon hobbs is back. Open sesame, in the next hour well go in search of value in the alibaba ipo. Also ahead, well take a good look at what the president said about going on the offensive with islamic state. And the ceo of maserati and zegna will join us live as they create a hundred cars to celebrate one century in business. In new york state, were changing the way we do business, with startup ny. Weve created tax free zones throughout the state. And startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. Thanks to startup ny, businesses can operate tax free for 10 years. No property tax. No business tax. And no sales tax. Which means more growth for your business, and more jobs. Its not just business as usual. See how new york can help your business grow, at startup. Ny. Gov dad hes our broker. He helps looks after all our money. Kid do you pay him . Dad of course. Kid how much . Dad i dont know exactly. Kid what if youre not happy . Does he have to pay you back . Dad nope. Kid why not . Dad it doesnt work that way. Kid why not . Vo are you asking enough questions about the way your wealth is managed . Wealth management at Charles Schwab its monday. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, Global Broadband network and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. Centurylink your link to whats next. I make a lot of purchases foand i get ass. Lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Welcome back to squawk on the street. Road map begins with a road show. Alibaba taking its pitch straight to investors today. The road show under way here in new york. Well take you there live . President obama vowing to hundred down isis extremists. Well bring you more exclusive interview with nbc news. Luxury carmaker maserati producing limited Edition Model to honor its 100th anniversary. Alibaba beginning its road show for the ipo today. Ecommerce giant planning to raise up to 21 billion in valuation north of 160 billion. Kayla tausche leave where the road show officially kicks off. The ginormous one, kayla. Reporter yes, largest u. S. Ipo ever, at least thats what its slated to be, sar rap here at waldorf in an hour the doors on the 18th floor will open where hundreds of investors will pack in to hear the pitch from alibaba management why they should be buying into that companys stock ahead of its public debut next week. We did get details about that deal at the end of last week. 320 million shares for sale, more than a third of that is new stock. 200 millions shares from existing investors, a stat that raised i brous. You never want to buy a stock so many investors running for the exit. Much of that, majority of that, is yahoo . Yahoo is selling less alibaba stock than it originally planned to. It had planned to sell 208 million shares. Now its only 122 million, roughly, because heres the reason. Alibaba wants more of the proceeds, it wants to issue more new stock so it gets that cash and it wants to bill its cash position to upwards to 16 billion to rival facebook, amazon, ebay, u. S. Rivals it wants to go head to head against for deals. An underwriter said, maybe it wants to buy whatsapp. Maybe it will have the cash. Its battling companies for investors. Im told that there is talk of rebalancing out of amazon, e bail, google, bay due, and a lesser extent smaller names like jd. Com and this is a big ipo. Its going to require a lot of cash on behalf of portfolio managers, at least ones that buy. Theres a lot of questions about the valuation, the strength of chinas economy Going Forward, and of course the companys global ambitions, where is growth . How much of that growth will shareholders get to participate in, given that so much is controlled by the companys founders and partners. It will get under way in an hour and well bring latest to you live when we have it. Back to you. I was looking behind you, any sign of jack marr yet . Hes the guy that Everybody Needs to hear from. Reporter he will be here help will be leading the lunchtime presentation. Began at it 5 0 with a sales force meeting at citigroup and started meeting right after that in the 7 00 hour. We havent seen ma yet. Hes been meeting oneonone with investors before the group meeting. Well be back to you throughout the perhaps. Kayla tausche there. Does the company make enough money to justify you buying it on day one at prices that are being talked about . Bri brian nowalk. Hes been able to publish a 65page Research Note saying alibabas valuation is attractive. Good morning. Good morning. How do you come to that conclusion . Its not expensive relative to growth or earnings. Look at earnings power of the company theyre positioned to grow top line mid to high 30s. Because of operating structure theyre going to put up over 60 ebitda margins. Look at price to earning, youre paying 17 times earnings, for 30 plus growth. Its a detailed look that youve got here. People talk about actually possibly being worth, say, 40 more than the mid price thats been quoted at the moment, or maybe theyll raise the prices as they go through the process. Where do you go with those figures . It could. So officially in our preipo we dont put out a price target or the idea could they raise the range. They certainly could, given the top end of the range, its only 17. 