100point rally on the dow. Fedex and General Mills moving in the premarket, but in opposite directions after the shipper beat and the food company missed. And reviews are out for the iphone 6 and 6 plus. Were going to show you the critique and the actual phones themselves live. First up, activist investor nelson peltz says dupont needs to break itself into two companies. He sent a letter to the dow components board saying the current Corporate Structure is destroying shareholder value. Dupont says it welcomes open communication with shareholders. Speaking of which, guys, peltz says stock will double in about three years if they take on his plan. You want to start . Sure. Ive been doing reporting on this, as you might imagine, this morning, having spoken to people close to both sides. Trying to get a sense here as to whats going on a battle now into a potential proxy fight. The entire board is up. Not clear how many board seats theyll go after. 13 members of that board. In fact, interestingly, it was only after when dupont pulled guidance down earlier this summer that trian tried one last time, from what i understand, to ask for one board seat. They were rejected. Thats sort of setting the stage for this battle, which many may have known was coming for some time. Trian is very focused on a simple premise when you boil it down, which is simply that duponts conglomerate structure is destroying value. Theyll go through any number of things in a letter, white paper, and their press release. One of the key things they come back to is the sale of the codings business back in 2012 to carlisle. Why . Because its now coming public again. Theyre using publicly filed information by carlisle for taking this business public again to point at the number for 2011. A number that carlisle in the s1 for this codings business has at 568 million but was at 339 million when originally reported to dupont. This is what trian will claim as a reflection of excessive costs at this company, both allocated and unallocated. When you take those costs out, youre left with a great deal more value. As always, theres a response to things like this. And by the way, it gets somewhat complicated to go into codings in particular and talk about you have to look at the s1 versus the dupont numbers, allocated, unallocated. And contracts that make have changed. Strapp stranded costs that were done away with. Thats what this is going to come down to. This basic idea that youre running a conglomerate, you have costs well above what they should be. Make it simpler, separate certain businesses out t and dont give us this basic line that youve created more value from the s p because your peer group has created a lot more value over the same time period. And thats very tough. They came in, in 2009 in january. The stock has outperformed. Im going to play devils advocate. Agriculture has been tough of late, so therefore you can guide things down. That was the thinking coming out of the winter. The question was, what were they warning about, even after the weather turned warm. The answer to that, i think, is peltz has cracked in talking about the unallocated capital. Its showmanship, but the will m willment ing wilmington hotel. If you break it into growth, agriculture, nutrition. Health and nutrition has not done as well as they thought. Go back to that, to what you talked about carlisle. Why didnt they spin that off . Theres big banker fees, right, when you do it the way they did it. Theyre spinning off the commodity. I buy it to a certain extent. As with all of these things, these are fairly complex transactions. Im not willing to say its all apples to apples, but clearly theyre going to be out there speaking to shareholders. Which, by the way, they have yet to do at trian. This is an example of something weve seen for a number of years, which is an enormous cap company thats being attacked. Nonetheless, what theyll claim is at some point theyre speaking for shareholders. Theyre going to be talking to those very shareholders in the weeks and months to come as we head towards potential proxy fight here. Theyre going to be talking about this basic theme. Youre going to be better if you operate these businesses and separate out businesses and get rid of what they claim is a bloated cost structure. What are they talking abouting . Holding Company Costs of 2 billion to 4 billion. Big window. Which is it, guys . At the same time, the sustenance of it, its too big. Now, sandy cutler, the lead director, i know had meetings with them. They felt sandy cutler didnt represent the company as well. Coleman, the ceo, is digging in her heels. Did they ask for too much versus what theyve done with heinz, with wendys, with kraft . I dont think so. Youre asking for one seat. Its not a lot. But a board may very well be committed to their own vision of what the company is doing and capable of doing. Theyll tell you i mean, weve cut a lot of costs. We continue to. Shes going to take another 1 billion out of costs. This is going to come out wrong, but do you think its a coincidence hes gone after coleman, rosenfelt, and nuye . I havent thought of that. Its a touched on point. I think he goes after people who have underperformed. There was definitely underperformance in kraft. That made a lot of sense. Ppg, i know chuck bunch knows nelson very well from the heinz. Chuck bunch is a brilliant executive whos led ppg down the path that i think nelson peltz would like very much for dupont to do. The thing that really stuck in my head when i look at dupont, there was a november Analyst Meeting when they were talking about pioneer hybrid, okay. When was this, last november . I know i had ms. Coleman on mad money to talk about science. He wasnt allowed to go to the meeting. Now, when you speak to dow chemical, whos dealing with dan lobe, whos a caged tiger, members will tell you over and over, hes a shareholder. Got to spend a lot of time with him, welcome him. I think peltz is saying, when you welcome me, i bring out value. When you dont welcome me, i dont. Interesting. By the way, its interesting you mention dow, which has been a poorer performer than dupont. And which i would argue is conceivably going to see a proxy fight in its future. Do you really think so . Even after all the things ive had some conversations with some large shareholders. I i think its a distinct possibility dow will be going down the same road. By the way, dow putting up a higher growth fact sheet this morning. Growth of more than 8 . Operating margin improvement up 65 from 08 to 2013. Again, as you pointed out, created a lot more value than the s p 500. 