Busy week for data. Dreamworks up in premarket. Considering a buyout of the movie studio. Insight on whats going on. Reports apple could be facing fines of more than 1 billion euros over deal to allegedly minimize its tax bill in europe. Facebooks new ad system. Gopros new cameras as well. Futures lower, negative tone set overnight as the unrest in hong kong sent the hang seng down 1. 9 . Stocks off a volatile week, the dow posted triple digit moves every day. The worst week for the market since the week ending august 1st. Andrew and jim talking whether were at a stage where we know if the dip gets bought or not. Right, weve got this weird binary approach to the market. For instance, say youre in a vacuum, youve got Consumer Spending this morning, plus. 5, i thought terrific number. Consumer income, plus three, terrific number. In a vacuum, we should be going higher. What are we doing going higher friday . Other than nike, what went right . Were in the grips of were going to be making very big moves on nothing. I mean i can argue with aclon, an Important Oil deal, with tipco saying tech is undervalued, well talk about dreamworks, but the machines are in control here. Dont think for a minute that people arent thinking, fed funds rate about to spike, regardless of what they said, Dollar Dollar did on a trajectory, worldwide, it would make it youre exporter youve got to be shaking. 11 straight weeks. 11 straight weeks. What a trade that is. It is. And perhaps has a lot further to go depending whom you speak to. I think so. Some believe the yen is going to continue to lose a great deal of value from here. Yeah. Theres always we hear Money Managers who hate the United States because fed fund rates going to 4, this mythical 4, love that from delivering alpha, and they want to buy japan. They want to buy japan, though the companies that deal with japan are doing terribly. They want to buy europe off weak europe. I was working on one European Company this weekend, one that i wanted to be involved with, just one. Come on. Got to be an exporter in germany that benefit from a week euro. Did russia get solved over the weekend . A deal to supply ukraine with gas through the winter. I thought very positive. At the same time, theres weakness in germany, makes it so i question the numbers. Look, i dont question numbers of u. S. Domestic companies and russell 2000 companies. But is there a worst index right now than the russell 2000 . The machines have run wild there, too. Theyre knocking out bids in the russell 2000 every day. The actual Companies May be doing well but the indices are in charge. These are machine gun selling and buying. Right. Youve also the rally we had, certainly over the last few months, not broad. No. We pointed that out. We lost that. Whether the russell or s p as well. We lost the big industrials a long time ago. We lost the Consumer Products companies with exception of a mcdonald, which poorly performed. What does it all point to, then . Rough road from here for the rest of the year . We need leadership. We dont need any more equities, we dont want any more supply. We had 128 billion in supply, it was thrown into the market, into the mutual funds. We have to cool it here. Thats my approach, just cool. Dont commit new money. Despite, you mentioned fears about the fed funds rate, evans with liesman saying hed rather overshoot on inflation to get jobs. People are wondering why printing 200,000 jobs a month anding steady and slow as it is . Savings rates back up to 5. 5. We cant seem to get Interest Rates higher. Someone wants them higher. Were the safest halven in the world. Look around, its interesting, so right to focus on the hong kong demonstrations because, i havent had a piece of good news out of china in ages. Give me good news out of china. Hong kong demonstrations. Oh, you mean oh, oh, are you in civics class . Longterm positive story. A problem with the party . Thinking hundreds of years over there. Well, thats true. We dont. It actually is a serious story. Thousands of protesters flooding the streets in hong kong central. Peaceful. Business district. The worst unrest since china regained control of the former british colony in 97. Susan li live in hong kong. Good morning. Yeah, good morning to you. Thats right. We took a crude head count, looks like more people on the streets tonight than there were yesterday. So looks like the movement has been gal ven nized by the violent early into the wee monday morning hours, we saw something we havent seen in hong kong since the handover in 1987, back to china. So we saw the protesters with baton charges, bloody faces, tear gas fired, pepper spray being sprayed. One point with Police Holding up signs saying disburse or well fire. Concern of rubber bullets shot into the crowd. Telling them to back down, retreat and go home. Not something they did. Hong kong was shut down today. The fifth Largest International market, and a dozen banks were closing branches and telling employees to say home. The Monetary Authority had to step in saying well add liquidity if and when necessary. People taking risk off of the table. Steep selloff of 2 . No one wants to hold risk going into the long weekend because it is a holiday on october 1st and october 2nd. Now the concern is about whether or not this the protests spreads to other cities and other special administrative regions. First, national day, october 1st, mccau is now expected to hold demonstrations for their own democracy. And how does that impact casino shares and tourism given we have travel alerts issued by australia, sing boo georgia p s. A mass influx of mainland tourists but Retail Stocks a big hit in theton markets because maybe the cash tills wont be ringing as they have been in the past pause of images people have been singing on television sets. Susan li in hong kong. Dates