5 types earnings for over 30 growth. Certainly could be potential. More than 30 growth now. More than 30 growth now. Its obviously decelerating from incredible numbers and theyre going to bump up against the law of large numbers given how big the companys getting. Why do you come back to 30 . Its 35. Mid30s. In a mark over the overall ecommerce market in China Growing 29 and youre 80 of the market, the way to think about it is, its hard to get a lot more market share beyond 80. So youre going to get improved monetization how you get above 3 35ish. How much of a bet on growth exchina, investments in north america or anywhere else. Option alty. They own a big piece of shop runner, theres no big piece of north american or exasia. M as considered a positive or could it compromise some of the margins Going Forward as theyve proven that they are going to have a lot more money . Great quep i think its one of the top questions that investors should be requesting alibaba during the management meetings. A lot of investments whether buying the largest soccer team in china or getting into Film Production or streaming video, theyre lower margin. There is a risk to nearterm margins. So you want a sense how are they making growth and profitability throughout the near term. In all honesty, do you have transparency to make clear calls here . A web of assets and control that im not sure anybody really understands where it goes. People should remind themselves that ma isnt selling assets in this ipo. They are buying shares Holding Company in the Cayman Islands are for profits down the line. Hes removed, assets from the company before without major shareholders okaying it in advance. Correct. He has form on this. Its fair. I mean, this isnt the first time weve had adss. Not on this scale. Not on this amount of money sucked out of the market. Correct. The variable interests entity structure, which is the percent that foreign holders cant own, its smaller than bay due, smaller than the other companies. But the ads structure, the fact a lot is held in a Cayman Islands company, that is true. The board structure, the way Board Members are nominated, elected. Thats foreign. Yeah. Investors need to be educated, right . Investors this is why its important to your question, is jack there. Understand this is jacks company. Jack has control over the board because of that Partnership Structure and jack is going to control if they want to buy more company, how they want to invest, grow internationally, this is jacks company. Investors need to understand that. Good New York Times piece on that over the weekend. Exactly. Nice to see you. Dows down 7 or 8 points. S p closing at record high on friday. Just avoiding a downward winning streak. The s p of five straight weeks in a row. Joining us, this david rosenberg, economist and strategist. Guys, good morning to both of you. Good morning. David, after the jobs number on friday, i wonder if you, like all economists are saying, thats going to get revised higher no matter what. I guess thats what the record would suggest. Even if it doesnt get revised keep in mind that just before the number we had adp, which also has a very strong track record of its own and private payrolls in that report were up 204,000, not 134 in the payroll number. Take a look at auto sales data, Consumer Confidence data, the nonfarm number seems like odd man out. Even if we dont see august revision the september payroll number will make up for lost ground in august. Paul a lot of people say, all right, maybe it was weak, maybe it wont get revised higher. In a sense its going it does give yellen more time to make up the feds mind. Thats right. The doves are in control of the fed. I think theyve made that clear. So i dont think that changes much that investors had to look forward to. What do you think, david . Whats the conversation inside the Federal Reserve . Does it change at all from what it was leading up to next weeks meeting . Well, you know, firstly, the markets are priced for the fed to start hiking the funds rate in the mid part of next year. So, why on earth would in august payroll report have any bearing on something that may or may not happen until the summer of 2015. So look, the fed knows how the markets are priced. If they werent happy youd have yellen, fisher and dudley talking the markets pricing later or earlier. The feds comfortable with what the markets thinking is now and theres no chance that in august or september or november data are going to move the needle on something that may or may not happen until summer of next year. So right now i think its a lot of noise, the fed has an improving economy. The economy would have to improve far greater than what the fed is thinking to Start Talking hawk,ly. The base case is for the fed to move mid next year. It would take a lot for current data to spin the dial away from that at this juncture. Its not next year but next week we get the vote. Poll numbers show maybe