The markets posting their biggest selloff since november 7th. The major indices all down more than a percent this week. Its a big day for ipos led by hilton and aeromark. We have the ceos after trading begins. Facebook, shares up on news the ipo will join the s p 500. Lululemon lower on weaker guidance. The day after the dow closed down, the worst day since september. Retail sales showed an uptick in november. Next week all eyes will be on the fed meeting as investors watch for the potential taper from the federal reserve. Maybe decks are cleared for a taper or at least a serious discussion for one, why not take your gains for the year. Is thats whats happening . We had the largest order in balance weve had ever. If you take a look to sell, if you look at when the market broke down, its look, i can shoe horn anything. I can say thats because of taper, i can say thats because of the budget deal. How about this because of the possibility that there are lots of funds that are locking in. I dont want people to be discouraged. Locking in is technical. It means part of the business, dont give up the gain. I see a lot of dont give up the gain in the last few days and i think when that runs its course, the buyers will come in and say i have to put money to work, position for 2014. This is a transitional moment in the market. Youve been saying financials have benefited from higher rates but i noticed the financials were taking it particularly hard. Very true. I also talked to people yesterday who say the computer is taking over here. Whatever the program is that said sell the financials. I know people dont want to hear that, people feel thats a cop out, you havent done your homework. But can you only make so many calls and get that it was an algorithm before you throws your hands up and say i did it yesterday. You talk to five, six people and they all kind of come down to the same thing. Maybe youre right. Maybe it a cop out. Order and balance. Financials were very weak yesterday. Not quite sure why, if your thesis krek, which is this should benefit from a Net Interest Margin that will widen. I have been doing a lot of work on bank of america. I believe theyre having a really excellent quarter. We had the Jpmorgan Madoff news. I think the stock doesnt get hit anymore on that. Were going to talk about the lululemon warning after the commercial. Profit warnings at a peak. You called Athena Health this morning a total disaster. Athena is a cult stock. My i think its going to be up at the end of the day. The book to bill was north of one, the reason why the Gross Margins had a problem is just the number of salespeople added because of the hugium of orts would have gone to cisco. The release is more negative than the Conference Call and it all about how many orders they have. I was worried about the guidance. The guidance is great. Athena is just one of these stocks. This is a medical record coming. But they didnt execute. Theyre not changing the longterm 30 goal, as i understand it, i didnt is why at the Analyst Meeting youre going to see that stock perk up. That is off the lows, by the way, from earlier in the free market. We have a lot of ipos today. Two of them are public companies. S the company priced its shares at 20e last night. That was near the top of the 18 to 21 range but some might call it the middle. Food Services Company aramark also will open today. Weve had some negative numbers out of europe. Baltic rate is up to 2337. By the way, the suez numbers are in the 30,000s. I remain convinced china is on the grid. Chinas strong. This is just what it costs to ship and it tends to be things like coal, minerals, even though people are tempering on minerals, bernstein rolls out with a buy. Copper, jjc, watch it. Copper could go either way. On the ipo front, you want a taste of these . Its got to open higher just to get on par with hot. Now hot is starwood. Fritz is just a great manager. And its a bit of a lower multiple than marriott. The thought is youll get people who will get ahold of it and hold it, its not going to be home for flippers. I agree. Both are vintage buyouts. I think aramark was started in 06 and hilton was a bit after that. Right before the end, right at the top of the bubble of the lbo craziness, if you will oned hilton, too. Hilton stayed alive when there was a lot of low hanging fruit to grab ahold of, now its going to be a big win for blackstone. Aramark, well see. Hilton is going to raise 2. 3 billion. Twitter, which got an enormous amount of attention a few weeks ago raised just over 2. Well see if it gets the requisite amount of attention. Hiltons an institutional name. Twitter is an individual name. The institutions dont own twitter. They took the profits. But individuals kiem in at that 40, 42 level while institutions were shorting it betting they were going to break it. They couldnt break it. I think twitter has joined amazon and netflix. Think about it as if its modern art and you see those prices and you see i dont get that versus rembrandt, versus renoir. This is frank stella. You like stellas stuff . Im not a big fan of stella i have to say. I have a barnett newman. Its a poster i have when i was in college. You have ever seen the prices on that stuff . This media giant will join the index as well the s p 100 to replace tear a diradyne. Instagram will hold conference later today. We knew this