Scorecard later this hour to see where things stand after a busy week this week. While thats happening were counting down to the feds next decision. The Central Banks twoday meeting kicking off tomorrow with the policy meeting wednesday at 2 00 p. M. Eastern time. The economists not expecting a rate hike. No News Conference after the decision this time around. That leads up to the main event of the week. Cnbcs republican president ial debate. It starts at 5 00 p. M. Eastern time. This week . This week. Are you ready . I thought you were leaving. I am no, thats tomorrow. I was leaving on a tuesday on a jet plane. Im leaving youre leaving today . Uhhuh. Whos in tomorrow . I dont know. You two. Just us. Just the guys. All right. There you have it. Michelle is here, too. Michelle is coming. When is apple . Tomorrow. Im about to talk about apple. You are . Because i dont im torn. Im split. I think its going to be very interesting because well see a lot about china. You want to but do you think he already allayed fears about china . Who. By saying china sales are stronger . Yes, but he has to back it up. If they arent strong, there will be a real problem. There will be a real problem. Tech has done well . Yeah. Tech has been doing well. The markets back to 17. 6. I no he. On the dow. Its done nothing but go up since it looked like the economy was leaking. Right. Meaning that you think its still because no. If the fed had raised, the dollar on euro is back to 1. 11 because everybody else is easing zblen right. If we had raised i think they knew everybody else was going to do another round. If we had raised wed be at 107. That means you cant raise this week, you probably cant raise in december. Did you see this the first time the profits and sales are going to show a quarterly decline yes. For industrials. Overwhelming some of the positives in aerospace and technology. Big u. S. Technology. Let me get you caught up with app zbll the anthem. No, i was going to talk about apple. We have to talk about valeant. News. Steve jobs. You cant believe a movie without a ceo movie didnt do well. I cant believe its not the biggest its like what happened to the lost arc. What happened in the movie . Im not rushing out to see no, what happened in the box office . Didnt do well, right . Why arent you surprised though . Let me tell you whats going on on apple. Reporting results tomorrow but today the company is starting to take orders for its apple tv relaunch. Should start shipping at the end of the week. Microsofts new flag ship in new york happens today while our show is on. I got a strange invitation to go while the show was on. I did, too. The laptop and surface pro four tablets will be available today. Microsoft one of the tech stocks that surged after the earnings. The stock back over 50. The other big story of the day, i think, before the bell this morning valeant pharmaceutical holding an 8 00 a. M. Eastern time Conference Call. The company will be addressing allegations from citreon. Ten executives will be included on this call including ceo michael pearson. Already denying the claims. A piece in the wall street journal suggesting that people were using fake names. Customers using fake names . No, no, no. Employees, the Specialty Pharmacy group, and then the valeant changing their names in one instance saying their name is one thing, in emails using a different name. One of them was calling themselves peter parker. Theres a lot of questions about whether, again, we talked about stuffing the channel, whether they were using this Specialty Pharma Company to effectively move drugs or product through and create fake revenue. Hes been on, right . Michael pearson, several times. What was the company he bought . It was after the alleqgan. He bought the female viagra, remember . Yes. For about a billion dollars. There was a woman who started the company who came on with him. Hes been on a couple of times to defend himself. At other points, too. It will be interesting in ackmans perspective. Do you know what his average cost is yet . I do not know. Down . I dont know. I would think from the when bought more. 40 drop although it came back from some of that. Let me look it up. General motors and the uaw reached a new contract agreement. The tentative deal avoids a strike and local Union Leaders will meet in detroit on wednesday to vote on that agreement. No details disclosed but the deal was reached minutes before midnight. Sam zell is selling apartments. Selling 23,000 apartments for 5. 4 billion. Its the second big apartment deal in less than a week. Blackstone group recently announced that its buying Peter Cooper Village in manhattan for 5. 3 million. I think we need to book some people on this. I think we need la frac back in here. His favorite business is apartments. Its weird to seeing sam zell sell. Then barry sternlick says its a great business. It was interesting because when sam was here, what was it, just a week or two ago, he kind of upheld the idea that millennials will be staying and apartments are the way forward. Its interesting to hear him discussing it and selling t. There are times when it looks like he thinks he will do well fundamental fundamentally. I bought it for this, im going to to it. See what happens. Maybe he does it because hes the price is right, i guess you could say. Another game show. Thats too divisive to talk about the final jeopardy. Im not going to do that. Im not going to do that. Okay. You can look it up on huffington post. All over that site this morning. The conservative hero this morning. Going to leave it at that. Not going to mention any no, too divisive. Too divisive. Andrew, stocks to watch. Among the stocks to watch this morning, Keurig Green Mountain will be importing through different warehouses. Toyota sold 7. 5 million vehicles passing it past volkswagen. U. S. Aa, one of the largest credit card issuers in the u. S. Dumping master card for visa. This will start in 19 1996. That would be back to the future. 