Transcripts For CNBC Squawk Box 20141111 : vimarsana.com

Now the tech giant is dropping the nokia brand title months after it completed that transaction in its hand set business. So there goes the beginning of the end of nokia. Separately, ford will begin production of its resigned f150 today. The vehicle now has an aluminum body and the f150 has been the nations best selling vehicle for 32 straight years. Well see whether they can keep that up. Fill lebeau will join us with mark field at 7 30 eastern time to talk about it. And june per networks ceo is out. He quit following a board review of its conduct and negotiation of a customer. The network gearmaker says they wont impact the companys finances. Shares of juneiper up 13 in the last month. You havent looked into that . What are they talking about i cannot give you can explicit details. I have done a little bit of work, but i dont have enough. Is it explicit . Theres things that were said to this customer, but i dont know enough but its not explicit . I dont believe so. Okay. Why the nice music today . It went from scary music when you were talking to nice music when i was talking. We need the scary music. No, put it on. Weve got obamacare for the internet going for us today. Andrew, other than the 90 what was the other thing we talked about that you were so happy about . The other day when oh, that was never mind. Never mind. But this is big for you. This is big. Net knew translaneutrality. Lets regulate another federal power grab. Here is what i dont understand about that. I thought the fcc was stoved to be an independent agency. Isnt this akin to the president telling the Federal Reserve what to do . Kind of. Three democrats and two republicans. So wheeler has already been theyve walked him back big time. I was like full on, you know but honestly, that confuses me. Isnt this the akin to telling janet yellen what she needs to do with the Federal Reserve . This is supposed to be a free agency. It has three democrats on it. And he can give tom wheeler to give political cover. But the s. E. C. Role is supposed to be independent. Im not saying its right or wrong. This seemed to me, when i tried to put it in the context of saying Something Like this for the Federal Reserve, i thought, wow, people go crazy over this. This is an independent agency. And the journal has a great piece. Not only that, but the rules that were talking about implementing here under the act of 1934 were obsolete in 1930. They were written in 1887, too, for the framework for the railroads. The interstate commerce. Its going to be like water. Can i ask you a question . No. Ive you ought to be able to figure out why did the New York Times is for it and if its the antiprivate sector. Let the markets work. Let the markets work. You know what . I dont care what you think, andrew, on this. I dont. You have your opinion. On 100 percent of what we talk about, i disagree with you. I would like to deregulate the entire piece no, no, you cant yes, i can. No, you cant. You argue with other people like this. Im exhausted. You just on National Television im going to make the to you. I dont want to hear it. Okay. You dont lisp. Ill listen. Okay. You listen. This is a discussion we had in the makeup room this morning. Im exhausted. The there is a oneman wrecking crew. The market is not currently free. Its absolutely free. Appeared rue, this is going to make it for the most part monopolies, because the municipality and the government has given them that monopoly. So as long as you decide all im saying is if you were willing to have every municipality in the country open up their lines and saying, you know what . Whether comcast or charter or whoever, you can have any those providers with that right now. If they build something out and spend billions of dollars, they build it out, theyre allowed to charge what they need. Andrew, this is not even a utility at this point. Right now, for my water, if i use more water during the summer months, i pay more for it. What youre talking about is everybody can have a plate rate fee. If you were to compare it to a utility, just like the phone, you can no longer sell a flat rate per month. Youre going to have to pay for what you download. But that is part of what this is. You should be able to so they the plan would treat cable, telephone and wireless, common carriers, subject of federal price controls, a myriad of other like telephone companies, broadband providers will be able to file a tariff for the commission so that mountains of paperwork ask the government to improve the prices they intend to charge for the services. So hold on. What i just said to you is different. Then the federal they would consider. The bureaucrats but let the competitors come in. But its too much for the ones who end up paying for it. If you are a consumer, you are no longer going to get a flat rate fee. So more paperwork, then you ask the bureaucrats youre argument is youre making things better for consumers. I dont think youre going to. Im sorry to do this on a Cable Network on a network thats owned by a cable company. Wait, wait, not necessarily how is it possible that cable in this country costs so much more, multiples more than it does in most country necessary europe and most countries in asia . Prices. Excuse me . Why do gun prices cost more in this country . Because theres controls on them. Look, theres competition in those other places. Thats why its cheaper there. So i dont think any technology is expensive. I dont think Long Distance is expensive. I dont think what i do in the smartphone is expensive because comcast pays for it and i dont get any own bills. But the bureaucrats, would they consider which prices are fair . So youre going to submit all this paperwork. Im saying whether you can expand to build the digital network. Open it up, allow other competitors to come into the marketplace. Youre arguing the existing Cable Companies should have to carry google or everyone else and say build your own line. You dont agree with anything these other guys wanted to do, which is use the existing infrastructure. No. Google fiber and others are build it themselves. They want to use the exiting telephone lines that are there. Do not use the line. They want to have the no, they want to have the same rights of way. Given the same rights of way thats not what it comes down to. And youre paving for a set price . A reasonable price that the government sets, let them gave them the roadway to begin with for free in most cases. I dont think anybody here is arguing that you shouldnt no, im its going to create a huge im saying open it up. You never argued to open it up. Im not even listening to that part of the argument. A bipartisan consensus has allowed the internet to grow unobstructed. Now you want to create a huge bureaucracy to consider every single move that these Companies Make and file paperwork and tariffs and set prices and give the go ahead or not the go ahead on building out digital. All im saying is you open up the markets or you decide theres some form of regulation. You cant pretend that youre not regulating it when you are. Everybody who is in this business right now effectively is a government sponsored monopoly. What can we do for you to not thats what it is. To not allow a government to basically obamacare for the internet . What can we do to satisfy this small piece of the competition that you want . Create some form of competition. And then leave everything else. They can pay whatever they want to pay, what everybody pays. It doesnt matter. That specifically is what president obama has said he does not want. And im agreeing. Im saying you can do this as long as theres more competition in the space. I think everybody is arguing different points here. Everybody is talking over each others head. I dont know how that matches you against no, i dont. I told you i wasnt going to be involved. By definition, youre on the wrong side of this issue. The New York Times, the left wing government, look at who youre keeping company with to decide what is going to be pro business and what is not going to be pro business. I would think you would think business should be pro competition. Think about china which is now more capitalistic than we are. Well see about that. Singles day in china is the biggest day for retail online. Eunice yoon joins us with more on this t traffic. Having a very passionate day about the internet. I think over here, people are just generally in consensus about whats going on right here with alibaba. Generally, everybody is excited. For the past 24 hours, theyve been keeping an eye on the clock to see how the sales are doing. You know, weve got five hours to go before everything sets down and pretty much were at 7. 5 billion in sales already. That already exceeds last years 5. 8 billion and it shows that the company is either going to meet or beat the expectation that its going to clock about 8 billion in sales on this day alone. Now, this day, singles day, wasnt always commercial. Its generated by the fact that a bunch of college guys got together and decided that they wanted to celebrate single life on november 11th, which is 1 111. So youve got four singles together and its become somewhat of an antivalentines day. People started to buy gifts for themselves and then it became a big consumer holiday. So now the company like alibaba has helped to make the commercials, theyve been pushing a lot of discounts. Everybody today has been pushing about the great starts, bargains, from the retailers. In fact, jack ma himself has said thank you to all the shop aholics for contributing to china gdp. Hes made some other comments through a Chinese State broadcaster where he said ali beside pay is definitely going to go public, but that he hopes its going to happen on the mainland. He didnt give any details on the timing. He did say that he was a little regretful of the fact that alibaba had to list in new york instead of in china. However, if there is enough states in alipays business, theres probably going to be quite the bit of demand for that company. Guys. Thank you for that, eunice. We should tell you, as we did before, tune in to squawk on the street. David faber has an exclusive interview with alibabas founder, executive chairman jack ma. Thats happening this morning at 10 00 a. M. Eastern time. All right. Bond market is dark in observance of veterans day, but the stock market is open for trading. Stocks open modestly to kick off the trading week. But that was enough for the dow and the s p to close at record highs. Joining us is richard steinberg, officer of steinberg Global Management and Steve Freedman at ubs Wealth Management service. It was kind of a were still making advances, rich, but they seem more strange at this point and almost seem like more fewer issues are helping us set newer highs. Is that fair to say and do you expect that to accelerate . Yeah. I think, you know, weve had the swoon and then the rebounds, joe. Now that earnings season is pretty much done for the Third Quarter, 77 of Companies Beat estimates. 60 beat revenue growth. And that is higher than the trend of 73 . And i think now the risk reward is pretty much baked into this market being somewhat even. Weve gotten to an equilibrium. The only way that we can really start to move forward is if earnings start to reaccelerate again above the 130 for this year. And so we think that the market probably needs a rest again before we go higher. Where are you right now . I tend to agree. Like now, its going to be more of a grind higher, driven by the general trajectory of earnings. Our view is that overall over the next six to 12 months, we will have enough Earnings Growth to post high Single Digits Capital Gains in the stock markets. But not the type of continued rebound that weve seen since mid october. What could be what could be a negative . Could it be that either europe or china or a general unexpected slowdown in the u. S. Economy . Can we just write it in the books that were a 3 economy now . Thats our baseline. The expectation, you can always be surprised there. The wild card really is europe at this point. Thats the single biggest uncertainty, i think, in terms of the Global Economic growth trajectory. Our view is that youre seeing within a slow growth context, youre seeing little shocks creating these scares in the eurozone that obviously you wont fall back into a recession. Rich, what do you think went right for the u. S. Economy this time around and theres not going to be a swoon . The Unemployment Rate got down to the point where we can reach were no longer at stall speed where people are worrying about losing their job, worrying about not being able to pay their bills so that you know, weve had two or three periods where all of a sudden we just went back into a slowdown. You dont think that is going to happen this time . Why not . I dont think so. A couple reasons, joe. With borrowed oil, 30 from its highs in june is creating about a trillion dollar stimulus for the global economy. So i think the real key in terms of job growth has been good, but wage growth hasnt really picked up. So were in this period of kind of limp along growth with rates as low as they are. Youre now going to get into i think a new debate, joe, which is have oil prices fallen enough and gas prices to help stimulate the consumer, will that outweigh the strong dollar risk to overseas earnings for large multi task Cap Companies . When you have those kinds of push me pull me kind of situations, you end up in a grind higher because rates are low or you could have a little bit of a set back here. So if we do move higher going into the end of the year because people get robbing peter to pay paul for next years return. All right. So where do you have for next year, the end of the year on the s p, rich . Right now and i always tend to be pretty conservative in these numbers, joe. Right now at 130 in earnings, i am at a 16year multiple. I am concerned about europe. I am concerned about the capital crazy characters in the world. So im still at 2100, which only gives you about 3 plus plus 3 in dividends amid 5 return for next year. So im hoping to get a 3 back so people can redeploy some cash on the sidelines to have a better total return going into next year. Did you miss the last pullback . No, actually, the last time i was on we just you want another one . We just had nine. Youre trading too much. I think its healthy. No, no, actually, were not. I think the key, though, is that investors, its not healthy to have a straight up line because then when you have a shock, you get these swoons like we had in october. Where are you next year . 