Above 44. Jobless claims, below 300,000. Yellen expected to make her first public speech after that big september fed meeting. Continuing of that major shakeup at volkswagen as martin winterman resigns. Microsoft with a big deal and a 38 billion commitment with boeing. Pope francis has departed for the u. S. Capital where the pontiff is scheduled to address a joint meeting of congress in about an hour. Pope francis expected to speak on a number of topics during yesterdays remarks at the white house. He spoke about Climate Change, im immigration and ledgeus liberty. He will be the first pope to address congress in this fashion. Boy, is he different. I have had the privilege of having an audience with the pope two weeks ago in the vatican s he is revolutionary in his own, quiet, reserved way. The one thing i would point out about this pope was that i was at rome. He went to go buy eyeglasses by himself. He has made the vatican accessible to everyone. This immigration is going to be front and center. This is the only boom buster i know. Cant wait to hear what he has to say. He is quite exciting. He is the most youthful, mid 70yearold i have ever seen. Looks nowhere near 78. You are right about the humble way he has chosen to live. Pope john paul and benedict had customized cabins. He insists on flying on a standard row. When you are in the vatican and you talk to the people who work there and it is revolution papa. He is the worlds papa. I think it is a very joyous event that he is here. Some in that body will disagree with his views on Climate Change. Do we expect he will address them on that as sfwhel do we have any idea . I would expect and assume he would bring it up. He is wideranging an youthful in his thinking. I think this is one of the issues that has captured people who are younger. He ignites the hope of young people. This is a unique man. He did and has addressed the remarks at the white house yesterday calling Climate Change a problem which can no longer be left to a future generation. Cited dr. King, we have defaulted on a prom sorry note to our future generation. There might be some in congress who might be a little uncomfortable. He is headlines and there is probably a rearguard action. Obviously, im not close to the church. When you listen to him speak, he is someone who is very much to the people. He is talking about embracing issues. Senator Mitch Mcconnell will have a different view than he does on Climate Change . Im sure. He does it with a smile. Well keep our eye on that as we watch the pope make his way to the capital. He will meet with speaker boehner. He has tweeted how excited he is. Former altar boy he is. He will go out on the speakers balcony and wave to essentially 30,000 people to get a glimpse of his pope. I cannot recall a time when my hometown, philadelphia, has been more energized about a visit. Caterpillar, 5,000 cutting their revenue outlook for 2015. You were looking at the rolling sales from a couple of days ago. When you see this, you no he that the company is addressing what is a very slow roll. A lot of the businesses, i dont know. Caterpillar has actually held up better than a lot of the other companies in the industry. Some people are waiting for this to happen. I dont know how you can address their challenges other than to have more layoffs. I think they are a precursor to more layoffs because of the strong dollar. A total possible of more than 10,000. Once fully implemented, it will begin in late 2015 says caterpillar. Your heard the workforce reduction that carl just detailed from them. They are talking about revenues being about 1 billion lower than previous outlooks for 2015 from 49 to now what is 48 billion and then for 2016, sales and revenue is expected to be about 5 below 2015. A 48 billion revenue estimate. Taking the costs out of the business. They feel they need to, jim, as weve seen in any number of different areas when it comes to these commodityrelated companies, whether it be freeport, which comes to mind. Then, the commodity route across the board and what that has been doing to any number of countries and companies, i know, has been in the forefront for you, whether it is glen core of late or petra which you brought up the other day as well. Very concerning. I think the world challenges have him doing everything he can to get ahead of this. Deet klein, even in cole, the machines are used for coal and i oil and residential and nonresidential. I dont know who could run the company and not take these actions. Caterpillar has taken them in time to raise the franchise. You will see deere down. A reason why the dow should be down. The market share has improved in a lot of products. Product quality, as good as if has been in the companys history. To put the revenue guidance into some perspective, 2016 would mark the first time that sales and revenues have decleesed four years in a row in the companys 9 90year history. They have never had four years down on revenue. It is interesting to put that in a press phase. Why dont you highlight that . Because they are a very honest, open company. They have struggled because of the mix of business but he has never hidden it. A rather sudden recognition of some things that have been going on at a lot of different companies. Mining, oil and gas. Construction has not been as bad. They are not referred to cereal or restaurants. The food business has been good. They are levered to a lot of bad markets. In china, this is a china plague atlarge. We should put these things in some sort of longer theme. The pope is talking about Global Warming and Climate Change. Caterpillar needs coal to get rei r reignited. So much starts and ends in china. It is not just about coal but the copper miners that arent ordering as much and dont dont have the equipment, the oil and company companies. This is all part and parcel of the same slowdown that we have been talking about for some time that we are seeing in the commoditys complex. The glut and copper. Goldman coming out with some reasonably negative numbers about it. When you dont have credit, your not going to buy a lot of the machines. Look at joy global. That has been down much more than cat. The next thing people are going to say is that that dividend cant hold up. You are gng to see that in space. They are talking those things saying maybe it is not enough. They have already made. That stock down another 7. 