Producers about a planned output cut. Wti has fallen under 50 a barrel. Right now 49. 43. As for stocks to watch, chep ch chipotles Third Quarter profit falling. The samestore sales fell nearly 22 , worse than expected. They have forecast sales to rise in the high Single Digits in 2017. Panera breads Third Quarter results beating forecast. They were helped by price increases on its menu and it is raising the fullyear outlook. That stock seeing a nice pop. Pandoras Third Quarter earnings falling short of estimates. They are also cutting the fullyear guidance as the number of active listeners fall and costs rise. Akamai rising 6 beating forecasts. The company, which helps speed up the delivery of content over the internet was helped by Strong Demand for its Cloud Security products. Pandora, whats the problem . Apple . I dont know if its apple, i think its more of a spotify thing. Spotify is doing well . Its just a fraction just split up now. Its a tiny thing. What are people using . Do you pay . Hes one of the apple music people. He came late to the streaming game. But im good at it now. I listen to whatever i want to. To comes into the phone. That means youre good at it. Comes right into the phone. I was wondering if that was ailing pandora. I think its an advertising thing. A pay thing. I think apple music clearly has to be a piece of the problem. But theres a lot of larger things going on. Do you being crazy, eating like six doughnuts when they come in but not eating a taco bell taco, i would say chipotle has problems with the taco bell innovations. The first day we were talking about the breakfast type stuff. I got a 12pack just for you. I was trying to be good. I didnt have one. The taco shell was almost a doritotasting taco shell with the mystery meat and the it was unbelievable. Im just saying joseph, if it makes you feel better, i was at a doughnut store at 19th street. You didnt eat. I inhaled them. Thats your weakness. Yes. Interesting weakness. You and homer. More stocks to watch. Vertex pharmaceuticals reporting narrow Third Quarter loss beating forecasts as sales were up 36 percent. Express scripts narrowing the guidance for the year. They received subpoenas for information about its relationship with Drug Companies and charitable foundations and specialty pharmacies. Juniper networks reporting Third Quarter results that Beat Estimates. The Computer Network company also forecasting higher than expected Fourth Quarter numbers. Edwards lifesciences reporting Third Quarter revenue that missed forecasts due to lore than expected sales of its minimally invasive heart valves. Particularly outside the u. S. What are those made out of . Pig heart valves. Weatherford International Posting a huge Third Quarter loss on charges. The oil drillers results did miss forecasts. As we mentioned at the top, apples profit beating the street during its fiscal fifth quarter by the Company Posted its third consecutive decline in quarterly revenue. Here is tim cook on the Conference Call yesterday. Its very hard to gauge demand when youre selling everything youre making. Well find out more through the quarter. Were confident enough to give you guys guidance that were returning to growth this quarter, which obviously feels good for us. And from a longer term point of view, out of the 90day clocks, and so forth, we are very bullish on china. Joining us now is robert bairds Senior Research analyst, will power. You were on that call, i imagine, listening to what time hook had to say. It was their hope. Did you take hope away from this . Good morning. Thanks for having me. Absolutely. I think, as you look at the supply challenges theyre facing, the results look pretty good. You have to step back. If they deliver to the numbers they delivered last night relative to expectations a couple months ago the stock probably would be up. The stock moved up in front of the print on the back of the samsung challenges and the u. S. Carrier sport they got with the initial launch of ephone 7. With rising expectations, they didnt have quite the upside. I thought the december quarter guidance looked encouraging. They are expecting a slight return to growth. I think, you know, our bet is that that growth accelerates in the next cycle. The next cycle, you mean the next phone cycle . 2017 2018 . We are expecting slight growth this year beginning in the december quarter. Something akin to call it 1 . As i said, very slight. That growth accelerating as you move into whats reported to be iphone 8. Youre right that would be september next year. So, a year from now. You would see an acceleration of that growth. In the meantime, youre getting paid to wait with 50 billion of free cash. A Sticking Point on the Conference Call was a step up in r d spend. That was a sizable increase for the quarter. There was a point made on the call that perhap the r d spend may not be as efficient as before. Are you getting enough from the company about innovations down the road and that the money theyre spending will pay off in terms of ways to diversify the revenue stream . Thats a good question. They have stepped up the spending. Arguably we have not seen the fruits of that today. As you look at r d, a lot is being spent for products that will be out in three, four, five years. So one thing you are getting paid for here in mart is the ca part is the car front. What do they do with the car . What do they do with tv . Elements theyre look at and working on. Partly because of that and further innovations with existing products, you are seeing a step up in spending. Thats something were okay with. What do you think the stock is worth now . 1. 15. We raised or target price to 1. 