Industrial production. Michigan sentiments at the top of the hour. Theres a look at crude back about 47. Our roadmap begins with ge beating the street on earnings, but what about nelson peltz . Companies such as yung, wyn. Alibaba making a multibillion dollar play for china. General electric up 29 cents a share in the Third Quarter held by demand for jet engines and power turbines. Ceo jeff emmeltz said ge performed well. Oil and gas revenues down 16. Power and water up 1, aviation up 5. I like the quarter. Plain and simple. When i see 4 organic growth, thats going to be among the highest of the Big Industrial companies. Its been the best performing industrial so far this year. I think jeff immelt, the transformation is truly happening and it is real. This is obviously Conference Call, we have the date, we have our reports here. I mentioned that because the Goldman Sachs hadnt been on that and the stock jumped 7 points after we talked about it on squawk. Important to mention. Things happen on Conference Calls that move stocks, no doubt about it. This is solid, its clean and ill tell you something, i dont have to look through and wait to hear what ge capital says. Im looking at what ge industrial says and i like what i see. Right. Its very different. There are headlines. The call has begun. Europe appreciably better says immelt. Reconfirms 15 outlook. They have the Synchrony Exchange. When we get back to 11 days ago the bullish outlook from nelson peltz, they say this is a transformation thats being ignored. Thats yet another part of it. The Synchrony Exchange will happen next week. Theyll return 30 billion to shareholders. Synchrony already public. Share count will be reduced by 6 to 7 . Talk about the allyson deal closing in a few weeks. Oil and gas, remember, oil and gas in china only 19 of the company. I question whether oil and gas we wont look back maybe theyre premature. Just this european theme is resonating throughout the earnings quarter which its better and i think thats really important because europe is 717 million people. A lot of us, we get a little concerned about china, but this europe is beginning to become an under current of positive in some of the industrials. Its been going on now since the earnings season began and ge is, i think, front and center telling you you cant have 4 Revenue Growth without yeah, for every deflationary, you know, price metric or zed w decline, september up 9. 8. Thats 25 straight gains. Its very strong. Now the auto sales, by the way, there was a Conference Call, sometimes you have to really dig down, ppg, fabulous Conference Call, china auto, this he have actual read of china auto because they do the codings for all the high end cars. October very good. Europe, better for ppg. I just like it because codings are so instantaneous. You get the information. I felt again, heartened. Autos are strong not just here but theyre getting stronger in europe and theyre coming back in china. They cut a surcharge, a tax on small engines there. Right. But i am getting more, yes, sa sanguine. Were going to be talking dmien in a moment. Mention on ge, this is the first opportunity that immelt will have to comment on the trion investment if he choose toz do so. In particular, while its all coombaya between these two, they did ask them to increase leverage by 20 billion remember in terms of increase one turn of leverage and consider increase in the buy back in a significant way and consider alternative structures to continue to reduce the size of ge capitals Balance Sheet over time. There were some asks from trian that we havent heard ge respond to. I dont know that it will be asked on the call. I want to put that out there as something that we might hear about. I think the stocks a buy, but obviously its on the run. It was interesting that this is another one of these stories of this quarter. The numbers come out and people are chatting about weaker revenues. The revenues were fine. This is that kind of premarket chatter that is just faking out people left and right. This is about organic Revenue Growth. It was much stronger than a lot of people thought. Its about margin improvement which was really rather dramatic. I dont know how nelson is going to get more margin, but maybe he can do it. Its a good quarter and its a clean quarter. Ill tell you what, some of these names on the dow, ge year to date, theyre almost 13 . Mcdonalds 12. We were not saying this in the summer by any stretch. Ive been saying that easterbrook, i dont want to call him a miracle worker, how about a person who knew how to turn around europe and is turning around the u. S. I dont know what mcdonalds numbers are going to be. Hes talking about real estate. These are ceos who are very focused. A young ceo may be focused soon. Hes going to be focused on this. They have no idea what theyre actually focused on. No. Theyre not in focus. Theyve got to be big picture watching it go all over the map. Mcdonalds, easterbrook, ive wanted him to come on very badly. Very talented man. Hes from the cant be take no prisoners school. Meantime, a number of Companies Reporting concerns about china this week, including wyn, yum, necessarily and hugo boss. See what steve nguywynn had to about mccau as to the impact of government policy on planning for employment, promotion, hiring and compensation. None of us are really clear on what our environment is going to be like going forward, and it makes planning and adjusting almost a mystical process. Quite the Conference Call last night. Theres a look at wynn down today