Only hertz gives you a carfirmation. Hey, this is challenger. Ill be waiting for you in stall 5. It confirms your reservation and the location your car is in, the moment you land. Its just another way youll be traveling at the speed of hertz. Lets get back to our guest hosts. We have 20 seconds. The last word is goodbye. What can you say beyond that . Things are performing exactly as they should. Dont give up hope. Jerry . Politics arent irrelevant. Theyre an opportunity. Look for companies that will make money in an environment thats not exactly what any of us would have wanted from a policy point of view. Thats tantalize. Well have to have you back to talk about it. Thank you very much. Well see you tomorrow. And well see you tomorrow. Right now its time for squawk on the street. Welcome back, david bowie. Today marx the u. S. Release of his first album in nearly a decade. Its called next day. Welcome to squawk on the street im Carl Quintanilla with melissa lee and david faber. And nfib is curious today and not a lot of directional action and a long way to go, still. The big story is the conclave which begins in rome today in the vatican. Well keep an eye on that. We might get a vote later on this afternoon and in asia, shanghai down four straight and mostly red arrows across the continent and within a stones throw of the alltime high. The dow going for eight straight games. Thats the longest streak in more than two years. Everybody seemed ready for a selloff so where is it it . Yet another target price cut for apple and a 25 chance of a miss on guidance. Its a big week for samsung and blackberry. Those membership fees continue to provide stability against walmart and target. And are yums troubles in china starting to stabilize . February shows signs of progress there. We will begin with the markets. The dow coming off of a fifth consecutive day of new alltime closing highs while the s p is within ten points of its own record closing high. Both indices are on winning streaks. So far futures, as you saw, moving a tad to the down side. Jim, the action on the s p, i looked back, it closed at its highs of the day for the past four or five sessions. Very new pattern. I do mad money at night. We always try to hold the top until the end, and one of the reasons why we do is im so used to the selloff at the end. We write it and say, of course, if you look at the way the day went. This is a new pattern like so many new patterns where we overlook bad and you get a Dicks Sporting Goods and everyone comes back and says its good today. This is an upon further review market where we spend the whole day thinking, gee, europe, not that great. China, not that great. Were great. Despite the fact that i think a lot of the economists come on and they are concerned there is what i regard as a target market. I mentioned target because that was one of the worst numbers and yet all weve had is up and target represents i think more than any other retailer in the country. Are we getting signs to i dont want to say exhaustion, but maybe this run is getting a little bit tired here . Yesterday the volume was very light on the session, and granted we closed at a high, but some were light and weve been around these levels in 2000 and 2007 and now again in 2013 and that could be troubling here with the vix at a fiveyear low. Here we have merck announcing a vytorin. This is anticholesterol. The important stock on the dow is a couple and with the costco reports. Its good, and 50 of cabellas is hunting. We know gun sales, david, are incredibly strong in this country, but i just keep coming back to the facts of the individual Companies Just donta ad up to the triple top. They dont add up to exhaustion. They print their numbers really, really early. We get up early and i was, like, wow, thats better than i thought. Does a rising multiple give you any i hate multiple expansion. Thats what were getting that the point. I dont see a lot of numbers coming up at this point from the analysts from the second half of the year or guidance. I think people feel to raise guidance in the face of sequester. I keep coming back to mark zandi and saying maybe Housing Starts are better, autos and what are you smoking . What im smoking is a sell to hold sherwinwilliams at Credit Suisse and value added since the stock was at 80 not that long ago, but i just keep finding out. This morning wyland gets an upgrade. Who cares about the housing cycle and boom, you get good news. Chevron, i love the product numbers and the midquarter update and why arent they understanding the script and the script is supposed to be down right now. Chevron today on closing bell later today. Only 18 of firms see poor sales as their number one problem. That is a new low for the recovery so far and theyre having trouble filling jobs because some are thinking maybe it has more to do with Labor Mobility or skill mismatch not because they dont want to add workers. This is gtls is the symbol and they are desperate to find workers. Why . Wrong places. No skills to be able to weld in this country anymore and they are saying please. When these ceos come on your show and they say we need workers, its a different tone from what you would have heard four years ago. I know the bankers dont need workers, but the Industrial Companies do. No. The banks are fully staffed. Your point say good one. When they say they need workers, they say there are plenty of people who want jobs, but theyre not the people that can take the jobs that we have even to your point about welding which on the face of it you would think thats a pretty straightforward profession that involves a good deal of math skills. And we stopped a long time ago when bethlehem steel closed its shipbuilding business that shifted to korea. What needs to be done here is a highly technical form of welding so that makes it that natural gas that are in trains