now, we recoming up at the top of the hour, and we want to thank our guest host jason trinert. >> thank you for having me. >> and first day of a long break. >> 3 1/2 months here to go, and strap yourselves in. >> that does it for us now, and it is time now for "squawk on the street." good tuesday morning. we hope you had a great summer and labor day weekend. welcome the "squawk on the street," i'm carl quintanilla with jim cramer and david faber from the new york stock exchange. a shock wave of corporate deals involving tech and telecom, and futures like it when we kick off a new and treacherous sometimes month of september. the 10-year yield is jumping to 2.85, and get it to 3.00

already. >> enough! >> and the vote counting on the action of syria begins this week. the road map starts with microsoft buying nokia's hand business. a former executive there rejo rejoining the company and seen as a potential replacement for steve ballmer. and the third largest deal in corporate history, verizon paying $130 billion to buy out their venture. we will speak to the ceo in a few minutes. and a global data and continuing pause in syria have the markets poised to open sharply higher. after two years of striking a windows partnership with nokia, microsoft has agreed to acquire the handphone business. also, stephen elop will be returning to microsoft, and this

is what steve ballmer had to say about it earlier this morning on the new york stock exchange. we need to make shure that the microsoft acquisition goes flawlessly and not sustain the momentum, but accelerate. we know how the work together with the partnership, and we are glad to have stephen come back to microsoft, and much of the nokia executive team on the devices and services will join us. that will form the core of a variety of things that we are go ing the do in the devices. >> well, jim, you said a few days ago, they should do something with the offshore cash and they have. >> well, i wanted the people to sell nokia, because i have been recommending it as a spec. ring the register, and mark bennioff on twitter said it is fabulous for apple and samsung. oh, what? >> what. >> it is about being nice? well, the last i looked it is

about money. >> and we remember when nokia was the dominant provider of the handsets in the 1990s and the market cap of the company was enormous, and now smartphones came around, and it is 3% of the market share. >> yes. last fall 4.3%. >> and now down to close to 3 -- >> probably, yeah. >> and look, i think that microsoft is struggling for the relevance, and maybe it is like a shoe phone like in "get smart" and put the skype on it, but we have it with the facetime, and it is catch up, catch up, catch up. i think that it is tough enough for apple to beat samsung. i don't know how these two companies combined very expensive successor if that is what it is about. >> and some say they spent billions to get a new ceo. >> we don't know what ballmer

will do to choose the successor, but they spent a lot of money to bring in the guy who is the likely successor? >> well, they can do two things. shove the money into the giant furnace or buy this? there was a great show in the show "the shield" where the land is frozen and they burn the money. >> the handset business is $5 billion if i understand the structure, and a couple of billion for -- >> and some intellectual property. >> and patents and 32,000 employee employees. >> right. look, i struggle. i see the stock down and i don't want the prejudge it, because microsoft is making a big move down. and once again, i mean, we find ourselves trying to figure out, where is microsoft's social strategy? what do they have cloud -- >> shouldn't there be a third provide ear and not r and the a and the android and something provided by microsoft backed by nokia handsets.

>> well, maybe you give it away and say to the carriers, look, we will pay you a bigger subsidy than apple and you have to subsidize, and we will switch the direction and in other words you pay apple and we will pay you. you laugh. >> you are right. >> verizon needs the money. didn't they shell out -- and they spent $1.3 billion -- >> no, it is $130 billion. >> oh, i missed a decimal point there. >> and it makes you wonder if there is room for three. and blackberry's plan to be a solid three, but microsoft is saying they are outselling blackberry in 34 markets and the death knell for bby? >> well, the stock is trading up, because if microsoft bought nokia, there has to be another player. why? again, you have to have a declining situations. i like to overpay for situations that are growing, and i don't pay a lot for situations in decline, because decline is hard to reverse.

it is not like samsung said, wow, we should put out some bad iterations. >> well sh, to carl's point, in 2007, this company was the dominator -- >> and things change. >> okay. so what about the idea that you are saying that microsoft is not capable of innovating to match and/or exceed anything put out by samsung, and i don't want to put words in your mouth. >> well, i like those words and i will regurgitate them all. steve jobs said in the seminel book of our times, they have no game. maybe they bring in a ceo who is committed to the wireless business, and elop. that is the problem. all you do is to dig a deeper hole. >> a lot more the discuss on that front. also, by the way, that jim just said at $130 billion, it is one of the biggest transactions in corporate history, and david with an exclusive ceo on his

deal to acquire vodafone's acquisition by verizon. a lot more of "squawk on the street" from post 9 in a moment. r clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.

>> we will be watching shares of smithfield and we will tell you why in a little bit. but david, meantime, up to you. >> thank you, carl. $130 billion in stock and cash

and the third largest acquisition of all time and require the third largest bond offering on record. all of of it for verizon to buyout its long-time partner vodafone. we are joined by the ceo of vodafone mr. mcadam. thank you for joiping us, lowell. >> thank you, david. >> certainly some of the shareholders who were anticipating a transaction of the type would have occurred this year, and much conversation out tlshhere, but much of it focused on the price lower than where you ended up. i'm curious for those expecting $100 billion or $105 billion and you end up at $130 billion, how do you explain the rational for going to that seemingly very high level? >> well, david, this is obviously not a surprise. it is something we have been working on since 2002, and if you look at how the business has

grown over the years and this is arg arguably the most valuable wireless asset in the world. we have spent a lot of time triangulating between the shareholders and the partners and our own internal business plan, and we are comfortable with where we have landed. if you look, where can you buy a business with 100 million loyal customers and 50% margins and no integration risk and has a great field in front of it to grow the business even further? so we feel good about where we have landed and it is going to create the shareholder value as we go forward. >> you have talked about that and the conference call of the analysts that i listened to that ended a little bit ago and you spoke about the great growth potential of the company, but i'm curious, more debt on the balance sheet, and not hobbled by any means, but nonetheless, it is going to be a larger amount of leverage, and you are dealing with a more competitive marketplace it would seem, lowe lowell. softbank controls sprint willing

to spend money, and t-mo is back from the dead position. and are you going to be able to handle the more competitors with a higher debt load? >> well, we have been around for a while, and this is not the first rodeo. so from what we have from a veteran perspective, and as you see from the announcement, we are eps creative of 10% day one after the close. so we are in a strong position financially, but david, we have the assets whether it is the cloud platform, the security platform, the machine-to-machine platform the find the next gear. we talk about how there is a higher gear around the business, and we feel there is a great opportunity and if anybody is worried it should be t-mobile and sprint. >> not that there are synergys with the deal, but there are benefits to own the company, and i'm curious, if you can explain,

because you have controlled verizon wireless and run it for all of the years as you saw fit, so what is to be gained on the operational level from owning 100% as opposed to 55%? >> well, it is pretty simple on the financial side since january of 2013 of the dividends paid to vodafone. we talk about a one verizon philosophy inside of the company, and that is to seamlessly use the assets we have to provide what we call powerful answers to the customers. so being able to very agilely take those different assets that i talked about and create those solutions for customers, we will be able to move more quickly. but look, vodafone didn't hinder us going forward and for me it is a moment in time issue where we see the market going to 300% and 400% market penetration instead of the 100% that we sit

at today with all of the assets in play, and we think that we can lead the market there. >> lowell, jim cramer. >> hello. >> good to see you, too. >> good to see you. >> thank you. one of the reasons i have loved the verizon stock for so long is your commitment to the dividend. now you have a high growth asset, and do you still need to provide the dividend and will you if the board allows it raise the dividend regularly? >> well sh, i can't predict the dividend, jim, and i have to be careful there, but the priorities for us are that we need to have the highest quality networks to take care of the customers. we want to pay down the debt in a reasonably short period of time to get the one notch downgrade and get it restored back up, and then the dividend is right up there in the top three priorities for us. so i think that the board showed that in the action yesterday when we unanimously improved another increase in the dividend. so we hope to maintain a strong yield for the shareholders going

forward and i expect we will. >> one of the things that verizon did under ivan seidenberg that is interesting is that theyey took area that weren't growth areas and they sold them. sold them to frontier and other player, and would you be able to get rid of some of the underperforming land line businesses to increase the growth further than it is now? >> well, jim, that is a possibility. i am glad you brought up ivan, because there has been a lot of talk about getting this deal done, and this deal would not have gotten done without all of the work that ivan has done in the work he has done for years, and i am beholden to him, and the mentorship to me. if you talk about the opportunities here, now that we have this asset and one verizon, and i talk to the team that we will trim the limbs around the tree here and things that are not performing will not be part of the portfolio to invest in things to drive the growth that we are excited to tap here. >> i am curious though, lowell,

your view of the marketplace, because it seems to be a historic year again with softbank taking over sprint, and t-mo and sprint getting together, and how can you grow the 100 million subscriber level more and maintain the margins with the competition? >> well, david, i point out there's only one reason that softbank bought sprint. they see potential in the market. there is a reason why deutsche tell cecom is doing what they a doing is because they see the o potential. we are bullish, because nobody has the assets we have, and if you believe in the converged solutions that over the top is going to be in play and the machine-to-machine for health care an energy is going to be in play, you don't want to be anywhere but the u.s. and go big. that is what we are doing. >> okay. a quick question on the stock,

itself, and weak today and a lot of questions on the call and i heard them as well from the ip ves -- investors of what we call flowback. and for some institutions that can't hold the deal when it closes, and how do you combat the forced selling to take place that will happen as a resultf that which could be $30 billion of the stock? >> well, look, we knew from the beginning when we talked about this whether it is merging the companies together or this exit of the partnership there would be flowback. it is a temporary phenomena, but fran and i are on the road in the next three weeks meeting with the shareholders who don't know the verizon story, and we will be able to mitigate some of it. but my view is that it is a temporary thing, david, and maybe 90 days and six months at the most. we will see a little transjens there, and then we will be back on the growth trajectory. >> curious about the views of consolidati consolidation.

we have seen a lot of transactions and this is most notable and the others that we have mentioned and are we done and going to have four players in the wireless arena in the united states for many years to co come? >> well, probably a good one to ask tom wheeler as he comes into new job in the fcc, but i think that four players can coexist quite well here. i do see other consolidation that t-mobile and sprint may be doing, and -- >> you do see it as a possibility sprint and t-mo, it could happen? >> well, the big carriers, frankly, a little bit surprised by that. you know, again, that is probably a tom wheeler question. but i think that, t t-mobile co son doll date some small ones and sprint could consolidate some small ones, because it is is tough for the small regional carriers to coexist in the market. >> of course, you and atat&t.

