problems. it's sort of what i talked about earlier in 2008, 85% of the high yield was either distress or defaulted. today now it's about 15%. >> so we're in much better shape. >> much, much better shape. >> nothing looming, no black swan -- >> nothing that i can see. >> thank you for being here. >> always a pleasure. >> have a great weekend and join us on monday. "squawk on the street" starts right now. ♪ ♪ >> but you've given no clarity as to which path u might take. for all we know, you could be private forever. >> mm-hmm. >> you could be private forever. >> i think we're going to continue to keep our plans to ourselves. >> the ceo, dick costolo of

twitter. >> the white house says it has not made a decision on who will be the next fed chairman but a japanese report is telling a different story and it is having an impact on commodities and the market. >> plus michael dell live in an exclusive interview after taking he founded private. >> twitter filed with the s.e.c. for such an offering, though the details remain secret because of a law allowing a company with less than $1 billion in revenues to file confidentially. interesting circumstances as they tweet that and then tweet okay, back to work. >> do they want to be the new media, the new facebook or the

new media company like viacom? who are they? >> with the $45 price that we talked about yesterday, that does sort of clear some psychological deck, right? big acquisition this week, $300 million. the times this morning reporting they were profitable in disease but that profitability ebbs and flows because of the amount of money they're having to spend to scale. >> a lot of people tell me i've been on twitter for years, i don't see any ads. are they just really good at that? >> there are ads in there, promoted tweets and promoted trends. >> they get some money, get more salespeople. get more salespeople, get more earnings. >> i wonder is that when you raise capital through the ipo and you're going to use it as growth capital. are there plans that continue to focus on the business at hand?

or did you get a sense that they move in different directions? >> they're largely international companies. 70% of their users are not in this country. brazil is going gang busters with them. >> brazil? >> yes. so that requires capital. i don't get the sense they need or want this to be a blowout phenomenon, a blowout event. i think they would love to have this happen under the radar if they could but going public puts them in the spotlight. >> this is very early. a lot of people felt facebook did it too late. >> in their growth curve. >> and then they got -- i don't want to say bailed out because they figured out who to do mobile. twitter is pure mobile. >> better than 50% is mobile. we won't be having a discussion on how they need to catch up on mobile the way facebook did after their ipo. jim, you're the one. you were not happy with a $38 facebook ipo price. what would get your attention

here? >> there are many ways to be able to do deals. when you look at this period of social media, you will see a lot of them came public at prices that really did ruin the buzz. i mean, now you linkedin 45 goes to 90, you had yelp, you had facebook done poorly, groupon done poorly. a lot of it depends on the exchange and whether the exchange does it right. with facebook nasdaq with a disaster. it can be managed. it doesn't have to be google that gave away the store because they did an auction method. they're very naive a lot of companies that come public. i hope that this particular organization will have the pulse, they have the pulse of 200 million people of what will work. they don't let the bankers decide for them. the bankers come in and they bully you. because they say they know more. it's time for twitter to say our viewers know more. >> listen, they have a pretty

strong board of directors. notwithstanding miss costolo's comments, they've been planning this for a while, it's been fourth quarter business at least the last six months to a year. we'll see if they get it done for the fourth quarter. it's not as if they haven't been preparing for this. >> i still believe it can be $20 billion. you can do the back of the envelope and say it's one fifth of facebook. if this is an asset that came in less than that, apple would just go buy them. a google but i don't know if there would be any trust there. and amazon likes the media model, bezos likes the media model. >> he's an investor in this. >> yes. all these valuations that are $3 billion, $5 billion, they're way off the mark. they can do a sliver and do a

very small amount and create a buzz, which i don't like because then everybody who trades gets hurt. i hope they look at the nasdaq facebook and make some judgments. >> this will be an interesting exercise learning how much we've taken away from lessons from last year and whether or not we can absorb some of those lessons. >> i don't know. i think that the exchange -- look, i think by that time it could be intercontinental exchange. >> we'll have a much larger internet related ipo, most likely looks like the first quarter of next year and that is ali baba. that is going to dwarf in size anything like twitter. that's $100 million market value. you may not save all the appetite for this kind of exposure but that's going to be a big one and the same banks

chasing it and as important if not more. >> i'm not sure ali baba, how much of it is banner ads and how much is traditional growth. >> a lot of it is converse. >> it's more like google. >> ebay, amazon meets -- >> i want a piece of that if i'm out there. >> in china. >> true. google's not in china. twitter does have the kind of advertising format that advertisers like. they rebelled against banners. if you're an advertiser, literally you say i got to reach that demo. we all know what the demographic is, twitter has it. you'll throw money at it. that will make investors throw money at it. tonight our documentary "twitter revolution." when we come back, maria is live and exclusive will dell chairman and ceo michael dell. what's next now that he's won that long, drawn-out battle to

take his company private? this is "squawk on the street," live from the nyse when we return. 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.

goldman sachs

as you know by now, pc maker dell is going private. shareholders have approved a $25 million buyout by michael dell

and silver lake partners. good morning, maria. >> reporter: good morning, carl. thanks very much. joining us, the man in charge, michael dell, winner of this contentious battle, found are michael dell. congratulations to you. >> thank you, maria. good morning to you as well. >> reporter: it was a long-fought battle up against some pretty big shareholders, carl icahn. tell me how this changes going forward. >> there are five areas we're going to invest in. the first is really enhancing the enterprise solutions and services capability, investing in research and development and continuing the acquisitions that dell has been doing for the last several years, continuing to grow that capability. the second area is expanding our sales capacity and our channel partnerships through our partner

direct program. we're going to reach more customers and invest there as well. the third area is emerging markets. this has always been a growth area for dell, the next billion customers are going to come from these markets and we're extending our reach there. the fourth is really the pc and tablets and this new area of what we call cloud client computing, the virtual pc. dell has actually been the whole company in our space in the last two quarters to grow both year over year and sequentially in share. and then, finally, we're making investments to enhance the customer experience. so again, it's really about changing our focus from a quarterly focus to more of a longer term, five-year, ten-year focus, doubling down on the investments that are really needed for this company to be able to continue to serve the tens of millions of customers that we're honored to serve every day. >> really fascinating.

michael, you mentioned a number of things that people are talking about today and that is enterprise, number one, which you've spoken a lot about for dell, even though most people look at this company as a pc company. you mentioned pcs. i want to get into that as well mobility. we all know pcs have put the company in a different place. pc sales are declining, they're expected to be down 7% this year, global pcs as well as the following year. how are you going to stay in that leadership position and thrive when in fact this is an industry that is getting its lunch eaten by mobility and devices? >> we think the pcs and tablets and virtual clients actually continue to have a very important role in productivity.

you know, consolidating industries, leading companies can do just fine. if you take a look at dell's revenues and our client business, we actually have, you know, very nice scale in that business. we are much more of a commercial than consumer, though we're growing our consumer pc business as well. again, we're the only ones that are growing share at least for the moment. i think the more important thing is that the client device is part of the end-to-end solution and it's a great way for us to introduce ourselves to many customers, leading into the enterprise, you know, dell now has number one share in servers, in north america, in apj. and soon the world. and dell is shipping more terabytes of storage than anybody on the planet. so we've used this foundational business of client computing and

embassy te extended that into the data center, software, systems management, security. today dell is a very different company than it was five years ago. we have a $21 billion enterprise software and solutions business that, you know, has grown from roughly $10 billion just five or six years ago. quite excited about our future. the opportunity to invest, to really folcus on our customers, get all this distraction behind us. couldn't be more excited, maria. >> what about distraction. a number of people have said this has been such a disaster the last several months, this public fight with carl icahn and t-rowe? did that take away the demand? some customers were worried. in the process they're not going to wait around while this fight is going on, they're going to

move to a competitor. how much of an issue was this battle in terms of customers? >> let me take this opportunity to thank our customers for not being too distracted by it. there was some distraction for sure. the team at dell did a great job of staying very focused. one of our principal competitors also had a 9% change in their business, except in their case it was negative. so we're playing offense, we're on the attack, we're growing, expanding our share. this is the dell that many of you are very, very familiar with and you're going to see it in all of its glory. >> absolutely. let me ask you about that enterprise business. you said revamping the enterprise computing services business is best performed out of the spotlight, i get that, doing it as a private company.

but when you look at an enterprise business, we all know ibm is the leader here and ibm is struggling, putting out proposals in terms of how to modernize the cia business. who do they choose? not ibm. amazon web services. how competitive and tough is amazon as a competitor right now for you? >> this is a very large business space. we just migrated the singapore stock exchange off of their main frame, put it on an industry standard platform powered by dell. we've done 1,300 of these main frame migrations. the thing to remember about our space is this is a $3 trillion industry that's going to be a $6 trillion industry. dell has 3% but nobody has 4% or 5%. it's incredibly disbursed, large number of companies. we're providing the

infrastructure for a lot of the cloud companies that are out there. you know, dell is the leading provider of the servers, the storage, the networking that go into all these clouds that are being built around the world. that's a fantastic business for us, as well as being able to bring news services for companies that want to build their own private clouds, which is really the predominant trend that we're seeing. we've also done a lot to bring these technologies together. we introduced a revolutionary product a few months ago called power edge vertex, which brings together networking, storage server into one platform that's essentially a cloud in a box. service providers, cloud systems, companies, all kinds of independent software developers, large companies, small companies all over the world are adopting this platform very rapidly. >> fair enough but at the same time here we are talking on a

day that twitter is going public and of course announce beiing i going public and twitter benefiting from this huge surge in mobility. where's your mobile product? where is your footprint in mobility? >> twitter's a great customer. eight gre it's a great example, maria. every time a new mobile company gets born, they need servers and infrastructure and storage and companies need to be able to protect and secure their data on these mobile devices. so what we're doing at dell is helping our customers access this information in a secure way, in a protected way and powering those clouds that are being fueled by this enormous explosion of mobile devices. and for sure dell will participate in tablets and all sorts of client devices. we're not getting in the mobile

phone business. we do resell some other leading mobile phone products but really our main business is helping our customers secure, protect their data and access it from any device they want to. >> michael, we're going to leave it here for the live portion of this interview. what i want to focus on now is your legacy. i don't know that a lot of people thought you were ever going to give up this fight. your name is on the door. we'll talk about that on "the closing bell." for now stay right there. we'll continue our conversation for "the closing bell" and i'll send it back to carl at the new york stock exchange. >> maria, thank you so much. when we come back, the futures look pretty good. a lot of news going on. we have an upgrade of intel, a crazy report about larry summers. a lot more "squawk on the street" straight ahead. [ male announcer ] this store knows how to handle a saturday crowd.

♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy.

♪ ♪ we're about six and a half minutes before the opening bell ending the trading week and we got a "mad dash." we want to talk about a couple of big names with big news. disney running into the bell on a buyback. >> i thought this was amazing. if you watched the trading, it was almost as if this was a

shocker. what was a shocker people were expecting a $4 billion buyback to do $6 billion to $8 billion. it does seem disney is generating far more cash flow than anticipated. wow, this company makes a lot of money. don't forget, espn is doing quite well. >> if it were a public company on its own, it would be $40 billion, $50 billion at least in market value. significant buybacks have been the theme throughout the entertainment/media history. >> isn't it something how viacom as done so well -- >> cbs. >> people are saying this is the area people just missed. why is that? do they not understand content? time warner has been amazing. >> certainly on the back of

share reductions as a result of extremely strong cash flows. in the 30 seconds we have, let take a look at verizon. >> i heard a lot of grousing. bonds were priced at a level that was really pretty attractive versus treasuries and i heard a lot of little guys so to speak saying, listen, i was shut out. i'm surprised verizon -- >> they paid more than they might have had to. right away they traded off -- these guys could have saved themselves some money if they priced that a little tighter. >> this was a hot deal. hot! >> $13 billion to pimco and -- >> i think verizon didn't -- well, it a great company. but i would have made it so some of this were available to retail and they just didn't. it was just big boys. meantime the stock -- >> it traded off a little on highly accreted vodaphone, though it is now above the

collar. you lose value if you're vodaphone getting delivered those verizon shares. let's see if we get another winning streak started. opening bell just a few minutes 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. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense.

from td ameritrade. all right, we're going to make it through this friday the 13th together. you're watching cnbc "squawk on the street" live from the financial capital of the world. dow, jim and david, has added 378 points this week, it is the second best week of the year, unless you remember the first week included december 31st. so you're looking at the best full week of 2013. >> fabulous time for big cap investing. look at boeing and united technologies. they are so, so strong.

boeing, remember the t-liner problems? mcnerney doesn't. he put them right behind them. china orders, otis elevator. >> a lot of people at the big board. [ bell ringing ] >> a bit of a commodity. >> over at the nasdaq, women's clothing retailer bebe is doing the honors. ulta salon cosmetics. >> why do i joke about it? it simple, these are the high performing retailers.

when you measure ulta, people say inventory is too low. i went this weekend and it was packed! jersey city, right next to the best buy. i go to my tractor supply, you can't get in. these are high growth retailers. why are the inventories too high? they have an explanation. they have the high-qualityin -- inventory. it costs more. >> carl mentioned we resolved for the time being through the sequester the debt ceiling issue. we've got it coming again. >> oh, i know the shutdown. >> boehner looking for some kind of democratic support. when you read the stories covering what's going on, it

doesn't read well. i wonder whether we should start to take that into consideration again. let's not forget toward the end of last year we were down, down, down, only to rally sharply because it got resolved in that ridiculous way, if you will, through the sequester. >> i read the upper right-hand corner story of the "new york times." it said we're going to shut down in october. i started thinking where is vladimir putin telling us what to do? would he like to get us in a room. this is a real problem. we are going to be siltitting h talking about a government shutdown. i went a little negative on that. people say, cramer, you're too negative. technically people like the market. i keep thinking about how when washington really gets involved, people are like, well, gees, what do i do now with my united technologies? they sell. so you just got to monitor this. this looks worse in terms of now

there's no negotiations whatsoever. >> there's some who don't believe the gop is going to let the government shut down and get slapped with that in the mid terms, if you're looking for some silver lining. >> there's a lot of tea party guys in there. they're kind of pro-government shutdown. and they feel picked over by the irs and they got the beef. >> they're all about overturning the aca. >> so there's a lot of anger down there. if we really go with the idea nothing's going to happen, people are going to say is the government debt going to be downgraded, are we in a situation where nobody's going to be paid? it the same thing over and over again. we have to keep an eye on it because it a real showstopper to the market. >> showstopper today, intel, more than a 2% gain as jefferies has a nerd alert of an upgrade. you mentioned the disney capex over the last few years. that's on intel over at jefferies and that is they spent

double the money taiwan has on new products and now they're leveraged to all the things you always said they should have been. >> the mideast. that's going to get them moving. intel has always waited for apple to call this many. it has basic apple products. look, i like intel. it's a great manufacturer. >> they mention all time high eight times the average of 2003. eight times. >> it's fine. it tough to get excited about fine when we're talking about $20 billion to twitter. twitter is ultra fine. >> there's a big financial meeting on the 19th of september. not a great deal of expectation going into that. they're in the midst of a ceo

search, in the midst of seminal change for the company. a new board member seated potentially in the first quarter. >> don't up think this nokia goes up every day on a referendum of what -- meaning nokia came out clean and microsoft has a second rate phone. we'd be talking about how microsoft has buzz, can you believe how cool bomber is? you just glazed over that. >> i did. i did. >> you damned me with faint praise. >> i did. >> i was looking for a little bit of love on that. >> bomber's not getting a lot of love in most quarters. >> this twitter, whoever could have bought them, the conversation would be better. these stocks is a low mobile. why? because they don't have growth.

money managers will pay for growth wherever they find it. even if it tractor supply! >> amen. >> thank you. >> speaking of low multiples, gold is off almost $17. we got down to 13.11 earlier in the morning, mostly on it report out of nikkei newspaper in japan, that the white house was set to nominate larry summers. the white house said that's not true, the president has not made his decision. >> other than obama, does anybody want summers? i keep trying to find somebody. >> it doesn't appear many people in the senate want him or that panel they may rely on. and given the lack of persuasive powers the president seems to possess, one would imagine that could be a tough fight. but we shall see. when you think about the fed, though, and the coming taper,

consensus will be small and then a new fed chair, i add that to the debt ceiling debate and what's going on in the house and you build a case for being more cautious perhaps. perhaps? >> i did that for the month here and i feel like i've left people behind. >> until you don't. >> there will be some breaking point for me. the fed will have a good meeting, the stock will go up and i'll say i can't take it anymore. >> so we have to watch you the day you come in and give up -- >> i say i can't take it anymore. i've been saying september -- look, we know the numbers. the numbers -- we had three straight up triple-digit dows, if we had a fourth, it would have been record breaking. you have to break me. it's play whack a mole with cramer. >> i'm the monitor. i will know. >> and i will fold like a kmart

suit. that's what happens. >> bob pisani's on the floor. hey, bob. >> ocir, think iron production, soda ash production. i've been asked a lot about the twitter ipo. i've been asked are they going to list here or on the nasdaq? it's a confidential filing so i don't know. we can speculate about it but i don't think anyone knows. how much is the company going to float? the trend is for the big companies, 5% to 10%. look at what happened with hilton yesterday. we don't know how many shares are outstanding yet but it's a very small part of the company. blackstone bought it for something like $26 billion in 2007. so we're probably talking about on the order of a 5% float for

hilton. that's probably fairly typical. think on those levels for these companies. they've been doing the small floats because it works, you don't have as much out there and the price holds up and they can do the follow-ones, the secondaries. have you noticed the secondaries? they're on fire. there were 18 secondaries priced last night. 18 of them. we just passed the 500 secondaries mark today. that's the highest we've seen in years. it was 350 for the same period yesterday. so companies are following on with secondary offerings in a very, very aggressive manner. let's look at the markets today. we're up. it's been a pretty good week, not on the s&p 500 up 2%, china up 4%, japan was up, germany was up. the on big withone is down is brazil. retail sales disappointing.

i know bark clays lowered their gdp estimates. monday is the fifth anniversary -- actually, i think it's sunday is the fifth anniversary of the lehman bankruptcy filing. that monday down 4.7%, the worst day since the 17th of september 2001. that was the day we reopened after 9/11 here. on that friday, remember this, guys, we banned short selling. the s.e.c. banned short selling on friday, september 19th. people on the floor were stunned. the joke on the floor was if that didn't work, chris cox was going to ban long buying. chris cox was the head of the s.e.c. at the time. the reserve funds broke the buck.

