Transcripts For CNBC Squawk On The Street 20141031 : vimarsa

Transcripts For CNBC Squawk On The Street 20141031

After the bank of japan surprises World Markets with additional stimulus. Shares of starbucks heading in the other direction. Lower premarket after Quarterly Sales disappoint. We will talk to Ceo Howard Schultz about that in an exclusive interview later on in the hour. And citi adjusting its previously reported Third Quarter profit, setting aside an extra 600 million to cover legal costs. We are going to explain exactly why. Well, a global rally for stocks on a morning that could see the dow open todays session in record territory. This after the bank of japan unexpectedly announced additional stimulus measures, including plans to buy more japanese government bonds and other assets. U. S. Stock markets on track to finish what has been a volatile october on the up side. Jim, some 2 1 2 weeks ago, would you ever have thought we would be sitting where we are today . The numbers are unbelievable, from the lows, the dow is going to be up 9 , s p 10 , nasdaq 11 . Whats amazing here this is all done within the back drop of how we have been waiting for 7,000 dow points to crash, october crash when the Federal Reserve ends its bondbuying program. It turned out to be an abstraction. Literally an abstraction. It had nothing to do with the vast majority of the points being put on. This last selloff and rally was ebola. Really largely ebola and perhaps russia. Russia ukraine has a deal. It was not profits. Profits were amazing. The Earnings Period has been superb. These are things that are not talked about enough. When youre at home and youre sitting there trying to figure out why is the market going up, its because of the companies doing well. Not because the s p futures, not because of the Federal Reserve, not because of janet yellen. Its time for all those people to recede in the background and the ceos making you big money to go forward. You say best of breeders dont sell off much and dont stay down long. Thats what we see. Honeywell Quarterly Dividend increase. 3m. Got immediately back to a 52week high. Disn disney, ten days ago we are worried about ebola and the disney theme parks. There is a resilience to the American Consumer, resilience to our situation. I need the ideologues and political people, people focused on politics in the marketplace, they need to recede because im tired of hearing people do misdirection plays. You and i are both football, right . Im tired of the read option the countertrade didnt work. Im tired of fooling our viewers. In reality, this was one of the greatest rallies since the bottom. I feel that its been ignored. Its time to stop ignoring it. This does remain a central bankfocused world. We are finding that out today. Yeah, but japan does what it does. Japan, theyre buying everything. Thats a moribund country. There is no growth. We have gdp growth, population growth, profit growth. Im not denying this rally, this is off the nikkei. The insanity of that countrys central bank thats worth talking about. They are buying etfs. I think they are buying coal options. I think they are coming on your show at 12 00 saying were all in. That can ripple. Stocks will come back down if things arent good. Im just saying they perhaps wont because in the end, Interest Rates are ridiculously low because theres not a lot of demand because there is manipulation away from us. We are an honest broker country. We are stand out. Our banks are the best. Our Federal Reserve is most reasonable. Other countries have deflation which we know is historic. I am being positive. I am not afraid to be positive. If nothing else, this is a reminder what the boj is doing today as the fed takes its foot off the gas a little bit. Maybe moves into the slow lane. Boj flashes the brights and they are willing to step on the gas. I sure hope there is gas in their cars. They do, too. They think they are sitting back thinking, we ought to take inventory . Those of us who traded in 1986 to 88 remember when you get the call from the japanese brokers, we are buying tokyo electron. You might want to take 100,000 down. The japanese market historically has not been as rational as ours. Its difficult to be able to effect change. We are a great country for the market. I know the democrats are in power. Were still a great country. There. I said it. Ive broken every orthodox i have to listen to at all times. I am an optimist about our country and the companies. They keep delivering. They are what we are about. Janet yellen did not make honeywell raise the dividend just now. I checked with her. She did not force their hand. Two months left between now and the end of the year. You have an election next week that could bring some change. Do you feel the market is set up pretty good between now and the end of the year . If you care about earnings, and if you care about Interest Rates and you care about the notion of actually a bit of tranquility versus what we had, the craziness, the Government Shutdown . Yes, its a benign environment. Companies that do well will have their stocks go up. We just had a huge