S p futures up by 8 and the nasdaq up by 21. Quarterly results coming out from home depot. Heres whats happening. The company beating estimates by 4 cents with profit of 1. 36 a cha share. The Home Improvement retailer also forecasting full year profit and thats also exceeding estimates. Well talk about that in just a minute. Among the other big stories, the dollar hitting a 7 month high against the euro this morning. Among the reasons, expectations that the fed koul begin to raise rates next month. A lot of whale watching on wall street as some of the most powerful investors reveal their latest portfolio moves. Carl icahn swapping his stake in ebay for the same number of shares in paypal. The activist investor also disclosed his position in iag. Now we know the numbers. He has been calling for a break up of that insurer. Also David EinhornsGreen Light Capital had a tough time of it boosting its stake in apple in the Third Quarter. Hedge fund also upping its holdings of General Motors and michael korss. Well have more later this hour. Home depots market cap right now, 155. 155 billion. Ibm is 129. So someone started home depot in his lifetime and thats a reflection of the past 25 years you could either own home depot from zero to 155 billion or own ibm from 200 billion back down to 129. Really a tale of two different trajectories when youre looking at these stocks. One of the things we didnt get to him yesterday was his thoughts about share buy backs and when it makes sense and when it doesnt and the flight of capital. Why it makes sense to be in the High Growth Companies and why you see big valuations in those companies as a result. Someone told you im going to start a chain of Hardware Stores and put mom and pop out of business 155 market cap for home depot. Unbelievable. Lets tell you about stocks to watch this morning. Urban outfitters down sharply. Quarterly Comp Store Sales fell short of estimates. The stock had been under pressure during the regular trading session though because the Company Announced its purchasing an Italian Pizza chain. Some stores already have restaurants and coffee shops attack attached to them. Are Companies Going to have to lure people in. You can see the stock is down by 10 . Aig announcing that it has adopted proxy access that will make it easier for investments to nominate directors. A shareholder that will be able to nominate two candidates of 20 of the board. Aig is a target of carl icahn. That stock is down by 15 cents. Also shares of nuisance communications getting a boost after better than expected earnings and revenue. That stock up by 9 . One of the great take over targets. We thought apple was going to buy that company. They do the voice recognition. Apple has never really admitted who they use some of the licenses from but nuance has always been the company that people expect. Lets tell you about stocks to watch this morning. Enbridge cutting 5 of the work force. Now blaming the long slump in crude prices for that. Shares of wayfair this morning under a bit of pressure. Hit after Whitney Tillson knocked it calling it his biggest short position. It will trade below 10 within a year. Also chinese internet giant daidu and citic bank are working on setting up a direct bank in a push to compete with rivals. They would need to issue a license to establish such a set up. The bank would likely focus on Wealth Management products and loans to consumers and Small Companies. The broader markets this morning. You saw yesterday and we noted that europe was well behaved yesterd yesterday. Were adding it up over 200 points higher and some of that is from being down 450 points on thursday and friday and big rebounds in Energy Issues and defense stocks also yesterday but now after u. S. Markets above 200 yesterday, theres today over in europe. Qe is, you know, full on over there but you would think there would be some i mean i guess its as slow as its going to get over there but the slow growth story is already in place in europe but obviously the developments over the weekend are not going to help economic activity. Theres asia, japan, the hang seng and shanghai. Still in a good market after trading at bear market territory after a big run up and then theres crude today. A big day yesterday and chevron some of the biggest gainers in the markets yesterday. Its weird. We now seem almost correlated with the oil markets. Some days more than others it seems like. 228 on the ten year. 107 again on the euro earlier today. 106 now. 10664 and finally gold which is i dont know, people run to the dollar and to bonds at this point. They dont go into gold anymore. Now back to the latest of the aftermath of fridays deadly attacks in paris. Michelle joins us from france. Beckdy heres what happened overnight and this morning that you need to know. Two arrests in belgium. The police there saying they charged two with complicity and terrorist activity. However they do not believe the two individuals were in paris on friday night. On that note the manhunt is on going for two individuals. The alleged mastermind of the flot a plot and one of the men that rented a car found outside of the theater where so many people died. They vowed more coordinated action around isis and overnight the french did more air strikes in syria in the selfproclaimed capital of the Islamic State and thats the group that took credit or responsibility for friday nights attacks and then outside of the country of france, russia now saying that they do believe it was a bomb that brought down the metro jet plane in egypt and i bring that up only because there is this now increasing concern that when you pair what happened here friday night with what happened in lebanon are we seeing an increased pattern, a threat that suggests there will be far more terrorists attacks in the future and what kind of response needs to come either from individual countries or from coordinated