Holding steady at 5. 8 . And corporate news, cbs is still on dish network this morning. The two sides failing to reach a deal by last nights deadline. It will continue to be distributed by dish while negotiations continue. And sprb president obama will be announcing his for a new secretary of defense today. Andrew, good morning. Thank you, becky. Stocks to watch this morning, discount retailer five below offering a disappointing Sales Outlook for its keep Holiday Quarter. The Company Naming its new ceo. Gap, better than expected sales. Big drive, its old navy brands. And then American Eagle outfitters warning its Holiday Quarter earnings will fall short of estimates. The teen retailer sales weak mall traffic and online competition is hurting and then theres the result that the Cooper Company is missing wall streets mark. And Fiber Optics Company is posting earnings and revenue blow estimates. Among the reason they say weaker demand for Telecom Products and wiresless application receivers. Then theres smith and wesson. The company says softer demand for guns continuing to hurt the bottom line. Instead of tasting very good, what dew like better, cavee even or wait a secretary. Cavene high suggests you get a high and you crash. Well see. The stock trading near alltime highs. What i would like to remember is when howard shurlts came back to fix things and where the stock was. Wasnt it about 25 or something and the b a ristas were rude . Alex bald whip got in a fight with them or something. Manager makes a difference. The coffee giant unveiling a plan. Even alcoholic beverages, mobile ordering and a delivery service, the companys goal is to nearly double annual revenue by 2019, which would be no small feat. You can see its 81. As a result, it got down to Single Digits at one point, didnt it, in the last ten years . I think. Or teens, anyway. And, you know, eventually, he had sort of moved into philanthropy and had some other things going on. How long is that chart that weve got . I think that might okay. Thats only what is that . Thats only a one year. All right. Maybe we can eventually call that up. We should be able to do this quickly. Its coming. Bringing it. Was it about three years ago . Do you remember, was it three or four years ago . Time flies, yeah. It was way longer than that. It might be longer than that. Mine is froeden, too. Were having some issues with the computers this morning. In the meantime, lets take a look at whats happening with the markets this morning. Youll see the features at this point are indicated slightly higher. Sps up by about 9 points and or s p futures up by 3 points and the nasdaq up by about 9 points. In europe in early trade this morning, already you see some strong gains both for germany and france. Kashg up by 1. 2 . And in asia overnight, the nikkei ended up slightly. Hang seng up by 0. 7 . Oil prices, wti is below 67 a barrel. 66. 33. If you thought it couldnt go lower, you were wrong. The bond market at this point has a yield on the tenyear. The dollar this morning, at least at this point, looks like its up against the yen, up against the euro which is at 1. 1. 236. A lot of talk, but not a lot of action. Gold prices at this hour look down by about four bucks. Before you go, howard shurlts, january 2008. Oh, my god. So six years. Six years. Do you have the price . I do not have the price. And the big question once we do the math is going to be how did starbucks do relative to the market. They clearly outperformed the market in a major, major way. October 2008 . What did you say, january 2008 . Theyre continue to go drop. And i remember the narrative was that there are so many starbucks, that theyre on adjacent corners so theyre cannibalizing each other and theres no way to fix this thing. And he comes back in and says im going to do this, this and this. Then they had some bad experiences with sandwiches. The food smells, remember that . Yeah. Do you have a market cap currently . Its up ten times in value in market cap. What is the market cap now . Its Pretty Amazing that he was able to market cap is now 60 billion. How is that possible . That is amazing. Good management. It is. Believe it or not, jimmy rogers giving all of his long calls that have lasted forever at this point in terms of bonds and commodities. He said at one point that coffee was when was this . In the early 90s. 1971. He didnt found green mountain. He bought the original one, did he . Or did he i think there might have been one, but the idea of turning into a chain is one of those. And a chain like this. He went to allen and he said i want to put coffee on every corner. Allen went home and told his wife this is the most idiotic thing. Of course he said pad. No. That is a good allen story, one that i like. Well see if were going to put up a dow chart ten years from now and it will look like that. The market is focusing on the jobs report due out. The s p 500 looking to increase its winning streak. Covering the economic angle, steven rushido, chief economist at zuhou. Look how they do it for me. I just want give me give you credit . No. Put the name in. Mizuhou. All right. Let me start with you. On this. Because i figured, number one, im going to have to were making some predictions after this today. Did you know that . Yes. Im doing mine on monday. You get two more days to think about it . Yes. I want to see what you have to say and then i can come up with mine. Here is what im thinking. I dont know whether i should waste them now and actually tell, but here is what im thinking, ed. Were at zero in this country and we havent even started to raise rates. I figure next year, capital will continue to come in here. Once we start raising, think about the differential and yields should make our dollar Even Stronger theoretically. Same saying maybe the market continues to do better and maybe the saudis stabilize it at 60. I think thats a pretty good call. Really . Yeah. The United States is our favorite place to