selloff. We had if you look at some stocks the world felt like it was coming to an end 2 1 2 weeks ago. I had guys who werent flying. You talked to people who said retail stock because of the cold weather, thank you, we are finally going to get an uptick in retail. I just feel like whats happened is we should have taken our cue from Companies Like apple. They delivered amazing quarters. We should not have taken our cue from ibm. A lot of hedge funds looking for gains between now and the end of the year. They dont go long because somehow they feel that this is illegitimate. Chasing something that is going to run out of gas . Yeah. They think its all asterisks. It was done through smoke and mirrors. Now we are going to find out. Youre making the point that this was not smoke and mirrors. This was done through real profits from real companies, as i said, the best in breeders. Those were your words. Most of the gains, im taking on 3m because its such a Great American company. They would tell you, look, despite the worlds tepid growth, we are going to deliver. Polaris. I dont know if you have an atv or one of his indian motorcycles or one of those things you ride around in your farm to deliver hay. Negative, negative, negative. You dont need a thing that guy makes. Sales are unbelievable. Hes got innovation, technology. Celgene. Do you think the ceo says, you know what . Im worried about that guy plosser. There is a cleveland woman. Do you think the guys at gilead are saying that cleveland fed whatever . Do you think they sit there and say fisher told us we are done. Do you think they say that at regeneron . It doesnt work like that in corporate america. They are making money for you as a shareholder because they are trying every day to beat everyone else. The competitors these guys are about making the playoffs. Making the playoffs . This is a game, note practice. It is a game. Im just saying i am upset because the ceos are giving it all shes got. What we tend to do is say, you know what . This is all about qe whatever. If you sit down with these ceos, we are killing it, man. Talk about how we are killing it. Talk about the innovation. Talk about the discoveries. Why dont you talk about the execution . Why do you sit there and talk about the philly fed . Lets talk about starbucks. Sure. Quarterly earnings in line with street estimates. Revenue just shy of consensus. Starbucks announcing a 23 Dividend Increase as well as plans to launch a Beverage Delivery Service in select markets in the second half of 2015. Later this hour, well have an interview with howard schultz. Weve got to go over why traffic decelerated, whether they have a lead over apple i pay. Got to go over the idea of best of breed but saying they are not satisfied. We have a lot to talk about with starbucks and howard schultz. What would be your first glance of the quarter . You focus on the comps coming in light . We have to talk about the Seismic Shift of the American Consumer who wants to do mobile. Doesnt want to go to the mall. Theres a behavior change in the American Consumer. Howard saw it coming. But didnt see it coming this early during the quarter. This happened last year. They understand the dynamic of people and how they shop in mobil and digital. Can they change fast enough . Thats what we have to discover. China, unbelievable. Europe, major comeback. No one cares because we are a group of negative people. I can knit pick with the best of them. By the way, i have not attacked Herbert Hoover in a pantsuit today. The one person standing in the way of european growth. You know who im speaking about. Merkel. Still waiting to hear about her. She is still with that playing the game 29 to 32 before fdr got in. Maybe that will change next week. They better play ball. I do think we are a moment where she stands in the way of 770 Million People making a comeback. That continent is all hostage to Herbert Hoover in a pantsuit. If youre negative, youre still fighting the rally . Wake up. Wake up and smell the java. Im not talking about starbucks, unfortunately. What does it mean to the market if hoover surprises you and draghi pulls out the bazooka . What does the dynamic duo acting in a manner some people think they ultimately will mean for the stock market . You tell me she will support italy and france and use that incredible Budget Surplus to put people to work . We would be up major. I dont think she will. The fact is if ukraine and russia do a natural gas deal, then i think there is hope. Now lets have growth. All right. Coming up a lot more to talk about. Well talk to howard schultz, a live and exclusive interview later this hour. Expedia is one of todays earnings winner. The ceo on his companys latest results as well as his take on the travel landscape in the wake of ebola. Another look at futures now. Will the dow be at an intraday alltime high off the open . Looks like it right now. Theres the s p with an implied open higher by 23. Nasdaq, look at that. Implied open up 62. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. 