Before the bell, well be hearing from retailers walmart and kohls. And the bulls are hoping todays earnings and Economic News can give stocks another boost. The dow snapped its threeday winning streak. Out to the futures this morning, youll see at this point there are some strong moves in a positive direct. Dow futures are up about 60 points above fair value. The s p 500 up by eight points, the nasdaq up by almost 20 points. While we were sleeping, asia closed mixed. Take a look at what happened with the nikkei. It was up another 1 . A lot of speculation out there that the Prime Minister shinzo abe may have decided to call an early election. Also thoughts that they would be putting off the planned hike in sales tax. If they put that off, that would be another positive for the economy. Industrial production rose therein than expected last month. Shanghai was down 0. 3 . Retail sales falling slightly below estimates. If you take an early look at whats been happening in europe, some strong upward movement there, as well, with the dax up by about 1 . The cac up by about 31 points. The ftse up by 25 points. Andrew, i will send it over to you. Can you imagine . I know youre a nervous player like i am. Being on a plane, the rear door falling off like that. Its like a movie. They didnt lose pressure. The real question, im looking at a here jet, 60bcgeo. And not a lot of people still fly here jets. Thats what it was, a leer jet . A leer jet. Bono is loaded. He needs someone to clue him in. He could even get a citation 10 or Something Like that. Something tells me he might be in the market today. Well, sure. Do you remember what payne stewart, unfortunately. That was a leer jet sn . That was a leer jet. They have Global Express or even a hawker or a cessna. Not a leer jet. You have to upgrade, andrew. Can he call you . You will put him in touch with my dealer. All right. Lets talk about todays top corporate story of the morning. I assume you have children so weve talked about this. Hasbro in talk toes buy Dreamworks Animation. The toy Company Buying the hollywood studio. The toymaker would pay a mix of cash and stocks. An exact price has been been set. Jeffrey catsenberg is looking for more than 30 a share. I would tell you from the people ive talked to inside the room, theres a suggestion that he would like to have as much as 35 a share, a 35 number i should tell you was reported by the Deadline Hollywood site. That was be a huge nugget, a 56 premium. I do not know if they get there. Just a month abdomen, dreamworks fell out of talks with softbank. Dreamworks animation is hollywoods smallest studios. But among its blockbuster hits have included shrek and kung fu panda. The other side is it has been a mixed picture for Dreamworks Animation to pull it up mildly. I was talking to one analyst who said this is a company that doesnt make its hard to be film Animation Studio only. To have the sex of hits and not hits. Its expensive to make more than a couple of them a year. You would have expected them to go to a Media Company or something. Well, Brian Goldner has been enamored with hollywood. Theyve tried to build franchises, transformers is one. They also tried to build a tv network called the hub. Oh, yeah. It would have been watched in past tense the hub because it was a it was a joint adventure with discovery. They it was a failure and have now rebranded it as discovery family. Okay. So hasbro has had its own mixed picture. Disney, for example, does not make its own toys. It licenses its toys to hasbro. Hasbro just got the frozen mandate. They also do star wars and marvel. But i understand the concept that you cant be a stand alone studio. Teaming up with a toy company is a novel approach. And i talked to analysts last night. If youre a toy analyst, youre anxious because you know that you know mattel and lego have tried to do things that youve never really modelled out a company that looks like that. Dream works is such a strong practice. Its not like they do stinker movies. Maybe not everything goes straight to the moon, but it would seem like the toys with that constant but the question that youre asking, if youre an investor in a toy company, its a different business. Do you remember the hunting . I have actually starred in some Hub Properties and blake was actually my daughter was in the the haunting hour. I played a bus driver. You go to wardrobe and they did put you in graves and i was loading the very beginning and penelope. My son went in the beginning, too. They pulled up in the car, right . We had to go shoot in vancouver where a lot of people shoot. Do you think this is crazy or brilliant . I am more excited about changing the subject, i am more excited about the bronies. My little ponies . Theyre going to make some movies based on my little pony which i think would be huge because of the billings. But that would have happened irrespective of this transaction. The question is do you want the toy company owning the studio . I just want the pony movies. Of course. And its not just that they like the ponies. They like that tv series or whatever it was that ran. So the movies might be huge. It is an intriguing idea. I have not thought of the idea that you would be in a position where you owned a toy company and all of a sudden by the way, depending on how this deal is structured, you would own a if you owned a tv and film studio, all of a sudden you would own a toy company which is its own issue. Its its own challenge. And then the other issue is the chairman of the company, he would not be the ceo. You want want to make sure that Jeffrey Katzenberg stayed around for a very long time. Ride. How are you going to incentivize him to do that . At least the deal from what i understand in terms of the stom stock cash mixed would be in stock. So if you think thats a good thing. I think this is a deal that over the next several weeks