Throughout. Tom lee said himself, the financials, the idea that were out with some of those, that sounds like great news to him. Its something theyre going to be covering in squawk on the street right now. Expired, by which the underwriters can start saying what they think. And guess what eric schmidt thinks is the companys biggest rival when it comes to search. The answer may surprise you. Got his attention. A big day for Bank Earnings. Jpmorgan chase posting a Third Quarter earnings miss. Revenues, though, did exceed estimates, helped by fixed income, currency, and commodity training. Citi reported better than expected Quarterly Results while wells fargo came in right in line with what was expected for its Third Quarter earnings. The Bank Earnings coming one day after stocks posted the worst threeday losing streak weve seen since 2011. The s p 500 down nearly 1. 7 , closing below its 200day moving average for the first time in almost two years. I said 1. 3, it was 1. 7. And adding that to last week, we are looking at significant losses. Are these Bank Earnings going to do anything, jim, to stem what seems to be this sentiment change. I can give you a lot of reasons why we shouldnt be going down that much. All these worries about global growth, but are the earnings going to do anything to change Market Sentiment . I think j j could. I think one of the things you mentioned, a pop, was this Interest Rate move, which suddenly, you know, you get kind of a rate that is so low, that youre going to get more people going back to those accidental highyearolds, lets call them that, or bond market equivalents, that can deliver numbers. J j is obviously not a cheap stock, but when it delivers a perfect number and you know, raises guidance and youve got a lot of medical issues going on all over the world, that anybodys got anything that can solve a health care problem, so to speak, good. Now, citi is the best. Citi is the best. Michael corbett is really good. This is a major change. Is that going to be a conclusion or is that sort of a statement in time that could change in the future . No, no. Initially, look, i didnt i didnt understand the strategy initially. Because i had felt what was great about citi was its farflung nature. What he is saying is, whats great about citi is profitability. And ccar, returning capital. Every single line item that i read in citi was better than i expected. Now, in this environment, wells fargo, obviously, was the most important bank, because i say that because wells fargo has got the pulse of america. And it is reflective, if you will, of the domestic economy of a certain extent. We often talk about wells. Its simpler to understand, Net Interest Margin becomes so much more important, perhaps, because it does have Capital Markets activity and things of that nature, but they arent were not focused so much on fixed income commodities as we are it has moving parts, but youve got the rates going down again and thats not so good look, im going to Say Something positive about wells. This quarterly growth is just incredible. Its endless, its consistent, you understand why Warren Buffett likes it. So i guess im presenting a world here where these stocks cant take the market down. How about that . It has to be other things . It has to be the transports taking the market down or it has to be the industrials, where we get a lot of negative notes. The autos. Its german weakness, its chinese auto figures, its the tend tenderhooks about ebola. Every day it seems like theres something that scares the market. Yesterday, that plane at logan. When you get off the desk with guys who are really serious about disease, they are telling you, look, this is just a frightening thing. We know, but let me tell you what kills people. But it can freeze things. It can freeze things. And we know sars decision making, and it does seem to have been having an impact on the market. Every time we talk about it, were being overly dramatic. No, i dont think we are. Okay. I dont think we are, and i think you have to include it in any dialogue about whats been going on lately in the market. Right, because people dont go out. You cant point to any one thing in this market, at all. And i think we try to define it here, we will spend most of the days trying to give you reasons why the market is up or down. But the fact is, it seems to me as much sentiment as anything else. And risk coming off the and the usual things we talk about instead of, sure, you have bad numbers out of germany. Yeah, europe is in not a great place. Things dont look so great in terms of gdp expectations, but the trade number was pretty good. Right, the september trade number. Everyone overlooked that because of a dallas nurse. Right. But the dallas we dont know what happened. So suddenly, you have the cdc looking in disarray. So youre back to ebola. Here, im trying to get us somewhere else and youre back to ebola. Because it has a sars feel. And the airlines were down gigantically. Now, there was 18 of the traffic, thank you, wells fargo, was international. This is very small. But i just feel like its the newspapers you cant ignore it and the world that we live in. You know every single thing thats happening in every moment because of things like twitter. But also, something that we know, which is oil, its going to 80, isnt it . Isnt that good for the airlines or am i missing something . Isnt that good for Consumer Spending or am i missing something . If it were not for ebola scares, you would be buying the airlines hand over fist. Okay. But you cant because of ebola. You would be going on the dining out stocks. You would be buying darden, not selling darden. Theres a downgrade today. It was just fatuous. Thats what you would be buying. Retail, you should be buying. But what are the stories in retail you read . Tepid, tepid, tepid. And one of the things, i think, david, and ive worked with you for a long time, when you talk with people about whats going on in the market, heres what they say. Somethings lurking, somethings lurking. That doesnt do anybody any good. But is it kabul, is it baghdad . Will we have to send