Worst week in ten. Draghis comments dont add anything new. Rolls royce has a warning. Oil back below 44. Copper to a new sixyear low. Macys sending shockwaves through retail. Its not all brands. A big beat this morning from kohls. Well have an exclusive with john malone in a moment and apple reportedly diving further into payments. Pay pal and Google Wallet may be on notice today. First up, kohls up sharply on better than expected quarterly results. Comps up 1 . Retailers citing strong backtoschool sales. Comes after macys reported the weaker sales and guidance. Comps up better than estimated. Inventories up 5 but still sequentially better. The take is, given macys, this is pretty solid. There was a time when 1 comp growth would be something that i would turn to you and say, wow is that pathetic. People were looking for 1 comp growth and they gave it to us. Was it kohls has one advantage. They dont have a giant flagship store. Kohls is also trying to differentiate some of its products. Thats not an easy thing but they have good private label. I happen to like the private label very much. Private label is often what the key is nrd to make good profit. But kohls demonstrates as does jcpenney that people are going to say macys is an outlier. I think kohls has been a serial underperformer and this was the beginning of numbers have been cut so much, they didnt disappoint. We have nordstrom point. Bezos is now the fourth richest person. Kevin plank at theu c iconic conference last night talking to our scott whopman. Terry lundgren is one of the best executives in retail. I think macys is a powerhouse. They, without question, they set the tone in a lot of rights. Youre seeing a lot of inventory and people reacting to the second warmest september and probably one of the warmest octobers in recent history. And that will have its effect. You mentioned weather yesterday. You said you have to it is warm out there. Who wants to look at an overcoat. I love kevin plank. Mark parker was honored by fortune. Hell hate that. Hell buy every copy of fortune and rip it up because thats the player kevin plank is. Hes got this fabulous clothing line that keeps you warm when its cold. Well, guess what i dont want right now . Kevin has done a remarkable thing. Hes a technology company, connected fitness. I love the guy. Scott interviews kevin plank. They have a great relationship. Plank could not control the weather, which is monumental because hes in control of Everything Else ive seen him go up against. No big voting stalk when it comes to the weather. Walmart is not only trying to simplify their deal structure going into black friday but theyre loading up on inventory. They dont want people to walk into the store and not be able to get what they want in the size they want. Theyd love some Colder Weather but theyre comfortable with their inventory. Doug mcmillan. The good news about the ceo, hes lowered xe eed expectatione point if they sell very little well hold it to, theyre selling very little. I think doug works in Mysterious Ways as we know when he said that business was okay and then business wasnt okay. I think a lot of people are pulling for doug because hes trying very hard to turn around the biggest american retailer. Is this the right strategy . I dont know. Everybody else has too much inventory. I come from a retail background. My father would also curse inventory if the weather was warm. And i think doug and my dad would not jive right now. David, were going to hear from you in a moment on malone. I assume youve got some thoughts on the retail picture, too . Lucisten, jim and i were e l emailing yesterday going, whoa, look at that move in macys. It really was stunning to see that kind of a loss of market value in one company. Weve seen it, you were just mentioning walmart. Weve seen that day happen. A number of these blowup days in retail and some of the heavily shorted stocks that you and i are just sort of watching go down every day whether its valiant or sun edison. Not to bring those into the conversation, but moves like that and macys can have a big psychological impact, too. Yesterday was the youve done more work on this than anyone. Macys, no to the real estate of what we heard at delivering alpha. Mcdonalds, its not that kind of thing. We dont want to play that. Well not try to bring it through reits. Were hedge funds just saying we were hoping theyd go this way and weve given up. Maybe the year of Financial Engineering and real estate has kind of peaked. It may have. Theres also some questions from the irs front in terms of structuring these so they get irs approval. We saw thats pressure on mgm. They went a somewhat different route. Theyre keeping most of the reits theyre creating and selling it in an ipo. Very different from selling it off and trying to get those irs approvals which have been tougher to get in terms of the taxfree status they like to have accorded to those things. I dont know how much that plays into it or its simply a view of a lot of different things, including wanting to own your real estate. Talking that off the table certainly probably didnt help on a particularly bad day as it was. One of the things thats happened, i remember when best buy was viewed as being the showroom for amazon. David, i think theres a consensus building that macys is now just a showroom for amazon. Tough. 