220 versus 144 . Theyre going to come back to this, jim, many times in the fight to come. This stock is where it was when Andrew Sorkin interviewed him. This is where it jumped to when nelson peltz talked about paint. In the report, theyre talking about how this thing has done quite poorly once dupont brought it in. Yet, that was the health and wellness. That was supposed to be the noncyclical portion. I think this is a Great American company thats going to be under siege for a long time given the fact that trian is laying out a case that says they shrink to grow, which i know we can make fun of, but thats what this is about. Then you would be able to break this company up. How do you get from 60 to 120 . A series of acquirings of the dupont pieces. Basically, dupont should disappear. All right. Lets quickly move on to fedex. Better than expected quarterly results. Higher volume in express and ground. Also, General Mills q1 misses on the top and bottom line, even as they try to cut costs. Fdx is going to institute a price increase in january. U. S. Volume up five. Pretty good number, even though bought back a lot of stock in q1. They nailed it, okay. Fedex operating margin. Remember when we talked about the need to restructure and they werent getting enough out of the company . Fred smith, listen. This is what you want to hear if youre nelson peltz at trian. Operating margins go from 7. 2 to 8. 5 . Thats gigantic. How about the numbers for fedex the express segment . Beautiful. 4. 1 to 5. 4 . The priority business is on fire. When you remember when they reported the last time, people were very concerned the priority, which is like overnight, immediate, that showed a slowing in the United States. 13 increase in priority. This was a beautiful quarter. It is what executives want to see. This is a major restructuring from when you and i laughed at each other. They announced it the second time. Wait a second, how many times do you have to preannounce . They were setting the stage for a remarkable comeback. Beautiful quarter. And their guidance backing the full year absent any impact from fuel, which has we know has gone from 100plus back to the low 90s. How interesting they raise rates after close. People want to read a release that drives the stock up. The stock has been going up. Im sure theres someone saying, listen, all this was anticipated. I have to tell you, ground business up 8 , i was not anticipating that. I was not anticipating the 4. 9 rate increase. I was not at all anticipating the remarkable margins and the growth here. Remarkable. Remarkable. David, do you know how hard it is to move your margins from 7. 2 to 8. 5 . Thats why i say dupont you incident get ppg, how they raise the margins. Remember, that is the solution that trian was looking for. A ppg, get rid of the cyclical but make money for the shareholders and explode the margins. Right. Although, fedex is not doing as much r and d as dupont. Its not about science. Its about logistics. Thats the other guy. Planes are expensive. Planes are a fortune. But when you come out and say youre going to get more money out of sales and then you do it, hallelujah. Well done. More than a week after its unveiling, reviews of the new apple phone are in. Wait until you hear what tech watchers are saying. Take one more look at the premarket as we await the fed statement in just a few hours. More squawk on the street from post nine in a moment. You probably know xerox as the company thats all about printing. But did you know we also support hospitals using Electronic Health records for more than 30 million patients . Or that our Software Helps over 20 million smartphone users remotely configure email every month . Or how about processing nearly 5 billion in electronic toll payments a year . In fact, todays xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. With xerox, youre ready for real business. Chocolate, soybeans, thisand apricots. Made with what kind of chef comes up with this . A chef working with ibm watson, on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today theres a new way to work. And its made with ibm. Welcome back. Im ayman javers in washington where attorney general eric holder is getting set to call for an increased whistleblower payouts for people who reveal financial crimes to the department of justice. Nbcs Pete Williams says eric holder is going to call for an increase to those whistleblower payments, which are capped at 1. 