voters are warming up to the idea. Is that a risk to u. S. Markets . I can understand the connection to the euro and the pound. How much do u. S. Investors are need to worry about that . No, i dont think thats a big worry for u. S. Investors, even if they vote against the independence, and i think thats likely still, theres a devol solution where london transfers more autonomy to scotland in the years and quarters to come. So, thats something thats going to get priced into european markets. Its not an issue here for u. S. Investors. You made simon audibly gasp. Im sorry. Im really sorry. If the scott, vote for independence there are so many unknown questions about what might happen, what currency to use, whether a bank run in scotland, i just its you know the important thing to say here is its unlikely they will vote against it, thats the more important thing, i think, than dismissing the repercussions of it, if it does happen. Would be my take. No, understood. Butti look this is going to taka lot of time to develop. Its going to be a two to threeyear process. During that time, its very likely that they can avoid bank runs and avoid those kinds of tumultuous problems. More of a negotiated solution in the end. I think its going to take a while to do. All right, thank you, guys. See what happens over the next several days and months. Next, president obama speaking exclusively to nbc saying the u. S. Will hunt down ice is extremists wherever they are, outlining his plan to deal with the terrorist group. Its the barbarian queen. Wait, wait, wait, wait, wait, wait. Whoa, does she have special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. The scarlet king is lord victors son no dont. I told you you guys are gonna be so surprised when you watch the finale youre so lucky your car has wifi. Yeah. I am. Equinox from chevrolet. The first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. You just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. Welcome back too squawk on the street. Multimedia games is soaring. The companys being bought by global cash access for 1. 2 billion in cash or 36. 50 a share. Those a 30 premium to its friday closing price. Shares you can seer currently up 29 . For global cash access holdings, up now offsession highs, 5 . A deal that brings together a bolstering presence in slot machines and manufacturing. Those two go well together. President obama speaking to nbc news in an exclusive interview on meet the press yesterday vowing to hunt down isis extremists. Good morning, john. Good morning. Two big issues the president talked about in that interview with chuck todd. One domestic, thats immigration. He announced that thats going to put off for several weeks a couple 0 of months executive action he was talking about taking. Said the politic of the issue had deteriorated after the child border crisis that occurred this summer. One byproduct of delaying until after the election is that hes going to give the congress one more brief window to get it done. The good news is we have bipartisan support for that. We have a senate bill that would accomplish that. The House Republicans refuse to do it. I said, if you do not act on something thats so common sense that youve got labor, business, evangelicals, Law Enforcement, folks across the board supporting it, then i am going to look for all of the legal authorities i have to act. I want to make sure we get it right. Reporter the other big issue, the more important and immediate issue for the president right now is what to do about islamic extremists in iraq and syria. Hes going to give an address to the nation on wednesday night to lay out the strategy that he said a week and a half ago he didnt have yet. The questions going to be, what sort of conflict is it . The president said, nobody should expect its going to turn into another iraq war. This is not going to be an announcement about u. S. Ground troops. This is not the equivalent of the iraq war. What this is, is similar to the kinds of Counter Terrorism campaigns that weve been engaging in consistently over the last five, six, seven years. Reporter now one of the questions that is outstanding, guys, is whether or not congress is going to vote to authorize military strikes in syria, which have not taken place yet. The president indicated he didnt think he needed that but wanted buyin from congress and both sides of pennsylvania avenue are trying to define exactly how to handle this particular sticky issue. I think the president would have concern about whether or not resolution would pass on the hill and a lot of members of congress may not want to vote for it. John, this morning on squawk box, larry lindsey, obviously republican, critical of the speed of the pivot saying strategies dont evolve in five days. Is that a rational concern in your view . Reporter well, which pivot is he talking about . On isis . Going from we dont have a strategy to this address on wednesday. Reporter no, i think that is kind of a bogus criticism for this reason, when the president said we didnt have a strategy, what he was indicating was he hadnt decided whether to