Porky pig. Overnight in asia, shanghai and hong kong down sharply, some disappointed in that fourday meeting of leaders and bank of england cutting its forecast for inflation. Macys beating profits, affirming on the year. And a fight with kraft ends up costing the coffee giant 2. 8 million. Tesla confirming there are no plan foors recall. Outlines his vision and fires back at George Clooney. And doubts continue to compound about completing fixes for the end of the month on baum care. Revenues beat consensus at revenues are up 3. 5 prgs. The ceo says numbers are extremely strong. Sales trends at bloomingdales doing well. Big name for my charitable trust. Ta Terry Lundgren has been able to go against amazon. In is always whos got the antiamazon game plan. He can move around merchandise. Hes got my macys, the regionalization. If you go there friday night in pittsburgh, you will find steelerlike clothes, raleigh, north carolina, its bow ties and sear sucker. The new york store is doing well. I like this i like this one quote from the release, the improvement in sales trends in every region of the country lets be a bear. Lets be a bear. How do you say that . Some regions didnt do better than others . Ive been struggling to spin this negative. They do hold guidance at 390. We are officially in north face weather. North face has very big margins. Especially this morning. Its supposed to get a bit warmer later in the week. To those who would have said macys is having Great Success because of the turmoil at jcpenney, that would have abated given the leadership at penney and yet macys continues. I dont know if this is bad for penney or has nothing to do with it. I think the notion that its all zero sum has to do with the belief that the consumer is dead. I think the consumer is alive and well, they bought a lot of stuff at best buy, theyre buying a lot of stuff at amazon and at macys. This is contrary to the whole political rap we hear all day. The consumer seems to be immune from the craziness and zaniness of washington. And gas prices are turning into something really. Stats say its only 120 a person if the tax goes down a dime. This is a payroll tax decrease in the form of going to the p pump. The average fleet of cars is 11, 12 years old. That money is transferred immediately to things like apparel. Not just candy bars at the convenience stores. Its true, although apparel continues to be somewhat challenging. I dont know within the macys Earnings Release what area is doing well. Kors has been doing incredibly well. It has. There is a split here. Theres the high end del friscos. You eat well, youre high end. You had them on last night. Huge period doing so well. But then you have this group of people who are challenged and i think the challenged people may be benefiting from the gasoline. And were going to the anniversary of the payroll tax increase. Plus we have an earlier holiday. But lets not forget, the calendar versus the hurricane, the super storm is going to get better and better. This group has underperformed. I think its about to outperform. We are going to get walmart earnings tomorrow. You get in front or not . Walmart is so unwieldy. I do not think that walmart is taking share from anyone. I saw a positive home depot note, they report in a couple weeks. Cost co did very, very well. If you want to know who is not excelling right now, its walmart. I think theyre doing fine. Theyre doing fine. The Dollar Stores have challenged them from the low end. Theyre doing fine but theyre not like the old days when it was the when it was what . When it ruled the world . No, the age of oh. I think youre going with the dinosaur rules. We have theyre my two favorite, my eldest daughters favorite two things that cnbc ever did. You cant come up with name of your own documentary, it terrible. Squawk on the street was theans answer to a crossword puzzle, it was 8 down. There it is. Squawk on the street error, the answer of course four letters, cnbc. Sbux. Oh just a sec. I have to do something ive been youre going to get 1. 8 billion out of your brief case to help them out . This is what they did. They wrote a check last night, a big check. They have the money so it doesnt bounce. Who signs it . Howard . Maybe. Or the treasure. Starbucks was ordered to pay nearly 2. 8 billion for ending its Coffee Partnership with kraft. Starbucks revises Fourth Quarter to show a lot of 1. 64 a share. Originally of course it had reported profits of 63 cents a share. They should have taken the settlement early on, its easy to say at this point, which was maybe 1 billion is what was reported they were talking about with kraft. They were unhappy with the way it was being marketed. It was being marketed poorly. They turned it around. This is a gigantic check. This is a lucky win. For mondalease . Yes. Thats a huge number. Thats a lot of capuccino with skim, man. And theyre giving away a 2for1 deal today. Does it reflect on their choices or it reflects on the whacky legal system we have. You agree to arbitration. You conceivably, at least in this opinion, violated the terms of the contract. I dont know. I gasped when i saw it. That is an amount that wasnt in my number. Thats a j j number. Thats what they play every other day for the hip implants. Would i bring my checkbook out but i cannot handle j j. Risperdal and hip implants . Obviously goreski is making a clean this is pacino at the altar making the call. Make it go away. I was thinking goreski might say heres my offer nothing. Were