Positive, europes are slightly in the red and we are watching crude and gasoline on news of the pipeline explosion yesterday in alabama. The first trading day of the month after that red october, more earnings. The election, the jobs number and the fed meeting all on tap for the markets. It is one week to go until election day. New polls and investigations are moving the markets every day, including today. Well have the latest. And a spinoff for kfc and taco bell. Yum and yum china begin trading as separate companies this morning. First up, though, a lot for investors to digest into november as we head into the first trading day of the month. A jobs report is coming on friday, the election is next week. All three major indices were in the red for october, posting their worst performance since january, although to be any worse than january would have required a lot more selling, jim. Look, theres theres just a major change underneath. What we saw were a lot of health care companies, big part of the s p, almost every single one of them was subpar. And the actual earnings, by the way, youre just not yoogd to reading releases that talk about price competition in the drugs, whether it be amgen, whether it be abv, whether it be from zimmer biomed. Well, the competition, dont worry about the competition, the need is not as bad as the supply chain management. I see Health Care Competition and then i read the banks and theres very little competition. So the banks had a great quarter. That is very, very different than what we expected, and health care had bad quarters. Health care were worse quarters than the banks. Retail wasnt so good, that mattered. Oil and gas were okay and tech was pretty good, but health care brought everything down. It is rather remarkable to sit here and think that the most defensive stocks were the worst. Thats a good point. Political risk in there. Oh, my. Were get auto sales today which will give us more granularity. We might get a break today on the sales. Ford is the worst. I had Klaus Kleinfeld on last night. Theyre having a blip on the f150, the most popular vehicle in the country. Theres a little bit of an inventory adjustment. By the way, the i am not a believer in the subprime loan problem in autos, but its three straight months, three straight months of subprime loan problems. This is my were in a bit of a funk problem. Home depot and lowes, another blip down, according to another piece of research. Were just not getting good, good data from any retailer, any restaurant chain. I cannot wait to talk to yum. Maybe something good. It wont be bad, but certainly yum will be positive when we talk to them. Not bad, thats not exactly, wow, ive got to go buy yum. Its not bad. Whats behind it . This is what i think we spent a huge amount of time talking about politics. I had brunswick on last night. What a great barometer of this country. Do you really need a 28footer, david . Ive got a 17footer boston whaler, im totally happy with it. Sales are good. But when you hear the company talk, its like why are our sales good but not for polaris. Well, people are a little down. The people are a little down. I think its the election. We get past the election, i think there will be just a kind of a sigh of relief. Thats a sigh of relief. Really . You think so . Yes, i do. No, i made that up to i dont know. That was just something i made up. Just to be provocative. Just wondering. You dont sense the funk . No, not particularly. I sense the apprehension. But if trump win, i think youre going to have a lot of questions. This is the cover of usa today. Oh, my. Is it over yet . Im doing halloween candy and what are people talking about. The kids are still saying thank you, right . But the parents, no jello shots. Its like all, geez, hows it going . Meaning like i cant wait for it to be over. Speaking of which, Long Campaign winding down, we are just one week away from election day. Our chief washington correspondent, john harwood, has been watching the electoral map and a bunch of other things this morning at hq. Hey, john. Good morning, carl. I think jim is right. I think there is going to be a national sigh, but weve got to wait a week for it, actually eight days, it will be wednesday morning. Lets take a look at where this race is coming. It is clearly narrowing in the polls. Real clear politics, that average is down to 2. 5 Percentage Points in favor of clinton. New york times average 4. 1. Huffington post, 5. 6 Percentage Points. We saw on the abc Washington Post track this morning, first track showing donald trump one point ahead of Hillary Clinton. But is that narrowing enough for donald trump to win . Take a look at the electoral map and that gives some clues. Weve got battleground states all across the country, but its still a challenging map. Remember, mitt romney carried 206 electoral votes. Donald trump has to add 64 to that. Take a look at his strongest possibilities of taking blue states. Nevada, iowa, ohio, florida, all of those are battlegrounds where donald trump is very competitive with Hillary Clinton. He could win all of them. But if he does, that is not enough to get him over 270. So whats the next tier of targets . Youve got states from colorado, wisconsin, michigan, pennsylvania, virginia excuse me, North Carolina as well as new hampshire. All of these are states where donald trump is not doing as well, where Hillary Clinton has had a lead. Shes got some advantages in those states. Theyre more diverse than the other states that he is picking up, so donald trump has got to figure out something to win there. Hes traveling to indicate that, both in wisconsin and in michigan. Then the final tier of states are states where Hillary Clinton could take away red electoral votes that romney won which steepens the hill for donald trump. Those two are arizona and North Carolina. Shes held a