Of course, the jobs number next week. We begin with good, not a great. Thats how one group is describing black friday retail sales. Live checks from malls across the country. Plus, a lawsuit against Sumner Redstone making some shocking allegations. Well have more on what that means for viacom and cbs and their response. And Vladimir Putin saying he will cooperate more with the terror fight in syria, but the war of words between russia and turkey continues. First up, though, black friday has arrivinged, one of the biggest shopping days of the year. Good but not a great from Customer Growth partners. Also seeing an increased trend of shoppers earlier with retailers opening the night before. The nrf says 22 of consumers expect to shop on thanksgiving day, up from 18 last year. Out of the stores, adobe predicts a record 1. 7 billion spent online. 3 billion on monday. In fact, theres a sense that because so much of the shopping, guys, has shifted to online, essentially customers wait for monday to get things going. Thats been the question in recent years. How many shoppers will actually show up in stores for deals. I think the context is key here. That is for retailers, its been a really mixed bag. We talk about consumer discretion nair stocks. That does include names like netflix and other internet retailers. If you look at the S P Department store index, for instance, which is macys and nordstrom, its gone in the complete other direction. Its actually down. Theres the chart for the day. Corn super discretionary, up. Thats why its going to be so key for them to get excited. Even if theyre going to entice consumers with promotions and bargains. Is there any real reason to expect that the trend thats been going on for some time is somehow going to reverse . I mean thats going to be the trick. Target, for instance, has really racked up its online presence, trying to go up against amazon. Its going to be factors like that. The weather is not helping. 60 degrees in new york. If those stores are selling parkas and puffy coats, theyll have to do it at 50 off to get them interested. As analysts told us, its about capturing market share and sales. Its still a very important week for them. Still 20 of holiday sales for the retailers and holiday sales are 20 of overall sales for the retail sales. For a closer look at how things are shaping up, lets get to Courtney Reagan whos at Woodfield Mall outside chicago in schaumburg. Hi, courtney. Reporter happy friday. They expect another 100 million to come out in stores and online. Some got an early start on thursday on thanksgiving. Pretty big numbers that were getting from across the country. And as much as 20 of retailers holiday sales can come from this weekend, so it remains a very important one. Retail firm jjl says 90 of its traffic is stronger than last year. You might remember last year was a bit more muted than perhaps weve seen in years past. Now, weve talked to a number of shoppers here at Woodfield Mall that come out every year. Theyre still going strong. Take a listen. Looking forward to the sales. We cant cover everything on friday. Weve got to wait for another day. Its like disney. You cant do it all in one day. Reporter now, walmarts chief merchandising officer says he would classify it as calm and safe. Lots of families shopping together with pretty full carts. Electronics really led the way and walmarts bratz by said the roku tv as well as the 40inch tvs across all of the brands were the bestsellers. Adobe sales including beats by dr. Dre and i know that you mentioned it earlier but it bears repeating. Adobe says online sales for thanksgiving day top 1g . 7 billion. Thats up 22 from last year. Today theyre looking at 2. 7 billion. So shopping is happening. In stores and online. I know we talk a lot about the graying of black friday, but it is still expected to be the heaviest volume shopping day that well see all year. Back to you. Yep. Still very important for those retailers. Courtney reagan, thanks very much. Heres what was said about sales. Last night was clearly the kickoff to thanksgiving shopping. It was a combination of online sales. Macys has the second largest business in america today. It was very strong combined with our store business. Thats what its all about for us. Omni channel is the buzz w d word. Susan, i guess well start with you and go straight to a live report from the wall. Can you confirm what Terry Lundgren was saying . How is the traffic at this hour . Yes. I think definitely consumers are starting to shop earlier like we were talking about. Last night was very crowded. Overall i would say pretty strong traffic. So, neely, would you agree . The New York Times busy section today has three articles. The graying out of black friday, door busters, no, and black friday bargains are fewer than you think. Theres a lot of gloom and doom when it comes to major headlines. Do you agree or do they have it wrong . I think they have it wrong this year. Holiday has kicked it dead. We saw in minneapolis last night and again at 5 00 a. M. This morning the weather cooled and she showed up and shes converting. Thats a very good sign. You say jcpenney is a winner. Why . They opened first. Jcpenney absolutely won. But was really a great, a lot of people on black friday going for an item and they leave with an item. They went in for an item and came out with a store. Thats how you win at black friday. Neely, its coming at a time when youve got the savings rate at 5. 6. Spending running at 0. 1. Do you agree with susan that black friday is in any way rejuvenating a more abundant consumer . We think this year has been largely an issue of discretionary time, not dollars. It was so gorgeous this fall across the nation. She chose to spend time with her family and outside. We saw it in google and facebook. Now its time to get the job done. We showed the chart, the S P Department stores index going down. Trouble with macys, nordstroms, and walmart. And Consumer Discretionary stocks in general having a very good year. Is there any reason to think these Department Stores can turn it around this Holiday Season . Yeah. I think definitely consumers, you know, weekdays, are spending a little bit less on apparel these days. You know, i think that theyre buying more electronics. Theyre looking for more leisure activity for outdoors, which is why were more focused on the athletic retailer too. That said, we think this Holiday Season, under armour is going to be a big winner out there. You do see promotions on athletic wear like under armour and nike . Thats always been the thing. Theyve been able to keep their retailers because you dont usually see a lot of discounting activity. Is that changing . Yes. I think especially with the warm weather, there are some things that are not moving, the hoodies and the fleece. Thats kind of where were seeing the promotions this Holiday Season. But i think they have other items selling very well at full price. Theyre selling very well given the warm weather. That will probably offset that. Neely, what are you seeing in terms of promotions and discounts and what thats going to imply . Weve been tracking promot n promotional activity for 20 different retailers. We saw 70 of our retailers that we track. You know, in fact, id note that more exclusions existed this year than last year, which is also a positive sign, but we saw 15 retailers. They have lower promotion this year versus last year, so we think overall its not a bad start to a good Holiday Season. All right, guys. Thanks for joining us to kick off our black friday discussions. Much more to come. Susan anderson, neely ta min ga of piper jaffray. Good to see you both. Thank you. It was a shock. The former livein girlfriend claimed the 92yearold share holder is unable to speak, eat on his own, and unfit to make decisions. Redstones attorney called it baseless saying its a meritless action riddled with lies and a despicable invasion of his privacy. It only shows shell stop at nothing to pursue her personal financial agenda. She claims she filed it on behalf of him. They go on to say its prepolls truss. You can see the shares did have a nice move there. Theyre also look up this morning. All of this, of course, goes to the larger question, which is whether or not hes 92 or even old e 93 or 94. Mr. Redstone certainly toward the end of his years and the question becomes what will happen to viacom. Now, what will happen to viacom perhaps should he be deem not in a capacity to be its