As we said, the tenyear getting awfully close to 2 . Inversion blowback. The killer here, shire down 25 and a lot of big event funds getting crushed. Earnings from bank of america, blackrock are out, both beating on the bottom line. Can financials lead the market higher . First up, new data adding to concerns about the economy. Stock futures extending their losses this morning after september retail sales fell more than expected, down 0. 3 . Thats excludeing autos. Sales declined 0. 2 . Also seeing a bigger drop in oil prices after that tuesday selloff. Thats crudes biggest oneday slide in almost two years. Oil is down 23 , jim, since june. Its cost opec hundreds of millions of dollars. Larry fink that morning saying he thinks gas prices are going to come down 30, 40 cents into years end. Gas prices are based on brent. Brent has come down a lot. I think thats a nice prediction. You need oil to go to 70 if that happens. Is oil possibly going to 70 . I had harold ham on last night, who a lot of people feel is the originator. He thinks oil goes down by bounces. The man behind the big liquefied natural gas export says 60. 60 . Yeah, 60, not a problem. No place the put the oil. Were pumping so much, were not stopping. Saudi is pumping. Iran i know, 60, i think, is extreme. I think the 70, 75 is possible. Technically, 77 has held many times. The suki case, and he does not do well with oil at 60. Natural gas. Because natural gas loses, exactly. Loses its value proposition. But this is uniquely a perfect storm against oil. You needed to see a ram, which is coming back online because the sanction is going away. Saudi is pumping like mad. Venezuela, not a lot of clout. Theres a lot of false numbers out there about how much money is made. You keep hearing the u. S. Oil companies do poorly at this price. No, thats the problem. They do well. Its 60, the internal rate of return is very good. So dont think were going to shut the spigot off. If it goes to 70, production could be cut in half. Harold ham said 70 is going to be theres going to be a big slowdown, not just rig count, but you have to watch how many wells are being drilled. There will be a concerted slowdown. 16 states, the states that are responsible for the great employment rise predominantly are at risk unless they export oil. United states has to export oil. Thats the way to get around this. The refineries are operating 95 you cant refine anymore. You dont have enough pipes to get the stuff out of where it is. It costs too much to truck. You have to export. It seems to me to be a highclass problem. Yet, im trying to understand what the impact of this incredible fall in oil prices is. Is it a negative or a positive . I want to tell you what i worry about, but yesterday he cut me to the quick, just like in wizard of oz, when i said ebola is underestimated in this country. Unless you have dominos pizza. Its just a windfall for people who want to spends more money eating out, going out. But if dominos, of course, you eat inside. It actually would be a beneficia beneficiary. Yes, there is a windfall. But the country has jobs at risk. We had a bad retail sales number this morning. Not good. We underestimate ebola. We underestimate russia. We underestimate isil. We underestimate the decline in commodities. We underestimate the decline in the chinese growth. We underestimate germanys resolve to be able to stay balanced. We wake up this morning and see the futures down as we try to price things better. I dont even want to talk about the real event thats davids. Yeah, in a moment. Before we get to it, larry fink with becky this morning said the selloff has been what he called fast money exiting. The meltdown of hedge funds. And no Sovereign Fund he knows of has been selling equities in the past six weeks. Does that ring true to you . If Sovereign Funds were at the margin look, larrys terrific. If you go back to 2008, it was hedge funds. I want you to look at the Master Limited partnerships. A lot of hedge funds decided we can get kind of like what happened with commercial mortgagebacked securities. If we borrow a lot of money and we buy Master Limited partnerships that yield 5 , 6 , 7 , were going to give a superior return. The decline in the etfs that are involved with the Master Limited partnerships is ferocious. I think thats also at the root of a lot of the problem. A lot of these guys were set up very long oil, betting that isis would take baghdad and betting that iran would not come back on, betting that by the way, libya is pumping like mad. Libya is a huge producer. Dont forget, were adding 1. 1 Million Barrels every single year in this country. About to accelerate to 1. 5 million. Lets see what happens. All right. I want to get to a story this morning. May be having the largest impact on the overall market. Thats the potential for one of the largest deals of the year, one that was an inversion and still is because it still remains in place, but potentially is about to be dissolved, i guess. Youre saying it right here. Youre saying this is not negotiations. Well, we dont know, jim, exactly what is going on here. I want to add, typically in Something Like this, abvi last night puts out a statement basically saying that the board of directors intends to meet to consider whether they should withdraw or modify its recommendation to support the merger agreement that would combine them with shire. This is a 50 billionplus deal. Its an enormous transaction. Its widely owned and deeply owned by a lot of big funds. Pahlsson, for example. Lets call it 27, 28 million shares. A lot of people, jim, are trying to figure out, okay, is this some sort of play by abvi to cut the price . That seems highly unlikely. Why . Because under u. K. Takeover law, take a look. You really cant do that very easily. Rule 2. 