Since last weeks low. The nasdaq had its biggest percentage gain since january 2013. It was up 2. 4 . That was a gain of more than a hundred points to close at 4419. That would be do the math another half, that would be like 400 or 500 points. Yeah. A big move across the board. And you noticed that i think maybe the music does not imply up or down. Its not the markets are dog gogoing d of the two music strings that we have. I would, too, but its confusing now because people at home are like, oh, no, what happened . No, no, this is a hey, everybody if i can say one thing to you who pushes back if i have an opinion, you have the opposite. But did coke and mccdonalds yesterday matter, as i said . And the day before, did ip about m matter . And ibm was down another 6 yesterday. These are singular issues. No, i decided that you you were agreeing with me now, in hindsight, looking backwards. With hindsight, 20 20 vision . And i do want to talk about something today. I dont know if well get a chance with ibm. I think hes selling. I think buffett is selling. I juflt want to pose a question. Is he selling . A. B, is he just holing . Or c, is he buying . Is he buying more . We will find out. Well find out soon enough. But there was a guy yesterday at credit suisse, did you see his price target . 1. 25. Its absolutely clear, he made this investment in a hes not usually comfortable with. Hes down half a billion right now. Thats what hes losing, hes lose a billion and a half in the last two days. But from his entry point, hes down a half billion. I think he, a, looks done for buying it now, but hell look even dumber if he just sits on this thing as it goes 1. 25. He hates to look stupid, doesnt he . Not likes to look stupid. Why did he buy ibm . Why did he buy that . That is how would i know anything about this . He wrote in letter in 2011 talking about the buybacks. Instead, we should hope, meaning berkshire should hope that the shares of ibm dont actually go up too much because we want to be able to buy the back on the cheap. All part of the plan. He would argue, i think and i dont speak for him at all because i have not talked to him about this particular issue. That because of the dividend on that stock, if you could literally hold steady, if that stock could just stay flat, they could and they could actually buy the stock back the whole time and get the dividend, that hes actually still ahead of the game. If mcdonalds is a whole point higher, the whole thing becomes problematic unless you get down kodak. It did drop like a rock so far. But right now i would argue but t down. Probably hes even with the dividend, hes still losing. Its down more than 2. 7 . The question is where does it go from here. Do you think hes still thinking about what do i do with this at this point . I did call and try to get an answer this week. I couldnt get one. What did he is . Can you do an imitation . No. Carl used to do a pretty good one. I cant. Can you . Youre a tech guy. Can you do a buffett imitation . Youre a tech guy . Youre our tech guy, no . Maybe siri can do one. I can check. Should we talk about yahoo too . We will know when we talk to him the next time. Yoohoo beating, we dont usually say this. They beat on both the top and the bottom line. A bright spot this quarter. Was it mobile ad revenue, which is expected to see 1. 2 billion this year, investors are liking what they hear. Yahoo shares spiking after hours. Take a look at the stock chart. Its now soared over 160 since Marissa Mayer became ceo back in july 2012. The company is experiencing growth now. What about yahoo s longterm prospects . That is the question this morning. Joining us now is edmond lee. Cnbc editor jon fortt. Guys, i should tell you, i talked to her last night. You talked to her . She took my call and we spoke. Was it a Conference Call and you were just lynching . No, no, no. This was a real phone call and we spoke for about a half an hour. Way to bury the lead. I am a little i have been a little skeptical. I know about henry sleeping in your bed last night. Henry, thats my son. Just to explain i dont want to seem too skeptical, but weve talked about the value of alibaba and whether this thing can with henry . No. Weve talked about the table about alibaba and whether you take alibaba out of the business whether the business is worth anything. And i have to say that i was impressed, not only by the numbers, and you can disagree with me, but by at least the prospect that the company was not when she started at that company, the whole thing was going to hell in a hand basket quite quickly. Even if you decide the strategy isnt all baked and all that stuff youve been saying for a long time the strategy was not baked. I know. Im saying it. Im saying it. I maybe im drinking the koolaid, but how how did she change your mind . What did she tell you exactly . I thought if you really looked at what happened over the quarter with and i want to get your view owes this because you guys are here. But the display advertising pooem piece has been the issue in terms of deteriorating display advertising for everybody. If you look at some of the mobile stuff that they were doing, you could start to see the line potentially crossed. Right. And to me, that was thats the first sort of thing id ever see where i thought the first time id ever seen it at yahoo where i thought, okay, the mass ultimately works. Who decided to buy alibaba . Jerry yang, years before. So what does that have to do with your new friend . Steve jobs had arm holdings when he was trying to turn apple around as an investment with apple. Yahoo has alibaba. I think the message from Marissa Mayer is leave me alone, i got this. She put some hard numbers on it and display is worse than a lot of people realize, dropping 50 million per quarter. The problem that still exists is that theres no major accelerant that we can see to where mobile is. It gets yahoo alive. It doesnt necessarily take them to the next level. Its not clear that theyre entirely in charge. How do you get a 2x from here . She needs to do something. Thats what i i still didnt see a vision from marissa in items of what this company is. When we