Lifetimes. Market with little changed coming off the massive rally in the secret meeting off the fed. It says its just misunderstood. Daytime at ebay. Carl icahn drops his campaign to split the company in two. Gets a new board member. The biggest ipo of 2014 finally prices the low end of the range. Is this the top of the ipo way . The ceo will join us. Walmart goes all in for organic while other retailers report negative news. Can you blame it all on the weather . First up, though, just what the doctor ordered for the bulls. All three major stock indices each rose more than 1 in yesterdays session after minutes from last months fed policy meeting indicated the central bank may not raise Interest Rates any time soon. One of the socalled momentum stocks was the biggest gainer on the s p. Facebook up 7. 5 . We watched that thing climb all day, jim. A lot of talk about how many growth guys are actually just taking refuge in fb. Yeah. The Analyst Coverage started with jordan rohan. Youve got to give him the credit. Saying listen, this is the one, that stock finished up monday and the hideous action. People come out of the fox hole and reiterate. This yesterday was about the fact that the numbers are too low. One of the things i think people are starting to distinguish is theres a company with earnings. And the ones with earnings started going up very hard. The ones without earnings, drifting up. Your reaction to what the fed said. Remember there was that moment where some fed official said that short rates are going to go higher. Some fed official said rates are going to go lower, we heard that side of the story yesterday. It must be very confusing to people. Looks like a rookie mistake maybe by the fed chief. But whatever you thought was going to hurt the bull from short rates going up, not going to, game won. So were back . Is that it . I dont want to say were back, because tomorrow we get wells fargo and jp morgan, and judging from what jamie dimon said, it doesnt sound like youve got the right atmosphere yet. You dont have the right Interest Rate curve. So i think when people say game on and then suddenly youre hit with some quarters. So you remain cautious in advance of the Bank Earnings tomorrow . Yes. Joe cassidy came on squawk this morning. He said the one thing they have going for them is everybodys cautious. That is absolutely true. The valuations arent that good. But if you go over that letter, the expenses have gone up dramatically because of the government, but were still not making as much on deposits and loans because were just not loaning like we could. To me the group is under valued. But the earnings power of the group is called directly into question by none other than the best banker there is so to speak. People should read dimons letter talking about the most difficult, nerve racking experience ive ever dealt with professionally, talking about last years travails at gpm. Bill miller was on squawk today. Talked about how he likes citigroup. Talked about how he likes sentiment toward the market right now that investors are not getting over their skis. Take a listen to bill miller. We may be in the best bull market that were likely to see in our lifetime coming off that 660 level. If we can maintain very low inflation. If Interest Rates are low. If growth can continue globally at a slow pace, valuations are likely to get a lot higher. In addition to citi, likes ibm. Says revenue wont continue to drop there. What do you think . Ibm is going to be up. Revenue city is a little problematic. Great quote here from jamie dimon. It seems that just about everyone has become a risk expert and sees risk behind every rock. They dont want to miss it like they did in 2008. They want to be able to say i told you so. I think that defines the average investor, the average investor wants to look really smart. Wants to say get out now because it looks really bad. Average investor wants to say im willing to pass, because when it does peak, which it hasnt now for how many s p points, when it does peak theyll look smart. I think that was the most important quote. A lot of people pulling a lot of different quotes from jamie dimons letter. The one that was the oddest, the arc of the moral universe is long but it bends toward justice. A Martin Luther king quote. Yes. Also said paypal is a shadow bank. And Martin Luther king would call for bonuses. The proxy fight between ebay and carl icahn is now over. As part of their agreement, icahn is withdrawing both his proposal and withdrawing two of his nominees to the companys board. Ebay has agreed to icahns suggestion to appoint david dormund to the board. We had a chance to talk more about paypal, more about ebay, more about the opportunity of the company. I think carl now sees the potential of our company and is now becoming i think a longterm shareholder. So i think this is a real winwin for both us and for ebay shareholders. Great line of questioning from sorkin, who said this is a guy who called you clueless. And now were all singing kumbaya. Did carl get beat . I think its a loselose for shareholders. Thats a misinterpretation of what john said. I think that carl was right, not about the corporate guidance. You were behind his i worry that paypal is losing its edge. Jamie dimon cites paypal, but one of the things he cites is the risk in Silicon Valley. I think paypal is at risk in Silicon Valley because of some other opportunities. Some other plans by its competitors. So i thought that this would have been a good thing. John is such a great spokesman. I know dormund, a former neighbor of mine. And then this is the end and paypal is not going to be broken out. I think thats really a shame. It needs to be spun off if because its going to get its butt kicked. David, your thoughts. After apple, now this. Whether carls aggressive stance is paying off. Listen, ebay took the fight to him right from the beginning, as you guys know. They outed him in an earnings