strike militarily in syria and he was lining up his ducks in a row. Its not as if he didnt have the idea for what hes going to lay out on wednesday at that time. This is he said for a while now that we werent going to have boots on the ground and we were figuring out ways to go after isis in iraq and then try to figure out how to handle syria. Its been gradually emerging i dont think its the case where like when he said we have no strategy, he had no idea then all of a sudden he decided, oh, i have to have a strategy now. This was always in development, in the process. This is a little bit of a surprise, the fact that hes punting on Immigration Reform. Im curious the reaction monday morning, the backlash and politics that youre hearing on this change. I think the backlash from the activists is not going to be all that significant in the long run. Remember what were talking about here. Were talking about an executive action in which a president unilaterally would change the legal status of millions of people. Thats very controversial. Some of his allies are dubious about the wisdom of doing that, whether its constitutional. Thats the real earn because you know for 20some years people have been looking for the next iteration of Immigration Reform sign into law by reagan. Bush set out to pass it. I dont think there was any indication bush thought he would legalize millions of people on his own. So thats the outstanding fact. And the backlash is going to be when that actually happens, not whether it happens in september or november. But at the same time, john, an admission they could lose the senate through that election process. Absolutely right. No, theres no question. This was a politically motivated shift because they were concerned about getting hammered in places like arkansas, louisiana, north carolina, where i was last week, and where the democratic conditions said i do not want the president to take this action. Thats why they did. But i the delays going to be forgotten once he takes the step, depending how broad it is. John, for the moment, thank you. John harwood live from d. C. Next, maserati turning 100 and to celebrate the companys producing a limited line of just 100 cars. Get a first look at limited edition maserati when sara talks to the companys ceo right after this break. Reak. My motheits delicious. Toffee in the world. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. I never really thought i would make money doing what i love. We created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. So what were looking for is a way to plus our Accounting Firms mobile plan. And minus our expenses. Perfect timing. Were offering our bestever pricing on mobile plans for business. Run the numbers on that. Well, unlimited talk and text, and ten gigs of data for the five of you would be. Oneseventyfive a month. Good calculating kyle. Good job kyle. You just made partner. Our bestever pricing on mobile share value plans for business. Now with a 100 bill credit for every business line you add. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Luxury. To celebrate 100th anniversary maserati teamed up with zegna to produce just 100 cars. And two the companies are hosting an exclusive access event to see the maserati zegna limited edition here in new york tomorrow. Joining us exclusively here, Harald Wester the ceo of maserati. And the ceo of zegna. Hows pronunciation. Good. Who is this car for . Its 175,000 car extremely limited edition. Who is going to buy it . Well, we believe this car is based on our allnew very successful quatroporte equipped with ferrari v8. The first of the maserati partnership with zegna. An Interesting Partnership between two italian excellences. The Company Shares freedom nanly all values. Over 100 years of history. We are totally dedicated to exclusivity, luxury, style. And this is the first tangible outcome of the partnership. Its not the first of its kind that weve seen. Weve seen her mez with hyundai. Why do you partner with maserati . Does it lead to higher sales . We are two luxury italian brands over 100 years old. Maserati is 1914, we are 1910. Youre fourth generation. Fourth generation. Nice to celebrate the centennial together so its great to partner our capabilities to come up with the end product. Youre celebrating 100th anniversary and that has a lot to do with. How would you describe the appetite of the Luxury Consumer on a global sphere . Were pretty much satisfied how the markets are going. The u. S. Recoved pretty well. To give you a couple of numbers, we are leading the registration increase saturdays yearoveryear. We sold alltime record high in august. Because of new vehicles or does it Say Something about the economics of the consumer demand in the United States . Its both. But in particular, maserati now with a new product offer real al tentative to what has been out there many years. Do you see any impact on the geopolitical tensions between russia and europe on some of the flows and spending. America is on the up, its very important. Europe is now kind of an influence of the russian customers having an impact. China, its