we had a big deal this morning, nokia and microsoft. do you think that they can revitallize when it comes to samsung and the phones and can you tell me if there can be a viable third al teternative fore devices? >> to answer the third alternative, absolutely. there could be more than three, and i would not completely write off blackberry, because they have the good assets here. but i corresponded with steve and stephen about this, and microsoft has great platforms around the office suite and other phones, they are creative. nokia very aware of the hardware side, and there is a good opportunity here, and i'm glad they did it. >> can you change the equation, because they need customers over at nokia and microsoft, and what happens if they said, we will pay you to sell us, and just turn everything upside down and

they get in and that way they really have a real beachhead. >> well, i am going wait by the phone for that call, jim. well, some other models, if you look by that we have just gone to this share everything pricing so you can put the whole family on the one plan, and we have now various lease options for phones, so i think that the good thing about the competition that you are seeing now on both the handset side and the carrier side is that there are unique things coming out here. you will expect to see some unique things from verizon in the next year. >> yes, and finally, mr. mcadam, i would like to end with a broader question here, and a lot of the u.s. citizens have been peppered with stories over the last month about the nsa and the work it does to monitor the traffic, much of which goes over your network, and what can you tell the customers since they first learned about this spying about the privacy that they can expect and what is your

cooperation with the u.s. government? >> well, i think that, david, all i can say is that we have to comply with the subpoenas that come out that the government issues to us. we are very careful about the customer information and we don't release it to anybody or share it with anybody any other way than by subpoena. so they just have to know that we are complying with the laws, a and that is what we rerequired to do. >> okay. very big deal and interesting road ahead. lowell, we look forward to v visiting with you along the way as well. thank you for your time this morning. appreciate it it. >> okay. take care, guys. thank you. >> lowell mcadam, chairman and ceo of verizon. >> we should point out it is a breath-taking, breath-h taking deal and it is $30 billion more than we thought, $30 billion! >> what a year of wireless and we can talk about the lack of m&a overall, and with sprint and

this deal -- >> tech and m&a is about where we were last year, year-to-date. >> i see it going up, because it is at a foul money for the guys. >> if they had added more debt, it would have been more creative give given the borrowing rates and they went down one notch in the investment grade rating. they could have levered up more and had it more. but that stock is weak today. we will keep an eye on it. >> this is qe3 at the best or the worst depending upon those who are free marketeers. >> coming back, cramer has ideas for you on this short trading week. his "mad dash" is next. don't go a wway. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550

playing this and trading. tdd#: 1-800-345-2550 and the better i am at them, the more i enjoy them. tdd#: 1-800-345-2550 so i'm always looking to take them up a notch or two. tdd#: 1-800-345-2550 and schwab really helps me step up my trading. tdd#: 1-800-345-2550 they've now put their most powerful platform, tdd#: 1-800-345-2550 streetsmart edge, in the cloud. tdd#: 1-800-345-2550 so i can use it on the web, where i trade from tdd#: 1-800-345-2550 most of the time. tdd#: 1-800-345-2550 which means i get schwab's most advanced tools tdd#: 1-800-345-2550 on whatever computer i'm on. tdd#: 1-800-345-2550

it's really taken my trading to the next level. tdd#: 1-800-345-2550 i've also got a dedicated team of schwab trading specialists. tdd#: 1-800-345-2550 they helped me set up my platform the way i wanted, tdd#: 1-800-345-2550 from the comfort of my home. tdd#: 1-800-345-2550 and we talked about ideas and strategies, one on one! tdd#: 1-800-345-2550 really gave my trading a boost. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 after all, i'm in this to win, right? tdd#: 1-800-345-2550 open a schwab account and learn how you can earn up to 300 tdd#: 1-800-345-2550 commission-free online trades for 6 months tdd#: 1-800-345-2550 with qualifying net deposits. tdd#: 1-800-345-2550 call 1-888-254-2600 today. tdd#: 1-800-345-2550

all right. futures on the dow look god aod and one well known name getting a downgrade. >> yes, coca-cola goes from hold to sell. this is a downgrade, because it says that carbonated soda is basically a loser going forward. not only that, but she says that in some markets coca-cola is defending aspartame as a safe ingredient and i thought we gave that up long ago. >> they are drawing attention to consumers who had not thought about it and wait a minute, should i be concerned or not. >> i thought that coke zero had

this weakened, but now the process. one other interesting thing is that china is slowing. china! we thought it was the growth market for soda, and have they decided that it is ver bowden, i don't know, but a i have to tell you, carl, this stock is a drag on the dow. i was looking to thinking it was the right level, but caroline levy has made me think, you can't touch it. >> she is one of the best on the street. >> ooh, she is smart. >> it is the first trading day of september and stocks trying to turn it around after a miserable august. the opening bell in three and a half minutes.

in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. ♪ [ indistinct shouting ] [ male announcer ] time and sales data.

split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ you are watching cnbc's "squawk on the street," live from the new york stock exchapg. the opening bell set to open, and we have lost 4800 on the dow since the high. it has not been a single s&p sector positive for the month of august and september is not only historically the worst month with average turn of 1%, but it moves. 2% or 3% or 4% in e recent years. >> i was going over the charts this weekend, carl.

i said, well, that stock is up, but they looked so awful and so much in the market looked like it would roll over. >> there's the opening bell down here at the big board and we will look at the s&p at the top of the screen as well. the greater nyc susan komen race for the cure down here, and over at the nasdaq, i wish i could tell you what they have going on over there, but you have to wait for a few seconds. biopharmaceutical company incyte ringing the bell there. the debt ceiling discussion, and the tapering and the german elections and the next few weeks are chock-full of big events. >> all of them say to trim a little. i'm going back and forth with people of nokia being the lottery ticket winner, and nokia is a winner and vodafone is a

winner, and you should buy europe. europe is getting more and more flush, and the numbers are good in europe. >> you have been saying, that and that plays into the vodafone and verizon story, because vodafone, which we have not discussed at all, the stock down and up sharply at the beginning of the week when we heard that the deal was close. vodafone is distributing most of the proceeds to the shareholders directly, and not like it is going to go and 71% of it is a lot of the verizon stock that we talked to lowell mcadam about deliver ed delivered to the shareholder base. >> you have to make a commitment no the stock. >> and distribution of cash and what happens to vodafone which gets me to europe, because we have heard that at&t has interest in europe, and could it, should it, and would it start a romance with vodafone? >> more of a vomance. >> and i will tell you of all of the proceeds $5 billion the u.s. authorities and maybe none to

the uk authorities because of the two-step structure. >> great point. >> they used the tax structure that was outlined by the cfo of verizon if you recall on the longstanding dialogue. that was an important point when on a verizon earnings call they talked about how to do the deal tax efficiently vodafone before much of this unfolded, and they are using that structure. >> how about the fact that it is creative, and so many people called and said, boy, verizon seems so expensive, because on the eps basis, it didn't seem growth, but this is year over year very exciting. >> well, 10%, and there had been an expectation of as much 19% excretion, and that is not going to happen, and as i said, you could add more debt and be more creative, and the flowback concern is valid, jim.

>> well, it is a great question and i had not heard it asked by others, other than you. >> well, they are going to go out to try to buy more verizon. >> well, it is a buy equivalent, and when you see it march toward 3.0, this could be a poorly timed deal if the 10-year goes to 3.00 and not for verizon's operating business, but for what people are looking to sell. 5% versus the risk-free 3.0, and because the people are in the stocks, they don't know what the stock is, but they know what the yield is. >> and microsoft is the other big one to watch, and nokia the king of all face-rippers was up 44% in the premarket, and system of the shorts -- i don't know. should they have seen it coming, jim, because it was in the ether? >> well, ballmer would do something is, and sometimes better lucky than good.

ballmer coming in to do this and the stock continues to correct in a fashion that makes sense for microsoft. w windows 8 did not work so well, and the jum here, if we don't like apple that much, and the market is lukewarm on apple, and what about nokia now? it is not like everybody is walking around with the microsoft phone. i don't know a soul other than ballmer who uses it. do you? >> no, i know ballmer through you telling me at the reunion where he had it. >> well, jenny's point is that buying the nokia business does knotting for them strategically and they could have unveiled a new unbranded phone. >> well, i'm desperate of the pcs that are in decline, right. they claim they have a good cloud presence, but that is not what the sales force said last week on the blowout quarter. skype has failed to monetize it.

xbox is good, but it is entertainment, and i'm thinking of how to break it microsoft, and break it up to have a mobile business and gaming business and utility business with the windows and maybe that is the plan and maybe smart. >> quiet story that we should make sure that people are aware of is that value act did manage to get a board seat. >> yes! >> there in a what was opposite of a sort of carl icahn activist campaign and very quietly and trying to be constructive and 0.8 position, and you may recall that we talked about it in april when they took the stake value act and large stake dollar-wise, but they have an opportunity to point at the board of directors in the next year. >> isn't that unusual, because it is a close knit board and you buy a stake and you make some noise and you get a one? >> well, there are a lot of rested shareholders and that adds another element here in

terms of the succession, and we will see if the board chooses a successor prior to value act putting the member on, if they choose to do so. of course bill gates has the broader -- >> well, broadly, we are up, and the names led us all year, and jim, tesla with a all-time high. and ballmer up 400% for the year. >> if they had bought tesla. well, tesla is amazing, because when you go out, okay, when you talk with people, all anybody wants to talk about is tesla. they are kids who all love tesla. every kid i know says go buy some tesla stock. this is one of those like netflix, and like amazon and the three anointed stocks by young people. throw in chipotle where the younger people say, hey, guys, mom and dad, instead of buying that pfizer, buy tesla. your son -- >> well, throw in cbs with the

low, and the number one gainer. >> and tomorrow i believe on "squawk" have him on? >> for those of us who are new york jets who are looking for a great season -- >> do you back any winners? >> we are looking for backing a new team. >> geno smith looked good. >> when is that -- college? >> i thought that matt simms looked good against the eagles. >> looked like cbs got what it was looking for the stock up 5%. >> how can they keep pulling it? >> content, baby. king. number one primetime network in the country. >> and the come disand people watch those shows. i'm busy watching "breaking bad" and spoiler alert, i did not get to watch it. >> if we were "big bang theory" who would jim play, sheldon?