chairman of viacom cbs. Although, again, his lawyers make it clear its baseless allegations from miss her zer and a record shes building. They say it has nothing do with any present concern for his protection. In the lawsuit they do go on as well to state i think we have this in text. Mr. Red stones 92 years old. He suffers from impaired mobility, has had a substantial speech impairment that makes it difficult for him to communicate with newcomers unfamiliar with his speech pattern. They say all thats left is an elderly man subjected to discomfort and indignity of strangers. Indignity of examination. By strangers because of a former friend claims to know better than the relevant treating physician and geriatric psychiatrist. That trust includes sherry redstone, sumners daughter as well as his grandson, tyler. It will be seven people overall who willed a jude indicate that trust. And there is nothing that says there is going to be a for sale of any kind when the day does come however many years it may be that mr. Redstone passes away. Always a difficult subject to discuss, of course, somebodys health, somebody who i spent a lot of time with, enjoyed seeing, have not seen in a number of years. But certainly a towering figure, if you will, and a towering personality to match is mr. Redstone, sara. The tax bill from the e estate which will be generate cleveland be paid off by the trust and the dividended generated through cbs and viacom. Theyll have ten years to do so. So those speculating perhaps doing so at their own risk, but well see. Certainly if he were to be deemed mentally incompetent in some way. The ceo of viacom is also the person who is dealing with that or will make those determinations so to speak. I guess i mean besides the salacious details and you dont want to get into the lawsuit stuff, hes still in his 09s. Theres still a question of secession and the company. The backstory is advertising. They take in television, watch television. That poses existential questions with an article like that. It does. One of the largest issues is viacom did not have it, one would wonder if they would still be running the Company Given the difficulties they have had as sara mentioned both in the Advertising Market and yourall. Theyre going to fight it. Im read 1g 23 pages d123 pa holiday reading. Yes. Coming up, a look at which retail sales might be in the hot seat. But first Vladimir Putin saying hes ready to cooperate with the air strikes but continues to spar with turkey. Well take another look at the futures. Well get to disney and its 10k they filed on wednesday night. What theyre talking about regarding espn subs. A light volume day is expected and the stockmarket closes at 1 00 p. M. Eastern. Were back in a moment. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Vladimir putin hosted french president Francois Hollande. This as the war of words between russia and turkey continues. Our jeff cudmore is in moscow now. Hi, geoff. Reporter thats the meeting with Francois Hollande. The message is there is room for further intel sharing and there will be an escalation of strikes against isis targets and both the nato community and ruf will Work Together to identify isis targets. Thats a positive stop here because in that press conference, president putin used the opportunity to again bring up the issue of this downed russian jet and he made allegations that the turks knew where this jet was because russia has been giving information to the americanled coalition and he called turkish claims to the country lame. Well, that then kicked off a round of very undiplomatic language. President urd one has come out and said president putin shouldnt play with fire. So far he has refused to apologize for the downing of that fighter aircraft, and he has also hit back at allegations that turkey is taking isis oil by saying russias ally syria is, in fact, the one who is paying for oil from the terrorist organization. So while we may have seen some progress, carl, in that meeting with Francois Hollande and president putin, the undiplomatic language continues and the russians for their part are still looking at how they may levy economic sanctions against turkey in retaliation for the shooting down of that aircraft. Back to you. Geoff cutmore from moscow. Thanks so much for that. When we come back, well get an idea on what to expect. Also the ceo of ethan allen and what the Furniture Store is doing to boost sales. A lot more squawk on the street from post 9 returns in a moment. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . So wi got a job ews . Ill be programming at ge. Oh i got a job too, at zazzies. friends gasp the app where you put fruit hats on animals . I love that guys, ill be writing code that helps machines communicate. interrupting i just zazzied you. phone vibrates look at it friends giggle i can do dogs, hamsters, guinea pigs. You name it. Im going to transform the way the world works. proudly i programmed that hat. And i can do casaba melons. Ill be helping turbines power cities. I put a turbine on a cat. friends ooh and ahh i can make hospitals run more efficiently. This isnt a competition just about minutes till the bell. Good to have you back, sarge. Nice to be here. Youre not, i would say, overwhelmingly positive about the consumer going into this black friday . Well, i think there will be disappointment. I myself like a lot of traders, we kind of beefed up on the retail sales. At least i took some money off the table wednesday. Aisle probably take more off today. What about the plunge and the setoff. Does that concern you . It does concern me. Europe kind of wobbled a little bit when it happened, but they recovered. They were in the green. They were in the green yesterday nicely. I think it may be something we miss. Well, the reason for it theyre attributing is the expansion of this propose which wouldnt feel like it would affect maybe it affects the chinese economy. Certainly it doesnt affect us here, does it . No, no, it does not. Theyre still evolving in that regard and theyll continue to do so. Whats important to keep in mind for next week . Weve got a few things. Weve got mario draghi, weve got the jobs numbers and your expectations for draghi. Its a big expectation. Hes talked loudly. Does he carry the big stick . I think theyre going to add some muscles. Its a matter of how much muscles they add. Meaning what . Duration . Duration and size. Im not willing to gauge how big they go. I think you can see by the way the european equities have traded. I dont know. The euro is getting hammered again. Good luck, sarge. Thank you very much. Well get the opening bell in just four minutes. Announcer if youd give thanks for a better nights sleep. [barks] sleep train has just the ticket. [train horn blares] through thanksgiving weekend at sleep train get three free gifts with selected mattress sets save up to 300 on beautyrest, posturepedic, serta, even tempurpedic plus, get up to four years interestfree financing but sleep trains thanksgifting sale ends sunday sleep train [train horn] your ticket to a better nights sleep squawk on the street live from the Financial Capital of the world. Opening bell in just a minutes time. A lot of employees kids down there. I guess its become something of a tradition. Theyve set up tables and chairs. It lightens the mood. And santas here to ring the opening bell. That helps. Were watching opening bell. Traffic pattern at the malaysia has changed as shopping online has become more of a phenomena. But the nrf says 100 million expected to shop. Theres the opening bell and a look at the s p at the bottom of your screen at the bigboard. The marine toys for tots foundation, santa ringing the bell for the second consecutive day over the merchandise retailers bed bath beyond. Ill tell you whats getting a lot of attention is disney. The 10 k. They lost 3 million subs in the fiscal year putting a number on what iger had said were some subscriber losses. Yeah. They list Current Subscriber levels at 92 million. It does appear that over the last two years, carl, theyve lost as much as 7 million subs. Thats not an insignificant amount, certainly when you consider how much money disney takes in for each espn subscriber in terms of what youre paying for the service to your cable company. You can get caught up in the acronyms that they all like to use. Its main concern as you watch cord cutting and cord shaeving. That being the smaller packages that become more readily available that dont