Come at 8 30 eastern time and at 10 00 wholesale trade. Well be getting Quarterly Results before the bell. Okay. Lets tell you about some of the stories that were watching this morning. Valeant said to hold a Conference Call at 8 00 eastern this morning. Its going to be providing a Business Update to investors and take questions. Town more than 40 since the short sellers report was published on october 21st. That report accused the company of fraud compared to drug pricing. Now that same short seller now focussing on did i mispronounce it you tell me. How would you pronounce it. Mallinckrodt. I thought i came close. Good for you. They call citron a far more defe offender. Shares of that company dropping near a two year low yesterday. The Company Tells cnbc its fully confident in its Business Model. They will join us live to talk about it. Also in tech news this morning, apple ceo tim cook is in italy today speaking at the university in milan. He was in london yesterday for the launch of the ipad pro. He was quoted saying i think if youre looking at a pc, why would you buy a pc anymore . No, really, why would you buy one . He suggests the ipad pro will replace a notebook or desktop for many people. Though not for me. Not for me. I need my laptop. I need my laptop. But it is an apple laptop. Im happy to have my air. Its a personal computer. Sort of i guess. He still wants us on macintoshes. I was in canada for four days and my Blackberry Service didnt work up there and i used the iphone the entire time. Although when im typing i still did you try the dictation on the emails. Welcome to the future or welcome to the current. Its fast and then you do get some real funny stuff happens too. Amusing. Yeah. Because siri is not the smartest pencil in the box. Stocks to watch today, were watching the rails. The shares moved yesterday on reports that Canadian Pacific is exploring a potential acquisition of Norfolk Southern and you kind of missed becky, im sure you didnt miss it but you saw the jobs number. Markets immediately sold. Although they didnt sell down as much as i thought. They ended up 40 but then yesterday we got, you know, sort of the delayed effect. Did you see the euro today . No, i saw the ten year note though. Yield is 107. On the euro. Wow. It was earlier this morning. Well check it out in a second. The cap shares. There it is its as simple as that. Worried about manufacturing again. The banks will do well. Ended well on friday. Yeah. We have like five weeks and we talk about that yesterday. What do you mean . A lot can happen in five weeks. The taper tantrum was three or four percent. They may have taken it off the table as of yesterday. Oh, no, 170 points. Lets just think about it. Anyway, gap posting a 3 drop in october. Same store sales missing wall street estimates. Sales of Banana Republic plunge 15 . Gap also warning that earnings will fall short of current consensus. Thats significant even on a percent. Rack space hosting better than expected results. Why did you say it that way . I dont know. Instead of just reading in a monotone. That looks like a fun word. Yeah. Company also offering some upbeat guidance and lions gate turning in an unexpected quarterly loss. Revenues also falling short. Jazz pharmaceuticals also getting hit. The company is offering disappointing guidance. Its 605. So they havent had coffee so they get lulled into wake up this morning. Right. Makes them jump a little bit. You must Pay Attention to our commercial. One of the few places you can still have a commercial that peel have to watch. We should be able to charge more for than. Elliott disclosing nearly 3 stake in chip maker dialogue semiconductor. The firm tends to vote against the acquisition and urge other dialogue shareholders to pose the deal as well. Lets check on the markets this morning. There you go. There you go. The futures are a little bit weaker this morning. Dow futures down and s p off by 5. 5. Remember their major averages again. Worst day since september 28th but youre only talking about delines of 1 . You also have the s p 500 wiping out all of the gains and the dow in the red for 2015. A big build up over the last two months and yeah now were back in the red for the year. Lets look at whats been happening with the european markets. Youll see red arrows there as well. Major averages in germany, france, and london down by. 5 . In asia overnight the nikkei was up slightly but the hang seng was down by 1. 4 . The shanghai composite was flat. Wti crude oil, this morning, up by about 10 cents to 43. 97 but crude oil down at a two week low yesterday. The ten year note, this is pretty interesting. Check this out. The yield was at 2. 34 and that was the highest level since july 24th. This morning its below that at 2. 316 . As joe mentioned, really looking at the Dollar Strength here. Euro trading at 107. 33. And if you want to check out gold prices this morning youll see that at least at this point it looks like gold prices. Wow, 1,092. 