Markets and the feds and beyond. Lets get to andrew with breaking news on valeant. Another turn, the drug maker says its ending its relationship due to the Specialty Pharmacy business practices. The company saying it has lost confidence in the ability to operate in a manner acceptable to valeant. In response it said it would shutdown operations as soon as possible. Cvs health care also dropped them. Cvs saying it will no longer use services after an audit found evidence of noncompliance. Now valeant has been facing a lot of pressure and is facing federal scrutiny as well on the drug pricing and distribution policies so this is a big issue. Also activist investor and one of the largest shareholders expected to hold a Conference Call discussing his firms investment in valeant. Philidor represented somewhere between 5 and 10 depending on whose math you were doing for valeant. This will be a direct hit on the company but does seem to be suggesting they take some steps. Another story, one of valeants largest shareholders, two of the Board Members just left the board saying we dont believe that valeant should have been such a large holding of our company. Which is interesting too. So they have been selling the stock. Trying to get out of it. Even more surprising, i believe the Board Members left last weekend and it wasnt pointed out until calls were made by the wall street journal just this week. Isnt that something that youre supposed to make sure that investors know about when independent Board Members stepped down. You would think. They havent changed it on their website. Ibm released an sec you were not here. You guys were off to boulder i think that day. Ibm announced the investigation. That was a revenue recognition issue in the u. S. , u. K. And ireland. They found out about that in august. Clearly they think sec reviews. How do you not tell information like this, Material Information that investors need to know about. This was the debate that day about whether Something Like this is material. Clearly ibms lawyers and somebody told them that they dont believe its material in terms of whatever the revenue recognition issue is and of course we dont know enough because they havent told us enough. Whats your understanding of the relationship between val naervaleant and philidor at this point. That they could buy how much of the company the big issue is they were just using philidor to sell most of their products. 10 . But philidor is now going to be done. Theyre cut on both ends. Customers and suppliers. Peter parker. I would use halloween names. Timing wise. Its mischief night, is it really . On a friday, that scares me. Yeah. Have two dogs. Im not sure. Sat in the shotgun. Carl icahn speaking up on Corporate Tax reform after pfizer concerned its in talks about a possible merger. We talked about that transaction yesterday morning. Icahn tweeted out his warning of more companies leaving the u. S. Is now coming true. He set up a 150 super pack to push for tax changes. So we will see if that does anything. Another icahn holdings, aig, the wall street journal reports the directors at the Financial Insurance giant are discussing a spin off for sale of the companys small mortgage Insurance Business and discussions are said to be going on for awhile but no final decision has been made about the unit. It represented 5 of the pretax operating profit. Icahn and john paulson, he walked by all the time. Hey, paulson, or were going to station someone out there. I want a speaker anyway. We see people walking by. He has been calling on aig, if you have a first floor studio get off my yard. Get off my yard. Get off my lawn i think he says. Thats from monster house. Monster house. Remember bones. Anyway, trying to get them to break up into pieces. Starbuck with profits of 45 cents a share. Revenue and Comp Store Sales increase. Both beat the forecasts on wall street but investors were disappointed by the profit forecast for the Current Quarter as well as its results in china. Thats interesting in what it says about the china situation overall. The chairman and ceo will discuss later on squawk on the street. Shares of linkedin soaring this morning. Results beating expectations and reversing a loss from a year ago. Revenue jumped 37 to 779 million. The ceo spoke exclusively about growth in china. Chinas a perfect example where we not only localized our growing platform. They shifted to north of 13 million today but we also created a stand alone mobile First Chinese only application and were seeing good traction with that application. We want to take a similar approach to a market like india. India is our second largest market in the world today in term of membership. Shares jumped 13 on that news. In washington the Senate Passing the budget in a vote. That measure which will prevent a default will go to the president s desk for approval. Thank you. Markets continuing to, i guess its uncertain. When is it not uncertain . But maybe even more uncertainty because the fed now hinting at a possible rate hike in december. Now they hinted before and it didnt come to pass. Still the fed is just plain timid. In fact, the most timid fed ever and that bernanke should be proud its so timid. I dont know what he means by that. I like it though. Chief economist at bank of tokyo mitsubishi. Covering the market angle is the chief strategist at t. D t. D. Ameritrade. They call you j. D. Derivative calculations. Your daughter does. Thats a fake daughter. My youngest daughter is 18. You have a fake daughter. I have a fake daughter. I watched and i said i thought she was so cute. Did they mean granddaughter . Thats what i thought. Yeah, my daughter did tweet out replaced. Chris, i agree, these guys, and thats what makes me think, weve seen in the past that its, you know, they chickened out obviously in september and who knows, are they going to do it in december or chicken out again . Theres always something that comes out, right . There was cold weather in the first quarter. They wanted to see the economy rebounded. It did and they didnt pull