include espn and those who choose to cut entirely getting video via cable, perhaps only taking it via broadband. Gaining subs overseas, though, we should mention. Espn is not alone in this. They talk about numbers at disney channel, disney xd, losing 5 million over the last five years. Its changing. The question is how fast will it occur. There are those who are still waiting for it to occur and suddenly theyll argue the suddenly is now here. Weve been waiting for it for years and were now in the midst of a seminole change. And it will show itself in, of course, the lower and lower totals of people who take the package, so to speak. Theres the counter argument that says, hey, the package is a good one from an economic standpoint. It probably makes sense to have the socalled bundle. Well not a secular issue, clearly helping disney is the star wars. The craze has already begun. Adobe has put out its numbers. They cited is to as a strong category driven in part by all the Star Wars Toys. The movie doesnt come out until december 18th, but that helps. Were going to talk about what all of this means. Disney, far and away the worst performing dow component at the moment even though the majority of the components are in the green. Retail, we talk a lot about phil lebeau is going to talk to us about how carmakers are trying to make black friday a day to go out and buy a car. Ford has a full page ad. 20 on the month. Fiat. So watch out when we get the sales for november. Thats the place where weve seen it. Its been autos. On electronics. Thats been strong. Apparel, not so much. Im looking at the sub industries, all doing well, the footwear category. Retails. Consumer electronics, all of those sort of sub s ps are better. Well have to see. So many numbers come at you during that day. Its hard to figure out what makes sense. We know that consumers are recovering. Jobs are being created. Consumers are spending a bit, but theyre also saving more. Well see how that impacts overall retail sales. Watching some of the names that have given up a little bit of color on black friday, target, for instance, saying customer pickups up 35 . Big debate. If youre a retailer, if youre going to try to copy the amazon model and deliver or if, in fact, as a retainer, you spent your entire life to get people to come into the store, if pickup is really the future. They got into some of the nittygritty about how difficult it is to make that pivot for a retailer like target. You have to pay people more to work on holidays to make sure they make it on time. Thats what consumers have come to expect and all of that sort of reworks their model and how that weighs on margins in an already difficult time for retailers dealing with higher labor costs and lower traffic numbers and all sorts of other problems. Right. Of course, cyber monday is coming up. Well see how that goes. Soon after we always get that long press release telling us how much they sold of everything. How many times you can wrap it around the earth or send it to mars. Its always entertaining, and, of course, effective for their markets purposes. We should mention amazon shares up ever so lightly. Ebay down, alibaba also down. Actually down about 2 , which always has the effect of bringing yahoo down which is about 1 this morning. Dollar, new eightmonth high. Going strong. Mary thompson is on the floor seeing whats moving. Good morning, mary. Hey, there, carl. Kind of quiet. No surprise. Its expected to be a light day of trading. It closes at 1 00 p. M. Eastern. Look for light volume. Certainly investors will be focused on any kind of anecdotes coming out of the retail space because that is the focus on this black friday. Take a look at how the managements have performed this week. Traditionally an up week for the markets going into the last hours of trading. We see the nasdaq and russells showing gains but the dow and s p have been flat so far for the week. All of this coming on the wake of mixed markets overseas. The big market was at 5 plus decline in chinese shares. The shanghai composite overnight because of the expanding increase. All of this coming ahead of the decision as to whether or not to include the yuan. It is expected this time around. Something that could move over a trillion dollar worth of assets into the yuan. The dollar, another eightmonth high against the euro and that predictably is pressuring commodities with the exception of copper which is higher today. Energy, though, right now crude oil is down just about 87 cents. 42. 16 a barrel. Well be watching to see how that reacts. Thats, of course, been the primary drive over the markets this week. Down about 2 . The primary driver will be the retailing group. Well be talking about it all day long. So a quick check of the retailing index, actually higher right now. And just taking a look at some of the stuff that was issued by adobe, they watch a lot of the online sales. A couple of interesting notes. They say the number of items that have been out of stock, they say its double what it usually is. Discount, very steep. 24 . Thats likely, of course, to translate into lower margins or could translate into lower margins for retailers. As you see, macys is the only one lower right now. Well be watching them throughout the day. Right now the dow is down 21 points. Back to you. Bigger promotions and sales, better for the consumer. Mary, thank you. For more lets head uptown to bertha coombs. Good morning. Weve been watching some of the retailers here. Were watching them. Its kind of shifted each in the last ten minutes but when you look at some of the big consumer names, Electronic Arts is one of them. Certainly this is a big time of year for a lot of those gain and with the new star wars franchises out there, thats one of the things theyll be watching for here. Apple started off more positive, now slipped slightly into the red. One of the things target said, they sold a lot of over the last few days have been apple products. So this, again, is a big time for apple. Well see whether it moves the needle in terms of some of those ipads and some of those other things besides the i phone. Amgen also higher today. Biotechs overall strong. Amgen has applied with the fda to make a bio similar version of hue mara. Its an 11 billion drug a year. A lot of them are looking to make them. Mark newton over at gray wolf says theyve seen a nice bounce back and theyre poised for gains. Back to you. Bertha coombs, thank you very much. Jackie deangelis at the nymex. Good morning, jackie. Hi. Were expecting to see light volumes. And were looking at oil prices down about 2 in this session. As you mentioned, gas prices, bob, as you mentioned are low. The last time i checked, the National Average was around 2. 06 but it was declining and thats something to keep an eye on. The last week or so, weve touched that level a couple of times and now holding. Thats probably whatsed a adding the pressure in the commodity space today. Whats more interesting in the metals complex is the action that were seeing in gold. About a 15 move lower on this movie higher in the dollar index. But part of this also is because we have such a big week next week, expecting to hear from the fed, potentially get a december rate hike that everybody has been looking for. That will really not be a positive thing for gold prices. Really a surprising move today on low vacuum. Back to you. Jackie deangelis on oil, thank you. We go back to retail. For many shoppers, black friday started early as they looked for door buster deals on thanksgiving night. What are stores doing to attract them . Lets go out to margaret brmorg whos at a target store in new jersey city. Good morning. Reporter good morning. Were seeing things pick up after a pretty quiet early morning. So this store like the majority of the 1,800 target locations across the u. S. Has been open since 6 00 p. M. Last night. We caught up with shoppers in many of the electronics and toys area, the two strongest, to see what theyre buying. A smart television. Hopefully visit owe, samsung, for my daughter for college, getting ready for college next year. You have to get a smart tv. Its the hottest item of the season. Tv and toys and look around for gifts for the family. I have two little girls. They want ipads. I went by best buy and they werent open. I looked at my phone and saw target had some, so i came by here. So target as well as several other retailers starting rolling out door buster retailers early this week. Its