back to ruling out of beijing that would essentially let them weed out candidates in hong kong. Thats what students are upset about in the first place. I think the rules coming out of china amazing. We have crackdown on gambling. Crackdown on junkets. Crackdown on expensive liquor, showy signs of wealth. Next the crackdown on watches that are hundreds of thousands that people buy. The partys returning to its roots we dont seem to realize that. Right. And so the impact will be what . Youre not going to sell as much stuff at high end . Theyre minting millionaires every day over there very quickly. Alibaba, of course, creating billionaires. Turning internal again. I think that alibabas looking, very good report out this morning gave you numbers for alibaba, from susquehanna, quite incredible. But largely chinese spending. And i think that the focus is internal, not external. One good thing coming out of china is they did solve some of the hatred with japan. Theres cooling in those tensions. But the strong dollar is a margin worldwide. Theres lack of liquidity worldwide. Emerging markets are going down. Ive seen brazil, you know, brazil falling off a cliff this morning. Mexico, pesos in trouble. A lot of emerging markets Fund Managers have not come on lately and told us how great they are. Its great you soccer retail people give us your money, yeah, well be down 40 , up 60 . Noncorrelated but always correlated. Always correlated. In the end, alibaba, right now people are correct in saying that that was the shortterm peak. Such an easy call. It seems so trite. It does seem trite. It cant be that simple. Its like, that was the top. Of course, people say, no bells rung at the top. They say, no. They rang the bell at the top. I dont know, maybe they had a hearing problem. They rang the bell. Shares of dreamworks surging. Published report say softbank, the company run by japans richest man, is in talks to acquire the studio known for of course movies such as shrek and madagascar, softbank offered 32 a share for dreamworks, almost ten bucks above the closing price. I want to put cold water on this one. Having done reporting this morning. People, lets call it, close to the situation indicated to me theres not that much going on here. Yeah, i mean, dreamworks has been for sale what feels like forever. Stocks up huge. The new guy at softbank, remember came over from google, who has been tasked with looking for content. Smart as all get out. And he just began, although starting his job before he really started his job, hes now in there. So while may be a lot of chatter, people ive spoken with indicate very early, may very well go nowhere and also point out, listen, may be an interest in working together, dont forget softbank owns two gaming companies. They need content. Theres also opportunities to cobrand with movies, create games off of movies. So, just, at least based on conversations i had with people who would know, id be careful that theres a lot, that this things going to get announced tomorrow. Doesnt feel like thats happening at all. Is there a sense after tmobile, that hes flailing for something, anything american right now . Im sure he would dispute the idea of flailing. What i think they would say, they are interested in content, somehow marrying that contents perhaps the way theyve done to a certain extent with wireless offerings in japan, what they took with lagging properties from vodafone, and they have a war chest that is unrivaled given the performance of that stock right behind us, alibaba. But 32 . We havent gotten to talk about starboard, about yahoo yeah. I mean, any hope there that i dont know. What did you think of that . I found that in a letter i think a lot of him in terms of hi thinking, jeff smith at starboard, disciplined in that way, i found that letter, public letter, he owned less of what he owned. Like tax considerations. Coming up with a name so trafficked in and also yahoo i dont know. To me it feels like a marketing pitch, frankly, for starboard. Yelp, im closer to youre not writing public letters. Listen, you shouldnt be running this company. But he didnt want to say that. Yahoo had a response out this morning, i think you probably saw it. I think we should send letters listen to all of the shareholders. Send letters, exxon, get out of russia, verizon, close the longterm, pfizer, spin off Everything Else. Write letters. Fire off letters. Why not . I own six shares of this, ten shares of that. Mick done mcdonalds get out the breakfast business. Buy one share, evelyn davis, lets just get it nike, i want to see no, nike was good. Dont have do anything. Allergan shareholders sending letters and allergan responded this morning. Another story. Letters per share in the allergan deal. Letters per share in darden. He owns a lot of the company, going for a proxy fight. Here, yahoo really . Before break, pimco. Okay. Glad we got that in the ablock. Have we mentioned pimco . When we come back, headache for apple from overseas. Well tell you all about that. Take another look at premarket. Looks bumpy here at the open with futures down 145 on the dow. More squawk on the street from post nine in a minute. When the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with paper money to testdrive the market. All on thinkorswim from td ameritrade. Take a look at futures. Moderate weakness at the open income and spending data. Big jobs number on the way friday. In the meantime, eu publish decisions tomorrow on tax probes into anal and fiat. Ft reports European Commission set to accuse the iphone maker of benefiting from illicit state aid in ireland. The paper suggests the probe could leave apple facing billions of euros in fines doing business there challenging for uber and apple and other companies. Vie trouble with it. Look, apple, read the story of china, too many