the trigger in june. It was china and the flash crash 100 point drop in the dow that kept them from going in september but the market doesnt want them to go either, right . Bond traders traditionally like a rally. They like seeing signs of deflation in the world. Deflation means lower yields. They make money being long bonds. So theres really not a whole lot of people arguing for a rate hike but i mean theres two real reasons they need to go. I was just out in california. You know, home prices went up 12 last year. Forecasting 12 this year. Housing is unaffordable. Mortgages should be one percentage point higher. You have fat cats. They dont want the dollar any stronger. And expense low. Who was the third group . Assets. People that have assets. Anyone that has stocks or housing or any of that. Love the asset inflation. So there are powerful people and people who want to get elected next year also dont want the fed to raise. So there are a lot of people ganged up on one side of that issue. Theres no one there for the savers. But were close. I think they can only postpone the day i mean, my biggest story now is that the Unemployment Rate needs to come down another couple. We have two more reports. What was the first goal post. 6. 5 . 51. It was a threshold and not a trigger. Theyre going to talk about it. We meant 4. 9. They could move it again. Maybe 3. 9. Might get down to 4. 0 at some point. It gets a little ridiculous. How about you . I didnt have a 4. 0. You didnt have a 4. 0 either. In terms of trading its interesting what chris says because one of the things were seeing is we have exxon and chevron out today with earnings and to your point about it being very difficult to save for retirement, stocks like that are a favorite because of the yields right now and even though we did see the probability of fed fund raise in december jump from 33, i believe it was, to 46 right after the news the other day and its held there, overall still less than 50 50, stocks with yields still remain attractive. Especially blue chip stocks. I dont see that changing. Were coming off barring a disaster today well have the best month in four years. So there has been a lot of positives overall and if you look at some of the earnings the china consumer has been stronger than people thought we would be. Look at a nike and gm et cetera. Youre seeing china still performing pretty well so i think the pressure continues to build for a rate hike. That was a pretty good direction and correction and had enough people not convinced that it was overment so many people keep saying it has to retest the lows that it got back up. Now were back up 10 . People said no, no, got to retest the lows. Thats way it does it. Now everybody is kicking themselves. Yeah. And on wednesday it seemed to me was almost Short Covering because that was all about panic to the upside. You know, you saw the s p sell off basically unchanged after the news came out and they rallied so significantly you could almost feel like it was a little bit of panic buying near the end of the day which we really havent seen. Almost every month in october wed start out in the morning a little bit lower and a lot of gains by the end of the day that snuck up on people by the end of the day. Exactly. No one believes. Is it 14 or something. Just under 15. So thats the place to buy . I think that overall, you know, im of the opinion as long as the fed is still kind of unsure, so to speak, that it should trade up near more traditional means. Wouldnt surprise me to see it go near 20 and if march is the time frame at least hold through that time. This is interesting. Peter pointing out the dow and s p are on pace for the biggest monthly points gains ever. So youre looking back at what just happened over the last four weeks. Caught a lot of people by surprise. So chris, there will be numbers. There will be numbers and they might not be they may go into the feds ability to keep them at zero again. What did we see durable goods number wasnt great but there were claims that numbers are good. Do you expect the unemployment theyre the lowest since the 1970s. Why is that not a proper statistic that they should put the labor market is at normal. Gdp 1. 5 but it was just a trick of inventories so yeah, the economy is looking good. The interesting thing to me is how some of the policy makers have changed. Some of the doves have said now hah the labor markets at full employment and, you know, theres so much focus on the jobs report but were looking for 200 plus to be a good number that the fed could go and now the policy makers have come out and said 140,000 jobs per month is fast and strong enough. So i mean, the i think this is means theyre getting very very close. They have run out of reasons. Inflation wont stop them, low wages wont stop them. December is probably it. Okay. All right. Madison avenue, they expect us to buy their products. Do you remember do you remember stephanie and andre and theyre like oh look. Theres their kid. Its a cute little kid that looks just like andre. That wasnt their kid . No. I dont know if they have a kid that age but they make us all think of it and you let them do that just so you could sell more of your products. I understand if you dont necessarily want your kids thats not what it is. This kid is how old . 