6 million. Holder will make the argument thats simply not enough money to get a wall street executive to give up his or her career in exchange for that amount of money. They might need to raise that cap significantly. Holder is also going to say that he wants the fbi to be allowed to hire more agents. Since september 11th, its focused entirely on counterterrorism, or more on counterterrorism. Hes also going to say that department is conducting active investigations right now that are focused on potential illegal conduct by individuals at major financial institutions. Carl . Yet another piece of news well wait for this afternoon. Thanks a lot. Its been more than a week since apple unveiled the iphone 6 and 6 plus. Presales topped 4 million in the first 24 hours. Now the reviews are coming in. Heres what Walt Mossberg said. The iphone 6 is a great upgrade for current iphone owners or anyone really. Its my recommendation for the best smartphone you can buy. Tim stevens at cnet, the iphone 6 plus is too big for everyone to love it, but its apples best phone this year. Usa today saying go big, youre not going to regret it. Hard to find a bad review today in all honesty. I went through the usa today. Thats often who ive been relying on. I feel very strongly. You got to get it. People obviously got to get it. I think this whole focus on china yesterday was a dodge. It was a dodge. It was the type of thing you do if you want the stock lower. Once again, i reiterate that tim cook has conquered china. So you put out that theyre in 120 countries. You want the stock to go down, you spread the china news. You want the stock to go up, go buy an iphone. This is obvious. Talk about more advertisement. I have to tell you, theyre critical of the watch. They make components for wearables. Theyre saying the wearable numbers theyre hearing means that you have to have one on your right and left arms. Two watches. You got to have two . The numbers theyre hearing, meaning the expectations . Yeah, that everybody that wearables are really a jump ball. We dont know if that category is going to take off. But the iphone, its taken off. I just question wearable because that was the second part of the presentation. Remember, the stock went down during the second part. There was also word they take the considerable out for the fed, which we hadnt even got to. I do believe the apple negativity was about people who needed apple down. All right. When we come back, well get cramers mad dash. Well count down to the opening bell. Well talk about the fed and the action yesterday. Well get to the analyst numbers and notes we have not gotten to. Take a look at the futures. We had a high on the dow yesterday. We had one on september 4th. Weve not had a closing high since july 16th. Transport people want to see confirmation. Youre absolutely right. More squawk on the street from the nyc in a minute. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com all right. We have about 8 1 2 minutes before the opening bell. Lets get to more earnings and disappointments. Start off with General Mills. This is a shocker, even though we knew things were weak. By the way, i want to say up front, because of the yield, this stock will not get killed as badly as it should. But i regard this as bad. U. S. Retail sales down 4. 5 . Yet, theyre still doing all the things people get angry about when saying things about corporate america. Ken is a great corporate executive. Nobodys eating cereal anymore. Dont worry. Were okay. Natural and organic. How often are they going to keep telling us everybody should keep eating cereal when theyre not . They shouldnt have just bought annies, which is a Little Company thats not going to move the needle as much. This is the twilight of these kinds of consumer processed goods companies. Raw costs arent that good either. I will point out again, the last time they told you things werent so good, last time they said some negative things, stock got down to here and bounced. Will it bounce again . If treasuries continue to do their course today, which im kind of not expecting. Theyre going to say, you know what, General Mills is a bond. And i like the bond. The yield will hold that stock up, even though it appears the underlying business fundamentals are faltering. People like yield. They like dividend. Thats why i think sony may be going down. Lets keep an you on that. Of course, we talked about dan lobe earlier with dow chemical. I was talking about other shareholders and wondering outloud wether or not were going to see a proxy fight. But heres another one. Oh, man, hes in there. He wanted them to spin off. Thats not the problem, as we know. The problem is a lot deeper than expected losses. It would appear in wireless phones. Yes, they had to write off some things. David, is this a question of management itself . Is management just not as strong as we think . Maybe not. Some people are wondering that as well. Well even laughing perhaps. This is a great company. By the way, if we put a chart against apple, this is the company that apple destroyed. I remember when sony destroyed Consumer Products in this country. Apple destroyed these guys. Samsung is still reeling from apple. I continue to believe apple should be owned. Sony i have no feel for other than fact they seem to be a bunch of a lot of people feel like i look like bozo the clown. Now, thats not true because i keep my hair short. Thats not true in any way shape or form. Interesting story today in the new york times. Cds are still huge in japan. Reflective of nothing per se except sony of course. Cds in japan, i still want what is with and downloads are down in that country. Its hard not to innovate when your domestic population is thinking its 1997. You tell me its a lost millennium. Im not sure what to think of that, but i thought it was interesting. By the way, alibaba. I had to say it before the bell. Thats a rule. We just made it. We got a lot more. Of course, well talk about ali baa pa. Well talk about sony, fedex, dupont. How about letter x . On letter x. Back after this. So what were looking for is a way to plus our Accounting Firms mobile plan. And minus our expenses. Perfect timing. Were offering our bestever pricing on mobile plans for business. Run