were on the phone, i asked, i said, what is it . What are you . She basically said, its going to be a little bit of a complicated explanation. And i think shes trying to figure out what to do with the assets. But i guess the only thing i would suggest, and maybe i am drinking the koolaid, i feel like at least some of the operational stuff is buying her time to figure out what the next thing is, whereas two and three years ago, on an operational end, it was nothing. Its not the time process. But, again, i still havent seen an articulated vision in terms of what the company is supposed to be, where the accelerant is going to come from. A lot of Financial Engineering i want to say in this quarter in terms of not that theyre cooking the books or anything, but simply i think theres a lot of onetime noise in these quarters earnings. It was a huge beat. It was a bizarrely huge beat in a lot of ways. I think it this wouldnt explain from the earnings column what we saw in the statements. All i said is revenue is hard to fake. But the thing is, theyre whatever their adjusted eps is. Whoa, thats a huge number there. Talk about buybacks. Theyve been buying back stock like crazy. I would argue buybacks are great if youre buying back the stock when its cheap. But we dont know that. And thats the question. So the question is theyve now spent 8 billion at yahoo . Would you have preferred they i think 7. 7 is the real number, but lets go with about eight. What would you prefer that they spent 8 billion on . They had to do that. One of the things marissa has been great is pras pragmatism. She got the activists off the board at the right time. She released these mobile metrics at the right time. I think she and ken golden know they have to do buybacks at a certain rate so they can compare, where is the little bit we spent on acquisitions. Here is all we spent on buyback. She knows she has to balance those two things. I think the question is going forward, is it a Strategic Acquisition of something on the skill of a pintrest . I dont think they will. What is it that will boost this . I thinkite kind of like she has the steve jobs imac stage. It wasnt itunes, it wasnt the ilife suite. You got to see some big vision, something strategic, thats something that the other big guys havent thought of. And you think its a big acquisition . Yeah. If im a shareholder, i want some dividend, i want some money back. Short of that, yeah, i want to see a big acquisition, a big, big one, something that articulates a vision that explains what yahoo is going to be three, four, five years out. Do you think its a realistic possibility . No. It doesnt seem like the type of company that likes to do that. It has this declining business for ibm, its hardware for yoohoo, its display ads on the pc. And it has this Growth Business thats still too small, you can show up on the top line. Weve got to run, but real quick, theyre going to starboard is trying to push her on the tax front on how to sell and beat alibaba shares in a tax efficient way. What does that actually mean . Again, i dont know. They said so the phone last night. She said we will a million tax experts trying to figure out how we can get rid of these shares at a different rate. Does that ultimately mean buying other businesses and combining them and spinning them if they could. Tim goldman tried to be careful on how he explained this last night. He said i cant really say because there are a lot of things were considering, including trying to minimize the Corporate Tax we would have to pay. I think theyre trying to figure out what is legal. There is a lot of cash on the books, though. Would you agree that thats unpatriotic, too . Of course. I will tell you that i would as i was reading through the transcript of the call before i got on the phone with her. That was what your take away was, wait a second well, how do you say it to her . Do us can you be more patriotic . I but youre building the money from china. There you go. Where is that money coming from . You typically you lost me, thank you. No, no, you see they alter the premises they made, they dont ever matter to you. Youre not bog go to change your view no matter what. Hfk. Its my definition. Its a ridiculous noelgz that patriotism tax even if you do a tax efficient method, its what do they do with it . Or does it become a takeover target . So youve got to get rid of it. Pfizer, 3. 7 . Mcdonalds, 3. 7 . Exxon mobil, 2. 7 . There are a lot of big yielders in those dow components now. Theres an argument that you want to see some of that cash back. Thank you. Youre still wearing a summer suit. I think with this underneath it it becomes french. Not dem, chambray. Andrew, someone wrote in, i guess they listen to you and have the same feeling that you have. Companies with declining revenue who borrow to buy back stocks go bankrupt. Buying or were talking about ibm. I guess i have to connect the dots for you so you can follow me. Companies that borrow money to buy back stocks get earnings per share up as revenues decline for 14 straight quarters. Yes. And then go bankrupt. And then go bankrupt because eventually they go bankrupt. There is ohm one place you can end up like that. Sthef to take these things into account. I think its a great question. He wants to make people think he has a longterm plan, but he doesnt like marrying losers and riding them down. Thats human. And he is not human. He is not human. With the about face but he is not human. Remember, he said that was a big mistake that i made and he hates to make mistakes. But in this case we have to get him on the phone. Finish his selling. On the buybacks . It is possible, only jamie jamie is like the void . It is possible. That is a company that is sdmrsh and the whole reason for then the investment piece is made. Im just saying its not a company that is going out of business tomorrow. Put it out there. Thank you very much for joining us. It is only right now 63 days until christmas. Target is first out of the gate with some holiday offerings for shoppers this season. Courtney reagan joins us right now with more on that. Courtney, good morning. Good morning, becky. I dont want