they had lehman paper in their fund. that caused huge shock waves that took several years and we're still working through that. the on piece of good news, mutual fund returns are going to look a lot better in the next few months because we're going to pass that five-year mark. this was pointed out by market watch today. this five-year return for the big funds, 37%. you get through the end of this year, suddenly the five-year return goes to 94%. time really does heal all things in mutual fund land. guys, back to you. >> how do you like that. >> makes for some good marketing when you get that five year -- >> i forgot about that. that's brilliant. let's head to the bond report, rick santelli. >> a lot of us were here five years ago. wells fargo this morning was a very interesting conversation. it's also interesting to look at

the week as it's progressed in treasuries. if you look at a 5-year, can you see it's doing a lot of trading around unchanged. here it hovers at 171, its key level is around 1.67. so it is holding. but it's dropped the most on the week, last week 1.76. it dropped a whole lot of basis points. with the 10s and 30s dropping a little less, you really want to watch the wiggles of the curve. if you do look at 10s, a two-day, we are thrashing around our equivalent of 5 is 2.89. these are all significant highs looking back in the rear view mirror. and if you open this chart up a bit, you would find especially on the 10-year is on its month to date, you can see we have flatlined since a week ago. the dollar index is just thrashing. most important exchange markets

are. if you open it up a bit to august 1st, you can see, you know, maybe it looks like a rounding bottom but on any given day traders vacillate between a bottom or is it going to go lower? the final chart is the chart of the week. actually, it a one-year chart. but the british pound against the dollar right now is hovering close to the best levels of 2013. carl, back to you. >> people are talking about some of the best growth in the u.k. since the crisis, rick. thanks a lot. >> with all the buzz about the twitter ipo filing, people want to know what the company is really worth. that's next. and the airline sector outperforming the s&p in a very big way. we'll discuss that with david neeleman, the found are and ceo of jetblue when "squawk on the street" continues.

woman: everyone in the nicu -- all the nurses wanted to watch him when he was there 118 days. everything that you thought was important to you changes in light of having a child that needs you every moment. i wouldn't trade him for the world. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. if you're caring for a child with special needs,

our innovative special care program offers strategies that can help. thank you orville and wilbur... ...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.

♪ i'm sharon epperson. you can see the gold market pricing in expectations that the fed will taper on qe. that is why we're down yet another day here in the gold market with gold prices at a session low earlier this morning just above the psychologically important 1,300 level. as we're look at the slide we're seeing in the gold market, it's not only this precious metal but silver as well. we're on track where gold and silver are at the highest selloff levels. we're also seeing lower prices in the oil market. traders are factoring what's going on next week with the fomc and waffling between the 105 and

110 level in the oil market. traders say there doesn't seem to be any firm conviction in either direction. >> on "mad money" last year, cramer asked coo of buzz feed about what they taught about twitter going public. >> take an outside guess, what is this thing going to be worth? >> 10 to 20. i think that's what people are saying. it's what people have been saying for a while. >> jim, he called it the first pure social media ipo. >> right. and john is fantastic. buzzfeed is a lot of fun to look at. he's saying twitter is the rails, twitter is the way that people communicate now and therefore advertisers will love it. it's so perfect for mobile. he says this is going to be one

of the great american companies in the next five years. >> he said that banner advertisements are dead. >> dead. >> he said buzzfeed, i thought was interesting, is profitable. >> they do algorithmic news. he said over and over again twitter is the young person's media, okay? young person's. made me obviously -- i say, wow, i use it but it's clearly the way that if you're procter, if you're pepsico, you're going to put your money in facebook and put your money on twitter. that's how you're going to advertise. we're going to see special programs for them that are native advertising, we talk about "mad men" kind of advertisements. we're maybe too jaded but that is what he says people do. they like the advertisements. isn't that something? >> yeah. >> have you been to buzzfeed's headquarters? >> i have. >> it is a different world than

our offices. >> the new model for journalism -- i'm not quite sure i'd call it journalism. there are some. i don't want to -- >> their business vertical has had huge hits this week. >> there's also a lot of repurposing of content out there. their algorithm keeps them completely on top. >> twitter does, too. twitter naturally know what is people are interested in. i found out -- my daughter's in boston. i find out about the boston bombing. how do i do that? from twitter. that's how you find out things. that's the way the associated press was when i was growing up. they had it first. >> what is twitter's first official tweet after going bl k public going to be? tweet us.

>> coming up, don't let friday the 13th scare you from investing. jim cramer is here and he'll protect your portfolio with six stocks in 60 seconds. but still, be aware of your surroundings until "squawk on the street" returns.

let's get "six in 60." >> one day people will give up on teva. it is an expensive stock. >> safeway is rocketing today. >> when you go tell to buy, do not sell the stock, it could be big. >> you had under armour. >> under armour, this you guy right now. >> guggenheim likes oxy. >> also conoco has been a real horse for them. >> a key on wendy's. >> this is the bacon cheeseburger on the pretzel roll. it is selling.

>> and finally stratasys. >> let's get to rick santelli in chicago. whoa! 76.8. that's what nick says. he's an eagle eye spotter on data. 76.7? >> 8. >> 76.8 because that is really low. yes, i'm seeing it on all the screens now. we're looking for number 82. our final in august happened to be the best read since july of '07. it is a very, very big miss. and we also of course on on the weak side on retail sales. i don't see business inventories

out yet so we're going to do a push on that one to the top of the hour. back to you. >> thank you very much for that, rick santelli. what's coming up on "mad" tonight? >> i want to rip things up a little after i heard what rick santelli said. i have to diffuse it with the new negativity. it dovetails retail. i have to change my game plan. it going to be a little more negative. that's a bad number. >> on the up side, sportscenter did do a nice parody of you. >> i love him. >> what did you think of it? >> i love neal. >> it's not easy trying to figure out the aol wild card. you got section teams within two games, tampa bay and texas top of the charts but their stock is shaky. somebody light me up! >> i'm thinking of trading my rays stock for royals stock.

>> he is a genius. everybody knows him from the overnight. i am addicted to espn and i couldn't believe he even knew who i was. i told some of my friends at espn how happy i was this happened. john walsh, who run it is. neal everett is a very bright guy. >> have a great weekend, jim. >> thank you, buddy. >> i wish you good luck in football. >> when we come back, we'll dig deeper into the story. everything you need to know about twitter filing an ipo. and should walmart and others be forced to pay workers $12.50 an hour. washington's mayor vetoed such a measure. he'll explain why. [ male announcer ] these days, a small business can save by sharing.

like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪ just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms

and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.

welcome back to "squawk on the street." july business inventories up .4, double what we were looking for. last month was revised from goose egg to 0.1. that michigan september preliminary is the weakest to lowest level since april this year and third lightest read of the year. simon, back to you. >> rick, on the heels of that

data, the ascent of the markets through the month, up 64 points on the dow as things stand at the moment. in fairness, if you look at the retail sales data, there is a concern growth may be slowing and there's a specific problem within clothing retailers. we'll come back to that later in the program. >> retail sales weak in clothing, which we suspect has some of the teen retailers we saw. sporting goods weak, building material week. a lot of discussion of what that means for the broad economy. people keep trying to make a case for a pick up in the gdp. but if retail sales and confidence numbers keep coming in like this, it harder to do. why the dow and markets keep ignoring that now, it's hard to know. >> meanwhile twitter was able to file its ipo in secret thanks to the jobs act. eamon javers is live in

washington with new legislation really making a difference. >> that's right, simon. this is something new we're seeing rolling out with the twitter ipo. it's the jobs act implications here allowing twitter to file for an ipo but to file those documents in confidence. the s.e.c. can see them but the rest of us cannot. take a look at the history here of the jobs act. you see it was passed initially in april of 2012. it allows for the secret ipo document filing if the company has less than $1 billion in revenues. it also allows those secret filings until 21 days before the road show. at that point they are going to have to make these documents public and potential investors will get a chance to look at them. one of the questions here, this is designed by the president and the congress to really be a piece of legislation that inspires companies to go public, max it easier for them to go through that process. and then therefore they're going to use the capital they raise to create jobs in theory. but one of the questions in all of this is going to be how fair

is this to investors who don't get to see nearly as much information about these so-called emerging growth companies, including a number of things we're used to seeing, like disclosure of information for the top five executives. here they don't have that. how is that going to impact the twitter ipo? we'll have to wait and see. >> thank you very much. what does it mean for the future of twitter? the ceo of global x funds. and lance, good to see both of you. they spent years deflected about going public. does this come as a surprise or not? >> no. we talked about how twitter had changed even as a company and

the way they were interacting with the media. that's all a signal when they get a little bit odd and rigid about how they can't. we've expected this all along, even though twitter going back years is not looking at this, we're not interested, it not on the radar. we kind of expected it. but i didn't expect it to happen yesterday. >> yeah. bruno, there's some discussion about maybe the number of users they have is less than they thought they were going to have at this point a couple years ago. revenues we have a sense now clearly not above $1 billion. do you have any questions or concerns about their growth rate? >> well, the growth rate of those businesses in general in the context of the global economy and other industries is pretty significant. obviously in the context of what the expectations maybe not as much as it would have been. businesses are growing very rapidly.