and lng for long haul trucks. We just dont have the people that know how to do it. Thats depressing. Why is that a good thing . Well get them. Natural gas too cheap in this country. Opecs new forecast today, raising their forecasts for nonopec production and their own market share slipping for 2014. Well be doing 7 Million Barrels a day in this country and theres a lot of stuff and chatter about how canada wants to send 4 Million Barrels a day to the United States. We only need 8 Million Barrels and where is this stuff going to go . Canadian oil sells for 60 and change whereas brent is so high and of course, our gasoline is priced up at brent because of the mismatch of the nonfederal policy on energy and everywhere we dont need it. We dont have keystone yet and we cant get the refiners and they used to have the right oil and theyre all for heavy oil. You mentioned two problems that require the federal government to have a response. An Energy Policy and an immigration policy. Neither of which yet exists. No. 6 30 dinner is sacrosanct at the white house, and we know when we have Congress People on they seem to want to spitball each other and throw mud. I dont see the consensus developing. Everyone thinks the market can take care of itself. You cant. The cng, compressed natural gas, so the Companies Want gas, but they want the you cant do whats uponed without the federal government. Not subsidies, but just law. Lets switch gears here and talk about apple. Jefferies is cutting its price target from 420 a share from 500 while maintaining a hold on it. Asia channel checks have led him to cut revenues to the low end of Current Quarter guidance and he sees iphone 5s and iphone launches and he sees that apple is trying to compensate. He will join us to discuss this call on apple in about an hour from now. Meanwhile, black berry is still rising. Today is the day at t is kicking off presales of the blackberry z10 in the United States. Apple shares premarket are only down a few bucks. Some might argue this finally, maybe its reached this point where it can absorb bad news and not go down substantially. We still dont have anyone just saying im going to put a sell on it. She had a 130 price target through the cash. Look, this is the kind of thing you get. Im holding up the jefferies piece. Yes. Cutting the price target to, as you mentioned. To 420 and this is a piece that should have been a sell. And you shouldnt have a hold on it when you cut the price. You are now in a situation where apple is expected to miss. When everyone expects a company to miss and it misses it tends to stabilize or go higher. Those are frightening terms when you talk about apple because it has become the ultimate Butcher Block of falling knives when everyone buys it, but this is so negative that they have to recall the iphone 5s new model in order to miss numbers like this. The risk is to the downside in terms of meeting the lowered guidance because of the lowcost phone and the iphone 5s. To your point, why rate a stock a hold if you see downside to where its trading now in 12 months. In 12 months its going to be according to this price target 17 from where it is. When numbers come down, multiple Means Nothing if the estimates continue to drip downward, and i think that were still dealing with the residue of the 1,000 price target where everybodys still got to come in. Remember when everyone was running the street high for apple . Now jefferies goes street low so you have to imagine the other analysts are running low. As long as others are doing that, but best buy, moment it turns does this actually have any bearing on what that stock he has not been effusive about apple throughout the decline. Hes had a hold for a while. Look, it shouldnt have impact and doesnt have impact. The stock has that terminal feel and is it shouldnt. Maybe on sentiment . Yesterday someone came out and said they might turn cash. We all know theyll return cash. Until they return cash, the focus is on the miss. The earnings miss. We should say its a big week for blackberry. Right. The preorders go live for the 10, the z10 and samsung is rolling out the new galaxy. There are photos leaking on the web. The air is kind of getting sucked out of the room in the short term. This blackberry and there is a story in a french newspaper. When you see these different newspapers saying theres about to be a bid and you should hold your ears for the buying siren, right . David has been a reliable source in the past for your m a information. You know im always, as you know im fluent and thank you for mentioning that. Lenovo why would lenovo look, black berry is one of those stocks thats going 12, 15, twef12, 15. I am sure tomorrow well hear initial sales are bad because day one. Hour one. The first hour. Unless theyre lined up around the block as they will be for samsung because samsung is now the king, samsung. So apple subsidizes samsung with the use of their chips. Korea not skipping a beat. They ended the armistice yesterday in korea. 2500 decide the division from our guys to doing 28,000 over there. Theyre doing some sort of maneuvers. In the meantime, samsung wow seems to not interestingly, it was mentioned in the jefferies note the samsung launch will suck a little bit of the oxygen out of the room and therefore hes anticipating a weak quarter because of the s4 and the acknowledgement that maybe competition can be a threat to apple sales. These channel checks that everybody does, what do they really do . Channel checks were good to the upside, too. Thats my point. Whatever direction the stock goes. If the stock were to go up five tomorrow you see what you want to see. These guys with the wind, theyve been blown with the wind. The answer, my friend, is blow it. Im still thinking about the korean peninsula. Go with my window. And whats going to happen there. Korea was the future of apple. Dennis rodman probably holds the key to the next level of samsung. The guy was declaring world peace. Who knew . Not metta world peace. He should change his name, right . Also. Remember laurel b. Remember him . Lord freeh. How about the 66 points he scored last night. 