to freak you out, but we only have nine weekends before christmas. Theyre focussing on offering great value, great experience and great products. Easier said than done. The retailer is getting rid of last years 35 threshold for Free Shipping on all target. Com orders. That starts today and runs until december 20th. More than 65,000 items will be available for order online, pick up in store and 80 of those can be sold conditiwithin an hour. Target tells me it continues to distribute stories with mini distribution orders. If they do it right, 90 of the country could have next day delivery under that model. And a recent survey conducted found targets prices were higher than contenders, at least in that one survey. Now, the big box retailer is, again, extending its price mesh Program Beyond its normal sevenday time frame from november 1st until christmas even. Forge ago digital connection is going to be a key focus. Target launching a wish list for kids that are thats shareable, relaunching its mobile and tablet apps. Applepay will be there for the iphone app. Its going to have a daily offering including 50 off a toy that will change each day. Theres an idea that came right from mr. Cornell. Partnering with new york city boutique story will help the retailer cure rate Holiday Gifts from target. You could shop right here in manhattan. So its sort of the original pop up shop. I will check it out and see how it looks like and see how that partnership really works. Courtney, thank you very much. And youre right, nine weeks, i cant take it. Too much to get used to, too much to do. And we found out i guess was it yesterday or early today, legendary newspaper man ben bradley passed away at the age of 92. The former executive editor of the Washington Post led that papers coverage through the water goods gate scandal. He was one of the four individuals that knew the identity of deep throat. He died after suffering a long battle with alzheimers disease. They said he was he was 93. 93 years old. When we come back, the big dow compback, shirrs of united, nike, helping up three Straight Days in a row now. Are investors ready to put last weeks bear scare into the Rearview Mirror . Stick around and find out. Im type e. I know what my money is doing. I rebalanced my portfolio on my phone. You know what else i can do on my phone . Place trades, get free real time quotes and teleport myself to aruba. I wish. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. A single ember that escapes from a wildfire can travel more than a mile. That single ember can ignite and destroy your home or even your community you cant control where that ember will land only what happens when it does get fire adapted now at fireadapted. Org the s p and nasdaq riding a four day winning streak into the session. The dow got a threeday winning streak going. The industrials dpaepg almost 500 points during the run and the gains would be even higher if ibm, coke and mcdonalds werent dragging down the averages. Yesterday wasnt the biggest day for the dow. Weve had 380 points a threeday it cass coming on top of yeah. Were Something Like 6. 5 from where joe k. J. Kin na hahn is with us this morning. Strategist at td ameritrade. How high did it get . The vix is down just a tad under 40 . Did it get to 30 . Yeah. It got to 30 in a day. It didnt close there but but it got to 30 in a day. Aus talked about with the s p 500 rallying significantly over that time, also. I find it hard to believe were going to stay quite this low. The vikts is down almost 15 yesterday. And if you take that against the rest of the moves, didnt make quite as much sense. It was an expiration in vix options yesterday. It may have got overdone. The vix futures rallying today. I would expectite more of a 16 on the low end, 22ish on the high end. Lets talk about what we can expect. People say the s p intraday was down 9. 7 or something. That might qualify. But people also were saying that there is damage that needs to be repaired and it only was repaired over time. And it can take one to two months to get back to the highs, even after a correction that doesnt get into the bear market. Even in a continuing move, do you think we need to do some backing and filling here and we dont go straight to new highs . Well, you know, healthy so to speak market tends to have some downward moves up. I do find it hard to believe were going to continue straight up, not go back down and the touch this 1907 area on the s p 500 which is the 200day moving average. The one thing i will say, joe, that was lost in all of the excitement on the down move is if you look at the financial stocks, and i really thought this got overshadowed, the ceos were all unified in their message in that most of the road block needs to be out of the way. I wont say theyre going to explode to the up side. They were all bullish on the Fourth Quarter and all very bullish going into 2015. But i really think the financials, more than any other sector, are the most important because they touch every other sector there is in one way or another, be it through loans or whatever it might be. So to hear all those ceos say that, i thought was great. It was a tone change from six months ago or two quarters ago from their Conference Calls. So friday was good. Friday we was okay. That was a day when i was worried about an ebola case. It should have never academy the stock market, but you cant help it with uncertainty and what it would mean to commerce and Everything Else if it were to become you know, if the worst case scenario, what we called it with low probability and high impact. And the probability is very low but high impact. Weve gone kind of a week and there has been anything in nigeria and some of the patients here no longer are at risk. All that allows people to go back and say, you know what . Interest rates are going to stay lower longer than we even thought before. Its almost like people have said, ive got to return to where i might get at least something for my money, even if its dividends. Thats sort of how i would interpret whats happening over the last three or four days. I would ten to agree with you. I caught a little bit of yo