300 million is a lot of people. >> lance, whether they like it or not, they are if they pursue the ipo, and they could still withdraw at this stage, they're going to face a lot of tough questions about mondetization. we've seen this with facebook. but twitter is very different for advertisers, isn't it? it's this fire hose of 400 million tweets that to an advertiser might seem unstructured and difficult to get ahold of. it more of an uphill struggle for twitter to convince the market. >> i think as far as advertisers go, they've had success with tweets -- like orio did a tweet during the super bowl blackout.

twitter is about what's happening right now. so the smart companies that advertise on it really try to connect to some sort of event. they have to be careful as we just saw with 9/11, in the remembrances some companies misplayed it. it is a bit of a mine field. i wanted to say one thing about the number of users. i'm hearing different numbers. one thing is there have been reports the number of active users is 500 million on twitter and 200 million uniques per month. so i'm wondering why those numbers are kind of off. in any case, if you're an advertiser, it's a lot of eyeballs and it a very exciting opportunity. >> bruno, what's the appetite going to be like for this issue? >> if you look at sort of the broad numbers, the total market capital of the company may be about $15 billion in the context of the facebook ipo, that's the total issuance they did. the issuance size will be much

smaller. obviously it all going to depend on the price. we expect a fair amount of appetite. >> would you expect dual class? >> we wouldn't expect it at this point but i mean, again, we don't have a public s-1, we don't have a lot of information. it all speculation at this point. >> lance, one thing about this company, they've always said they want to keep control. would it surprise you to see two classes of stock? >> oh, i don't -- i'm no stock expert. this is why it's taken twitter so long. they have a very vocal user base. whatever they do, i think twitter understands they have to ensure that they maintain control and they maintain what is valuable about twitter while still growing. because why do you do this? do you this for capital. you do this so you can grow rapidly. they're facing a tough fight with facebook, which right now is trying to turn itself into

sort of a more newsy type of environment and that is right in twitter's wheelhouse. >> bruno, you've launched an etc, a social media etc. do you expect these stocks to all trade together? >> well, we've seen that the stocks actually don't necessarily trade together. when facebook came to market -- >> it didn't change the game on monetization so therefore they can all fly? >> to some, te extent. it the same industry. you're going to have some diversification but, again, same industry. >> bruno, lance, thanks guys. big story. >> what would investors really be buying in the stock? julia boorstin is outside twitter headquarters with the latest. >> reporter: twitter's confidential filing on reveals one piece of information about the business, the fact that its

revenue is less than $1 billion annually. while we wait for information about its revenue and earnings and public s-1 filing, we have some estimates about how it's translating 400 million daily tweets from 200 million plus daily active users into profits. e-market suggests twitter will more than double its revenue this year to $583 million with revenue of $950 million next year and $1.3 billion in 2015. now, twitter's growing strength in mobile put its valuation at around $10 billion when it last raised money two years ago. the light trading in the secondary market currently values twitter around $15 billion. >> i think that people would like to understand the model and see the potential. will the market bear, you know,

price increases in the future. i don't know. and will the market bear greater frequency of ad delivery? >> cashing in on twitter's ipo is co-founder jack dorsey, also ceo of square and we'll also see individuals and institutions who have poured $1.16 billion into the company's cash-in. marc andreesen and dicks cou co got in early and jeff bezos. morgan stanley also got a piece. we'll be watching to see when these guys sell. >> thank you very much. apple starts taking preorders today for its apple i.c.

microsoft is launching an iphone promotion. jon fortt has the story. >> it is in stock and scheduled to be at your door in a week if you order. come to a microsoft retail location, trade in your old ipad and get a $200 microsoft store gift card. is it a good deal? not particularly if you've got a recent ipad. this is good for ipad 2 through the latest generation. a third generation fetches about $300, fourth generation more than that. a week from monday will be the day we're likely to hear how first weekend isales went so the competition is stacked up there. a couple things at play here. used electronics are suddenly a hot market. it's a way to get foot traffic into store and there's a market to resell them into memerging

markets. so is this going to work in history suggests it's an uphill battle. apple buyers tend to buy apple again. these days when it comes to tablets, nobody tends to buy microsoft. and apple is getting nice and predictable. expect a new ipad next month. some folks will take a look at that before trading for a microsoft gift card. >> interesting times, jon. thank you. >> meantime, michael dell speaking out this morning after winning the shareholder vote to take the company he founded private after an extended battle. here's what mr. dell had to say in an exclusive interview in the first hour of "squawk on the street." >> there was some distraction for sure. the team at dell did a great job staying very, very focused. and, you know, in the last quarter our enterprise solution

service business grew 9%. one of our principal competitors also had a 9% change in their business, except in their case it was negative. so we're playing offense. we're on the attack. we're growing, expanding our share. this is the dell that many of you are very, very familiar with and you're going to see it in all of its glory. >> when we come back, the fight over the debt ceiling heating up in washington. we'll hear from one washington expert who says this battle could be one of washington's biggest. and later one of the co-creators of twitters gives us his take on twitter's plan to go public. back in a moment. [ 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. ...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.

check out what's happening with shares of united food. united natural foods are getting a huge boost in trading after the distributor organic natural and other specialty foods delivered an earnings and sales beat. it upped guidance. and they raised their price target on the stock from $68 to $63 citing better industry trends. that stock trading at record highs. back over to you. >> thanks a lot. a new nbc/wall street journal poll shows the odds of a government shows congress should

raise the debt ceiling. >> do we need to be worried about the debt ceiling and a government shutdown or both? >> sure. they'll ultimately get the votes and house leadership will be able to cure enough republicans of the idea that they really can get rid of obama care to put something on the floor that can pass, but it's kind of hairy and john boehner doesn't know how to do that right now. on the debt ceiling are boehner indicated he needs cut as big as the debt ceiling and that isn't going to happen either. it's easy to see the finish line and easy to see republicans know it would be harmful for their

party but they're not sewure ho to avoid it. >> can you always say what john says, which is we get a deal ultimately that funds the governments are raises the debt ceiling. but you've got at least 40 republicans in the house right now who are only willing to pass something off the house floor that defunds obama care. you have a white house that under no circumstances that is going to agree to cuts to obama care. you have democrats in the house and senate who not only don't want to touch obama care but think we should get rid of the sequester, add more spending back. the path to get from where we are now, the complete catastrophe mess we are in now to funding the government and raising the debt ceiling, it's hard to see how to get there. republicans look at the numbers and say americans don't want to raise the debt ceiling. i think it's because americans don't stand what the debt ceiling is, it's complicated. it's a scary thing i think ultimately. >> i hate to put my colleagues

on the spot but i want to hear what your thoughts are on how likely this is because you typically are pretty good at this. right now on this date obviously understanding we have a lot to go, what do you think the chances are of a government shutdown? >> i think the chances of a government shut down are about 25% and i think chances of -- if i got to put a number on it, i'd say the chances of a debt crisis or right up to the brink kind of situation like we had in 2011 would be 5% or 10%. but those are not trivial. look, here's the situation. the idea that republicans are going to get massive immediate cuts or get rid of obama care, that's a fantasy. and republican leaders know it's a fantasy. the question is how do you convince members who believe it or who need something to cover themselves with their constituents, you know, some sort of figure leaf that they can use. early this year they came up

with something, which was the senate is not going to get paid -- or members of congress are not going to get paid unless the senate passes a budget. and that was held up as a big accomplishment. well, of course the senate did pass a budget and then they didn't have a budget negotiation because they can't agree. that was kind of a pretend solution. eric kanter tried to come up with a pretend solution the other day, which is we'll vote for defunding obama care and the senate will kill it. they have to come up with another pretend solution. >> where do you find a pretend solution that these group of house republicans that are tea party influenced on the right can support in there's nothing they can put up that going to get 218 votes in the house. i'd put the shutdown a little higher than john, maybe 50 or 60. i don't see the path. >> you just tweeted talking about summers and the fed

getting vibes re next week, vote count work almost done. is this going to happen? >> i believe it will happen. and i think the odds are pretty good next week. because of the pause in syria, the president has room in his schedule they didn't anticipate just a few days ago. the white house is not confirming this so this is not from the white house but it's from people close to the white house. they -- to a person that i've spoken with, they expect it to be larry summers and they also expect the notion which has been floated by some that larry summers couldn't get out of the banking committee, couldn't get approved by the senate, that is not likely to be true. i believe he would get out of both and he would pass on the floor. >> i agree with that. i think it does come next week now that they have a pause on syria. they need to do it relatively soon to get the confirmation series done by the time bernanke's reign is done.

everybody close to the white house is saying they're not confirming. i would be shocked if it's not summers and i would not be surprised if it's next week. >> ahead on the show i'm afraid it's not a good sign for the upcoming holiday shopping seasons. sales at clothing stores last month dropped by their biggest amount in more than a year and a half. we'll take a retailers are best positioned to handle a consumer behaving like that. and the found are and ceo of jetblue will talk about what it like to take a major company to market. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me.

that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience." 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.

she'and you love her for it.ide. but your erectile dysfunction - that 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. fashion retailers could be in for a tough holiday season. this morning's data shows that spending in clothing stores across the country suffered its biggest drop in one and a half years in august. let's bring in james fallon,

editor of "women's wear daily," a man who has his finger on the pulse. how tougher is it for the people that you cover? >> i think it's mixed. i think what we're seeing very much is the consumer is fickle and really buying when he or she wants to buy. the second quarter figures for a lot of retailers missed expectations and they downgraded the outlook for the second half, which sent a lot of their shares down as well. i think the early going in the first parts of the year were very optimistic but we're now hitting a reality wall. >> lululemon obviously has their own issues with the manufacturing problems they've had in the past. how does a ceo position themselves to know what that consumer is going to buy this holiday season, get them in the stores and get them spending? >> i think you're going to see a lot more promotions, which obviously will hit margins late in the year. you're going to see a lot of

holiday advertising. i think you're going to see an earlier holiday. expect christmas before thanksgiving. they're going to have to use online a lot more, social media a lot more, tv, you're seeing gap returning it tv for the first time around the holiday. there will be a lot of noise out there. >> online and social seems to be where people spend their time rather than wandering around the mall for an impulse buy. is there a chang in the way people spend their time? >> you're already seeing the change. line is still a very small part of the retail spend. it's less than 5% of the overall retail pie. but they're either scanning online and doing their homework and then going to stores to buy specifically that item or else they're buying it online. but the days of kind of casual shopping and, as you say,

impulse buying are waning pretty quickly. >> james, you're not a stock market guy but you do know the industry very well. do you think there is a step change in profitability here? >> you're going to see winners and losers very clearly. i think that macy's is very strong, penny's has its problems, kohl's is struggling. you will see a real divide. it doesn't mean those struggling can never come back but you will see a real divide developing. >> it's going to be an interesting holiday season. james, for the moment, thanks very much for joining us. >> straight ahead, one of twitter's co-creators gives us his take on the company and plans to go public. as you might remember, earlier this week facebook's mark zuckerberg told the world what he thinks about ipos. >> in retrospect i was too afraid about going public.

i've been very outspoken about staying private as long as possible. i don't think it's that necessary to do that.

