Europe is down for the second consecutive day. Our road map begins with jcpenney, a pleasant october surprise as comp sales rise for the month. Trends look upbeat for the month and is giving the stock a big boost in the premarket. Deere jumps on quarterlies but lowes falls. And youre going to want to hear what yahoo Ceo Marissa Mayer had to say last night in San Francisco. Well have that for you. Shares of jcpenney up sharply despite a wider than expected quarterly lost. Mike ullman says penneys is encouraged by the open in november. Theyre talking 2 billion plus in liquidity, sequential increases in margins and comps. There was a whisper around they would lose 2. This is the agabeginning what i have would call the normalization of jcpenney. Theyre going to go back to being nothing, just another retailer. Theyll be like kohls. Well talk about jcpenney like kohls. Main thing is you want to buy pvh because they were the supplier that stuck with the previous guy. Notice i didnt call him clown because i came back from the west coast, im a little more mellow. I noticed that. Youre still wearing a tie, though. There wont be that inventory overhang. Looks like we made it i dont know. They lost 9, they lost 1. 94. 740 million in cash flow use. Theyre going to make it through christmas. Im not saying go by the stock. They end with 1. 22 billion in cash equivalents, raised 785 million in the sale of shares. The preferred has been very strong. Thats kind of what im saying. Jcpenney, it was really important to talk about when it was on life support. Now its in rehab. Its doing some p. T. Its szott some o. T. Some dont survive rehab. If youre good enough, why does that not mean material upside for the stock . It want that good. Can it go up to 12, 13 over time . Yeah, i guess so. But macys went from 43 to 50. It was operational improvements, significant ones. This company was dealt a mortal blow potentially by ron johnson. Its not mortal anymore. Its just that i dont think with these kinds of numbers in the most important season that you want to you know, goes to 11 . Fabulous. Would you rather buy penneys or kohls . Is there a Door Number Three . Id rather shop with other players. I think jcpenney why did we discuss jcpenney all the time . Theres 110,000 employees and it would be a disaster for the u. S. Economy if they folded. I think what this quarter says is we got the liquidity to go through but if you go back to when jcpenney before ron johnsons spart, it was not doing anything. It was on a slight decline. I think that thats not been arrested. Its just that the steep decline has been arrested. You got a lot of guys who still may know nothing about retail, hedge fund guys, once again its a free option. Thats good, i like that. Many of those guys bought it and left because they didnt turn around as they expected it would. I just think tjx, my Charitable Trust owns that, these are longterm secular winners. Costco is a longterm secular winner, they offer terrific quality stuff at a lower price. Jcpenney is going to be on that coupon goround. The only one ive seen do well on the coupon is bed, bath and beyond. Dont forget this was a horrible Third Quarter. With jepine. This is the quarter that says you could shop there and it going to exist january 5. Many retailers ive seen, january 5 theyre calling people saying, hey, nice to meet you. Youre saying this story this morning is still about hope as opposed to results . Yes. I think if you want to own the stock, what youre betting is that retail is going to be very strong and a rises tide lifts all boats. I do think it was great when they talked about womens and mens apparel being strong because those have been whats been weak. Thats why i mentioned pva. If those strongs are strong, its going to be a pretty good Holiday Season, as opposed to best buy. A price war can be good for the Holiday Season. It just not good for those involved in the price war. I want to end it here. In my comments on i have more to say. You always have more to say. That i have no doubt about. Ill end by saying on august 20th were going to end the year in 1. 5 billion in overall liquidity. They now have 1. 7 million in overall liquidity. Nd p but they did raise 785 million. How did they raise that money . Turns out this evenings are a little better and then you issue stock. If i were them, id issue more stock. He gets the last word. Lets move on to two stock heading in opposite directions. Home improvement lowes is down. I look at lowes and i look at home depot from yesterday and i say is one Company Simply doing better job . Weve been selling lowes for the Charitable Trust. I didnt sell it fast enough. When you have plus six comp, you should be making more money. Operating expensions were down. I make no excuses for it. I thought the other day i thought are they on pace for the year . The stock was up 48, 49, home depot up 25. Frank blake go back over that quarter. Some divisions were incredibly above plans, double dj ilt for appliance. Lowes was not like that. I thought that the restructuring had more room to go. Seems like low east is peaked. Im disappointed they couldnt make more money on those sales. Home depot is making fortunes on its sales, which is why theyre returning so much cash. Better execution . Yes, period. I have nothing more to say. Lets go to break. Theres another housing play to some degree. Lazy boy is up. Is there any halo to hd . Hd was staggering. Theyre saying the pro shopper is back. The renovation in rehab going on in this country they have a great line in the home depot flyer, it says if you put money into your moment, youre going to feel great. By the way, cree light bulbs called out. Home depot says you no longer that no longer like the squiggly craziness. They look like other light bulbs. This twotone home, they look terrible. We should do the show from there sometime. I should show you my closet. We could do shows. Lets go to deere. Im trying to see how they can screw it up on the Conference Call. Continuing operating perform, you he know his way around, after 25 years. Whos counting. Fiscal year cash flows from operations, 2014 forecast is 3. 