would happen. It took google 20 months about its ipo, almost the same for facebook. Facebook very controversial versus twitter. Weve gotten a lot of notes saying that people like twitter better. Interesting deal today with pepsico. Replacing coke. Look, were at a moment where facebook is getting that those three companies are building a book of business off facebook. Domin dominos, 40 of their business is online. I think facebook is so much cheaper than twitter. But so many things are cheaper than amazon. But you got to earn that. Twitter is not able to has not earned that right. No, it hasnt. And wont for a long time. Amazon has been around for quite some time. Thinking that twitter might be aol in its original incarnation . Its shown its ability to innovate and grow at scale, by the way and do all kinds of different things. And youve mentioned with their charitable trust. Youve switched out of facebook into google. Do you wait for facebook to get cheaper . Yes. Obviously a spike on the s p. I think facebook if you look at when facebook started come being back from 4r5, 46 is when twitter started coming back from 41. The stock is trading as pairs. As you said,twitters unseasoned. Google is firing on all cylinders. You talk about g. A. R. P. , growth at a reasonable price, google is cheaper than most of the stocks we talk about. It doesnt get talked about enough. It is. Its a Free Cash Flow story and i hear it a lot from the media. They do when theyre off the desk. You cant not like it, people say, given youre not paying a lot for it. It is a really good company, good stock. Lulu is getting het this morning. Should the transition be a worry for investors . And also ahead, is the third time the charm for aramark. Ceo eric fos is on tap. And a lot more squawk on the street live from post 9 in just a moment. Were aig. And were here. To help secure retirements and protect financial futures. To help communities recover and rebuild. For Companies Going from garage to global. On the ground, in the air, even into space. We repaid every dollar america lent us. And gave america back a profit. Were here to keep our promises. To help you realize a better tomorrow. From the families of aig, happy holidays. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. The company gave an outlook for its Fourth Quarter lower than what analysts were expecting. Meantime home depot in the green today, investing 300 million in its supply chain to support sameday delivery. Jim cramer spoke to frank blake last night on mad money. We went through a time when homeowners lost half their home equity in the space of three to four years. Half a trillion dollars in home equity. Now its coming back. We see people are willing to spend in their house. They want to make sure, though, its an investment, not an expense. As their house increases in value, theyre more willing to spend because thats an investment. Theyre going to get that spend back. Its certainly been helping them. I loved your conversation about led lighting. 22 years the new bulb. Said you got to put them in your will. And the light is much better now. It no longer has the eerie glow of the twilight zone. This is an important interview for what frank said. He says this is not the ninth inning, this is not the eighth inning. Hes saying there are powerful demographic switches. The amount of money spent as percentage of gdp on your house is so incredibly low, the replace number of homes each year is so below what we need, more People Living with your inlaws. Those people need homes. Ive never heard frank blake this upbeat, ever. Really . Never. On lululemon, inventory has outpaced growth for nine quarters. A difficult macro but it would be naive to not consider our issues it would be naive to think they didnt have some impact. It reminds me when intel had a recall in the 90s of 486. You put out a defective product, people are not too excited about shopping there. This is no longer the only one that makes this apparel. I pulled up with the ceo of macys this morning and one of the hottest sections is this kind of apparel. Lulu is missing this moment. My yoga class. Youre doing that would not being a positive there. The vic room if you want to private equity. Active wear is where it is. Why doesnt that give lulu a chance to leverage a come back faster than you think. I think theres probably really things wrong in their supply chain. Ni nikes gave the concession of finish line. Anything footwear is incredibly strong. What about footwear . I asked lundgren, what explains that . He said it has to do with where women are willing to wear these clothes. They used to only wire them at the soccer field, sidelines and gym nationiums. They now feel comfortable shopping in it and food market with it. Thats a very big secular change in the way rim dress. Thats lundgrens view. I am not necessarily an aficionado on the way women dress. I like them to dress nicely. Yes. Terry knows his shoppers, we know that. Had you a busy morning. You were there by like 7 30. Yaur of 7. Takes the interview. That picture, why was he at macys and then again, why wouldnt he be. Thank you for looking at jim cramer on twitter. They were lined up to get into macys. There was a bit of an event. Still, that macys store is so gorgeous. I felt so inspired to do buying there. But then i remember david faber said dont go to Department Stores and just spend like crazy. I think thats part of your ethos. It is part of my ethos. Keep it simple. And sh reng to grow grow. Youre an omni channel person. It not youll about get ready for cramers mad dash. It going to be very busy over at post 8, hilton and aramark going public today. Squawk on the street is back in a minute. Tdd 18003452550 trading inspires your life. 