5, the potential offer will not be allowed subsequently to make an offer for the Offeree Company at a lower level of consideration other than in holy excepti wholly exceptional circumstances. Looking at a lot of research this morning, theres been one or two precedents for that. If you wanted a price cut, this certainly would not seem to be the way to go about effectively doing it. Im not getting any insight from any of the players here, i have to tell you, which you would expect if they wanted to hold your hand, if they wanted to give you at least some sense that, dont worry about it, perhaps some in the media would hear about it. Perhaps some of the holders would. Billiondollar breakup. Also lost money on the currency if theyve been hedging it already, given whats happened to the euro. That being said, jim, we dont know what abvi is thinking. We dont know if its a split on the board. Which seems more likely right now. This as they were forced to do under u. K. Takeover law is simply a prelude to them saying were done, were out. September 29th, david. The ceo quoting hes more energized than ever about our two companies coming together. I have that ready to go. See how it works . I like that. He did. In fact, a lot of shareholders here took this as a good sign. This came after. This was more than a week after the change and the inversion treatment by treasury. So you got this handholding, so to speak, talking about, as you just said, all the good things they say were going to happen. Apparently the cfo of abbvie very recently has been out talking positively to shareholders about the deal. This has got to be the lawyers here who may be a small group of people really know whats going on. Bernsteins out today. They say it could be what they call a routine board review in light of the potential new regulations. All you got to do is get the lawyers to say, you know what, im worried about jack lew. Could it also be someone on the board . There are a number of people who are chicago people on that board, so to speak, some of whom have connections to the Obama Administration at least, with thinking being perhaps the Obama Administration has put some pressure on them. Listen, i dont have a great amount of insight for you unfortunately. I wish i did. I would love some people to start to reach out here, give ugh something. I know abbvie pretty well. They need to steal in order to have the upside. Abbvie is a good company. What im saying is abbvie, if this deal were over and you have to pay that breakup fee, abbvie should be yielding 3. 5 and should not be able to hold 52. Abbvie is down this morning. A lot of people have done the math, just as you did it. In fact, other analysts have done it saying even without an inversion, this deal makes sense. Thats why you had so many big funds, so enormous in this name. They believe that you were talking about a difference in cash in terms of, remember, you can no longer use overseas cash to help had the acquisition. So another 6 billion. People were trying to understand, what changed here . What didnt we understand . When we did the math in terms of what it would mean for you in complying with treasurys new regs, it didnt hurt the deal enough for you to walk away from it. Take a look at this note. What if there was a change . We still think the significant tax savings available to abbvie. The potential stax savings without an inversion would be worth nine pounds a share. Theres a part of the story we simply dont know at this point. I want to point out the Broader Market implications are youve got these funds that are going to suffer massive paper losses. Medtronic is good. That deal is good. If youre one of these guy, youre losing your year or more right now on this deal. Nice haircut. Thank you. Well, viewers are getting an up close and personal look at it. People saying, whoa, easy. Yes, its a little much. Shocks even me. Im going to move my chair back maybe. Maybe we can get truth and reconciliation on the abbvie deal. When we come back this morning, new developments regarding ebola here in the United States. Well get an update straight ahead. Later my main goal is to make sure that our airport and our screening process is in place. If theres a problem there, then we have the backup through the Public Health system and our capacity. Chicago mayor rahm emanuel talks to us expressing his concerns about ebola. A lot more of that coming up later in the show. Take one more look at futures. Well get to bank of america and blackrock and intel and the tenyear. Intel . Squawk on the street from post nine continues in a moment. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Some wicked action in futures this morning. S p still down about 18 points. The tenyear is the one to watch. This could be the biggest oneday drop in yields for the tenyear in over a year. So keep your eye on that. Can i just say that for those of you who watch this show for more than just stock information, if you can lock in anything, if you can lock in a 10 to 20year, you miss your chance last may. This is it. They want to give you seven year and readjust or a five year and readjust. You got to call today. You got to refinance. The rates are fabulous. Im just telling you. Call your refinance guy, call your mortgage broker. This is it. I cannot believe youre giving this gift again. Try to get under three. People who dont have the credit, they can probably get three and a quarter. Maybe three if you get one more down the ten year. Sometimes you just want to go outside stocks and just say, you know, you may have to make a call