5 . Im going to stay home. Were seeing 7 to 8 Earnings Growth. We think thats going to dictate the pace of Capital Gains. And no multiple schangzs . No multiple expansions. Well find action in some other markets maybe. Steve, rich, thank you. I want more. I want more. But why would we get you cant always have more. I know that. I know that. We need some cooperation with the other powers that be to unfeter, unregulate by the way, joe, you won that last debate with andrew, im just telling you. Oh, geez. I dont see how picking one i dont know. So you take the whole industry under Government Watch because no, i dont want to put anything under watch. Thats where i dont even understand. I think you guys are talking over each other. I got lost over what the debate is between. Im saying open up the market. Thats all im saying. Im saying you want true competition, you want a marketplace, open up the market. The reason our cable cost res higher is a function of the fact that theres not competition. Build it yourself and spend whatever you want here or by saying that these existing businesses that have built up business on this need to share or allow you no. You need to effectively provide whats called franchise rights and rights of way and other things which traditionally most have not and, of course, the companies that are already there have fought against. Thats what happens. Its it is what it is. Thats not even thats a totally different issue than what were talking about here. Someone in one of your meetings at the time told you this . Coming up, president obama in china today meeting with world leaders. Were going to tell you about the exchange with russias vl Vladimir Putin. Next, the pot debate, why new york city plans to stop making arrests for minor marijuana possessions. Squawk box returns in just a moment. President obama and chinese president xi jinping meeting today. Susan joins us. Good morning. Hey, becky. This is what happens when you lock leaders into a compound 50 kilometers away from beijing. You have a Group Discussion and hopefully you get things done. We did have president xi jinping having a walk around, kind of like what happened in california with the u. S. President barack obama. The most significant meeting that we can confirm, in fact, both sides have confirmed today here in china is that the russian president , Vladimir Putin, did, in fact, speak to u. S. President barack obama. Both sides not giving us much details. We dont even know what they talked about. But there is speculation that maybe this has to do with the ukrainian crisis and the sanctions. In china, talking about maybe trying to ease tension some say is the Second Coming of the cold war. Again, we dont have specific details on what the two had to say. But there was a sigh of relief here this year at apec with the falling of tensions between the two largest economies in the asia pacific, between japan, with shinzo abe in attendance and chinese president xi jinping finally shaking hands for the first times since both went into office in 2012. Even the japanese Prime Minister in his closing comments saying china and japan, they need each other and hopefully they can put hostilities between the two behind in the past. Hopefully they can move together in the future. Trade is a big topic here. There are two competing trade pacts on the table. U. S. President barack obama is trying to push the pint point his pivot to the asia pacific. But it looks like china is claiming victory with chinese president xi jinping saying they are going to stress this twoyear negotiation in the trade pact. Back to you guys. I know this was a thawing of relations on both those counts. But if you look at the photoops, no one looks particularly pleased to be in this position. I guess these are baby steps. Yeah, these are baby steps. You are absolutely right. Theyve shaken hands three times and each time, neither shinzo abe or xi jinping are smiling. When you take a look at what the analysts are saying about this, theyre both playing to their populist, with both riding on these national campaigns. There is deep mistrust between the two, so they have to stick to the line to the status quo. As you see, some unhappiness there between the two. But let me show you the highlight of apec, if i can, becky. You have all 21 apec members donning the gash of the representative host country and the monday morning quarterbacks is about the mouths that all 21 leaders had to wear. Some are saying its a bit too star trekky. Why dont you guys take a look. I have to say, i kind of like it. And its good to see everybody in the same garb. Susan, thank you very much. Thats right. There you go, unified. Ive got some tshirts that people have sent me with there he is. Hes already in the garb in the past. I know. But in some of the tshirt thats people have sent out in the past i have to say, i kind of like it. Its nice to see everybody the right wing has sent out photo shop pictures of the president. Wasnt he chewing gum today or yesterday . The great thing is icy and frosty and uncomfortable as it is over there, hes so glad to be there rather than back here. Anyway, people carrying small amounts of marijuana will no longer Face Criminal Charges in new york city. The mayor de blasio and police xhish 234er making the new policy, people are under 25 grams of pot will get summons and face noncriminal violations. I think thats a big bag. My friends told me that i think 28 grams back in college was thats a lot. Look at this bag. Do you know what an ounce of pot is . No. Do you remember no. Any of your friends ever buying no. I never an ounce of pot is 28 grams. Basically, youre allowed to have an ounce of pot. An ounce of pot will last, if its good, it will last a while, right . Sorkin, youve definitely smoked some this morning. No, huh . Not this morning, not this morning. Maybe a little from last night is wafting through. You dropped the matches, actually, rather than just anyway were calling this mushroom day. Mushroom day. I dont know if we all agree on our drug of choice this morning and have a sip of coffee. You think things arent free enough yet, so you want to just make them totally regulated. So every aspect no. I want to open them totally up. Youre reducing at this point, havent we seen a lot of competition between phone and cable and Wireless Companies that have driven speeds faster, driven prices down . Hasnt it all been on a relative basis for the comp decision . Move to europe if you love it over there. Its a little bit cheaper cable over there, do you know . Cable is better. What is it about go over there if you want to live there. I dont know. You like rich, creamy sauces . I like it here better, where i can sit next to you every morning. Were going to continue this conversation. When we come back, it is the nations Largest Online retailer of home furnishesing. What can wayfair tell us about the u. S. Consumer, the housing industry and the broader economy . Well have the ceo right after this. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. 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If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. Among the buzz stories of the morning, the nations richest oil man has been ordered to pair nearly 1 billion to his exwife. Continentals harold hamm on weeks ago. This finalizes the split. It could make her one of the wealthiest women in the United States. But the amount is smaller, believe it or not, than her lawyers had been seeking. And the divorce wont force harold hamm to actually sell any shares of the continental. I think the first payment is something north of 350 million at the end of the year and then he pays 7 million a month for quite a while. No, that wouldnt because he pays 995 total. 700 and what . 700 a month. Not a year, a mop. 360 million it was north of 350 million due at the end of the year, and then he pays 7 million a month. Harold hamm, who was just on the program recently, you look at oil prices, all the Oil Company Stocks have dropped because of a decline in oil prices, too. It doesnt really affect Business News or anything we do. Its just the personal lives get fun when theres billions involved . No. It would have gotten into it if he was forced the sell shares of continental. Then youre looking at a business story. How much do you think they fought over the last 5 million just so he didnt have to have the headline to say that he was paying 1 billion . How much does the lawyer take . Yeah. Ooh, thats a good question. It depends on if theyre working on a contingency basis. I would guess hourly. No. Yeah, if youve got the money, you pay hourly. You dont pay on a contingency basis. Yeah, but he wants more than right now, we are getting to the point writ doesnt matter with business new. No, thats the only part thats interesting. I mean, what, do you want to find out why they got divorced . No. Its the personal life of some guy. The only thing interesting is the money involved. I guess we can look and find out what the lawyer made. Anyway, why dont we take a look at the mornings stocks to watch. Shares of see czesars getting hit hard. Cutting about half of the rigs that it planned to operate next year. They cite the slide in oil prices and hertz says it will delay its Quarterly Reports. Also, take a look at rackspace. Reporting Third Quarter results after the bell. They beat street expect ages on both the top and bottom line. This is the first Quarterly Report since going public in early october, wayfair is the countrys Largest Online marketplace for couches, lamps, you name it, they sell it. Company shares are down about 557 . Joining us now is the ceo and cochairman and cofounder of wayfair. Thank you for joining us this morning. Morning. Thanks, andrew. Excited to be here. This is your first outing, if you will, in terms of earnings reporting to the street. You did beat. But the company is still losing money. So the question becomes at what point does that number reverse . Meaning when are you going to start making money . Sure. The thing were focused on right now, the homegoods market is such a large market and its just shifting online right now. So despite our scale with over 1 billion in sales, the direct Retail Business is growing, this quarter it grew over 57 year on year. Were up to 2. 