talking about a sett settlement, 4 billion for hip implants. I thought that was a bargain. Was is it, 50,000 a person . I dont think risperdal was hanging over j js head. I say positive things about j j so im a war criminal. People tell me theyre going to be put out of business. No. Viox almost wiped out merck, even though the ceos wife was taking viox. Theres nothing wrong with viox as far as i can see. I would like the total number of fines and penalties paid by j j by what was largely the weldon era. Did you ever go back to that childrens tylenol once you had the it tends to be the same formulation. I im sure hes moved on and he hates me but starbucks, should it get hit by this penalty . The analysts are sticking by it. We just got the quarter. You could argue that it should be down more than this. That is really bad. Speaking of big american brands, teslas elon musk defending the companys vehicles. Musk said there would be no recall of the model s despite three vehicle fires in the past few weeks. Take a listen. Theres definitely not going to be a recall. Theres no reason for a recall, i believe. The perception is, if you read the headlines, it sounds like tesla have a greater propensity to catch fire than other cars. In reality, nothing could be further from the truth. There and theres this interview with George Clooney in esquire, hes talking about a tesla that he once owned and how he spent more time at the side of the road because of the car. Musk saed that was needlessly told and needlessly reported. In 2008 it was his roadster. Musk is fascinating to listen to. When he gets into flying cars, thats where it gets really interesting. He did address the car fires. Its such an easy path im trying not to take a side here but an easy path for a short ostensibly to float one of these stories. Exactly. I felt one of the things that musk did was really tell you how small this whole thing was in terms of the other cars not the pinto, but other cars would have had done the same thing if you subjected them to the torture that these drivers it seems like these drivers were short tesla. They did everything they could to start this thing on fire except to poor lighter fluid on it. I mean, honestly, this was match light. Lets see if we can set match light off here. When he described i believe the second crash where the car hit another car at incredible tree, went flying off into a tree, a bunker, rolled, everybody walked out and then there was a fire. Then they went over the George Washington bridge, hit the brooklyn bridge, bounced over that and they set it to a bricket fire and it still didnt light up until they finally took an acetoline torch and darn it, that got it. Well take one more look at futures. Again, looking at an implied open down about 73. S ps got 531 trading days without a 10 correction as of today. Are you kidding . That is just an amazing stat. Be back in a minute. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. Welcome back to squawk on the street. Im Kayla Tausche at cnbc headquarters with some headlines from wells fargo ceo tim sloane. He made some interesting comments about the Mortgage Market. He said that he expects the Mortgage Market will stabilize next year. This is important because with rates jumping around, a lot of industry watchers have been wondering what will happen to the banks and some of the Housing Companies with the Mortgage Market slowing down. Wells fargos originations were down 40 , its pipeline was down more than half and that was a big contributor for the banks margins, which ground to a halt at 3. 38 in the final quarter. He said he cant promise that margins hit bottom in q3 and that the worst is not over for those margins. Thats why youre seeing wells fargo stock down. He believes as soon as the Mortgage Market stabilizes, which he believes will be next year around the Second Quarter that margins will soon follow. For now, well send it back to you. Kayla tausche back at hq. The House Oversight committee set to hold a hearing at the bottom of the hour, that after news that the web site is unlikely to be fixed by the end of the month deadly. Eamon . Reporter yes, a tough morning. There had been some question about the chief Technology Officer would testify. The white house initially said this guy is too busy dealing with the health care. Com rollout to go up to capitol hill and testify and do all the preparation required for that. Some people had described him as actually sleeping in his office in the rollout of the healthcare. Gov web site, obviously plagued with problems. We have a little of an excerpt for his prepared testimony this morning. He doesnt say enough but he says we have much work still to do but are making progress at a growing rate. Kind of a vague description here. The Washington Post reporting this morning theyre still having trouble with that web site when more than 20,000 or 30,000 people try to sign on at the same time. Well have to see how they hold up to questioning here, which is expected to be very, very tough indeed today, carl. That hearing and the heat that comes with it, with the comments from president clinton yesterday oh, that was something, wasnt it . Watching some political allies turn to you to some degree. Maybe even the media will turn on the president with this. The president p. R. People are going to start turning on this. I think this is the most outrageous story. Its still single head. Its never big. I mean when clinton present, that was very, very damning. Its bad if