Yesterdays negative market action. There you can see the s p, the dow and the nasdaq, all looking like we may be implied at least for a positive open. We shall see. That allimportant tenyear note deal. Interesting how rates have been moving up over in china in terms of borrowing rates. How are we doing here in the states in well take a look at the tenyear, which is still hanging right in there at that 2. 7 range well call it. Go across the atlanta to europe. Well call it a mixed picture. Is that your call . Yeah. They dont celebrate thanksgiving there. They dont have that seasonal lift like we have here. Thats true. We start with tiffany, shining just in time for the Holiday Season. Sales in asia helped to shield the outlook and the stock. Remember when jos. A. Bank withdrew its offer to buy mens wearhouse earlier this month . Now theres a twist as mens wearhouse tries to buy jos. A. Bank. Tiffanys posted better than expected results, total sales in the Asia Pacific Region were up 27 . It raised its fullyear forecast. Seems like not that long ago, i can remember thinking whats wrong with these guys, they havent gotten together. Suddenly they have. Their numbers didnt do well. We put together on mad money a gatsby index. The gatsby index is up a total of 25 year to date versus the s p up 15. Unfortunately i put coach in there and lululemon but tiffanys has been a real star, powering along with starbucks and michael kors and brunswick, because they make boats. This is the rich people spending, david, globally. Youve been talking about this as an idea for some time, the gatsby index you refer to and its been working. Right. If youre obama, i think youre watch being the show probably not. But if you are, i think youd be saying we didnt raise taxes high enough, these people are still spending man, they spend like mad. We talk about it as many times being a result of the outgoing fed chairman. They were just talking about him on squawk on the street. These are tiffany cuff links. Im feeling it. We have the First Amendment and we defend it in our country. We dont typically put squour journalists in jail. Occasionally we do, which is a bit scary. The obama administration, they havent been particularly kind of journalists. I want to speak out in favor of journalism. We can get to watch incredibly brave people in countries they would not believe. We stand up to ackman and icahn and these people stand up to tyrants and their families go to jail. Thats the way it goes in other countries. We dont do that. Anything in retail we should be looking at . Container store starts with buys. Remember vince the other day . There is just an allure to spending. If there is a way to show excess spending and if theres a way to be frugal. This is the weirdest bar bell. Peep want to go to macys and buy kors and twomey, when theyre not doing that, theyre at costco stuffing their car with toilet paper. Its good to save money but then they get out and spend a lot of money on hard goods with value. Japan we talked about for many years have had an important presence but its beyond that at this point. Seems to be a pretty positive read from that part of the world as well. I happened to be with someone last week who just came back from china. In macau where people go to show the wealth, there is a run on 500,000 watches. People dont understand this in our country, but if you cant buy houses, the way you show your wealth is in watches. Rich people in china are really an engine of both for the globe right now. Particularly the european high end, which just has brands that they love. We dont talk about it enough. We should. We had talked about some of the crackdown on the communist Party Leaders being perhaps their lack of willingness to show their wealth as they had been because of concern being an issue. Thats been an issue lately under the new regime. They are heir to capitalist roteors who say there is nothing wrong with being wealthy. I believe the chinese under that hair tutsi suit of communism ar spending like mad, louis vuitton. You didnt like fitzgerald. I thought id share that with you. That last one that was not finished i thought was nonsense. Tender is the night . Mens wearhouse offering to buy jos. A. Bank for 55 a share, comes almost two weeks after jos. A. Bank this is interesting. We thought this was a possibility. We have an activist investor here, owns 9 of mens wearhouse, owns 4. 9 , not a large dollar position of jos. A. Bank. Again, these are relatively small companies, but its been an interesting saga. And here we are today, mens wearhouse does turn around, plays the pac man defense, though it is the bigger of the two. People are asking me privately, can revenge really motivate . Is revenge part of the arsenal that ceos have . This is greatly this is vengeful. I think this is more about making sure which Management Team keeps their job. I think thats part of it. Could jos. A. Bank have started this in order to get the ball rolling . Well see. Its hard to imagine bank bajos bank will nott iengage with the. I have not spoken to their advi advisers this morning as to what their approach will be. Ricky sandler will play an Important Role in being one of the largest shareholders in mens wearhouse and in jos. A. Bank. I asked him last week when he joined us about