Spending. Then Consumer Sentiment. We will hear from bill dudley along with eric rosengren. Est, Esther George told an audience the size of the michelle taper may not matter all that much. She argues that the key thing is the clarity with which the fed communicates about where its policies are heading. Maybe not surprising, 10 billion, 15 billion, as long as they get it started, thats what the market will be watching. Say something yesterday, becky, that someone predicted it will be next year and it will be the next chairperson in the fed that starts the tapering. Did you see that . Theres only two meetings left. It was october and december, youre right. Is bernanke going to on be in a position where he did it someone said it yesterday, itself his prediction is that nothing happens until theres a new fed person. Because they tied it to Economic Conditions, i think it would be difficult to say that Economic Conditions have changed all that drastically in a month or two. You know a week from today is, again, an unemployment report. Were back to jobs friday again. Arent we in a week . Isnt it october youre right. Time is flying. It is going a 30day september, right . October 1st is andrew is the calendar guy. Well talk to him in a moment and confirm next week is october. True. In korcht news, jcpenney announcing a Public Offering of up to 96. 6 million shares. The move will massively dilute current shareholders is what why the stock was weak yesterday. The retailer didnt disclose the price in which it plans to sell the shares. Fortunately when youre, you know, either rumored to be selling or then actually confirming it, and you were going to sell it for less than expected. Another Embattled Company in the news this morning, blackberry. They will post Quarterly Results at about 7 00 eastern, but it canceled its conference call. What . Are you kidding me . Yeah. There could be a lot of different reasons. This doesnt necessarily it doesnt necessarily mean that just leave us alone. You know . Yesterday sprint said its going to take a wait and see approach on blackberry. Not immediately following what tmobile did with its smaller rival. You know we talked about this yesterday. Tmobile announced it no longer plans to stock blackberrys in its stores. In the stores, yeah. Online, you can still buy it. You can . Im holding on to that. I was kidding yesterday when i said theyre going to turn off your phone some day. I dont know. Theyre not planning on making conzoomer surprises any more. They run all the servers that carry the messages. Yeah. Theres still u. S. Government really . Yeah. The u. S. Government still uses them. If we shut down the u. S. Government, then they can shut down october. Think about whats happening in october. Okay. Obama care, did you see the journal . And then the individual and the Government Shutdown and all the previous but youve got all the previous crash anniversaries in october, too. The 17th, 19th. And theyre all i dont know. Its a cool month. Alibaba, the top shareholders are backing the companys corporate issue. Trade over whether the commerce e thegiant. They failed to convince regulators which would need to wave listing rules. This could mean the ipo will happen in the u. S. Instead of over there. In some other stock news, as well, mikey posting betterthanexpected earnings after the close. This is a newly minted dow component. Enjoy big games in north american to fewer rivals. That is an alltime high for nike. Nice. And thats going to add some nice points. Is the dow indicated higher this morning . It must be, huh . Its not going to be enough. Futures are down. Its amazing. You look at google yesterday . No. Its the 15th anniversary and they got like a birthday cake. Its not about somebody else. Its not someone elses 192nd anniversary of the person that designed some pendulum that figured out how the earth rotates. Its cute. Yeah, its kind of cute. Theyre cute figures there. They have the eyes. Ow, you can hit thats cute. You can mac it hit the pinata when you do that. An i. T. And management consulting, the company says it is too early to say if the Fourth Quarter of accenture is growing with its consulting business, if thats sustainable. Its raising its Cash Dividend by 60 . Its announcing a 5 billion buyback. Joe, listen you, Smithfield Foods has completed its sales to a chinese company. It is the largest company, valued at about 1. 7 million. We knew this was happening and thou it is official. Yeah. Asleep on the job. Remember when the montgomery inn those people are from canada. Really. Yeah. Theyre good. So would dodge that yeah, yeah. The debate. I miss andrew for this reason. Well, for a lot of reasons. Hes with me. Oh, he is . Im right here. Im right here. Hey, partner. I know it. I know it. Did you see the wall street journals lead editorial . I did. I did. This is because he didnt toe the line. Im barely a democrat. Remember when he said that . And then you add in that its wamu and bear stearns, which they were arm twisted to buy in the first place and its unbelievable. Jamie dimon is on the cover of all the newspapers today. A meeting with eric holder in washington yesterday. The two are said to have discussed a multibillion dollar mortgage settlement. They turn down three. Support verse reportedly urged the bank to raise its offer now theyre saying of a 7 billion fine. And then add in 4 billion in relief for struggling homeowners and that would add up to 111 billion, which the bank okayed, sorkin, right . But is this punitive . Tell us what you really think. I really think were almost at extortion levels. I dont get it. Im saying it right here. I cant imagine whats going on. And when you look at the numbers, they dont make any sense any more. Now were in totally punitive territory. I dont know if its political. I think its the way he approached the regulators and all the credibility that seemed to get lost during the london whale and now the opportunity that seems to be on the table and the public angst. Makeup looks good today, doesnt it . You look good today. Thank you. Its either the lighting or the theres a whole team of people. Oh, here it is, sorkins