in the marines to baghdad . Its got a feel about it, this market, that theres another shoe, because every time we rally the close yesterday, reminded me of 2010, 2011. Vix spikes, doesnt mean a thing, vix is going much higher. All of a sudden, what does that guy that i dont know . In all the hedge fund trades, theyre falling apart. Or the united rentals. Or hertz or any of the oil or energy names or event names. He did this yesterday. The hedge fund pain is significant. Were talking, were down as of friday, down 6, 7 for the month. For the month. And add that to yesterday, some of them may be down 7, 8, 9 . Youre losing your year for sure. Years are being lost. That said, there may be some real value i did a piece last night on mad money. It was a checklist of ten things you get. And people, twitter, jim cramer said, thats an impossible list. No, there are things, there are values being created. Weve got stocks. I dont want people to buy them, but theres a Company Called emerge, which is a fracking sand company. It was at 75 months ago, its at 70 now. In the interim, went to 140. Yield 6 . Theres no sign right now, im going to have howard ham on tonight, the premiere oil guy in this country, who is going to tell you not to panic. That we do not stop drilling at 80. But this morning, chevron canceled a 12 billion project, a deepwater project in indonesia. Shocker. Im in shock. That was a project that was being done because of china demand. Canceled 12 billion project. But is oil really a function of reduced demand or is it simply a function of opecs sort of, keeping the tabs open, saudi arabia saying were going to take it down and down and down, and were not going to cut back on production . I can see it both ways. Right. But it may not be necessarily a reflection that things are really slowing dramatically. Saudis made a big deal with east asia to sell things forward. The oil guys want us to stop being selfsufficient. They know if they can get it to 75, they break us. Just putting that out. All right. You know what, lets come back and go through the banks real quickly before we hit the break here, so we can just sort of square that away. You mentioned wells. Fine . Yeah, fine. People panic and then they come back we all know that. The refinancing worm has run its course. And i think thats untrue. Because im frantically trying to refinance. And looking at a 3. 5 is going to go to 3. Okay, cramer, youre rich, you can get no, no. You can get a refinance now through 4 1 2 to 3 1 2. And i think that thats possible. Closing costs, obviously, if you include, goes to citi, by the way, getting out of 11 countries in its consumer bank. Citis doing everything that you want. The return of the capital. Lets talk about jpmorgan. Thats the one that everybody i love the fact that everybodys an expert on jpmorgan. It is impossible to be an expert well david, its a hard read, jpmorgan, many moving parts, but making some money in volatility. September good. And after the crisis, in particular the lead up to it, i always caution people not to rely on press releases, regardless. Thats what the Company Wants you to see. These are finance companies, Financial Services companies. They are very difficult to understand. If you had read every press release from Merrill Lynch from 2005 to 2007, you would have had no idea the risk they were taking. Nor would you have understood it at citi or lehman. Credit costs really good. Look, we are seeing the peak legal number, because west left the justice department. And when you get a peak legal number, youre going to begin to see, its not just the fees they pay to the lawyers, all the people on the other side who talk to the lawyers. I know its absurd that lawyers could actually impact earnings fine, so they can take all that money and put it into cybersecurity. They have to. Right . Its a great point. Cyberarc. Palo alto networks, very inplaited stocks. I like them, but we saw what happened with gopro when someone, you know i think gopro peaked when i was in hawaii last week, when i saw the goat riding the surfboard. Can you top this game of gopro, its too much for me. What are they going to put on a gopro next . A giraffe . A giraffe rides a surfboard. You know it doesnt align with my interests. Its done, its enough. Well, coming up, its not nearly enough for us. Google chairman eric schmidt spoke about what is the companys biggest search competitor. Who . Who . And how much does it cost tesla to produce the sedan . Well have a tesla teardown coming up. We are one day removed from a 1. 7 decline on the s p following last weeks significant dleclins on the broader averages. Weve got more squawk on the street live from post nine after this. What are you doing . The dishes are clean. I just gotta scrape the rest of the food off them. Ew. Dish issues . Cascade platinum powers through your toughest messes better than the competition the first time. Cascade. Now thats clean. Google chairman eric schmidt with some eyeopening comments about his companys competition. At an event yesterday in berlin, schmidt said, quote, many people think our main competitor as bing or yahoo but really our biggest surf competitor is amazon. People dont think as amazon as search, but if youre looking for something to buy, you are more often than not looking for it on amazon. Thats totally true. It is totally true. A couple of things, first, theyre fighting monopoly charges in europe, so you want to do anything you can to create the sense that you have competition. But there is a theme among some investors that amazon has a lot of Fertile Ground to plow, if you will, when it comes to search. When it comes to organic and sponsored search on its site, that advertisers will pay for the key words, and it is a significant competitor, perhaps. Right now its about 500 million. Were not talking about a number of any significance for amazon now, but it could be. My Charitable Trust owns google, one of the reasons, i had Dominos Pizza last night, a big upside surprise. They just advertised a win. The shift did you see the defenses all day . They all have the same characterization, dont worry