40 an ounce. Euro 107. Ten year 235. The two year, all after the really good news we had. Theres a weird auction on the three years yesterday. Im not entirely sure why. Well its weird that i mean, it is good news and we know its good news but people in the past have made the point that when you get a tight labor market and some wage pressure and things like that a lot of times the equity markets already responded to that good news leading into it and they start to worry about the next tightening phase. Right. Its something we havent seen in a long time. The last time they raised rates george w. Bush was in office. Its somebody we have long sense forgotten. Its going to be very unnerving. They dont seem as old. I know. Are you kidding me . Joining me now, the principal and investment strategist. So you know rebecca patterson. I do. Is she your boss . She is. How is she as a boss . Shes great. Thought he would Say Something else . Smooth. Wells Fargo Investment Institute and chief Investment Officer of wells fargo wealth brokerage and retirement division. So i get it guys. I got mad on the traders on friday. Guilty or innocent mad at them yesterday but you can see there will be an effect of 107onthe euro for this quarter and, you know, stocks do key on earnings to some extent and we didnt have a great earnings season over last year because it wasnt a big gain and that could set us up for not a great Fourth Quarter and First Quarter so its not completely warped to get negative on good news. No and to your point joe we had markets rally six weeks in a row. 12 from the bottom but i was just looking at the earnings numbers again last night. Its now at 107 to your point. And literally since the euro has been in existence we have seen one fed tightening cycle. You have to start looking at the haves and have notes and not even energy but utilities so youre starting to see the rotation of who is in favor, who can grow earnings and whose valuations make sense at this point. When do these newly employed people start with higher wages . Consumers should have more money. Theyre spending less on gasoline. When does that turn into a positive . Its still a half empty argument. It depends on the way you look at it. But they seem to be in a good spot. Weve seen the consumer deleverage and that sets up the consumer well adding him to the holiday season. Christmas is coming. My favorite time of the year. We havent the turkeys yet though. No, coming soon. From 08 to 13 we had the longest period of time where Consumer Credit tightened since the Great Depression now theyre starting to use leverage again and use debt which is a positive sign for the economy. Its almost completely correlated. Maybe thats coincidental. I dont know. We have seen stabilization. Market up 20 . If you think back to the summer and the 3rd quarter part of the reason we saw this huge volatility in the equity markets, risk assets all over the world had a lot to do with chinese Economic Data and as a result investors are focused on the Economic Data here and tightening policy. Election years are simpicily good arent they . Who did we have on . Yellens husband. Yeah. Big. We were talking about his book. Did you read what his point the other guy kind of balanced him out a little with what his book was about. But its not totally ridiculous to think the fed is more politic political. If thats what happens thats exactly what they have been saying. I saw a tweet this morning. Cramer, i dont know, maybe hes like the politicians, maybe he has his staff tweeting for him. Why. Hes up all the time, tweeting. No, he does it himself. When i was getting up in the middle of the night for feedings we would have races to see who gets up. He does that all the time. I used to say dont raise because we dont need one but now i have come to grips with it because it has to happen. Someone said dont waiver. Theres deflation and no reason to raise. At some point it has to happen. We need this guy. We need negative Interest Rates. I had to unblock the guy to see what he was saying. Is that the firstperson you have unblocked . Ive seen so many people and i go why cant i get that . I still dont block people that i think actually watch the show. But this person said we need more qe and negative rates. Theres still people out there that want more qe and that want negative Interest Rates. Ill tell you that you can still sway me either direction on this argument. You told me yesterday the economy was terrible. That was a joke. You told me the economy was terrible. It was a horrible economy. Youve got 7 years see im playing both sides. And then you thought it was profound at the end of that argument to say maybe i give more credit to bernanke. Duh. Yeah, how did you come up with that . Did someone say that into your ear . That maybe it hasnt been the president s policy . We were talking about whether the president gets credit or blame and i was suggesting maybe it doesnt matter at all but then you have all the president ial candidates telling you about the Economic Policy that may be irrelevant. We went down to such a low number were still not back to where we were before. So you went down to this really low number where the u. S. Economy is always going to add jobs in a seven year period but you had zero Interest Rates the entire time and we havent gotten above 2 on gdp. Its awful tnchts economy is terrible. It is. We have to keep Interest Rates low. Part of the reason that it is terrible is the uncertainty of the low Interest Rates. Politics aside you have the inflation side. Asset inflation. Asset inflation. Its clearly there. The bond market and the stock market. We have seen assets inflate. Thats what i mean. Thats something to worry about if its misallocated. I agree. Youre going to see the Federal Reserve raise Interest Rates and the reason is you look at the mandate. Theyre wacky. It may be a fake number with everything else. Unemployment. But even theyre now at 9. Right . But its the participation rat rates. Its terrible. It is terrible. Autos, jobs, housing are all hitting on all cylinders right now. Thats the important thing, right . Youre not related to diane swan are you . Im not. Weve had this conversation before. Do you know when i was in kindergarten i used to play super hero. I thought it was a video game. No. Gronk is a tight end for the patriots. Whats that dance called . Theres a i try not to dance. I might get myself in trouble. When we come back this morning T InternationalEnergy Agency out with a new call on oil prices. We have the details next. First as we head to the break heres a look back at this date in history. Monday night football. Tight end zach miller down five points to san diego with less than 3. 