sweater of the month. But you have a look around your eyes and stuff. Its very appealing. Its sort of the oprah battle ra walters things they do. Theres a little vaseline on the lens. And we also needed you earlier about youre the calendar guy from yesterday. I am. You could be a calendar guy, but i meant the calendar its jobs friday next friday. Next friday is the day. So we can start picking numbers now if youd like. Because we were talking about maybe they dont taper until theres a new fed chairperson in there. And i say chairperson because we know who it is probably going to be. Im going to give you a little tease because i have a lot to talk about today here in nantucket. And i should tell you that i saw our good friend Larry Summers drop named at david rubin steins house. A lot of people here for the program. Theres a lot of interesting tidbits that i picked up. What did larry have to say . I wanted larry here in nantucket. My yacht is right over there behind us. Were going to believe you. I know. Is it a yacht big enough for your helicopter to land on . The landing pad is they have one of those. They do. You know who is also here, by the way . Who . Ees not here, but kenny victor is up transporting all kinds of people back and forth for this whole thing. Its sponsored up the ga zoo. Im drinking nantucket nectars. Did larry say anything to you, youre standing in my way or no. He said thank you. Did he know we were backing him . He does. He does. And i think the issue about coming on this morning or frankly coming on tv at all rye now snae feels uncomfortable given sort of whats in the mix. I think we will see larry. Hes waiting for the next person to make their way. Bob diamond will be on. Did he send us that shot . If i ever need a shot of me, im going to send one like that. The collar is up. He looks so dapper, right . And british. Very british. So he is going to be here and were going to talk about get an oped in the Financial Times two weeks ago. Talked to him last night well alan swartz coming up in the 8 00 hour. Did did a thang, people were approaching in all different ways last night in debating what the solutions were. He spent a lot more time talking about the problem than the solution. Even mayor bloomberg made a comment the other day about the bellagio saying youre too focused on equal outcomes. You have to focus on equal opportunity. Then it all works out. Someone asked bill gates, why did you do control alt delete . He said oh, all right, it was a mistake. It was a great line. I told david he has a career in interviewing people. I think he might. Flower line of work if he ever wants to give up on the other stuff. But what is cool about davids house is he collects all these famous documents. Pretty neat. This nantucket conference attracting the likes of Larry Summers, andrew ross sorkin, gorbachev, pope francis. Not pope francis. I swear it started out with gore bachev and im andrew ross sorkin. Im like, is there another it was a mistake. No. It was a mistake. But no, theres a lot of interesting people here. We talked to meredith whitney. And, of course, that is by the way the discussion here. And most people feel a little bit around about this extortion thing. But i will say one thing to point out, 20 billion, thats actually what jpmorgan has spent on legal fines between 2010 and 2012. 20 million . 20 billion in total. If this 11 billion minimum goes through, it will be 20 billion in total. While theres a lot ooh people here who are thinks friends and his supporters, a lot of people say at some point if youre the board, this gets very complicated. And perhaps the reason he still has his job is the fact that there isnt anybody waiting in the wings. The classic thing is, the government, which was so worried about the whale somehow hurting depositors or shareholders because it was 5 billion, theyre cracking on 20 billion. They dont seem to beered worried about the shareholders and the depositors with the extorting thats your word. Its my word. Were late somehow. Sorry. Ill see you after the break. Again, andrew is in nantucket. Hes going be reporting there live throughout the morning. Right now, its time for the Global Markets report. Karen tso is standing by in london. Good morning. Good morning, becky. A bit too much politics for investors across these markets. There is prod based selling across these markets. We have the the Government Shutdown in the states. This has caused investors to be somewhat in europe. But adding that we might be more concerned about functions across the periphery. This is a typical eurozone story. And it seems as though the threats that the coalition in italy might break down. The former Prime Minister was tossed out of. We switch over charts to the individual indices, you can see particularly in the italian market, this is softer today, but the selling has accelerated throughout the morning session. Now to is the 0. 8 . Basic resources is seeing some of the selling, but also some of those peripheral bank stocks, as well. Let me show you whats playing out on Government Debt markets. Treasuries, 2. 63 . And a credit default stock market could rise to its highest level in four months. The italian market has been interesting today. We had a debt auction out there. Slight pick up in action because of this. The cdf market is spinning at the most, a fiveyear credit default has risen to the highest level since july. This is how it plays. The twos, creeping towards that 3 mark on italy. Let me send it back to you, becky and joe. Karen, thank you very much. Markets avoiding a sixday losing streak. Ended modestly higher yesterday. About 535 points. Joining us now is chris johnon, director of research at jk investment group. Yesterday, chris, ill tell you something i was thinking was i felt like we had really had a poor showing after that first day with when they didnt taper. Its like wow, why would stocks ever go up again given that we had our good news about no taper and we cant expect earnings, really, to be that great with this economy. But they did manage to close higher. But were still off the highs. Yeah. For me, its kind of rung out some of my