10year note. We hear that miners are dragging down the ftse. Data from china was showing a slowdown in Services Sector growth. In germany, manufacturing orders below expectations, falling in august. That was the second consecutive month that we saw them. That surprised me. Lets get to our road map. Schultz is urging fellow ceos to turn up the heat. And jcpenney said its seeing signs of a turn around or that its strategy is working. And the long goodbye. Were going to read you excerpts from Steve Ballmers letter. Its a goodbye now. The Government Shutdown and the debt limit battle also now dominating wall streets attention. President obama continues to call on the thousands vote immediately on ending the shut down. House Speaker John Boehner still insisting the government agree to talk about changes in Health Care Reform or the obama care law as its known and also broader budget issues. This is now were nine days away from the debt ceiling deadline. This morning the journal after a conference they had, because they have a lot of money managers, not that worried. The front page of the daily news is china. Well, matt lauer sex, too. Dont want to mitigate that. A lot of people are more focused on the Matt Lauer Miley Cyrus story. Hes 55. I have a little time still to be active. They want to raise it higher but we dont know when or by how much and there is absolutely a gap between the 17th and november 1st that things must happen. I read all these complacent articles. Will those people be saying the same thing if were having this conversation the 18th . I dont think so. Because of the complacency, market hasnt dropped much. It all seems kind of a play act. But trick or treat. Catch 22, which i pointed out yesterday. We need the market to really be disrupted for people and some republicans, perhaps not the tea party to say okay, lets take a vote, lets get it done. So many people believe its not going to happen that nobodys selling. In fact, some are even buying the dip. So we never see the precipitous fall that potentially would bring an end to deet bait. I agree. I mean, look, you need crisis in order to be able to solve crisis . 19 decline in october, you know, in 2011. You had a 19 decline. You had specials on cnbc, you had everything cooking and it was crisis here its like, i dont know, maybe we ought to nibble at jcpenney. A little nibble there. So as long as you got like the nibble, you dont have the big chat. You dont. And were getting some nibbling today after a significant down theres a lot of stocks that are down a lot. The problem is this is so garden variety. Right . This is garden variety versus the 2011 where it was like, okay, Social Security is on the line. You dont hear yet. You hear maybe they got to pay Social Security, nurses, a definitive break. They can prioritize. You and i, say you run a budget in the house, tell the wife do a little politically incorrect stuff. You tell the wife no more whole foods, youre going to the red apple. No more movies. We can stay home and washington not even movies. We can watch networks. Those are priorities. Theyre prioritizing. The government doesnt seem to know how to do that. If we breach the debt ceiling, thats still very, very worrisome. Do you know how much money is levered to treasuries . You still dont have to worry about hair cuts but i i know a hair cut when it comes to margin. Every single bank has to kb give a hair cut. How about the 1, 2, 3 trillion, japan, china. Do you this i they have to be here . Well, i dont know. Im sure theyre wondering the same thing. What is going to replace treasuries . Are they going to sell 1. 5 trillion in treasuries . Where am i going there . Wheres the yield that im going to did. They obviously could help themselves. Its obvious that someone gets hurt. You know who gets hurt . The people not working for the government. The congressmen who want to teach the government a lesson, its the private business who basically has a business somehow connected with people who work for the government. This is the coffee cart issue, the coffee cart guy is going to get killed because he happens to be in proximity to the federal court. Already eight days under way. And, by the way, the park system makes money. Theyre shutting down the stuff that actually makes money. Feds president fisher said i deeply hope and i dont think well default, but it will come down to the wire. What about starbucks Howard Schultz . He comes from a radical position. He does seem to like to get involved in these issues. He did it a year ago with the same issue. Schultz urging fellow Business Leaders to get involved essentially is what hes saying, in a letter to fellow ceos he said im utterly disappointed by the level of irresponsibility and dysfunction we are witness to with our elected political leadership. This weekend i heard from several Business Leaders who shared their concerns about our relative silence and impact in urging the political slaedership