9. They had 4. 7 billion this year. If they focus on this chart look, these guys, i dont know. I mean, maybe like the American Farmer is gloomy but deere finds a way to take fantastic numbers and make them into something you dont want to own, and i hope they dont do that. What they ought to do is just say refer to our quarter. Dont give us color that drives the stock down like you if i were producing the play of deere, i would say make it a comedy, dont give me henry iii. Dont make it taming of the shrew. Yeah meantime the fed is going to be in focus today. We have the minutes from last months fomc meeting coming out at 2 00 p. M. Eastern time. And ben bernanke said the fed will maintain the easing Monetary Policy for as long as needed. In particular the fund rates is likely to remain near zero perhaps well after the unemployment threshold is crossed and at least until the preponderance of the data supports the beginning of the removal of policy accommodation. Interesting set of q a, said the confusion over the taper in the summer was neither welcome nor warranted. He made it pretty clear. Can he get good numbers autos, get good numbers housing . I dont know. In the end, when i was out at west coast for dream force, what i was conscious of was these companies are tremendous disruptors. Meaning you can fire a lot of the. Theres just these counter boyi boying. Well, theres like four plints being built. Theres nothing structurally positive about employment right now. He talked about the. Drans of data supports it. In the drig driver of it takes an interstate highway system. I know people dont want Big Government in this country. Its talked about over and over again. Theres no private industry that can get this economy going the way bernanke wants. We dont need an incredible infrastructure upgrade in this country. 4. 4 trillion. Is that all it is . Its sore live needed in so many different ways and so important to the future. Front page, the airports will be as busy today as they are right before thanksgiving. Can you imagine that being true . Youre right, theres a lot going on. Opt co says boeing will peak in 2014. I dont believe that. China has cities that dont have air right now that will be very busy in a couple years from now. A coal plant every other week that opens up, and they refuse. When we come back, yahoo Ceo Marissa Mayer talking about what her companys betting on. Well talk about that 5 billion additional buyback and why shares are going to open up 3 . And the ceo of tumi will be here. Future is looking decent here, implied open 20 someodd points. A lot more squawk on the street. Live from post 9 in a moment. Its as simple as this. At bny mellon, our business is investments. Managing them, moving them, making them work. We oversee 20 of the worlds financial assets. And that gives us scale and insight no one else has. Investment management combined with investment servicing. Bringing the power of investments to peoples lives. Invested in the world. Bny mellon. 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. Shares of yahoo up in the premarket. The Internet Company increasing its buyback by 5 billion and announcing a 1 billion convertible note offering. Last nights dream force convince in San Francisco, Marissa Mayer talked about the key role that mobile is playing in his companys growth strategy. We dont think as design first, we think of ourselves as mobile first. When you look at whats happening with the mobile trend overall in our industry, its clear that it a wave large enough that you can ride it to reinvention. Yahoo has to constantly reinvent itself and the scary part about reinvention is it happens best with platform shift and we real want to ride the platform shift to mobile. Above 35. You have to go back to 06 for those levels. David faber was talking about how the alibaba stake could be the biggest thing. It is. And yahoo japan. It may be shes successful in reinventing this company but i would argue we still dont know. Youre seeing a move up in the value of ali baba. Theyll sell about 9 in that company next year when it happens. If you assume a 38 tax rate, they only have 3 billion in cash, raising another billion and dont forget the 35 of yahoo japan which has been performing extraordinarily well. So thats where its come from. Buybacks and increased value in ali baba in japan. I talked to the guy from yelp. His the only guy whose laptop is worth more on mobile. Facebooks done a great job in trying to monetize mobile. Yahoo still not great. But theres always hope. In the mine time alibaba rules. How much up side if we got engagement and metrics that actually were better, some share that began to come back . Geez, could you see mid 40s. The positive for them is they have enormous stashes of value in yahoo japan and in alibaba that they can continue to use to