9 million active customers. We think thats great investment. Do you think that sha shareholders and investors are going to give you the same respect and maybe leash that je jeff besos has at amazon . He doesnt always make money early on, but pushing on revenues and customers as you are. Amazon has done an incredible job. I think they earn the support that theyve been given. The way we think about it is were in a big market, weve been at it 12 years. And there is a huge runway. So i think what investors get excited about is the focus we have, the excuse weve provided and basically the vision we have and a belief that were going to get there. And so i think as long as they believe in it, i think well have a lot of good support. You consolidated some 230 websites recently to create what now is this wayfair brand. How much money did you have to spend in terms of marketing so that people know that wayfair is around, it exists and what it stands for . You know, what is interesting is we only finish consolidating the sites into wayfair two years ago. We launched the wayfair brand three years ago. Its two years ago this september that we actually started the brand building for wayfair. Despite that, inside two years, we got to over 52 aided awareness. We believe that still has a lot of room to grow and its growing really fast. So i think the strategy is working well and i think thats why, you know, frankly, because a lot of people are excited about what were doing. In terms of the competition, why would i buy from you as opposed to, for example, amazon . So the trick in home goods is that you want to own something unique relative to what everyone else you know owns. You dont want to have the same sofas, the same pillows, the same mirror. You need a big selection, but at the same time, you dont know the brand names. There you need visual browsing, you need someone to provide merchandising. What we provide is a huge selection, 7 million items, and we provide that with great imagery and merchandising and we do it for the mass market at prices that are affordable. That is what is pretty unique about what were doing and the reason we can grow to quickly. When you sit around in a strategy meeting and talk about your competitors, what company do you mention . Home is super fragmented. Theres a lot of different folks to focus on when you get online. Obviously, amazon comes up because theyre in ecommerce. Theyre an absolutely huge player. But what weve realized is that our customers are so underserved by the different Market Participants in terms of the mass price points backed by great election and great merchandising, we can get it simply by focusing on what else we can do for her. Thank you for joining us this morning, nijah. Have you ever used wayfair . I have not. I have. And after using it a couple of times, ive trusted that what i see is what im going to get. What have you bought . I bought something a week ago that i havent gotten yet. So i cant tell you yet because its a surprise. Ive bought rugs there. Thanks very much. Coming up, a small Success Story. One entrepreneur sold mark cuban on a retail idea and got a big investment on return. And a quick check off whats happening in the european markets right now. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. 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Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Woish welcome back to squawk box. It is time for the squawk box planner. The stock market is open. In economic news, the nfiv will release its monthly read of small about it Business Sentiment. On the corporate front, groupon is holding an investor and analyst day. Shares are down more than 30 this year, but up 25 in the last month. That is your squawk box planner this morning. We wanted to bring your attention now to a worthy cause. We are auctioning off a chance to come to our set, watch squawk box live, take a tour of nbc and have breakfast with us. And ive also offered well interview you, i think, well even talk, put you on camera. Talk about where are you from, likes, dislikes, favorite drinks. Well quiz you. Well play rapid fire. Do whatever you want to do. 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So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Welcome back, everybody. This morning shark tank comes to squawk box. One of the Success Stories from the show is an online retailer called red dress boutique. It sells outfits for women at a low price point. It was founded by a husband and wife team. The business has more than doubled since their appearance on shark tank a month ago. They closed their deal with mark cuban. Joining us now are the cofounders of red dress boutique. Thank you for being here today. Thank you for having us. Thank you. Tell us a little bit about the business for people who arent familiar with it. The red dress boutique is for the woman on the go. Its we try to simplify the Shopping Experience for them. Because as women our lives are so busy now and were so we have so little time to shop for ourselves. We either have kids or, you know, we have five minutes to get ready in the morning. Right. I wish i had my Catholic School girl uniform because that made life easy. Didnt it . I tried to make my own issues i had getting ready in the morning trying to feed a toddler his breakfast and trying to figure out what i was going to wear. And to simplify it for the modern woman. And so i curate a full look and we market it that way. You can shop the entire outfit. Of course you can buy the single piece as it is, but i know the way i get up in the morning and get ready, i have the outfit laid out. Thats how our customers shop. And they want the full outfit so that they dont have to thats one less thing they have to think about in the morning. That is what i think has made red dress so successful. How did you lure in mark cuban . Im sorry. Say that again . When you went on shark tank, how did you lure in mark cuban . I think he saw were not starting from scratch. Were not in desperate need for somebody to hold our hand on everything. But we are seeking his guidance. The reason we went on the show is because we wanted really a partner who could help us get through some highlevel decisions to get through the massive growth thats coming. Is it true it was 600,000 for a 15 stake in the company . It is, yes. What has he done to help you out along the way . My gosh. Mark started probably a week after we finished taping. And we taped in june. And he jumped right in. And hes so hands on. I mean, i dont think a lot of people know that about him. But he truly is and has been a great mentor. And even from the minute we walked off, he started emailing going, this is the plan were Going Forward with. This is what i think you need to do. He immediately sent us tech guys for help because we didnt have a tech team at the time in house. And theyve already been to athens. So everything hes done has been exactly what i wanted and needed. And, you know, weve got a process Going Forward on how to, you know, in stages how to help the website and get it a lot better moving forward eventually to a brand new website. And all of that has to come in stages. Whats it meant for traffic . When youre on shark tank, that is a huge ad kind of announcing your business to the world. Traffic has been huge. I mean, even with everything we did, of course the site promptly crashed. It went, like, a hundred times higher than anything weve ever had in the past. And that was after youd already hired like 25 or 30 people to beef up for it, right . Right. We have 75 employees now and were still hiring more. They were all excited. The site went down until 3 00 p. M. Saturday afternoon. Because, you know, it air s on the east coast before the west coast. When it did come back up, we had close to 10 million page views just in that short amount of time. Whats it meant for sales . We did a little over a Million Dollars in less than six days when it came back up. Wow. Everybody is wondering what comes in the box when it arrives. We have some of the clothes on the set with us. What will people see when they order from you . You get it wrapped up like a present to yourself. Women being busy, were taking care of other people, our significant others, our children. So when we shop, it should be a present to yourself. Theyre few and far between. So we wrap it in tissue paper. We put a handwritten thank you note in it. We have now stayathome moms and we have a leukemia patient that write our thank you notes for us. And those go in our boxes. We try to package it so its merchandise the way its supposed to be. And it comes in a box that has our logo on it. Its just beautifully packaged. So youre getting that highend Shopping Experience at a fraction of the price. Diana and josh, thank you both for being with us today. Thank you for having us. We appreciate it. Be sure to watch cnbc tonight. Six hours of deals kick off at 8 00 p. M. Eastern time with backtoback episodes of shank tank followed by the profit. Coming up, alibabas recordbreaking day but first fords aluminum f150 ready to roll off the lines. One of the biggest changes the automaker has gone through. Well talk to mark fields first on cnbc at 7 30 eastern time. Were back in a moment. Will that be all, sir . Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. A chinese shopping frenzy. Singles day turning into a record breaker for alibaba. The staggering numbers and investor reaction straight ahead. Behind the wheel with ford. The new aluminum fseries pickup truck. The ceo joins us live from the Assembly Line. From wall street to sesame street. The iconic Childrens Television show celebrating 45 years on the air. How the sesame street gang keeps up in the digital age. Its grover and elmo we are so excited to be on cnbc. Squawk box begins right now. No, its not sesame street. This is squawk box. Welcome back, everybody. Im becky quick along with joe kernen and andrew ross sorkin. Elmo and grover are here in the building. They made it all the way from sesame street to celebrate their anniversary with us. And you never know what these two are going to say, but we have a list of questions ready to go. Check these two out. They are upstairs in the cnbc board room. We are so excited to have them here. Theyre going to be joining us in about half an hours time. Meantime the singles day shopping frenzy is breaking records for alibaba. With just a few hours later, the site has registered over 7. 5 billion in sales. Thats right. 7. 5 billion in a single day. Last year it took an hour to hit the 1 billion. This year it took just 18 minutes. Lets check out alibabas shares. They were down by about 2 . 117. 16 was the last trade. Quick programming note for you, david faber will have an interview with the chairman jack ma. President obama opening up what will be indepth talks with the chinese president. Joining for a walk and talk on the summit in beijing. The white house saying the president also spoke to russian president Vladimir Putin three times at the summit. They talked about some tough issues including ukraine, support of syria, and Nuclear Talks with iran. Also hertz is delaying its quarterly earnings. They are in the process of reviewing their internal process for the past three years. Doesnt know how the view will look at their results. Former ceo stepped down. The bond markets closed today. But the action picks up again tomorrow with the second of three treasury markets. Here with us to break down the bond Market Action is john beinner. He is cio and head of Global Fixed Income at Goldman Sachs. He oversees more than 600 billion in assets. Youre feeling a little better, maybe, at where we are now. How high to rates have to go to be where you thought theyd be at this point . I hate to keep harping on this. Thats all right. Last time i was on, we said we were going to hit 3 before we hit 2 . Were not admitting defeat yet. No. But the reality is the u. S. Economy is on pretty strong footing. Weve accelerated and we continue to see that. Jobs tonight to be added if anything at an accelerating space. The fed is seeing this and theyre going to start to raise Interest Rates next year. And we just think the market is not up for that. Is the bond market big enough what would be an arbitrage trade. Where you have the rest of the world at lower rates than us. Why should we go up . Whos going to buy . Thats the thing. First of all, its not arbitrage. Right . So there are real differences from a fundamental perspective. Inflation here is obviously not going out of control. But inflation is looking like its accelerating. The rest of the world it looks like inflation is decelerating. So its not an arbitrage. Yes, theres higher yields here. But youre talking about buying into taking on currency risk. If its not your domestic markets. Yes, we think the dollar will continue to appreciate. But its not riskless. If youre sitting in germany and all your assets are in euro, its a risk for you to go out of the home market. Yes, theres going to be capital flows into the u. S. But if the fed is starting to normalize rates because were starting to see some froth in the economy and even more so in the Capital Markets. Then are you going to be buying tenyear notes at 2 35 when the cash rate is going to hit 2 in not long a period. It seems we continue to attract funds here with higher rates. And the more we attract, the more demand there is. And that bolsters prices here. Theres no question. I think there will be flows into the u. S. Market and i think that means the term premium will probably stay low for some period of time. Dont you make money on that too . You do. But its not arbitrage. Its still a risk, but its one, i think, we do think the dollar will continue to appreciate. But the offset to that, remember, is qe is over. And we like to think of it as we dont have quantitative easing now. We started quantitative tightening. You would concede that fortunes around the world make it unlikely that the fed needs to act really quickly to play catchup. There are other forces. There are always other forces. And yes, the fact that the rest of the world is not going is not at above trend in terms of its growth does mean that the fed probably has to do less. But the reality is that the u. S. Economy is still a relatively secluded economy. Very important trading partner to our partners. But we had a very important domestic economy which is going very well. So the fed is going to see that. While wages havent started you know, they started at the margin to accelerate a little bit. Its been like watching paint dry for wages to go up. But we think once you get into that 5. 