not as strong as before. Overall home country, italy, is in another recession. Is your leadership, your prime minister, doing enough to fight it . Third resession, i think, in the last six years. I think hes energetic, young, but you know we have to all support him. Its just a matter of time and the situation will turn around because italian have a passion to do the right things. We just have to move past reform and deflation go back. Just a little bit patient. The action to make it happen. Good to get a check on the Luxury Consumer globally from two of the best known Italian Companies out there, maserati and zegna. When we come back, netflix outformed s p and returns but one of the most hated stocks by analysts. Why is that . Well talk about that after the break. E break. Male announcer ] ours was the first modern airliner, revolutionary by every standard. And that became our passion. To always build something better, airplanes that fly cleaner and farther on less fuel. That redefine comfort and connect the world like never before. After all, you cant turn dreams into airplanes unless your passion for innovation is nonstop. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. One hour into trading. Here is what is moving on the big bore. S p losers, start with that. Commodity names up there. New field exploration topping the lisp we see anadarko petroleum, pioneer natural, energy names beat up. We continue to see the price of oil declining, stronger dollar. Brent fallen 100. China, or for the United States, now that so much oil and gas produced here, ran that to interruption of supply. Its interesting. Weve got winners on the lisp yahoo david, topping that list, up more than 3 . Perhaps after the alibaba was filed, more positions being taken in yahoo . Yahoo as kayla mentioned, selling shares but not as much as originally thought. Fewer shares than originally thought. Theyve pulled back on that. The numbers keep going up. You could end up with 175 billion value at time of ipo and where will alibaba go from there . People doing the math on yahoo wondering what they will do with cash they take in and continuing conversations about the tax efficiency of what will be left and what they could do there in terms of continued large position in alibaba. The road show beginning, what im hearing, just had a phone call, a lot of questions on governance, as you might expect and acquisitions which you mentioned, how man sports teams does mr. Ma want to buy. Or what else, because he has power to do it. The british pound sinking to the lowest level in ten months after the Scottish Independence poll signaled yes vote ahead of the referendum, first time weave seen than the story of the weekend. And the big question on the currency with the pound is, what happens to scotland if they actually do vote yes . I know you said not a high probability event. The positioning here is that the market assumed automatic no to a vote for independence. Whats happened here the tail risk is growing and people are saying, could like a quebec situation they reject it but reject independence but margi l marginally and therefore it kind of stays on the table what happen does it mean for Business Investment . What does it mean for future questions what currency theyll use, whether theyll be in the european run union on, whether a run on the banks. Corporates would want to seen to be registered in the uk than breakaway scotland. We didnt think we had to ask the questions and now theres a lot of Research Notes coming out, analysts Holding Conference calls to talk through with clients. One stood out saying it could risk the uncertainty here over the currency a eurostyle breakup fear which we had a few years ago. Paul krugman publishing, theyll look like spain trapped in the euro than canada if scotland break as way. Everybody has an opinion. Also let me mention, that david cameron, uk prime minister, not campaigned actively in the referendum because he doesnt have any mps in scotland and it could backfire. If he loses united kingdom, he as an individual is kicked out by his own party which is negative. Also want to mention shares of ford falling after downgraded. Analysts citing peaking u. S. Auto cycles. Something that we have heard before and that is that the chief credit fuelled a lot of the housing recovery is going to eventually come to an end. Weve already gotten so many millions more than expected in terms of auto sales. Maserati, spoke to him, not feeling a slowdown impact. Slightly different. The cycle of their pickup, they say expectations for the new f150 high, people arent talking enough about the what response will be from rivals and not sure it can be done riskfree. Expectations on margins are high because you may be taking in this fierce pricing war you may be taking demand from the future. I think thats the argument. Risks to north american profitability how they put it together. Hertz announcing that Mark Frissora will step down as chairman and ceo of the company. Of course, this is david, under huge pressure from carl icahn. Said they were going to spin off the equipment