Europe. Chicago pmi in 45 minutes. Sales beat for starbucks, comps up 8 . Stock is down in afterhours and is clawing back. Valeant makes another controversial decision and is cutting ties with philidor. Monitoring bill ackmans Conference Call. And linkedin and expedia, both stocks spiking. Well hear from both ceos late their morning. Data shows consumer spenting rose only 0. 1 in september. Bo bo stocks are on track to extend that weekly winning streak to five and post the best month in four years. Best dow names . Dupont, followed by microsoft, followed by ge. Okay. Lets talk about those. Ge, the execution, getting out of financial. Dupont, that is breen, going to break up the company. These are very, very important. Also both large trian positions. Trian has nelson peltz has made a lot of good pushes. Done a lot of good things. I think breen, without peltz on the board, will follow peltz game plan. Even though dupont had a miserable quarter, ed breen issued by any means necessary a malcolm x phrase im aware of that. You like to use that. Draghi used it. Draghi used it. He did. I dont know that he knew the origin of the phrase. Back to breen. Breen is going to be ceo. These Oil Companies, chevron they have chevron that was incredible how good that quarter was. Like the royals. You had go there . 2 49 . They were like the patriots. Yes. Patriots. I wish the nfl never had fined i will remember this moment. I was out of line with that. 100 days to super bowl. You mentioned chevron, 1 09 beats 76. Exxon, 1 01 beats 89. Chemicals downstream making up for everything else. Marathon cut the dividend yesterday. Rather big cut what did they do . They split up between refining and marketing. The combination made sense. Chevron made so much money in refining and marketing. This model works for them. Chevron was able do what i wait for some to do, just shut the tap off. Boom boom cut out billions of dollars in spending. Oil should be going up on these quarters unless you think iran iran is important. These guys shut the tap. Except the wall street journal has a story quoting a lot of different management at Oil Companies saying they dont see 60 bucks as logical proposition for the next year. A 30 scenario is not going to happen. I think oil is correctly priced between 45 and 50. Last year, chevron, 90 a barrel. We know world growth is slowing. Saudis keep pumping. Saudis are fracking now. I didnt know that. Its pennies. You havent heard this story yet. I didnt mean to break this story here. Ive been working on this for months. Tell us. They have possibly another 200 billion barrels if they use the modern fracking technique that a company that i follow i dont want to say which one. But it is its historic. The amount that saudi arabia can pump is far greater than they realized. Why are you looking at me. Im thinking about saudi arabia and money they can spend on things that are not necessarily in the interest of our country. Theyre at war with yemen. You could argue theyre the good guys. You could also make a lot of other arguments. Its not the time. I already went to the royals with you. I dont want go to the saudis. Youll completely trash me. At the same time, names like eden and colgatepalmolive where the dollar and eden says the majority of our markets experienced weaker conditions guiding guiding 1. 05 to 1. 15. I will say this, it must have been raining on edens side of the street. Kmart blamed the weather. Ge is in a lot of those markets. Emerson, theres a havehave not in the industrials thats happening that we have not seen in some time. W who is on the have side snchblgt. Ge, honeywell, boeing. All on the have side. This Defense Budget will skyrocket. You know, you dont see either party wanting to cut defense in the time when the adventurism is by russia, iran. By china, this chinese navy. We dont talk about it enough. I have we dont ever talk about the chinese navy. No. Tell me about it. Youre in a quizzical mood. Its friday. Its been an interesting month, which we are going over. The performance of the s p. Read ghost fleet well have a change of heart. Dont leave me hanging, what about the chinese navy . The chinese navy, theres not going to be a showdown, but the chinese navy is becoming ive never seen china in this much of a imperialistic mode. I think our navy will have to respond. There are key shipping lanes that are not going to be should not be challenged. Look out for this defense. How does Lockheed Martin barely go down when Northrop Grumman won the biggest contract ever. Were still using b52s, and thats not a signing group. This defense story will be the story for 2016. Starbucks posting Quarterly Earnings in line, revenues and comps in forecast. But the holiday forecast is below consensus. We will talk to Howard Schultz later this hour. 40 to 45, estimates 47. Comps up 8, china comps up 6. Starbucks will be up big. That story about what they guided versus the truth is wrong. Well prove that. The guide was so far up i questioned whether howard should have gone that high. I will. The linearity of the quarter was so great, you will see high Single Digits. A lot of question people about the china number. This stock could end up big today. The headline numbers that sent the stock down to 60, i checked it out. 1 14 in that Conference Call where they basically said, listen, we said Single Digits, were wrong. Were guiding up dramatically. It took my breath away how the engine that 9 comps come in. This was an extraordinary this was the best quarter i have seen starbucks have. You mean relative to expectations . Yes. The best ive seen. Europe is amazing. China is good. Spending a lot of money for mobile ordering. This by far the best quarter ive seen. Markets not treating it that way. The market doesnt know jack. Do you buy these arguments that the tax rate suis unexpectedly low. This is about volume, my starbucks rewards, the taste of drinks, the ability to raise price. The ability to create an experiential situation