5 Unemployment Rate which now were close to, thats generally the time you see wages accelerate. Thats what the fed expects. So all the things youre mentioning are in some sense helping the fed do their job. But if you get too much capital flows, you get Capital Markets appreciating too much. That actually could be that could create a bubble that the fed would want to avoid. So do you think the moves in the dollar have already discounted rates headed higher . The first of that anyway. Is the dollar trade still good . We think it is. Its both what were doing here and whats happening elsewhere. So you think about the yen. Yens moved a long way. We think it will continue to weaken. You have both the combination of very easy and becoming easier policies in japan and as weve been talking about, more likely than not, more tighter policies in the u. S. So you could see that as a double whammy. And obviously the markets have already moved to price allow that in. We think theres probably more. All right. Thanks. Well be back again and well talk. Becky what exactly is the 10year today . Wait until it pops up again. 235. So whats the bet . I just want to know im going to watch it. You said 3 by year end. Its good advice. Thats a tight range, but ill take that. Pick direction. I do want to know that. Im an interviewer. So am i. You had to pick i always thought they should go up. Be going up. But i totally didnt take it into account that everything is local now. Now you can claim youre right no matter which direction it goes. Pretty smart, isnt it . No, i dont think anybody anticipated that even italy and spain would be competitive. No, this year has stunned me. And you realize the pressures from abroad didnt affect as much in years past. Certainly the economy and particularly the Financial Markets have become more global. So theyre more linked. And yes, there are abilities certainly banks if they want to own other currencies. Obviously the dollar is the dominant. But in prior years theyve been moving away from the dollar. Now starting to come back with the higher yields. I dont know whether its the globalization or information or the importance of central bankers in all of our lives around the world now. Joe, pick a side. Pick a side. Im just did you hear all the things i just said . Its impossible to pick. Do i think rates from here are going up or down . Id be an idiot to say theyre going go up, but the question is when. To go to 3 . Id rather pose questions. 3. 0 by the end of the year thats a bold call. By the end of this year is look k like a heroic estimate. I think we will hit 3 within a year from now. It wasnt that long ago we had a 3 10year note. Were going to talk weather now. The first major winter storm of the season hitting the midwest hard and the rest of the nation bracing for more of the same. The weather channels mike seidel joins us now from forest lake, minnesota. Good morning to you, mike. Good morning. The one thing the rest of the country will not get is the snow. Were getting the tail end of the storm. North of here theyve had as much as 16. 5 inches of snow. Temperatures the big story too. For the next two weeks at least it will not get above freezing nap will be the second largest stretch in november. The average high here is still 44, 45 degrees. We have a light coating of snow, a little slush out here because they were heavily salted yesterday and plowed. Temperatures this morning around 20, 22. The windchills are running in the high single numbers. But as we go towards the weekend and early next week, well see lows dropping maybe below zero for the first time in november in the twin cities in 17 years. And highs will stay in the teens to near 20, more like the depths of january. Rest of the country the cold air is driving south. Its now through the arctic front. Its now through dallas. Temperatures have dumped about 30 degrees in a few hours. Yesterday we found one town that saw their temperature drop 22 degrees in 6 minutes. A big drop of the temperature for 2 3 of the country. Back here, snows going to stick around. I was reading about 1940 they had a blizzard on this day, november 11th, and the ground was covered with snow for the next 144 days into april. Were not sure if well see the grass here for a long, long time. Andrew, becky, and joe, back to you. Thank you, mike. 144 days . Hopefully that doesnt come here. Coming up next, this veterans day how one organization is helping those who served our country find jobs and launch tech startups. And fords big gamble with its topselling vehicle. The aluminum f150 rolling off the Assembly Line. Were going to be joined by ceo mark fields at 7 30 a. M. Eastern time. Phil lebeau has that interview. And check out the futures right now. Dow looks like it would open up 17 points higher. S p 500 up about 3 points. And the nasdaq 5 points. We are back in a moment. 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. E financial noise financial noise financial noise financial noise welcome back to squawk box, everyone. Lets take a look at the futures this morning. Youre going to see that right now things are looking slightly higher with the dow futures up by about 15 points above fair value. The nasdaq up by 6. Microsoft announcing its first Lumia Smartphone without the nokia name. Dropping the title just months after it bought the companys handset business. It is veterans day. Right now we want to take a moment to remember those who have served and sacrificed for this nation. We also want to highlight companies that are helping veterans ease the transition back home. Were looking at veterans in the technology industry. Good morning. Forget the stuffy job fairs we usually associate with hiring veterans. I spoke with vets in tech who are puts vets tech b skills to work. It was founded and hepping vets with reintegration services. The group focuses on the three es. Education, entrepreneurship, and employment. Vets in tech has near 4,000 members nationwide who want to be their own bosses. About 45 of veterans would prefer to start their own business. They are not afraid of risk because, you know, theyve already faced the biggest risks out there. Donald coolidge is one who started his own. He said his time serving helped to prep him for the startup world. Technology is a great space to be in. Its growing fast and its a good paying job. But its looking for Critical Thinking skills, ability to make quick decisions, work under pressure, and being part of a team. Last year the overall Unemployment Rate for vets was at 6. 6 and thats down from 7 in 2012. Back to you guys. Thank you. Coming up next, a giantsize robot. I always so robot. Its brought to you by google. We have some details of this big hunk of metal and software. Saw a preview for a movie coming out where you fall in love with this artificial intelligence. A new one . Yeah. And new pot laws for new york city. Squawk will return in just a moment unless we forget. Unless we space. receptionist Gunderman Group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Welcome back. Googles Robotic Division is very busy with its latest creation. Meet atlas. This is a 62, 330 pound robot built by googles boston dynamics. Check that out. Hes doing the crane position from karate kitd. It even has software to drive a car. Its Strong Enough to climb and also includes cameras and a laser range finder to see where its going. Still unclear if he can catch a fly with chop sticks, but hes working on it. Its unbelievable. In other google news, the tech giant signing a 60year nasa lease. Going to bay a billion dollars in rent over the period for a Historic Navy air base. The Company Plans to renovate one of the huge hangars and use them for Space Exploration aviation and robotics. And people carrying small amounts of marijuana u in new york city will no longer face arrests. Under the new policy people under people with under 25 grams of pot will get summons and face noncriminal violations. Coming up, ford goes tough. Tough aluminum, that is. The first fseries trucks rolling uf the Assembly Line. Phil lebeau is there with mark fields. Well see how this will impact sales. And then next, sesame street comes to squawk box. So ally bank really has no hidden fees on savings accounts . Thats right. Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. They take us to worlds full of heroes and titans. For respawn, building the best Interactive Entertainment begins with the cloud. This is titanfall, the first multiplayer game built and run on microsoft azure. Empowering gamers around the world to interact in ways they never thought possible. This cloud turns data into excitement. This is the microsoft cloud. Welcome back to squawk box this morning. Among the stories front and center right now, best buy announcing to open at 5 00 p. M. On thanksgiving. They plan to offer door busters including a 55 samsung l. E. D. Smart tv. Also mcdonalds recalling a happy meal toy for a choking risk. Parts of a hello kitty themes whistle can detach and be inhaled. And the Protection Bureau plans to unveil new rules for prepaid debit cards. And the new york doctor who has been receiving treatment for ebola is getting out of the hospital today. Thats great news. Dr. Craig spencer had been working in west africa treating patients infected with the virus. He returned home and was monitoring his own health when he came down with that fever. Spencer was treated at Bellevue Hospital center which announced he is now ebola free. So no one else that hes come into contact with remember the girlfriend, all the he went to the bowling alley, subway, uber, none of it. Have we passed 21 days . I dont know. I assume it is close if hes gone through the worst of it. The nurse who was in maine is now passed her 21day period. Right. And shes leaving maine. Through the virus. He went through the worst of it. He already got it. 21 days is whether anyone else if anyone would have come down with it. I think its close to that 21day time period. Thats good news all the way around. In hindsight now we think its maybe not as easy. And maybe the level of panic and hysteria right at the peak where both governors decided weve got to take it into our own hands in the state. I dont necessarily blame them for that because theyre thinking about their own state. But at that point we were all envisioning sneeze droplets at that point. And then you look at the way we deliver health here and dispose of unfortunately corpses and waste and everything else. Can i make trouble for one second . So is the cdc okay . No. Remember, everybody was very unhappy with the cdc because they said its so hard to get. We know how to handle it. I told you i was going to make trouble by saying this. You know the expression just because youre paranoid doesnt mean people dont hate you. I always thought the cdc was Dustin Hoffman and outbreak and everything that happened there. And i thought these guys would parachute in and everything would be okay. It concerned me to see some of the mistakes. I didnt want to see how the sausage was made in that process. Thats what concerned me. Lets look at the futures this morning. We have been watching the markets and it looks like the futures at least at this point are higher. Dow up by 23 points. Nasdaq up by 7. S p up by 3. 5. If you watch whats been happening with the 10year, thats the market weve been watching closely. The yield is sitting above 2. 35 . I still want to go back to this issue. Would yo go to 2. 5 or 2 . Where is the next move . What are my choices . 2 or 2. 5 . I think 2. 5 . Did you really think i was going to say we usually disagree, but i agree. All right. 2. 5 . We hope. I dont know if id say 2. 2 . Okay. People at home are going, i dont care what you think anyway, joe. Ford will start shipping the new fseries pickup truck. Phil lebeau joins us with a special guest. I love trucks, phil. Dont you . Im like tim allen sort of. Hey, guys. How you doing . Were hanging in there. How are you . Were good. Ive got a special guest for you. Mark fields. Ceo of the Ford Motor Company joining us here along the Assembly Line which theyre going to fire up in a moment here. Huge day for ford with the new fseries. These start heading into showrooms. It doesnt get bigger than this for our company. Its the production launch of the f150. Groundbreaking new truck. Im happy for the employees, the dealers, and getting these trucks in the hands of our customers. Big question because you have the aluminum panels now, youve retooled this plant and the kansas city plant. The early question is, will it be a clean launch . What are you seeing so far in the term of your rate and where the vehicle is . We are absolutely where we expected to be on the launch. Its going smoothly. You can see the trucks rolling down the line here. We have a lot of innovation in this plan. Innovation around 500 new robots, new joining technologies. Complete what we call close cycle recycling. So every piece of scrap of aluminum here gets recycled. Is it going faster than you thought it would in terms of the learning curve . Actually, the installation of the body shop went a lot smoother than i expected. And were exactly where we expected to be on that rampup curve of production. We get fuel economy standards for this vehicle within the next couple of weeks, by the end of the month. Everybody is saying it could be up in the 29 Miles Per Hour highway spp that still going to be a difference maker as fuel prices have dropping, gas prices have dropped. Well, first and foremost, what you get by having 700 pounds out of the vehicle is more capability. Thats what the truck customers want. They want more payload, more towing, and more fuel efficiency. Phil, if you go back 20 years, the biggest customer unmet need is fuel efficiency. So even at 1. 