Crude that was the story yesterday. Look at that. You were just at 50. We were just pushing 50. You saw the latest caseshiller home prices, they were just released at the bottom of the screen. San francisco, denver, portland have the biggest home price gains. Lets get to our road map this morning. Earnings, earnings, earnings. Alibaba higher in premarket after profits and revenue beat expectations. Yahoo goes up when alibaba goes up. Mixed results in from dupont, ford and u. P. S. The cfos of u. P. S. Will be up later in the show to give us more insight. Pfizer, merck, bristolmyers all beating consensus and boosting fullyear guidance. Take a closer look at pfizer. Those were particularly good numbers. Lets start off with alibaba, up sharply in premarket. Posting better than Third Quarter results. Revenue up 32 . Strong growth across the board, particularly in mobile. Yahoo owns stake in alibaba, it will be putting that in a separate company, hence it goes up, almost as much as alibaba because its core business is worth virtually nothing. It will be interesting, when the stake is sold or put into the new company and you see what yahoo is worth. I know. Including even yahoo japan. It may be worth more to someone else than them if they fail to monetize what they got. Whether its tumblr, what they did this sunday, which people are mixed about. The nfl. Right. What they may have in terms of search. Theyre not a totally lame company. Its just that when you back it out not much going on. Not much going on. The last quarter from yahoo did not do a great deal to engender confidence. Not a lot to write home about with yahoo so much to write home about with alibaba. Tell me. The merchandise value on mobile, 62 , the adoption mobile accounted for 62 of their gross merchandise value. Thats been moving up every quarter. It accelerated. 28 year over year just for revenue. I think its hard to read through anything other than the Chinese Consumer is back. I really think so. This is an amazingly strong number. David, they cut theyre a good referendum on how the Chinese Consumer is doing. They are certainly as good a referendum as we will get. They also increased their presence in 4,000 additional rural villages where they provide purchasing and delivery service. Y yes, they are. Covering that massive country. Imagine how many drones they would need . A fleet of drones. Like star wars. Yes, it conceivably would. Monthly average users, 386 million, jim. Unbelievable. The take rate goes down as you switch from desktop to mobile, fewer people, as we know, think of advertising and all that the form function is harder. But its stabilizing. Yes. How about cloud . Cloud revenue 128 growth. I know its not a big number, but we know when you look at these companies, we just think about amazon cloud revenue, its darn good. It is. It is. What a great quarter. They also bought back a lot of stock. 2. 74 billion. They just put that repurchase in place, 4 billion over two years. In the September Quarter they both bought 60 of that. Jack ma, i have to say, its rare that you see a guy issue a mea culpa letter and you had to buy it that day. Im sorry, ill do better. He did. Man of his word. They bought back a lot of stock. Since the im sorry, my computer keep going dim here. Thats okay. This is what i have to spend the time doing. Since the barrons article, the stock is up dramatically. Look, i got to tell you this is a company that is a very competitive company, and it is not waiting for the Chinese Consumer to turn around. Yet the consumer is turning around, which is double whammy to the positive. The international is not bad. Tomorrow when apple reports, positive commentary on china from them . Yes. I would say we i say own apple, dont trade it. Dialogue yesterday, the Small Semiconductor Company that rippled through avago, therefore apple, people are saying, look, theres going to be a dramatic slowdown in the apple build for phones because of dialogue. I think you want to counter that by saying, wait a second. If alibaba is right, the Chinese Consumer is strong. So therefore you may not want to read through that apple sales are that bad. I think tim tooks interview this morning in the journal about the things in the apple pipe is saying can we stop doing this as a one trick pony . Do we have to look at this as only the 19 growth in china . I dont know. Theyre trying to build a stronger case for recurring revenues away from phone. Thats one of the reasons why with the multiple so slow you shouldnt sell it here. We will talk more about apple later. Lets get to some industrials reporting this morning. Duponts Third Quarter operating profit came in better than expected. Revenues missed. It was hurt by a stronger dollar, weakness in its agriculture business. Fords Third Quarter earnings were shy of the consensus. Revenues ahead of consensus. The revenuemaker says it had its best quarter ever. U. P. S. Beat expectations on the bottom line, earnings. Quarterly r lly revenue missed,s because of fuel surcharge revenues. Only up 1. 9 , operating profit declined domestically . Not what i was looking for. You can read through fuel, but still these are numbers that are just that shows you the u. S. Slowed. The durable we lump in the durable goods numbers, we could make a case that Industrial America is in a recession. Did you just use the r word . Look at the cummings statement. Look at oil and gas. What accounts for that . Strong dollar. Strong dollar in energy. Boeing, if you smooth the orders out, you wont feel that. I look at the dupont numbers. The dupont number is quite bad. It doesnt matter because dupont is in flux, breen theres stuff for breen to work with. I dont think im picking up on something Steve Liesman talked about, the industrial recession that he hears chatter about. Housing was not so good. New housing numbers yesterday were not so good. Autos still good. Domestic number ford, a lot of people attributing the decline in ford to asia. Youre getting the down side of lower oil, youre not getting the upside of Consumer Spending because back to School Season turned out to be terrible. The post back to School Season for department stores, abysmal. Where is the consumer . Where is the Industrial Orders . Cummin cummings commentary is so down. Theyre very good, very read through company. I have to quote it, its so bad. Please. We are take ilking difficult actions to lower costs. Firing people. Markets have been weak for some time and are worsening, industry orders, key end markets brazil and china multiyear lows. I mean, theres some real negative news out there. Some cross currents. Yes. I like to use that word. If youre at merck, pfizer, bristolmyers, youre saying where is my bonus. We have to get to those. We will. Theres a lot more to talk about. Oil at 48. 