Target pulls out a bead on top and bottom line. But reaction not a whole lot better. Whats the trade in black friday. There was there a steep selloff yesterday which put the nasdaq in correction territory. The head of mcdonalds u. S. Business is out and Jeff Stratton will assume that business starting january 1. Capped off last month with the first decline in Monthly Sales in about nine years. Well begin with a teale of two retailers. Walmart, revenues coming in short of forecast. As for target, the Company PostedThird Quarter earnings well above estimates, says its poised for a strong Fourth Quarter, but walmart has some issues here, jim. Theyre talking countries including but not limited to brazil, china and some others too. Yeah, i was thinking it bick, not brick. Russia has been left out of the equation, foreign corrupt investigation, not a great number here at all. The stock had become a very big institutional favorite. If you recall during the mexican investigation, when New York Times piece it, the stock was trading between 57 and 58. They were then overridden by a couple of really good, solid quarters. This was not the quarter that anyone was looking for. Except for those who sold the stock over the last couple of weeks. I mean that stock has started to come through. Im kind of confused why this one is so shocking, if only because they had they havent seen even robust the last couple of months. Becky did a fabulous job, because youre talking about a 10th of the country involved. The age of walmart is the able of shopping. So what does this say . Of course when we consider walmart as a percent of overall public retail sales. The numbers are enormous. This retailer dwarfs others by certain metrics. We think the Holiday Season is going to be competitive, we think were still in a competitive retail environment and economic factors are making things somewhat difficult for our customers and thats why were getting to those numbers. The stock had come in and its going to again today. A lot of investors are thinking that this gigantic move and pull back appropriately to some average and was ready to blast off. Look, youve got target nipping, youve got dollar tree reporting good numbers today. Walmart had a great move. And now its great move i think has run its course. An amazing chart, if you go back to walmart stocks, the dip in the stock, it was the bryberry bottom for this quarter. I dont know if were setting up for Something Better than anticipation but the head of u. S. Walmart said november sales started ahead of plans. And they have got some extra sales thanks to lay away which has been a very Popular Program for retailers of late. We used to get monthly comps from all these retailers. Those were the old days. I think the problem with wam mart, frankly is, the stock was acting as if it was going to put target numbers up. Pets smart reported the best numbers of any retailer. The spirit has been distinguished between two types of countries, countries that do good numbers and often great guidance. The latter has been very rare. I agree with you walmarts guidance isnt very good. Better sales, better earnings and better guidance. It has to be a triple play, pets smart delivered. 200 day on walmart, 67, getting over 70, some argue is like microsoft trying to get over 30. Every time it happens, you get hopeful and then youre disappointed. David, forgive me, but microsoft should go private. 5. 5 points. Theyve got a lot of cash. Maybe you and i should put together a 5 million lump. You go to the Justice Department and say this is absolutely necessary. Im going to pencil it out. Im calling bomber today and saying, end all this embarrassment and just go private. It is too large to take private. The stock is very cheap, it generates an enormous amount of cash. If you say to microsoft, just run this company for cash, you would get a big return. The press conference yesterday, im watching the press conference and im saying, hes not talking rise above, hes doing the thing. And then first question, and i figure the first question is going to be, arent we not going to be in a recession the moment that the fiscal cliff comes . General petraeus. But the second question had to do with the fiscal cliff. I think someone felt maybe we shouldnt just follow one general allen, or the cal east. There were more professor langley questions and petraeus than that just shows the general view of the White House Press corps, theyre afraid of business. The point of our campaign is at a certain point that business is going to look, theres a lot of people in this country who not only dont pay taxes, theres a lot of people in this country who dont owe dividend stocks. A lot of our audience, you need to pay taxes, which you say is going to get hit. You dont watch the stock channel if you dont have a lot of dividends. I just felt yesterday was a seminole moment. Mark is going to get down here. I mean home depot was great. I said, oh, it really doesnt matter. We all had that. It was obvious. Theres no branch being extended, he dug in his heels as is his right of course. Which is why some argue that its all dangerous here, that we dont have futures, at least trying to find some legs. Europes in recession, what happens to europe if we go into re recession. Its a multiplier. In terms of more recession . True. All of our worst fears about Earnings Quality deterioration, all of that gets multiplied if we go over the cliff. I when petsmart was at 58 yesterday, youre going to get hit. It has nothing to do with companies. The idea that this thing gets extended. In other words we push off the cliff, theres not enough time to deal with this. Youre dealing with a Lame Duck Congress so we push it off three months and we start dealing with it again next year. If we get Something Like that, does the market go