5 minutes to play in the game. Bears quarterback jay cutler fires a bullet over the middle to miller that makes the one handed grab. Touchdown t bears took a three point conversion. The fifth straight loss. And the chargers arent that bad. Here to stay. Oh, no, all right . More than 3,000 people left without power. Remember that one year we had the we had it before halloween and all the leaves were still on the trees and wall street branches came down because it was snowing. It was so heavy and knocked out power for a week. That one was of the reasons i wanted a generate. Siberia had a lot of snow and that indicated we could have a tough winter. What does the farmers almanac say. Terrible. Or siberian snow . Farmers almanac. But given the weather currently, its going to be long. The reason you cant do it. But this year you might. You never know. Can get cold quick. I like it like this. I want it to stay like this. Do too. By the way, check this out, an indiana family came home to an unexpected four legged guest who got comfortable in their master bedroom. The deer broke through a window and made his way into the room by walking all the way to the back of the house. The deer left the house after he jumped out of a window open by the police. No one was hurt but as you can imagine that deer left behind a mess. That overhead fan is probably dramatic for that deer. No jumping on the bed. That would get his attention. Yeah. Okay. Lets tell you some Corporate News while we have you this morning. Chipotle restaurants that closed after the e. Coli outbreak could open as soon as tomorrow. The test of thousands of produce samples turned up negative for the bacteria. They voluntarily closed 43 restaurants after reports of illness starting in mid october. Before the restaurants reopened though they must meet several requirements including tossing all food, deep cleaning restaurants and checking all for infection. Lawsuits have been filed for people sickened after eating at chipotle in two states. Everything that is in there you have to get rid of. Being more specific. Throw it up in the air. Tossed salad. I dont know. Throwing it away. And seaworld san diego, the new attraction will be in 2017. It will be designed to take place in a more natural setting. No mention over whether the k l killer whale shows will also be phased out. Between this and getting rid of the elephants, i have to get around with my kids quick because i want them to see the stuff. This is shocking. But buy yourself when youre there, a raincoat. Because you get wet. Not that kind of raincoat. But anyway. I know where your mind goes immediately. New this morning, the International Energy agency my mind was so not there. Im trying to help you. I know where your mind clearly is. Im trying to help you. Anyway, predicting a slow recovery in oil prices, jackie who just looks so innocent and had no idea what im saying. Im still a little stunned. Im trying to digest this as we talk about oil prices here because lively morning conversation. It is. Great to be here. But lets talk about this report because it really is important. Its the latest World Energy Outlook from the iea saying 80 oil by 2020. Now the agency says that the market is rebalancing lower supply growth is a result of this lower price environment. Its going to take a little while for that to happen but demand is also supposed to pick up. The report looks at several scenarios. Specifically one where prices stay lower for longer. That depends on low cost producers. Their ability to weather the storm and depends on when the middle east will scale back its pumping. On the demand side china is the main driver we have to watch. The iea is Forecasting GlobalEnergy Demand is going to grow by one third by 2040 and takes into account more Energy Efficient technologies but World Leaders are going to meet in paris at the Climate Summit less than a month away. The agency says that strong dlex direction is needed at that summit in Climate Change and Energy Related security issues. This is one of the reasons that many believe we got that rejection at the Keystone Pipeline on friday. Bottom line here, 80 oil from 4 to 5 years. This year we were talking about 80 oil by the end of this year. Were almost there. Were in the 40s. Low 40s if not starting to test the lower end of the range. Seasonally speaking well see the slow down happen in the winter at least here in the United States. A lot of the traders on the floor are telling me you wont start to see demand pick up until next spring. Question is whats going to happen in between . We had a ton of volatility when it comes to oil prices. People have to buckle up and saddle in. Jackie stay right here. Were joined also on set by john who is the Founding Partner and also a cnbc contributor and i have to say every time we see oil prices pick up to 47 everyone changes their range. 45 to 50 is the new range instead of 40 to 45. Oil is going to keep confounding them. You have been looking at this for quite awhile and thinking that prices could go lower. Still thinking that . Yeah. I just stand aside and be wrong for a few days and let it come back my day but all kidding aside. Whats not changes in the present is the glut situation on this market. Theres more and more talk about crude oil supplies. One thing is concerning. They raise the Energy Security implications of saudi arabia and the gulf states in particular being the dominant suppliers, moving from a 40 share to a 60 or 70 market share which would be terrible for us. Whats being underestimated is the ability to flip the switch on the rails. Its underestimated. We may not be loo