positive feelings and were still at pretty high levels. So maybe its doing what its supposed to do. Is the market setting itself up for another leg up or do you think weve got this correction finally in the works . No, i think we familiar into that correction territory. You do . Yeah. If you look at it, the marker, even though it did find its way to get back up to those highs again. Its on a fewer number of stocks. If you compare it to the highs we saw earlier this summer. So its a technically tired market. And when you combine the fact that were heading into the earnings season, weve seen the expectations be halved since last earnings season. But again, look out into december and Fourth Quarter and you still have expectations that are up in the 10 , 11 range. Companies are going to have to start reigning those in. I dont think were going to see that growth here despite whatever cuts we said in between the lines. So yeah, i think were setting up for that weakness, that seasonal october volatility. But i think its going to be a buying opportunity as we head into that powerful, seasonal period of the year, october, november, december. Sometimes its good when the expectations come down before the actual numbers come out, right . Right. Absolutely. Its like sending your kid off to school and saying, hey, im going to be happy if you get fs or ds and when they bring home bs or cs, youre going to go out and celebrate. This is one of those things where expectations have come down and its going to be easier. The level has the lowest expectations with the materials sectors. Thats one of the sectors thats been doing very well here right now. Keep an eye on that as we head into the earnings season. All in all, i think youre going to see that volatility in october. You mentioned earlier, its a very volatile month. But overall historically, its typically the kickoff of that very, very strong period. Really. I had no idea that this was overall a really positive month. Oh, yeah, absolutely. It is that month where you see the bottoms formed, becky, but that is what i think people, especially right now are looking for. There is still so much cash on the sidelines that people are clamoring to get into this market. Guys, polls here over the last couple of days theyve shown that. Steve liesman has been talking about. It goes with that idea we talk about markets rallying in four stages. The first stage is despair and thats when your market hits the bottom. Second is disbelief. Weve kind of gone through that here. The next step and this is very important is acceptance. And thats where you see the Retail Investors start to get more involved with the markets and i think were far from that euphoria stage that typically marks market tops. So, again, id look for not only the market money coming in from the sidelines for cash, but remember, those people who are sitting in bonds right now who kind of got smacked around in may, june, july when rates were going up, theyre getting a little reprieve right now. Theyre feeling better because the value of those funds is going up a little bit. They may take the opportunity to move some of those monies into equities now. All right. Youve had montgomery and ribs, huh . Come on, joe, i was thinking you might be more hometown and talk about priceville chili or something. Thats as good as skyline or gold star. Glennway and cleve warsaw. Thats not necessarily the ride side of the tracks. No, no. Im not wishing im from mt. Lookout or high park. Im comfortable being from western hills. Im fine. All right. Hey, what are you calling the reds weekend, joe . Big series. I didnt like losing 10 to the mets and theyre four games back. I didnt see what happened yesterday. They werent playing yesterday. Theyve got best of three with pittsburgh this weekend. And if they win the wild card is here in cincinnati. Oh, good. Im going to hear from fratto on that, you know. You know where he lives. No. Titletown. That kills me, titletown, especially with the bengals, you know . Because thats no titletown is where were from. Thanks, chris. See you later, guys. When we come back, were going to talk about why you could soon be using Electronic Devices during your flights. But first, rivera officially saying goodbye to Yankees Stadium last night. He made an emotional exit. Derek jeter and andy pettit coming from the dugout toes remove him from the ninth inning where they had two outs. This is a loss to tampa bay, but thats not what the crowd was paying attention to last night. And in the thursday night game yeah. In the nfl, the San Francisco 49ers beating the rams in st. Louis last night, 3511. Colin kaepernick had a pair of touchdown passes for the 49ers who totaled just ten points in losing their previous two games. Right now as we head to a break, lets check on the National Weather forecast with the weather channels reynolds wolf. Reynolds, riding into the week ynd. Hey, exactly. A good looking forecast in parts of the northeast. Maybe not a grand slam, but at least a threerun shot. Looks good through parts of new york, boston, through portions of the ohio valley. Out to the west were seeing more snow. Rockies get a nice dusting yesterday. Today will be day two of that action. But into the weekend we go with a chance of showers, possibly storms across the central plains. No rain from the pacific northwest. Im telling you, the northeast will be amazing for you weatherwise. Now, in terms of the delays, nothing doing for you in atlanta or new york. But denver, possibly some scattered showers and some backups by mid day and into the afternoon. Hey, stick around. More squawk box coming up after this. Go to etrade and find out how much our advice and guidance costs. Spoiler alert its low. Its guidance on your terms, not ours. Etrade. Less for more for you. Time four our executive edge. The faa is considering relaxing rules on using electronics in flight. It could affect standards for apple, amazon, google and amazon. It could make it easier for airlines to let passengers influencing in their own electronics. That would allow air lines to save the way to providing screens for everyone. The faa is not consid