to act on behalf of the citizenry. Isnt it interesting that its news that someone calls for civility in leadership . It didnt work the first time, why would it work this time . The Business People i didnt use the term kickoff because i found that cliche. Suddenly what will happen is the guys start to give an outlook. If you work, if you have a company that is in one of these districts where there are people who are voting against or in favor of rejection, im cutting numbers because of ted yolos district because he wants to teach us a lesson. Hes like, yo, yeah, im in default. That will just show us. If you have a Small Business in that sicircuit you want to vote for that guy, you certainly do. Confidence is easy to kill. Its been extraordinarily hard to build, easy to kill. Not that we might have had a flood of deals at all but nothings going on. The 50 million food deal still got done. That still got done. Sam zell was a get on squawk box. Heres what he had to say. I think the tea party is a reaction to an imperial white house. And i think that were seeing i mean, come on, how does the president deal with his daughters . Im not going to negotiate . Thats the way you deal with your children . My experience with my children is that never worked too well. I cant imagine its going to work very well here. Ive tried that, too. Mixed results. Mixed results . Mixed. Is that implying john boehner cutting numbers, jim cramer family. Look, its obvious that the foreign markets are going to get hit more. Emerging markets down 20 october 18th. Scenario. Theyve recovered from when they had a terrible time in the summer. I understand the principle of rejections they dont want to be called rejections, they want to say exception. I remember going to the boch in 2011 and the foreman says im not going to get my Social Security. I said, no, youre going to get it. How do you know, big mouth . I dont know. I started taking a side saying i dont know. Maybe at a certain point people dont like not getting their Social Security, they dont if at any time want to hear it as an option. Medicare. They like medicare. So start having a conversation about entitlement reform in a real way. Thats what some of these people want. I cant blame them. Theres a lot of good talk about the 14th amendment and the importance of it today and why did the president take that off the table because obviously a president ial crisis means you should invoke it. Lincoln raised a couple billion to fight that war. Talking about raising money, shares in the jcpenney are rising. They stay they are still in the early stages of a turn around but have seen the sales to continue to remain until the end of the year. The liquidity is expected to be 2 million with an unexpected, very quick equity raise that sent the stock just reeling and it has yet to recover. Yesterday the shares hit new low, down 60 simply for the year but this morning its going to be up, jim. Less yearn the way i would characterize it is this these guys are not drowning, theyre swimming. Theyre doing the doggy paddle, though. Its not like theyre they are barely moving. If i was jcpenney, they should be going to all the Congress People who are trying to starve the beast, right . The beast is the federal government. They want to starve the beast and say, no, youre starving jcpenney, would you get this deal done . Because they need a darn good christmas or holiday season. Sorry. They need to stabilize. When i continue to talk to people around the country at least, what ron johnson did to this company its easy for them to say of course to the extent they can make themselves look more competent by making him look less competent. And he had no ideas whats going on in the stores. Now they seem to be once again, okay, what are our customers telling telling us what they want. Can you come up with a ceo he was like the torch man of this operation. It is hard. September sales ended october 5th were down 4 compared to september of 2012. A 580 basis point improvement over august. So the sales drop is not as steep. Now theyre hoping it will start to turn the other way. I approach this as granu granulearity. We want to root for this company not to go under because there are so many people who work for it. Ron johnson basically turned the place into wilson sonoma. That 280 cast iron thing that you and i both use this coming thanksgiving. Oh, yeah, those pots, crock pots. Thats the stuff hes bringing in. Thats not cheap. No, 350. We have a Williams Sonoma near my jersey place. Knock that price down. They communicated very importa important. Goldman writes a piece that exasser bates already concerns that may not have been particularly well founded about their liquidity and then they have to raise money and goldman then does the Equity Offering from them. Coming up, Steve Ballmers farewell letter to microsofts employees as he gets ready to leave the company. Also ahead, Bart Chiltons eye opening take on the shotdown. And futures, we are headed for up. What do you think of that . Well see if we stay there. More squawk on the street after this. Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthCare Insurance company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthCare Insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Goodbye to you, goodbye to you, goodbye to you Steve Ballmers written a goodbye letter to microsoft shareholder as he gets ready to depart the software giant. He writes we have seen incredible results in the past decade, delivering more than 200 billion in operating profit. Im optimistic not only as the ceo but as an investor who treasures his microsoft stock. Working at microsoft has been a thrilling experience. Weve changed the world and delivered recordsetting success and i know our best days are still ahead. I tried to read it to get you to tear up. Im glad you are. Im trying to compose myself. Im sure the paper was wet that he wrote or typed it on. Its interesting he stands by that nokia buy. Thats together going to bring the best mobile device. Apparently theyre having some uptake in countries in europe. I have ceo gaines on last night and he was saying xbox is doing incredibly well. But the end this is still a utility company. I thought this was interesting. To increase it, the devices, theyre doing the familiar litsch family devices but he said people love windows. Is that true, david . Do we love windows . Yeah. Do we love Microsoft Software . No. As you say, its a utility. Its much more akin to coned edison. Its a utility. People didnt like windows but were stuck with it. Were all stuck with it. Buy us. Windows. Why . Why is that . I dont know. Who are those guys, you know . Its kind of like the guys chasing Butch Sundance for like jobs. Who are those guys . Its just beginning, keeps reminding us we dont know who is going to take over. No, we dont. But ford can drive itself so mulally is free to trade. We know who is going to take over there at ford. When are we going to hear about somebody new . Its time. Im sure they dont like the vacuum of leadership, abhorrent. This is a big company kind of in the eth ether. The services that people love, ive never heard anyone say, you know what, david, i love windows. They love their xbox. They do love xbox. I told you that this company should be split. Zple ysh you have. But they went the opposite. They listened to the show and they said no. Up next, its the time of the morning youve all been waiting for. We have cramers mad dash before the opening bell. More squawk on the street from the nyc straight ahead. She loves a lot of the same things you do. Its what you love about her. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. 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Six minutes to opening bell time. Mad dash on this tuesday. What are we talking . The real mccoy. Taking over at avon, finally getting the recognition, wells fargo goes hold the buy saying the turn around is at hand. Shari might have gotten it, it went to goreski. We mentioned years of poor performance. Andrea young pointing out the company was run into the ground by her. Youre willing to buy into the fact that the turn around is occurring . I will buy into mccoy. Everyone tells me shes great. Theyve got a lot of key markets. They have to build in the infrastructure. Look out, avon can come back because shes a strong leader. Cody came after them and cody now a Public Company as well. Yeah. I think its time to buy. If youre going to go, you better strike right now. Proctor, well upgrade that. Why . Leadership. They say theyre finally getting together developing markets, they think theyre going to make a comeback. Be careful, unilever has stumbled lately. Its not that expensive a stock. It is a very well run company. It is, although a. J. Is not going to be there a long time. Theres a longer line in plano, texas to take over for ulmer. You had him on the board of shame and then he came here. He came off. He was not that kind of guy, mcdonald. I thought when a guy gets together and then he had a bad concern quarter. Hey, the tigers, st. Louis was out. A couple of bad games and theyre out, just like that. But the dodgers theyre in there, man. We have the opening bell. Well give you more baseball results in the playoffs and a lot more squawk on the street after this. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. 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The opening bell set to ring in 30 seconds on this day. The futures have looked up. I dont know where were going to end up today. Its all rumors, david. Its rumors of someone having lunch with someone. People are saying senate. Today about 10 00 the rumors started. Is that a dining hall . Somebody walking down the hallway . Do people realize there are a group of people who want to default and they dont want to break bread. Theres not going to be any sort of middle ground with these peo