offering Free Shipping on everything again this year and so far that strategy does seem to be working, the company saying thanksgiving was its busiest day for onlyme line sales ever, thereafter after rolling out a black friday preview. And also saying he expects demand to continue throughout the Holiday Weekend into december. Take a look at shares at target. Theyre up by about half a percent. Back to you. Thank you very much. Our morgan brennan. When we come back, a lot more from disney revealing loss sub losses on espn and here at Herald Square where they had the parade thursday. Well get more when squawk on the street continues. A mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Hi watson. Annabelle, your birthday is tomorrow. Im turning seven. What did you ask for . A princess. And a pony. You like things that begin with p. I like pink frosting too. Will you have a cake . Yeah. I was too sick to have one last year. The data your doctor shared shows you are healthy. Are you a doctor . No. I help doctors identify cancer treatments. I want to be a doctor someday. I can help with that too. Watson, i like you. Come on, wake up come on, why ya sleepin . Come on what time is it . Its go time. Come on. Lets go, lets go, lets go. Woooo hoooo yeah i feel like i went to bed an hour ago. Ill make the cocoa. Get a great offer on the car of your grownup dreams at the mercedesbenz winter event. Its the look on their faces that makes it all worthwhile. But, hurry, these offers end soon. Thank you santa ross else has finally lowered its security level from its highest level following the attack in paris. Our julia chatterley is with us. Good morning, julia. Reporter what this means is the risk of a terrorist attack here is now considered serious rather than imminent. Thats interesting for a couple of reasons. First, this decision was made at least three days early and it followed three separate raids carried out in brussels yesterday. Ultimately just why was the threat level reduced yesterday . What information did the government have here . Now, this bhasen the criticism that theyve received all the way along, that theyre just not telling the people whats going on here. Yesterday the Prime Minister pushed back on that and said, look, were not creating the uncertainty here. Its the Islamic State that is and we ultimately need to keep the information cards close to their chest. Guys, i just want to give you a sense of where i am here because i think this is pretty important. I rorpted on monday when that threat level was initially raised. This street was pretty empty of people, the subways were closed. Fast forward five days there are far more people around. I think the obvious comparison to make is security. Theres still loads of security around. So just to give you a sense, there is uncertainty here. Theres a high level of security, butl security, butl security, but ultimately its a city coming back to life. Thank you. Live this morning from brussels. Up next espn reporting following subscriber numbers. Star wars trailer. And now the worst performer in dow down 3 . More squawk on the street when we come right back. Through thanksgiving weekend at sleep train get three free gifts with selected mattress sets save up to 300 on beautyrest, posturepedic, even tempurpedic plus get up to four years interestfree financing sleep trains thanksgifting sale ends sunday. Lets give you a look at the market on the shortened trading day. I hope everybody had a happy thanksgiving. Lets call it flat on the day. Media certainly the standout right now with disney as part of the dow down over 3 on those espn numbers. And speaking of that, well, disney did say in its 10 k annual report that subscribers at espn numbered about 92 million. And when you do the math and see what subscribers were not that long ago, you realize they lost as many as 7 million over the last couple of years since the top. But as for disney overall, disney hoping a new franchise can make up for the lack of it. Theres the trailer. People trailing me a little bit here. Very excited about that. Lets get to barton now and get his take on exactly what well, first of all, lets talk with espn numbers. Back in august, we watched all the stocks in question down sharply on the first signs, at least, commentary from disney that there were some sub losses. Put this in perspective for me. More than you expected, less than you expected . Well, the number in the k is old. This is a nielsen number for the end of september that weve had a couple of months now. Theres no information here. We know the revenues, which are more important. We also know that these nielsen numbers are not really the best numbers. I mean its interesting. Iger said the nielsen numbers dont get paid on it so theyre a misleading number. They put up about 8 normalized growth in affiliate feels where they endward you see the subscriber number for 92 million. The media stocks have recovered and i think theyve recovered because people have seen its not as bad as the real fearful story that came out of that Second Quarter report. You know, i theys the right way to look at it. I think with disney, youve got a good busy and you have things on a rocket ship ride when you look at the studio and consumer licensing and the theme park potential from that and thats enough to get you excited from here. Right. Youve got a great business in espn, but the fear has been for some time, of course, it wont be as a great as it has been and the overall fear you know covering the success tore is were starting to see significant erosion in subscriber baless for many of these networks. Are we at that point, martin, where its something were going to be looking at every month, every quarter, every year . I think people were of the mindset a quarter ale and what people see is its not sn snowballing. You know, its a little bit different than the overall industry number but i think the revenue trajectory is consistent with that 1. 5 which is a number thats manageable with all the things you can do from selling online to online skinny bundles to launched new brands online and with someone like disney getting paid on a creative cycle. Theres still a lot of ways to make a great money in this business and they could see good Earnings Growth as the properties roll out. So you clearly announcement the stock. You have a 126 price target. I think you wrote after last earnings that you do expect star walls to be a catalyst. What does that look like for investors because there was confusion as to when disney would start booking revenue for the star warsrelated products. Star wars touches in studio, lighting, and theme parks long term. It could be something that generated 1 1. 5 billion to 2 billion. Then you look at the sequel next year, rogue one. If this mean does well, youll take up your estimates for the sequel. Spiderman went through 100 million of licensing fees when spiderman came out. This is really more than that. You look at shanghai and star wars attractions in the theme parks. The half of disney thats not in tv should be in a very good growth trajectory over the next few years as all of this ramps up. Viacom was up but now theres a back and forthbetween Sumner Redstone and imam weemanuelle h theres going to be a lot of focus on viacom. Theres a lot to bemate made. I think theres going to be a lot of pressure from a lot of Different Directions to see that realized. So i think viacom, kind of at the opposite end of the spectrum for disney is interesting at this point right now. Barton, were going to leave it right there. Coming up, weve got to much more on retail on this black friday. Holiday spending. The dow is down 44 points. S p 500 down 2 points, pretty much flat. Well be right back. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. 