♪ ♪ we are now an hour into trade this friday morning. here are the stories we're squawking about. 7:31 on the west coast, 10:31 on wall street. good morning if you've just joined us.

intel is the biggest gain on the dow, up more than 2.5%. jefferies is upgrading the giant saying it should have boosted sales. and dell says tablets are part of the company's future. he appeared exclusively on this show in the past hour. >> dell will participate in tablets and all sorts of client devices. we're not, you know, not getting in the mobile phone business. we do resell some other leading mobile phone products. but really our main business is helping our customers secure, protect their data and access it from any device they want to. >> and the university of michigan's consumer sentiment index for mid september falling more than 5 points to a reading of 76.8. that's in fact a five-month low. >> as you may know by now,

twitter confidentially filing for an ipo yesterday. earlier we spoke with the ceo dick costolo about his plans to take the company public. here's what he had to say at the time. >> the going public conversation, are you tired of answering this question? >> no, i'm perfectly happy to answer the question. >> i've counted the number of times you've been asked. >> i try to answer a little differently every time. >> it's we're focused on the user experience, it's not a decision we looking at now. we'll look at it in time when it's appropriate. when will it be appropriate? >> when i get up in the morning and think about what we have to accomplish in building this global town square and trying to build and scale a global organization, those are the things that occupy all my time. >> you can catch the full

interview when "twitter r revolution airs tonight." dom sagolla joins us to talk about the next chapter in the company's history. >> thanks for having me. >> why have they sort of not wanted to acknowledge this is part of their path. they've almost been shy or embarrassed about it. >> it's an interesting phenomenon for a company that is so much part of the public consciousness and is so much a public conversation to have really a private conversation with a regulatory body about going public. it's i imagine very difficult to found that balance between what is worthy of debate and discussion and what is really a very personal and a very constructive but somewhat directed conversation between two -- the company and the government. >> yeah. is this happening earlier or later than you expected?

>> you know, rumor runs rampant here. as you would imagine with a system that's built to disseminate information, the rumor was this would be coming around now so i'm not surprised. i have to think about what i would do if i were running the company, and i would imagine i'd want to get it done. i'd want to get it -- make that proof point and show what's possible after the different ipos that have happened in san francisco. >> i'm not clear, dom. why does it have to go public? what is the need now? >> well, it's been about seven years since the service came online. it doesn't seem that way. it seems like it popped up overnight. it's been a long journey, listening to the users and find the right combination of simplity and elegance. i imagine they're impatient and investors are impatient. i can see why they want to get it done. also, there's a point now where we have had several ipos, some of them that have been a little

rocky, and i think it time for the city and this state and this country to show exactly how it's done right. >> right. i can tell you how it's done right. it's done right by convincing people that they're going to make money further down the line and the growth is there. on both those points, whilst twitter is a phenomenal force and a huge number of people are using it, you have still the basic questions as to whether growth is slowing and at the same time whether you can monetize that and whether the way in which the messages are flooding around is something advertisers can latch on to to justify a value, and that's what you're trying to do justify a valuation of $15 billion? >> that's an amazing number beyond my comprehension yet the question has been how does twitter make money? it's been that question from the beginning. there have been forays into

advertising. without having any information from the inside but the things that have been said to the public, that the click-through rate or attention rate that they have a high. i like to take that as a bit of comfort. i also see personally as a technologist, as an innovator and been a part of this from the beginning, i see a lot of different ways they could monetize, beyond the advertising model. it's not my place to say but certainly there are alternatives. as we get started, there's a certain valuation we can pay. and then going forward, as we look at the way this thing permeates our daily life and the way it is a part of news as news breaks and staying current every day with events leading from originally the way i look at it obama's election back in 2008, i'll actually ask you and i ask my audience all the time how many people do you have think were following the most popular user on twitter as obama was

elected in november of 2008? do you have a guess? >> i don't but carl did the twitter documentary. i'm sure you do. >> sure, throw the hot potato. >> no, dom, educate us. >> interesting enough, that was about 180,000. that was november 2008. that was actually president obama himself. so that really struck in my memory as something that is almost predictive in its power. from there we saw events like the tragedy in mumbai and the plane on the hudson, events in iran and in egypt following that. >> i think everybody knows where you're going, dom. i think some people wonder, though, if you have a quarter of the users of facebook and you look at the travails facebook

has been through, why should this go smoother? >> it reflects on the different missions of the companies. i had the ability to watch mark zuckerberg speak and he talked about how they're very mission focused, to connect everyone in the world. twitter, you look at exactly what they're here to do, they're perhaps a more basic utility that creates connection, yes, but provide at substrate for this time of realtime experience. so it's not as much about -- it is of course about people connecting with each other but it also about authenticity and the ability to express yourself and be known in a small space. facebook is good for just about everything and twitter is good for something very specific. i've tried to tell people exactly what it is that it's great for and i think it's great for creating that transparency and compassion between uses are wherever they may be. >> we'll talk to you in the future. it going to be an interesting

journey. dom sagolla. >> coming up, we'll talk to somebody who knows a thing or two about taking a company public. david neeleman, the founder and ceo of jetblue will join us life right after the break. ♪ mine was earned in djibouti, africa. 2004. 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. [ bagpipes and drums playing over ] [ music transitions to rock ] 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 open an account. ♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪

into the future. ♪ don't tell mom. don't tell mom. don't tell mom! don't tell mom. okay. don't tell mom. don't tell mom. don't tell mom? yeah. the best stories you'll ever tell start with, don't tell." don't tell dad.

start yours in the new santa fe. from hyundai. we continue to follow today's big story about twitter filing for initial public offering. we want to get some perspective for someone who founded two

airlines and saw one of them go public whilst he was at the helm. david neeleman joins us, ceo of jetblue. david, welcome to the program. nice to see you. >> thanks for having me on. good to be here. >> you were at the helm of jet blue when the company had the very successful ipo in 2009. what advice would you have for executives of twitter? >> just stay focused on your business. do those things you've been doing. try not to change and try not to focus on quarter numbers and build the company that investors would want to own. >> you tried to take your latest venture, azul and you had to abandon that in the last month. things are obviously quite tough. >> i wouldn't say quite tough.

we had some issues in brazil and there was an issue with the valuation of the currency. our company is doing great, we're very pleased. i think we'll get it back on track in the future. it was more of a market conditions issue. market conditions i think in brazil will rebound a little bit. it's a great country, there's great opportunity there. i think we'll be fine. >> we had this year somewhere in the region of 200 successful ipos here. would you consider listing it here? >> it was a dual listing. we would have listed in tboth, changes. -- exchanges. >> you're offering the best job in the world. the dead line is sunday. >> there was a company founded

by former jetblue people who i like a lot. we're cooperating with them. they're hiring a chief exploration officer to travel the world and blog about it for $100,000. it's a pretty fun concept. it's a site where basically can you go and put in your preferences for travel instead of destinations and it will pull up all kinds of ideas. i'm happy to be helping our former jetblue people. >> jetblue had some issues earlier this morning with computer issues, united earlier had crazy pricing. is this just coincidence? >> it's coincidence. i founded the technology company that does reservations systems. it the system that jetblue used to use. if they were using it still, i

don't think they would have had the problem. we use it at azul. it a very complex issue. at times systems have problems. it's certainly that you try to avoid but, you know, it's something we live and die by every day is technology in the airline business. it's unfortunate united had the problems yesterday. i hadn't heard about the jetblue stuff but hopefully they're back on track. >> they are saying the system is back on. good for the people who got $2 fares on united, that's for sure. >> that was insane. >> david, thanks for your time. good to see you again. >> coming up, they say time is precious but we'll say why this watch that robert frank is watching -- or wearing needs its own bodyguard. we'll have that when "squawk on the street" comes back. ask me what it's like

to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended bed in america? ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [announcer] tempur-pedic owners are more satisfied than owners of any traditional mattress brand. tempur-pedic. the most highly recommended bed in america. now sleep cooler with extra cooling comfort on our bestselling tempur-breeze beds.

visit tempurpedic.com to learn more, and find a retailer near you. let's pick it up with the santelli exchange live. good morning. >> good morning, simon. quickly, let's look at the important data of the day. university of michigan sentiment survey laid a bit of an egg. we can argue retail sales for

two months running. when it comes to the university of michigan or any confidence index, the one thing i will say is that much research has been done. confidence doesn't move markets. the markets move the dial on confidence. enough said. now, there was a pullout that's raised many eyebrows, many eye brows. we had a guest this morning that talked about the poll, and what the poll generally shows, and we'll get to more details, is americans aren't into raising the debt ceiling. here's what ben white from politico said on our show. i think it's because americans don't understand what the debt ceiling is. it's complicated. it's complicated. so basically, listeners listening on the radio, or if you're watching me right now, you're too darn stupid to get it. too darn stupid to get it. the hubris. the hubris. let me see. the only poll -- or only the princeton and harvard professors and all of the people that are writing for places like politico, they know you don't know anything.