be. So i think were going to have probably another good year next year. Eventual eye valuations will limit. But with Interest Rates as low as they are, and i think a very positive economic back drop in the United States with the stronger dollar, with stronger growth even before those started. I think were going to have a pretty good year again next year. Steven, you may have some work some move of my predictions on you. The economy has done this well without washington becoming friends with each other. I dont think that necessarily gets much better when both sides double down. I can the gop is going to be mad because of this immigration thing. The president a this point has shown no willingness in the past to abandon any of his corporal. But the market has done this well without that and continues to do well without any help. Not the market, the me. Is that what you think . They will continue to put in what weve been having over the last several years. There is no reason to expect that to change. What about the three . I can its goes back to the question in terms of the currency. There are a couple of things to keep in mind with regard to that. Does europe avoid deflation . If not, your havent isy story goes the opposite direction for you. Deflation leads to a stronger euro. Right now, the bet is that the ecb is going to win on deflation. If the currency stories going exactly the opposite, this is exactly what happens in japan, why the yen moved from over 300 all the way back down to 80 and its long appreciation product. Now everyone is betting deflation doesnt take hold in europe. But to be honest with you, given the way europe is going, you have to be very careful. You know, even if you think about it, a year ago this time, everyone was telling you, europe is going to be the story of 2014, right . Germany was going to pull europe out of the slight. We were looking at deflation in europe at about 1, 1. 25 . So the answer is six months is maybe all we need. That is how touchy this situation is and thats why i think you have to be careful of some of those beds. That doesnt necessarily mean the financial flows are going to move. What really happens in that environment is you have to question whether or not you want to be in that space, especially if you have policy principal sit take hold in europe. Policy paralysis. We have a proactive policy standpoint. It doesnt necessarily go against your story about the economics and the economy because it holds the fed off from raising rates. Here is the other thing i was thinking. What Becca Patterson was talking about how strong dollar hurts our exports. I think 60 oil allows manufacturing to mrourish, anyway. Is europe that important for us to export to europe can it can hurt our growth at this point . Energy is an important commodity. Thats it. The dollar stays strong. Theyve got all kinds of structural problems that we know about in these countries. Then even in the good countries, like germany that has its economics together, theyre thrown together with this hodgepodge trying to use these same Interest Rates and the whole thing is jury rrigged. Its never going to work. Europe has been meandering for years and the deflationary pressures are accumulating globally. That is one of the big problems. 20 minutes, becky. Now youve thoroughly confused me. I have no idea what im going to do. No one will know what to do and that way they cant see if im right or wrong. Surprises. Its so unlikely, most of them dont come true. But just put them out there. So dour about europe. I am dour about europe. If hes right, is there any way to turn it around . Yeah, go there. Youre making it up. When the euro is worth a dollar, go there. Mario draghi is running things. There is still a chance. Its a political issue more than any other. I think temperature survival of the euro is can we do anything more than talk, though . I think he is trying very hard to put a coalition together to do more aggressive policy. Yesterday it sounded like they were pushing it off further and further. Its technically much more difficult to do qe with all the different nations. So its not an easy problem, politically or economically. I guess im more optimistic will the future of europe. From an investment point of view, even though we are cautious shortterm, its rel cheap relative to the United States. I think youre better off paying the more consistent growth in the United States. There will come a time when you get a better bang for your buck on the investment perspective. Steven englander is the global head of strad strategy at citi. Where would you be placing your betts for the next year . I would place them on the long dollar. In fact, i disagree with steve because i really think that the issue isnt whether europe is in deflation or not or what the Interest Rate is. The issue is the measures that the europeans are going to take to get themselves out of deflation. Right now, the only policy tools they are is money printing. They disappointed the markets yesterday be being more tentative about the schedule. All of the indications are they are going to get. His focus was on hitting their mandate and the Lower Oil Prices are going to do a lot of damage to the Inflation Numbers in the coming months. I would say that, you know, the strong dollar on the trade base just isnt that strong. Were up maybe 5 , 6 since the beginning of the year because we dont trade as much with japan as we do with china. And conversely, the euro isnt as weak when it seems when you look at the move against the dollar. The trading partners have done almost as poorly and in some cases worse than they have. I think theres a lot more policy to come. That is my question. They havent been that if we were overly impressed with both of thoughts moves, does that mean theres much further to go . Or are you saying that theyre already is that what youre saying . Yeah, all of the above. I think the evidence that we have is that the dollar seems to be respond