will sheikh out and shareholders will vote as to whether this happens or not. Katzenberg and jeffrey will be getting lots of calls saying this is crazy. Dreamworks shareholders love it right now pause of the premium. Its 5 bucks, right. Its thrilling. If youre a hasbro shareholder, we will see if everybody wins. Theres an argument to be made that hasbro shareholders have gotten on board because its moved in that direction. And they loved the deal with disney over frozen. And if you could actually build out these different toys. That is the question, whether its or not. Among Early Morning movers today, cisco posted better than expected Quarterly Results. But the network equipmentmaker did forecast Current Quarter earnings below consensus. Among the reasons, weak sales in emerging markets and Capital Budget cuts. Were going to talk to an analyst about cisco in a couple of minutes. And then dont miss ceo John Chambers on squawk on the street later this morning. In other tech news, beta storage equipmentmaker netapp warning its Current Quarter profit will fall below expectations. The socalled oem. And jcpenney posting an expected lower quarterly loss trimming its full year sales cost, also. The dow snaps a sixday winning streak. The s p 500 also stalls, but is this a welcome pause . Joining us now is jim dunnigan. And then covering the number numbers, we have maury harris what are you expecting . Well, the unmroim claims may do up slightly. But theyre still depending to stay under 00,000. What to keep your eye on is these socalled jolt numbers, the job turnover data. What theyre showing is an unusually high number of openings. Your job openings, as high as theyve been recently, it tells you the demand for labor is strong to the supply. They cant find all the people they need to sell these job openings. So i think looking at this data, putting them together, youre probably going to have a picture that is still pretty well the labor market as has been portrayed in the recent up employment numbers and payroll numbers. What youre talking about, if there is more demand than bod s bodies, that leads to wage growth. Weve been waiting for that for quite a while. You think thats on the horizon . Wages have been up 2 this year. I think theyll be up 275 next year. 3 the following year. Weve already seen in Small Businesses more pervasive reports of wage increases and classically that has been a leading indicator of what can happen with the big picture statistics. Jim, lets talk about the markets. Yesterday closing just below these high levels that theyve been sitting at. What is this, just a pause to kind of see where we stand later today, whats happening in the economy, whats happening with the consumer . I think so, becky. Good morning. Weve had quite a rebound, as you know, from the lows we saw in october. The fears in the market, some near panic in there. So its not unexpected at these levels as we continue to make new highs here that the market takes a you talk about earnings certainly supporting where we see current valuations. I think probably the upside the buy to the upside, this market sees some difficulties in gaining some down side momentum. As we head into the end of the year, well probably drift higher. We dont see it as going appreciably higher in the near term. But in general, against that backdrop, its pretty positive for the equity markets. Its been an unbelievable three or four years watching whats happened. Every year, you look at that year long turn of the dow, the s p. And its a straight shot up. You think that will continue next year . And when do you think that actually starts to hit a little more resistance . Certainly as we look at the earnings going forward, we continue to see a positive earnings environment, probably we will start to see some expectations get ahead of the curve. So well see some disappointments, the higher levels from here. Well talk about the market, aging as a whole, whether well see a correction of 10 or more. Thats probably likely. Inner year corrections or inner year declines are probably average in that 14 areas. We havent seen that in a while. It will be some disappointments from higher levels here. But i think the general bias and the economic backdrop will support higher equities. So i dont think the bull market is dead, but well probably get some periods of consolidations and pause as we move forward. Let me ask you, if you were waiting to the last 10 decline for a time to buy in, you were not even buying at the lowest levels of the year. So you kind of missed your opportunity. Are we going to see a similar move like that . Like go ahead and just pile in now because by the time you get the 10 correction, well be more than 10 above where we are here or not . It depends on where you are. We pile all in here, but i have a plan to work my way into the markets. If youre fully invested, i would say invested. Ill all depends on where you are as an investor. I think these are fully valued here here. Okay. Maury, let me ask you about some comments that were out. The head of the new york fed, he made some comments that suggested that we would be okay leaving rates lower for longer, that its not a bad idea to have an economy run hot for a little while. Do you think that is the dominant view of the fed at this point . I think its the dominant view for probably another quarter or so. But i believe as unemployment comes down further, theyre going to talk about raising rates in the summer. So i think talking about the here and now, its the next say two committee meetings. Not going very far out into next year. Thank you both for joining us this morning. Coming up, just a little bit later, the insideide line on twf the mornings most important stocks. They are cisco and jcpenney. Plus, some scary moments from some window washers rescued from one World Trade Center. Squawk box returns with that and more in just a moment. 