where you want to go to the door, its about breakfast, lunch, dinner, about the remarkable resurgence in europe, japan, its a clinic. Its a clinic its a clinic. They need starbucks on those Chinese Naval destroyers. Cruisers. You can make fun of me. Im not making fun of you. Youre sharing all sorts of things today. Fraccing ing fracking in audi arasaudi arabi. I was jumping up and down last night. I said in my world this is it. This is how you conduct a Conference Call. An hour and a half Conference Call. An hour and a half of my life. Movie over, i started it over again. This was it this was better than banshee. You probably dont watch that either. Valeant, a few days ago before we left for denver, it was the key to the market. Was it ever. Then we didnt pfizer called Brent Saunders. Wow. Pfizer and allergen, not that we didnt know it was coming you said it 100 times. Give yourselves credit. Valeant looking down again it touched 100 in the premarket, though seems to be above that level now. It announced its terminating its relationship with the Specialty Pharmacy philidor it had put 100 million into that, had an option to buy it for nothing. They said were done. Philidor says it will shut down operations as soon as practical. Valeant shares have taken a hit. Really over the last week, certainly over the last few months. Last week a short seller suggested the company may have fraud fraudly overstated revenue by using that company. Giving detail in terms of the relationship with philidor, for a company that trades at a low multiple to earnings, but even though 5 , 6 of its revenues were going through this Specialty Pharmacy company nonetheless it did contribute to those revenues were important to growth, year over year growth and a number of key medicines, jublea, for example. An argument had been made they did this when they bought medisis. It was a competitive advantage for us to have philidor particularly as related to dermatology products. People are particular about what they put on their skin. No my wife had new york for medisys. This part of the yesterday you had all the pbms cut their ties with philidor saying were no longer going to be backing it. This morning a significant statement. This thing moved along at quite a pace. Is the flash flow real . 7 of their ebita came from this. Is the cash flow real . How do you feel about the cash flow . How do i feel . We were worried. These there are guys who hav work for valeant, two guys on the board, their reputation is tried up in this thing. Mr. Ackman, say what you want about him, hell talk on his Conference Call apparently they didnt start yet because the website crashed. Are you serious . He usually does a good deal of work. Allergen came at them hard trying to find a smoking gun. They didnt do that. They questioned the business practices. David piatt who was running allergen at the time raised some serious questions. Which were all valid does that mean that theres fraud . In other words i dont think so. Thats the most damming phrase you can use. I wont be like citron. Does the quality of the earnings come into question without a doubt . Yes. You throw a bomb you use that word enron. People went to jail for enron. Lets take that off the table. Until, you know i think you have to take it off the table until you have much mofre of a smoking gun. You had pharmaceutical stuff before and people were severely punished, major u. S. Attorneys get involved. On the drug pricing issue, of course which started this selloff in the stock to a certain extent, with the massachusetts aig, new york these are all still civil. Its not criminal. Just subpoenaing documents. Very important to watch. When we come back, linkedin surging on its latest results and guidance. Well hear what the ceo told cnba. The dow and s p barring a disaster today will have the biggest monthly point gains ever. Mo more squawk on the street from post nine in a minute. You like that pretzel . Yea. 50 more data for the same price. I like this metaphor. Oh, its even better with funnel cakes. But very sticky. Get 15 gigs for the price of 10. And now get 300 credit for every line you switch. Now at at t. Shares of linkedin up sharply in the premarket. The professional networking website raised their full year guidance and beat the street with their results with growth in mobile and international. This is what jeff weiner told julia about their advertising business. Our native advertising business is the fastest grandmothering. Will continue to invest there aggressively. In particular we want to focus on driving higher roi for customers. Revenue growing almost 40 . Almost no display ad. This is a great subscription business. I have to tell you, there was a quarter not long ago where i read it over and over. I didnt understand it at all. A lot of people didnt, the stock got sold down. This was Proof Positive of the changes they made. This was a strong secular growth story. I dont like to buy stocks up 11 , but this was a remarkably good quarter and explains that this belongs in the social mobile cloud theme of companies that are having a dramatically good run of things. Reacceleration on all fronts. Amazing thing. Trying to leverage the corporate business. We always talk about mobile. Linkedin, 17 of time spent is on mobile. Facebook is 76. Look, theyll get there. Theres a lot of things going right for linkedin. They also dont have great tailwinds going. China, very strong. There was just remarkable quarter. Most importantly, you realize that a lot of things that were not clear about what they were spending are paying off. Most of these companies have way too much exposure to ads. The way ads work now, people just write a check to google and google sends you ads. To get away from ads is very smart. The main source of revenue is paid by Companies Looking for employees. Right. Its down to 15 . Is it that low . Yeah. Its really impressive. This is a very, very good quarter. Speaking of ads, yahoo today, bob peck at sun