this very scenario. You mentioned mens wearhouse buying jos. A. Bank. Would jos. A. Bank have interest in that . The ceo said theyd be amenable to it and theyre obviously the Bigger Company. I think theres multiple ways this can play out for here. We can have a shareforshare merger, one can buy the other for cash. Theres just a lot of ways this can go. This this case its cash. That number may not look that large, 55, given where the stock is trading. Theyre claiming it on a 45 premium back to october 8th when the first news reports of jos. A. Bank trying to buy mens wearhouse surfaced. Theyre talking about synergy. So between 100 and 150 million. Not revenue synergies. When you look at the press release, theyre all folk ubsed more on cost and things of that nature, whether its Customer Service and mashing practices, streamlining and efficiencies of that time. Well see what jos. A. Bank says and well see what plays out here. A victory from mr. Sandler. David, you date yourself. Please explain to people what pac man is. Its a video where you could turn around and gobble up who was coming after you. And weve seen it rarely in corporate defense. There was a famous one between Martin Marietta and bendex. That didnt succeed. I think e2. It did work there. Its been talked about a great deal but executed very infrequently. Given the fact that the mens wearhouse is larger, this may have some legs. This is a merger that makes so much sense, its incredible. Its a struggling category, the Mens Clothing category. These two do need to get together. This is a very tough time for that particular aspect of retail. They should get together. One would expect its more likely well see a deal here. You x out golden gate, which was a part of the Equity Investment for jos. A. Bank. The hope is you get multiple expansion here. Again, the toughest category of all. We sit here and we just bemoan. If you look over and over again at mens suits, its been a declining category for ages. This is the only active deal, interesting deal out there, even though its very small. Jos. A. Bank will like the way he looks when this is done. Well see. Lets get to the weather. A major winter storm has dumped heavy snow and ice across much of the midwest and is heading east just in time for thanksgiving. The weather chnlannels julie martin joins us. Reporter a big mess on the busiest travel week of the year. Here in atlanta its ban rain event all morning. Weve been fortunate to say a little bit above the freezing mark. Nonetheless, still pretty messy and chilly. Were in the 30s. Weve seen freezing rain and sleet in places like virginia, North Carolina and kentucky. So the travel tieups are likely to continue as this system continues to push into the northeast. Also air delays are going to be major come tomorrow in all of the hubs along the east, new york, d. C. , boston, all expecting heavy delays. Right now were seeing a few delays in atlanta due to weather this morning as well for arriving flights. A Traffic Management program now in play. So definitely not good timing for all of this nasty weather and its going to be a couple of days, actually this evening day, before we finally quiet down. David . All right, thank you, julie. I hope the parade happens, one of my favorite days. The balloons are okay because they get a lot of wind. And it like the fall of saigon did you ever carry a balloon . No, ive not done that. Or been on a float . Havent had a shot yet at that but im still young. Dont forget that. In my mind youre fref young. Coming up, Robert Shiller will break down the caseshiller home pricing report. Well probably ask him about the market, too. Take a look at the futures here. More squawk on the street live from post 9 when we return. vo you are a business pro. Maestro of project management. 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. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. If the house is arockin, dont come on in lets get back to the key housing data thats out this morning. The latest s p caseshiller report showing u. S. Home prices rose 3. 2 in the Third Quarter. That versus the Second Quarter and the yearoveryear increase, the biggest in 7 1 2 years. Robert shiller, Nobel Prize Winner and professor. Should i make anything of the fact that 19 cities had lower projections than in august . I wouldnt make anything of it, its seasonal. Theres much more balance, similar to last month. Were still kind of up and away, arent we . We are. Its kind of remarkable. If you look at a plot, it looks like were off and running. I say looks like. I dont know if we really are but right now we are. Robert, i dont know. I deal with a lot of Real Estate Companies and we hit a wall last month and sales stopped in this country. Id like to know whether youre seeing anything ahead of these numbers which indicate the incredible decline in transactions that has occurred during the month of october . Well, i dont know. I dont have any explanation. I do a survey ive done a Questionnaire Survey about home buyer attitudes and i dont find that theyre as excited about the Housing Market as the price increases seem to suggest. It may be more of an unusual demand from investors thats driving the market now or its the pullback from the large number of foreclosures weve had before. I just dont