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. Im carl kin ta nkne quintanilla along with sara ice never and jeff f. We keep an eye on oil. Our roadmap starts with deals, deals, and more deals. Online and in stores foot traffic is good but not a great. Thats how analysts are describing black nid free tail sales. And vads mir putin says hell cooperate but the war of words continues. And the lawsuit. More of what it means for viacom cbs and redstones response. We start, of course, with black friday. Lets start with Courtney Reagan live at Woodfield Mall outside of chicago. Courtney. Reporter good morning. I the lull appears to be over. I see families walking out with bags. That Millennial Shopper is still growing strong and thats the shopper we receive all night long. They come out for the deals, but its also the experience and the tradition. Take a listen. What are you shopping for . Clothes, good deals, sweaters, jeans, socks, jewelry, purses. Ive got teenage girls at home. ve been shopping for others for christmas because i want to get my Christmas Shopping done, but ive also been shopping for myself because id love some new clothes. Now theyre checking out shopping malls as well as big box retailers around the country and he does characterize the traffic as lighter than what hes seen in years past but he does note many of the retailers are holding the door buffeter specials for longer with more inventory as well as offering them online hours earlier than in the store, which could explain some of the different traffic patterns were seeing this year. Piper jaffray calls out higher ploegsal levels on footwear, particularly calling out under armour and Decker Company which owns ugg. Ralph lauren merchandising as well. When it comes to google trending, walmarts blackflie fy 2015 is hire. After that, statements. Then kmart. When it comes to the social conversation. Macys and walmart took a lot of the share yesterday in part because of the macys thanksgiving parade and a tweet by the boy band. Then amazon started to take over the conversation and continues they this morning. Target is, though, number two, when it comes to social conversation. Kate spade getting 24 of the conversation on twitter or facebook and thats among the 30 top lifestyle figures. So a lot of kircht things going on. But i have to say the traffic looks pretty good. 100 million americans are expected to shop. Back to you. Yeah. Still early in the day, too, court. Thank you very much. Our Courtney Reagan. Disney, the biggest loser, dow down 3 after merchandising from the Star Wars Film expected to bring in anywhere from 3 billion to 5 billion alone. Our jane wells is live in san mateo, california, with more on that. Hey, jane. Reporter well, the force is strong with disney, maybe not in the market but in the stores. Weve been trying to figure out the comparison between disneys frozen a year ago. Disney on its Conference Call said Merchandise Sales up due to olaf. If youre talk 3g billion to 5 billion, that is a lot of money. As for the licensees, the biggest winner is going to be hasbro. Theyre expecting to gain market share and earlier this year hasbro was saying after they were already starting to run short of items. But even mattel. You know, mattel you would think would be the loser in all of this. Not necessarily because of its hot wheels decision. Mattel could do very well. Then, of course, the privately held lego. You know what, carl, heres the funny thing. You know, its all about stall wars. Heres a toys r us. Youd be surprised what kind of look it. They have plush toys for the kwauking dead, a daryl dixon plush toy. I may have to buy it. Back to you. Yes, you will. Jane, you know, weve heard so much from retailers this season trying to make sure they have all of the skus in stock. Is it your sense there are enough of these things for the people who get there in time . Reporter well, there certainly very this morning. I have to tell you its a whole story of what black friday is and isnt anymore. Last night at this particular store they were open from 5 00 to midnight. They said about 150 customers came in, 60,000 dlors worth of business. That was three times more than wednesday. When we got here this morning, dead, dead, dead, but right now theyre having door busters and traffic is picking up again. Black friday ive worked it many times. This may be the beginning of the end of the oh, my gosh, weve go tot get there in the morning because its just not the same thing now. Thats a good point. People who still go are actually this is just their thing, right . I think this is what were getting a sense of this time around. Jane wells in san mateo. Thanks 678 for more on black friday shopping and thing lets brim in james oshea. Good to see you both. Good morning. Thank you. Oliver, i think youve got estimates on what mall traffic will do and online traf look do, right . Yeah. Were thinking mall traffic will be down in the 2 to 3 range. Keep in mind this is a big mobile holiday. Mobile phone usage is growing at 40 to 50 and that could be about 20 of all of online sales. Its a big thing for consumers to have this real convenience factor with online being a big deal. So electronic sales are strong, charles . Just thinking off janes report that toys kbould a strot category not just as star wars was up. The birth rate went up for the first time in 2011. So analysts say the infant toy selection could be strong. Who could that help . . It helps. I think there are significant tailwinds that will benefit from it. We think for all intents and purposes it kicked off when they went deep on promotion for the Star Wars Toy launch and that momentum will probably be restarting given that the movies relaunching in a few weeks. Oliver, the toy thing is simple to keep track of. I saw a statistic today that the prices are up 30 as more tech is integrated into some of these things. Do you think thats been priced into some of these names . I do think toys is a big idea. The name we do like is target. What i would say about target, 15 of their toys assortment is proprietary to target. So theres upside opportunity. Youre right. The integration of electronics and wearables and the toys, its a big factor. So that will be exciting. Another name we like is costco. Costco always has a compelling toy selection as well. Were very happy with what we receive at target. We also like what weve seen seen with the apple watch and ipad as well as some of the invasion theyre doing in there. I guess, charles, the key question is how big are the promotion, whether youre a consumer or investor in these retail names. The other thing is what do o they do when they go out for the retails and door buster deals. Are retailers getting a bump from that as well . I think its important that people dont really go out and shop black friday, thanksgiving night. Theyre out to buy, and theyre out to buy the door busters. If someone picks off a full prize item, the retailer really wins big time there. But our view is you dont wait in line, you dont get away from your family, and you dont do the things you have to do to get to those stores on black friday and thanksgiving just to browse. Youre in there to buy and you know exactly what you want when you walk in the door. Oliver, sorry, i cut you auchlt but what were you going to say about this whole dichotomy about prices and promotions and whether it even matters whether retailers might have matters under promotion because theyre trying to capture market share and race for spending dollars. Yes, sara. Its a combination of both factors. The reality is weve had a warmer season this year. A lout of outerwear is on sale. When you think old navy and macys, there are deals. Youre right, sara. Adding convenience to the customer and gaining traffic share, you have to participate on this day and it does remain a really fun day especially for millennials. I agree with courtney. The mall is a great experience. But the mall is higher in terms of consumers looking for more and more screens. Sara, as you saw in the target press release, buying online and in the store is big as well as consumers are looking for convenient ways to get in and out of store sthoos this leads us to one of the existential debates. If you were ran osheas retailing, would you be fighting to establish a prime of your own, a Delivery Service of your own, or do you want these consumers to come to your door to get this stuff . I want both. Im a utopian. I want both. One of the things we focus on prime a lot is its not just Free Shipping but content. Thats one of the things we noticed yesterday, the discount on the basic tablet for amazon, the basic fire, is now down to 35. Thats pretty cheap to enter an ecosystem thats got a lot of content and amazon has spent a lot of money on content. We think thats the real gamechanger. Its not that hard to ship free. Its more difficult to develop a system. Weve seen with apple, it cost as lot of money but over time it cost as lot of money. Our feeling is you need to be in both. Brick and mortar and online. Theyre still 40 of retail sales. Makes online 7 if my math is correct. Brick and mortar arent going anywhere. I dont think Amazon Amazon doesnt need to go into brick and mortar but the brick and mortar guys need to be online. They dont have to be as good as amazon. Thats an unrealistic expectation. Would by my goal. If i ran osheas retail store, thats what i would do. Buy online, ship from the store. If you want to come into my brick and mortar store, thats a great. Thats a win for me and i can sell you more stuff. Were going to get out a lot of numbers. Shoppertrak, adobe, everything, 4 , 3 , 2 , what numbers are we going to beadlast year in terms of Holiday Spending . Im thinking 2 to 3 growth. Its a little less than last year. Cautious optimism. Better than last year but still not extremely exciting, 2 to 3 . So thats what im thinking overall. Guys, thanks so much for that. Interesting insight. Charles oshea and oliver chen. Coming up, Francois Hollande visiting moscow as he continues his campaign for a coalition between russian and syria. Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. It means another neighbor is going to sleep better tonight because they went to sleep trains ticket to tempurpedic event. Through thanksgiving weekend, save up to 300 on the cooling comfort of tempurbreeze. Plus, get up to 4 years interest free financing. Sleep risk free with sleep trains money back guarantee, and of course, same day delivery. Are you next . Sleep trains ticket to tempurpedic event ends sunday. Your ticket to a better nights sleep Vladimir Putin hosting saying russia is ready to more broadly coordinate its military action in syria with itself u. S. Led coalition but he rep t repeated his attacks against turkey. Our Geoff Cutmore has more. Geoff, once again. Reporter hi, carl. Lets just deal with this issue of the downing of the russian bomber. You know, both sides in this issue said they didnt want to escalate the situation, but the language thats been used over the last day or so has only done that first at that press conference after the meeting of president hollande and putin. He used the occasion to suggest that turkey was taking oil from the isis terrorist group and also said they knew it was a russian bomber they were going to shoot down. President erdogan said russia shouldnt play with fire making these allegations and in turn has suggested its russias ally syria thats taking isis oil. So the spat continues over what happened and why this russian bomber was shot down on the turkish border. The language remains very undiplomatic. As we understand it at this hour, a request has been made for a meeting on monday. The turks requesting a sitdown with president s erdogan and putin. Well just have to see whether that takes place. But lets just roll back to that other very important issue. President hollande of france came here, sate sat down for three hours with president putin, and afterward there did a pier to have been progress made in targeting isis. Three key points here. One, they would extend the terrorist targets and they would make extra efforts to make sure they were targeting the isis group and not other groups that are fighting bashar al. Back to you. Brigadier general mark hemet. Good to see you again. Thank you. Where does this go. The kremlin taking economic sanctions actions. What happens next between these two countries and how far and how ugly does that relationship get . Well, my sensing is that well get through this war of words in a very short order. The fact is turkey has nothing to gain by going up against russia. Russia really has nothing to gain by cutting economic ties with turkey. I would expect in the near term this will come together and well focus on the most important aspect which is trying to defeat isil. Does it mean anything beyond just words . What does that support actually look like because as it stands theyre going about their own air strike campaign. What i think this does is, in fact, bring that air campaign being conducted by russia in line with the 65member coalition so that they can work on a common effort. But i remain concerned that while were bringing a military effort to defeat isil is going to take far more work than beyond the military aspect. Its going to take work in many other areas. They enjoy pretty good support. Today theyre two leaders who cannot afford to be seen or be pushed around no matter how high the steaks. How high does that play out especially if they meet in paris in december . Well, both of them are appearing to their publics. Erdogan is trying to show hes tough on foreign intervention and people in hiss airspace. Hes lost a lot of public support in the last few months but this has pushed his numbers up. Putin as well, every time he shows that hes tough, he gets Greater Public support. So i think both of these leaders are pandering for public support within their own country, but in the foreign relations, i think everybody understands that theyre going to have to talk tough at home but scope down in their diplomatic activities. Whats your prediction as to how ba share al assad is dealt with in syria between russia and the west, which continues to have stark disagreement about whether or not he should remain in power . At this point i think its an issue of timing rather than an issue of fundamental differences. I believe the United States finally realizes that this tough assad must go now policy is not working and what we ought to be focused on is a long run transition that eventually assad will go. He wont live forever. He will go. He doesnt need to be a prerequisite, but that that is the target in the short term. Thank you for joining us today and your insight on these issues. General mark kimmitt. Coming up, the retail sales who need a strong holiday. Bill george weiing in on the retailers in the hot seat and twhoes are the rising stars. Thats all coming up in squawk on the street. Not a particularly good day for media. This because of disneys 10k. Now, we had Barton Crockett on, an analyst last hour who said, people knew this. We knew where the numbers were. Nielsen numbers. Nonetheless the market does seem to be reacting to that number, down 7 million as it is from a couple of years back, carl. Meantime black friday has become one of the biggest sales seasons of the year for the auto industry. Our own phil lebeau is live at a dealership in suburban chicago as who is profiting the most. Hey, phil. Hi, carl. Who ice profiting. Clearly the automakers. Were looking at a sales rate that could top 18 million for a Third Straight month. We went to a number of dealerships over the last several days, talked about what theyre excelling, what theyre sealing. Almost all of them expected it to be rather brisk business over the next couple of days, taking advantage of today and tomorrow, people having a chance to walk around showrooms. On average the average insenty for the industry is going to be about 3,100 off with the transactions prices going up more than 1,000. Theyre going offset by paying a little more and by packaging the dealing in a much better way. Theres a lot of set pricing. 20 off msrp, fords friends and Neighbors Program with the no haggle price. People dont have a lot of time. If you package your deal in an easytounderstand quick manner, its going resonate well with consumers, which weve seen. We talk about how trucks and vans are in demand. This is the expectation in terms of sales this month. Donees in saevls. The reason that those are in demand in addition to all of the other factors we talked about with the economy, look at the price of gas. Its down at about 2. 05. Jackie deangelis talking about more than half selling it for under 2. People are coming into the showrooms saying, hmm, id like an suv. Thats whats going to be selling today. Phil, theres this debate and it sounds like you would come down as not seeing the end of surge and seeing. This is a debate about whether were at the peak of auto sales because its been so strong for essentially months. Mmhmm. Stronger than expected, sara. Most see we could see sales edge a little bit higher next year but were pretty close to the peak in terms of this auto cycle. The real question is how much will we be seeing. If its 16. 