but let's switch gears a bit. let's not look at another category called the giant leap of faith category. let me see, that the fed can really move unemployment, and although it doesn't look like it, that the economy is humming along to totally support the levels of equities, that profits at corporate levels doesn't mean all of the programs are only helping those at the top, even though it's supposedly for everybody in the middle. we're all supposed to take that on the leap of faith. when you look at the recent rupe poll, and i tell you what, congress, you ought to listen up. the tea party conservatives, listen up. because 70% oppose raising the debt ceiling. and 55% oppose raising it even if it means default. okay, now, get this. 63% say congress is out of touch. okay? now, if i look at those three things, you know what i see? i see the 2010 midterms. look at it from a different light. americans know exactly what they want, and they're not getting it

from congress, although lois lerner pulled the plug on free speech with regard to the conservatives. and the last point, remember the rants, remember the referendum, that didn't happen, because 61% of americans say transparency can't see it at all in this administration. back to you. >> feel bad for the whiteboard, rick. we'll see new a few minutes. thanks a lot. when we come back, don't forget the twitter question. what's twitter's first official tweet after going public? tweet us @squawkstreet. we'll get to your answers after the break. meantime, a watch that's so valuable it needs its own bodyguard. robert frank can probably fulfill that position. we'll have more for him in a minute. robert? >> this is the most complicated watch they've made, but at 1.3 million, money alone cannot buy it. we'll tell you how you can get it after the break. my mantra?

always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men.

axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. ...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. it's been called the gold standard for serious watch collectors, a brand so exclusive some purchases require an application process. in today's " million dollar minute," robert frank spent time at protect felipe with a rare watch worth over a million bucks. ♪

>> these are cathedral chimes. >> it's part of what makes the watch extremely ware. >> it's the most complicated wristwatch we make. >> it's the patek philippe. in life, complications are bad, but in watches, they'll add zeros to the price tag. >> complication is beyond anything the timekeeping, a day/date feature. and a repeater. >> this watch is a grand complication that took over five years to create. >> this is the first time i've worn a glove to touch a glove. >> the price is 1.2 million price francs and priced in u.s. dollars once it lands in the u.s. >> even if you have plenty of money, you can't just buy this watch, right? >> you do have to apply through your retailer to show you have some basic pieces and you've worked your way up, so you appreciate that things get more complex.

>> robert frank joins us at post nine with some more, and you're wearing gloves. >> yeah, wearing -- which means it's really expensive. this watch has never been to the u.s. before. they brought it just for us. i want you to listen to what the sound of wealth sounds like. this is the minute repeater. i don't know if you can hear that. >> yes. >> and the head of the company listens to every watch to make sure it's tuned to his liking. by the way, $1.3 million, even if you have the money, you have to apply, and they have to accept you as a worthy buyer, which means that you are enough of a watch connoisseur to appreciate this watch. 686 pieces, 100 hours of work time just to do the enamel, all of the engraving. this took seven years to make. patek philippe, if you bought one in the 1960s, they're worth millions today. it's the gold standard of watches. >> why? >> the craftsmanship, the

complications. it's all one spring that does the sky calendar, the turbion, the leap year, the amount of engineering is amazing. >> at the end of the day, robert, it's a watch. >> it is a watch. >> it's on the end of somebody's arm. >> that's right. >> and it's very valuable. doesn't that raise huge security implications, or even just to protect it as you're walking around. how heavy is it? >> it's pretty heavy. what people love about patek philippe, it's a quiet watch. you'll notice a lot of them don't have diamonds on them. this is a watch that whispers but very expensive, so the security risk is not as -- >> i would not wear that walking up broadway. >> okay. i would. >> that solves the problem. >> the thing around here, one day you'll disappear after doing one of these stories. >> well, it would be today with this watch. this would be the day. >> very nice. you show it to the camera really quick. >> yeah, the back, the sky calendar. it shows what phase the moon's in in case you can't look up at the sky. you can look at your watch. it's important. >> resale value good? >> yes.

again, the most expensive watch ever sold, $11 million. it was a patek philippe. they don't make that many, and they all sell out. >> a bit of bling. a nice bit of bling. >> yes. >> thanks, robert. >> thank you, guys. >> enjoy the weekend. >> thank you. if you are just joining us, this is what you missed earlier on. welcome to "squawk on the street." here's what's happened so far -- >> the capital program we designed and to get out and put capital into hundreds of banks very, very quickly and recapitalize the u.s. financial system is a huge success. >> i don't get the sense that they need -- they need or want this to be a blowout phenomena, a blowout event. i think they would love to have this happen under the radar if they could. but obviously, going public draws somewhat of a spotlight. >> it's really about changing our focus from a clearly focused to more of a longer-term,

five-year, ten-year focus, doubling down on the investments that are really needed for this company to be able to continue to serve the tens of millions of customers that we're honored to serve every day. [ bell ] >> that's your opening bell. >> the path to get from where we are now, the complete catastrophe mess we're in now, to both funding the government, raising the debt ceiling, it's very hard to see how you get there. and you see the numbers. republicans look at the numbers saying, well, americans don't want to raise the debt ceiling. i think that's because americans don't really understand what the debt ceiling is. >> there's a point now where we have had several ipos, some of them have been a little rocky, and i think it's time for the city and for the state and for this country to show exactly how it's done right. ♪ good friday morning. we're live here at post 9 at the new york stock exchange with a check on the markets. the dow hanging onto a 51-point

gain here. what a week it has been. we've added more than 400 points for the week, more than 2.5%. shaping up to be potentially the single best week of the year, at least in points for the dow. definitely the best full week since the first week of the year, did include the tail end of 2012. looking at the s&p, up 2.25%, and the nasdaq is a little weak. shares of intel rallying. they were upgraded at jeffries to a bierks citing infamous on chips that consume less power, perform better and are cheaper. aetna getting an upgrade. analysts at b of a upgrading them to buy from neutral. a roadmap. the bird is the word. twitter heading for the stock market after filing for an ipo. we'll go behind the headlines, tell you everything you need to know. summertime in washington. reports say larry summers could be nominated as fed chairman as soon as next week. keep it here as we try to separate rumor from reality. the fight appears over, for the moment anyway, walmart may

stay in washington after the mayor vetoed a living wage bill. we'll talk to d.c. mayor vincent gray later on in the hour. first up, the tweet heard 'round the world. twitter announcing via twitter, of course, it's filed for its longawaited ipo. who are the early investors that might be making some big money? julia boorstin has more outside twitter headquarters in san francisco. good morning, julia. >> good morning, carl. twitter has raised about $1.2 billion from a range of high-profile individuals and vc funds. twitter's three co-founders are likely to hold significant stakes. that's chairman jack dorsey, who's also ceo of mobile payments company square, plus evan williams and biz stone, both of whom no longer work at twitter. twitter's ceo invested in the company's first investment round back in 2007. that's two years before he joined the company as chief operating officer. legendary vc mark andreesen also got into the first round of

funding, coming in the next year, jeff bezos, the expedition fund, as well as ron conway, known as the godfather of silicon father, and tim ferris, known for writing "the four hour work week." it's not just american investors. saudi arabia prince alal invested in twitter in 2001. he didn't buy the shares directly from twitter but through the secondary market. that's how he made the purchase. the vcs and institutions who invested who are a hodge who's list of the heaviest hitters in silicon valley. sv angel could see a huge payday as they got into the first round of investing. spark capital, charles river, benchmark also participated in several rounds. t. rowe price and morgan stanley snapped up a piece back in 2009. coming in later with bigger checks, but twitter had a higher valuation, silicon valley giants

cliner perkins and draper fisher jerveson, as well as dst global. now, the investors' paydays hinges on what the s-1 reveals about the company's financials. e-marketer estimates there's about $580 million in revenue this year, about half of that coming from mobile. both of those numbers are, of course, expected to grow. the one factor analysts point out in terms of twitter's growth prospects, the fact it has only 240, 240 million daily active users. compared to facebook, it's not that much, which means there is significant growth potential. carl? >> thank you very much, julia boorstin, in san francisco right outside twitter's headquarters with that fancy sign. meantime, kayla has some more on the bankers involved in the ipo. good morning, kayla. >> good morning, kayla -- you're not care la. i'm kayla. >> i go buy kayla, too. >> sometimes you do. it's friday. we've all had a long week. carl, it seems like it's bankers singular. we don't know much about the contents of the s-1, but we know

it won't contain the full slate of banks. the lead underwriter, the only one with a confirmed role is goldman sachs. they'll be the oracle and providing advice in how to structure the deal. goldman sachs has raised the most for clients in ipos, some $5.2 billion in proceeds, according to renaissance capital. followed by jpmorgan and then tech powerhouse morgan stanley. wall street expects most if not all of the banks to have a role in the deal, just not exactly the top decision-making power. and it may have surprised someone not to see morgan stanley in that seat, even after its role in facebook's debacle. that hasn't really had a material impact on morgan stanley's ipo business. on one hand, twitter is said to want to avoid the optics its ipo could go the way of facebook's. on the other hand, there was also a very real conflict of interest for morgan stanley in advising on the ipo of twitter's biggest competitor. buy side investors, carl, say they expect twitter to be priced conservatively, even if it means

leaving money on the table. they say the company will have a better shot of keeping the reputation intact during the rocky road of being public if there is guaranteed upside. of course, we're looking for more information and we'd love to get a lock at that s-1. carl, that's the latest for now. >> that's a lot of information, kayla. you brought a lot of it to us first, thanks a lot. for more on how a twitter ipo would impact the rest of the tech sector, let's bring in carly fiorina on the news line. carly, good to talk to you again. >> nice to be with you, carl. thanks for having me. >> kayla mentions keeping expectations low. how many lessons did we learn from facebook? >> well, you will remember, carl, you and i had this conversation many times and simon and your other hosts, as well, that overhype destroys an ipo every time. and facebook was overhyped from the beginning. let us hope that twitter learned the lesson of that. it's hard, though. it's hard to dampen excitement when an ipo has been anticipated for this long.