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. 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This company is so back, alcatel is a throwback but theyve reorganized, cleaned up the Balance Sheet. I would have expected a cisco to win this kind of order. I think this company is back. Remember when lucent would trade in the 80s. Look out that, brazilian contract they didnt get. This is a crossborder deal from some time ago, on the brink of bankruptcy really and its survived. And now its thriving. Im sure will say they got in this order because they dont have an nsa that snoops and china doesnt like china has its own waah way. So dont know why they wouldnt go that way. Nokia also . Remember when nokia wasnt just a river in finland, it was a great company. Nokia. Rbc says buy it. Monetizing to intellectual property. I wanted to mention this because of the contact between nokia and blackberry. Nokia sold to microsoft, sold to you, steve and then began to spend that money, fix their Balance Sheet first, thats a common theme and then came up with some products that are winning and their intellectual property is being monetized. Blackberry, maybe they should have sold the handset business to somebody and monetized the intellectual property. They failed to do that. Thats why blackberry going like this and nokia doing like this. Two ships passing in the night. One feels very titaniclike and the other maybe like an intrepid. Didnt the eagles win the super bowl in no. Weve not won a super bowl ever. Ever. I know, thats kind of its something i have to live with. Apologize for that. I must have been mistaken. Of course the jets havent won one since 69. The opening bell just a few minutes away on this thursday. Were back after this. 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Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Youre watching cnbcs squawk on the street, live from the Financial Capital of the world. The opening bell about to happen in just about two minutes. Very busy scene, post 8 here on the big board floor. Two big ipos, hilton, raising over 2 billion and aramark, a philly company you probably know pretty well. I worked for aramark at one time. They had the stadium contracts. Hey, ice cream here, vanilla and chocolate. Thats when i learned how to call people chief and buddy. Hear me out. I wonder if we didnt have lower rates whether hilton and aramark would have failed. They would have been dead. Now, your ability as a high Leverage Company to refinance, we expected a slew of bankruptcies of the go privates from 06 and 07, and the opening up of the high yield markets to credit we never thought, yes. People need to know this, its what didnt happen that bernanke should be praised for. He gets a lot of heat. But these companies didnt go under. Thank you, ben bernanke. Sorry, i apologize for saying something good about bernanke. Please, dont let that happen given. [ opening bell ringing ] theres the opening bell. And the two big ipos down here. Ringing the bell is Food Service Provider aramark, celebrating its ipo today. Oo lot of guys on the floor in chef hats. And over at the nasdaq, dexcom. Well keep our eye on both of those as we get indications from pisani in a moment. The other thing people say low rates may have done is provide a platform for Oil Exploration and exxon is out today talking about an abundance of their supply. They think the u. S. Should drop restripgss on exporting domestic oil. Marathon said that again last night. This is going to be a continually theme. However, i think that these are struck that ilt a political issue. We were trying to send oil to canada. I remember when they were shipping the alaskan oil to japan. People hated that in this country. They directly relate that to higher gasoline prices. Dont. Its a little difficult to explain why gasoline prices dont come down. Theyre pryce off of the world price, not the domestic price. Exxon is still a refinery. Different from natural gas, which we are going to be exporting. Yes, lng, the big winner. I want to take a moment to mention stocks we might not otherwise. You can go online for no charge today sponsored by oracle. Oracle is challenged by the cloud. The downgrade is supposed to be a valuation downgrade. When you go out and speak with people who are in the cloud, every vert tall so to speak, whether it be meta data, attacking them on how they keep trook of their sales or whether it be workday, first on human resources, oracles a challenge company. I do not like the stock interesting. It the biggest loser on the s p now. Call jillian, it going lower. Apparently according to reuters telling investors hes beginning to see the u. S. Market recover. That comes after he had brutal things against emerging moorkts a few weeks ago and the guidance has been so poor. Look, cisco, i dont think people should on it. If they do own it, take the bucks and go. Others arent down beat like cisco. I wanted to hit on satellite di distribution and content on t