see a lot of home buyer excitement, expectations. Affordability kind of fell off a cliff. We have a lot of housing people on the show. And they tend to be as positive as theyve been for the last five years, but to me, that affordability did get out of control. Has historically affordability been a good indicator of the dropoff in sales . Id have to check. I havent done the analysis. I would suspect not. I tend to think that the market is driven more by psychology than any careful calculations than affordability. How do you measure excitement . Is that a subjective measurement . I try to measure it. I do it can Questionnaire Surveys. There are other people doing them, too. I just dont see evidence that people think were launching out on some great new era. Thats what people thought in the early 2000s. Now theyre looking at the problems in congress and the fact that fannie and freddie are propping up the market and we have bills to wipe them out. People are not so excited or sure about the future. I might be actually happy theyre not feeling like they were in 2005. We dont want to go back to that, youre absolutely right. It would lift the economy but of course we know how the story ends. Professor, you mention the presence of institutions. We know the blackstones, the colonies and others that have been buying up a lot of individual homes. They may be at the end of that or certainly at the tail end of a lot of that buying. Is that going to affect prices . The word seems to be from them that theyre longterm investors, but i suspect theyre not. I think what theyve learned, im guessing, not from any direct information, theyve learned theres sorhortterm momentum in the market. But as soon as its weakening, theyll exit. We cant trust momentum in the Housing Market anymore. These guys will say its a brave new world and the rental market could last for years. Maybe perhaps they are rationalizing the purchases like many people who bought stocks at 4,000 and 5,000 in the nasdaq in 2000 . Yeah, i think so. Its true the rental market does seem to be coming back and a role for people who will convert owneroccupied to rental. But theres also a speculative component. How can they not notice how fast home prices have been going up and the fact that historically momentum is a much better play in housing than its been in the stock market. So im pretty sure its on their minds. Theyre not going to say this, i guess. Theyre not going to say that were ready to dump them. Finally, professor, real quickly on the markets, dow 16,000, nasdaq 4,000. Whats your reaction . Well, it looks like were a little bubbly in the stock market. My cape ratio, real price divided by tenyear average of real earnings. Thats pretty high. If it keeps going up like this, the expected return on the stock market will fall below the tips yield. That might be happening. I dont know when it will end. Excuse me. All right. That could be worrisome. I wouldnt want to get less than the tips yield. You move up in the beginning of the year, in january could be tough. Professor shiller, as always, appreciate you coming on. Thank you. Robert shiller from yale. Two days to go before thanksgiving. Your portfolio, could it benefit from a dash of cramer . Well, youre going to get it. Mad dash coming up next. [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it could save you in outofpocket medical costs. Call now to request your free decision guide. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. See why millions of people have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. Dont wait. Call now. Its time for mad dash here on a tuesday. I think this is your last day. We dont know. We dont know. We dont know. I shouldnt be talking about everybodys schedule. Lets get to talking about the work day. This is an amazing stock. Busry is one of the great executives. Hes delivered the antioracle. When i was interviewing him last week, he said were going for everybody. And theyre winning. Accelerated Revenue Growth last nigh night, high multiple stocks were getting killed yesterday. He was telling me 90 Customer Satisfaction rate. When theyre in, theyre in big. Theyre moving to financial management. This is the most expensive stock i follow and i think its going to go higher. Its the most expensive and youre still positive to buy it at this multiple. Busry built remember oracle . Do you short oracle . Yes. Really . Yes. I like that. Good for you go long workday and short oracle. Thats going to be a great pair trade. You do pac, i do pair youre going to get killed if theres an actual bad market. You are too funny. Coming up, three and a half minutes, lets call it. Lets see how we do on this tuesday. Were back after this. [ 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 cnbcs squawk on the street. We are live from the Financial Capital of the world. The opening bell set to ring a little less than 30 seconds or so this morning. Listen, Robert Shiller may have had a cold, but i still heard him. He seemed a little bit worried about froth, at least following his tape ratio. The guy did win the nobel. But there is a very big flag in that index, in october were giving to see a flplateau in relation to higher rates. But also the stock market. The market is really being driven about performance catchup. Guy