23. What is . Oil. Were importing a lot of oil right now. The natural gas, people are talking about 1. 50 natural gas. I know lets get to those pharmaceuticals. Pfizer, merck, bristolmyers out with earnings and posting better than expected Quarterly Earnings. Pfizer getting a lift from oncology drugs, merck helped by lower costs. Bristolmyers driven by results of its cancer and blood clot medications. All looking up. Pfizer up quite strong. Lets start there. I got some commentary on that. Basically it looks like sales of prevnar were good. They beat because of better revenue. And they beat on gross margin. Stroke drug, terrific. There was a great basketball player who played for the 76ers who recently passed away, moses malone. He talked about when they were on that great team, 83, 84, he kept talking about four, four, four. This is four, four, four. You know what theyre doing it with . Cancer franchise for bristolmyers on fire. Pfizer, unbelievable pain. This lyrica drug is unremarkable. The stroke drug is remarkable. All we ever do is talk about biotech, quietly these guys have built up their franchises. The coe, mr. Reid likes to talk about the tax rate a lot. The fact that hes unfairly penalized by being a u. S. Corporation, as opposed to some of his competitors. Then we talk about mma what they can do to invert. Its a very small window. Its either glaxo or agn. Floss peter parker emails at pfizer. A reference to valeant. Listen to mr. , mr. Reid. Start being proud. Stop talking about inversion. That lyrica drug sun believable. Everybody who knows that drug knows its a miracle drug. Bristolmyers miracle. Mirror caacle. The drugs are unbelievable, but the companies are so huge you dont get to see how great theyre doing. Mr. Davis at merck, this is the quarter i was looking for. Always remember the calls. Pfizer at 10 00 a. M. Youre right. But look at where j j is going. Well get more detail then. J j im sorry, kent frazier at merck. Dont know why i said davis. Lilly, you have to circle back to lilly. You have to look at what these guys are doing. Theyre quietly Building Back their franchises. When frazier came out last time, he wasnt happy with the quarter. This diabetes franchise, very strong. So much here. Youre making some big statements. David, the stocks the old Pharma Companies are suddenly getting it right. Reid and frazier, they are not chest pounding enough. Someone has to speak up for them. They were both very good parts of a basketball team. I dont know how bradley awas. Remember when he walked on in the end. Of course i do. Im talking about new york sports teams. Well count down to the republican president ial debate. That airs tomorrow night on cnbc. Well have a live report from the site of the debate. Also ahead, tmobile Ceo John Legere on earnings. He will talk to jim, thats later in squawk alley. A rare squawk alley appearance for cramer. St. The republican president ial debate airs on cnbc tomorrow night when it comes to the race for the white house numbers indicate an electorate unhappy with all of the president ial candidates. Lets get more from aman javers. Good morning. Good morning, david. A bunch of grumpy cat voters. A lot of dissatisfaction out there. That seems to be propelling the rise of donald trump and ben carson. This is some footage we shot last night. This is the actual debate stage where the debate will take place. You can see the ten podiums up there. Still a lot of candidates in the race that are not named donald trump or ben carson. A new poll out from the new york sometime the and cbs lays out the challenge for the rest of the candidates who will be standing on that stage on the flanks of carson and trump. Ben carson in the lead, 26 , donald trump 22 . This is the first time in months weve seen donald trump fall out of the number one slot. It will be a big blow to his company if that trend line continues. This is just one data point just now. Watch for that to continue. That will be the story line of this week. Why is this happening . Its all of this dissatisfaction in terms of voters and frustration with candidates this time around. Look at this graphic. It shows you a couple of candidates and how upset voters are with their choices. Feelings here, optimistic, Bernie Sanders, 43. Uncertain, pessimistic, 50 . Ben carson, similar picture. 