for the month down for october, 39 gain, even 86 cents meets and the forecast disappoints. People thought that junkets were going to come back. Ive got to tell you. Im watching, im watching the mets, congratulations. Thank you. Im watching some of that insane falcon game. I thought this was entertaining. Then i listened to the wynn call. My favorite line for steve, this has been the most satisfying quarterly phone call weve ever had but at least its the most candid and the most honest one that we could possibly give everybody. This call is an indictment of the party. Its an indictment of the way mccau is run. Chinese peoples party. Yeah. When i call the party, im he not talking about the party im hosting tonight. Yeah. Private, by the way, so dont you dare crash it. I was thinking about it. Whats real interesting about this is hes saying, listen, theres a lot of corruption in china. President xi is cracking down. Were not allowed to have as many tables as we thought. We cant prepare if we dont know how many tables and the tables, as he called them, the Cash Register is the casino. He wants to build people and put people to work. Steve wynn is a Great American capitalist. The Chinese Capitalist Party ought to get back into the game and talk to steve because steve is a businessman. Were aware of the crackdown on corruption and on ostentatious displays of wet both of which have hit mccau. Yes. In the call, if you had any idea how many years hes been in the business, steve wynn, in my 45 years of experience. In my 45 years of experience. In my 45 years of experience ive never seen anything like this before. He says it over and over again in this call. Congrats on 45 years, steve. I told you the call was entertaining. It is. I was reading it this morning and very much enjoying every minute of it. Frustrated man. Im going say this for steve. I dont want to embarrass him. Youve talked to people who work for wynn. You have a health issue, steve wynns there. He talks about talking with employees. It is not gloss. Hes not dross. Hes real. Hes real. In his 45 years people love steve wynn. Love steve wynn. Do they love yum brands . Corvex owns part of it. China is the key. Jim, they provided an updated outlook for full year China Division. Theyre going to start reporting same store sales for the next few months in china. Theyre going to start telling us. It continues to be difficult to forecast through the ongoing volatility. They now see the China Division same store sales could range from flat to up 4 although pizza huts going to be down, f kfc is seen up. We will release sales on november 12th. People will say theres going to be a restructuring. Steve says its going to come before december 10th, china spin. A china spin of a company that you dont really want reminds me of the occidental spin of the california assets. Its not what we want. You want a spin of something you want. You know, kimmors. You dont want that. Cc given to you by dd. You dont want that. No, that was an ff. It was an ff . Yeah. Grade. Got it. Double f. Double f. You know, china overalthough, because nestle also is talking about china, i did note yesterday on the Conference Call from blackstone which controls a lot of real estate in china, particularly malls, these comments from steven schwartzman, the companys ceo. He said, while chinas definitely growing, still growing faster than the rest of the world and certainly faster than the doomsday scenarios that i sometimes see on television. Come on, man. Our chinese shopping malls, which will shock you, are reporting samestore sales growth in the area of 15 to 16 . Global recession, go figure. This is yesterdays call after blackstone reported. Nike, very strong. Do you really need new jordans . 30th year. Do you still need new jordans . Do you need to pay 5 for a triple cappuccino . No. Apple is strong. The ppg comments about autos. The benz numbers . The bmw numbers . 40 with populations over a million. That is the best of times for a consumer and the worst of times for industrial. Yeah, were going to watch that one. The auto sales you mentioned and others. Feranos under scrutiny regarding the lab tests. And then danny meyer eliminating tipping. Hell join be us to discuss that decision and what it could mean for the future of dining and payments in this country. Take another look at the premarket. More squawk in a moment. Getting Industrial Production here. Lets get to Rick Santelli in chicago. Rick . Ill tell you what, when we see Industrial Production, its down. 2. That is as expected, indeed, it is. Heres the interesting part. This means six out of eight turns into seven out of nine. Negative. This is september read. Nine reads. Seven out of nine are negative. Now if we look at last month, it did have a subtle revision from down. 4 to down. 1, but thats still a minus sign. On the utilization side we did see something a little bit better than expectations. 77. 5. 77 1 2 . Its about. 2 of 1 better than the expectation which matches the upward revision also of. 2 of last month which turns into 77. 8. So we want to continue to monitor the tenyear note. Down seven beeps on the week but lightly above 2 . David faber, 100 to your favorite charity. The cubs sweep the mets sweep . Sweep . Were going to bet. 100 bucks to your favorite charity. I know you will and im crazy enough to offer it. I love you for that. Yeah, listen, theyre going to be tough. If they win, im rooting for them all the way. I wish it wasnt the cubs, rick, i really do. Obviously. David, youre a lot younger than i am, but 69 ruined my 13th year on this planet and we are out for revenge. There you go. Only been 108 years. Maybe a little more. Its only been 29 years since weve won a world series. I take that. I take that all the way. Thank you. Lets get back some of our stories this morning as well. Alibaba offers to buy the remainder of chinese Video Service youku that it doesnt already own. Alibaba already owns 18. 