50 a gallon 20 years ago thats what customers told us. And even today we did research. Its the biggest dissatisfier. When you combine the capability and fuel efficiency, its going to do well. Lets transition to large suvs. Were seeing the demand is there as much as it ever has been. We know that people back away from large suvs when gas prices spike. What happens as theyre falling right now . When its below 3 a gallon. Does it bring people back into the large suv . I think what brings people back into the showroom on larger suvs is new product. Were launching our new versions. People are smarter these days. They know just as fast as oil prices can go up, they can go down. So they want good fuel economy. So youll see some migration as prices go up and down. But i think customers are a lot smarter these days. You cant forecast where gas is going to be 12 months from now. You do look ahead in terms of your own planning. If somebody said to you, where do you think youll be a year from now . What would you say . Its a crystal ball. Our view, our longterm view is over time the price of a barrel of oil is going to continue to go up. Its a nonrenewable resource. Now, weve seen more availability here in the u. S. In fracking, et cetera, which has changed the supply and demand dynamics. But we expect the price of fuel to continue to go up but it will go through peaks and valleys. We are looking at auto sales maybe going over 17 million next year do you look at this saying thats peak autos. The year after is the peak of this cycle . Well, we could see next year 17 million. Weve guided somewhere between 16. 8 and 17. 2 next year. When you look at the elements driving demand, youre seeing replacement demand. Vehicles, 50 of the vehicles in the nation these days are ten years or older. When you look at confidence levels, how people feel about the confidence of their employment, its getting better. When you look at Interest Rates, theyre relatively low. We feel the market could have the potential to go a little lower next year. Even if it peaks next year, keep in mind its a very healthy level and could go on for a number of years. So much of auto sales is tied in with consumer confidence. Its extremely high right now. If youve been through this business so many years, so many cycles, when do you get the feeling were near the end of the current cycle. I think when you look at the current pace of economic development, it is very supportive for very healthy levels of autos. And when you look at the age of the autos, you know, the replacement demand, it bodes well. But as we look at that, we know we go through cycles as an industry. And from a ford standpoint, were going to run a responsible business, keep our costs in line. Drive growth and revenue and manage appropriately. Mark fields, ceo of the Ford Motor Company. On the line as the first of the new fseries are rolling out. Phil, thank you very much. Mark, thank you too. Up next, sesame street comes to squawk box. Elmo and grover are making the big trip to celebrate the shows 45th anniversary. Stick around. A is for assets. B is for c is for cookie. Good enough for me. We cant wait to talk to the squawk box on cnbc. Yeah do solemnly swear that i will support and defend the constitution of the United States against all enemies foreign and domestic. You can bring back from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. How couin jellyfish, protein impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Starts at 6 30 a. M. On the vo rush hounose. Und here but for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. Welcome back to squawk box. A shot of our nations capitol right there. The futures now take a look. Dow jones looks like it would open up 22 points higher. Nasdaq up about 7 points. And the s p 500 up a little over 3. 5 points. Its a big day today. Sesame street is celebrating 45 years. It is the longest running childrens show in u. S. Television history. Today it is a fixture for kids in more than 150 countries around the world. Beyond that, a of the viewers watch it in digital formats and its Youtube Channel has a millionplus subscribers and over 1. 5 billion views. Thats right. 1. 5 billion views. Joining us now to celebrate with special guests is nadine who has brought elmo and grover along with her. Good morning hi, squawk box. It is great to have you guys here. I just have to ask you. 45 years, over 4300 episodes weve seen already. How does sesame street remain not just relevant by even beloved . Every year were asking what is it that kids need to learn this year and what we heard this year from educators was we need to teach kids how to be ready for school. The academics they could take care of but teach kids how to put up their hand when they want to ask a question. So we think about that problem and think about what are all the ways in which we can help kids learn the things they need to learn today. So theres so many things in our tool box these days. Theres the broadcast show. Theres every touch point possible. And we, you know, make a plan that lets us touch every one of those. Grover, i have to ask you. I grew up watching you. I love you. You look fantastic. Oh, thank you. How do you do it 45 years later. How does it feel to turn 45 . Me . I would not know. I would not know. No, no, no. Monsters age differently than tv shows. Like dogs . Elmos three and a half if that gives you a starting off point. Youve been three and a half forever. Its reverse dog . Lots of moisturizer. Yeah. Thats enough blue dye. And a good brush. Guys, we should ask you for a few tips though. Grover, you know youve been doing this is long time. I just wonder if you have fashion tips, wardrobe tips. Fashion tips. Look at me. Look at me. Im not wearing anything. But you sometimes put your super grover well, sure. Outfit on. Right . Sure. If you want to be a superhero, a cape is a good start. You know . You got to look the part. Absolutely. Dress for the job you would like. Thats right. Can you guys is oscar around . Where is he . Hes in his trash can. I know. Why i can smell him. Why is he so grouchgrouchy . Is it living in a trash can . That doesnt help. Everybody got their thing. You have that nice room with the closet and everything, right . Yeah. Elmo has a nice and clean bedroom. Oscar would hate it. But i just dont see why hes always i identify with oscar. I guess thats it. You live in a trash can too . No, i dont live in a trash can. My area upstairs is a little bit did sh. Mess y i . I have a question for you. In the sorkin family, we have other versions of you if you can actually believe that. We have there are elmos that look like you in our house. Including one that moves around. How do you feel about so many elmos all over the place . And are you ticklish really . Elmo is very ticklish. Oh, nadine that never gets old. This is a global brand at this point. Have you expanded in every country you could . What are the plans for the next 45 years . This is an exciting week. We launched our newest coproduction in the uk. And for the first time the whole series is premiering on youtube this friday. Its an exciting week for us. Honestly what do you see happening over the next 45 years . I really think were in an incredibly exciting time in media. I think digital and particularly for kids, touch is going to fundamentally transform the way kids connect with their content. And were really excited about turning that on and taking it to the next level. How much of what you bring in comes from the television aspect of it . How much of it comes from the International Part of it . How much of it comes from online and how much of it is from what you make off all of us buying elmo and grover dolls . I mean, really, i think the Business Models are evolving and as digital shifts we all have to be thinking about how we adapt with that. And i think its a really exciting time. I mean, for now its a lot of change. And i feel theres lots of industries that have seen that change. The music industrys been through that already and we look to those kinds of industries to kind of weather the storm. How much of it becomes digital longterm . I mean, especially for our kids because touch is as i said so fundamental to shifting their experience, i think its going to be a powerful force. Elmo, you guys use ipads and stuff now . Elmos used apps, yes. Apps. Apps. Yes. Do you use a tablet . A phablet . What do you like to play with . You know, i do not have a lot of time for all that. Because im always going outside and playing with my friends. And grovers got like 14 jobs. I was going to ask you that, grover. Over the years youve been a waiter, salesman, elevator operator, astronaut, superhero. Which job is your favorite . You really did your research. Thats a good resume. I just love the service industry. I just love the service industry. I love helping people. So anything in there, yeah. True entrepreneur. I heard that wasabi is your favorite food. Thats why elmo has no eyelids. Its hot stuff. Are you a fan of japan . Elmo loves japan. Its a cool place. What do you think of shinzo abe . About what now . Shinzo abe. What about the massive qe recently are we going to sing . Why are we here . Hey, guys. I have to ask you. Youve been working together for a long time. And obviously you are both stars in your own right. Whats it like to Work Together and how do you make sure that relationships dont ever get frayed just because youre elmos frayed right now. Well, we have a good time. Were good friends. Yeah. Were good friends. Theres no arguments or anything. They learn about that this year. About taking turns, about how to be good friends, how to share. We seem to learn that every year. Isnt that funny . Weve been teaching them for 45 years but were still learning how to share. There is a theory that everything you needed to learn about life you learned in kindergarten. You would go with that theory. Sure. That sounds good. Share, cooperate, have a snack. Smarter, stronger, kinder. Those are some things we learned. How to be stronger, smarter, and kinder to each other. I like that. That should be a slogan for somebody. You would think, right . Yeah. I know that the very first celebrity you had on air was james earl jones. Big fan of him too. Who are the favorite people you met over the years . We had some fun people this year. We had one direction. We had the first lady miss michelle obama. We had lupita nyongo. We had gandalf the wizard. We had sir ian mckellen. I dont know who that is but gandalf was there. I know literacy is huge for sesame street and that is your goal. How do you think youve changed things over the last years . We do Research Studies to check in on how much impact weve been able to have. And we recently published some of the study that really showed we had fundamentally shifted particularly in some of those countries Literacy Rate by, like, 30 . Really powerful numbers. I guess that speaks broadly to what the brand does. But also just getting into childrens homes, being able to meet with them. And i think particularly in some of those developing countries where there are kids who are not in any kind of formal learning environment that media becomes incredibly powerful. So heres a question for all the parents at home. How much screen time should kids have . Grover, do you have a view . No. How much tv should kids watch this days or play with an ipad . I think our feeling is it all depends on the quality of that experience. Like if youre busy watching television with your parent and your parent can be there to say, to kind of reinforce the learning, then its a totally different number. Then its, go for it. Its going to be awesome. If its just the kid dialing out, i think one wants to be more conservative. But with elmo, you can do hours. Honestly, take the day. Elmo would be happy to have a play date with people. Hes pretty entertaining, i have to say. Could we have a play date . Sure. Whats your friday like . Elmo will pencil you in. Thank you. Elmo, grover, you guys dont look it. You have aged phenomenally. We all wish we had monster blood in us. But we want to thank you for being here today. Nadine, thank you. Thank you so much. Thank you. And happy 45th anniversary, everybody. Thank you. We met grover before. We didnt get to meet totally spaced on that, i think. We didnt get to meet elmo. Its very early in the morning. He meets a lot of people too. Make sure you say hello to oscar. Whatever youd like to say. Are you bringing cookies . Whos that guy . What are you new . Thats cookie monsters. Its his name. Whos that guy . Whos the monster that likes cookies . Can you bring the count with you next time . We have a lot of numbers. Before we leave quickly, can you look at the camera for a second and say good morning, kyle . Good morning, kyle. Whos kyle . My son. Thank you. Okay. Well, good morning. Nobody . No . Thank you so much. Happy anniversary. Thank you. Can we go to vegas after this . It just seems i guess we cant. Coming up, what happened in vegas usually stays in vegas. Unless your Quarter Results are below expectations. Investors bet against you. Find out how much of a hit caesars is going to take. Its not his palace. Did he ever sleep there . I dont think so. Ever. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Welcome back to squawk box. We want to bring your attention to a worthy cause. Were auctioning off a chance to come to our set and hang out on our set with all of us you can watch squawk box live, take a tour of cnbc and have breakfast with us. Its to benefit the lulu leo fund. Building resilience through programs that provide meaningful relationships. You can enter your bid at charity buzz. Com lulu leo. There are stocks to watch this morning. Caesars getting hit after the Company Announced a loss. And vodafone raises its forecast. Zynga up to buy. And the popularity of words with friends and Goldman Sachs upgraded time warner to buy. Hbo is an underappreciated asset, it says. Yeah. Im still caught up in elmo. Dealing with elmo, yeah. Why dont we check out this video . Theres a daredevil caught on camera. Reaching speeds on 220 miles an hour on his rocket propelled bicycle. The bike has pedals he uses to ride onto the track. Then he ignite this pack. It took him 4. 8 seconds to reach his record speed. And an Emergency Landing caught on camera in texas. Nose gear failed to descend. The pilot made a bouncing pass on the runway. The pilot made a successful landing nose down. Good news, no injuries were reported. Coming up when we return, singles day shopping frenzy in china. Its almost over. And alibaba has scored big. Weve got a big report from david faber from alibabas headquarters. Plus look at the stock that has nearly doubled since going public. Squawk box returns with that and more after this. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. 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[ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Its in this spirit that ingu u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. Investors finding little reason to sell stocks. Well find out if this bull run will continue. She is one of the worlds most powerful women. Sits on the board of citi and comcast. Judith rhoden is here to talk about being strong. And a recordsetting day for alibaba. David faber joins us live from china with the massive Sales Numbers from singles day. The third hour of squawk box begins right now. Welcome back to squawk box here on cnbc. First in business worldwide. Im joe kernen along with becky quick and andrew ross sorkin. A deer has been fried. Im sorry. Freed. After at least six days with its head stuck in a plastic pumpkin. Oh, no. The deer had been spotted for nearly a week in mentor, ohio. Volunteers from a nearby Bird Sanctuary brought nets to catch it. It was wrestled down and the bucket safely removed. Poor thing. You can imagine when you get something stuck in your teeth. Popcorn or something and what that feels like. Just awful. Trying to drink, why did i do this. Alibaba breaking records for the singles day Online Shopping frenzy. The ecommerce site has registered over 7. 5 billion in sales. That is well above last year. 5. 8 billion. David faber will join us at 8 30 we the big numbers. Hes also going to interview jack ma at 10 00 a. M. Eastern time. 7 Million People are under winter storm warnings throughout the upper midwest. And the frigid temperatures are expected to reach the east coast later this week. We will keep you updated on the storms progress throughout the morning. Also elon musk confirming his company spacex is developing to deliver web connectivity. The development is there for microsatellites to be used for unfettered and low cost internet access. He said thered be an announcement in two or three months. Our next guest says investors are complacent and should remain cautious in the intermediate term. Continue to rise to record levels as you know. Last time you were on, we had just emerged mostly from that correction. Im calling it a correction. It was 9. 9 on the s p. There were indicators you used to measure complacency that hadnt gotten to a new place that was necessary to call a firm bottom. It was two or three weeks later. Yeah. Well, i think were kind of back to where we were when the market first went through 2000 in midseptember before the correction. You know, youre back to where multiples about 18 times trailing earnings, higher end of normal. I think you had about one hour of fear in that correction where on the day when it was collapsing to 1820 it was getting scary. But it didnt last long. And i you have because it came back fast, investors feel confident. I think you could argue theyre more calm and confident than any other time in this recovery. It didnt solve the big elephant in the room and that is we are facing the resetting Interest Rates here pretty soon. And finally reconnecting them with an Economic Cycle rather than them being priced on the fear. I think with high valuations, sort of calm outlook about the future and facing higher rates that we probably have more turbulence. Yet i think well get through it. I still think that both the economic recovery and the stock market probably have much further to go and a lot longer go to over the next few years. Over the next several months, it can still get a bit more turbulent. I would have a more cautious approach to this market right now. So, at this point, youd be waiting for a little bit of weakness to buy more, or would you be waiting for a little bit of strength to maybe free up some dry powder for what you see coming . Well, you know, its been so strong. And im nervous its going to keep melding up. Theres a goldilocks outlook right now. Which suggests weve got good growth but no inflationary consequence. Feels like the late 90s in that regard. But i think we do have inflationary consequence. When we were growing at 2 with 7 or 8 unemployment, you can have a 0 short rate structure and 2 long rate structure and get away with it. I dont think were there. Were at 3 growthplus. Unemployment headed to the mid5s. Thats inconsistent if it continues with the rate structure we have in place. Ending qe i dont think was that big a deal, but i do think resetting the rate structure is going to be more problematic for more bonds and stocks. Because the longterm outlook for stocks remains good, i wouldnt pull away from the stock market. But i would diversify differently than ive done. Id be just in more defensive sectors in the United States. Like consumer staples, utilities, energy stocks. Id still overweight materials which had been beat up. But i would put more away from the United States as well. I think theres really three strong themes in the Investment Community today. One is the u. S. Is the place to be. Another one is the dollars only going to go up. And the other one is rates are going to stay lower for longer. I think every one of those big, strong themes have a chance of being disappointed over the next year. And i kind of tilled against those themes. I put more offshore outside the United States. And id be prepared for a rate starting to rise sooner. And by more the people appreciate here over the next year. Youre kind of this weird combination of fundamental and technical analysis. And im not talking about you sitting there with charts looking for support and resistance. But fundamentally, other than inflation, theres not a lot thats bothering you. Youre just worried about the way people are approaching the market. And thats been one of your things for awhile. You have stages of you know, the depth of the financial crisis allowed us to build up a lot of fear that it was going to take years to counteract, generations to get over. As long as theyre not embracing it, its time to buy. Youre seeing that as we get to the end of that cycle. Sentimentwise. I do, joe. Im not saying confidence doesnt have further to go up. It does. But its i feel its just this is the first time it feels different. Up until now, this whole recovery has been about people fearing another armageddon and way underpricing securities on the basis of the end of the world is just around the corner. And we were trading most the time at low modables. So we had investors with cheap stocks most of the time. I think thats different today. Im not saying peak levels or anything, but its different than it was. Right. But because you have also been someone whenever we complained about the economy, youve been steadfastly saying thats pretty good. There are things that are theres a lot of positives that people are missing. I would think at this point, its even better than why you were bullish a year, two years ago. That has even gotten better. Youre basing this totally on sentiment. Well, sentiment, i think its a product of where values are. If we had to face the resetting of Interest Rates in this country and we were still at 14 or 15 times earnings when we started to do that and we had a different investor mind set out there right now, that would be a different situation. But were at 18 times earnings. We probably have the calmest sentiment about the future weve had in this entire recovery. And now weve got to reset rates. Theres this idea thats going to be a smooth process and the fed will do it slow. In a linear fashion. It hardly ever works out that way. I think the feds made pretty clear that they are not going to raise rates until they absolutely have to do it. And what that tells me is when they have to do it is when theres panic in the air. And they wont do it until theres panic forcing them to do it. And thats when they do a panicky rate hike, thats never good for stocks or bonds at least for a period of time. I just think were going to get maybe better opportunities to go back towards cyclical stocks. A better opportunity to come back to the United States in a bigger way. If im wrong, at least ill be overweight stocks in defensive areas. Ill probably underperform, but if im right i think weve got a better opportunity to load it up again for another buy and hold period which i still think is coming over the next few years. So i just think were at a different place in this recovery than weve been in the entire time. And the economy is certainly doing better, but were getting to the point to where good news is going to start to become bad news, i think, on wall street. Okay. What would you do for movember. Would you save . How would you grow your ear hair . I should just dye it so somebody can see it. How do you even keep it that length . How do you do the hipster and what is a hipster in minnesota . Its like some bizarre i mean, i dont know what a hipster in minnesota means. We got a foot of snow on the ground and blowing right in my face this morning coming down to the studio, i never every bit of hair i got on this face. And this is as good as i can do. I never heard a hipster say you bet ya or Something Like that either. Not very brooklynish. No. Do you have club there is wheres the dark shirts . Hes a displaced hipster without a home. Okay. Thanks, jim. Thank you. Gave us a lot of good you know what . Hes been right. Been pretty right. I follow a lot of guests on this show, but this is the toughest follow. To follow elmo is, its just really hard to beat that, i think. I just cant imagine beating the likability factor after elmo was on. I dont look at twitter. I dont like it. But im seeing now theyre inundating my actual email stuff. You get twitter. When i said that oscar was my kind of like my inspiration. They all think that thats i dont know oscar the grouch. They think thats funny. Sort of said i was empathetic. Although i dont live in a garbage can. Jim, thanks. His best friend is a worm named slimy. Hes cute though. I have a friend named andrew. Ooh, wow. Oh, boy. When we come back this morning, two power players in the world of media and finance. Judith rhoden is on the boards of comcast and citi group. Theyll join us after this. 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. E financial noise financial noise financial noise financial noise mim a lineman and troubleman. I work out of the stockton division. Been married seven years. I got two kids. This is where i want to raise my family. Pg e lineman, our job is to keep the power on so that our customers can go about their daily lives. If theres an emergency, well get the lights back on. I grew up in ripon and ive traveled the world with the military we can use that work ethic that the military instills in you to make a better employee. It feels great to work in the community that i grew up in. Im proud to work for pg e. We keep the power on. Welcome back to squawk box this morning. Take a look at futures right now. See how the market is setting itself up this morning. Dow jones looks like it would be up 20 points higher. Nasdaq opening up about 6. 