>> yeah. you know want to obviously keep your head about you. on the other hand, you do want to build some excitement, right? i mean, you do want there to be an appetite on day one. you think at the very least it's important that they establish a valuation. explain what you mean. >> well, look, who knows whether twitter will stay a public company for the long term. i mean, the story of tech is that smaller companies come up with the great innovations that ultimately scale is necessary to truly capitalize on them. so, of course, twitter's goal is to remain a public company, but perhaps a larger company will buy them at some point. the only real way to establish a valuation is to go through an ipo process, and so, that's what they're doing. of course, they have investors, i'm sure, looking for a way to cash in at this point. >> you made the point, the tech sector for a long time, got the reputation for being a fail-safe bet. i got to imagine, carly, after a

pretty wide spectrum of performance of various ipos, we're looking at some social names right now, zynga down 70, but zillow up 400. maybe that fail-safe bet notion has been discounted somewhat, right? >> well, i hope so. and i think the examples you gave -- zynga is a classic. i was amazed for a while that people seemed to have forgotten the dot-com bust so completely, where, you know, so many people just got wiped out. but, look, we need to remember tech is inherently risky. there are many innovations that are great but can't scale, and don't go anywhere. that's why venture capital is so important. but let's hope this is the success. i do think that it's important to remember that twitter has a lot of growing competition, and i think it's also important to remember that consumers are actually getting kind of sick of all of the ads interfering with their wonderful experience. you know, there are pieces of hardware around now, like ad

trap, which is able to clean all of the ads off the internet feed. i think that will be interesting to watch, how these companies really can -- >> yeah, carly, want to get your reaction to our interview this morning, an exclusive with michael dell. let's take a quick listen. >> we think the pc and tablets and virtual clients actually continue to have a very important role in productivity. and, you know, consolidating industries, you know, leading companies can do just fine. dell will participate in tablets and all sorts of, you know, client devices. we're not -- you know, not getting in the mobile phone business. we do resell some other -- some other, you know, leading mobile phone products. but really, our main business is helping our customers secure, protect their data, and access it from any device they want to. >> carly, i want to know what you make of -- you know, whether

or not some believe he's calling it the world's biggest start-up. others are saying michael dell's the dog who finally caught the car. what do you do now? [ laughter ] >> well, it's funny, the world's largest start-up. that's what we called lucent many years ago, and we took it public. you know, i think the skepticism around michael dell's play here is that he's had quite a long time at the helm to try and do what he wants to do now. so the issue, i think, is was it really being public that was getting in his way? is it really true that the investment horizon just wasn't long enough given all of the pressure of the public market? i think time will tell. but i think he's going to have less time perhaps than he wants when he starts to talk about five and ten-year horizons. i mean, technology moves too quickly. sometimes companies run out of time. so i think he has a lot less than five years to prove that this is going to work. >> less than five years, but more than one year? how short is the --

>> i think -- yeah, i think more than one year. but i don't think it's more than a couple, honestly, because he's been on this for a really long time. dell has been talking about being a full-service provider for his business customers for a long time. it hasn't played out particularly well. and i think, in part, that's because this is an industry that is now in desperate need of consolidation. i mean, these hardware platfo s platforms, the costs need to come out year after year, supply and distribution channels are everything. i just think there's more consolidation coming in this industry, and whether he can avoid that by being private, i think time is going to tell. but not a lot of time. >> and finally, carly, obviously dell going private. amd going into the s&p midcap. and i'm sure you know by now, hp will be taken out of the dow. what was your reaction to that? >> i think it's a sad day. and i think it demonstrates the fact that sometimes companies can run out of time to turn

around. i'm not saying hewlett-packard is going out of business. nothing like that. it's a huge company. but i think technology moves so quickly now. the competitive space is so intense that timeframes are shorter and shorter. and if you look out at great, you know, great companies, kodak has ran out of time. blackberry ran out of time. companies, even big companies, can run out of time. to keep up and keep ahead. >> yeah. carly, have a great weekend. thank you for your insight today. >> great, thank you, carl. >> carly fiorina joining us, talking about dell, twitter, a lot of other issues. don't forget about "squawk on the street." what's twitter's first official tweet after going public going to be? tweet us @squawkstreet. we've got some good ones. meantime, the report moving markets according to a japanese newspaper, larry summers will be nominated as fed chairman next week. we'll take a closer look at what that report is doing to stocks and commodities in just a moment. first, rick santelli looking at the risks and rewards of

high-frequency trading. rick? >> absolutely. i used to trade catastrophe insurance bonds many decades ago. we're going to discuss hft, old-style trade, new-style trade, and maybe reinsurance to boot, all at the bottom of the hour. ask me what it's like

to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended bed in america? ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [announcer] tempur-pedic owners are more satisfied than owners of any traditional mattress brand. tempur-pedic. the most highly recommended bed in america. now sleep cooler with extra cooling comfort on our bestselling tempur-breeze beds. visit tempurpedic.com to learn more, and find a retailer near you. according to japan's nikkei

newspaper, president obama could elect larry summers next week. the white house has said it hasn't made a decision yet. we want to look at how the decision could affect the markets. tom is with rbc capital markets and jack is the vice president and chief investment officer with bmo. guys, good morning to both of you. >> good morning. >> good morning. >> jack, this report hit overnight, and gold took a big tumble, managed to come back a little bit as the white house managed to say the president has made no decision. are we in for market reactions that we haven't seen yet? >> i think so, carl. i think the consensus was that the jury is still out. i think that the market participants' fear that lawrence summers has a big personality, wants to put his own personal imprint on the fed at a time when the market would like to see the fed slowly move to the sidelines. and so, i do think there's a fear of kind of this, you know, personalized fed that with the estimates unknown.

>> we do -- in between ostensibly, if the nikkei is right about that decision, we have to get through a fed meeting, tom, and it's going to come after -- confidence today was no good. retail sales were a miss, even though july revised up a bit. are we looking at a back half nowhere near the pickup we were hoping for? >> i think that's largely true. in fact, you can make the argument that's been the case over the last several years. every year, you start out with economists thinking it will be a 3% growth year. of course, that never materializes. so i think, unfortunately, we remain stuck in the 2% growth backdrop. and i think today's data are largely consistent with that. >> where does this retail sales number, where does that lead you to think gdp will come in? are we still in a 1.6, 2.2 range, consensus, right? >> yeah. i think that's exactly right. of course, this number will obviously have more of a bearing on current quarter gdp. for the third quarter, we're looking for actually 2% on the button from a gdp perspective.

but, yeah, i think, look, i've said this time and again, and i think what people have to keep in mind is this -- if you are looking for some sort of acceleration in economic activity, would you necessarily need to see is an acceleration in wages. consumption and wages are correlated to the tune of 95% over the cycle. if you go back to the cycles back to the 1960s, the average is closer to 60%. so what that necessarily means is that you need to see some ramp up in wages. unfortunately, we just see the labor backdrop remaining modest, and as a result, wages will remain modest, too. >> or debt. >> yeah. >> or debt. i think that -- >> oh, yeah, true. >> -- keep in mind, the economy without debt is like the major league baseball without steroids. the fact is the number of home runs hit is down 1,000 and attendance is off 8%. the fact is 2% growth is probably the natural rate of growth, unfortunately. you're right, i think that for the last, you know, 30 years or so, consumers have supplemented their income with debt, and they're obviously busy paying

off their debt this time around. >> right. >> and we shouldn't expect that to lift. >> and i would -- >> sorry. >> i was going to say, hank paulson was on "squawk box" this morning, tom, and made the point that getting even this sort of tepid growth, while deleveraging the amount of leverage you needed to deleverage is impressive in and of itself. is that misguided? >> no. i mean -- look, here's an interesting way of thinking about -- a sort of quote/unquote only 2% growth. the thing about growing at a 2% clip, you're not creating imbalances in the system. if you're not creating imbalances in the system, instead of having an average economic expansion of five, six years, maybe the economic expansion is longer than that. i think that's one of the points that people miss for the most part. >> that's a good point. >> yeah, i think the -- i think the natural growth is higher than 2%, but i think we have to grow below potential as we work out the excesses. and we're doing a good job of doing that, and now i think it's the fed that has all of the

excesses and, unfortunately, at least for most -- speaking for most market participants, you know, do i want a real hands-on fed governor that's looking to get the fed more involved in the economy, or one that can slowly back away? and i think that's the main concern. >> we're going to get some answers to that maybe next week. tom, jack, great seeing you guys. thanks again. >> thank you. >> thank you. when we come back on this friday morning, terrible pictures out of new jersey. 50 businesses burned to the ground after the massive fire ripped through the jersey shore town of seaside heights. we'll go live on the scene for the latest in just a moment. [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge.