>> i think so. >> what is that? >> well, the mother. >> what isn't theirs? have you watched criminal porn? >> criminal what? >> criminal mind about porn. >> and leonard -- >> he is going places i have no idea. >> i bet you that mary thompson knows. >> and people say, jim, why don't you watch these shows? i watch the sports, and cbs sports obviously. >> and aside from the "squawk on the street." >> well, i was twerking this weekend. i watched the video. >> and you were not tweeting or twishging. >> mary? >> the dow up 116 points after a dismal point on the markets, and the dow as i mentioned up triple digits, and transports up 100 points earlier and holding on to a 97-point gain. the nasdaq and the s&p showing the gains today and gains across the board and the only area of weakness is crude oil down 30%. what is on the docket is the

deals announced and concerns about syria which will overshadow the markets, and lastly very good manufacturing data from asia as well as europe over the weekend. take a look at the asian markets, because they are coming into the day's session higher across the board after the china pmi was stronger than expected. china having a big one-day gain in over a month in the session. there was a loser and that continues to be india's bombay sendex, because of the falling of the rupee. and falling of copper and despite the decent manufacturing data out of the eurozone, and they were -- there we go. sorry. they are mixed right now on concerns about the unannounced missile strike by israel has pulled those stocks lower.

microsoft a couple of things to add here which the traders will say that ballmer may leave sooner than needed because of the nokia deal led by a bronx cheer. and also to buyback with the weakness in the stock. and also continuing on something that jim said earlier today, of course, coca-cola was cut to underperforman underperformance, but goldman sachs raising guidance on constellation, because of the rising beer sales. again the dow is up 170 points. david, back to you. >> thank you, mary thompson. i want to get back to the deal, but not the particulars of the trangs transactions, but the particulars of the larger view of the largest corporate bond offering of all time in fact. a lot of the deal and the timing

was a result of where the interest rates are and a belief that eventually the window, and the opportunity to borrow vast sums in the market for corporate bonds at incredibly low rates would close. that is not the reason for it, but you heard lowell mcadam talk about the financial considerations about it. it is one reason that if you were going to fry to do something, now is the time to sit down to negotiate it knowing that if you could not reach a deal, it might be many, many years before you come become to the table. they got it done. and now they are going to start to issue bonds, wow, are are we going to see a busy capital markets in the fall, and let's call it first quarter as well. the 45% stake is $130 billion and that is what they are going to be raising out there in the markets or something around that number. a lot of it will take place in the first quarter when it closes, and take out the bridge

financing provided by barclays and the j.p. stanley and rest. they say not only going to get this deal done, but it is going to be incredibly busy september and october blowout for leveraged finance with more deals coming, and so, you know, we don't know where they will go in duration here, and how many issues there will be, but it is going to set records no doubt about it. they are going to be able to borrow that money at extraordinarily low rates. >> well, there is a whole other component of the market where the federal reserve will let the rates not buy as many bonds and the interest rates are going the go higher. it is a window, and isn't the wib doe closing? >> well, if you call it the 3.25 on the window, it is still aw win, and the only window is pricing it correctly and not about capacity. again, there's an expectation that we will see more deals than

that in leverage and high yield coming up soon. so, keep your eyes on this. by the way, the fees that will accrue to the banks doing the deals are enormous and we have talked about the advisory fees here, and guggenheim, and interesting that you had boutiques here, guggenheim, and schwartz and andrew decker and particularly verizon and paul toutman has shown up who has been in semi retirement trying to figure out what to do. you know, it is nice to retire and then come back, and it is key in 2004 when vodafone was trying to go with at&t wireless and he said, give us the outside opinion, and not a capital based opinion to make it happen, and very interesting. >> we have to go the rick by way of the jardin and the yankee candle is up 5%. we go the rick santelli at the

cme in chicago. go ahead, rick. >> we have reignited the complex with the syria story or the lack of syria. we go back to january for two-year and the five-year, because when the fed has kept the interest rate virtually at ze zero for two years the two-year is popping enough to comp it back to july of 2011 and the five-year joining it as well. we are hovering on new high yield closes, and very close right around 167.5. if you look at the 10-day intrayield notes, i would have to tell you that the 30-day is up more, and steepening and more catchup. they have not extended the co s comps, but at 283 and now a higher chart yield starting in may on the 21st of august and the same for the 30-year bonds and by the way, 392 versus 397

and you could see how much the third year has been in the hammock while everything is selling off. watch the 10s versus the 30s, and the foreign exchange you ask? well, the dollar ip dex and august 1st, we have not been up there in closing basis and up one-third of a percent at the expension of the euro versus the doll dollar. and look at the chart starts around the 18th of july and that is the last time that the euro wast that lower level versus the greenback. carl quintanilla, all yours, buddy. >> all right. rick. rick we will talk to you soon. kelly evans here at post 9. interesting flow of immediamedi coverage regarding summers and yellen. this is one, kel, "usa today" today with a bold headline reading "yellen candid fear l

fearless." you have more. >> yes, add to it the "economist" endorsing yellen over the fed. i will hold it up. are we going to do it? >> you said that obama won. >> here is "the new york times" which on the front of the business section today is saying that summer's odds up, but the stimulus ease is seen. if you dig through the coverage, there is a blowback against summers if you put all of the pieces together. as much as people are reporting that he is the front-runner including john harwood and while we don't know whether he is named in weeks or generally some time this fall, there is a lot of coverage about whether or not that is the right choice at this juncture. so that the "economist" is endorsing yellen and likes her approach and say he's is the author of the fed, and she is

well respected. and for summers, more baggage and less predictable. and this morning, quoting julie corona coronado, a good friend of ours is saying, that look, if there is a sense in the markets that the summers' pick might be less dubbish, and less skeptical of the qe, that the rates of interest rates could mean as many as half a million fewer jobs in the future, but i am agreed to agree with the "economy" that it calls out on the exended article dove versus dove. and then there is an article wondering why summers would want this job, because he has fiscal policy on monetary policy, and

doesn't that remind us that the federal reserve is a tool of fiscal policy and one of less oversight and political wrangling to deal with. that is where it stands this tuesday morning. >> it looks summers. >> yeah. i mean, all of the people can spin their wheels. >> they are still vetting the finances and difficult with a lot going on. >> i will leave you with the twist ending by the economist that it is not that summers would be an asset, but why not him at the treasury and yellen at the fed, and that is a team they could support. jack lew might not agree. >> thank you, kelly. the ceo of staples weighs in on back the school and what he thinks that the current management of staples needs to do to turn the company around. a lot more "squawk on the street" when we come back.

nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology help tus of tweets, posts and stories into real-time business insights that help nascar win with our fans.

...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. if then schwab is the placeing your trato trade. higher level, tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550

see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550 get all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commission-free tdd#: 1-800-345-2550 online trades for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-800-345-2550 you make a great team.

it's been that way since the day you met. but your erectile dysfunction -

it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.

before too long and nokia is arguing that the gains in the market share is going well, guys. back to you.

>> that is a metaphor we won't forget soon. and the defense committee will be meeting on the president's decision. >> to present this issue to congress. as i have said last week as secretary kerry made clear in his presentation last week, we have high confidence that syria used in an indiscriminant fashion chemical weapons that killed thousands of people. including over 400 children. and in direct violation gaiagai the international norm of using chemical weapons. that poses a serious national security threat to the united states and to the region. as a consequence, assad and syria need to be held accountable. i have made a decision that

america should take action, but i also believe that we will be much more effective, and we will be stronger if we take action together. as one nation. so this gives us an opportunity not only the present the eviden evidence, to all of the leading members of congress and various foreign policy committees as to why we have high confidence that chemical weapons were used and that assad used them, but it also gives us an opportunity to discuss why it is so important that he be held to account. this norm against using chemical weapons that 98% of the world agrees to is there for a reason, because we recognize that there are certain weapons that when used cannot only end up resulting in grotesque deaths, but also can end up being

transmitted to nonstate actors, can pose a risk to allies and friends of ours like israel, like jordan, like turkey, and unless we hold them into account, it also sends a message that international norms around issues like nuclear proliferation don't mean much. so i'm going to be, you know, working with congress, and we have sent up a draft authorization, and asking for hearings and a prompt vote, and i'm very appreciative that everybody here has already begun to schedule the hearings, and intends to take a vote as soon as all of congress comes back early next week. so, the key point i want to emphasize to the american people, the military plan that has been developed by our joint chiefs and that i believe is appropriate is proportional and limited and it does not involve boots on the ground.

this is not iraq and this is not afghanistan. this is a limited proportional step that will send a clear message not only to the assad regime, but also to other countries that may be interested in testing some of the international norms that there are consequences. it gives us the ability to degrade assad's capabilities when it comes to chemical weapons. it also fits into a broader strategy that we have to make sure that we can bring about overtime the strengthening of the opposition and the diplomatic and the economic and the political pressure required so that ultimately we have a transition that can bring peace and stability not only to syria, but to the region. but i want to emphasize once again what we are envisioning is something limited. it is something proportional and

degrade assad's capability, and a broader strategy to upgrade the capabilities of the opposition, and allow syria to ultimately free itself from the kinds of terrible civil wars and death and activity that we have been seeing on the ground. so, i look forward to listening to the various concerns of the members who are here today. i am confident that the concerns can be addressed. it is appropriate to act deliberately, but i also think that everybody recognizes the urgency here and we have to move relatively quickly. so with that, to all of you here today, i look forward to an excellent discussion. >> mr. president, are you prepared to rewrite the authorization and does it undercut any of your authority, sir? >> i would not be going to congress if i were not serious about consultations and believing that by shaping the authorization to make sure that we accomplish the mission, we will be more effective and as

long as we are accomplishing what needs to be accomplished which is to send a clear message to assad and sending a clear capability to degrade his weapons and not just now, but in the future as long as the authorization allows us to do it, i am confident to come up with something that hits that mark. all right. thank you, everybody. thank you, guys. and so the white house continues the make its case and the president flanked by the speaker of the house and democratic leader pelosi. eamon javers is there in washington. >> he wants the congress the vote for the resolution and have the united states act as one nation. interesting tidbit here in terms of john mccain's participation. he was over at the white house just yesterday, and said he would support action if it took

some form of an attack that helps to increase the position of the syrian rebels and also degrades assad's ability to deploy the chemical weapons, and that is exactly what the president is talking about here so seems the two foes from 2008 john mccain and president obama are very much on the same page of what to do here in syria, and the big question, carl s whether or not they can get the rest of congress on the same page here. it seems that the leadership wants to hear answers to tough questions about what happens next? what happens if you strike, and then assad continues to use the chemical weapons and how long is the united states getting involved in this syrian war if we go ahead here? >> thank you, eamon javers. we also want to bring in our washington correspondent john harwood. your reactions to the comments of the president we heard moments ago? >> well, look, the president by making the decision to go the congress complicated the ability to carry tout policy he says is

right. that is why places like here in midwest city, oklahoma, become relevant to the discussion. there is a chamber of commerce meeting that a member of congress who said that yesterday he is leaning no on a syria strike is going to be having and also a town meeting later and all around the country, you have the house that is home, and the president is trying to deal with the leadership and get their support. he is likely to get the leadership support, but you need 218 votes in the house and 51, 50 in the senate, and or perhaps 60 if in fact you have a filibuster led by some of the people like rand paul who don't want any involvement at all. this a difficult situation, and the president, we all expected the president would act over the weekend and he was plainly ambivalent about it, and pulled back to go to congress. that is why we are in the situation that we are in right now, going to scramble for

votes. >> this is david, john. we have an immigration bill in the house going nowhere, and the gun control, and the debt ceiling potential coming up and is any of this connected whether he wins or loses on this vote with the upcoming debt ceiling for example fight? >> well, i have talked to some obama people who think that it could complicate those things, because if in fact the president gets sufficient number of republicans to vote for him and authorize the strikes may may feel greater pressure to go against him and tougher on the budget and the debt fights, but on the other hand, the fact that you have a debate in september where there are very few days where congress is supposed to be in session, it increases the odds that you are going to have a very quick continuation of government funding, kicking the debates down the road a little bit, and that may make it, and lower the temperature at least for a short period of time. >> john harwood in oklahoma for us this morning.