iphones. Europe, again, seeing the same thing out of china and europe. Finding ways really to knock us. The google investigation thats endless. In china, waiting for the amat deal to close. They examined a lot of different companies. Nationalisms on the rise against the United States. Yeah, though in this case, lets not for get, we have been focused on inversions and potential tax revenues that will not become to the u. S. Companies such as apple, which are not a focus of any changes in treasuries, treatment or anything else, move intellectual property overseas and generate enormous profits. Around the rest of the world. Why cant you shop venues. Intellectual property developed in the United States as a result of tax dollars that we all spend to make great universities and other things that contribute to the ability to develop that kind of creative thinking. Tax code says specifically, everybody has a right to try to figure out how to have tax avoidance. They do. Just not tax evasion. Right. But that is how you end up with these kinds of issues. Laws very clear here. Supposed to be avoid them all you want. The law is clear, which is why we need comprehensive tax reform on a corporate level, bring rates down, close loopholes. If the government could bring a case, they would. Guilty until proven innocent u. S. Tax court. Only court in the country where youre guilty a4 head of time but got to have a law to prosecute we dont. Update version of the Atlas Advertising platform, allow advertisers to track and measure impact of campaigns on facebook and devices as they try to convince users their privacy is not at risk. But this will be a big step in mobile advertising. Yeah. I mean, going over the compares facebook versus alibaba. Facebook surfaces cheaper on 2016 basis. Look, they both have fabulous margins. Gross margins for facebook amazing. Stuff like this, nothing costs them any money. Everything they do, youre provided. Can you imagine if abc, cbs, nbc, you sent them programs, like, im going right im sending them black lisp how much are they going to pay me . Im sending it to them. My personal program. I want you to run it. Thats why i like youtube. Hey, fantastic thing. Let me just give youtube everything i have for nothing. A great business. Though i would love to understand the numbers a bit. 2016, facebooks multiple below that of alibaba right now based on estimates . A lot of different estimates all over the place from alibaba. Its really difficult to try guys who do the 2016 numbers disparity in wall street, i mean typically people understand theyre clustered for most companies. Guys wild high,explosive. I dont know, i look, if you think chinas on fire domestically, then theyre taking such huge share, its incredible. You get gigantic numbers. But facebook, its margins, margins fantastic. You said alibaba too rich at 90. I assume that remains true . Yeah. I still would like it lower the market doesnt look great. They may give you a chance. All you need is one data point that says babas not as perfect as you think. Some guy who decides not to buy apple 6 plus on a right on alibaba, you wont get that guy because, because, his phone bent and communist party wishes he doesnt have a fullsized phone, thats. Theres the market. We get cut in half. October surprise. Someone is like youre making jokes about the decline. No, not making jokes. Trying to explain it. Exactly. Arent too far from october. Talk about seasonal patterns later on. Cramers mad dash as we count down to the opening bell. Final look at premarket. Squawk on the street continues in a moment. Take on the challenge of Trading Options and futures. With the easytouse suite of trading tools. At optionsxpress by charles schwab. And well give you a one hundred fifty dollar amazon. Com gift card when you open an account. If youre looking for a trade idea, start at the idea hub. Where options and futures opportunities are organized by volatility, earnings, market activity and income strategies. Then run your new idea through the trade and probability calculator to get a quick look at the possible upside and downside. 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Keeping an eye on the markets. That makes sense because fridays rally seemed thin. Thursday. Was convincing the downside but it was rosh hashanah. The International Marks are all bad. Only place to sell liquidity is us. What are we talking about. Aflon, the thing we used to talk about before overrun by futures and fed funds going to 4. A bid from encannon, natural gas, shifting quickly to oil. This is a perm onplay, 30,000 barrels per day. Why do we car so much . Theres existing pipe out of permian. They have to put more in because we found so much. Things happening, oil to market, how does it get there . If its by train, truck, we dont want that. If its by pipe, its good. This is a great acquisition. You believe its a great effort . I think its great because perm onis incredible. Producing 3 million more per day than four years ago. You dont hear about it, fossil fuel, washington doesnt like fossil fuel. This is we dont know what to do with it. From oil to technology. The other deal is lbo, technology lbo, biggest of the year. Maybe the biggest lb of of the year. Got to check that. Biggest technology. Lbos have not been around, leveraged buyouts, m a activity led by strategics. In this case, it does appear vista, the buyer, which is a private equity firm that focuses only on software outbid a number of strategics. Interest in an auction for this company, jim. They came up with the highest price, 4. 3 plus billion lbo. Herb greenberg for reality check saying this is one thats going to go. People interested in spotifier, does Business Intelligence that people feel is worth much more. They did buy. If they spun it off. Maybe what vista sees they can buy ittipco and get rid of