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 theyre dressing up on the floor this morning. How about gopro . S off to the races, strong earnings. Silent some of the nay sayers . I think so. Here are the nay sayers. 100 million shares off a lockup in december. Its going to be a big amount of float. That will help the shorts. This was a fabulous quarter. A joyous Conference Call saying we dont know anything about worldwide weakness. We cant ship enough. They are supply con trained. You have optco saying this is an underperformer because you are going to see things go wrong. Steeple saying dont have enough product. This stock is up a lot. Its one of the great performers. I think if youre in front of this thing, recognize its already up a lot. When it got to 93, i set enough is enough because i saw the go to the riding on the surfboard and that exceeded the big riding on the surfboard. It is an ecosystem. Its about software. The stock can have more room to run. Thats what brings out the nay sayers. It did make a lot of money. They have great margins. 45 . And the hero, the gopro hero, i dont know if you used it, this stuff is explosive. I used it and loved it and im going to get fetch this weekend. You know fetch . No. Its what you put in your dog. Dont you want to see life through your dogs eyes . I dont have a dog. What do you have a goldfish . I have two little boys at home. Im chasing them around enough. Cleaning up after them. Put a grow pro on their heads and enjoy youth. It is going to be a gopro christmas. Are you kidding me . At best buy, you get a gopro and get the hp printer, 1800, hard to find, and youre going to do 3d images of what your dog sees. I have an african tortoise. It lives to 110. Im putting a gopro on its head and well put a time capsule in. The ultimate slomo video. Loves watermelon. Lives for broccoli. I think ive seen that, actually. Youve seen it. Linkdin. Grew 45 , are Marketing Solutions grew 45 . The 40s. You have to have 40s numbers in order to get your stock higher. Linkedin has that. The stock was down. Now its up. The stock has traded down like four out of the last six quarters off the earnings. Right. This time they pulled it off. It was a great quarter. Watching your show yesterday was so interesting. There are pockets of weakness we should you had that great intersil. There are things going wrong, companies that are not doing that well. What im saying, they are in the minority. One that hasnt done well of late that you focused on is twitter. Has anybody left while weve been on . Every what, every quarter . They are so polite. They are changing jobs more than we have nfl football now. You wanted some management. You dont argue with the franchise of what twitter is or what it represents or what it can be. Its the execution. Its a 10 billion opportunity. We make him chief tweet and we bring in a ceo. Then weve got that powerful combination of a chief twit and a ceo. And nodo. Time for nodo to step up. This is a west pointer who worked at goldman. He was the cfo of the nfl. Talk about a job. I bet he would eliminate these games. The first half of yesterdays game was as placid as twitters turnover is. Did you see what they called it in the New York Times . The game of thrones in tweets. When you have a team play on sunday night and then have to play a road game on thursday night tired. Rg 3, welcome back. Great to have him back. Cramers mad dash as we count down towards the opening bell. 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Its going to be a big open at the new york stock exchange. Dow with an implied open up nearly 200 points. New alltime intraday high from the dow. Time for cramers mad dash. Ahead of the market open. We are talking big oil. Ive got trickortreat going here. Chevron and exxon look like treats when they reported. They are tricks. Oil is down 1. 44. Chevron growth. No, they dont have growth. Look at Production Growth. Earnings dont mean anything. Exxon down 4. 7 Production Growth. We have oils that have 25 , 30 Production Growth. Treat . No. Trick . Yes. You used to be in chevron, right. Chevron. You prefer Royal Dutch Shell . It has a restructuring going on, better yield, good Production Growth and it still doesnt matter. We are watching deflation in this world. Talk to the bank of japan. You will see that these companies cannot at 79, even though theyve got great refining in march, cannot be up a day when you have oil down this much. Dont be fooled. When they knock on the door, be prepared. Its spooky. I remember what the linkster was telling me yesterday. Hes right. Dont let that in. When jason comes to your door, it is jason if its an oil stock. Dont answer the door. Opening bell is just minutes away. Its a fresh approach on education superintendent of public instruction Tom Torlaksons blueprint for great schools. Torlaksons blueprint outlines how investing in our schools will reduce class sizes, bring back music and art, and provide a wellrounded education. And torlaksons plan calls for more parental involvement. Spending decisions about our education dollars should be made by parents and teachers, not by politicians. Tell Tom Torlakson to keep fighti

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