john, thank you so much. when we come back, the rm foreceo of staples will join us and tell us how that company can turn it around. the markets are up right now about 99 points. we will see if the market can continue the hold. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."

nice bounce this morning and the u.s. markets are pushing higher and all three major averages in the green. analysis to tobias ljoining us s

well as our other guest to talk about the stocks rallying. >> well, as the stocks are higher, companies will feel compelled to do these deals and pay potentially more, but we have had bigger deals before and it is not broader con fidence. it is encouraging, but we are struggling on the m&a side to see a pickup. >> brian, the averages are hi higher today and the fact has to do with no strike on syria, and that for the moment has been postponed, but what is the underlying direction of the market, because yesterday, europe had a 2.5% bounce and japan up 3.0, and that is actually underperformance, brian. >> yes, it is. especially considering off the heels of what happened in august where u.s. stocks clearly were

the underperformer to other asset classes and regions in the world. keep in mind that now even with this bounce today, the u.s. stocks are up 17% year-to-date. they have been the declared outperformer so far in 2013. nothing wrong with a little bit of a pullback here, and a respite, and the direction of stocks at least on the near-term basis, folks, we think it is going to be covered with uncertainty. stocks in general and the investments in general don't like the uncertainty, and that is why we could see a volatile period of stock returns for the next four the six weeks minimum. >> well, tobias, we have a litany of concerns that could trouble the market for septem r september, and i wonder though, if the fact of up almost 70 points on the first day of the trading month which has dictated the rest of the month, august being the downside, and all of the necktive negatives lining

today enough to trump it? >> no, people walked into the weekend nervous about the potential of strikes, and this is now pushed out to a week or two with more uncertainty. i agree that unsecertainty is n a trend -- is not a friend of the markets. so we wondering what is going to happen with the resolution, and the tapering and these are -- >> fundamentally, what do you say to people? what is the advice? >> hold off and we want to see greater interest dot correlation, and panic among the investors and we are not feeling that people still want to buy the dips. they are still thinking in those terms. we want to get them afraid of the market, and that is how we started the year, and it is not where we were in december. >> you have in the sense, brian, mimicking that? >> well, right. sorry we are not causing any kind of a back and forth

nonagreement today, but i would use the term complacency, and over the last couple of weeks like tobias, we talked to a number of clients and people are complacent, and when you have that after a big move in the markets, we think that people are surprised that the market is down in august and surprised going forward that we will see more weakness and they are not positioned accordingly, and that could in turn provide a great entry point for the true investors using the fundamentals to pick stocks. so we think that we are heading into more of a lower correlation environment, higher stock picking environment, which is very good for tech which tis longer term. >> okay. guys, we will leave it there. thank you, brian and tobias. >> up next, a former retail ceo weighs in on the state of the industry from the teen retailers to the department stores. we will hear from the ceo of staples and about what he sees coming up.

in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

a lot of kids are heading back to school today, but the season has not been kind to office supply retailer staples in earnings missed last month and the industry in general has been facing in a decline of consumer spending and business. our next guest says for the office retailer to turn it around they should sell apple products. we are joined by the former ceo of staples and joining us from newton, mass. tom, good to have you back. >> good morning. >> a lot of people sort of little concerned about staples here, because the margins are beginning to come back in, and the cds spreads are widening and competition from amazon, and how do you grade the turnaround? >> well, if you think about it. we started staples riding a wave dr

driven by technology, and as the linear growth and the printers and all in one devices and the geometric growth, and everything in one was great. but than fox -- thanks to the printer revolution, people are not printing as much. there is a tremendous amount of margins and the accessories for appl apple, it is trying to head that way, and certainly the peers are as well. two, clearly, there is too much square footage out there, as more and more things are sold over the internet by staples, office depot, office max and amazon and others. so you need smaller stores and dramatically downsize your stores and staples has a lot of talent in that area, so they will pull it off successfully. fin finally, i think that to get the merger done and take out the capacity is a good thing for the industry. >> we have a discussion of the

back to school season in general, and it is delayed as the consumers are accustomed to waiting for discounts later and later in the season, and is that what is happening or is this about broad consumer weakness in the back half? >> well, because labor day is so early this year, the season was compressed soon into back into august and in some case back in july, and you saw the july numbers which for most of retail were putrid and august is going to be better, but not that much b better. i think that the consumer may have some money at hand, but it is squeamish given the uncertainty of the obama care and the taxes and the deficits and what is going on around the world and so forth. that is a very, very serious problem that can only be fixed by the improving e kconomy. >> tom, speaking of the management, and while we have, i know that you are a gop stalwart and a friend of "mad money"mitt

and any comments over the previous weekend with a personal or political or economic respect? >> well, i loved game theory, and my thought is that you don't make a threat that you don't intend to keep. so when president obama said he would not go for chemical warfare, he has a box out there with iran looking on curiosity relative to their own situation with nuclear warfare, and so you have follow there with the threat, but it is one that you wish you never made to begin wi with. >> yes, that is what a lot of people are saying this morning. tom stemberg, the former ceo of staples. >> thank you for having me. smells like a deal. consumer products company jarden buying yankee candle for nearly $2 billion. martin franklin, and the cereal

acquirer will join us live for an exclusive interview right after this break. ile that i rea- tdd#: 1-800-345-2550 playing this and trading. tdd#: 1-800-345-2550 and the better i am at them, the more i enjoy them. tdd#: 1-800-345-2550 so i'm always looking to take them up a notch or two. tdd#: 1-800-345-2550 and schwab really helps me step up my trading. tdd#: 1-800-345-2550 they've now put their most powerful platform, tdd#: 1-800-345-2550 streetsmart edge, in the cloud. tdd#: 1-800-345-2550 so i can use it on the web, where i trade from tdd#: 1-800-345-2550 most of the time. tdd#: 1-800-345-2550 which means i get schwab's most advanced tools tdd#: 1-800-345-2550 on whatever computer i'm on. tdd#: 1-800-345-2550 it's really taken my trading to the next level. tdd#: 1-800-345-2550 i've also got a dedicated team of schwab trading specialists. tdd#: 1-800-345-2550 they helped me set up my platform the way i wanted, tdd#: 1-800-345-2550 from the comfort of my home. tdd#: 1-800-345-2550 and we talked about ideas and strategies, one on one! tdd#: 1-800-345-2550 really gave my trading a boost. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 after all, i'm in this to win, right? tdd#: 1-800-345-2550 open a schwab account and learn how you can earn up to 300 tdd#: 1-800-345-2550 commission-free online trades for 6 months tdd#: 1-800-345-2550

with qualifying net deposits. tdd#: 1-800-345-2550 call 1-888-254-2600 today. tdd#: 1-800-345-2550 ♪ [ male announcer ] some things are designed to draw crowds. ♪ ♪ others are designed to leave them behind. ♪ the all-new 2014 lexus is. it's your move.

♪ about an hour into trading a and some of the stories is 10:30

on the east coast and 7:30 on the west coast. rising to 57 and marks the fastest pace of sector growth in two years. coca-cola is one of the blue chip losers as it is downgraded citing doubts of sales in the u.s., and weakening prospects for merging marketing. and tesla hitting a new all-time share. shares of the electric car are up 400%, carl. >> thank you, carl. and now the deal done with verizon and vodafone is done. the window for the deal is wide open given the interest rates at all time lows and the capacity for the corporate bond market that has increased marketedly over the last few years and the year opened with that process in some ways starting, but without a willing partner, and yes, they are partners everyday in verizon

wireless, but was vodafone ready to come to the table and get something done? it took a while. anyway, the bankers here, somebody has to be choreogra choreographing the move that was necessary as the window started to close. and vodafone did seize on a strategic direction that said we want to finally exit the investment, and it is the right time. lowell mcadam and victoria sat down and put the deal together over the next month by the various advisers and he is going to include huge offerings in the bond market and $130 billion price tag. it is a number beyond what many had expected when we first believed that it was a real possibility this year, but it is one that ceo lowell mcadam says it is not to be concerned about if you are a verizon shareholder. >> this isn't our first rodeo.