business. Frissora, basically built this. He dlid the dollar thrifty acquisition. They have yet to benefit from that the way competitors have. Theyre in accounting hell, restatement they havent given a forecast. He moves the company down to naples. Some questioned that. They lost a lot of staff as a result of that. From what im hearing, from sources close to the board is, macdonald, originally tapped to run equipment leasing, may stay in that job. Not just an interim he is interim now but expected to be lets call it, he has the inside track. Which may be a surprise to some who expected, scotts thompson, many thought might want to be in a position to take the guy who is running dollar thrifty for them but im told theres a belief on the board it takes somebody who can arent a complex organization which clearly hertz seems to have become, a lot of different moving parts and not great execution or performance of late, hence mr. Frissora. And the board acting here. The lead director in particular having met with large shareholder at the very least, making their decision to move on in terms of ceo. Meantime, some of the biggest names in the s p some of the most hated by analysts, dominic chu has more. When we look as s p 500 we looked aall stocks that analysts have a price target on below where the stocks are traded, there are 30 stocks in the s p 500 have that have price targets below where shares are currently trading. 30 of them, again, by more than 3 3 or more. Some of the big names that were talking about. Take a look. First, youve got a big name like netflix, a name that everybody talks about because its a momentum stock, online content, a huge deal. The stocks had a nice run. 460 average price target, in terms of average analysts estimates means that that stock currently has maybe a 4 downside baked into it, if the analysts targets come to fruition. Interesting stock there. Take a look at this one however. Keurig green mountain, theyve got a huge pop after cocacola took an investment in the company. Analysts have 124 price target which means current levels we could see shares drop 6 if target prices are not revised. Interesting one there as well. Take a look at this one, under armour on the Athletic Apparel side of things, another stock, great run, filling into the valuation now. The 69 price means possibly a 7 downside. Again, remember big news, signed giselle to a huge deal. One of the worst, staples. The 11 average target price means simon that analysts think this stock could drop 12 in coming months if things dont change. Some of the stocks you may want to Pay Attention to penning analyst revisions to their target price. Back over to you. Alibaba ipo fever hitting wall street as the road show begins its set to be the largest ipo ever in the country. What are the implications for the Broader Market . Squawk on the street will be right back. Are we still on for tomorrow . Tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Csx. How tomorrow moves. What a day. Cant wait til tomorrow. E financial noise financial noise financial noise financial noise its monday. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, Global Broadband network and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. Centurylink your link to whats next. The chinese ecommerce giant alibaba kicks off the road show in new york today. For more on the anticipated ipo, lets bring in david menlo. Good morning. Good morning. A feast for wall street. Lets get even scenario for people involved in the syndicate and i dont think any of the guests youve spoken with in the past have brought that up. The syndicate players slugging it away in the secondary markets and having to take stock positions they dont want to take are accumulating huge losses and this is the you better make it up to me stock. Interesting. Yes. You should explain that to people, david. Im not sure everybody will understand what youre talking about. There have been regulations passed by the s. E. C. , no quid pro quo youve got to do the stocks that dont do well in or to get good witnesses but it still happens. All of a sudden investors find out they have big positions in secondaries they dont want, this is where we put a lot of our attention on a Risk Management and also profit censor basis. But they take losses and figure, ive got to do it because when a good stock cop out like alibaba im going to res y ing ting to better give me 100,000 shares. The bad stocks . As a result of this deal coming out, everything is going to be put on hold until the oxygen comes back into the room for this deal because the mechanics of what will happen next friday are going to be very sorry. Lets say that they are going it raise 25 24 billion, is that sitting around or do they have to sell some of the less loved names in the space . Economic conventional wisdom would say you only have a limited amount of dollars so people are going to start to thin out. But thats not going to happen the day of the 18th. People are getting out in advance if they have liquidity constraints, otherwise lots of firms out there in have the capital. Every ipo has a story, right . Facebook