to go catch rates. The twoyear differential versus the basis points, not the 100 yield curve. It could go a lot further. I think europes problems by the depreciation that theyve had. Will they have really be able to embrace reinflating . I think germany, since theyre in the drivers seat, theyre still so worried about inflation, i was thinking about draghi or the ecb. When theyre tight, they always seem to say tight for way too long. Remember the last time around . They stayed way too tight. Some people thought that was great. But others said, this guy, they drag their feet. Are they still thinking about the wheelbarrow full of money . I think the incident isnt tenday putting enough liquidity into the system. What theyre trying to do now is to find ways of getting money directly to borrowers. It doesnt mean the corner growth is going to get be able to borrow. So their battle is to keep europe afloat until they can get the mechanism in place to make Monetary Policy more effective. So i think that right now, the policy is absolutely focused on the exchange rate. Thats the only way of avoiding deflation. Though think longer term, get the monetary mechanism to work. Your number today . 200. Were right there. Can i ask you quickly, youve been right for a long time about the markets. Youve been very bullish. Are you equally optimistic looking at 2015 . I am. I think well see another year of double digit gains. This market lasts forever. Eventually we will have to make a transition into a lower return environment. I think we have at least another year to go, maybe more than that. Good to hear. Thank you all for joining us this morning. Thank you. When we come back, ibm firing back at its critics. People around this table i know, including myself, the cfo making his argument today. We will bring you that debate when squawk box returns in just a moment. According to str and tourism somethings, demand for lodging is on the rise. And with Hotel Occupancy at its highest level in decades, the rate for a onenight state is expected to rise next year. Just how much will a room cost you . Find out next. Ed a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. Back now with todays travelers check. On average, how much will travelers pay per night for a hotel in 2015 . 121, a 5 increase from last year. Welcome back to squawk box this morning. Ibm has been facing criticism for its buyback strategy. Abms cfo is responding. He writes in part, we are stewards of our shareholders capital. This makes us a supportable investment is to invest to earn profit, not just revenue. But fund our investments and our return of capital through the creation of profits. In the case of ibm, we are no longer raising Additional Capital equity. Ibm has managed to do both. The question, though, therefore, becomes if they had used that capital instead of for buy backs for other things, would they be in batter position . This isnt addressing the problem. People arent against necessarily buying back stock. If your revenue res driving. I forget the metric and im not going to say it. But in terms of revenue, its below where it was like five years ago. Theyre getting rid of the stuff that doesnt make it nonprofitable. Some people that i respect listen to her plan when she was on with squawk on the street. And they said they bought into it. If you tell me whether ibm has the right strategy for the cloud, i have no idea. You dont want a lot of the stuff thats basically youre just spinning your wheels with. You definitely dont want the company to be shrinking and the only way youre getting earnings is by this is addressed to some degree, but not completely. Has it gone anywhere since the big selloff . Its about 163, 160 something. Well see. If at first you dont succeed, try again. Nasa is on track to launch orion yesterday. Jane wells. Im glad they didnt tell you it could be every 10 minutes yesterday so you werent standing there overnight. Were you . You slept somewhere, right . Yes, i did. I did sleep, but everybody is excited. Currently everything is a go for liftoff at 7 05 eastern. This will be take two of this first test, an unmanned test to test all the Critical Systems of a craft that could eventually take human toes mars. What we do not want to see is a repeat of yesterday, this, seeing the orion sitting on that launchpad for a full day. Rain, clouds, winds, but right now, the weather is good to go. Another problem, have the rocket scientists solved yesterdays rocket problem . The launch was scrubbed because the delta iv heavy sat out here so long due to wind delays and that boat that got in the way, that the liquid Hydrogen Fuel that got in the tanks, negative 424 degrees fahrenheit, it caused a couple of valves to get sluggish and they wouldnt close. They have to close before you lift off. This is something that we have seen on one previous heavy launch where we had a long window and had gone into it. So were off today, going to execute the same procedures that we did after that last attempt and very confident that were going to be able to exonerate the hardware and make an attempt. Youre looking at a live picture now of the orien and delta rock out there. Were waiting to see if this happens. He has said this has happened before with the delta iv. Some were asking if maybe the valves are an actual problem. The valve has worked perfectly many times. Well have to see what happens at 7 05 been lets hope the weather holds. The launch lasts until 9 44 this morning. If they dont lift off today, theyve only rented the launchpad through tomorrow, but they wont be able to launch tomorrow because they need to get more fuel truck necessary here. So they may try to stay here through sunday, but after that they may be out of luck for a while because of support personnel issue for other launches that are planned. Back to you. Thats news to me, who do they represent it from . You rent it from Cape Canaveral. This is Cape Canaveral, an air force property. So you neg