5 or 17 million, that would be a reasonable pullback. If its greater than that, thats the concern that you hear right now from investors saying were at the top. How much will it pull back over the next 18 months. Good question. Well have to see. Thank you very much. Phil lebeau live on the auto story. Up next, bill george weighing in on the winners and losers and which ceos are going to be the winners this Holiday Season. Well be right back with squawk on the street. All right. Im Tyler Mathisen and here is your cnbc news update at this hour. Paris holding its first formal gathering since the november 13th terror attack. French president fran swal hollande. They gathered inside a courtyard at the French National monument. Air traffic growth is expected to grow over the next two decades. They blame a weaker global economy, and chinas economic slowdown. Despite the new forecast, the group still says china will overtake the u. S. As the Worlds Largest passenger market by 2029. Authorities blame a tainted celery and onion mix for a multistate e. Coli outbreak. It was used in costcos Chicken Salad and sickened at least 19 people. They stopped selling it and no deaths were reported. Montana makes the news for having the worst drivers yes in the country. A Car Insurance group finds that montana ranks tops for speeding, sixth for careless driving, and eighth for failure to obey traffic rules. Who came in second . South carolina and new mexico. They were tied. Where was new jersey in this . Thats your cnbc news update. Back to you. You sound like you speak from experience, ty. Tyler mathisen, thanks a lot. Take a listen. Weve nounsed that were actually going to be closing more store this next year because as the internet, you know, has become so strong for us, consumers are looking at their options, determining where theyre going to shop, and they dont have to have that immediate convenience of going to the store next door. Theyll drive a little bit further and theyll also know that well deliver it to them in a very short period of time. I think when you put all those options together, were able to say we dont need 800 locations across the country. We can have fewer than that. Thats kind of how we rationalized it. Bill george is a cnbc contributor. Bill, its good to have you back. Thanks, carl. Youve got a list of ceos under you. Terrys one of them. Yes. Why . This is the second year in decline of stores. I was under hudson Department Stores to macys and target. I can tell you theyre losing the millennials and the gen xers, and theyre losing out online and they dont have any presence anymore in the loernld. Is this is end of a lime time of brand of retail . I think its tough. Nordstroms is holding its own. Neiman marcus and sax are pulling back from a national expansion. Theyre getting there. Macys got a tough time. You heard him say theyre going to close stores. I they thats going to continue. Too much space too, many malls. People dont want go to the malls. I guess the hard part to figure out with this and especially for ta team like macys which is known to have best in class management with terry and others. Theyve been there for a while and theyre considered by investors topnotch. How much is it an execution problem with management where they cant figure out how to get out of the slump and how much is it the secular change in getting out of it. Its clearly secular but thats a strategic problem. I think terrys done a good job the last ten, 12 years. Every decade or five years you have to adapt. You see the way Howard Schultz has done that. Is anyone in the Department Store industry doing it . I think nordstroms is holding its own at the high end. Youve got to pick your niche. Youve got to find where youre going to fit. Speaking of adapting, the other two on your list are mcmillan and lambert. Yeah. What does mcmillan have to do . . Hes an outstanding ceo. I much like mcdonald, theyre losing out on the low end to dollar general, to costco on sams club and amazon and online. They havent got it figured out. I eats going to take a along time to get that fully up to speed. Isnt he doing exactly what you would expect him to do . Hes got t have the tomb do it and he does have the patience of his largest sharehold which for himhealto family. I think he deserves it. I think its a three to fiveyear turnaround. Hes a good guy, firstclass ceo. Another guy is Eddie Lambert from series. We follow that. Sears kmart over the years. Hard to imagine what he can do given what he has done. Unlike mcmilan and lundgren, hes not retailer. Hes a financier and real estate guy and keeps trying to sell off the re, what good is the real estate if its underneath a mall store which is declining or a mega city store which they cant figure out what to do with it. That real estate, in my opinion, not very valuable. I think sears is they passed the point of no return a decade ago. I dont see them ever coming back. No one i know shop there. In fact, students laugh at me. They laugh at me. They go to home depot and target and mother and baby and get their home equipment at home depot. Theyre not going. We talk about large didnt stores but some of the worst performers so far this year are ralph lauren, gap, michael kors at the very bottom of the list. Does this speak to issues or not much ingenuity when it comes to changing it . Its a little like the social media field. Theyve got to keep changing. Theyre not keeping up. This millennial change, sara, is having a dramatic impact and people havent figured it out yet. I think Brian Cornell is doing the best job with the retail online. Hes on top of it and hes getting there. But i can tell you a lot of these clothing retailers havent figured out the trend changing and they even got to get trend four. If youre not trend forward today, youre behind. You cant hang with the old crowd. Thats where the action is. As nike hit as record high right now. How about under armour. Thats why its hot. Therell be more. There will be more. Bill, its good to have your insight. Thanks for having me here. Thank you so much. Good to see you. When we come back on this black friday, were live at the biggest mall of n the country. The top searl this year at the mall of america. Plus, a rough day for media as weve been talking about all morning. Time warner and disney leading the way lower. A lot more on that in just a moment. 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Because the time to think about tomorrow. Is today. Go long. Thats ll ll ll lly largely bec disney. We had analysts on earlier who said, we knew the numbers. Nonetheless its pressuring media broadly. Of course, the continued concerner cord cutting, cord shaving, people simply not having as many connections via cable and, therefore, not as many subscribers. This is after a woman named emanunuelle herzer filed a lawsuit, if you will, claiming the shareholder is not well enough to actually dictate his own health care procedures, if you will. Today or actually over lets call it the last 24 hours his legal time has fired back with a counter argument and counter claim. They also have a statement out saying that they see that action is meritless, riddled with lies and a despicable invasion of his privacy saying that herzer will stop at nothing to pursue her own personal agenda. They say its preposterous. Of course, people are focused the health of mr. Redstone. It is interesting to know emannuelle herzer was his Health Care Agent and shes now been replaced in that duty by Philippe Dauman. Im not sure if thats something you want. It does sort of have an interesting dynamic. This is not going to end here. Were going to see some backandforth, one would expect. The judge may at least have a preliminary hearing in the nottoodistant future. For his part, redstone says hes perfectly capable of carrying out the duties as chairman at this point. There is an irrevocable trust. Seven employees, not his family, who will oversee the voting shares, the controlling stakes and National Amusement that theyll see upon his death. Of course, everything getting looked at. They report he hasnt been on a Conference Call so far this year. I mean hes in his 90s. Hes 92. Perhaps even older. Maybe 94. He is in declining health, theres no question about that. And they make in their statements his attorneys dont mistake that as well talking about his speech being impacted, his mobility, of course, being impacted. But for his mental state, they say hes perfectly capable of administering his own care. If hes not able to, Philippe Dauman will carry on. Black friday shopping continues. To find out what some of the top searls are this year, lets bring in jill renslow, the Senior Vice President of marketing and development at mall of measure. Jill, where are the biggest lines today . Good morning. Its a very energetic morning. We started at 6 00 last night and its going