higher. I think a lot of the things you saw, you go, wow, cvs was really good. Maybe this is an opportunity to go buy some gnc, some companies i have been highlights on mad money. Gold four was binary, stocks are going to go down, or are we not going to go to bar, its a binary number. You go off or you dont go off, but in terms of various kinds of deals that could be reached, there are a million, as to what happens. You could climb back up the cliff, once we fall off the cliff. Theres a very sudden aggressive attack in gaza, who knows whats going to happen there. China, these are not reformers who are going to be on this committee, it looks like. Some stocks are already, with the market down 8 from the high, if you go back to the stock that was already 9 from the high last year. A third of the stocks are beginning to bottom. They are the General Mills, which General Mills was up yesterday. Verizon is down from 47 to 43, you figure, ill start buying verizon, but at this point youre getting 5 , at this point its tax free. Im just saying that not everything falls at once. It wont fall with the same velocity. Until the president spoke. I used mills as and an log for what commodity costs have been coming down for the last few weeks. The takers of the commodities who have a recession proof business are starting to outperform the 12riz industries. That can continue. You talked about companies beginning to manage down and after the bell, we get texan with some more layoffs, whether its dow chemical or u. S. Whats dave cody doing for every eight people who are retired, natural attrition, hes hiring one, that would be a ratio that would be 8 to 8 if there wasnt a fiscal cliff. Hes very proud of his network, to keep people on this issue. Are they focused on this or are they focused on when did petraeus know and what did he do about it. Hopefully well get off that story when he testifies tomorrow. As someone who just lives and breathes stocks, im just wondering how they fooled the Kelly Air Force base. I think that people dont get realized and maybe they cant realize until the market is down so badly. Youve got Something Else thats taking up all the air in the room. This is the iraq war, this is the debt ceiling, and europe. Good times. Speaking of corporate shuffling, a management shift in mcdonalds, the fast food giant says its global chief operating changes come in the wake of some weaker sales in mcdonalds which has taken a weaker toll of the stock. Its not often you see a lifer of mcdonalds leave, but it appears to be an admission that there is a fire in the living room when it comes to the u. S. This is a shocker. This is a company thats probably the best in terms of promoting lifers, lifers being people who have done remarkably well and deserve it. I have always promoted the culture. You had an interview with thompson. Its quite clear that there is disarray in the United States. What about these high profile firings, microsoft, pandit. Not to mention lockheedmartin. Its been overshadowed by the petraeus scandal. The ceo was supposed to take over in january, now not because of an affair with a coworker. Executives are getting fired, thats not been the case in Corporate America in a long time. Mcdonalds, whatever it is, whether its a retirement or a forced retirement, the bottom line is that the sales have not been meeting expectations. That followed the disappointment in earnings that we had seen. I mean this is a company that can be uviewed as being under duress right now. It doesnt have, if you go over the cliff at 3 yield plus doesnt really defend it. The one thing that i would point out that those who go to mcdonalds regularly are a bit shocked because theyre running big promotions. The old days they had a promotion you went to the store. Now you go to the store and you say, i should have come here before. Especially when your ad budget begins with a b, as in billions. Yes. Europes double dip, the euro zone now officially in recession again. What does that mean for investors here in the u. S. Then later on, Lieutenant Governor gavin knnewsom. Well see what happens when we open in just about 5 15 minutes. Its not just the fiscal cliff that europes worrying about these days. New data shows the euro zone is slipping back into recession for the third time in four years. Gdp shrank. Not entirely a surprise, but this just reenforces what we know and that is that europe is in trouble and if we go over the cliff, that trouble for europe will in fact be deeper. I think that maybe you wont realize how tough things are in the country until your friend or neighbor is laid off. But you could impact europe more than ourselves and euro. China can offset it if the new communist party comes in and does things right. We need better numbers here. The average real earnings, the latest staticists came out, they were miserable. 2 . Fell. 2 . Im looking through all the earnings reports to try to find something to say positive. Theyre not bad, but no one wants to say things are going to get better. And the jobless returns a little bit better. But were not going to get any clean data for months at this point. But we did see the drop in futures and the knee jerk reaction. I think its easier for people who own stocks to say i bought this really Good Company Home depot, thats really going to be helped by sandy. Why is that affected by the fiscal cliff . Its very hard to relate the two, but if you go through some verbiage last night, why didnt they come out with robust guidance . They watch us. And its not just business that is on hold and has been for quite some time thats making additional expenditures. Were all just saying, okay, its november 15, why would i put any new capital out in any significant way at this point. The absence of buyers and guys and worries about the underlying. Theres always rise above. Usa today . The next section is the sports section, but i still love to get lost in it. Ra dickey, the cy young awards. 