U. S. Market, especially the nonblue chips will work its way higher perhaps by 20 to 30 in the next year or more likely over two years with the rest of the world including emerging Market Equities covering even more ground in at least a partial catchup. But then he continues, we will have a series of of serious market busts since 1999 and presumably greenspan, bernanke, yellen, et al. Will help happy. And we the people, of course, will get what we deserve. Dow futures down by 11 points. S p futures off by 2. 25 points. It is worth pointing out that we have seen a super strong run since october 9th. Were going to continue to talk about the markets throughout the morning. But first, we heard to some of the mornings top corporate stories. Thanks, beck. I wish we could get someone to look at his recent comments. I cannot remember in recent years him predicting we would get this far. Hes always been pretty concerned, so i dont know. I dont know how to read that. We need someone to look in the last year and a half, two years, if hes ever said anything even remotely bullish. Home depot is remotely bullish. 95 cents versus expectations of 90 cents. On sales of 19. 5 billion, which was above 19. 182. I guess, you know, we look at this as a consumer play, but also a housing play and i think given what you were just talking about with the fed, you were thinking that home depot has been doing pretty well with zero Interest Rates and Mortgage Rates where they are. And when people well, when Mortgage Rates went up, was it going to impact their sales. And because the old story is if you dont need a buy a new house, youre still improving your old house. Which wasnt true. If you look back to 2009 and down to 20308 that would be my house, we dont improve as much as we should. When youre knocking out walls and when youre consolidating an entire floor of a huge building on the Upper West Side of manhattan, youre going to need some help with one day well be consolidating. The false modesty gets old. Home depot. This is pretty good. Comp saels for stores, 81. 56, the alltime high. U. S. Samestore sales up 8. 2 . And frank blake, hes been and he wears that bib. Its an apron. A bib is what you used to put on the twins. They dont wear bibs any more, right . They dont wear bibs. Its an apron. Thats my favorite shot. And he doesnt care that he looks like don knotts there. The langone just gurns about him and he doesnt gush about some of the other guys that were running it for a while. We need some aprons. Weve got those. Did you talk about the earnings already . 95 versus 90 . The estimate is up to what . 3. 72 is what theyre saying. And they already beat by a nickel, so that doesnt say much about the Fourth Quarter. If they take 3. 72 and they beat it by 5, so theyve got some money to play around with where they dont have to. We have those. They gave us those. I have one that says joe on it. I think michelle was in that day. Was she, really . Yeah. One of these days, ill wear it in. But thats all im going to wear. Ooh. Ooh. Dont turn around. Scary. I wont turn around. Ill face the camera. But the guys back there are going to have some serious problems. Jpmorgan, it is the big news. The 13 billion settlement between the Justice Department and jpmorgan expected to be announced today. Kate kelly is outside of headquarters in new york this morning. Good morning to you, kate. Good morning, andrew. So this landmark 13 billion settlement is expected to be announced as you said by the Justice Department later this morning. And im sure many more details to come. Weve obviously been expecting this agreement for about a month now. I think it was just a few weeks ago i was standing in this very spot after a number of exercises in brinksmanship, really, between the bank and the feds who were prepared to sue on at least two occasions i know of, but were called off of that by a phone call in one case from jamie dimon, later a meeting in washington, d. C. The settlement, of the 13 billion, 4 billion of that goes to the federal Housing Finance agency. That was previously announced. Another 4 or so billion goes to consumer relief. And that will take various forms. It will be reduction of rates in some cases, reduction of mortgage payments, maybe even a temporary holiday from paying mortgage payments and various other things directed to troubled homeowners. 2 billion of it is a built related to wrongdoing and thats a key point there. Jpmorgan, im told, will not submit that. But a passit admission of wrongdoing. Thats what were expecting to see. The balance goes to other Government Agencies involves, attorneys general in california and new york as well as Credit Unions that will see some of those fund. Thats the breakdown that we know of so far. Moreover, this is a landmark settlement as we said for the Justice Department. This is by far and away the largest regulatory fine we know of. Other recent examples are just in the low billions by comparison. I mean, you look at glaxosmithkline, you look at bp, of course, for the deep water horizon disaster a couple of years ago, theyre much smaller than this. Teen recent sac hedge Fund Settlement related to insider carry to carry the 1. 8 billion price tag, thats not even close to this 13 billion. So clearly, eric holder, the attorney general, you guys trying to send a tough message to wall street right on the east of expiration of their legal ability to bring some of these cases related to 2008. Thank you, kate. Appreciate that very much. Here is the one thing that im trying to figure out. Why did the board cave on this scic Washington Mutual issue . The receivership issue . Yeah. That to me was a crucial issue and by my reading of the language, they had a case. Well, i have a couple of theories on that. For one thing, i think jpmorgan felt they couldnt afford they could only go so far in challenging the government here. There is a still a criminal aspect to this case and a criminal indictment they think would be devastating. Whatever they could do to keep things smooth, and recent settlement on this face was crucial. The other point i would make is theres a bunch of civil litigation going on, including one case in particular that deals with similar issues between jpmorgan and other parties where they could end up potentially pursuing the funds youre talking about, which i think is just shy of 3 billion in a wamu receivership managed by the fdic. But its related to sour loans issued back in the day by Washington Mutual. Kate, the last question, we are now at about 17. 