5. Very cute. Theyre misleading us. If your daughter was five you would have used her for the commercial. She looked like my daughter at 5. Madison avenue. Wonder why we have problems. I dont believe anything anymore. Coming up, the leaders are still on the trees. The calendar says its still october. But for target and walmart its beginning to look a lot like christmas. Thank you for the music. The retail giant rolling out big holiday plans. We have the details next but first take a look at this date in history. Macys will be open for business on thanksgiving. They have a lot of things like that. I still say that like a big new york parade would be something that would get everybodys attention. They didnt think about that. I dont know if they have taken me up on that. It would be everyone in the city. Great branding opportunity. Dont you think . Sure would be. Working on it. Really rushing now. Andrew. It may be just a day away from halloween but never too early to Start Talking about christmas. Were now just 55 days away from the very big day and target and walmart have their game plans. Courtney is here with the details. Andrew. I got microphone on. You need that for tv. While many schools are holding their halloween parades today its the biggest time to roll out the holiday strategies but there are stark difference wes noticed early on. Target again offering Free Shipping for online orders with no minimum purchase starting november 1st until christmas but walmart is keeping its 50 minimum for Free Shipping. They are rolling back what they say thousands of prices for the whole season beginning november 1st while targets focus is more on exclusive products in decor, apparel and gifting categories. Walmart hinges on making shopping easier during the Holiday Season and walmart will not be beat on price. They will react if necessary during the season. Target leaves out its strategy through a story telling Multimedia Marketing campaign with the heaviest investment on Digital Advertising in the companys history. Target is partnering with a company to allow consumers in 200 countries to shop its website this season. Both walmart and target enhanced their holiday wish list apps and both are forecasting star wars merchandise and drones to be among the hottest sellers. Stay here. A lot more to talk about this. Joining tous to talk about the Holiday Shopping season, lets get more on what to expect from jan rogers. And he is also a cnbc contributor. Thanks for being here. Its a pleasure and yes were right into the season almost already. No, no. Were already thinking about the season. Cant say its right around the corner. We think about november 1st on as the season and were there. The season is starting now. Youre really i bought my first holiday gift. Are you kidding . No. What do you think is shaping up for the Holiday Season . Im more optimistic than most. The average optimism is 3. 7 growth for the Holiday Season. Im at 4. 5 . Theres a few people at 5 or 5. 5 and the reason they are is most people are forecasting gift giving up to be up about 4 but selfgifting is going to be up more than that to lift it to the 4. 5 range. Why do you think people are going to spend . Because to this point weve seen consumers saving a lot more and spending on other things like experiences or dining. What changes it to the point where they actually get back and start doing what people have been expecting for about a year. The bad news is experiences in dining are in the 4. 5 and i think restaurants are going to be up about 7. 5 this Holiday Season. I think apparel is going to be up about 2 . But thats because deflation in apparel is 3 . So you get about 5 growth in units which would be a goodyear if you werent deflating at 3 on the price. So i describe that kind of jokingly as the effect even though theres only one at the moment. But its really the h m, the zara, low end old navy gap christmas. They push the prices down so were not going to see the lift we would see in sales otherwise but the units will be fine. The bad news is you dont make your living on units. You make it on growth and sales. It takes a while to put pressure on prices even though we have seen a stronger dollar. A lot of the contracts are so far in advance theyre not getting the benefit of lower costs. Is that the case across the board . I watched terry saying that and i can guarentee you the folks at macys are renegotiating as fast as they can. Most of the deals can be renegotiated every time theres a new delivery coming up and when you see that big strange, the big strong retailers, walmarts, targets, macys, et cetera renegotiate the numbers. Youll see some benefit there t. Bad news is its all getting past the consumer. Who is going to lose. I think that the mallbased retailers. People inside the mall, the gaps, the ann taylors, the chicos, those people trapped inside the mall where traffic is going down, 4. 5 to 6 , maybe 7 for the holiday because the biggest drops in traffic have come in the Fourth Quarter every year well see a big drop again this year. If youre inside the mall and youre not a destination, you arent living very well off of the traffic and if thats what it takes youre not going to make it. If youre foot locker and youre a destination inside the mall its probably fine. If youre all the other people in the mall not so good. You started saying gap and old navy and you started to take it back. What was going on there. A lot of the Old Navy Stores werent in malls and i said maybe im talking about something that doesnt exactly apply but the concept is the same. Where does gap land . Gap is going to have problems because gap inside the mall is suffering from the fact theres not as much traffic. Old navy has fierce competition now at all the price points so even though i think theyre doing a good job i just dont think a good job is enough. There is some Pricing Power in certain products. Target was talking about how they bought deep into leather accessories goods. 50 more than last year and theyre marketing up the price. A nice looking tote 99 and they dont think theyll have a problem selling that through. Thats a high price for them. It is but they sold so well last year that they believe they can sell through. The accessories business in general is not as much this year. Were not seeing growth in accessories like we have been seeing. It outgrew for years and its not happening now and high end goods, the michael kors and coaches and all of that are not seeing strength that business. Target may win that game only because they were so bad at it and now theyre going to be better at it. I give them credit. Target has done a good job. They have better product. They have better display. Theyre doing a better job inside the store. Theyre putting in mannequins which lift sales by 30 . It took t