strong. Lots of traffic, lots of shopping bags, lots of energy. Its been fantastic. Would you say its stronger than last time this year or about the same or worse . Were trending very similar to last year. The numbers pick up as we build momentum on black friday, but very similar to last year. With the short Holiday Season were seeing a great deals early on and shoppers are taking advantage. A lot of shopping bags in the property. Im looking at the directory here of some of your major anchor Department Stores as theyre calling it. We were having a conversation with bill george from Harvard University talking about them being under praerchl looks like you have sears and macys, both of which have been struggling this year. Has that hurt overall mall traffic . It hasnt hurt overall mall traffic. Whats a great is we have over 500 stores and dining and attractions. Were seeing a lot of a great traffic for all of our other traffic. Theres this story about mall traffic getting smaller and smaller, the demise of the american shopping mall. Obviously mall of america is a big case because its such a tourist destination. How would you review some of the reports and claims that people just arent going to malls anymore . You know what . There oohs a lot of options for shopping. But you know what . Mall of america takes advantage of the digital capents and we enhance the physical experience. Whats unique is we have the benefit of having more than just shopping. It is about entertainment and attractions. You can see behind me, for example, were making it snow inside mall of marek. Its a twitter activated blizzard. People can help make it snow. Were also looking for new innovative ways to make it fun and exciting. Maybe that will do snog deal with some of retailers problems. Theyre dealing with warm weather. I did want to ask you about security. Have you done anything in the wake of recent paris attacks to ramp up security at mall of america . Yes. We recognize consumers are concerned with whats happening with convenience internationally, and security and safety is our number one priority. So consumers are going to see enhanced presence. Its normal for us to amp up security during the Holiday Season. You know, we want to make sure people know theres going to be more security presence as well as police officers. We want to keep everyone feeling safe. Jill renslow, thanks for the report from mall of america where there is fake snow today. Thanks for joining us. Thank you so much. Over 100 Million People expected to go shopping on this black friday shopping but will there be more. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. One of the biggest shopping days of the year is under way. With customers looking for great deals on everything from electronics to furniture. Joining us here at post 9 is ethan allens president and chairman and ceo. We want to ask you about black friday shopping. But we should mention whats been going on with your company. And you just won a big activist battle for places on the board. Is this a big victory for you . Well, you know were very gratified that our stockholders overwhelmingly voted. Jim cramer, but we brought it on his show a few months back that one of the hedge funds said ethan allen is a Great Company because we own a lot of properties and perhaps we could sell the properties and do a, thats not our business. Youre talking about sandal Asset Management with a push to put yourself up for sale. Theyll continue to be active and scrutinize your business, have you talked to them since the vote . They were there at the annual meeting. And were very happy to have shareholders have their points made aware. Wean bn around for 82 years and weve been profitable for 82 years. And the reason is because we have always remained relevant. And thats what ethan allens story is all about. As long as youre relevant, you no, all shareholders have a point of view. As i said im very gratified that overwhelmingly our stockholders supported our slate and all the proposals that we had. One of the criticism and i think this gets into your business, is that Restoration Hardware has come up and grown 20 Revenue Growth versus what youre seeing what are they doing right in your industry. We are vertically integrated company. We are an interior design company. Were 1500 interior designers, 200 Design Centers in north america, 100 outside. And about five years back, when you look at Restoration Hardware. Three or four years back, we had to make a decision. Should we maintain our interior design strategy or should we go and develop an import model . Give up all our manufacturing, by products from lets say offshelf, bring them in, large quantities and had sell them. If we had done that, our sales would go up and we said no. We have to think long term, we consolidated from 30 manufacturing plants in north america to six. We built two in the last six years. We have 200 Design Centers, which are close to about 70 of where our customers live. Our strategy was to reposition ourselves. In our manufacturing. We built two new plants, one in mexico and one in honduras in the last six years. That required us to make sure that before we turned the engine, the switch, which we did in october, october our sales were up 33 . Our written orders. Because of the fact that we also are ready with our offerings. We are maintaining 70 of Product Offerings and september and october which i always come in here you wouldnt want to leave that. This is for you. This is our november directmail magazine. Which showed products have just been introduced in september and october. And we turned the switch, amazing results, now were seeing the benefit of what weve done in the last five years. Throughout this period we have been very profitable. 55 gross margin. 11 operating margin. The highest in our industry. Yes, our stock price has not reflected that. But you know, i think what we are doing now, i believe that the stock price as a result of being positioned right and we are positioned right. One question on the macro, ive seen some analysis in the past few days arguing that household formation is in the midst of a breakout. Above 1 million for five quarters or Something Like that is that true, are people finally moving out of their moms basement . Its overall it is positive. Yet people are still concerned. Lets face it today people are concerned about whats taking place internationally. People are concerned about whats happening domestically. So people are cautious. For us thats good news. Because it also means that people are cautious, they believe in great quality. Overall, Consumer Confidence is better. Household formations are better. Having said all of those things, you still somewhat cautious. How much business are you doing online . Our Business Online is relatively small, because our 90 of the people who coming into our Design Centers visit our website. In fact this, were black friday, black friday, we did something whoops, hold on. It happens. Just here, anyway. Black friday. In, in black friday, what we did this time is, we just loose, right . Ill fix it. Welcome to our lives. Not ethan allen quality. Now with black friday, we just do something amazing. We said coming to our Design Centers, meet a designer and youll get 30 off one item. Think of that. Around you have 30, 40, 60, 70 . People dont know what kind of sales youre having. Weve had amazing results. But you have to go instore to do it. We want them to. The thats what were talking about the fact of bringing them into the stores. Not only were increasing our ecommerce business. When they come in they meet a designer and the process starts. A different strategy, farooq, thank you for coming on, the ceo of ethan allen. When we come back, live inside ebays black friday war room. What they see. And media having a tough day, viacom and disney trading lower. Disney leading the dow close to the lows of the session. Well check in with kara swisher in a moment. Good friday morning, it is 8 00 a. M. At disney headquarters in burbank, california. 11 00 a. M. On wall street and squawk alley is live. Good friday morning, john and kayla out today. But sara sizen en isen is pullg shift. It is black friday, and we want to get a closer look at what Tech Companies are watching today. Our josh lipton is live at ebays war room in san jose with more. Good morning, josh. Good morning, carl, im here with carl lawton, he is ebays head of north america, thank you for joining us. We were here earl