63. 63. Im sorry. I forgot. Very excited because the sixers won a game. After taking a hit after a food safety scare, yum brands experience a rebound in china. Coming up, is it finally over . Live from dubai saying were on the cusp of a new golden age of Luxury Travel and well find out how the Company Plans to capitalize on that. Some midweek action here and eight straight gains of the dow on the street. Much more squawk on the street when we return. Investor. Yeah, im a serious investor but im a busy guy. It used to be easier but now there are more choices than ever. I want to know exactly what i am investing in. I want to know exactly how much im paying. I want to use the same stuff the big guys use. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Shares of yum brands up sharply amid signs it is bouncing back from a food safety scare in china. Com sales rising 2 as business received a boost from Chinese New Year. The parent of kfc, pizza hut and taco bell experienced sales for the first two months of the year and that was the smallest decline than the previous 25 . Can we believe this number or is there too much impact from the Chinese New Year to make sure thats a solid comp. The analysts were skeptical, david novak, the ceo, i think, is has money in the bank. He said this would happen. Hes ahead of his own schedule and he said it would be the second half. I believe in the stock. I think the analysts can be dragged kicking and screaming. David novak promised me hell deliver. David novak lived in his car and i lived in my car. We were neighbors. We may have been neighbors at any given time. This guy is underestimated on wall street and people do not understand what a fighter this guy and how competitive he is. I think yum is done going down and i think this is the beginning of a good streak of numbers. We look at kfc specifically in the month of february and that was flat. So we with think that the chicken scare affected kfc the most and the sales are finally flat and thats a positive sign and the Management Team in china, excellent. The head of Greater China of a yum is a veteran and regarded as the god father of fast food in china and hes been there for a long time. Born there and educated here and hes getting a lot of credit for the china growth story for yum and surpassing mcdonalds in china. Novak gave him a lot more to work with. Millions of dollars to be able to rebuild the brand. This is when 60 minutes comes after you. It was the equivalent of 60 minutes saying you cant eat at kfc and theyre reversing that very quickly. Im very encouraged here. The analysts are not. There are very few analysts saying this is the beginning of the end, but these were the people for the most part, not everybody who when it was first reported they say ignore it and they remind mcdonalds when they said it was the end of mcdonalds and it does appear to be a lesson in how to manage expectations and they clearly beat that, but you couple that sort of metric management with, say, i dont know, a jc penney and what someone else has done. In their is underpromising. What a great example. Youre absolutely right. Ron johnson comes in and basically says were going to take over the world. David novak comes in and says the world fell on our shoulders and we were not ready. We were not red for this and we didnt understand the gravity of it, but well come back some time in q4. This guy, there are some managers that really know how to handle wall street and their business. Ron johnson, i dont know if he knows how to handle wall street or his business. Wow dont give me that well said. Im not going to add to it because i thought you said it all. How can you add to that . You gave me that pixiest thing you do that basically says, yeah, sure, cramer. Its called subtlety and i dont have it. When we come back, last night on mad money he called it sellers remorse. Can we turn a mix opened into record highs. Came cramer will help you get ready. A lot more squawk on the street treat New York Stock Exchange separate ahead. Revolutionizing an industry can be a tough act to follow, but at xerox weve embraced a new role. Working behind the scenes to provide companies with services. Like helping hr departments manage benefits and pensions for over 11 million employees. Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. All stations come over to mithis is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. And were a few minutes before the bell on a tuesday. Lets get jims mad dash. Med tech. According to one of my sources we come in today and hear dana her, and thermofisher and they could make a bid for life technologies. Do you know they have 75,000 customers . Their products are to be able to map genes and research genes. This is literally the arms dealer for all those Biotech Companies that would be a really good fit for thermofisher. I think it goes. I think it goes. Thats a nicelooking chart there. It is a goodlooking chart. Costco, a lot of discussion about the membership fees which went up i think late 2011 and were still feeling it. Nobody apparently said no to costco. They just raised the fees. Carl, you know this culture very well. This is more than just a store. Yeah. Its a lifestyle. Its a cult, some say. The bearish argument is that the growth really happens at the margin and it is an annuity because of the fees. Is that a knock on the stock or not . I dont think so. I think senegal set up a situation with multiyear growth. They still dont have that many stores and i still find my summit new jersey jammed and i got caught up at the dollar tree buying more candy this weekend and was n