33 overnight, based on 12 times counter 17 earnings, plus current net cash. 12 multiple is a big discount to the market, but it traded at a discount to the market for some time. You look here, its 1011 times forward earnings. Will, call options, you buy one, you know what it costs. You can lose it. Its not that much. They go into the car business, you have no idea how much that option costs. That thing has unlimited thats not a regular call. Thats like a naked call going short or something. Thats unlimited risk if they go in the car business. They would have to be crazy to try to go into the car business. So 63 of the revenue is from the phones. But these revenue numbers, my problem with apple has always been the law of large numbers, how you keep up. Its not an annuity to do 50 billion a quarter. They did 50 billion again almost in revenue. Down 9 . For the next quarter talking revenue up near 80 billion. Thats a powerful, powerful company. A powerful brand. I dont know about whether it gets a trillion dollars or not. Were not betting on that either. Theres uncertainties out there. I guess as i think about the call option, i dont think youre paying anything for it. Youll pay if they try to do it. That could be like buying a boat that could be a hole in the water, all you do is pour money into it. I think as we look at most products they rolled out, they have rolled out products where they think they can make this is a car. Not a phone. You know, you need elon musk to do a car, dont you . I dont know about elon musk. You love elon musk. I do love elon musk. Hes like midas to you. Not everything has turned into gold yet, but he pushed the human race forward. Thats what i like about musk. What product has apple put out in the past several years thats been new, derived from their r d thats impressed you . Well, you know, i personally like the watch. I think we all recognize its not moving the needle. Overall that market has been smaller than some might have surmised. Outside of the watch, im not sure so your new price target is based just on phone growth when theres some thought out there that 80 to 90 of high smartphone users in china, they already have a highend phone . Its almost a fully penetrated market . North america is almost fully penetrated . Where does it have left . India . Will india take to you that higher level . Whats driving the stock . I think part of it is the annuity element. These phones are designed to work for two, three years on average. So you continue to build this bigger installed base that builds in this annuity piece of the business where you get this natural upgrade, even if it is lengthening. That piece alone helps. India remains extremely early. With 4g Networks Building out that opens up opportunities. Well see the we know the income levels of different demographics there. I still think theres opportunities. Were not looking for double digit growth in smartphones, but they can generate 50 billion in Free Cash Flow which looks powerful. The other thing we call out here, you touched on it with the pandora comment earlier, look at Services Revenue stream of 6. 3 billion, up 24 year over year. App revenue thats low double digit, but percent is revenue. A small percent of revenue, but an area where they continue to make progress and speaks to the strength of the ecosystem and the basic customers they have. Will, we always appreciate your perspective, especially at this early hour. Thanks. Thanks for having me. Well shift to the macro look at things. Despite weakness on tuesday, our next guest said theres potential for a strong yearend rally. Joining us is tom lee, managing partner and head of research at global advisers. Is that for this year, 2325 on the s p . Its happened it could happen. Something big will have to happen. I was looking at i looked at the dow. 18,160. That was december of 2014 we were at 18,160. Were going to hit two years without anything. Any forward progress on absolute terms. This is like boring. I think thats how investors are feeling about markets. Thats what clients are telling us. The markets have gotten dull. Shrugging off earnings. Shrugging off bad earnings or good earnings . Overall its been one of the better earnings seasons. After five straight quaurtders of decliquaurtd e quarters now 68 of companies are reporting earnings growth. Part of it is the election jitters. That will be gone in 13 days now. Not that were counting. Then, you know, i guess andrew will be worried about brexit . Eventually, yes. The fed will do something in december probably. You figure are you going to lower your price target . Thats another thing watching paint dry, between 2,100 and 2,170. Ugh. You think 2,325 by the end of the year in. Its possible but a lot of things go right. Investors have to be confident that growth will pick up. Postelection, you can sort of make the case that thats very likely. We know Government Spending has been a huge head wind in the expansion. Its the first expansion where Government Spending has been this big a headwind and fiscal stimulus is coming next year. The pmis have been turning up. We know investors have cash on the sidelines. Its not the scenario couldnt happen, i think its just we need to see the catalyst emerge. Tell me about the whats on the sidelines, as we hear conflicting things here. Where is it . Its got to come out of bonds. Yeah. Just think of it this way. Retail investors have been taking out money at a pace that you saw early this year and kind of at levels you saw during the financial crisis. The publics essentially been liquidating stocks. The tracking beta is essentially flat. Thats one of the biggest declines since last year. We know sentiment is rock bot m bottom. Its not at extremes where its guaranteed to turn, but its gone flat and waiting for signs. Why wouldnt the negative be that europe and japan, theyre just stuck forever. Never going to be inflation. Demographically, theyre old, they dont have kids. Europe not fixing strict wall problems. Rates stay at zero