2016. Usaa says the switch will allow it to offer its customers more benefits. Lets talk about the price of gasoline falling once again. According to the latest lundberg survey the average price fell 10. 5 to 2. 24 cents. The lowest average price per gallon is in charleston, south carolina. That comes in at 1. 85 a gallon. Los angeles came in the highest at 2. 87. Lets get a check on the markets once again this morning. The futures are a little bit weaker. The dow was up by 430 points. Thats a 2. 5 gable. S p was up sharply and the nasdaq. Check out whats been happening in europe. Youll see that the markets there are mixed. You have germany you have by half a percent. The cac and crance down. Asia markets closed up for the anythi nikkei. The shanghai composite was up by half a percent. Lets take a look at oil prices. Oil last week down by about 3. 44. 60. This morning up by 34. 90 cents. If you want to check out whats happening in the treasury market, ten year yield sitting at 2. 085 . In terms of foreign exchange, looks like the dollar is down across the board today. Euros at 110. 26. The dollar yen is at 1. 21. Gold prices are up slightly, 1,165. 90. People are counting on this being the worst quarter for comps. If it goes to 10 8, it wont be. There will be a new down leg in revenue that is probably one of the issues weighing on the fed. Probably one of the biggest issues. Lets talk to got a big fed person here. Did you know i was talking about you . Then we have a market person here. Right . Do my best. Were joined with issues very related. Good morning to you both. The journal today, jason im sorry, ill be right there. The journal today, it will be a down quarter most likely. In the face of the down quarter in profits and revenue at big u. S. Companies, the market has gone straight up since the bad jobs number, straight up based on what . Based on based on the expectation of more liquidity. Not more bad news is good news. No. Dying market. Although my own opinion, joe, is that whatever positive news were getting now from the market is largely going to be borrowing from 2016 unless we start to get better earnings and revenues because this is mainly because i believe the feds credibility has been damaged. I dont think i think most people have come to the realization that the feds ability to really influence the outcome of the economy is weak. The market has gone up 1600 points. Why . Its only because they knew that the fed wasnt going to go in september. Now in december. We didnt need strong earnings. We didnt need the notion that the economy is above stall speed to get it going. In fact, when it did look like it was above stall speed we were sort of flailing. Really . Listen, i think that you make a strong case but my own opinion though is to get you have to say, listen, the s p this year is flat. Gone straight up. Now its down. Its flat for the year so to get significant gains i think you have to have the real thing. What quarter are we in, the Fourth Quarter . Fourth quarter now. First quarter ears always slow. Is it setting itself up then you have the elections. Right. Is it happening again . So are we talking about now we have to wait until 2017 . Ill tell you, joe, in the markets weve gone from the feds when is the fed going to hike to the next fed move is going to be an ease. No ones really there, are they . The qe . Theyre not but theres a lot more discussion about what would it take to get the fed to engage in another round of qe or have they missed their window altogether . Im hearing that. I get that question more often now than when do you think the first rate hike is going to be. Have they just missed it altogether. So i think im getting a lot i do get a lot more questions about is the economy faltering . Are we late cycle . I think the economy is in pretty solid ground. Theres a lot more concern out there. A lot of its sparked by even the feds apparent concern about the impact that the Global Economy will ultimately have on u. S. Growth. The l. E. I. , i saw that was not great. Exactly. Can a profit recession or profit slowdown in Industrial Companies cause the consumer can it cause housing to become weak . Can it cause sought tow sal a sales to become weak . Can a profit recession cause the overall economy to slow to under 2 again . It may have caused it to slow. Whether its under 2 and possibly derail the expansion, i guess thats where im skeptical. Were we at 3. 8 . We were. If you look at consumer, domestic spending and housing has been growing better than 3 . Weve had drags from trade, of course inventories are a big part. Thursdays gdp number not good on the surface. If you look at consumer spending, housing, business spending the numbers are close to 4 . I think the u. S. Economy is stronger than people are giving stronger than the credit its getting to some extent. The concern that people have is, you know, is there going to be a blow back from the global weakness that ultimately is some of the softening were seeing now. The first hints of the recession to come. He said late hes going to keep qe going until, when, late in exactly. Theyre talking. Theyre panicked over there. Well hear in december ultimately what the expansion potentially of their Stimulus Program will be, but at rbs were looking for an extension of the program. Not yet looking for further rate cuts but we expect youll be looking at easy money out of europe all the way to 2017. I dont know what youre saying. Youre saying weve seen four years of the market going up. You would say that were paying it forward for four straight years. Youre saying that the market is now ahead of itself because of earnings and i think thats why blowing up without earnings. I think the fed has gotten to the point where it understands that further easing is probably causing misallocation of capitol. Its doing more harm than good. Its at that point. My own view is the fed is going to start tightening in december. Oh, no. We can all take a bet on that, jack daniels. But i think the fed has to get off the zero ground here because this whole discussion, frankly, has become infantile. I think its murphys law. You know, the serious stuff tomorrow