report. John donahoe joined them onset and immediately started battling. As we reported many times, this took a strange turn with carls focus not on the merits of a spinout of paypal, but on his focus instead on the skype transaction, on what he claimed were wrong decisions made by the board of directors, in particular mr. Andreson. And the fight that took place between he and carl icahn. A very interesting point for all of us, something i think well continue to focus on, whether or not there are conflicts of interest. But then his two nominees were not particularly impressive, and it just seemed to never get the momentum behind a key thing, which was hey, i want you to separate paypal. Which, by the way, icahn still says he wants them to do. Hes just willing to now sit back and wait. Would you expect carl to stick around as a longterm shareholder the way donahoe suggested today, david, or does he slowly exit out . You know, thats always a hard thing to know. Icahn does stay in some of these stocks for long periods of time, so they would say hes not interested in the longterm health of the country. He can rebut that effectively with a number of different examples. So well see. That being said, it wouldnt be a shock were he to actually lower that stake at some point as he moves along. I think hell converse with the board of directors, as hes allowed to, but continue to probably try and push this case for paypal. But the bottomle is over. Ebay, of course, can claim a bit of victory here. Certainly the management distraction from it is some reason why they were at least willing to consider giving him this independent director in dormund. Because given where things were, ebay was going to win. It wasnt like icahn was going to win. Didnt even have a definitive proxy from him. He didnt have a great deal of momentum from him at this point. Whats interesting to me is the stocks down pretty appreciably earlier. Do you think this is because there are a lot of people who genuinely did not believe in icahns view, and are just thrilled that this thing is staying together . No, i mean, i think and you said it many times and i was pulling a lot of shareholders over this last month. There are a lot of people who genuinely believed paypal would be better off outside of ebay, and it would be a value creating move to a certain extent, although ebay itself in terms of what its growth rate would look like without paypal is a key question. And so i would assume that there was some hope, perhaps, that it would lead down that road. Eventually. Although i dont believe theyll be able to prevail that being icahn at the annual meeting. Yeah, this is kind of amazing, david. Ive got to tell you. If you go back in time to where this stock was when icahn announced the stake, it was looking 48, 49 because they had missed the quarter. Now it is up even though the markets not so good, this stock is up 10 . To me, its a mystery. Thats a great point, jim. We all watched that rally. Of course, carl has benefited from that as well. And now we return to theyll report earnings in the not too distant future at ebay and well see how the marketplace business is going, particularly, as you say after that last quarter where there were some question marks for sure. David, i dont know what you mean. Youre clearly dressed from the picture and youre up, so i dont know why youre not here. But better that you phone in on the story line this. Good to talk to you. See you later. Karl, thanks. They always manage to get them right when theres news. David faber joining us on the phone. Yeah, its true. Got one more deal. Adp spinning off its Dealer Services business. A taxfree spinoff. 100 to adp shareholders. Adp is known as one of those names, jim, with the best Credit Rating you can possibly get. I wonder if this changes that. This is just great news. People want pure place. I want both of these divisions. The Dealer Services business has always been terrific. I remember when they used to be in the quotron business. By the way, dealer, dealer service. Anything related to auto service finance. Allied becomes public today. All these businesses i think are good businesses. Automatic data is going to go much higher. Allied, the auto lender is going public today. Ipo price is at 25. That was the low end of the range. Raising 2. 4 billion. This is going to be the biggest ipo in the u. S. So far this year. All the shares coming from treasury. Its going to trade under the Ticker Symbol ally. Were going to bring you the companys first trade, live interview with the ceo Michael Carpenter later on this morning. You said yesterday the window was closing. I wondered whether that was a function of the companys getting weaker, trying to get in. Or investors getting fatigued. And what this does to that narrative. I think theres a lot of fatigue. I think theres a sense that if we have to have one more cloudbased company, one more Development Stage biotech, its just going to teeter. Just looking at the aftermarket, that every single buy that you made at the aftermarket was bad that first day. And thats a really terrible sign. I think the fact that this is low end of the range again is not a good sign. Even though i like these companies. I thought la quinta is a really good company. Its just that thats the fatigue. Ive got to keep selling things in order to take this stuff in. Give us a break. The fact is if they did give us a break, the bankers, then the resumption of this move has much more to it. Youre going to stick around into the 10 00 today, right . You kidding . We do have a power packed lineup. Christine la guard. Michael carpenter, a rare interview with the head of fizer. Ceo ian reid. Walter rob. Microsofts bing director. And the chairman of the cubs, tom rickets. What a day. Take one more look at futures here as we see some action off the lows off those claims came in pretty good. More squawk on the street from the nyc in a minute. Take a closer look at