action at this point from the west. Guys back to you. Michelle, thanks. After 200 plus points yesterday up another 70 this morning. In contrast to the traditional flight to safety trade weve seen after past terrorist attacks, joining us now is the chief economists at rbs and the executive director at Morgan StanleyWealth Management. Both of our guests, i guess, are looking beyond dan, looking beyond the developments in paris on friday and viewing the oil decline is good for consumers and that takes hold of you. Absolutely. Good to see you again. You can never down play the human impact of what happened on friday. It was horrible. Historically however when you look back at terror attacks they havent had longer lasting impacts on the market and markets have tended to rally in the weeks following these types of events. Now while there might be a near term hit to Consumer Spending on fears we think the two bigger drivers to your point are low gas prices and wage inflation, particularly at the low end. Thats a trend over the last several months that we think continues to persist and drive Consumer Spending in the u. S. We still have the slope in the yield curve so that lessons the likelihood of a slow down here and two of the head winds, emerging markets slowing down and the devaluations in china, both of those are starting to abate. So you think that we go into the next gear in the u. S. Economy . We could still see positive returns for the u. S. Market. The u. S. Economy can remain resilient in the face of all the overseas developments. You mentioned it a moment ago. Shanghai index is off of the lows. A lot of data stabilize on the retail sales and the way we look at it if we zoom out and think about em, theres no reason why they cant follow the same play book that occurred in previous developed market analogs. Look at the u. S. Going back to 2009. We had the dollar weakening. Japan also did qe and had weaker currencies that lead to growth as well. Europe is the latest back in january. So why cant em follow that same precedent . We think that will stimulate growth going forward. And michelle. Its crazy. Expects a rate hike either in december or sometime in 2016. Hes out on a limb here. He says either december or next year or the year after. Well, im still saying december although its 92 or 98 . One of the polls i had seen last week had 92 of economists. Thats a different story though. Which is why we talk about looking at the odds implied in the markets for fed funds rate hike. This is a reminder of why youll never see it fully priced in because something could happen in the days or weeks leading up to the meeting that could change the whole landscape. Now i dont think as tragic as this was that the paris events would yet fall into the category that would derail the baseline plan to take action this year but watching and then seeing how Financial Markets have reacted reinforces that point and watching to see the fall out in terms of financial conditions. A tightening in reaction to any global event to me is the biggest thing to be watching. We have a 250 sell off on thursday and then friday and then we didnt get through 24 hours before paris. So we still have four. Exactly. Its a very uncertain time globally now with this on front of us and who knows with market breaks and Everything Else we have to deal with. Walmart down 30 or 40 . Macys and nordstrom down 30 and 40 . Theres jitters going into the Holiday Season anyway although i think the fundamentals for the consumer look solid. So i think it will be a fine Holiday Shopping season to say the least. We have seen this from the fed before. They lead us to the edge and always something dissuaded them from taking action. They would be crazy to raise now. Well, i was going to say. Theres no inflation. The markets are uncertain. Dollar is off. 19 . They would be insane. The dollar is the one thing though. They would be insane to raise rates. I wouldnt be shock first degree the dollar sold off on the news. Lets see if i can talk them out of it. When they race. The dollar is not up, i mean, its up sharply against the euro and major currencies but for the u. S. Economy and inflation watching the dollars performance against our other important trading partners is more key and thats not the h the move in the recent couple of weeks that youve seen. Verses the Canadian Dollar . Well, a big part of that is china which of course has the peg but that for inflation in particular given how much consumer goods we import from china, the fact that youve got that kind of stable situation at least the devaluations lead to that and strengthening fwens the currency but now its been very interesting to the fact that while the dollar strengthened again against the euro which is so highly watched against china and mexico, but the bottom line is against countries that matter for our trade and Economic Outlook thats a different story. I wouldnt be surprised to see the dollar sell off on the event. When the fed goes into action. That was the case in the last three hiking cycles by the fed. Dollar strengthened into the event and then sold off actually there after. The currency market someone of the most sophisticated markets out there. A lot of folks anticipated this move. Friday is not going to be its the fourth. How many weeks away is that . Janet yellen is speaking december 3rd and actually december 2nd and december 3rd. Ahead of the numbers. Ahead of the numbers. If the fed is really geared to thinking at that time that theyre going shes going to send a very strong signal ahead of the payroll reports because she doesnt want to have a situation where the markets are on the fence. They cannot surprise the markets. What if last month is revised down. But she has to try to reverse the Market Reaction from that data. Does it really come down to one last employment print . She has to use that as an opportunity to layout a Bigger Picture of case of why it makes sense and leave it up to that employment report. Six year low in copper. But again for the u. S. And the u. S. Inflation outlook only a third are goods prices. Its much more about services and Service Inflation. 