15 billion market value at amazon. A lot of people rallying around macys saying the yield is okay. Theyve derisked the stock. Theres a funny term. Carl. The derisk firm concept which means, man, this thing is so bad. But, david, sun edison has not been derisked. Its still too early to buy sun edison. Too early to buy . Oh, no, jim. Thats just terrible. Is it too early for david, you report is weighed in on this incredible cocacola situation where acman is saying you dont like valiant . Cocacola, thats not good for you. This is a battle royale. It is isnt it . Its a battle royale, it is. Help me, david. Im out there on this cocacola thing. Im not going to cocacola. Im not going to cocacola. He waeont bite, carl. Can go to malone, though if you guys want. Lets get even more controversial. Lets go to malone. I had him sitting here for about 45 minutes. A longranging discussion at the annual Liberty Media investor day. Some news out of Liberty Media. Theyre creating even more tracking stocks. If you want to follow the fortunes of the atlanta braves, youll be able to do that. Every win or loss. Perhaps that tracking stock will go up or down. They are creating a tracking stock that will follow their ownership of sirius, which is close to about 60 of that company. But will actually be simply a tracking stock of sirius so youll have that and the actual common stock of sirius. Unsure if theyll trade in parity. The frustration had been that its trading in a significant discount. Its holdings are more than the stock of liberty would seem to suggest. Theyre trying to address those imbalances with these various spins of, as i said, the liberty braves. Liberty media and liberty tracking stock groups. I didnt talk to malone that much about it. Well talk to greg mcfay later in the morning, the ceo of liberty, about those plans. We talked about a lot of things. But one in particular, the charter deal to acquire Time Warner Cable and the bruighthoue networks. Still awaiting approval on antitrust and from the s. E. C. And questions now about, could it be this thing actually meets any real trouble on the regulatory front, and is it possible given the 26 ownership of Liberty Broadband which malone controls of charter, and his ownership in discovery and various content assets, that it could create more problems. I asked john malone whether if that were the case, what he would do. Ive always taken the position, for instance in directv, you know, when my ownership and participation in directv became an issue, an antitrust issue, right, i negotiated an exit for me so that directv could go forward without these issues. So, you know, my phone number is well known. Youre like an exit to discovery to allow charter to buy Time Warner Cable. No, but i could exit charter. I mean, why would i exit discovery when thats a double bank shot. I would never expect you to. I wanted to understand what you were saying. If charter has if the problem of charter being able to do this transaction is me, i dont have to be part of charter controller ownership. There you have it from mr. Malone, or dr. Malone. Unlikely that thats going to come up, but at least its been somewhat part of the conversation lately. And it does seem fairly certain that i shouldnt say fairly certain, but most people believe that the deal will be allowed to proceed. The broadband penetration of a combined charter, Time Warner Cable and brighthouse is still less than our Parent Company comcast, but nonetheless, we know a year ago, including malone, he thought there was an 80 chance comcasts purchase of Time Warner Cable would happen. Were watching that deal. Its an important one for john malone as well. We talked about a lot of things. Well be sharing that through our program this morning. Well have the entire interview available at some point online on cnbc. Com. Hes always interesting, to say the least, jim. Well, i mean, look. I think a tracking stock for the mets would have been that would be something that could be offered. But malone is doing something, and i think that i like the fact there are executives in that area that are its still an area of consolidation where money is being made. I mention that because theres a lot of areas where money is no longer being made. I wanted to get davids take on viacom where stocks down badly because i think viacom is the kind of nondisney programming, david. I think john malone must think that disney programming is special. You know, its funny. We talked about media getting day. Youll be interested to hear his response about what happened to the various stocks, including discovery which is close to mr. Malones heart as you well know given his sizable ownership. Viacom has had a terrible year in the stock market. Dragged down so often as a result of its own operations. The belief it does not necessarily have mustsee programming. And that it is in the weakest position of the major content providers, if you will. This quarter didnt look particularly good. I want to get an opportunity to look morclosely at it. The call as well and see what comes off that. That can make or break a lot of these situations. But theres got to be some pressure, one would think, on felipe. Its got to be on that board of directors. He has one big supporter, sumner redstone. Certainly bears close watching. Domestic ads of viacom down seven which prior down 9. A step in the right direction. This is a kohls situation. Its interesting. Whats the first line in the release . Sumner saying viacom continues to create some of the most compelling content in the world. Im confident that viacoms Leadership Team will continue to lead for a period of transition. Transition is an interesting word because where exactly are they transiting to, david . The digital world. That endless digital universe, jim, that were all trying to figure out. Thats where theyre transitioning to. Im shorting the braves. Tell john im shorting the braves and going long for the mets. Theyll be back. Well talk more about whats going to at libertys day. Apple may be upping the ante in the payment wars. Were looking here. Dow futures down triple digits. S p futures down 13. Crude oil down more than 1. Six fed speakers on the docket, including yellen in about 15 minutes. Were back after a short break. [announcer] if the most challenging part of your day is the staying awake part. gunshot sleep train has your ticket to a better nights sleep. Because when brands compete, you save during mattress price wars. And through veterans day weekend, save up to 400 on beautyrest and posturepedic. Get interestfree financing until 2019 on tempurpedic. Plus, helpful advice from the sleep experts. But mattress price wars and this special financing offer ends sunday. Sleep train your ticket to a better nights