we looked at what we need to do to invest from the spectrum perspective and as you see from the an nounment, we are eps creative from the start. we are in a strong position financially, but we have the assets, david, whether it is the cloud platform, the security platform the machine-to-machine platform the find the next gear. >> that is a key question, will they find the next gear and j t justify having paid $130 billion in cash and stock to verify the 45% of the growth rate they have seen or perhaps beyond that? will the margins be 49%? no doubt verizon is the bester performer of the wireless companies, but it faces new competition from t-mobile, and spri sprint. and keep eyes on the stock of vodafone, but a it is

interesting to note that they are returning most of the proceeds to the shareholders and getting the verizon stock directly, and many of them can't continue to own verizon, because they are in the uk and they will have to sell it back. but what is vodafone going to do? is at&t perhaps interested in woog it to fulfill its own ambitions in europe and around the world to continue the grow. perhaps that is another leg of t the story that is yet to come. it could take some time in developing. >> will they be liberty media? >> that is not likely at the point, in part, because they did not take in enormous proceeds and john malone wanted a tax-free transaction and one way is to get the verizon stock and trade it to him, but they didn't do it, because it is going directly to the shareholder base. so liberty deal not seen likely, simon. tomorrow, we have a special guest on "squawk on the street," bruce berkowitz, the fund manager of the year many times and we will be talking about the

anniversary of the conservativeship of fannie and freddie, and big interest in st. joe's, and we will talk to him about it tomorrow. and yet, we are told that jarden is agreeing to buy yankee candle, the country's largest scented candle company for roughly $120 million. welcome to the program, sir. the cereal acquirer. it is the cash deal and biggest ever and why this one and why now? >> well, if you think about it, well, jardenesque brand candles are about as jarden as you can get like the playing cards and matches. the reality is that we had the opportunity, and it was in the

something that we could move quickly on simply by the fact that the company had gone through a sales process. it had not been completed and we came in after the fact, and it was a great fit for us. we looked at the business before about seven years ago, but the reality is that we had the opportunity today and we are happy with the opportunity. >> and the timing is fascinat g fascinating. they could not get $2 billion for it in march and then tried to refinance and they couldn't do it, and now from the shadows you emerge to do the deal. it was a waiting game for you, wasn't it? >> yes. we don't ar p tis pate in the auctions, but this did create a opportunity, and we looked at it fairly con ssistently, because is a brand that comes to 35% of sales for the overall company and brand an consumers and the outdoor solutions are now rou roughly the same size which balances the portfolio the way we wanted it.

again, if there were an auction, we would not have made it, because we are opportunistic with the approach. it is not a policy, but we found 10-plus creative to us. and it surpasses the benchmark of 5% or greater. >> martin, it is david, and you are paying 5ebitda, and that is not terribly good, is it? >> they think that 9.9 times is the multiple, and the reality is that we trade at 9.5 times. from our perspective, we bought businesses over the years in the six to eight times bandwidth and

this fits within the bandwidth and it is a high quality company with strong free cash flow characteristics with the dominant and the leading brand position and by far and away the largest scented candle company in the industry. it has a lot of growth prospects and comes with a great management team, and we think it is well worth it. >> quickly, martin, you have a decent reflection for us in terms of the health of the consumer, so quickly go there. how are things looking given the diversity and the brands that you mentioned, what are you seeing out there? >> you know, we feel good. i think that our organic growth is falling in line with that which we have told the public in the public statements which is in the 3 to 5% range. the consumer is definitely out there. i think that they are looking for value.

we see the higher end items selling well. it is not overall a bad scenario. we see stability in europe. it is not a high growth return to growth in any way, but it is definitely stability, and very modest growth over there, andt latin america continuing to be r relatively healthy for us as well. so we can't complain for it on our end. >> briefly, a lot of the viewers would be interested to know that you are a primary supplier of the copper-coated zinc little pieces that turn into pennies, and the u.s. mint and the canadian mint use. arefident in the business, because there is a continued debate over the future of penny. >> a number of debates over the future of the penny. but for us, one thing we take a

long view, jordan, on the value of the businesses, but we make enough coinages for other countries that what happens with the penny, the zinc operations will continue the grow and be healthy. we are not the debate the reasons for the penny or not, but the reality is that there is a sense of emotional demand for the penny this the united states. i think there is a lot of talk about creating the penny with the price of zinc, but the price has since receded. for years the government has made positive seniorage making the money for the population, and we believe it is going to be in existence for at least a f e five-year period, and i don't know what will happen post that, but we make denominations for other countries including canada. >> and so life goes on with

martin and amen to the penny there. thank you so much. >> i think it is true. i think that the people love the p pennies. i don't know about you, but a strong emotional voice of demand. >> really? i drop them. >> and former hewlett packard car carly fiorini feels about the acquisition of wireless phones. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.

tens of thousands of dollars in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪

[ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] [ telephone ringing ] now a waiting room is just a room. nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans.

>> welcome back this morning. nokia shares are surging after striking a deal with the microsoft core business. this is what microsoft ceo steve ballmer had to say earlier this morning on new york stock exchange. >> we believe it is going to create opportunities for window device makers and not just on the phone, but the tablet and the pc side and companies like

dell and lenovo and hp and many others have been fundamental to our success. what is good for windows phone we believe is good for the overall windows ecosystem. >> is this a good deal for microsoft? joining us is carly fiorina joining us on the phone. >> good morning, kelly. >> if it was windows intell intell, and is nokia at the new pa partnership here? >> well, i'm not sure. on the one hand i think it is sort of logical, and microsoft has lots of cash. banning on the fact that they will make more acquisitions, and nokia has been a long time partner, and on the other hand nokia has 15% of the share of the cell phone market, and 3% of the smartphone market and 32,000 employees who are coming over. i think that one of the reasons that their share has been

dwindling is because the platform, the microsoft platform hasn't kept up with the tee chuchur -- features or the applications of samsung or appel. so i'm not sure it is a great strategy going forward, but it is logical given what microsoft says they are tri tying to do. >> well, the shares are done, and the microsoft shares are down 5.66% on heavy volume. carly, is this about business fundamentals or really about people and stephen elop in particular? >> well, i doubt it is about stephen elop, and he is not what microsoft needs going forward and obviously, microsoft needs a strong manager at the top, and microsoft is a big complicated company. as i have said into show before, you need somebody who understands big businesses, but on the other hand, microsoft also needs someone who can see around the corner. who can see what is coming and place the innovation dollars and

the marketing dollars around what is coming next and not what has been. this is more perhaps an acquisition of what has been and i'm not sure it improves their position going forward. . >> carly, can you see a vision unfolding from big tech, simon here, but can you see what hp and cisco have failed to do, because it is about mobile, and it is about roughly -- i mean, it is consumer electronics, isn't it? whatever you think of nokia, it is good at consumer electronics if not the cutting edge of smartphones and could you kind of see them breaking in a sense where other big tech companies have not? >> yes, that is totally fair, simon. that is why i said it is logical in many ways, and look, nokia is a great company. i know nokia well. they have great employees, and they have a great innovation engine, but to make this a great

acquisition to do all of the things that you have suggested and it is certainly possible, it will require a great deal of marketing investment, and investment in innovation specifically, because one of the reasons that the nokia handset has not worked particularly well is the microsoft platform that it is based on is clunky. so the marketplace hasn't embraced it, but is all of that potential there? yes. was the price of the deal actually pretty good? yes. does microsoft have a ton of cash so they won't miss $7.5 billion? yes. those are the reasons it makes sense, but it is not a slam dunk. >> they had a partnership already though, and carly, there are those who say partnership and ownershipb, and incrementally what are they getting that they didn't have already? >> good point. as you say, they have been partners for a long time. look, we should say that this

solves a huge problem for nokia. a huge problem for nokia. what microsoft gets is the continuation of this partnership. it was not clear to me that nokia had the financial wherewithal to keep investing in their hand set business. they were clearly moving their emphasis elsewhere to their infrastructure business, and so i think what microsoft gets is, okay, we get 32,000 employees, we get a market position, weak though it may be. we get a device that fits on our platform, and i found bomber's comments kind of interesting when he said he thought this was an interesting to enrich the whole ecosystem, and he particularly mentioned dell and lenovo and hp, and that's kind of an intriguing possibility. >> a big deal made by an outgoing ceo. carly feor reno with her thoughts this morning. thanks. >> thank you. >> actually nokia has twit the mark market share na apple does.

coming up, rafael nadal is going to the u.s. open quarterfinals, but he already holds one title for the tournament. you'll just have to watch to find out when "squawk on the street" comes right back. are you looking to spruce up your wardrobe this fall? you can't go wrong with some new shirts, especially the cnbc t-shirts. signed by the entire "squawk on the street" gang. you want them? all you have to do is guess friday's nonfarm jobs number. tweet your guess to @sidewa@siq street. you have until 8:29 a.m. eastern friday morning. good luck. (announcer) scottrade knows our clients trade

and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." so you want to drive more safely? of smart. stop eating. take deep breaths. avoid bad weather. [ whispers ] get eight hours. ♪ [ shouts over music ] turn it down! and, of course, talk to farmers. hi. hi.

♪ we are farmers bum - pa - dum, bum - bum - bum - bum ♪

welcome bark to "squawk on the street." i'm dominic chu. shares of tie tsaito kinetics taking a dive today. amgen is continuing another version of testing and will ultimately determine the future of this heart failure drug. back over to you.

>> thank you very much for that. when we come back, why this watch may cost more than your house. we will explain after the break. ♪ [ male announcer ] staying warm and dry has never been our priority. our priority is, was and always will be serving you, the american people. so we improved priority mail flat rate to give you a more reliable way to ship. now with tracking up to eleven scans, specified delivery dates, and free insurance up to $50 all for the same low rate. [ woman ] we are the united states postal service. [ man ] we are the united states postal service. [ male announcer ] and our priority is you. go to usps.com® and try it today. if then schwab is the placeing your trato trade. higher level, tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550

see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550 get all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commission-free tdd#: 1-800-345-2550 online trades for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-800-345-2550 the world is changing faster than ever, creating new opportunities for those who stand ready to seize them. in a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your business inside and out today.

at cognizant, our flexible, collaborative approach helps forward-looking companies not only run better, but run different... to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because now more than ever, the future belongs to those who challenge the present.

rafael nadal is the man of hour but he's not just known for his skills on the tennis court. >> more than 700,000 people are expected to come to the u.s. open this year. the man to watch is rafael nadal. he could reach the number one in the world if he wins this turn am, but he already holds one top title, and that is the most expensive watch in tennis. nadal pulling out another ama amazing victory last night against philipp kohlschreiber. this brings him to 53-3 for the year. one of his best years ever. one of the secrets to his success is his watch. it's the rm 2701 and it costs $690,000. we'll tell you of what makes this watch is expensive. it's not gold or diamonds. it's engineering.