42 optimistic, uncertain and pessimistic, 50 . Hillary clinton also a similar picture. Uncertain and pessimistic for hillary clinton, 56 . She is 13 underwater there. Its a similar picture with the rest of the candidates. Voters not happy. Not settled on a candidate. You look at this poll, which shows ben carson up within the margin of error over donald trump. You get a sense that the voters here have a shallow feeling about all of these candidates. They can move a lot. We will see in this debate whether they move again by the end of the week. Eamon, while we got you, in terms of news, there it is, your money your vote tomorrow night. Give me a quick take on the budget deal that is apparently very close to being done, if not done. Absolutely. Its amazing what can happen in washington when theres a deadline thats real that the political leaders feel. In this case the deadline was the exit of speaker of the house john boehner leaving by the end of this week. Theyll elect a new speaker of the house. Boehner said he wanted to clean the barn and get rid of all the issues that have been dogging the republican majority, such as the debt ceiling, the spending and budget bills. Boehner was focused on getting this thing done before he left. Lo and behold it looks like we have a deal now. Well see the details come out and who is opposed to it. Thats a big one. Doesnt seem to be having much market impact. Thank you, eamon javers. The marketses may have thought this was a done deal already, right . They might have baked into the cake that they would get to something in the last minute. Yeah. We talked about that yesterday, david. We were trying to figure out whether it was baked in. I felt that the market should have been more excited about this. We have a durable goods number that is weaker. I thought it was positive. This could have been the socalled black swan out of nowhere it isnt. People people are caught up in earnings. Earnings are mixed. I agree. If we were dealing with a debt ceiling problem a week from today, it would be a big deal. The conversation would be difficult and dire. Yeah. Its a bullet its missed. Its a bullet that misses. Meantime i think the debate will be interesting in terms of just t the eamon talking about how down everyone is. Were down yet employment down yet theres a lot of good things happening in the domestic economy, in housing, autos. Its trucks, oil and gas, manufacturing where the weakness is. If youre in those industries youre down. In the other industries, not bad. We have so much more to get to, including cramers mad dash. We count you down to the opening bell. Look at futures. Were back on squawk on the street after this. The possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. About six minutes to the opening bell. Marvel wont be marvelous at all today. No. Theyre talking about how western digital, sandisk tie up is not good. The Accounting Firm, pricewaterhouwaterhousecoopers. Im calling out a red flag. I dont blame you. Its typically not a great sign. No. Do we have more information than that . No. Whats interesting is that there was very little short position. No one saw this coming and a lot of people felt this was a takeover target even though it was down a lot because of so much consolidation in the industry. Red flag, my feeling has been accounting regularities equals sell, even here. Even here. Thats the thing, why not a big short position. Theyre already down 35 for the year. We talked about the dichoto y dichotomy, strong colldollar hurting. People say how can this one stay independent . How are they able to be standalone . The answer is because nobody wants them. All right. Thats always good for about 20 in a stock when your Accounting Firm says over and out. Its we havent had this in a long time. No. We have the opening bell about 4 1 2 minutes away on squawk on the street and a lot more to get to. Stay with us. Hello, ken jennings. I havent seen you since that tv quiz show. Hello, watson. You can see now . I can recognize people, analyze images and watch movies. Well i wrote a few books, did a speaking tour, i. Ive been helping people plan for retirement. And i help doctors identify cancer treatments. Is that all . I recently learned japanese. Yeah, i was being sarcastic. I havent learned sarcasm yet. I can help with that. 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. Youre watching cnbcs squawk on the streets is, live from the Financial Capital of the world. The opening bell will ring in about a minute and a half from now. Whenever its the two of us its not that often i get to turn to you and relive my youth and relive some of your youth and ask you, what is the key to this market . You wont want it . Give it to me. Its still valeant. Why . Because you cant have the drug stocks go up until this thing is off the agenda. Because people want drug consolidation. They want it so badly that forget about earnings. Im getting out the old valeant file here. Quickly looking. I have so many different notes on this thing. Well see if it stabilizes. Theyll have an awfully long road back. I think its fair to say you have a board that signed off on a 10q the other day. I said the other day i dont think its fraud. Just a lot of questions about the business model, the earnings power and their ability to get back to following that model that enabled them to do acquisition after acquisition in part because of a stock price. They did do acquisitions for cash as we. Yes, they did. The Health Care Segment wanted to get to hca, that segment has been down. Thats a huge part of this market. We need to see them. I guess i would talk about cummins, if we were a great manufacturing country again. Valeant is important. Amgen just had good news about a phase two heart failure. It has to do will valeant buy this guy or that guy. Not buying anything for a long time. Look at that celebration there. You heard the opening bell. You saw the s p 500 realtime exchange at hq. At the big board, it was gold corp doing the honors. Our friend, john legere there, all those is it purple or pink . Pink. Pink. Magenta. I think he will have to answer some questions about churn. Lets look at tmus. The stock first time in a while i can remember them reporting a quarter where you didnt go whew. They have a 3. 6 churn, i got a 1. 33 churn. This is moving from one guy to another guy. We have a 1. 46. At t and verizon are probably thinking how do we tell the story, because people dont know how to tell the story. John, hes still got the ads. Hes adding people left and right that does matter. Ebita margin, up 600 basis i think people are look at earnings per share. 15 cent people are looking for 30 cents. A lot of asterics at t doing better than people think. At t is not about going out and buying a dish,