3 of youku. It bought it at a higher level. In sort of the 30 land. It does say the Digital Entertainment company will be core to its strategy of promoting consumption of virtual goods and services. Interesting deal. They already have the support of youkus ceo. Hes on board. So theyre at about a 60 vote where they need 67 support. So this deal is more or less going to happen. It is still subject to due diligence, of course. 26. 60 is the price. Youku is the youtube of china. It isnt as though there isnt competition of buy dou has a digital platform, ten cent has a platform. Consumption of video on mobile devices is around the planet, certainly in china, is exploding. You dont have as many movie theaters. You dont have as many people going to all of those things. You can imagine essentially why alibaba wants in. Theyve talked many times in our interviews about the fact that people spend a lot of time on the platform, not just shopping but other things as well says jack ma. This gives them an opportunity to stay on the platform. Very unusual that a ceo issues a mia culpa letter saying hes going to do better. Youre talking about the barons story and the stocks performance since then . Yeah, and gentleman mas lett jack mas letter is very important. Steve wynn was hoping they would have more tables in order to be able to take advantage of that. I do think the consumer is making a turn in china. We dont have the kind of numbers that we get here, but this is more anecdotal. But eventually it will be empirical. Well all realize that china turned for the consumer in late september when it looked like that the stock market stopped going down. Notice, the stock market actually, the last week of august was when you begin to get the turn. Anybody who got in before january has done quite well, and they can cash out. This china stock market, i dont know if you watch it. Its like the mets. Its not quitting. Its not quitting. Theres no quit. Analogize to the mets constantly. Everything is a mets metaphor. I appreciate that. Good morning. Great night, too. Thank you for keeping it going. Your point about you said they were resolute about maintaining 3,000, which they did. Yes. They just didnt let it go through. The party had more divisions than the short sellers. The party made the communist party, not the majam pajama par. All of us laughed. Real buyers have started to come in. The valuations is very hard to understand. I did a big report. The pes are unclear. The fact is it could be down tomorrow, but right now the shanghai comp is 300 points, almost 400 points above the level and its held there. Right. I think thats emboldening people. I think volume is way down, right . They dont have the level of participation. Its kind of a thermometer. It doesnt reflect. A lot of people came in, five accounts per person. The fact is there is something to be said that late september was a turn. Ppg again confirming codings. Now we have alibaba numbers a little bit better. Nike numbers got better. The apple numbers got better. At what point do we say that kfc is an outlier. I think Kentucky Fried Chicken is an outlier. All of those conundrums. Whatever happened to the chinese selloff of treasuries. That hasnt been the story. It has an impact even if they arent selling. Now its happening. Coppers turned a little. The freight keeps going down. No bottom in iron ore they keep overproducing. The Copper Market has pulled back a little bit because of freeport. I have to tell you that its the industrial side, if you look at the steel side, no. The industrial side is bad. Chinese export number, absolutely critical. I thought it was okay. The import number, bad because theyre not bringing the stuff in. The export numbers showed me a sign of health. People say how can you get that read through . I talk to any company doing business in china and they just say it got positive at the end of september. Got positive. Got it. Except for steve wynn because of the table restrictions and kfc, because its fattening. I dont know. Have you had the stuff lately . We will get mad dash with jim after a break. Dont go away. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Why pause to take a pill when a moment spontaneously turns romantic . And why stop what youre doing to find a bathroom . 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There it is. Some music. A mad dash for a friday. Were going to go to again, usual caveat. Trying to get the bits and pieces when you talk about a Conference Call. A really thorough release. I regard these guys as the single best company in oil and gas. Everybody knows it, fantastic. Give you a glossary. Slumbers a lowered the boom saying however for World Services the Market Outlook for the incoming quarter looks increasingly challenging. They expect activity to further reduce confirming jeff immelt, 10 to 15 down for oil and gas next year. Its not done. Whats the read through for oil and gas. If you get more and more shutter, then your price will start going higher. Carizo, crzo, second done unbelievably in the hole. If you take a look at the concho secondary at 92, went to 116 immediately. The read through fo