nadal's forehand clocks in at over 4,000 rpms so this watch is specifically designed to withstand gforce of more than 5,000 gs. it can do it because all the watch movements are held in place with microscopics cables and pulleys. it's all made from carbon noano. it can float inside the casing and it with stands any shocks. it's incredibly light. just 19 grams. lighter than seven pennies. the standard issue strap with this is not alligator skin. it's velcro. now, the company is already only making 50 of these so we didn't have one today but they're already selling out. guys, back to you. >> that is incredible. the sad thing is federer now is going to want to get one. i don't know if you read "the times" coverage of his loss. it's like they're writing him off for good. >> especially on a court like this one, they thought he might

be able to salvage something of what now appears to be the twilight of his career. unfortunately, losing the way he did last night is not the way to do it. >> he's not even 30 years old. >> robert, great piece. thank you so much. robert frank out at the u.s. open. if you're just joining us this morning, here is what you missed earlier on. welcome to "squawk on the street." here is what's happened so far. >> we will have three businesses continuing, each a leader in their respective areas. we believe this is a good transaction. >> the economy is healing but they will be exiting because they're worried about the cl collateral damage. >> it's just catch up, catch up, catch up, and i just think that it's tough enough for apple to beat samsung. i don't know how these two companies combined, very expensive successor if that's

what this is about. >> it makes you wonder if there's room for a number three. >> are you going to be in a position to assure that kind of growth with stronger competitors and a higher debt load? >> we're in a strong position finally, but more importantly, david, we've got the assets, whether it be our cloud platform, our security platform, our machine to machine platform, to really find the next gear. we talk about there's always a higher gear around our business. we think that there's a great opportunity and if anybody ought to be worried, it ought to be t-mobile and sprint. >> it's a cash deal. i think it's your biggest ever. why this one, why now? >> it was a great fit with us. we've looked at the business before. we looked at it about seven years ago, but the reality is we had the opportunity today. good tuesday morning. we're live at post 9 at the new york stock exchange. let's get a chaeck on the markets. the dow settling off of its

highs. still an 87 point gain here as we kick off the month of september. often known to be treacherous with pretty good action. i'll check out the s&p as well currently up about 14 points and the nasdaq is up 41 points. shares of jarden rallying. agreeing to buy yankee candle. and the blackout is over. shares of cbs and time warner rallying this morning after the companies announced a new fee agreement ending a one-month blackout of cbs programming. the terms of the deal were not disclosed but it's safe to say the sart of nfl season this weekend probably do push both companies to get that deal done. syria, waiting on washington. this morning president obama says he's confident congress will authorize military intervention in syria. we'll go live on the ground to bring you the latest. and the lack of action in syria might be helping markets today.

stocks are in the green after a lousy month in august. we'll take a closer look and tell you where stocks could be headed from here. plus, microsoft making a big bet on mobile. the company buying nokia's mobile phone business for over $7 billion. we'll go behind the deal to tell you what you need to know. and pensions a big problem in the land of lincoln. the state of illinois faces a $97 billion unfund ed liablity pension. our jon fortt has the latest live in san jose. good morning, jon. >> good morning, carl. it's interesting, one fact i want to bring up right off the top, value act. i don't know if you have mentioned this on air, which did this deal with microsoft at the end of last week. the activist investor. they actually did not know that this was coming. microsoft has said. so that puts this in an interesting light.

we talked about multiple angles on this deal. one still to talk about is stephen elop who is coming over to microsoft now from nokia. now, a lot of focus going to be on whether he is a good ceo since he now becomes the de facto front-runner to be microsoft's next ceo since steve ballmer is stepping down. a lot of people will point to nokia's stock performance under elop. the stock down more than 50% since he took over three years ago, say he missed a number of things, wasn't wise to basically talk down sim beeian while they still had products in the market, that maybe he should have gone with android instead of windows phone. take a look at blackberry. it's down nearly 80% over that same period of time and arguably didn't have the same sense of strategic direction that elop brought even though it was controversial. one might also argue and elop

has that if nokia had gone with android, it would be in worse shape. take note, samsung is the only one making any money in android hardware right now. it's wiped out for the time being the likes of htc and even google's motorola. i talked to elop just a couple months ago in july when nokia launched the 1020, here is what he had to say about what that device means for the future of nokia's devices down the line. listen. >> important point is that most advanced technologies that you see today with the lumia 1020, elements of that will find their way into lower priced devices over time as well. the result of that is we take our flagship capabilitcapabilit them available to more and more people in limited ways over time. >> microsoft highlighted that today as an important part of the strategy going forward. that in emerging markets some of the low cost nokia phones will be a delivery vehicle for microsoft services.

so at least for the time being it sounds like they're planning to hold onto the cheap phones as they continue to try to build out the high end phones, guys. >> all right, jon. thanks very much this morning. we want to turn to another big deal in the mobile space today, vodafone agreeing to sell its 45% stake in verizon to verizon communications for $130 billion. >> almost from the time they formed this partnership when the merged the old air touch in as verizon wireless as it existed back many years ago, verizon wanted to buy out its partner, vodafone. this year they really saw an opportunity to do that given that interest rates were at historic lows and the ability to issue vast amounts of debt in the corporate bond market perhaps unparalleled. that window, well, it was open. the convincing needed to be done on the vodafone side but eventually it was. the deal announced yesterday under which verizon will pay $130 billion to buy that 45% stake that vodafone owns.

half of it roughly is going to be in verizon stock. that's a concern because much of that stock will be issued to institutions who actually can't own it. they are uk-based, for example, and there's a fear they will be sellers when the deal closes in the first quarter. you're seeing some pressure on verizon shares today. also seeing pressure in part because the company is taking on an enormous amount of debt. no real worries in the bond market they're not going to be able to get it done, and for its part verizon will still be only investment grade. nonetheless, it's becoming more competitive arena in wireless over the last few months with softbank having taken control of sprint with t-mobile seeing new life after its merger with pcs. some questions about whether verizon can maintain it's strong growth rate and strong margins in the face of that competition and with that higher debt level. not to mention maintaining a dividend. we spoke to the ceo of verizon earlier. here is what he had to say. >> we need to have the highest quality networks to take care of

our customers. we're going to pay down this debt in a reasonably short period of time to get that one notch downgrade, get that restored, and then the dividend is right up there in the top three priorities for us. i think the board showed that yesterday in their action when we unanimously approved another increase in their dividend. >> deal will be about 10% accretive. that's in part because of the incredibly cheap cost of debt. buying an asset, 45% of which they didn't own, that contributes enormous amounts of cash flow. but still interesting questions about the future for this company, namely verizon, which sees continued and perhaps even stronger growth. and vodafone which apparently saw this is the opportunity to exit. one can imagine perhaps they don't see quite as strong growth for what has been an extraordinarily productive investment for that company. they return a lot of the proceeds to their own shareholders now in the form of

that verizon stock and cash as well. so vodafone will have to see what happens there and whether there's interest from at&t in extending its reach. that will play out over some time. >> a lot of people argue vodafone's future might be more interesting than verizon's future. >> we know what it is now for sure with that 100% ownership. u.s. markets starting off september on a pretty good note. let's bring in david bi anco. not bad, at least on the first trading day. we know what we have in store this month, big news events, and then historically the month has not been kind. >> that's right. it's a good start to the month and september and october are often feared by investors but they're just volatile month. some of the best performance has come in september and october and into year end. i think of it as being the make or break time of year. i like what i see, not just the market up, but to me the most important data for the month of august that we just got was the

manufacturing. second month in a row of strong production, pick up in orders, export orders. it looks like u.s. manufacturing and i'm not wholly surprised by this because we've seen a good pickup in chinese activity as well, seems to be a good relationship between china activity and u.s. manufacturing, and that bodes well for u.s. business spending, and if that improves, the earnings outlook will get a lot better. >> if anyone missed it, new orders up to 63 for the month. we could use a couple months of those types of numbers. that said, people are worried about the ten-year at 2.9%. you say it's not the bogeyman that people want to make it out to be. >> first, everybody points out rising yields are usually correlated with improving economies. that's welcome. we know we've been in such an abnormal situation of monetary policy, what else will be affected as things normalize in terms of yields and currencies? we've seen yields climb higher. we've seen the dollar strengthen, particularly versus emerging market currencies. and so far the euro has held up

very well and oil prices, partly geopolitical, but not only that, commodity prices in general have held up very well against higher yields, stronger dollar. that bodes well for the business spending environment. >> you say 15 forward pe not threatened until we get closer to 4, right? >> over 4. and more importantly depends on the long-term real interest rate and i'm assuming inflation is 2, slightly over 2. well over 4 before 15 forward pe is threatened. >> what do you think is achievable for easternings next year? >> a lot of the data has been of weak business spending. it's been one of the missing parts of the strength we've seen in the u.s. economy with consumption and improvement in jobs. with some of the data that i'm sighing, i'm feeling better we get well into the upper single digits, 5% to 10% earnings growth. and the pension -- >> dollar terms, roughly where for the s&p 500? >> 115 to 120 and closer to the higher end is the type of

earnings i think is what's becoming most likely, and this would put us 1850 is my year end target for 2014 end. >> 2014. obviously the first part of this year was driven to a large degree by dividend hikes. can they keep up with a treasury yield that's rising? >> we don't expect those defensive and bond substitute sectors to go down but we expect them to underperform. i would advise being underweight all those bond substitute sectors. health care is a sector where there's defensiveness and some decent growth but i thinking about tilted towards cyclicals is what you want to do especially where thep es are cheap. what's interesting in this market, many complain it's being an expensive market, 45% of the s&p 500 is available at 12.5 times earnings. financials, energy, and technology. >> financial, energy, and technology. >> 12.5 times earnings. >> the ones to watch. david, thanks very much. >> my pleasure. >> chief u.s. strategist at deutsche bank. all eyes on the middle east now and in washington white house

pressuring congress to approve military action against syria as soon as possible. we'll go live on the ground to the middle east shortly to bring you the very latest. but first, rick santelli talking to the governor of illinois today, rick. >> i am, indeed, kelly. here is the governor now. the honorable pat quinn. we will be talking about everything illinois and chicago. i certainly hope that we can make a better commercial than, hey, we're not quite as bad as detroit. he has a bucket full of issues he has to deal with. the one thing he has done, no pay for legislators until they get some compromise on underfunded liability payments. we're going to talk about all of that bottom of the hour. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy.

and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."

situation in syria moving to congress. this morning president obama says he's confident congress will pass a resolution authorizing military action in syria. nbc's ayman mohyeldin has the latest on the ground in beirut, lebo lebanon, this morning. >> reporter: good morning. it was another grim milestone reached. today the u.n. agency for refugees says more than 2 million refugees have left syria. many are coming to lebanon which is in a very unique position. this country has already seen some of the kind of violence that has plagued syria inside its own borders and it's afraid that could worsen if the u.s. goes ahead with this military

strike. now, in addition to the 2 million that have left syria, there are about 5 million inside the country that have left their homes, that have left their cities trying to find refuge. many of the neighboring countries are starting to buckle under the pressure of this humanitarian crisis. the syrian president -- newspaper in which he said he would defend his country and that any attempt by the u.s. to attack syria would simply enhance terrorism across the region and across the globe. so there is a lot of ominous signs here, if you will, that this conflict is still going to last for some time depending on whether the united states decides to pursue military options or not. in addition to that, you have the french president now saying his country will not go it alone without u.s. congressional authorization. so a lot is riding on what happens in washington, d.c., in the next week. paul, kelly? >> and in the meantime, the death toll continues to raisise.

