Apple saying shares are massively undervalued. Recent history repeating futures pointing lower after a big recovery from a dramatic selloff tuesday. Alcoa and pepsi beating the street. Leadership, gap shares down. Murphy announcing he will be retiring. Carl icahn released an open letter to apple ceo tim cook saying the Company Shares are massively undervalued and should be trading at 203 a share now. Icahn expressed support for cooks leadership, urged him to accelerate the share buybacks. He would not tender a share if apple institutes a new Share Repurchase program. Calls cook the ideal ceo. Says this is not a criticism. A long letter about how the market is getting this wrong. I think you are right to say its about how Institutional Investors are underinvested in apple. He also says if you want to get those investors, you cant just keep doing what youre doing. Youve got to really create a short squeeze from the tender offer. Sell 25 million tvs. Its not scathing, but it says, all right, tim, ive been around forever. You are a newcomer. Do it my way or the highway. Whats the highway . I dont know. Hes going to, what, launch a tender offer himself . At 800 billion . The letter reads as if carl icahn owns the supershares and cook works for him. This is yonker state shareholder democracy. He has three votes versus one. If i were tim cook, i would say, will you please give me a break . I wonder whether you feel a need to respond if youre apple. We should point out, obviously, carl icahn is the biggest, baddest activist out there like leroy brown. Like superfly bad. Often when he is acting in a proxy or hostile manner, potentially to a company, hes already talked to or been talked to by many institutions. The activists are doing the dirty work of many the long onlies who wont speak up. In this case he owns less than 1 , granted, huge number, but you do wonder hoe is speaking for. Does he have the support of those long only who represent a lot more of these shares and doesnt need to generate a response from apple, which already brought back more stock in history. Its almost as if other companies should learn about how to do a buyback. Tim cook does the best buyback ive seen. When the stock comes down, hes there. Listen, you know what . Your top five nfl quarter, but youre not good enough. You need to be peyton manning. Youre drew brees . No. Youre Philip Rivers . Forget about it. You are not a playoff quarter. Its like, are you kidding me . What does it make the other guys . We are going to hear from icahn this afternoon at noon. The fast money halftime report. And from brett icahn and David Schechter. He goes out of his way to cite brett icahn and schechter on their fund surpassed carls own. Perhaps planting the seeds for his son to grow more. Will he reveal the 25 million tvs that are going to be sold by apple . Will he reveal prototype . No. And the bruising debate over ebay. Take a listen to this. Remember the star trek episode where they have the good and evil captain kirk . Its one of those things. Carl is evil. Hes got the cash and goatee. Carl is the opposite. He lies, he makes stuff up. His inner 6yearold comes out. He slanders, taps his inner 6yearold, evil captain kirk. That was a nasty fight, if you recall. Very personal icahn was raising to a certain extent and andresson had a lot of bubbles. Venture capitalists sitting on the public boards, whether they were taking the interest of the company to heart. That was nasty. Hes never gotten that nasty with cook. A company that expanded its capital return back in april to 130. Bought back 74 billion of the 130 billion as of the last time they told us about it when they reported earnings in july. Wait till he goes after the other 499 companies in the s p 500. They have a manifesto coming their way. Honestly, i read this and i just say, look, hes doing hes getting lets use star trek, hes giving it all hes got, carl. There were guesses ahead of the letter that his proposal would be more strategic. Take itunes and beats, buy contents, generating contents, making a challenge to netflix. Does this seymour pedestrian . Prosaic. There is an element of this which just says, you are underperforming what you can do. My problem with that is, again, on a relative basis, youve got an ebay which was underperforming what it could do. Youve got apple rolling out the most impressive line of new products ive ever seen from a company. It is not good enough. He wants apple to go into one of the worst businesses in the world, tv business, which would lower their margins and make it so they would be numbers cut. How do you generate that short squeeze with a tender offer. Is a tender offer right here something that would create a short, de facto short squeeze in this stock . I doubt it. There are so many darn shares. One of our smart viewers points out reduce the number of shares do you affect the waitings of index funds . He wanted them to do this the first time around. They didnt do it. They obviously did borrow an enormous amount of money, the lowest rates of all time. Lower than where we are on the ten year right now. 50 billion bond deal. It was enormous. Then began this huge buyback program. We have a response from apple right now. We always appreciate hearing from our shareholders. Since 2013, weve been aggressively executing the largest Capital Return Program in corporate history. We will review the program annually and take into account the input from all our shareholders. There we go. No shutdown. We said that here. Its important carl space out when he comes on. I think he should be on mad money to talk more about the tvs. Tomorrow should come on here about the tender offer. Go total theater. Why just one showing . We could have three showings. Ill do my show in imax. Ill do a 360 about the tv. We should do a steel cage match. Then the hug a year later . Well produce that, too. Its about time there was some fear, you know . Youve come back energized, i can tell. I am