people lose their health care. Clinton spoke out. Im saying fdr, go back to the fdr era. We try and have a safety net here, according to clinton, not me. Some have argued its hard to reform if youre not willing to break some glass. Thats one of the debates going on today. Anyway, cramers got more stocks on his radar. Well find out what names hes watching and what he thinks about them in just a moment. His mad dash is next. And coming up, well have an exclusive with Chris Albrecht and where paid tv content fits in the mix. Dont go away. Ng your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Therell be the usual presentations on research. And development. Some new members of the team will be introduced. The chairman emeritus will distribute his usual wisdom. And you . Well, youre the chief life officer. You just need the right professional to help you take charge. To help you take charge. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. You can ring my bell, ring my bell you can ring my bell, ring my bell all right. How many minutes are we till the opening bell . Im looking at the clock. It says about seven minutes. We have mad dash. I think this usair, amr deal is so great, i believe this stock could catapult if it follows the direction of what happened when america west merged, they did their big mergers, the stock could double. We were on air, we were breaking it as it happened, trying to understand exactly what the giveups were. With one day having gone by, many say, hey, they didnt have to give up more than what they would have anyway. Its a little more competitive. Now theres only for airlines in the country. Thats true. And they give up these gates. 80 of the market. What they can get when you fly. Doug parker, one of my favorite execs, he pointed out the employees really wanted this. I wonder whether the Justice Department was very responsive to labor, which actually did want this deal. Also, dont forget, these companies have been very lucrative for the first time ever. It will cost you more to fly. They refute that in the Conference Call. But us airways goes much higher. Hair goitheyre going to clo deal in december. Stake holders will own 72 . Deltas the biggest. I like delta more. Really . Yeah. U. S. Steel. You have got to go over the u. S. Steel last Conference Call, waves repudiation of the last ten years of u. S. Steel management. They are saying morgan stanley, this is the beginning of serious cost controls. That steel Conference Call was breathtaking they basically said, all right, forget what weve done, were going to shrink this company and make a ton of money. Shrink to grow. I believe it. One of the worst Conference Calls was the timkin call, tkr, that was a horrible call. Tkr play closed in a night. The u. S. Deal play could be very long running. Dont forget what hyman ross said. What did he say . He said were bigger than u. S. Steel. Thats a reference again to the godfather. You keep coming back to that. Im not sure why but ill watch my back. Come back to squawk on the street. Stay with us. Maestro of projec. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Youre watching cnbc squawk on the street, live from the Financial Capital of the world. The opening bell set to ring in 90 seconds. Futures are a little bit lower here today and if youre thinking thats not too common an occurrence, if the s p and dow are down today, it the first backtoback loss of the month. Last one was around halloween. Well, november when youre up a lot is a good month but its been tough at times. The guy that runs the central bank in london for u. K. , hes got a problem on his hands. Its a highquality problem. That economy is smoking he may have to raise rates. I like that guy so much youre fan. Im a huge fan. Hes one of my guys. Did you ever see his testimony when he got the job . His girls were still in school, he didnt want to miss the school year. My kind of guy. Very nice. By the way, a very crowded floor today. Some representatives from stay america, extended hotels. And of course ringing the bell today, as we get a look at the s p at the top of your screen, theline textbook rental company, chegg. Which came first, the chicken or the egg . The chegg. Over at the nasdaq, a major and biofunctional lipid ingredients doing the honors. We didnt even talk about the cholesterol drug in terms of lipitor. Mary thompson joins us with news. Goldman is going to be naming their latest managing director at noon today. It will be slightly larger than last years at 266. Its pretty much equivalent to a Vice President level at other firms. The new managing directors will reflect goldman as Revenue Breakdown of the new class, with 20 from europe and 20 from emerging growth markets. After 2013, goldman is going to start naming managing directors on a biannual basis as opposed to every year. There was speculation this class would be much large r, maybe double the size the last year. Keep in mind of course goldman has been trying to trim costs in what it calls a tough operating environment. Back to you. Very interesting. Thank you very much, mary. Comes on a week where Lloyd Blankfein made comments at the conference and asked how long hed be sticking around and he said why do anything else, as a lot of eyes on blankfein and his future. Theyre going to have to carry him out of that play or the stocks not been great during this period. It kind of flatlined because the activity has flatlined and some have outperformed but they havent. Its kind of interesting becaus