night, murphy. Murphys law is not hitting a home run. Murphys law is that the worst thing does happen. The worst thing is were at zero and we cant deal with the next slowdown. The policy mistake in that regard you would say has already been made. Yes. It was made by not im not arguing for what the fed is doing. Im saying as far as the market is concerned, i really believe youre at a point for further advances in the market this is your the tina guy. Im there. This year the market has been flat despite the fact were lucky to be flat after what happened in august. Precisely. But im saying to get more juice in this you have to get the real thing. S p 500 operating earnings were 114 after the thirteenth Third Quarter of 2014. Theyre 107 now. Youre already down about 7, 8 . Most of that is energy. From here though you have to get a broadening out of the Profit Sector my view unless youre going to pound the table on multiple. We get a First Quarter slump again. How many years in a rojas it been, three or four . Are we not already on to this . To some extent at some point we have to be able to look through that. I want to get back to what i said in terms of fed credibility. There is a real issue here i think in the market. People who agree and disagree with what the fed is doing, everyone agrees that communication has been a real problem. Theres a real credibility start. People feel like weve understood. Ready to see you go in september. You didnt. Now youre saying that you didnt go in december. That may ironically be the exact worst time to go given how illiquid the market is, given the uncertainties. If you dont go, you further undermine your credibility. The fed has backed itself into a situation where they feel they must go to deliver on the guidance theyve been giving. I always say im the biggest hawk in the room and even i wouldnt vote to go in december. Just having waited so long i dont think thats the right time for liftoff. Gdp for the First Quarter, whats it going to be. 2 . It will . Im allowing for slowdown. Weve had decimal points in previous First Quarters. Some people are looking for a decimal point for the third. Third quarter that were going to get on thursday. Im close to 1. 5. What the widely watched atlantas now saying. 9. Thats a huge inventory drag on top of the trade drag. You know, thats and stronger numbers obviously. As i said if you look under nooetd that headline number it will look stronger. This week employee cost index. Thats probably the most important number of the week. Most important number of the week. For the fed. Because the one thing that changes everything for the fed is if we get wage growth. Then you have a wild swing and theyre behind the curve. Youre in the weeds. I think theres a reason that you can be grumpy cat right now. Why are all these republicans grumpy cat. Going down to 1 again . Back to 1 . I can. Why cant we stay above 3 for two quarters in a row . Huge, inventories of trade. 70 . 5 unemployment and 70 of the people think were going the wrong way. You wonder why were grumpy cat. Thats because the economy is whos grumpy cat . Thats you, grumpy cat. On squawk box in the morning. Hes got a really where do you find grumpy cat. They are ugly. They used to be in f. A. O. Schwartz. Its a toy, check it out. Its ugly. You dont want to call yourself no, im not. You saw obama say why are republicans grumpy cat. You dont want to be that. Ive been looking at valeant. He announced the stake in the First Quarter. He bought 16. 4 million shares and his average price was 143 to 205. He added to it in the second quarter. The stock had continued to climb above 200 so the stock right now sitting at 100. Looks like its going to open at 101 today. Even though he added 2 million shares, he had already bought more than 16. 4 million shares. He added 2 million when it dropped 40 . Doesnt look like he could possibly be in the black at this point. Okay. Thanks, guys. When we come back, big week ahead in washington from the Export Import Bank to voting on a new house speaker. We havent talked about the debt ceiling and whats the beef with bacon . We have some meaty news coming up as we head to a break. Check out this date in history. When youre not confident your companys data is secure, the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. Welcome back, everybody. We have some breaking news. Valeant is just out with a news release. Expecting a Conference Call later this morning an hour and a half from the company. Ahead of that they put out a news release saying based on the review conducted to date the Company Believes that it is in compliance with applicable law. It also says though that in light of the recent allegations made at philador the board of directors is going to make an Ad Hoc Committee. Now its going to concern people in a big way. You can see that stock already under pressure even before this release came out, but its not going to be as easy as saying all of these claims that are made are inaccurate. This is going to take time for the company to review this further. Theyve already spent a lot of time with their accounting and their audit and Risk Committee going through their accounting practices. This is going to take even longer. Michael pearson, the chairman of the board and the chief executive officer and ceo says he is in favor of this further review and the board has come out and made this statement. The board has complete confidence in mike pearsons strategy. The idea that this is going to take a while and its not going to be easy to back down all of the allegations that it made means its a more complicated matter. I put it worse than that. To me, the second you start an independent committee, this is not about checking crossing your ts, dotting your is, this is something different. If you knew about it and felt comfortable with it as a board, you would be fine. Right. If you start an independent committee, theres something wrong. Were already looking youre not fine. Thats the end of the story. If youre worried, you should be worried or it sounds like you should be more worried