5 points higher. President obama urging the fcc to adopt strict rules on Net Neutrality. His take is the consumer broad band service should be treated similar to telephone and power companies. Our guest host for the hour is juden rhoden. Shes on the board of citi group as well as comcast. Rhode season also the author of the new book, the resilience dividend. Being strong in a world where things go wrong. Were also joined by dick parsons. He is the former time warner chairman and ceo as well as former citigroup chairman. Welcome to both of you. Thank you for being here today. You two happen to be here on a day that we have this big news coming about what president obama has directed the fcc. Judith, i know youre a member of the comcast board. We have to ask what you think about this situation in particular. With so much in flux and policy being debated and decided and large merger also being considered, i probably shouldnt comment. Dick, you are here and i know that you can be a little more vocal about some of these things. Because im not on anybodys anything anymore. Right. Youre on my board. Well, im on judys board. If you answer this wrong, you could be on my blank list. If you want to get on that list. Something to aspire to. I get it, i just dont agree with it. I dont think the administration has fully or a lot of people who are behind this Net Neutrality are open Access Initiative sort of understand how the Capital Markets work. They want free internet. Right . But it costs money to provide these services. It costs money to have broadband infrastructure put in and made higher and higher performing. And if investors dont get a return on their money, theyre not going to invest. I think its an unintended consequence. The advocates of open access concerned, were going to slow down the deployment around the country. Youre absolutely right. That would necessitate id like to make a note of this. These guys are agreeing on something. That would necessitate the individuals promoting this understanding that the profit incentive actually says something positive that allocates capital and to return investors as something that is essential. And the idea that another brs with tariffs and paper work and deciding prices and deciding where you can build out, this is unbelievable the idea that but they always have a better idea with the ten smartest people they can bring on how to do this. Instead of the markets themselves. Im probably not as exercised about it as you, joe. But i do agree with the fundamental terms. I mean, why do you have regulation in a marketbased capitalist economy. Either there are clear abuses which we dont have yet, or theres no competition. So the government has to move in. I think im probably where joe, you were where then im going to have to change. Stay where you are. Im more where you are than you think. Stay where you are. However, when people say its a marketbased economy, when you think about, for example, cable to the home, i would argue what i want to see is more competition to the home. The reason why internet is and cable is cheaper and faster in europe, a place where we talk about socialism is because actually they have more competition. Would you be open for municipalities to say were going give them the rightofway to get there. If somebody wants to spend the money there. I watch your show. We were just talking about elon musk and theyre going to have these satellites up there and have internet beaming from more and more satellites. I think theres plenty of competition. And what will bring competition, what will bring more competition is the opportunity for more return. For more investor return. Right now this is not the cable business or the isp business when i first went to time warner where basically cable was effectively a monopoly. Now youve got competition coming from the sky in terms im forgetting. Dish. So its not are people really unhappy with requiring a level of service . Not really. Are there really obvious abuses . I dont see them. So notion of saying we need to treat this like a utility because it has to be available to all. How do you do that . You dont do that by taking out the opportunity for investors to put money do you think were behind on a relative basis . Behind korea . Yeah. Some European Countries . Yeah. Are we ahead of uganda . Yeah. Behind is a relative concept. My thought on this is i thought i saw judith nod. The camera was not on her. But i busted you. Were you nodding for andrew . My thought was if its a utility, i pay based on how much water i use. I pay based on how much electricity i use. Does that mean eventually the way we bill consumers is going to have to change. That you dont get this all you can eat free plan that to this point a lot of Cable Companies have provided . Heres what it means in gross terms. It means that the governments going to become a bigger player in terms of deciding how much to charge for whatever it is you get. But margins in the cable business are close to 90 . Right . You do recognize that just the truth in numbers. By the way, i work for nbc. Were a unit of comcast. Im a shareholder in the company. I want them to succeed. But im just laying out the basics. The other place he works, the New York Times. However, the point is actually cable and now the telcos and the satellites have done a good job of deploying Broadband Access nationwide across the country. Lots of money. Billions and billions of dollars have been invested in this. And why . Because investors see its a place where they can get a return. And the question i would ask you, where is the massive abuse that requires further intervention by the government in terms of sorting out how this resource gets allocated . Its crazy to not let the providers segment we got to talk about judys book in a minute. But segment the way the service is. Imagine if you lived in a country where there were no interstate highways and you had to go from new york to los angeles on, you know, old route 66. You had to pass through 150 different towns on your way to the coast instead of just being able to get on the highway and go. Thats in part thats just market segmentation. I dont disagree with you at all. I have to say, this is a red letter day for me. Joe and andrew. I dont disagree with that premise at all. All i vie for is more competition on the actual pipe. Because the pipe can transmit more data than satellite or lt ever will. At great cost to the providers. Okay. Now that weve resolved that issue, judith, what is the resilience dividend . If you take the premise that crisis is the new normal, that there isnt a week that goes by somewhere in the world that we dont see a cyber attack or a new outbreak of an epidemic blow, then we cant keep to the paradigm of Disaster Recovery and response. Its too expensive. We spend hundreds of billions of dollars every year in the u. S. On Disaster Recovery from natural and manmade disasters. Weve got to move to a stock that is prepared. Assess your vulnerabilities and make the assessment early. And we demonstrate over and over again in the book businesses or cities or people who make those investments actually yield a dividend of lets take walmart is actually preparing quite a lot now. And their plan is by 2020 that they will increase 600 the amount of Onsite Energy Renewable Energy that theyll have. Because they dont know what the next Natural Disaster or the next kind of terrorist shock is going to be. They want to keep their stores going. And so theyre investing now getting a triple win because theyre lowering their energy costs at the same time theyre preparing for whatever the shock is. We dont know what the next shocks going to be, so we cant prepare for a specific one. Because then were always looking in the rearview mirror. In new york after 9 11, businesses put their generators in the basement. And then after sandy, they were all flooded. So its not about the last thing. Its about preparing for anything. Thats resilience. Dick, how did you consider Something Like this when you were running time warner . Or is this a much newer theory . A newer way of looking at it . I think and i give judy credit for this. They have gotten in front of a ball thats coming down the lane. Right . Because all of the talk for so long has been, you know, what are we going to do about Global Warming . What are we going to do about Global Warming. Well, one of the things youve got to do is get prepared. Because its coming. Right . And a bunch of other things are coming. And so thinking about how you insulate and protect and enhance your ability to be resilient to come back from stress to come back from being knocked down is just the smart thing to do. And so in business they call it rusk assessment now. Risk is all the new thing. Everybodys going around not just in financial services, not just looking at credit risk but all kinds. Black swan events. I. T. Risks, business risks, reputational risks. People are beginning to do this. I just think judy has captured a phrase that puts it all together in one place in terms of what people are thinking about doing. The evidence shows its not a black swan event anymore. In flooding were preparing for the hundredyear storm. But the hundredyear storm is coming every year or every five years. So thats what we want to get ahead of. The mentality that says these are random events that only happen every once in awhile. Theyre not. Maybe any single type is still a 25year or a 50year, but with globalization and with the kind of supply chains that we have, lululemon, we probably use those workout pants. You remember what happened. They relied on a single i wont presume. Hes wearing them now. They relied on a single supplier for a Single Source of fiber. And when there was a problem in that fiber, they lost 2 billion of market gap, tremendous lawsuits. We know that 80 of suppliers now in 2014 say that their Global Supply chain is their biggest risk. Thats up 50 since 2009. So if you dont diversify, build redundancy into your supply chain, this is more than just the awareness and preparation. There are actually Things Companies can do. Judith is with us for the rest of the hour. Were going to talk about this. Dick, thank you for joining us today. Been my pleasure. Thank you for telling for setting some things straight. Thank you. Its very smart. Thank you. Coming up, how much would you pay for this roth co painting . A million, 10 million, 25 million. Well tell you how much it brought at auction next. Maybe r maybe i cant see it next. It looks like a smear of red and green or something. And then david faber is in china reporting on alibabas record sales day. And attending singles week there. Well be right back. Do solemnly swear that i will support and defend the constitution of the United States against all enemies foreign and domestic. This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Welcome back to squawk box. Heres whats making headlines this morning. Small Business Sentiment is on the rise. The monthly index rising more than expected. 96. 1 in october. That compares to 95. 2. Apple ramping up to get into the work place. Hired a dedicated sales force just for that purpose trying to outdo Companies Like hewlettpackard and dell. And best buy is now the latest retailer to announce its thanksgiving day hours. It will be open at 5 00 p. M. Local time and stay open until 1 00 a. M. Many major retailers have announced at either 5 00 p. M. Or 6 00 p. M. Local time. Of course then the employees have to work on thanksgiving. So that makes it that much more complicated. Take another look at these two roth co paintings. Selling for more than expected at an auction. Both paintings are oh, im shocked. Theyre untitled. A black cat in a darkroom. I dont know. Lets look at the first one. The first one sold for 40 million. Sunrise. Two strips of color separated by another color. Anyway, that was double the presale. The one yoour youre looking at now was sold for 35. 