5 billion in total. Right . So we have the with jpmorgans payments . Correct. I think were closer to 20, but youre in the ballpark. Lets do this. Kate, were going to come back to you in a little bit. But in the meantime, were going to get to jacob frankel. Good morning to you. Good morning. So i guess we all knew this was coming, but it too so long. The devil is in the details. Both sides have to get this done. Theyve went on record saying they have this settlement and really it was about working it out. All the points that kate was addressing, those were the details. Ultimately, i think this was a litigateble and triable case. But the bank could not go down that route. Now i want you to look forward. What else is left . We have this other 100 billion of mortgages lying out there. Theres a number of issues, the criminal probe which kate alluded to. This is not over yet. Well, its not over yet. I dont think there is a real criminal probe because this case, the civil cases would not have been settled if there was a bona gide belief did you not see what they did to sac capital . I certainly saw what they do the to sac capital. Two bites of the apple. I do not think thats going to happen here. The target at sac capital was steve cohen. I think the outcome at sac capital was foreseeable if you look at all of the other cases that were part of the bigger sec capital probe. Youre not going to have a situation with jpmorgan where you have a criminal indictment that turns the lobby of every Jpmorgan Office around the world into a state of the Office Health fund. Youre tot going to shut down the bank. Its not going to happen. I think there is at least i dont want to say a handshake, but an understanding, were not going to see a criminal case here. Jacob, if you were called in by the independent director of the jpmorgan, so were going to have a private meeting and we want to get your view on what the heck just happened here and how we should think about our own management and how we should think about them going forward, you would tell them what . I would tell them that this is a toxic, toxic, not a tough u. S. Government, a toxic Regulatory Environment thats been created by the powers that by the powers that be in washington. I think that creates a very dangerous precedent. I think it would also highlight that this government cannot be trusted when it asks an institution to come to the rescue. I think there are terrible precedences that have been set here not only in terms of the numbers, but in terms of how the government went about this case. I even see other problems in this settlement. This settlement includes a social policy component. It includes an independent monitor that i think is being misused in this context. Misused because . Because its not the purpose of an independent corporate monitor. An independent corporate monitor is intended for use where there are compliance issues, where there needs to be corrector measures imposed, not to handle what should be a Financial Institutions job wbl, which is to distribute funds. I think there are a lot of challenging funds here. Ultimately, this is a business decision and its an understandable business decision. No bank wants to be in the business of fighting investigations. Theres still london wales. Theres a lot more out there. This is about bringing closure to these cases. Its not about the management of this company. Jacob frankel, thank you for joining us this morning. We appreciate your supperspecti. He been the double dip, the episode of seinfeld where its double dipping. Did you see him, he does it with like a chip, a salsa and thn someone at the party is watching and then he goes dips back in big time. They almost threw him out of the party. How do you feel if you go for the dip and then you try to take the other side of the chip . Only with your family. You cant do that in a public setting. I do know what youre saying. I think thats legitimate. Not at a public setting. I think thats legitimate. My mouth is cleaner than the entire area, mostly. No, no, no. And chip res too big to get it all on the first dip. A second dip is you dont enjoy your food without a second dip. But im talking about pig necessary a blanket. You see me at a Cocktail Party coming at the but two bites of the apple sounds like a movie in the 40s with rock hudson and doris day or something. Im not cool with double dipping, but have you seen any seinfeld episodes . I have seen most of them. So if i use that, it will be some instead of a blank look, there will be some recognition for what im talking about . They ended like 15 years ago. Its on four times he night. I know, but it hasnt been in product production. Its a cultural icon. Everything that can happen has been done there. And you can reference it and i will at some point. If it helps, i master my own demand. That makes me nervous. This squawk ward movement has been brought to you by andrew ross sorkin. This morning, the bank was drawn from a 2 billion listing by China Everbright bank in hong kong. This is important, this story, im sorry to we were joking around a little bit. But jpmorgan faces a number of investigations, so getting out of that everbright deal, that was one of the companies that was on the list that it had gone in the business because of because of the connections. I have seen anything that takes you away from pointing out every possible inflation jpmorgan has ever been involved with, anything that delays you or obstructs you or just gets you off subjects. You notice that . Youve got