Orroad m our road map begins with a 4. 5 gain for the s p. The ipad air hits apple stores around the globe today and the lines have already formed. But but we have one on set right now. Lower refining margins again. And thinking outside the box, the Container Store makes its nyse debut today. Well talk about the ipo coming our way. Score one for the bulls in october. The dow and s p hitting record highs, dow up 2. 75 , the s p rose nearly 4. 5 , nasdaq up nearly 4 as well. We know about october. The first trading day of the month this year has traded negative only twice in april and may and we all remember the very first trading day of the year, that 300 plus point gain for the dow, jim. It seems like the old days when we used to call it Mutual Fund Monday we used to have and at the beginning of each month there would be contributions for 401 ks. Is it continuing . Is it back to that . I still dont see a lot of individuals who embrace the market. Thats empirically too difficult to refute. Which old days are you talking about, though . Everybody wants to Start Talking bubblicious here. It doesnt compare to the old days of 97, 98, 99. People dont remember what it was like. We would come in and the stock was up 30 and there was no reason. Think about what the economy was doing in 1999. The u. S. Was coming off a period where we had reasonably strong economic growth, the Unemployment Rate was probably below 5 . Its not necessarily the behavior of the market necessarily, even though there are signs of consistency, its more the fact weve still got the Unemployment Rate up above 7 and theres a sense the economy is just not clicking. I think its poetic, that the money section in usa today is the fed inflating a stock bubble, just as were finally getting to a tapering did you hear plosser today . Saying he wants to cap the signs of the Balance Sheet. He wants a number on the Balance Sheet. Were back to that. Well, look, i dont know. I know too many people who own stocks and theyre actually happy that they made money. I cant begrudge them. Its been a great time. The fed wanted the wealth effect to come up. All i can say is what has Congress Done to help the economy. What has the president done . They cant even build a bridge these guys. Thats why the feds the only game in town. The fed piled on in 37. This is not that time. Bernanke sees whats going on in washington. He knows theyre destroying any sort of hope for incompetence so he has to provide it. All kreuger had a great piece. I thought it was an exceptional piece. Congress itself is not doing anything to create jobs so who is supposed to do it . The private sector is typically the answer. The question is are we in one of those periods . Where theres enough of a gap still in where the economy needs to be going and that there needs to be some stimulus to get us there. This is all that commoditization nonsense. The International Companies theyve got a little bit better multiple. Most tech stocks i cover are trading at historically low multiple. Energy is starting to turn their way and only four times since 1990 has the final quarter of the year been negative. Especially i think when youve been up this much, you really have a remarkable quarter. Can we please stipulate when you talk about the market, all youre doing is falling prey to what a lot of the gray beards want you to do is presume there is no differentiation. Jpmorgan historically would be at 60 if we had any sort of normalized money, normalized period. Is that expensive . You ask these guys and you say jpmorgan, im not talking about jpmorgan. Im not talking about intel. Im talking about the market. I cant talk about the market. Ge is trading at an 18 multiple, 19 multiple right now. Its 45 times earnings. Remember that . Ge, and that was regarded as cheap because there were a lot of Companies Like intel that were trading at twice that. Rates obviously were higher. Rates at 3. 5. Clorox goes to 80. So clorox is really overvalued. When you take rates to 2. 9, Kimberly Clark goes to 92, really dangerous. Where was Industrial Production five years ago . We just got back to it. And its been lagging. Although its interesting, keep an eye on ism at 10 00 today. There has been a gap between chicago and what the actual production figures are. Its not quite as strong as the headlines would have you believe. As you say, we certainly have come back. At the same time, we have a changed economy. Ive been watching mexico. We had harmon on last night. The company was up 15 . Theyre moving a lot of their business to mexico. I think that most of the time when you see these companies and they change their cost structure, then their earnings go up and you got to give it a higher one question on bubbles. I made a list on twitter of a people who have made a bubble or undeserved multiple. Elon musk, shiller, bill gross, the list is getting longer. But theyre all big thinkers who dont want to look at well, no, the shillers of the world, they dont want to differentiate among stocks. I feel like thats getting your hands dirty. Okay, guys, is wells fargo really expensive . Maybe versus citi. But were stuck within the confines of individual stocks and among those, yes, tesla is very expensive but tesla is trading at a multiple to edmonds, as a multiple to the 3a. But a lot of stocks are not. We do have some outliers. Amazon is incredibly expensive. Harmon, up more than 10 yesterday is selling at more than 14 times earnings. How is that expensive . And you can back check this against the broader Financial Markets and say is it that stocks are expensive or that valuations are generally looking frothy. Look at whats happened with debt spreads. Look at the junk bond yields relative to some of the thats where you want the whole picture really. I dont disagree with that. Remember, we have huge companies, they fired a lot of people, they got free trade going on that makes it so the earnings can go up. The currency is going to go their way. Ppg is not that expensive but it just doesnt count in these big think guys. Its not his job. I regard it as my job to talk about whether aig is as bad as i think it is. And you do that job well. Thank you very much. Youre very welcome. Lets move on to a stock that is considered to have a pe multiple thats fairly low. Apple rolling out its ipad air, now available in Retail Stores around the globe. This is the first time china and japan have been included in the first day retail launch of an ipad model. Carl is going to model one for you right now. Im going to hand you both at the same time. See if you can tell which one is the 2 and which one is the air. Here we go. In is the air. Nice, very nice. Close your eyes. Were going to do a little shell game. This is the air. There you go. Were not here to show for apple, but the retina display, if you look at what mossberg said in his review, he was not kidding around. Icahn, 525 bid, thats the one i want to own. Who is trotsky, russian prune juice. Its going to go on sale