here. Meantime, a Second Health care worker at a dallas hospital has tested positive for ebola. We have the latest from hg. Good morning. Thats right. This Health Care Worker, like the nurse who was diagnosed over the weekend, was involved in the care of thomas eric duncan, the patient with ebola who passed away in dallas last week. Health officials havent identified how the Health Care Workers became infected. Because they were exposed, others could have been as well. Theyve identified 75 other people in mr. Duncans care who are actively being monitored. Details just coming out this morning in a briefing, the Second Health care worker was also a woman. She lived alone and had no pets. Decontamination of her living area is under way. Mayor Mike Rawlings spoke about communication. I continue to believe that while dallas is anxious about this and with the news this morning, the anxiety level goes up a level. It may get worse before it gets better, but it will get better. Health officials will identify whether that Health Care Worker had any contacts that need to be monitored. We know the nurse received a blood transfusion from dr. Kent brantly. Any experimental treatments would be up to the patient, her family, and her doctors. Its been more than 14 days since mr. Duncan was initially admitted to the hospital. None of his 48 contacts have shown any symptoms. Carl . Well keep our eye on that. Theyre getting into a period where we might get more optimistic. When we come back, cramers mad dash. Well count down toward the opening bell, take one more look at the premarket, as it does look like stocks are going to sell off hard at the open. Were back in just a minute. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. 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. Ship a pak via Fedex Express saver® for as low as 7. 50. You say volatility, well its been back these last couple weeks. Again today you can see the futures pointing to a decidedly lower open. A confluence of events, including a potential deal breaking, another ebola case. Panic in treasuries. Oil prices falling dramatically over the last few weeks. These are all violent moves, like the tenyear. Were going back to may of 2013 when you got that once in a lifetime, turns out to be twice in a lifetime. Lets talk about earnings season. Bank of america ended up doing quite well despite the fact they had the 6 billion check to the government. Government litigation now behind them. Back value, 14 and change. Youve got a situation where theyre making a lot more money than i thought they could. That interest margin kind of stabled. They obviously need higher rates. Theyre getting lower rates. Put this in a category of good. Maybe the feds are going to relent, allow big buyback. A lot of cash building. Solid quarter, no one will care. Why wont anyone care . No one will care because the Interest Rates are going down so low that people are going to say, wait a second, theyre set up to make 3 billion on the fed raising rates by 100 basis points. Its now frightening to me. By the way, every single year it seems that you came into the year saying this is the year to short the treasury because yields are going up, youve been dead wrong. Every single year. So much blowing up. Theres someone blowing up in treasuries. You dont find this out until after the fact. Someone blowing up on the abbvie shire. Many levered players out there who are being carted out today. Theyll be down 10 to 15 and be done. Then you wonder about liquidations or forced selling. Intel had a good quarter. Hewlettpackard resumes the buyback, which then is just code for were not going to buy emc. Yeah, the emc talks are done, i can tell you. Still Due Diligence going on, even though there were no longer cotoco talks. There were still a semblance of these talks that had become fairly serious some months back between hewlettpackard and emc, which would have involved hewlettpackard buying all of emc and Going Forward with that split. They could never get anywhere near the right price. Emc wanted a premium deal. Hp wanted that market. Now its over and done with. And they can buy back stock. I happen to like the printer business. Why . Because theyre going to go in, and i think theyre going to destroy the 3d printing business. I think theyre ready. I think thats part of the sex appeal. 3d printing is for real. I think hewlettpackard wants to come in and own that. Can they do it . I dont know. Intel, pointblank, saying that the server business is good, the pc business is good. Now, downgrade intel because theyre saying its not so good. Obviously the stock is going down. Im not going to fight that. Hewlettpackard will not go up if intel goes down. Hewlettpackard tied itself in knots with this decision. Lawyers putting out these statements we cant buy back stock. Youve been in this business for years. Ive never seen it. Its weird. Whats going on with strange statements by ceos . Well, it wasnt by the ceo. It was the lawyers. It is hewlettpackard. Given whats happened in the past, they want to be extra cautious. All right. We have a market open youre not going to want to miss. Cant say its necessarily going to be good to watch, but its going to be important. Were back with it right after this. p its monday. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, Global Broadband network and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. Centurylink your link to whats next. Youre watching cnbc squawk on the street, live from the Financial Capital of the world. Well get the opening bell in just under two minutes. A lot going on. Earnings are just the beginning. Were watching ebola, second case in dallas. Obviously, oil weve