Apple hacked in china. This time the app store. Apple says it is working to address that problem. And as alibaba marks one year as a public company, the final lock up on share selling expires. Will the stock see more pressure today . Stocks poised to open sharply higher, looking to recoup losses from fridays selloff which did include a 290point drop on the dow. There continues to be buzz over the feds decision to stay pat on Interest Rates. Earlier this morning, st. Louis fed president jim bullard who didnt have a vote at last weeks meeting said he would have dissented, then he said this i have a message for your friend cramer, the fed cannot permanently raise stock prices. Hes one of the great people at looking at businesses, how good is this business, whats the profitability of the business, whats this thing worth. And, you know to have him cheerleading for low rates 24 hours a day is, i think, unsavory. Also said a number of other things, guys. Larry somers should know better there will remain accommodation after a hike. You had a bit on squawk a few minutes ago. Other than the unsavory comment, typically i like to have combat that doesnt have attacks. Mr. Bullard came back with a softer approach as i extended an olive branch to chemical warfare, which im typically against because of the geneva convention. I said on friday one day we should tighten. I think china is on tend tender hooks. Europe is not on firm footing. I lived through 1987, when germany was fooling around with rates. Mr. James baker said he wasnt going to let them jerk us around that weekend was the beginning of the crash in 87, 97 98 we lived through that we imported a slowdown. 1994 we had the peso crisis. I wish we were america first, an island. Unfortunately we havent been. Im taking Janet Yellens position which is also unsavory, i guess. I guess. Youre very kind. Im just like colonel kurtz. He did he did bless your ability to analyze companies. Thats good. He said i have friends. Im not friendless. Though i dont like the way he said friends. As a real friend, i didnt appreciate that. As often is the case in political discourse, he set up a false argument because you havent been saying what exactly he said youve been saying, that said, here we are. Am i cheerleading for higher prices . Ive been negative about the market. I cheer lead the idea that main street needs to be on firm footing. We have housing thats good. Lennar reporting else. What else is good . Maybe autos. Mr. Bullard, i like the fact he disagrees. I disagree with the fact he thinks its sanguine out there. He did clarify the word sanguine. I just dont think its sanguine out there. Whats the real issue here . The real issue is that i think if we dont take into account international, we would have been down much more. As it is, we were down. I think china is a black box. I dont like a black box. Europe is trying hard to come back. I find our economy took a step down. Employment is to our economy as the chinese stock market is to china. Theyre not as relevant as they used to be. Because the jobs that were creating are not the kind of jobs that are the kind of jobs that the president would favor or all of us would favor in terms of low pay jobs. Not creating the kind of higher pay jobs or wage increases. Im worried about deflation. Reasonable people will disagree provided we take a higher road. Its been hard on bullard, he is the Justice Kennedy of the fed. Hes been a swing. A couple years ago he was saying to hike then. He used the word sanguine not long ago. Equity markets are forward looking, theyre trying to assess the trends in the Global Economy, and were also trying to assess the trends in the Global Economy in that sense, were looking at the same things. Im not sure i would have exactly the same assessments as the markets are having. I knows there worries about global growth, probably a lot coming from china. I would probably be more sanguine than the market is today on that dimension. With all of that well hear from yellen this week. Well continue to kick this around as we go into the october meeting. Mr. Bullard was sanguine at 16,455 on the dow, then it went to 15,566, the problem is it did that in 48 hours. I think a lot of it had to do with his he may think im a cheerleader for higher prices. What i am is a person who wants reasonable discourse that doesnt in itself create a bear market. And i think that he said that my comments are unsavory. All i said is his comments were, i felt, irresponsible at the time. Not that hes an irresponsible man. Thats true. You did go after him a bit. Im just trying to remember why why now im starting to he clearly had a chip on his shoulders. Eli manning lives about a mile and a half from my house. Will you be knocking on his door . I could go after him, but i maintain a high road there, too. I am, in the end, a high roader, like the verrazano narrows brink. Im not like the holland tunnel. And that is an expensive bridge to cross. Lets see how high i am, versus the brooklyn battery t tunnel. Tappan zee. Thank you, you am a tappan zee guy. Mr. Bullard has every right to say what he says. I have a right to say what i said. If he got heated this morning, called me unsavory, um always looking to look the other way. Im a turn the cheek the other way. Im often confused with ghandi. Apple ios hit with its first major attack with a number of chinese apps infected. Apple confirms a tool that the developer used was modified by hackers to put bad code into apps on a week where chinas top trade official telling u. S. Companies ahead of the visit that a lot of these concerns you have are visible. I dont want the president to call off the meeting because of hacking. Theres a lot of positive news a lot of apple surveys about the iphone. This hacking issue, i talked with chuck robbins, the ceo of cis cisco, he talks about even the users of devices and hardware have to be more sensitive. There is still kind a belief that youre safe. One thing david talked to me about when he was worried about his cell phone in china, the presumption