hollow. I took that island by mahalo. I was in hawaii. Yes. This is from earlier this morning. Former chairman ben bernanke arriving at the aig bailout trial. Geithner earlier in the week and one of the great quotes of the week when they asked geithner about what he thought of hank greenberg. I had a high regard for him, but a complicated regard. Very diplomatic. Maybe someone will give bernanke if he shows his stuff. Where exactly is his fico . I dont know. Its embarrassing. On the markets, what a difference a day makes. Stocks post their best session of the year recouping their losses from tuesdays big selloff. Dow gaining 275. After the minutes from the fed meeting indicated no urgency when it comes to hiking Interest Rates. Some have this notion that the feds mandate is Global Growth. Thats what they have their eye on. I dont think that the fed has ever said they are going to do anything crazy. Its only the hedge funds calling for 7 fed funds rate. They are not playing ball. The fed refuses to take the stock market down. Other than the bottom in the biotech stocks was that one call by janet yellen. Theyve been going up ever since. I look at what the fed did. They could have issued a blank piece of paper and we were ready for a rally. They said we are cognizant. We have eyes. They did say the dollar. Do you have any doubt where those things are on where currencies are going . You did not have a trade war going on with russia, the conversation would be different. The numbers out of germany are horrendous. Merkel continues that hooverlike philosophy. Austerity. People are talking about whether or not that is changing. Whether their philosophy is bending a little bit. I think it has to. There is minus 5 use of oil in europe. Year over year decline of 5 use of oil. Thats not just because of windmills. The numbers are extraordinary. The ford futures make it look like we are going to 83. West texas. We are pumping 1. 1 Million Barrels more than the previous year. Libya has come on strong. Iran, sanctions gone or lessened. Iran has come on strong. World awash with oil. Saudi not cutting output. Youll see oil go down to 83. We exported 450,000 barrels per day. We are big refiner of oil. We are driving the price down ourselves. Everyone else is going along with it. We have a bear market as of yesterday. Its not done. That said, europe, the future curve. Brent says it stops here. West texas going to keep coming down. We dont have a place to put the stuff. Maybe in those 25 million tvs. When we come back, assessing the global economy. Sarah eisen with Christine Lagarde and World Bank President jim yong kim. Gap ceo and president taking down. Downgrades today on gps. Well fill you in. One more look at the premarket. That ten year got down to 2. 27. E checked bag. With my united mileageplus explorer card. I have saved 75 in checked bag fees. Priority boarding is really important to us. You can just get on the plane and relax. I love to travel, no foreign transaction fees means real savings. We can go to any country and spend money the way we would in the us. When i spend money on this card i can see brazil in my future. I use the explorer card to earn miles in order to go visit my family which means a lot to me. Street with quarterly results. Pepsico earned 1. 06. Raising fullyear guidance. Alcoa 31 cents a share helped by what the Company Calls favorable metal pricing, Higher Energy sales. Here is what the ceo told cramer last night on mad money. We are firing on all cylinders. We have the best performance ever on down stream business. Absolute bases as well as margin basis. You saw increase of profitability year over year of 45 mid stream. The best quarter in the upstream business and commodity business since the start of the crisis, since the second half of 08 when it started to get weaker. Good interview, jim. Thank you. Higher prices, lower costs. This is closing the plants that cost too much, opening plants that cost less, light weighting paying off. This is on trucks. The take away from steel also and all other ceramics, composites in airlines, aircraft. Hes got a superior product with superior skills that is taking the place of steel in many different places. At the same time, he correctly predicted that the price of aluminum itself would go up and continue the amazing forecast for 7 growth. There was nothing, there was not a fly on this quarter. It was as good as you are going to get. Still a bellwether for earnings season or macroeconomy. Trucks in the United States up gigantically. Nonresidential construction up huge. Autos raises the forecast which is different from what you heard saying maybe from ford. Ford setting the trend for being not what we want. Packaging just okay. Carbonated soda. Although beer cited as being good. We have time quickly to hit pepsi . Those numbers 3. 1 organic top line growth. 1. 36 above estimates. Looks like a decent quarter. They raised 7 to 8 . Now taking growth 8 to 9 . Snacks are good. Snacks worldwide really good. Mountain dew good. Not a focus on carbonated soda. New alltime high this morning. Facing a proxy down the road. Unallocated costs are down. It is the best performer. Icahn goes after the best technology company. Near an alltime high. And pelts goes after the best consumer package story. This is a much better story than any other stock i want to follow. The one to own is pepsi. If you want to own technology, the one to own is apple. They are under fire. What does it say about the bad guys . Problem there if you lose, you lose money. Lets see dupont. Thats on the way as earnings season starts to kick up. Cramers mad dash as we count down to the opening bell. One more look at the premarket. Have prescriptions o fail to stay on them. Thats why we created programs which encourage people to take their medications regularly. So join us as we raise a glass to everyone who remembered today. Bottoms up, america. See you tomorrow. Same time. Another innovation from cvs health. Because health is everything. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov before the opening bell here on a thursday. We are back to do a mad dash because you are back. Somebody who will not be back at the gap is their ceo. Looks like its a murphys law situation. Glenn murphy is out. We dont know why. Glenn starts the conference call. If youre grooming a guy, the call doesnt start with here im doing a good job. Could this be a what have down for me lately situation . Inconsistently, the flagship business, inconsistent. There have been a lot of good things done by this man in seven years. 167 total return. Omni channel guy comes. In people like murphy. One thing murphy did was steady tilter. The stock has been stuck. I could understand why people are saying, come on. We see other retailers doing better. You should be doing better, too. Murphy out. Janney, stern and wells all wish murphy were still running the company. The stock is getting hammered. If hes not forced out. I dont know what the story is at all. Hes not an old guy. I dont know. Why is the stock down . Are people assuming theres bad numbers to come still . September not so great. I am going to be so bold to say you buy it. Look. Retailing has gotten great. Jc penney saying we are back to the old ways. The only company doing well is costco. Walmart stocks sneaking up. Why . The huge amount of revenues people feel sears will lose. They love costco. They are starting to warm up to walmart. Cant get away from sears fast enough. Gap joins the nere do well crowd. Well watch that and other retailers. The opening bell coming up less than six minutes from now. More squawk on the street after that big rally yesterday. Can the bulls keep it going . You know what my business philosophy is, reynolds . No. Not exactly. To attain success, one must project success. Thats why we use fedex one rate. Their flat rate shipping. Exactly. It makes us look topnotch but we know its affordable. [ garage door opening ] [ sighs ] honey, havent i asked you to please use the we dont have a reception entrance. [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. [ male announcer ] ship a pak via Fedex Express saver® 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 the bank of england did hold stedy. 287,000 nonseasonably adjusted. The earnings trickling in. Weve gotten to alcoa, pepsi and more on the way. One thing klaus said, you are too gloomy in the United States. There is so much good happening here. Ken langone saying the same thing on squawk. Dont lose sight there is much good here. Thats what you are seeing. Josh brown this morning tweeted that the markets, the u. S. Market is like a guy trying to do a wave in a stadium, but nobody else is joining in. Thats the way our economy is acting, wouldnt you say . I like that imagery. Stick a gopro on that wave. Im now officially like, hey, youve made all the money you are going to make from gopro. Every inch of hawaii is gopro. Every inch. Of what . Of hawaii. The surfing there. Everybody is just filming themselves doing things. I watched a video of a go to the on a surfboard with a gopro. Okay. Done. A boar and goat. All right, enough. What are you going to do next . How can you top that . Cant top it. Keep your eye on a bunch of the momentum names today. Tesla is up 1 , as we are expecting this mysterious d to be revealed late tonight around 10 00 p. M. Twitter is causing huge havoc. There you go. Whatever. I still think yesterdays rally was, you can average the two days. Hedge funds having capitulated. Why . The fed is going to continue its policy. Over two days, the dow is up over four points. S p is down two points. The machine going back and forth. Judge, what does that mean for the rest of the week, anything . If tuesdays thursday, we go down, tomorrow pick it up. Well talk about retail later on. Limited brands out with some numbers. Get your take on what jcp said yesterday. I didnt think it was nearly as negative as people said. Going back to coupons. Big deal. L brands up 6 . Wow. Theres the opening bell. A look at the s p at the top of your screen. Down near the big board hubspot. Over at the nasdaq, rentrak. There is a nice piece in the Washington Post about cnbcs primetime slate. Worth a read. Have you seen it . I have not. I will read that after the show. Show it to icahn. Maybe he talks about it at halftime report. Shark tank. We mentioned the icahn letter to apple. Oppenheimer does take it to outperform. They believe the iphone sales are going to essentially blow away all expectations. They do add that the apple watch will, in their words, initially und und underwhelm. They are doing surveys if young people will buy the watch without looking at the watch. Maybe if we look at the watch we can make a better judgment. This game is more depressing to me than the icahn game. Guess the iphone. Its like name and number. Nail the number. Nail the number. What kind of analysis is that . Nail the number. At least icahn comes up with a whole new product line. He did. I dont know if hes making it up or what. Good theater. Is it possible that the entire sell side analyst complex, they crunched all the numbers they can, but one guy or three guys are actually right about the future of iphone sales, revenue . I read it and i was amazed. I said how the business has changed. You take a 1 position and you basically say management, heres the way it has to go. Theres not a lot of humility in the process. They dont know anything a lot of other people dont know. They are not getting a special call here. Theyre not. I do want to mention a deal, if i can. Auxilium getting bought by endo. They were in a deal to buy another company. That is now pushed aside. 33. 25 in cash and also some stock. Its a cash stock deal based on proration of 0. 488 endo shares per auxillim share. 55 premium on the Closing Price from 16. Its similar, remember tyson with hillshire. Its another deal to stop another deal. Its all about urology. Erectile