around the world. How do you know thats not going to happen . I think its likely to happen, but, you know, europes never been the tail europe is the tail waging the dog. I know. Dont say that, there are people over there watching. If you could say it in a nicer way. Yes. Its the la woof they dont like to admit it. Japan is a malaise for decades, but the japanese labor market is finally getting tight. If inflation got to 2 , 3 , fireworks would be going off. Yes. Japan just needs to grow its population. Op boa open borders. I want the bottom line on the 2325 yearend target. You say its likely to happen. What is the probability that it will happen . You seem on the fence here. Its october. Hes like it could happen. Its possible. In december hell have a more certain answer. On the one hand why i believe its highly probable, the stock market and the high yield market almost always move in sync. The high yield market is up 18 this year. The s p 500, any time the high yield market has been up 10 has averaged 22 gain. The stock market is up four. Thats a good answer. Good answer. Good answer. But the market is acting very strange. Right. Thats why im kind of you cant be too sure if something is not playing out. I wonder if its the dollar or if its the election. You think somebody will wow a couple traders on fast money with that statistic later at 5 00 p. M. Thank you. High yield market is up 22 . Tom lee told me that. The question is whether you will cite tom lee on squawk box. Of course i will. Just want to make sure its one of the lees. Melissa lee or tom lee. Distant relations. Thank you, tom. Coming up, chipotle shares under pressure. Samestore sales fell nearly 22 in the Third Quarter. More on chipotles turnaround efforts next. Still to come, Quarterly Results from cocacola and boeing as well as comcast and Southwest Airlines. Well bring you the numbers and instant reaction on wall street. Squawk box will be right back. The Conference Call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Chipotle coming in short of forecasts. Joining us with more on this is steven anderson. Thanks for having me on. How much should we be paying for chipotle giving its troubles and given it looks like its in contraction mode with the number of stores opening. This is not the growth story it was even a few years ago. Given some troubles now, probably no more than 25 forward multiple. This is based on 18 estimates. This lands you about another 100 below. So the 300 level. About 300 per share. Given the fact there is limited visibility with regard to company sales. Now the company put out what we view as aggressive goins fuidan next year, but the company is dependent on discounted offers to try to get traffic in. Theres no indication when that will reverse. The company indicated the latest t latest turiso offering is gaining some traction. It was selling well. Could there be some help in chorizo . The last time chipotle introduced a new product, it provided a boost in comp growth. I think this could do that, by theyre coming off difficult year over year comparisons. Still a lot of concern among the customers who dont frequent as much. In a years time, very competitive and fast moving. A lot has happened. Who do you like better right now . At this point we like panera bread. They came out with earnings, they beat on both the top and bottom lines. Theyre really doing well with the new clean food. I think theyve reinvented themselves, not only with that but some technology initiatives. Last nights Conference Call, it sounded like the company wanted to play catch up, but not sure the street is willing to invest the time or the effort thats required. Given that its still trying to rebuild sales and margins. They exist oftentimes in the same location. So theyre a direct beneficiary. Are they still seeing that . For the most part we agree with that. Certainly some of chipotles customers may have gone to the fast food segment, mcdonalds. But for the most part, chipotle and panera are the two Major National fast casual chains. A lot have coresidency in the same Shopping Centers and locations. I would agree with you, panera remains a beneficiary of that downside. Avocado prices, that foiled also chipotles quarter. Foiling my life. Is it . I love avocados. Who doesnt love avenue ckaca a. The fact that the commodity price has been low has acted in chipotles favor, but the minute commodity costs on the whole tend to increase, chipotle will see that earlier than peers because of how theyre purchasing food in spot markets. Whats the word on avocado . What is the view on avocado prices over the next 12 months . At this point prices have more than doubled. At this point, no change from the current levels. Its certainly a drought, continued drought in california, they had to import some from mexico. Certainly its going to be Pressure Point for chipotle. Joe instead of doing the oil boards, where we tell you what wti crude is, can we add avocado . Futures contracts in avocados . This is like a 1 percenter problem. Its like, my avocado has doubled in price. There are people that are not i appreciate that. They cant buy meat or milk. Avocado has good fats in it. Very healthy. Very healthy. Okay. It fills you up. Thats the thing. But i stopped buying them. You have, too . I stopped buying them. Yes. Have you . I havent stopped buying them, i wince when i see the price. My thing with avocados, finds the one thats not too hard, not too soft. Yeah. Very difficult. I dent even look at the price. So you think that avocado, thats a true 1 percenter problem . Yeah. Maybe 2 . If youre losing sleep like complaining about the annoying echo in my hallway . Yes. Your massive hallway. Your center hall. Such an annoying echo. Stephen, thank you. Stephen anderson. Screaming kids in first class, one percenter problem. Obamacare premiums s