sleep apples reportedly in talks with u. S. Banks regarding a mobile to mobile payment service. The journal today says it would allow users to zap money to one another rather than relying on cash and checks. The service would compete with paypal, google and square. A lot of questions. The journal points out its not clear the progress of these talks, how apple would make money, how this would fit into bank infrastructure. Talking about a hot space. They felt it was just too cheap. Obviously, everybody wants to be in this because its peer to peer and people like it. The younger generation, im going to date myself here. Paypal is through credit card. They dont regard American Express ive been a member since 1982, and they laugh at that. They say, dad, join the fast living world. But apple is doing a lot of things that people dont seem to care about. Apple is in the throws of another round of people saying that cell phones have peaked. Certainly not demonstrable in the last quarter. Not from skywars who Just Announced a big buyback. It doesnt seem to matter all the innovation that i think apple is bringing to the party. This is something thats a good idea for apple. But apple cant get out of its own way right now, the stock. The stock you mean. Yeah. In a sense, its like 1,000 cuts theyre trying to take out of rivals because a lot of these wont move the needle, but in aggregate, maybe they lock the user in the eco and theres no reason to go anywhere else. The facebook ecosystem, google ecosystem and amazon ecosystems, the worlds collide. But i think theres room for all these worlds. I keep thinking about what tim cook said about the pc. He didnt mean the mac, which i just spent a g for with my kids. The mac you knot a macbook the air mac. Its this thing that i have. This is like what i use now for weights because i cant lift weights because of my back. This san old hp. No offense to meg whitman. I use American Express and i use this and my kids are saying, hey, trex. Theyd be calling me trex. Its like, wow. Hey, trex. Apple is not trex. You think youd get the ipad pro . I already ordered it because im tired of the wife watching her thing and doing that darn that 30second New York Times crossword puzzle. She watches her thing and i cant get a minute in to watch banchi, strike back. I have to have my own darn tv in bed. I cant see. Your experience and mine is mirrored. The things you are saying, the ipad, watching television in bed, thats she just watches movie after movie of dogs trying to get into food but not fresh pet. Well go over that. And occasionally its peppered by a cat that does something. Shell look at thus. Look at this. She doesnt watch the show. So i can say i pretend to like these things. She doesnt watch the show. I can say this. Your secret is safe with us. 2 million people, but theyre not going to tell her i dont watch those things. Well count down to the opening bell. Obviously a rough start to the session is in store. The dow, s p and nasdaq are all about break even for november. More squawk on the street after a short break. Dont go away. Just about six minutes before the bell. Lets get cramers mad dash. Rolls royce in europe is making some news. Im focusod their statements. The stock is down very badly, down 20 . Theyre talking about possible slowdown in engines. Before people read through this to ge, rolls royce is out of the mix on narrow body planes. Knocked out by ge and pratt and stuck with engines in the a350, the airbus, which is not selling that well and the a340, which is not selling well. I think thats a mistake for united technologies. They have some business demand. I dont know. Before you extrapolate this to the one area of the world doing well, which is air space, understand rolls royce has its issues. Thats a london chart today. Dont want anyone to trade rolls royce. Disaster of the day is a Company Called fresh pet. This is pet food that is natural and organic, okay. And it comes in its own refrigerators. I personally had to distance myself from this when my stepson was caught trying to make a sandwich and what he thought was bologna but it was dog food. The dogs like it but they dont do the buying. Generally we do it for them. This was a great concept, natural and organic. But you put it in your own refrigerator and a lot of people think thats a downer. In the middle of the night when you come down to make a sandwich, what is this stuff . Its dog food. You dont think its a broader comment on consumer diskregssary . People are going to read through that way and its its time has not come yet. They have a lot of product line. Very earnest guy runs the company. But natural and organic. Just remember that in the end, the dogs dont have nearly the votes you think when it comes to buying dog food. Well get the opening bell in a minute. Yellen is on tape. Mcdonalds ringing the bell. Back after a short break. Narrator when you see this truck, it means another neighbor is going to sleep better tonight because they went to sleep trains ticket to tempurpedic event. Through veterans day weekend, save up to 300 on the cooling comfort of tempurbreeze. Plus, get up to 4 years interest free financing. Sleep risk free with sleep trains money back guarantee, and of course, same day delivery. Are you next . But dont wait. This special financing offer ends sunday. Your ticket to a better nights sleep opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. This Holiday Season, gi see you brought a friend . I wanna see, i wanna see. Longing. Serendipity. What are the. Chances. And good tidings to all. Hang onto your antlers. Its the event you dont want to miss. Its the season of audi sales event. Get up to a 2,500 bonus for highly qualified lessees on select audi models. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in just over a minutes time. Before the bell, were expecting some remarks from more fed speakers today. Six in total. Five voting members. Bullards already on the tape saying we should start heading the policy rate back to more normal levels. Theres yellen speaking. The