that youre safe is what we have to deal with because youre not. Youre not. This is an issue we deal with every day. Whatever form it comes in. Its also an important issue in the conversations that do take place between president obama and the chinese president. They may be focused in part the u. S. Continues to push the chinese to stop cyberespionage. At the same time, maybe they will make something on cyberwarfare which is extraordinarily scary when you think about it. The most important parts of the visit will take place in seattle with the Business Community as opposed to in washington with the president. This is just another example, i think, of the focus that needs to be there on cyberand what it means whether its on the commercial side or on the National Security side. Im always worried about this issue. If you put the sum total of what has been hacked, we can be very vulnerable. I always worry that were one step behind the policy of the bad guys. I look at our terrific companies, palo alto, fire eye, i say are they are they really a jump ahead or are they playing catch up . Even though i like those companies tsh companies, it feels like were playing catch up. The office of personal management had how many peoples identities taken by the chinese . Thats another thing g geopolitically. If that begins that introduces a new set of issues. Dont forget, h r block came on mad money they said when you see identity stolen by other guys, thats often because they want to put in your tax return. They get your tax i. D. And they get your refund. Thats been a major focus, stolen refunds. Finally speaking of china, alibaba, lock up period on 63 of its shares expired on saturday. That allows the companys largest shareholders to start selling their stock starting today this as alibaba enters its second year as a public company. One of those key shareholders is yahoo which owns roughly 15 of the outstanding shares. It did have a plan to put those shares into a new company to be spun off to its existing shareholders. It is unclear where that stands right now. Initially my reporting was they were going to move ahead with it. Then there was more jawboning from the irs that may have given them more pause. I dont have any great i sight into this point on what yahoo will decide other than it needs to make a decision fairly soon whether it wants to move ahead or perhaps pursue a different way to go about spending things which could golf spinning core business in yahoo japan and leaving alibaba stake on its own. Anything that would bring out any value, which demonstrates there has to be, i think, a core worth. I know a lot of people are down on yahoo as a business away from these holdings. Even if youre down on yahoo to think theres no fundabilitial worth to another company would be facetious. I remain i think this private letter ruling what happened they let you think could happen, they spoke for the irs. Those of us who have dealt with the irs knows that the irs doesnt like to be spoken for. On alibaba itself, thats a lot of stock. Its sitting there. I know joe sy, jack ma said we wont be sellers, but there could be others. This comes back to how china is doing. Im getting more positive on the consumer there, only because a lot of American Companies said dont extrapolate the stock market. The stock market, which we may all think is completely rigged, has held up better than ours over the last six weeks. Take people in for questioning if they short sell sold short or done anything it can send a message. Well, yeah. It does concentrate the mind maj yin those discussions between the party and the short sellers. I dont think its hey, its pretty overvalued. Its more like, okay. Okay. Im a buyer. The exchange of ideas may not be as high minded as the one you and bullard had. When we come back, lennar one of the big winners. And jamie dimon has a message for congress. Take another look at futures. Trying to get back some of what was lost on friday. The worst day since september 1st. More squawk on the street from post nine in just a minute. To folks out there whose diabetic nerve pain. Shoots and burns its way into your day, i hear you. To everyone with this pain that makes ordinary tasks extraordinarily painful, i hear you. Make sure your doctor hears you too i hear you because i was there when my dad suffered with diabetic nerve pain. If you have diabetes and burning, shooting pain in your feet or hands, dont suffer in silence step on up and ask your doctor about diabetic nerve pain. Tell em cedric sent you. Jamie dimon speaking out on washington yesterday on meet the press. He warned congress not to shut down government to push ideological agendas. I think people i tell them, you guys compromise with your family, with your friends, where you eat dinner. Democracy is a compromise. Anyone who says my way or the highway on one issue is not thinking about the united states. So i wish people would overcome that stuff. A Government Shutdown is just bad management. All that said, politico said a 75 chance we will get one in some storm. The history is you get a downturn in stocks when you have this. This coupled with whats happening in europe would be a terrible thing. Its something that i think the fed was conscious of when they made their decision. Not to belabor the situation with mr. Bullard, but i was laughed at by the fed in 2007 when they said i said they knew nothing. I hate to be laughed at again. This is the kind of thing, coupled with europe and, you know, china bad, that would make it so we would be down another 5 to 10 . Im not cheerleading stocks. I havent even like the stocks. You havent. Youve been neutral lately. I like certain stocks, but so do a lot of people. If youre running a fund right now, a lot of people say its a stock pickers market. You go over stocks, theyre in a bear market. I looked at them this weekend, i felt like i was in jelly stone national park. A lot of names this week are names you have gravitated towards. General mills. Nike. General mills, you go to whole foods, will you see aisle after aisle of what is general mills, but you dont know its general mills. Its annies. Theyre blowing annies out. General mills was late, now hes well ahead of that food group in terms of natural and organic. The dividend is terrific. General mills is the company i want to be in. I know its boring. Boy, i do want boring. We count down to the opening bell. A lot of upgrades and downgrades. Another look at premarket this monday. More squawk on the street straight ahead. On . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Which means you can watch movies while youre on the move. Sitcoms, while you sit on those. And even fargo, in fargo binge, while you lose weight and enjoy a good cliffhanger while you hang from a. Why am i yelling . The revolution will not only be televised. The revolution will be mobilized. Introducing the all in one plan. Only from directv and at t. Its time for our mad dash. With a little more than eight minutes go before the opening bell. Well go global. Starting off in brazil. I do worry about black swans, people dent see things in 97 and 98, and in 87 with brazil. Pet petrobras, this isnt a high yield segment that the u. S. Talks about. If you dont think about petrobras, if you think about the u. S. While some are on the fed, you miss a larger picture, like you might miss volkswagen. We get to volkswagen. Unbelievable story. I think youre making a great point here. 100 to 76. Were not talking about a little bit of debt. Here talking about one of the biggest debtors out there in petrob petrobras. Dont forget about the stock, but also remember the bond mark and what is going on with brazil, the economy overall. I remember russia. I didnt think russia could have impact. Next thing you know, i was on tv talking about russia. I felt very illequipped. I dont want to be ill equipped this time when we talk about petrobras. This is the number one problem in the world right now because it has so much debt. Brazil, the eighth largest economy. People are not talking about it. I think its falling apart. You mentioned volkswagen. An incredible story here. They installed software in their diesel cars, four cylinders, pasatt, so they could fool regulators when they went for emissions tests. Otherwise they were emitting 40 more than they should have been. Again, largest vehicle maker in the world. This is owned by everybody. This is owned without a doubt, these are the adrs thats a stunning deline. What were they fined per car. According to the coverage today, 18 billion at the total max. We have no idea whether the epa would venture there. But its certainly serious. This one of those situations where the Justice Department might be involved . Your guess is as good as mine. Can they ban volkswagen . They have stopped manufacturing those particular automobiles in the u. S. When i heard this initially, no. Thats some sort of flash crash in germany. No. This is a huge company. If what they say played out i know they pretty much admitted it. I dont know how you couldnt think about banning the economy. At least put it on the agenda. You cant lose this company. This is a maimer part of europe. Well have more coverage of this story as we should, given that incredible decline. Not to mention the news itself. Lets put something in there that only kicks in when you put on the emissions meter. Thought it was genius, in the sense of evil genius. Okay. We have more squawk on the street. Join us when we have the opening bell. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. You are watching cnbcs squawk on the street live from the Financial Capital of the world. Busy week ahead. A lot of visitors, chinese president xi coming to the u. S. To talk to Business Leaders and the president. The pope making his way to washington, then new york and philly. Traffic, as we know, will be snarled in those cities. And some macro data. Existing homes today, durables, final gdp on friday. I like this number from lennar in terms of homes. Homes those are the backbone of the recovery. Lennar made you feel that will continue with some good order growth. A nice tone about how theres pent up demand. I also want to say that if they had raised rates, i think that the tone of that call would be far different. The need to focus on rates and main street, not stocks, is important. You have these industries that you dont want to roll over. Lennar, delivery up 16, new orders up 10. Stock is double housing stocks for the year. Stewart miller runs a good shop. There was a downgrade for horton today. Lennar is took advantage of the downturn. They bought a lot of land and now are bringing a lot of projects together. Toll is doing better, i think, than people realize. Not keeping up with lennar, but they industry deserves a breather. They were hit hard. They have done a good job. Doesnt stop deutsche from cutti inting d. R. Horton today. Y at the big board this morning, its diamond hill capital. Over at the nasdaq, the Ovarian Cancer foundation doing the honors. We have upgrades at goldman, paypal, lulu. Lulu is interesting because that last quarter was terrible. Yet the cohort is good. I saw praises for nike, lulu was the outlyer, this is Morgan Stanley saying this is a good business, but they did execute poorly. Energy in the news this morning. Wti up about 2. 5 . Worth mentioning a couple names we have been mentioning. Freeport, of course, sold more stock on friday. Carl icahn increasing his position in that company by another 12 million shares. Dont know if you saw weatherford this morning selling 1 billion. That may be to get them ready for vedivestitures taking place. We see these deals, freeport has to hold the freeport, theres a lot of stock flying out there. Not unlike a company we dont talk nearly enough about, glenn corp, which did a 2. 5 billion deal last week, and its not holding. Not holding. No. Freeport went up a lot when they cup their cap x. They have done a lot of offers. Icahn in there, but its back down to levels it inhabited prior to the run up on the big cap x cut. Almost 9 of the company. Its not as g