your fidelity green line and youll see just how much it has to offer, especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. Walmart making a bigger bet on organic foods. The retailing giant striking a deal to sell wild oats organic products at lower prices. The move aimed at reviving walmarts grocery stores. Well hear from walter rob a little bit later on in the show. Theyre talking about this wild oats products at a 25 discount, not necessarily on things like milk and cheese and eggs, but when walmart decides to move in on a market like this, theyll do some damage to competitors. Whole foods has been down, down, down. Couldnt believe why it was going down. It turns out because people knew about these articles coming. Weve got to ask walter robb walter is a total gentleman. He is not going to say that walmart will be a layover. But walmart doesnt know what its doing in this space. I know they went to hain earlier and said listen, just give us whatever you have. In the end, people will go to whole foods. Maybe they go to sprouts, which has a small form factor. The fairway has been falling by the wayside. Ive got to tell you, this fresh market not doing that well. My money is on whole foods, 300someodd stores. Going to 1,200 stores. They are such better operators. This is why the stock has been weak. Yes, its possible it was worthy of a decline, but now that the news is out, im a buyer, not a seller. I did commit yesterday, didnt know why, but now i know the stock is down because of walmart. You are not going to go as it is, costco, which has terrific numbers today. They have a hard time with natural and organic. Youve got to be in the natural and organic business to understand the ethos, to understand what its about. Is that a function of sourcing . Because its more fragmented from buying some of the big distributors . Why wouldnt walmart have competency in this area . Because the people the walmart profile is not necessarily as interested in this kind of thing. Mart profil necessarily as interested in this kind of thing. I also think, by the way, that walmart look, ive always respected walmart, but walmart has jumped into a lot of what i regard as fashionable things. Its not really worked out. I do think let me be very, very clear about this. That the competition is rife, but thats where you go with the best operator and the best operator does prevail. Whole foods prices are not nearly as bad. The new whole foods store models are terrific. And those who give up on whole foods now should recognize that theres a lot of people who saw this stuff coming and thats why the stocks at 51. Go over the upgrade the other day, it was pretty powerful. Family dollar with results out this morning. Theyre going to close 370 stores. Theyre going to slow their new store development. Thats a contrast to say rite aid. Family dollar, howard levine, theyve really become quite a poor operator. They didnt leave out anything about why they missed. They had competition. They had macro. They had weather. It was almost as if they have simply lost their way entirely. I think dollar tree, Dollar General doing better. Family dollar saying that the businesses overstored. The fact that the stock isnt down just tells me that there are a lot of people who feel like, you know what, this is the longawaited restructuring. I dont think it is. They can close a lot a stores. But in the end, its just not a great operator. Youve been saying the rite aid weakness. My rite aid is so darn nice. I actually love it. But rite aids move their prescription business is really strong. They really embraced the model. They had cheap merchandising officer. They will not come on my show. We call them all the time. You know what they say is, no typically say, thats a difficult time. Meanwhile, im their biggest supporter. Ive loved them. Will you come no hi, this is jim no i liked them. What happens if i didnt like them . They do see same store sells up. People writing these guys off. Not me. No maybe that will change now. Its like a High Frequency trading discussion with them. No when we come back, well get cramers mad dash. Countdown to the opening bell. Futures still in the red. Well walk you through that greek bond offer. Note offering too in just a minute. Seven minutes to the bell. Lets get cramers mad dash ahead of the market open. A lot of retail action today. Two places i love to shop at. First, bed, bath beyond. This was just a bad miss last night. 1. 7 comp numbers. Looking for twice that. And the company, a lot of people feel like this was the beginning of another trend back. You have a lot of people saying showrooming. I think the problem with bed, bath beyond is that they literally theyre searching for like meaning. Plus, you know, if you get the right coupon, it is killer. If you can get that 20 coupon on all goods, i thought it was only for one good. Knocked off 5 this weekend. Not enough to do the job. I just think this company its just not executing as well as i expected. Used to be great growth vehicle. Pow about pier 1 . Pier 1 had been executing fantastically. They couldnt shoot straight. One of my bankable 21. Hes missed for two straight quarters. Very disappointed in him because hes such a good merchant. Now theyre rolling out their o online. I think its good. This stock might be able to go back to the 20s. Some people say listen, jim, he lowered guidance. No, the thing is if we can get back to some single comp numbers and get a good online product, alex smith is a good operator, the stores are fun to go to. Story of two retailers, thats good stuff. When we come back, allied financial make its debut. Were going to talk with the ceo. The opening bell just five minutes away. Female announcer get on board for better sleep. Its sleep trains interest free for 3 event. Get three years interestfree financing on beautyrest black, stearns foster, serta icomfort; even tempurpedic. 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