today in the u. S. Well do our normal thing about looking at lines. Gene munster will have the channel checks. Munster says hugh about rich greenfield, facebook. Much better than expected. People say everything. I talked to a taiwan manufacturer of screws for this and then i met with the alcoa people that make this and i have no conclusions whatsoever. None at all . Can i see that again, please . No conclusions. Obviously, you have to work on your channel remember, this is an alcoa skin. And steve jobs loved the feel of aluminum versus plastic. And if you try to get an answer from alcoa about how well things are, theyre going to tell you youre going to have to wait a long time. Alcoa can wait. Yes, yes. Im a mini fan, by the way. You are . Yeah. That means your wife doesnt like what you watch. No, its just easy to carry with you and take with you and much lighter than this and basically does the same things. In terms of the stock and impact and this coming out and mossbergs incredibly positive review i think it does matter. But thats the problem with the analysts. The analysts think its Gross Margins. My suggestion is when you have a superior product, you will see Gross Margins go up because competitors cant compete. And Craig Jelinik at costco, he said this is the product, for christmas, this is the product. And ups has done well and percolating when apple has a new product that people buy. Said on a day that the Holiday Season does begin. Its a little regis. A little monochrome atic. In is an italian made costco tie. Its one tenth of what i usually pay for my ties and it wipes off the ketchup as good as ever. Jim bullard saying labor Market Progress in 2012 provides the most powerful case for tapering. Unemployment and nonfarm payroll gains have shown true improvement in the past year. He says not all job indicators have shown that improvement. The fomc wants reassurance. I bring this to you two days after the fed met, decided to keep its Interest Rate and qe policy in place. You have a kind of dovish guy who is talking a little bit about tapering and talking about labor market improvement making that case. And if there are any questions about how jim bullard thinks, we had him on for two hours on squawk box. Back to you. Really quickly, steve, is bullard the swing vote, so to speak . Is he the Justice Kennedy of the fomc . I think thats a good way to put it. He has been hawkish in the past. Right now he is dovish along with the minneapolis fed president. Id put those two in the middle. Theres kind of two Justice Kennedys on the fomc right now. Good context. Steve liesman at hq. Time to seal it up. The Container Store making its wall street debut, ticker will be tcs. Were told theyre bringing a hundred employees to the floor. Its going to get low. And kipp tindell coming up. A lot more squawk on the street in just a moment. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 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. To tostore and essentially they just get sold something. We provide the exact individualization that your body needs. 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And we got to remember whenever we have these situations, its reminiscent because you did the great special on costco, they pay them high and train the costs so low. This is the old goldman thing. We used to do this thing called retention, where we realized if no one ever leaves, it saves you a fortune in training. Bucknell taught me that. If you have these workers and they do not turn over, you save a for tune tune in training ande like shopping there. The nations second Largest Oil Company was hurt by refining margins and theres a report that tesla is outselling bmw, mercedes and lexus in some of americas wealthiest communities. The model s is the most registered car in eight of the nations 25 most expensive zip codes. Thats incredible, isnt it . And this morning they come out and say theyre gaining significant traction in europe. Once again, a colt rose bigger in is a stock where people who test drive buy. They dont necessarily buy the tesla, they buy the stock. Why do we get yawns when exxon mobil and chevron report, two of the most Profitable Companies in the world . Did we wake you . What was that . Chevron . Chevron. Chevron is a company that is a Great American company that has very little growth. What do i do . Recommend that over tesla, which has super growth . The antibubble crowd heres a great experience. Chevron is right in the antibubble crowd. They have a division refining. Lets go right back to the Financial Times. Refining overcapacity hits shell and exxon mobil. Can i add chevron to that list . Yes. Why did they wisely spin it off . Theyre mad as hell and they wont take it anymore. Shell oil predicted the last gasoline car would be built in 2070. I thought it was 2069. Are you sure . Yup. That was not a good quarter. From shell. From shell. We have cars that dont use as much gasoline. We have natural gas that if you listen to the conference call, people are a little more excited about it. Diesel is 25 of our oil in this country goes to making diesel. Thank you Boone Pickens for teaching us that. If you switch that to natural gas, we would take our ships out of the straits and have cleaner skies and no one really cares. See southwest energy. Well, one day theyll listen in washington and theyll say, boy, he has no idea what hes talking about. When we come back, cramer will help your portfolio get off to a flying start this month. Next, one more look at futures as we kick off the beginning of november. I think with a little morrissey here. A lot more squawk on the street from the nyse straight ahead. Hmm. Mmhmm. [ engine revs ] [ male announcer ] oh what fun it is to ride. Get the mercedesbenz on your wish list at the winter event going on now but hurry, the offer ends soon. [ santa ] ho, ho, ho [ male announcer ] lease the 2014 ml350 for 599 a month at your local mercedesbenz dealer. 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Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Its friday. Amazing how quickly that weeks goes by. Well go to sony. Everyone wants out of sony. Can we look to loeb for help here . He bought them in japan. Its about a 6. 9, 7 stake. Well see what happens. But i would expect hes not done yet and now hes more or less flat on his investments. The parts are worth so much more than the whole. I remember the great Michael Price telling me that, look at all these different divisions. What is our phrase here when you get smaller to get bigger . Shrink to grow. Shrink to grow. Well see. That fight far from over. Listen people who think bubble, bubble, bubble. This is the shares that are owed that a Japanese Company had of theirs. This deal is 67, the stock is already at 68. 64. It sells at eight times earnings. So is that expensive . Is eight times earnings expensive david . Given the risk in this business . Come on. Has that ever supported a particularly high multiple . No, its always