about all the money going towards online. I mean, you have to. The budgets are shifting so quickly that amazon, i think is going to be a major player in that. Because we all just think about your day. Ill look up you want something and youll conceivably just go to amazon and search it. Amazon search is fabulous. And that is perhaps will be a significant Revenue Source for that company. So schmidt may be correct in that. Not forgetting, of course, he is fighting these monopoly and antitrust charges. So, well see. I mean, on amazon as well, though, theres a lot of other things to keep in mind when it comes to that company. I was talking to a very good analyst who doesnt like amazon or downgraded it, and i was saying, okay, well, what happens if the New York Times writes about ebola every single day on the top of the righthand corner, youll want to shop more amazon, fedex and u. P. S. Go up. And he said, i hadnt thought about that. Heres what im saying, if thats true, therell be another case of some Health Care Worker and people are going to freeze spending and stay at home and that is an insane thing to say on air. That that one Health Care Worker could do that. But thats how the stocks reacting. So i have no choice. Those who think im fear morninginmorning i ing, im reading the times and the journal. Theyre thinking twice wildfire they put those headlines out. No doubt. On this whole idea of search, by the way, we can end on alibaba, which were going to talk about later, because all the recommendations for the stock are starting to come out. That is key to their business model. Where they have millions of merchants, the way you get recognized is by advertising on the alibaba platform, hence search. Somewhat equivalent to what amazon at least in some ways might be able to do. Lets say you want, you own a commercial enterprise and you want stuff in manufacturing. If youre in new york, it costs a fortune to have things manufactured. So you go on alibaba and figure out where you can get tables, where you can get chairs, where you can get things made. Bangladesh this morning, you have slave slalabor free. It tells you what slave labor because i dont care how much, you dont want to be in violation of the 13th amendment if you want chairs being built. But its a natural intermediary that gets rid of the wholesale. I mean, my dad was a jobber for 50 years, a wholesaler. And what this is about is disintermediating the jobber, and that cut is gone. People understand a business model, its a wholesale and very different from amazon, which holds its own inventory, enormous amounts of it from all those warehouses, where so much of their technological edge is on that side of things in terms of fulfillment. Weve got a mad dash coming up, you ready . Mad dash as we count down to the opening bell. Taking another look, getting so ahead of myself, at futures, as my face disappears. And you see the futures board. More squawk on the street from the nyc after this. Guys youre not gonna believe this watch this. Sam always gives you the good news in person, then the bad news on email. Good newsfedex has flat rate shipping. Its called fedex one rate ®. And its affordable. Sounds great. cell phone typing typing continues woosh cell phones buzz, chirp and we have to work the weekend. Great. More good newsits friday woo ship a pak via Fedex Express saver® for as low as 7. 50. Whos going to do it . Whos going to make it happen . Discover a new energy source. Turn ocean waves into power. Design cars that capture their emissions. Build bridges that fix themselves. Get more clean water to everyone. Whos going to take the leap . Whos going to write the code . Whos going to do it . Engineers. Thats who. Thats what i want to do. Be an engineer. [ male announcer ] join the scientists and engineers of exxonmobil in inspiring americas future engineers. Energy lives here. The all new, head turning cadillac ats coupe. Its irresistible. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. That new music is stressing me out a little bit. Yeah, i dont know what that is. More diseaseoriented music. Shark tank. And a profit. Profits off of shark tank. Its that profit. Lets move on to skyworks in the mad dash. Yesterday we had microsoft preannounce. Skyworks is pretty much in every major cell phone company, including apple. David aldridge, who was a remarkable manager, one of the best ceos in tech, comes out today and preannounces a better than expected quarter. So this is it. These stocks were all oversold. Watch this. If this stock gives up the game, were going down big today. Really . Yeah, because this is as good a story as youre going to get right now in this market place. Im just saying, this is the litmus test of this rally. This is a great preannouncement, saying that basically microchip doesnt dont take that was one of the blowup of earnings season early here. Hurt the chips and brought the nasdaq down sharply on friday. As it should have, because it was so hideous. This is as hideous as microsoft was. This is a thing of beauty. Lets move on to retail. Now, i dont like this kind of downgrade, but i respect the firm. Sun trust, home depot, and lowes. High valuation, cutting 2015 numbers. Looking at the suppliers into these two stores, and saying the stocks have gotten ahead of themselves. Why does this matter . Because retail, gasoline going down, nonebola related going out. These two have been the strongest, lowes and home depot. And frankly, this stock has been amazing. If it gives up the gain from that great quarter, this is what people are looking at. People are saying, cramer, youre too negative. Ive been negative ever since alibaba. That was like the liberty bell. Could it really be that easy . Lets do the biggest ipo of all time and send it up 35 . Thatll be a market top. Come on, it cant be that easy. Well, kiss, keep it simple, s. Yes, it was remember in march, we had the dancing food and that was a top in ipos. Things happen. Bells go off, okay . Now, can we recover . If you cant if there was an ebola vaccine. If russia were to say, were done with sanctions and i hope you are too. If china picks u