27 of 32 first place votes . Yes. He wrote a great uplifting book by the way, hes very bright. A very smart interesting man. 38 years old. Knuckleball knuckleballer. One of the few bright spots. Last night on mad money, cramer gave you some good surprise. And later on, betting on big data, well talk with Zachary Bogue, and matt ocko. Lets take a look at futures one more time. Mixed bag here, well see how he opens in just a few minutes, more squawk on the street straight ahead. Two minutes before the bell. Lets get jims take on the bakken shares. This was the Washington Post article was terrific, squawk box is so amazing today. I just loved it. And the global head of real estate for kkr, theyre putting up apartments in this williston area. The company that has both of them, eog, Continental Resources in the bakken. These stocks are going to go down like everything else, because this is where we are. Were going to have a long haul truck that the engine is going to go out in 2013. That is going to be taking advantage of the natural gas. Everybody should be reading the Washington Post journal. This is the bright spot. Whats the bright spot . It is fossil fuel. But i know that im looking at buying a generator like my friend joe kirnen has. I can buy a machine that makes me fuel up without gas. I just need ford and gm to give me the cars. Crude spikes, these companies can help you envision a day that a headline out of that part of the world doesnt mean oil has to become a expensive. Were talking about a duplicate fuel system that makes it so that were no longer hostage. Thats so imperative on a National Defense basis, but it is not the focus in washington. Petraeus and then cliff. Meet one of the socalled patriotic millionaries which is asking the government to pay more in taxes and the citi shareholders. And how are walmart and target open for trading . Were going to get the answer to that in just about 4 1 2 minutes. Todatoday a full hour with. Well, having a ton of locations doesnt hurt. And my daughter loves the santa. Oh, ah sir. That is a customer. Lets not tell mom. [ male announcer ] break from the holiday stress. Fedex office. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. And welcome back. Were getting ready for the opening bell here on squawk on the street. Were just a couple of minutes away from the open and this after a terrible day in the market. The s p is down 7 since its september 14 peak, as is the dow. The nasdaq meantime is in correction territory. Officially down 10 from its september 14th high. What a way we have seen that we have seen since the peak, when apple was more than 700 a share. This is not the i always hate to thats what someone last night today why did you not like five below . I thought you likes five below. This is one of those companies that you distinguish between 5 below and the stock. Everyones got a profit and theyre thinking well, wait a second, who know what is the Capital Gains is. Of course by the way you sell, it doesnt mean that you get back in, you get back in at a lower cost basis. I see lockheed bottom, i am happy to go in. Cvs. But i got to see it . Because who wants to see another press conference and get your head bashed in. Theres the opening bell on wall street. Designer manufacturer and district for of ac drives. So this is a very big open here. See where the markets are settling. Well definitely be watching in todays session, at of the retailers of course. But monster, another big one were watching. But Energy Drinks as a category is linked to adverse events and hospitalizations which is not a good thing when youre in that industry, youre looking at potential. And maybe warning labelis which are not a good thing either. The corner of a its a triangle, jim. Theres no resting place. Heres the deal with monster. Monsters last conference call, they did this remarkable test versus starbucks, and said they had less caffeine than starbucks, i actually bought a box of them at costco. I had to save them for and no, i mean these are really, i think, off the reservation, the fivehours. To say they have less caffeine than if i were a consumer looking for a caffeine jolt, theyre saying that starbucks has more caffeine and is not linked to any adverse events. But starbucks is saying why are you lumping us into the 5hour. Maybe you should have at the same time the government is a the government doesnt come in and say, you know what . We like some Energy Drinks and not others. We dont like Energy Drinks, who needs it . Its like war, what is it good for . Absolutely nothing. Lets get to kayla because the House Financial Services summary has come in with its full report on the mf global. The gop members of the House Oversight committee and it pretty much pins all the blame on ceo jon corzine. He was the chief trader and he was the one who saddled the company with sovereign debt. But it doesnt limit the risks or the blame here with the house going on to recommend that, the sec failed to share critical info about the health of mf global and also the Credit Rating agencies did not identify the risks or didnt do a good enough job of identifying the risk. They identified that sovereign risk, but it was in footnotes and there was some confusion among investors. So its being blamed on the regulators. Mf global was not forth right about its liquidity position. This is ultimate what brought the brokerage down. We had an interview with corzine who said that the board impmented all the strategies, but the he said she said game will continue. And well have a little bit more for you later today. Meantime, as far as what we continue to watch in the marketsed with what the latest quarterly report, which is quite goo