let's send it over to dominic chu at headquarters. >> kelly, another day, another record high for tesla. the stock has gone up by about 410% so far this year. now, with a current market value of around $21 billion, tesla is worth about 43% of what gm is worth, just for some perspective, and it's worth more than companies like valero energy and macy's. certainly tesla shares on the move off their session highs right now, carl. back over to you. >> 43% of g m. a lot of movement in microsoft. the stock down 5% after they agreed to buy nokia's cell phone business. i'm reading nokia is having the biggest volume day after as a new york stock exchange listed name. a lot more on what it means for both companies when we come right back. are you looking to spruce up your wardrobe this fall? you can't go wrong with some new shirts, especially the cnbc

t-shirts. signed by the entire "squawk on the street" gang. you want them? all you have to do is guess friday's nonfarm jobs number. tweet your guess to @squawk street and don't forget the #nail the number. for all the official rules and details go to stocks@cnbc.com. you have until 8:29 a.m. eastern friday morning. good luck. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. otherworldly things.

but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ suddenly, faraway places don't seem so...far away. nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans.

ever ybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

the market is moving on some breaking news. let's getjavers with the latest on syria. >> keeper of the spouse jo-- hoe john boehner said he's going to support the president of the nights. he think this is military intervention is something the

united states needs to do. that's significant because boehner is the leader of house republicans. that was seen as one of the toughest constituencies for president obama. boehner saying he's going to support this and he's going to urge his colleagues in the congress to do the same, carl. >> eamon, at the same time, we're watching the market reaction here. the dow is off about 30 points since that news out. the ten-year just slipping a little below the 2.9% line it was above earlier. thank you very much. getting back to that nokia and microsoft deal, shares of nokia soaring on news of a $7 billion deal with microsoft. shares of the buyer microsoft trading lower and by almost 6%. let's take a listen to what microsoft ceo steve ballmer had to say about the big deal earlier on cnbc. >> we really kicked this journey off 2 1/2 years ago with a partnership with nokia to do windows phones, and that partnership has yielded some

very good results from literally nothing two years ago to 7.4 million windows phones in the last quarter alone. we've been growing 78%, but we know we have a lot to do. >> fojoining us is kim forrest. kim, good morning. >> how are you? >> great. thanks. look, curious about the holding you have in microsoft now as you see shares off 6%. what are you thinking here? >> well, i guess we're going to have to really do some soul searching here to see if we want to own a phone company. we've taken a pretty dim view of the makers of phones over the years. we have not really owned anybody in this space, and, you know, microsoft in their declaration a few months ago saying they wanted to become a devices company, i guess this really

does show they really want to become a devices company, and anybody that holds this stock thinking it was a software company has to really think long and hard about where this company is going. >> kim, it's a great point, and so as you look at this acquisiti acquisition, you view it less as an add-on and more as a strategic shift. is it one you will presume will be continued on whoever follows steve ballmer as ceo? >> well, yeah. that's the kind of super interesting thing about the timing of this. it was just a couple weeks ago where -- i guess that's all, feels like longer, doesn't it? steve said he was going to step down in the next year, but this certainly feels like it would have been something you would have left to the next person that's going to run microsoft, and yet here we go doing a major acquisition. >> kim, i mean, your sigh at the top of the interview sort of says it all because we know how much land mines are in the phone space, but it's not like pcs were doing bang busters either.

they have migrate somewhere, don't they? >> yes and no. i have always sen micen microso an enterprise company. maybe a lot of people who hold the stock will buy in, but that's just -- that's the big question, where do they see this going and who are they really serving with this acquisition. >> it's interesting because there is turmoil -- not turmoil but change certainly afoot in other parts of the market as verizon looks to get rid of that vodafone stake, buy back the rest of the business. so do you look at that deal as well, kim, with a wary eye as to what the future holds for the mobile space? >> not really. we're always going to need to connect from whatever device we use back to some sort of server or else it's just not fun to have a device, right? so the we're pretty positive --

actually, we're owners of verizon, too. we're very positive on that deal because it's not really a discontinuation of the business at all. it's bringing what they owned all under one umbrella. so, you know, that looks like a good deal. we like mobile for the long haul. i guess it's just things that are so faddish about do we like the samsung phone, do we like the iphone? as a consumer, you change all the time and you're not married to any one end device. >> finally, kim, does it make you feel any differently about blackberry and the notion that, i don't know, one day a lenovo tries to do what microsoft is doing? >> i think it just highlights that that company should be and probably is up for sale to a partner that can make it grow somehow. and the big question is who is going to want to buy it. >> kim, some great points this morning. i hope you keep us posted. kim forrest, joining us from

fort pitt, a big owner of microsoft shares. >> people literally tweeting about the exasperation in kim's voice. when we come back, the problems with pension. the state of illinois has a big one facing a $97 billion unfunded pension liability. we'll find out what illinois governor pat quinn is going to do about that in a few moments. plus, the bells are about to sound across europe in two minutes, in fact. mixed day over there. we'll talk about what that may do to our afternoon session in just a moment. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550

then schwab is the place to trade. tdd#: 1-800-345-2550 unfunded pension liability. learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550 get all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commission-free tdd#: 1-800-345-2550 online trades for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-800-345-2550

the european markets are closing now. >> welcome back as we watch the dow give up its gains, simon. we look to see what happened in europe as the trading session closes out there. >> you could look at that map and say, hey, where is the no action in syria bounce for the moment? of course, they were open yesterday so they had it yesterday. traded through the labor day holiday and a gain of 1.8%. it was a great day for european markets yesterday and that's what we're picking up from. yesterday the data was quite good as well. what's interesting is the ecb meets on thursday and arguably american ceos are doing what the ecb has failed to do, a massive injection of qe as a result of buying so many of the assets. it's not just vodafone or nokia. bridgepoint announced a buy in austria. the money keeps coming across the atlantic. the big one is nokia with this big short squeeze as a result of the deal done with microsoft. you see we're off the highs. we were at 50% as people who were short the stock were forced

to rush to buy that back. it's been a great short. it was originally over 20% of the stock was outstanding and on loan. now it's just 12% but obviously a lot of people caught on the wrong side of that. the immediate question for nokia is where will it put its cash pile? and you see these network equipmentmakers have surged on expectations they could be taken over. and vodafone very much in the spotlight. that stock is down partly because fund managers that hold vodafone, if they hang onto the stock will be physically given verizon stock and they won't be able to hold that so some tempted to buy at the moment. let me mention we're three weeks away from the german election. like prize fighters, each side emerged on television on sunday night. their only tv debate. the data from germany is not good. some questions about the eurozone's largest economy. back to you. >> the retail sales last week weren't that much of a barn

burner. >> it appears to be slowing. >> thank you, simon. let's bring in mary thompson as the rally basically goes away. >> it really did. we started to see the market stumble going into the european close and as headlines crossed that house speaker john boehner said he would support any limited strikes against syria and that his colleagues should as well. the dow was up well over 100 points. you can see it's given up almost all those gains holding on to just about a 22-point gain right now. the nasdaq up 27, the s&p up about 8. what we also saw is the yield on the ten-year come off its session highs when those comments came out as well. some of the rates sensitive stocks had been under pressure today because yields were climbing. the reason being, we had good manufacturing data here in the u.s. on the heels of decent manufacturing data out of china and europe earlier. and so these stocks again which had been put under pressure, they basically maintained their weaker position again on concerns about the higher rates.

economically sensitive stocks also getting a lift in the manufacturing data earlier. they are holding onto them though they have come off their best levels of the day holding onto those gains i should say. commodities in particular getting a boost. i will send with that. these stocks looking stronger today. the dow then again now up just 22 points. carl, back to you. >> mary, thanks so much. illinois lawmakers are set to miss another monthly paycheck as they struggle to come up with a plan for deal with unfunded pension liabilities in that state. we're joining by rick santelli joined by a very special guest. >> of course, i'd like to welcome the honorable governor of the great state of illinois, pat quinn. presiding over a state where the attorney general is the daughter of the head of the house -- >> speak of the house. >> and is going to be on your side in a lawsuit where her father and the head of the senate will all be fighting the issue of withholding pay. before we discuss that i want to

read one thing from the state constitution. membership in any pension or retirement system of the state, any unit of local government or school district, shall be an enforceable contribute you'actu relationship the benefits of which shall not be diminished or impaired. that gets us to the crux of the matter. two issues, do you think you're going to end up in court with regard to challenges regarding some of these underfunded issues and, my hat is off to you that you're not paying legislators to do a job they're not doing and your own salary is included in that? >> i'm holding back my own paycheck and the legislators paycheck. i suspend the appropriation a couple months ago. the bottom line is we have a $100 billion pension liability in this state. i did not create this. i inherited it. we're working on a reform. we need to get it done, but the legislature hasn't put a bill on

my desk. after two years of waiting i decided we will suspend the pay of legislators and i will hold back my own pay. you don't get paid until you get the job done and that should pertain to politics. >> there's several plans in place that aren't exactly the same obviously, but the differences aren't really that large either. i guess give me a down and dirty, when we have a $6 billion payment of which $1 billion is for current workers, we're paying history and we're dragging history along with us. what do you tell a resident of chicago or illinois as to the current services and the outlook there? >> there's a squeeze obviously on our education and our health care and our public services because of this pension problem. it's a cloud over our economy, but the bottom line is taxpayers have been the one up to now that have paid all the liability. $5 million a day it grows. and legislators never had to really deal with this personally.