5. This has been going on for so long. It is finally hitting the companies. The rollover has been multiyear. They peaked in 2008. Caterpillar provides an economic skrout look in their Third Quarter financial release. This is earlier than that. Why have you done that earlier than normal . You cant pick up a paper without reading about some commodity that is in decline. Caterpillar, if they are having problems, you can only imagine who else is out there. Just struggling. Copper is not freefall. It is not being used as much. You can offset this with boeing. Aerospace is good. Iron ore. Back to brazil and baly. Iron ore, you could get hit by that. 30 of china is power grid,which is likely to go down. When you go over lennars quarter, they use a lot of these materials but dont gain enough. The users dont gain enough to offset what the producers are doing. Even though hoil is held at the 44 level, they are not able to do projects. When you look at the heavy oil sands, thats about caterpillar. A thats a lot of people they are laying off. As much as 10,000 stretching into 2016. Four years. It is almost as if this company is just really starting to feel the great recession. They had credit freezeup like every other company. I think people are going to talk about caterpillar fip nance. That doesnt mean you want to buy the stock. Do not want to buy the stock. I can tell you, this is devastating to the complex. Well really justify why our futures are down so much. As of last year, 522,000. Caterpillar is not afraid to take action. A lot to get to that we v ha not gotten to yet. Another look at the premarket. More weakness on the caterpillar news that we will get to when squawk on the street comes right back. Im here at the Td Ameritrade trader offices. Ahh. Steve, other than making me move stuff, what are you working 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. Japan opened for the first time in a few days. Caterpillar, layoffs up to 10 people. Revenue will shrink for the fourth year in a row, something that has not happened in the companys 90year history. New developments regarding the volkswagen cheating schedule. S p putting the automaker on credit watch negative. They are reporting they will fire people responsible for rigging those emission tests and they may announce their pick for ceo tomorrow. A report in a german magazine that bmw is now upped some scrutiny. The Company Denies it tries to calculate or gain a mission. This is spreading. I know a lot of this is when you do the emissions testing on the road which shows different results. Volkswagen has rebounded and come back. Volkswagens problems are going to benefit other companies. I think we are being too gloomy about that possibility. I do not think that everyone. This is a very wellknown test that was done and was discovered. We talked about it the other day by the university. I will tell you this when i pulled up with some very talented lawyers in the last few days about volkswagen. What did they say . There is no defense. Criminal prosecution is expected. A possibility of them being shut down. Everything is on the line. 70 of that economy is autorelated. I have talked with some really great defense lawyers, nothing. I have actually tried to do the same. What would you advise them to do . Much of it comes down to almost fall on your sword. We were being a little facetious, throw people over. They may have to throw over a huge number of people to be able to keep this company from being banned. I am fascinated to see where it leads. 11 million automobiles with the software installed. Maybe it is there and can be changed in some fashion that doesnt have to be that many people involved to do it. It is all speculation at this point. How do you go about trying to determine the value for volkswagen as an investor, is a very difficult thing to do. The port family controls it at 51 . The state of lower saxony is at 21 . Cut our own 17 , the sovereign fund. We are not talking about a lot of other investors. That is a great point. We are dealing with a company that has a very stable base. I think they get to the bottom of it. The problem is, we see with the banks, once the Justice Department gets involved. Nobody needs volkswagen. If you are a country that produces cars, you are thrilled. Specially if you have diesel engines. I was trying to put a Silver Lining on things. It is hard to do. Diesel is much bigger than we think. We were pointing out this morning all the challenges merkel faces. A slowing huge partner in china. Today, the poe was okay. This setup wasnt that bad going into this caterpillar situation. The volkswagen. I just think that if youre toyota, you could make a case they are going to be a big market share pickup. No one wants to make that case. Deutsche bank hitting a 52week low. Why . Germany. Etf from germany pulling everything down. There is the pope. A live shot of pope francis with the speaker, boehner, who was just talking to some reporters a moment ago talking about the scheduling saying it is boehner time, which is on time. Im always on time. It looks like we are closer to schedule than we were with the popes early schedule yesterday. They are going to meet for a little bit in the ceremonial office. At around 10 00 a. M. , they will enter the house chamber, shake hands as the president does