25 basis points thats the problem, right . Sitting at zero makes it seem like 25 basis points could derail the whole thing. Its the change itself. Its all very gradual. Its an inflection point. So too early for the employment figure countdown clock . When do they start with christmas . Black friday, right . We did k do that. So this is december 4th . We have to get the block up on the board. I wanted. 2 so we know exactly how long before the most important employment report in history. In history. Im going to expect debate type numbers. Republican debate type numbers. Yeah. I watched for an hour or an hour and a half. You want that hour back, dont you . No, im glad i did it. Thank you, guys. Well get the clock going for you. Well get the streets reaction from dow component home depot that had better news going forward. Plus an early loss for two Fantasy Sports giants but draft kings and fan dual says this fight is far from over. Well talk about that story next. First as we head to a break, heres a look back at this date in history. Proud of you, son. Ge a manufacturer. Well thats why i dug this out for you. Its your grandpappys hammer and he would have wanted you to have it. It meant a lot to him. Yes, ge makes powerful machines. But ill be writing the code that will allow those machines to share information with each other. Ill be changing the way the world works. interrupting you cant pick it up, can you . Go ahead. He cant lift the hammer. Its okay though youre going to change the world. Welcome back. Draft kings and fan duel losing an attempt to new York Attorney generals effort to shutdown their sights in the states. Denying temporary restraining orders. That order would have stopped the attorney generals attempt to declare the games illegal. Gambling and injunction against the companies will be heard in a state trial court on november 25th. Also the high profile lawyer is leading a draft kings case against the ag snyder man and will join us live on squawk box tomorrow to talk all about it. News out from the Food Industry this morning, taco bell announcing its going to sbich to cage free eggs by the end of 2016. Cage free chickens . Im just surprised that eggs would even try to escape. They seem i guess they could roll. Wow. Yeah. Got to keep them out of the cages. The eggs want to be free. Theyre going to start cracking open. I actually think that like the chickens are in these things where theres like wire on their feet, you know who wants to stand around on wires all day long. Ahead of the time line of many of its rivals i guess they have egg stuff in the morning. In the breakfast. But in general you dont think of tacos and eggs. Fast food chains have been under pressu pressure. Maybe chickens too. I think its got to be chickens across the board. This is a more humane way. And use meat raised with fewer antibiotics. They use the equivalent of 130 million eggs each year. Big breakfast business there. They do. Yeah. Change at mcdonalds, a replacement for the dollar menu in january. They will launch the mc pick 2 menu. Customers will be able to pick two of the following for 2. Mcdouble, mcchicken, small fries and mozzarella sticks. After that it may change the details of the offering but it will keep i will be keeping the mcpick concept. It just sounds like a sequel or something of a movie. Kind of does, yeah. In other Corporate News german antitrust authorities are investigating amazon and apple over an agreement about selling audio books. The subsidiary is the exclusive provider to the itunes store in germany. They are reporting that they account for roughly 90 of the audio books sold in the country. Got to protect all the competition in the big audio book market. Yeah. I said that sarcastically. Home depot with better than expected earnings this morning. Joining us is the Senior Research analyst of course. Good morning. So your headline, you could just say better, better. Thats it. Its another very good report from home depot and the big headline here is going to be that it is following a lot of missteps by retailers lately. This is a sbrieth spot. Home depot does 7. 3 comp in the United States. Thats despite challenging weather in october. Beat eps. Traffic was good in the stores. A very, very solid report. But this says nothing about the rest of the industry . I think home depot is a bright spot. What we have seen for awhile now has Home Improvement performed better than other area of retail. I think that macys and clothing retailers are hit harder than home depot by weather. For macys its not cold enough so people will not getting out and buying heavy coats and sweaters that are there. Home depot wants bad weather or good weather . They want a shift in seasons. They probably sold more warm weather as the temperature stayed warmer in october they probably sold more product. Outside stuff. But generally they want the change in seasons. Lowes sales tomorrow will be fine. Well see. But lowes has a misstep on the expense side. I brought a reports to our clients on a few weeks ago. If you take apart the guidance layed out there their forecasting a pretty significant flow through in their sales. The thing that im trying to figure out is are we supposed to put home depot in the same category as the clothing retailers and walmart and amazon and start thinking about the consumer at large. Home depot has always been separate from the pack and almost everything that they do seems to not have any sort of similar botic much more closely tied to the Housing Market than anything else. If my view and having it for awhile now sits separating further. Its a much, much better run company. Home improvement is different t