so when you suspend their pay, they get the message, and i think we've established a ten-person committee to bridge the differences to get a bill on my desk i can sign into law and move forward. it's the best way to help the illinois economy to resolve the pension liability and the suspension of the pay is a key way to get it done. >> rating agencies have not been kind to illinois. i believe since '08, i think there's been 14 down grades since '08. currently we have the lowest credit rating in the union. >> right. >> you're paying a lot more to finance some of your paper, governor. >> exactly right. we have the biggest infrastructure program in the whole country. we're investing $44 billion in infrastructure, highways, bridges, everything like that to create jobs. but we have to pay a premium because of the pension cloud over our economy. reduces our credit rating. the last bond issuance we had to pay another $130 million in interest. so it's really important for the legislature to understand. they're not going to get paid until they get the bill on my

desk that i can sign into law that erases this liability and moves our state forward. >> all right. minimum wage, it's a national debate, but it's also an issue in chicago. now, our current wage is what $8.25? >> it's illinois it's $8.25. i proposed to raise it to $10 an hour. my view is no one should work 40 hours a week and have to live in poverty. there's a fundamental principle that is as old as the bible. if you work hard, you should get paid a decent wage. the best way to grow your economy is to have decent wages for those who work hard. most of those folks are above the age of 21, many of them are of color, i'm very much in favor of raising the minimum wage. >> i guess i always like to look at everything in the extreme, governor. if raising the minimum wage was all it takes and the henry ford used to say i want my workers to be able to afford the product they're working on on the

assembly line. but if it really worked, why not raise it to $30 35 or $40 an hour? >> i think the bottom line is to have a reasonable minimum wage -- >> you don't think the businesses like mcdonald's and walmart which pay more than minute wage -- >> costco is in favor of raising -- >> real quickly. how is obama care going to affect chicago/illinois and what do you think about rolling out this program? is it going to get dicier or is it going to get better? >> there will be refinements and improvements but basically we're going to include a lot more people in health coverage, decent health care. i think it's a very important fundamental right and related to that, rick, is the health insurance exchange is going to help a lot of self-employed -- >> if we can get them open. we're short on time. >> you're my man. >> after you tackle all of these rats nests you want you to come back and give us an update. >> okay. >> carl, back to you. >> an important issue. thank you very much for that

interview this morning, sir. in the meantime we're keeping an eye on stocks down here. the market has take an dive after house speaker john boehner says he will support president obama's call for action in syria. just moments ago, congressman eric cantor also putting out a statement supporting action. stay tuned. we'll get you much more on how the market is reacting and what is potentially next when we come back. ♪ make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you start usi active trader pro today.

♪ ♪ unh ♪ ♪ hey! ♪ ♪ let's go! ♪ [ male announcer ] you can choose to blend in. ♪ ♪ yeah! yeah! yeah! or you can choose to blend out. ♪ oh, yeah-eah! ♪ the all-new 2014 lexus is. it's your move. before their gift helped preserve the point...

before a credit solution was used to expand their business... before trusts were created for their grandkids' educations... they chose a partner to help manage their wealth... one whose insights, solutions, and approach have been relied on for over 200 years. that's the value of trusted connections. that's u.s. trust. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

coming up on "the half," september is usually a rough month for stocks but can a flurry of deals keep the markets moving higher. ed tra ethe traders go toe t over verizon. kelly, we'll see new a bit. about 15 minutes or so. >> scott, thanks very much. we want to talk tech now. weighing in with his thoughts, the president and co-founder and ceo of gazelle which is already an electronics trading company. good morning and welcome. >> good morning. thanks for having me on the show again. >> we've spoken in the past about your line of business and how profitable it has been to

offer consumers a place to trade in their devices. now apple getting into the space in a very big way. so does this give you guys an advantage as people look for pricing for a better deal or is it fundamentally just a competitive threat? >> we're very excited about apple entering the space. we've been anticipating it for a few months now, and at the end of the day it validates the market opportunity that we identified five years ago and completely reinforces the opportunity we see ahead of us. last time we spoke we talked about how the opportunity is driven by changing consumer behavior. and engaging with consumers and getting them to trade in their devices when they upgrade to new devices. so with apple coming in and with their market cloud and market presence, they're going to help change consumer behavior and we believe that we, like a few other players, are going to benefit. >> the story of the morning is

this microsoft/nokia deal. would you expect to see more nokia phones traded? ? >> we'll see. it's trivdriven by what kind of innovation they're able to produce and see if they compete effectively with apple and sang su samsung and google. we haven't seen much in terms of nokia trade-ins yet. >> what about blackberry? >> you know, blackberry, we're seeing some distant trades from blackberry and obviously nothing compared to any of the other rems. what's interesting is demand for blackberry is especially in countries in africa and the middle east is really high. again, there is just a shortage of supply here in terms of inventory that we can get our hands on because blackberries do not retain as much value as

apple phones, as high end samsung devices. >> but, wait, israel, it's interesting though but are you suggesting for people who have a blackberry now, they might be able to get a decent amount for it because of this demand elsewhere you're talking about? >> they'll get some but nothing compared -- they will for the high end blackberry devices, but for the average two to three-year-old blackberry devices, it doesn't hold as much value. as a result people don't trade them in as much as they do the other devices. >> you had my hopes up for a second. israel ganot, thank you very much. >> thank you. >> marcus lem monis has turned around companies all over the country but this week he's faced with a special challenge. a father/son dispute that threatens to bring down the entire company. marcus will join us live when we come back right back.

welcome back with a quick check on markets. the dow has added less than ten points at the moment, this after coming from house speaker john boehner and leader eric cantor suggesting they will support president obama when it comes to action on syria. the s&p 500 interestingly and the nasdaq are doing better, adding 0.4% and 0.7%

respectively. a nice rally in the nasdaq. the season finiale of "the profit" airing tonight. >> between 650 and 700. >> out the door, car, graphics, and the freezer with $18,500. >> $18,000? how many do we have to sell to pay for this? >> i do have numbers. i do have numbers. they're in my head. >> that doesn't -- i was really caught off-guard when michael went out and made this extravagant purchase without anybody's permission. it's a bold move. >> you can't keep all these numbers in your head and think that everyone could read what you're thinking. >> why can't you trust that i know what i'm doing? >> because i could have spent that $18,000 five other ways. >> the word that comes to my mind is reckless. >> live from chicago, the star

of "the profit" the chairman and ceo of camping world, marcus lemonis joins us. man, business is hard. once you mix business and family, especially a father/son dynamic, that must have been difficult. >> it's tough, and there's really two themes in this particular episode. it's family and business, and it's really the art of manufacturing product yourself. this is a great product, but today they use a co-packer and they give up about $400,000 in margins. it should be a fun episode for everybody. >> is this a situation where the dad wants to play it safe and the son wants to swing for the fences or vice versa? >> i mean, look, like in any household, you have a father who is very conservative and you have a son who is young, has a lot of energy, a lot of great ideas, but he doesn't understand all the inner workings of how the numbers work. and you really want to capture that energy and put it in a bottle but you don't want to let it leak out because it creates some problems, no question. >> and brings to mind any small business owner knows you want to

leave the business to somebody, would be great if it was your son or daughter, but that succession planning when it's in-house is a difficult path to trod on. >> well, you know, carl, i have made a pretty good living off buying what i would consider business that is don't necessarily have that generational planning or don't have a son or daughter that is necessarily qualified to take over that business. in this case you got a young man who is definitely qualified, but he's just a little green and needs about four or five years' worth of i'd say some experience. >> marcus, just curious, there's that deal announced this morning where jarden is going to buy yankee candle and they own a ton of camping brands. any experience you have had with yard jarden. >> we do a lot of business with jarden and they're a fantastic company. i'm pleased to tell you if you don't know a lot about yarden, you should do some research. they're a well-oiled machine and

they know their number and their business. >> is camping world going to sell yankee candles? >> we don't sell candles because we don't want flames and gas, but if they have a product they make a flameless, i will look at it. >> finally, we're going to get some light vehicle sales later in the week. a lot of discussion about what the consume ser doing in the back half of the year. are you sensing any significant weakness or strength as we are in the middle of the third quarter? >> i'm nervous to see the numbers. i have noticed a slight slowdown in the last couple weeks in terms of customer foot traffic in the online demand in terms of inquiries. i'm chalking it up to people just going back to school and we want to be careful not to start discounting things in order to propel business in the back half of the year. that's my advice to auto dealers and automakers. let's let the next three, four weeks play out before we have any movement. >> interesting. always good insight, marcus. we'll see you tonight. can't believer it's the season

finially already. marcus lemonis, the season finale of "the profit." 10:00 p.m. on cnbc. >> time warner and cbs finally reaching a deal to end their blackout in major cities. so was the long holdout really worth it for time warner or for cbs? we'll explore when we come back. . but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ because what you dont know can somethinhurt you.urance,ay? what if you didn't know that it's smart to replace washing-machine hoses every five years? what if you didn't know that you might need extra coverage for more expensive items?

and what if you didn't know that teen drivers are four times more likely to get into an accident? 'sup the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum -bum ♪ clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy.

and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."

shares of cbs and time warner higher this morning after settling that broadcasting dispute. a ends the blackout which left more than 3 million subscribers without access to cbs and they were not happy. joining us is craig moffet. good morning. >> good morning. >> cbs has been leading the s&p all day long. i'm wondering if you think they got the better end of the deal? >> i'm sure they did. if you measure to by cbs got cl closer to what they started with i'm sure it got closer to cbs' ask than time warner's bid. >> can we put any ballpark on the monetization? >> from what we understand cbs was getting something like 55 cents per subscriber before this deal from time warner cable.

after this deal they will almost certainly pass the $2 per subscriber per month deal at some point in the contract that includes one or two additional channels but you're talking about a very big increase. >> we are remarking about how little we heard in terms of people being really unhappy to have lost cbs for the month. obviously that would have changed especially going into football season, but i'm surprised i guess that this is seen as going over so well for cbs or is it just in the financial terms and is there any sort of longer term cord cutting risk this presents? >> i think a lot has to do with when it happened. the last part of august is not a terribly busy month. you know, it depends what g demographic you're in. i hear more about people saying they can't wait to catch up on radon van and thmake sure they' set for "homeland."

obviously as you said football season coming up was really the driver of getting this settled. >> craig, of course, not every network is the number one prime time network in the country. does this deal and all of the dynamics surrounding it set a precedent for the other expirations that are going to start happening in the months and quarters ahead? >> i don't know. i think most players at this point already knew what their expectations were. you know, things have come awfully far awfully fast. it was just a couple years ago that people were talking about maybe getting 50 cents per subscriber per month. now you have a new benchmark in the market of $2. i don't know that that's entirely a function of this deal because i think there were broadcasters that were going to ask for that anyway. but you have a benchmark out there that is a very, very high number, and i think it really speaks to the dynamics of these negotiations more than it does to any lasting legacy of this one in particular. >> yeah.

a lot more painful than anyone anticipated at the get-go. thank you so much. >> my pleasure. >> dow is still hovering 17 points above the flat line but gold up 10 bucks today. >> people were saying gold and oil had seen more reaction on the syria front but they've given up 100 points since futures this morning. >> let's get to headquarters and scott wapner and "the halftime." carl, thanks so much. welcome to "the halftime show." four hours until the close. what started as a very strong day not so much now. the dow still hanging onto a gain but only 18 points. the s&p and nasdaq still positive. here is what we're following. ball mmer's big bet. what does verizon's big deal mean for you and your