consistent lead in North Carolina, shes very close in arizona. So its a difficult map for donald trump. Not impossible, but difficult. Now, weve got a new story this morning in the New York Times about donald trump and taxes. He hasnt released his tax returns, but what the times reported is that he used what his accountants considered legally dubious methods to claim Tax Deductions in the 1990s. Is this going to make a big difference . I doubt of. Its of a piece with the other information weve learned about Donald Trumps taxes, which he has not made public, but people have intuitted and he talked about in the debate and said that made him smart. Interesting to our audience that monitors how people pay taxes and what means they use to avoid them. John, i see a lot of presence of trump in michigan, but theres North Carolina as well. If there is a firewall in this race right now, being a state, which is it . The firewalls that the Hillary ClintonCampaign Hopes that they have are three. Those are colorado, virginia and North Carolina. Two of them, colorado and virginia, are states that bill clinton excuse me, that barack obama carried in 2012. Donald trump needs to take one of those away. Hes had a difficult time doing that. And North Carolina, as i talked about earlier, is a state that mitt romney carried but Hillary Clinton could take those votes away. And so instead of needing 264 electoral votes to add to romneys 206, so its difficult for donald trump if he cant carry a couple of those three states. We have a week to toss this around. John, thanks. Well talk to you later this morning. Jim mentioned today is the day that yum china begins trading as an independent company. The yum brand spinoff operates more than 7300 restaurants in mainland china, listing on the big board under yumc. Well talk to greg creed and mi micky pant. They will simultaneously ring the opening bell here and in shanghai. This is a huge company. People have to recognize, a worldwide huge company. This is a move much like a lot of the moves that we see, to give you a fastgrowing company, right . No yield. Fastgrowing company with a clean balance sheelt and kind of a methodical company and you can choose. This is the kind of thing, weve talked about this endlessly on mad money. This is how you figure out who you are. What we dont talk about enough on most shows, suitability. What do you want . Do you want something younger, faster growing, which has been china. Although we have to ask about whether the Chinese Government actually likes this yum china. And then youve got something that over time can grow which i think is underrated which is this rest of world. I think taco bell is doing well. I dont know if youve been to the remallsed taco bell, its quite nice. Pizza hut is doing well. I have to plead guilty, the dark meat kfc with the mashed potatoes, done, done. Yum itself is going to be asset light. Theyre cutting g a significantly. Theyre going to be franchised up to 98 is what theyre talking about. Right. As you point out, the Growth Company being yum china, which has you know has been rather volatile. Dont you think it could surprise it could. I think theyre talking about 1. 25 million in evita. They have got to find an investor multiple. But when you look at the comps, you can argue it should be a higher multiple. 4. 5 store growth. Corvex is in there on the board and happy. This isnt necessarily what yum wanted to do or thought necessarily was the right course initially, right . They liked the combination, so its worth talking about. It will be interesting to see how it trades. Theres keith meister, of course, but beyond that, as both find their distinct investor bases. I find it fascinating because theres a school of thought which says that the rest of world may grow a little faster than china. Im reluctant to invest in the chinese side, because i think there was a time when you bought china because there was an aspirational aspect. People used to get married at kfc. The cache of the u. S. Blast food was considered to be so much higher. And dont forget, the chinese have delivery now with cell phones and people deliver all over the place. Theres a change model. I actually think that rest of world could do as well as china. Look at dominos. Now thats not the model. But dominos is the fastest grower in the world. Did you see dominos stock . Thats been a challenge for pizza hut, technologically falling behind. Its been tech, its been the app. I did dominos this weekend. I love the app so much. I have the base blap where it says its out of here. Its a nice way to order pizza. When i was shopping at the mall this weekend weve got lots of pizza places in the neighborhood. Go set a slice around the corner, fold it in half . Both of you are not new yorkers, so really just enough, all right . You probably eat are pizza with a fork and a knife. Id rather have dominos. Like our mayor. Hell never recover. When we come back, more movers to get to, including valeant. Speaking of china, well talk more about these pmis, strongest in two years. More squawk on the street in a minute. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Im stressed trying to figure out this complex trade whats with the dogsized horse . So i brought in my comfort pony. Well, you could get support from thinkorswims inapp chat. So you dont need a comfort pony. So what about my motivational meerkat . Inapp chat on thinkorswim. Only at Td Ameritrade. Our mission at clover is to highest Quality Dairy products. Clover has relationships with 27 different family farms. The environment is who clover is. Without it, were nothing. Pg es been a great partner. Theyre the energy experts, were the milk guys. Pg e worked with clover on a number of Energy Efficiency projects to save energy every month. If youre part of the fabric of the community, youve got to ensure that you do things right, environment included. Learn how you can save at pge. Com save together, were building a better california. Valeant is trying to bounce back after falling 12 on monday. The drop in reaction to the report that the former ceo and Howard Schiller are the subjects of a u. S. Criminal probe. In response to that report they said the company does not respond to rumors about investigations but closed it was the subject of a probe by u. S. Attorneys and that it was fully cooperating. How do you trade this one, jim . Ten years ago, almost right about now, then u. S. Attorney Chris Christie was investigating peter dole angers who wan, the myers. It was a bad investigation. They appointed a monitor. But the point that i mention this is that the investigation of the ceo meant nothing. The ceo. And what you have to recognize is that if you want to sell valeant, it was bad very badly yesterday, do not sell it off the u. S. Attorney. You sell it off the 30 million in debt. You sell it off the fact that every single drug stock has had a line of weakness over major drugs. And do you think that their wellbutrin can stand up under pressure, do you think that their jublia. Or the one they got from salex. Remember the portfolio of drugs under mike pierson, it was lets have 50 drugs that do 50 million in sales and lets raise price because theyre all under the radar. Theres mr. Pearson. Now they have gone on with a blockbuster drug and i think you make the salient point, which is simply pricing pressure, what is that going to do to the model at valeant. By the way, they may not be looking for asset sales. Its not clear what they could sell other than bausch lomb. The irritable bowel drug. Jublia, the toe fungus drug, that lasts one month so think about how much that is. Do you think that mckesson wants that . We wellbutrin, i know the generic is not tolerated as well. I think the most important thing is that when weve seen the antitrust department go after all these things, who can buy bausch lomb . Not j j. Novartis wont be allowed to buy it. Theres no natural buyer of bausch lomb. Who wants to go up against novartis and j j. If you want to sell valeant its because of the cash flow. If you get rid of bausch lomb, youre eliminating a lot of t as well. Not to mention theyre increasing r d. The whole plan was smaller drugs, increased price, tax rate, which of course they still have extraordinarily advantageous tax rate, and dont skpend anythi spend anything on r d. Valeant still has backers. And value x still delivering they have some backers, but i just think that ive seen when a u. S. Attorney investigates a sitting ceo or a ceo whos left, it has not really mattered. So dont use that as the reason to sell. Use the fundamentals. Unless they come after the entire company. Well, thats happened, and thats usually because of a problem with an actual drug that has hurt people. Right. That they have hidden memos. You know who im thinking in those cases. Youre thinking about asbestos, you know, stuff that is well beyond what were talking about here. Speaking of drug stocks, well get to pfizer. Speaking of rising costs and lower efficacy over time, well get to pfe. Well get cramers mad dash and count down to the bell. More squawk on the street after the break. Now that fedex has helped us simplify our ecommerce, we could focus on bigger issues, like our passive aggressive environment. Were not passive aggressive. Hey, hey, hey, there are no bad suggestions here. No matter how lame they are. Well said, ann. Ive always admired how you just say whats in your head, without thinking. Very brave. Good point ted. Youre living proof that looks arent everything. Thank you. Welcome. So, fedex helped simplify our ecommerce business and this is not a passive aggressive environment. I just wanted to say, you guys are doing a great job. Whats that supposed to mean . Fedex. Helping Small Business simplify ecommerce. 32 flavors, thats baskinrobbins, but were talking about l brands. Im going to keep it brief. Last night they gave some numbers that were a tad disappointing but look at this. Victorias secret was down 2, any expect that. Look what happens. This is a mallbased store. Bath body works is very good. Look at the reaction on just a slight disappointment. Whats that mean . It means that people want to celery tail. So just be careful. There are a lot of bulls out there thinking that the worst is over. That tells me its not. Because it wasnt that bad a quarter. It was not great. A lot of people felt there was going to be a turn. But im just saying beware. Matthew boss put out a piece saying theres not going to be many winners in the mall. Please read his stuff. He is the best and hes been very right. He said be careful of these guys. I told everyone sometimes you defer to your elders. Matthew boss is the hottest there is. He said get out, he was right. All right. Well be looking at retail, well look at discovery earnings, earnings from pfizer. Well talk a lot of yum this morning. And eating a lot of yum. And taking a look at those deal stocks from yesterday, none of which did particularly well. All of that coming up when the opening bell rings a few minutes from now. My name is Valerie Decker and im a troubleman for pg e. I am a First Responder to emergencies 24 hours a day, everyday of the year. My children and my family are on my mind when im working all the time. My neighbors are here, my friends and family live here, so its important for me to respond as quickly as possible and get the power back on. Its an amazing feeling turning those lights back on. Be informed about outages in your area. Sign up for outage alerts at pge. Com outagealerts. Together, were building a better california. It begins from the the second were born. Er. Because, healthier doesnt happen all by itself. 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