try to transform the business. Or return to shareholders. When you hear where advertisers want to be, they want to ride twitter and not pay twitter. They have to accept the fact that theyre going to pay facebook. They like aol because they want to be against aol video and yahoo no ones sure yet. They want to make a bet but theyre really making a big bet on facebook and on aol video. Tim armstrong when he was on, david, you mentioned to me that Tim Armstrong said he was the internet of all things. Thats salesforce. I find him to be the best in history. The cpms on video are in a different universe. Thats where the prices havent come down. If you are can curate videos so youre not against porn, can you do quite well. You know what time it is. Cramers on deck with his mad dash. Well get stocks worthy of his attention and yours. More squawk on the street from the nyse is straight ahead. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. It feels good, yeah, it feels good its mad dash for a wednesday. Where we going . Jpmorgan . Im going to call jpmorgan the evil empire, that way im safe from twitter. My trust owns shares in the evil empire. Mary lake says the importance of the Justice Department deal is quite simple. It says we have a much narrower set of mortgagerelated risk than we did before the settlements. When people have less risk, they say what if they earn 5, 6, then you get maybe an increased dividend and then up have a 60 stock. This is like jcpenney. The normalization of jpmorgan would show tremendous, tremendous growth. People are looking at this hit as onetime only. Does that mean normalization of regulatory bodies all over, volcker rule, where are they actually . Yeah but the big litigation his being risk i think is over. You should see what they did to mortgages. I think caterpillar is fabulous at forecasting, bad at executing. Heres some october statistics. The worlds down 12 . Asian pacific done 26 , latin america down 8 , rest of the world down 17 , north america the standout, minus 2 . They are not executing well but the board seems to like it because theres been no changes. Were going to see a lot of changes potentially in a lot of different stocks. The opening bell right after this. Now access live cnbctv with your bare hands. Your bare hands. Its an app, it [ male announcer ] once, there was a man who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Youre watching cnbc squawk on the street. Big day for the fed. Well get minutes from one of the critical meetings where they probably discussed a lot of communication that was during the government shutdown, speaking of which retail sales this morning, best since october of 09. Actually best since july. Cpi was lowest since october 09. Retail sales apparently unaffected. Gasoline, Steve Liesman said not spending as much on gasoline, were biography sweaters. Its true. If you looked at it empirically, its apparel, a little more money in the pocket, not going to walmart, stepping up a little bui bit higher. Down here at the big board, Nuskin Enterprises and over at the nasdaq, advanced energy. And nuskin, you do personal care and you push it, this is the opposite of avon in terms of performance. People betting against nu skin have not been rewarded. Jcpenney a winner out of the gate, up more than 9 . Your story, youd rather by pvh. Im not about surviving. Im about making money. About thriving. Dont survive, thrive if theyre doing well, what is Terry Lundgren doing at macys . Just putting points on the board. Pvh is going to go much higher. I think the calvin klein deal is going to pay off dividends. Lowes, second biggest loser. Disappoint ing. And smuckers, after kelloggs and campbells soup, somethings going on in food. Campbells soup, they talked about how disappointed they were and then they talked about how great they were. I dont know, its not great. We have to talk about the winners and losers. Clearly lowes is not making as much money per sale. I bet you the stock isnt down this much later on. I dont think this is best buy where people at this point upgrades best buy. Smuckers, theyre a really good operator and theyve done a lot right. So youre absolutely right. The core of the retail store is not doing well right now. People just are not i know that safeway brought in salesforce. Com. These guys are trying to figure out new ways to bring with their customers. Whole foods did have a tough quarter. I think the supermarkets, with the exception of kroeger, would seem to be a great operator. Holy cow. Everybody else is a little challenged receipt now. I dont shop at kroeger so its harder to know but, geez, theyve done a great job. When you were on the west coast, did anybody talk about the pc . Next week well talk about Hewlett Packard and we heard from dell this morning on squawk box. Whats going on there is the tablet. They talk about chrome as being a highlight. They like google pcs and a lot of people are feeling meg whitman has been able to develop new products around pcs that are going to surprise. I heard a lot of great buzz around meg whitman and Hewlett Packard. Theyre talking about put the printers and ups and cvs and have seamless printers everywhere. Meg whitman has been successful so far. I believe meg will join us a week from today. Are you flying out there . No, shell be with us in the morning. Hewlett packard will be reporting after the close next tuesday. I didnt hear much from dell one way or the other. Hewlett packard is going to be a winner bec