before he begins his joint address to congress. He will speak in english and we expect it to be around 30 minutes in a tongue he has admitted is difficult for him. And the audience we had. They translated it into every language. I have to tell you to have the audience get the tickets. They were talking about the previous show. Maybe im just trying to be positive about something. It is a good thing to be positive about. You will find other things. Its a long day. Will we . Hope springs eternal, my friend. I like that. Man, do we ever need to hear that. How about instagram has 400 million. There you go. All Six Companies that were reported, all six were better than expected. All stocks were down. Thats bear market. I know im supposed to be the cheerleader of the man involved in the Federal Reserve from st. Louis. Football not that good this year. Six companies that reported great numbers. It doesnt matter right now. When we see caterpillar report a bad number. Very unsavory. Very unsavory. Did you see the pictures with our executives in china . Here is something positive for the habberdashery industry. Basis had a tie. This is so good for van heusen and pvh. I into you would find something. Im struggling here. Well give you 2 30 to think of more. Well get cramers mad dash and the opening bell in just a minute. When youre not confident you have complete visibility into your business, it can quickly become the only thing you think about. Thats where at t can help. At ts Innovative Solutions connect machines and people. To keep your internet of things insync, in realtime. Leaving you free to focus on what matters most. Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management isnt reactive. Its active. Thats the power of active management. We have the s p down 5. 8. Not good news. One of my favorite analyst is judy hong. She talks about monster being bad. They switched their Distribution System to cocacola. I know when i was over there, they asked me, cocacola germany, they have improved their distribution business. She is saying, this company, now that it is linked with the european distribution, cocacola, could have very good up side. It goes from 160 to 165. Maybe a 5 billion tender in 2016. Maybe they can take it back. Thats my own view. Watch this stock as the one. If you think there could be any turn today, this will turn first. It has already had a very good year. This distribution switch, the Cocacola Bottling Company is considered to be the premier Bottling Company in europe. We are going to see if the Ripple Effect as the opening bell comes near. Stay with us. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . The opening bell in just under 60 seconds. It is raining news whether it is the pope in washington, can chinese president xi making his way to washington, yellen, caterpillar layoffs, going to open at its lowest level since august of 2010. Remember when it used to have the second biggest waiting in the dow. This used to be a superstar of the dow. The world has changed. We are not as much a manufacturing economy. We asked about other Companies Going to be heard from, united rentals, joy. Dont forget, vhp. Bella. They are all sinlgle. Their market continues to get worse. Iron ore, it just doesnt matter. The selling continues in europe. We said before, the dax down almost 8 now. There is the opening bell. A look at the s p at the bottom of your screen here. Pharmaceuticals ringing the bell over at nasdaq. Norton ab, bank for investments and savings bringing the opening bell there. Caterpillar has to top the list of stocks. It has a 99 what looks like a reduction in problems for hepatitis b. We look at homes, the lennar quarter was perfect. It didnt matter. That went down. Bear Market Action meaning, look, it doesnt matter how good the companies are and what they are reporting. I remember the infrastructure should all be down. Cbi. It seems to be a little kinder to caterpillar than they have been in the past. Lets not forget the bucyrus deal. We brought it up any number of times. It is not necessarily indicative. It is not about one thing and not necessarily about a deal. Nonetheless, they did buy that thing right at the top. They did. They made a chinese acquisition that was not good. In the end, the stock has held up better than the others in the sector. The stock is down 30 . A major company. You cant own it. I am sure that people are going to be talking about the dividend. Am i kinder . In the end, what would you do . You cant suddenly start making products that work for data centers. Thinking about something that is an infrastructure that is levered well. That puts me in mind of Hp Enterprises that says it will cut 30,000 jobs. Back to the big debate about the fed when you have all this going on. I told him his comments were spot on. He asked me, you think that rates should raise. Enough. I cant take it anymore. I had too maniy people come on. Look at brazil. Brazil is teetering. Recognize that europe is a nation and that china, china is bad. There are some articles. Cnbc had articles with a chai into conmer pole. Can you all hide in general mills. I am saying, i feel like, you know what, remember when we were growing up and they had little prizes in the cereal box. I feel like a little prize in the cereal box this morning. All the losers surrounding caterpillar are in that space. Joy global, united rentals, deere, borgwarner had some exposure to volkswagen. Cummins is worth talking about. Who has been able to crack china . Caterpillar, cummins, the engines with the least pollution. Talk to cummins. They have great formulation. Parkeranderson does hydraulics. Thats going lower. People arent looking at the good part, aerospace or defense. They are looking at the worst part. In a bear market, we take our cue from everything back. Gm, you want to own that . How about fiat . Fiat is a