was about mobile. Talking about this on twitter, twitter was about monetization. Theyre saying this ones about transparency. And corporate structure. You think thats true . I absolutely think thats true. The valuation considerations, you just have to toss it out of the way, the discussion nobody cares about that. But you bring up the sensitive part of it. Ego structure with jack ma. Look at organizational chart, you need a visa to get from one side to the other, its incredible. This guy says its my way or no way. So yes i think the transparencys a problem. You look at it, Credit Suisse, an interesting thing, the lead manager. Nine years ago Credit Suisse did revco, imnot trying to slam them, but it was a deal tremendously Successful Company when private. They did it the Arthur Andersen issue came up, company gone overnight almost. Thats not going to happen here. But concerns are valid but nobodys going to be looking at that probably for three to six months. End up at 175 billion value on day one or going out the door with ipo if we get to the high end and its moved up, david, is that too high given how enormous . Hard to express, bigger than anything weve seen. Right. I think we have to go back to the days of google, take a look at what happens with facebook, twitter. All of these same conversations are like on open reel tape, they keep playing it but the earns are that the stocks all worked out. Valuation considerations for lets say 40 days, when the 20 underwriters doing the deal can come out out of the quiet period with research reports. Are you saying, forgive me, bottom line, theres sufficient momentum behind the stock for so many reasons if you get the stock on day one buy it because momentum will push it higher. Yes. Thats what youre saying . But there has to be limitations. Im not prepared its a short term. A short term situation, the stocks going to be in every under in every managers position. They have to have a representation to this. What the problem is, where 60 to 66, thats what david said, bring it out 75, 80 where demand is. I dont think its overstretched at ipo price there will be room for the stock to move. Does it smell look a market top . Not at all. A singular situation. Yes, there are parallels when google came out. Visa. Yes, when visa came out, other stocks, yes. This is not going to be the case. It is going to be a smarting ground for many more companies that will start to file. David menlow . Caller ed the first lady of cannabis and Martha Stewart of marijuana, selling one of the first designer brands of pot cost more than 700 an ounce, wrapped in gold. Live when we come back. Come ba. Whenwork with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. Welcome back to squawk on the street. Shares of of boeing the leading gainer in the dow industrials. The stock moving higher on news Irish Airline company ryan air is buying 100 of its 737 jets in a deal valued at about 11 billion. Ryan air has an option to buy another 100 jets as well. Boeing up nearly 2 off session highs on a day, guys, sara, when we see the dow bouncing off its session lows. Back to you. Ryan air down a little more than half a percent. Thanks. Our next guest has been taking the Marijuana Industry by storm. So much so a recent cover of ad week has her pegged as the first pot marketer. Ambitious pot entrepreneur isnt stopping there. Shes taking us now behind the scenes of Beverly Hills ultrahigh life. Joining us from l. A. , cheryl shuman, as she likes to be called the Martha Stewart of marijuana. Good to see you. Great to see you. Thanks for having me on. I would love to hear about the Beverly HillsCannibis Club which seems to defy all of the stereotypes about stoners and potheads. Well, thank you so much. I mean thats exactly our purpose. When i was first diagnosed with cancer, i was really feeling a shamed in the beginning about using cannibis as a consumer because of the negative image and stereotype and when i spoke to a lot of my celebrity friends and highprofile friends we decided to have our own farm together. We have 68 acres up north and think of it as a friendly resort we want to take on a national level. The truth of the matter is there are a lot of celebrities and highprofile people who dont want to be assigned to that negative image so as a branding and pr expert i decided to rebrand the face of the modern cannibis consumer, make it what we are today a mixture of culture and celebrity culture. If anyone has any doubt theres no doubt in my mind cannibis is now mainstream. Well, i mean, in california, its just medical, just approved for medical use. Do you expect this to get on 209s 16 ballot for Recreational Use . I absolutely expect california to lead the way for 2016. We consume more cannibis in l. A. County than any of the other states combined and california leading the nation in that fact will lead an estimated 47 billion industry by 2016 and im very proud to announce that i manage 100 Million Hedge Fund to invest in the cannibis sector and im now doing a 15 citywide investment tour with green rush financial seminars matching up investors to cannibis