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. One World Trade Center in new york, you might have seen this yesterday. Firefighters rescuing window cleaners stuck 69 floors above the ground. The workers were taken through a hole cut in one of the glass windows. Thats how they had to actually get to them. This was on the 69th floor to one World Trade Center. We have a conference coming up on the 63rd floor. And then i looked at that. How much do you think these guys should get paid to do this job . Way more than theyre getting paid. What do you think . After watching this. Its normally pretty safe. Window washers, if youre on the fourth or fifth floor, all buildings need to have their windows washed. You are a man who is afraid of heights. I am afraid of heights. We put a delay on and she explained why we put a delay, in case something bad happened. But later in the day, i was watching i think it was channel 7. Is that abc . The local news. And they were channel 7 broke this story and im like, you broke the story . What, someone looked up and called you and said theres a you know, you dont break wow. Thats great, channel 7. You broke the story because someone looked up and told you that there was a problem with the scaffolding. But theyll say anything to try to take advantage of it. Broke the story . When you break a story, dont you you have to do something rather than someone calls you and you go, wow, look up there. If you were the first person out with that story and nobody else is paying attention, its possible. Anyway, thats just luck. But i just want to tell you, some of these guys only get paid 20 an hour. That know is this an inequality thing . No. I thought to myself, if im going to be up on one of those things at 20, 30 an hour there are bold, brave people. Its a tough job. Do you think you would like to be i think its part of the window. But how about the one World Trade Center. Guys walking along, and you see pictures from the antique pictures building. Theyre just, like, eating a sandwich and theyre hey, barry, whats going on . Hows the wife . Stronger constitutions than any of us, i will say. They do. If its safe, it beats digging ditches, andrew. A little zeegy. We heard about it, but do you know how many windows are cleaned every year in the city . One of to have a disposition for not being afried of heights. Im not ready to pay them 200,000 a year, either. Now to the weather and the brutal cold hitting much of country. Alex wallace joins us from the weather channel. It was colder this morning, alex, but nothing really here. The real significant stuff is, what, tomorrow and saturday . Cold . I dont know if it will be significant for you guys. You guys are pretty much used to this cold stuff. Colder, but its not going to be bone chilling, no doubt about it, as this cold High Pressure digs in now from the middle of the country. That is where a big chunk of the coldest air has been. But its sort of bleeding and oozing its way east. It is going to be chillier with those northerly winds that will make you feel as cool, as well. Highs, 10 to 15 degrees below average. Again, tolerable, but colder. Now with that cold air coming over the lake waters, that sets the stage for some lakeeffect snow. Well see some of that piling up here. Also here in the western lakes well see some snow. A couple of ditches. Expect the higher totals in northern portions of lower michigan. I also want to talk about the system moving into the west coast. This is driving in. Of course, with the cold air thats in place, guess what thats going to mean . Snow issues. We could be talking significant snow through the oregon cascades. One to maybe two feet out there. Guys, back to you. All right. Alex, its winter. Not really, it isnt, is it . Not yet. When does winter come . December 21st. Im predicting cold . No, december 21st. Im predicting winter will come on december 20th. Anyway, cisco, revenues rise 4 to 7 compared to an expected 8 rise. Shares of can i say cisco currently are weak on the disappointing guidance. Joining us now with his reaction is mike giminese. A Senior Analyst at mkm partners. And in recent years, weve seen, you know, some good, some bad. Its almost like been a tale of two cities off and on, mike. What went better in the most recent quarter for cisco . Well, this quarter went better. But when you pull back the covers, it wasnt a better quarter. Lowering price targets from 28 to 24. 4 to 7 growth is fairley aggressive. I take issue with that. It looks aggressive and the reason is because orders only grew 1 year over year on the quarter. Theyve been stuck there for the last three quarters. U. S. Markets are very weak. They turned 1 negative year over year for the quarter. So you put all this together with orders up only 1 . Stls more going on here than meets the eye. I think secular trends and networking are working against them here. Really, the quarter wasnt as good as it looks. Break down what businesses theyre involved with at this point. Some of these providers have said, look, were going the wait on building out some of these stuff to see what the fcc does or how this plays out with tom wheeler. At t said were not going to jump head long in there, extending more fiber, depending on what happens with Net Neutrality. Can they sell into that . Yes. Their business got much worse this quarter. Overall, cisco has 25 exposure to the Service Provider market. A lot of that was in the u. S. There is a pause going on here and the question is is that typical, is it something more secular . My argument is yes, theres both a cyclical element and a secular element. But this Net Neutrality issue is an issue that is causing others to pull back on spending, even more than they would otherwise. Even marveging the issue and pricing to routers which are really going on. Right now, theyre able to blame that neutr