6 million. Another for sail today. And its expected to bring in more than 50 million. I guarantee you if this guy was still alive, it wouldnt be selling for would it, sorkin . I only have a couple of those hanging in my place. So i have to think about what the price what the value of that would be. Someone was here and i love acting like what would you call, someone that doesnt understand just a a philistine. Yeah. I love acting like one. Thats what you were over there thinking. She was pointing at me. I love acting like that. Someone did make a case for what they felt when they i cant remember the way they did it. They said they tied it to feeling brought in by society. I dont know. Some ridiculous analysis of what he was saying by painting some red here. Can you explain it to me . Not at all. You can start. No idea . To each his own . This a warshak. Its a way to read into it whatever you see. I dont see a spider. I dont see anything there. I dont see genitals. I see nothing. What do you see there . I see a creamsicle. Good. Are you hungry . Yeah. Sorkin, come on. Youll go to a Cocktail Party in the city soon and dont want to say anything embarrassing. What do you see there . Some squares. Looks like my kids did that. I know. Do you remember when you used to go to the we had carnivals and stuff. But where you squirt the stuff on the thing spinning around. How much do those go for . How about a tiedye tshirt . How much do those go for . Herd mentality. The wisdom of the crowd. Singles day. This i understand. Singles day in china. Its the Biggest Online retail day in the world. This years event already setting records. Alibaba will reap the benefits. David faber, probably exhausted, hes in china. Hes going to interview Alibaba Ceo Jack Ma later this morning. But he joins us first. So many singles, so little time, faber. Well, yeah. I know. That was the case for us about 25 years ago. No longer, joe, as i reminded you yesterday. Yes, you did. But there are a lot of single people here in china. Theres a delay so ill just keep talking. And in fact an answer to your question yesterday which was a good one, we found out theres about 250 million single people above the age of 18 in china. And theres a lot of men. More men than women. Which, again, perhaps goes to why this day is so celebrated. But theyre all buying themselves a gift, not necessarily buying them for somebody they see as a perspective made. But, man, theyre buying a lot of stuff today. As we told you yesterday, 5. 8 billion worth of goods were purchased on the alibaba platforms being the taobao markets they run. Today they marked 8. 1 billion. I think it may already be 8. 2 billion. And perhaps more extraordinary, they are now on track to have to ship at least 250 million packages in essentially a day. If you can imagine that. Put that into comparison, they do about 16 million packages a day normally. They do represent about 54 or more percent of the overall packages sent in china. So that does give you some sense here, again, as they try to take this socalled holiday global. They are also talking about over 200 countries they have received orders from on both of those platforms of having grown enormously since 2009 when they started it as a way to at least draw some attention to taobao which was their market place. I remain not single, though, joe. And probably will remain that way for quite some time, i hope. All right. David faber, thank you. 25 was it 25 . It wasnt 25, david. Lets go to 20. 25 makes us sound a little bit too old. Doesnt it . 20. Youre right. I was just being safe. You were. I know. You keep emphasizing that. Like jenny watches. Shes not watching, i dont think. Shes got more important things to do. No. No idea. Exactly. Shes at work she doesnt care. Yeah. Shes at work. And has a kid. Im looking at some rothkos stuff. Were going to talk about this. He changed as he got older. He had a lot of influences. A lot of these names i love. He went from surrealism to mythic abstractionism. And finally settled on multiforms. Which one guy looked at one of those we just saw and called it nothing short of a revelation. I can think of a lot of things short of a revelation i would call it. We will discuss it. Can i go back to andrews chop line. You talked about best buy and small business. Do you know that 25 of Small Businesses never recover after disaster . It is the single largest problems Small Businesses have. And best buy came out of a tornado a crisis. They were called sound of music, a little box store. Its an amazing thing. People thought they were the amazon library. Zblo they took all of the damaged products and set them up. They knocked down the prices to virtually nothing. And two years later they were best buy and the largest electronic retailers. You know, that mindset that adaptive capacity, a theyve gone through a lot of stuff. Amazon, all kinds of competit s competitors, some internal management problems. But they keep rebounding because they have this resilience mentality. And its right in their dna. Thats how they were founded. Were going to continue this conversation in just a moment. Much more from our guest host today judith rodin. Plus an 80s christmas classic getting a reboot. As we head to break, look at the equity futures. Looks like the dow futures up by 11 points. Squawk box will be right back. There are two reasons why i need to keep an eye on my health. Thats why i take metabiotic, a daily probiotic. New multihealth metabiotic with bioactive 12 is proven to help support a healthy immune system. Experience the meta effect with our new multihealth wellness line. Weve got some news for you this morning. An 80s christmas standard is getting a reboot. Do they know its christmas is getting rerecorded to fight ebola in west africa. Some new artist who is werent there last time around like one direction, ed sheeran, coldplay. Coming up, retailers not learning from their millions of orders that missed the guaranteed christmas delivery deadline last year. Weve got details of a new survey when squawk box returns in just a moment. Tomorrow on squawk box, retail detail meets earnings central. A closer look at the sector and Quarterly Results from jcpenney. Plus tis the season for beer. The head of a brewery talks hole i d holiday brews that bring cheer. Only on cnbc. Welcome back to squawk box. Shipping wars are heating up ahead of the Holiday Shopping season. But guaranteed onim deliveries isnt to turn this time of year. According to a new survey, 20 will guarantee christmas delivery for orders placed one to three days ahead of time. Thats up from 17 last year. Nearly half of major retailers surveyed will guarantee orders placed by december 20th. Thats up from 37 last year. What does it mean to guarantee the delivery . Warned against such 11th hour delivery promises. Yeah, i was thinking about that. There was a seinfeld about that too. At the rental car place. We dont have a car for you. But i made a reservation. But we dont have one. Hes like, its not making the reservation thats important. Its holding the reservation. Its odd that rental cars dont theres no penalty. They dont take your credit card. Theres no penalty involved. They dont seem to care. I never understood that whole business. And you are a renter. And i do rent cars. But you can just make the reservation and not show up. Its not like a hotel. Its very strange. Banks are fighting for profits against increasing regulations and fines. More now from our guest host on what it will take to get the financial industry back on track. Judith rodin is president of the rockefeller foundation. She also sits on the board of citigroup and comcast. I havent read the book yet. One thing that always seems to happen is trying to prevent, you know, too much. When something happens, our response to it usually overshoots and we end up hurting ourselves. Cutting off our noses to spite our face. I think thats right. 2008 was about a lot of things. But it was about a nonresilient Financial System globally. So if one thing goes wrong, it can take down everything. And thats the opposite of what were trying to promote in resilience trat jis. When that happens, of course overregulation is one of the responses as people get sanction. Using a variety of other potential responses like delinking the system somewhat and putting in redundancies. It wasnt about e regulations on how much cash you stockpile. Its how you build adaptive, flexible, responsive, selfregulating systems. Thats what its going to take. And you alluded to it earlier, its not preparing for the same crisis to happen again. Thats what we always do. Whats the expression . The horses left the barn or the gates. Its already happened. But its hard to anticipate the next one. And then you feel like youre preparing against things that may or may not ever happen which is also costly. Well, you have to prepare for everything. And i would argue that if you do that and you make investments that can yield benefit in the good times, that it isnt costly. Thats where it is. But thats what the resilience dividend is. Let me give you an example from s. A. B. Miller. They were finding the cost of their water going up exponentially. They talked to the Water Utility and they said it was because of the Dairy Farmers up stream. They were clearing lands for grazing and the sediment was getting in the river and it was costing them so much more. So s. A. B. Led a coalition, invested money to buy new kinds of herds that are higher producing cows so they need smaller herds. They graze differently. The Water Utility is saving millions, s. A. B. Miller is saving millions, and Dairy Farmers have a better cow. Thats the resilience div depd. Thank you. More from jew did rodin. Because youre not a philistine. Im going to call you rodan. Is that good . Ip next, wall street firms hiring wounded war veterans. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. So i can reach ally bank 24 7, but there are24 7branches . Its just im a little reluctant to try new things. Whats wrong with trying new things . Feel that in your muscles . Yeah. I do. Try a new way to bank, where no branches equals great rates. The drexel people. Good. I like these guys. Drexel hamilton helping veterans make the transition from life on the battlefield to a career in finance. Dom chou joins us with more. We initially had a gentleman on who was an analyst. That takes nerve leaving drexel in your name, then i found out how great. Its a feelgood one and one about good business. People talk about hiring veterans or training them pr. Drexel hamilton is a full Service Broker dealer. They made a huge commitment to wall street and veterans because their firm tries to target 40 of their employment population as military veterans. They want at least 20 of their total employees to be service disabled. That means wounded, in service to their country. We spoke to a number of folks here about what is going on with their firm and why they have such a huge commitment to veterans. They told us its about trying to get them jobs, trying to get them reorganized and reacclimated to civilian life. Captain john martinco runs the syndicated group there. The big challenge returning veterans have from being in iraq and afghanistan coming home and now having to selfpromote themselves. These guys are everyday heroes doing what they say is just their job, but the reality is, they need to come home and splai explain to come home aacross th what theyve done overseas. He was a career military man, went to west point, went to the army. Served in iraq and afghanistan. Came out as a captain for the u. S. Army. He talked about those challenges. Its about whether or not you can get veterans to be a bigger part of society, get them to contribute to whats going on here at home after their service. James cahill is the president of the firm at drexel hamilton. He talks about the dreams veterans have when they come back to america. Take a listen. Greatest gift we can give these people is an opportunity to have an advancement in business and put them back with their families. When you do that, it solves a lot of wounds. We saved three lives. We had people who said, jim, if it wasnt for drexel hamilton, we would not be here today. James cahill makes a great point. He says its about putting these veterans back in stable situations, sometimes that involves family, sometimes that involves professionals, colleagues around them. The more you put those people together, the more these guys can actually acclimate to life post their military service. It was a great story. We are going to have more on this throughout the day. Power lunch will take a deep dive to what this company does and why it hires veterans and makes the commitment. A perfect story on veterans day. We appreciate that. 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Lets get back to our guest host judist rodin, author of the resilience dividend. And how much i should worry about my nightmare waking up one morning finding my balance have zero in it. We should be worried. Verizon Enterprise Solutions just showed that only 31 of companies can selfidentify a breach and only 5 of retailers. So the next time youre asked to open a credit card with your Social Security number, keep that in mind. That will make you more resilient, around Holiday Season with the shopping going on, change your password foreoften. Think carefully about where and how you use your credit card and believe something bad may happen. Do you think is there a chance to win this fight . Definitely. It will take the kind of investment that i talk about yielding resilience dividend. Better work in the good time, then protection when its bad. Thanks to judith rodin. Join us tomorrow. Squawk on the street begins right now. Good tuesday morning. Welcome to squawk on the street, im Carl Quintanilla with sara eisen and simon hobbs. Cramer is off and david faber is at alibaba headquarters in china where hell speak with jack ma in about an hour. Futures look set to push us toward new record highs. The dow going for its first sixday winning streak since june. See if stocks are able