entities. How do you do that . Do you work with banks . Q. Do you have a Banking Partner in your business . Or is this all cash . As we understand it, its been difficult since marijuana is still illegal at the federal level, to get financing, to get help and get credit card use . Ironically, these all private investors, angel investors. What i like to refer to as burnsers, most of them in illegal states. There are a lot of millionaires and billionaires that consume can ko cannibis that want to strongly influence the Political Climate on legitimacy so they dont have to worry about going to prison and losing their millions of dollars being a consumer in an illegal state. What were working for with this super pac and hedge fund and Financial Investors im working with we want to see cannibis legalized federally by 2016 and im proud to say im the woman leading the way and women are leading the way. So, cheryl, just explain this to me. Is it a oneway bet, is that what youre saying . There is a liability issue here. Medically we dont know nosily whether you can have a longterm illness and sue presumably and civil action against you as the leader of that investment. Tobacco companies worry about the roll of the dice case. Will you have to worry about the roll of the dice case potentially . Let me explain this to you. Im cancer survivor. I dont worry about things. Being at the front end of this and leading the way, doesnt scare me at all. Im very proud to lead. I am a little bit of a gambler by nature. I took cancer head on and im willing to take this head on and lead the way and im willing to do whatever it takes to see marijuana legalized by 2016. Not just on a United States level, but on an international level. Im very proud of that. Cheryl, in terms of the price point here, i can understand from a marketing standpoint wanting to go to the high end. We talk about the high end of retail every day. What are people getting for their money at these prices . Unless its just incredibly potent you must be taking people to the cleaners . Actually, no, not at all. It depends on how the cannibis is grown, the strains, the breakdown of the chemical compounds. For example, if youre purchasing cannibis in a state where its grown outdoors so you dont know for sure if its clean f its been tested, youre obviously going to get that at a lower price. When youre working with us at the Beverly HillsCannibis Club, everything is organically grown, all tested. You know what youre getting. We have the finest strains and its i think the simplest comparison is to the wine industry. Youre always going to have your overthecounter bottles of wineries when we go recreational for recreational adult use and then youre going to have your private vendors or private growers that grow cannibis or connoisseur quality cannibis and what we do in our group like for the Beverly HillsCannibis Club, like a wine person, you would have an expert where we pair the cannibis with the fine dining as well. My vision is to see a private dining and vaping facility in every major city of this country. Some say the starbucks of pot but i think of it as a fine Dining Experience and with the 420 resorts imagine going to the finest reorts ises with the finest cannibis and have a getaway retreat. I heard you tell katie couric you can juice it which i didnt know. We have to leave it there. The Martha Stewart of marijuana. Lets change gears and send it to jon fortt to find out on whats coming up on squawk alley. Another great show for you. The engineers who helped launch beats are at again it. Well see if their next headphone idea strike s it as big. Alibaba, the questions you should be asking ahead of that and twitter, would you buy from a tweet . Soon you can. Well talk about whats behind it coming up on squawk alley. Your boss . Yourself . Your parents . Your family . At baird, what matters most to you. Matters most to us. As an Employee Owned firm, our Financial Advisors have the freedom and resources to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Wait, wait, wait, its wait, wait, wait. Whoa, does she have special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. The scarlet king is lord victors son no dont. I told you you guys are gonna be so surprised when you watch the finale youre so lucky your car has wifi. Yeah. I am. Equinox from chevrolet. The first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. 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Joining us is john steinberg. Nice to see you. And also slava rubin. Jon fortt on set and Kayla Tausche up town at the waldorfastoria where alibaba has begun pitching to investors. Quite an effort kicking off today on three continents, right . Thats exactly right, carl. New york is going to be the main event. Later on in the week the executive team of alibaba will be splitting up to cover a little bit more ground. 12s plus cities nearly 100 investor meetings but today at the waldorf astoria is the main event. Doors just opened. The question is how much and whether investors will be putting money to work when this Company Goes Public next week at what looks to be a