to get back to where do you bank . Not at jpmorgan, probably. No. As it happens, where do you try to get a better geel or something if you lay off . Right here, where is it . Are you friends with chase. Chase youre working for a lower interest rate. No. The layoff . Im not working for anything. You asked the question. But im an equal opportunity. I also have American Express and some of those others guys. Oh, home depot. We mentioned it. Home depots Third Quarter results. Oh, bribe nagel, hi. Brian nagel is here. Its a hard line analyst at oppenheimer and company. It is good and is it above, do you think, what people thought in terms of how good it is, brian . Well, good morning. I think this report leads is going to be very pleasing to most investors out there. Theres nothing to quibble with her whatsoever. Good sales growth, good expense management, good buyback, its across the board, really good report here. And we immediately mentioned the bernanke. Its a better environment for housing. Thats better for home depot. Thats true. Thats a big driver. But i dont want to look past a lot of the improvements home depot has made in the Business Model over the last few years. This is a much better run company today. So the argument id make is given how much better run home depot is, the company is now better able to capitalize. When you look at what you were measuring, how do you look at that . Theres a lot of ways to look at that. I put a piece out to our clients to say the first time in a while, home depot is trading about a one to two multiple discount lows. Essentially home depot stock has done nothing over the last few months. So i think thats why even more this is a positive for the stock price. You can see it in the stock price when the first word of tapering, you can see it there. And it all will it happen again when the fed is ever going to do that . Well, my view on that, and i think thats more avenue knee jerk reaction . But the rates go up and we did see, even though its from low levels, we did see the Mortgage Market cool off a little bit when we went up to 2. 7 , 2. 8 on the tenyear. I think the most things for home depoint, home depot has operated very well in climbing Mortgage Rates environments. Really . You know, thats a new high, brian, right there that were looking at, all time. Yeah. I was just looking at your screen now. Thats right. Its a new high for the stock price. And a 114 billion market cap. And when, you know, we see those guys, the founders, theyre not spring chickchickens, but theyt that old. Thats Pretty Amazing and that many jobs and everything else. Wa about fedex . That guy, too. Fred smith was here on friday. Brian, your name is very close to brain. A lot of times people misspell it brain. But its not, its brian. Its brian. And jumbling your last name, we could make some different words out of nagel, couldnt we, becky . I cant think of one. Brian, see you later. Thank you. Andrew, whats coming up . Coming up, oxford dictionary is unveiling its word of the year. Find out if its in your vocabulary. I bet it is. Im not going to be surprised. But first, were going to head to a break and before we do that, were going to check on the National Weather forecast. We have alex wilson this morning. Hey, guys. Cold is the word of the week for parts of the midwest. This morning, not too bad. We have 20s and 30s out there. Todays highs, close to average. For chicago, 43 degrees. 40 in green bay and detroit. Even tomorrow, not too bad. Temperatures in the mid 40s for chicago and detroit, even throw to mid 50s for spots like indianapolis and st. Louis. But the cold is coming. Were going to have two fronts move through, one brings in cold air. The other brings in much colder air and we will be talking about temperatures well below average as we head into the upcoming weekend. So get ready for it in chicago. Thursday, your high still close to average in the upper 40s. By friday, low 40s, as good as it gets. And 25i a look at what heads our way for the day saturday. Those highs will be only in the low 30s for chicago, mid 20s in des moines, low twints in minneapolis. Weve got mid 30s in indianapolis. And chicago, our forecast as we head into the weekend average high, 46. Low 40s on friday. Mid 20s, that will be your high as we head into the day on sunday. Thank you. We know youre always looking for the best fill price. And walk limit automatically tries to find it for you. Just set your start and end price. And let it do its thing. Wow, more fan mail. My uncle wanted to say thanks for idea hub. He loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. [ male announcer ] open an account and get a 150 amazon. Com gift card. Call 18882800149 now. Optionsxpress by charles schwab. I got this. [thinking] is it that time . The son picks up the check . [thinking] im still working. Hes retired. I hope hes saving. I hope he saved enough. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. Whether youre just starting your 401 k or you are ready for retirement, well help you get there. Welcome back, every. Right now its time for the executive edge. The u. S. Default threatened, banks took stroid steps. Jpmorgan alone has spent more than 100 million on consingsy planning for u. S. Budget crises. In addition, many banks gave customers concession because of the crisis in washington last month. Gentlemen, this kind of explains how big of a drag this has been just on business is trying to get ahead here. Yeah. And no, look, i think this is the true drag on what all this means both to banks and then if you go out to look at all the clients, this is what must be happening behind the scenes. I know the writers of the story. I like them. I was un impreimpressed by what going on here. Theyre all hanging their heads now. I dont understand that its like a made up number. It only comes from jpmorgan. The firm doesnt put its own number on it. Its coming from some unnamed we talk about the bigger but i think its a big issue. Ill tell you what the big issue is. Tell me what the issue