trust, wonders whether the board turns the core business over to somebody else and lets marisa handle the spinco. That was a very in his own in a subtle way, bob peck laid out that these guys blew it. I did not see the note. Im curious, handling the spinco. Thats not going to be anything except for alibaba. I dont know what you run when you run that. She doesnt really have a relationship with alibaba. Yeah. She doesnt. No. She did do a good job in terms of i meant the fundamental company. No. No. Youre a large shareholder and its going to trade at a discount to baba shares, this overall company. People should read pecks note. I felt yahoo was worth something. Its a thought out note. When we come back, cramers mad dash and count down to the opening bell. Stay tuned for our exclusive interview with starbucks Howard Schultz. Thats coming up in a few moments. This bale of hay cannot be controlled. When a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. Faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. Thankfully, mary miller banks with chase for business. And with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. Chase for business. So you can own it. Chase for business. Can a a subconscious. Mind . 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 . Oh, its friday. 9 23 30. Six minutes to the opening bell. Where are we headed . A lot of people negative about apparel and retail. They should go listen to the columbia sports wear Conference Call like i did. This stock, you will see this is boots, also columbia a very highend northface is the way i would put it. Northface has highend products, thats vf corp. Vf corp did not have a positive quarter. There was a takeaway that perhaps this highend north face apparel was another division that did not do well. This pcompany is firing on all cylinders. A lot of great clothes. Their fabric can keep you warmer. If youre a technical outdoors person, like some of my family, this is the brand. This shows you you can have double digit momentum globally and by the way a lot of this is you have to order well in advance. The numbers will be good next quarter. Had a strong year already. David, this is about execution, thats one of my themes. Its about having the right product in the stores. About freshness. About offering a technologically positive form of clothing. You use these guys in an extreme situation as my daughter put me in recently when i went mountain climbing with her. Im not a coward. No. Far from it. I have some sorrel boots when i went to davos. The hat . Not the hat. The hat. Thats 20 years ago. I remember it like it was yesterday. Looked like deputy dog. I thought it was the manchurian candidate. It was the conrail meeting in philadelphia. Negative 3. Negative 3, you wear their stuff. Vf corp, maybe we have to find out more about what happened. We have the opening bell a few minutes away. Followed by an exclusive interview with starbucks ceo, Howard Schultz. Youre watching cnbcs squawk on the street, live from the Financial Capital of the world. The opening bell in a minute and a half. As we close out the month of october. A lot of news from around the world. Boj holds steady, even though they bring dont inflation outlook. Inflation in the eurozone works back to the flat line. Thats seen by some as a positive. I hope the euro doesnt get too weak. When you listen to the Conference Calls, its so clear. I had avnet on last night. Gave any some good insight. Their strongest market is europe. When you translate back, its not the strongest market. The u. S. Will become the strongest market. The currency is that weak, even though thats where theyre doing the best, it doesnt reflect it in the numbers. Keep in mind that the euro has got to stabilize against the dollar. 27 days until black friday. Deckers, not bad. Wasnt bad. 1. 11 beats by a nickel. Target yesterday announcing Free Shipping versus walmart for 50. Brian cornell, saying listen, we are a factor. Those who think that walmart is only being besieged by amazon, look again. Target is back and excited. Walmart one of two dow stocks red for the month. Thats saying something. Theres the opening bell. A look at the s p 500 at the bottom of the screen. At the big board today, jay johnson doing the honors. At the nasdaq, Scholastic Corporation celebrating the book series and movie goosebumps. Quht i ha the big red dog. Clifford. Hes on his game now. We have not done ea. 65 cents beats by 20 cents. Another beat and raise for the week. The stock is down, but really down because the stock had such a run. The fact is that the physical games did well. I tell people right now, buy ga gamestop off this. This gamestop is not done going higher. There is a huge short position, but they have go to some gamestops. Good company. Great quarter. 45, not too late to buy that. Expedia, 2. 07, beats by seven cents. Simon has them exclusively. That was a remarkable quarter, which they immediately talked about the competition, how its going to put pressure on them but theyll be ready. That was a fantastic Conference Call, too. Got a little bank mma from key. Keycorp acquiring first niagara. Talking first niagara had 39 billion in assets, 29 billion in deposits. Cash and stock deal. 6. 8 keycorp, 2. 30 in stocks and shares. How is the acquirers stock price doing . In this case, pardon my turn, not so good. No. Down 6 . A lot of people thought booth moony might want to break up the brand. Thats not her strategy. The bank is cheap. Every bank is better if we have higher rates. This deal is not being greeted well at all. Bbt has had a series of acquisitions and was greeted a bit better. We will the not see this at the top tier. Those guys were all done. Nobody is doing deal theres, except if theyre selling something. And you would have to take advantage of this because the scale of a wells or bank of america, jpmorgan is so big, you have go wherever you can to beat them. Theyre so powerful those companies. Colgatepalmolive one of the