♪ to help you take charge. 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. but chantix helped me do it. i told my doctor i think i'm... i'm ready. [ male announcer ] along with support, chantix (varenicline) is proven to help people quit smoking. it reduces the urge to smoke. i knew that i could smoke for the first 7 days. i knew that i wasn't putting nicotine back into my body to try to quit. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation,

depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. if i could describe being a nonsmoker, i would say "awesome." [ male announcer ] ask your doctor if chantix is right for you.

just a terrible tragedy in new jersey. just 11 months after rebuilding from the devastation of hurricane sandy, yesterday, a massive fire tore through part of the boardwalk in seaside park and seaside heights destroying four blocks of shops, stores, and businesses. scott cohn is live in seaside

park with the latest. good morning, scott. >> good morning, carl. and just as they were getting back up on their feet, it is just a very, very cruel twist. governor chris christie addressed the media within the last hour or so. the good news, he says, is this fire is now 95% contained. the bad news? the boardwalk here in seaside park is gone. as we take a look at pictures of the scene from the air, they are still putting out hot spots. they're going to be doing that for days. and on that scene are also now investigators -- state, local, and federal investigators. they are not willing to say yet that this fire is at all suspicious. nonetheless, they are appealing to the public for any images that may have been taken just around 2:00 yesterday afternoon on the boardwalk or the pier. governor christie says they're not leaving anything to chance. >> it's always treated as a crime scene, because we don't know what happened. so we're going to preserve

evidence. we're going to let the ocean county prosecutor's office lead the investigation with the others we spoke about. and when they've got something to say, they'll be ready to say it. but we don't have any reason to know anything about why it started. >> they do know what made the fire burn so severely, so ferociously. it was 30-mile-an-hour winds, and the tar roofs of the buildings along the pier. these, of course, are areas that, as we said, were just being rebuilt. >> i will not permit all the work that we've done over the last ten months to be diminished or destroyed by what happened last night. we're going to get back on our feet. we're going to do what we need to do. >> but a huge setback, a double whammy for the jersey shore, and they are reeling this morning. carl? >> scott cohn in seaside park. scott, thank you so much for that. meantime, in colorado, days of heavy rain are triggering serious flash flooding in the northern part of the state. nbc's leanne gregg is in north

boulder, colorado, with the latest. leigh ann, good morning to you. >> reporter: good morning, carl. the rain is still coming down. it's supposed to diminish, but it doesn't mean the problems will be over. look behind me. this kind of flash flooding has been going on for more than 24 hours, and it's expected to continue because of the huge amounts of rainfall and the saturated soil. all of the water is flowing down the canyon, and still could cause some flash flooding in areas for the next day or two. the governor this morning said he is still concerned. one of his main priorities will be the evacuations. last night, the syrirens went o in the city of boulder, and they had to evacuate 4,000 people, because there was concern about a huge wall of water filled with debris, possibly cars, that a usgs spotter spotted before, but it dissipated before hitting boulder, but the concern is to get those people back in their homes. there also were new evacuations in the fort collins area because of the swollen hooter river and

also breaches of dams across colorado. so a lot more problems. they're still assessing the damage, and the cleanup could take weeks possibly months. carl? >> leanne gregg in north boulder. thank you so much for that report. when we come back this morning, after facebook's ipo debacle on the nasdaq, a lot of investors wonder which exchange twitter will choose. will the nasdaq get another shot, or will twitter turn somewhere else? more on that in a few moments. plus, the bell's about to sound across europe on this friday. we'll get their close and the impact here this afternoon in just a moment. looking at covered call strategies to generate income? with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity.

now get 200 free trades when you open an account. chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid with prevacid 24hr.

europe is closing up their week. simon makes a good point about outperformance between europe and the states. >> american equities have done much better this week. on the s&p, up almost 2% for the week. in europe, as they shut down now, it's a gain of 1.5% on the broader market. i mean, today, the mining stocks are weighing on the performance that we've had today in many of the markets. for the week, gold is down 5%. silver is down 8%. platinum's down, copper's down. you see the miners in negative territory. still the m&a deals are coming through in europe. $14 billion on the plate today. vodafone has succeeded in getting enough shareholders to tender for cable deutscheland, the cable tv operator, and this player in germany has taken over 43 hospitals for another

4 billion euros. in germany, importantly, we're now entering the last week of the german election. merkel will probably be re-elected, the polls say. the question is what sort of coalition she'll have. when she gets back in on september 22nd, then europe is in play again. you've got another bailout of greece to consider, portugal, ireland, banking union, german is dragging its feet on, and at the same time, of course, the german constitutional court will rule on whether the bet to underwrite the put under german bonds or bonds in europe is legal. so europe will be, thankfully, back in play. >> they keep postponing this decision. >> once she's back -- once she's back in office, then she can -- we'll know what she's going to do on the critical issues, notably greece, which may have one or two more bailouts. >> all right. thank you. back to the big news. twitter officially filing for the ipo. the question is, which exchange will end up helping twitter go public?

we'll get more on that with bob pisani who joins us here at post 9. let the war begin. >> yeah, it's an interesting question. i'll tell you, if you had to ask me outright, "bob, will it be nyse or nasdaq, tell us outright," i'd go nyse. it's not because we're here. given what happened with facebook, i think that is a huge psychological barrier for them to overcome under the circumstances. and that will be the main reason i go with it. other than that, there have been a lot of competition over the years, a lot of give-and-play, and a lot of issues going on. i'll tell you what's interesting. we don't really know much about this at all, because of the confidential filing. we don't know how many shares are out there. we don't know anything about this thanks to the jobs act. good and bad about the jobs act. this is the bad side. i don't like knowing nothing. i'll tell you something else, i don't think the nyse or the nasdaq knows whether they'll be chosen. twitter has approached both of them. obviously, there have been some discussions. i don't think either one has been told they're the one. >> interesting.

rich peterson at s&p says in proceeds, six of the top ten deals have been priced here. >> yeah. the nyse has been winning in the short term. they're clearly on top of things. they have won some big technology ipos which they never used to win before. so what really goes on here is a lot of co-branding, the nitty-gritty is let's co-brand. let's go out and you can use our name together in your branding operations. we will pay to have people -- there are deals that go on behind the scenes. really, it almost comes down to some kind of branding transaction, co-branding transaction, how much money ultimately can people put together as a package that's attractive to them. >> right. >> for some people, having your face sometimes square where nasdaq is, they've got that billboard there. >> sure. >> that's a big, big sign they've got there. for some people, that's very attractive. for other people, maybe being on the floor of the new york stock exchange is attractive. >> speaking of the billboard, bertha coombs joins us from the nasdaq. you have to make this

conversation over -- >> the nasdaq is certainly pointing out that they've had some ipos. and when you look at the numbers from rich peterson over at capital iq, certainly facebook is the largest tech ipo that we have seen in recent years in terms of size. and size matters, you know, when you have a big one, it makes a big splash. of course, facebook also made a big flop. rich points out that the tech glitch is a problem, and we have feed problems with the cboe feed, but the glitches don't inspire much confidence. what i would imagine, bob, is that this becomes a real courtship. and nasdaq, back in the day, back in 2000, it was 44-to-1 in terms of the big-tech ipos. you wanted four letters, you wanted to be on the nasdaq. now they both court you very differently. and so price is probably going to be a very big issue here, and they're also going to want to

say here are all of the other things, all of the other services that we can do for you. you know, not as big an issue for twitter perhaps, but for a smaller tech ipo, being able to help them with the road show, being able to get them out in front of people, on that big billboard, in times square, is something that's appealing. but, you know, these days, it used to be you saw four-letter ticker, you knew where it listed and if it was tech, you knew it would be at the nasdaq. now it's up for grabs. >> a lot of people have asked me what do you think the letter will be for twitter. obviously, some people are saying twit. i don't know why you would choose that. the company itself would prefer twtr. that would be my guess. >> that's a good one. jane was saying maybe r.t. as in retweet. >> or ruby tuesday. jack -- >> no, twtr. that's -- it's the logical one to take. and i think the company itself, in its own internal -- i've seen twtr referred to -- >> bertha, nasdaq is on the tape

today saying bob grifefeld has the support of the board. it doesn't appear the malfunctions have affected his own security in terms of his employment. >> it doesn't seem to, certainly. they're not going to come out and say, hey, he should go, right? obviously, that's not the p.r. message you want to put out. but one of the things, again, is how they've handled these situations. may very well play into how they can market to twitter and other big companies when they're thinking about listing, about how they're going to handle and help them with their p.r. twitter has its own platform to go out and talk about itself, obviously. they don't really need to sort of raise their profile. but these are the ongoing issues that they're going to need to address if they're going to continue to gain market share. one of the things, though, is these days they're not just about tech. they will tell you, you know, we've had a lot of ipos, we've had more year-to-date than the nyse, but now they have, you

know, banks. they have more retailers, really broadening out. >> a good point. >> one other point about listing fees, people have asked me about this, as well. nyse's largest listing fee, heaviest one is $500,000. for nasdaq, it's only $100,000. partly because of the infrastructure costs for being on the floor of the new york stock exchange. twitter's a smaller company. they certainly won't be paying $500,000 a year. but somewhere in between 500 and 100,000. >> interesting. good discussion, guys. thanks a lot. bertha coombs, bob pisani. in the year since its inception, twitter has played a huge role in everything from political campaigns to ipo announcements. we spoke with twitter ceo about the revolution and the culture at the company. take a listen. even as it matures into a serious media company, twitter has kept its youthful energy and cheeky sense of humor. >> a lot of people around america may watch this and say, that's not like my office. >> yeah. not everyone has one of these?

>> no. >> life-sized tomb raider statues? huh. dick is twitter's ceo. he works long days and hits the company gym whenever he can. social media, it's survival of the fittest. >> average age in the company is probably 25 years old. it's all over at 4:00. in good, tough shape to keep up with everyone. >> twitter's rise in just seven years has been swift and strong. >> i tweeted! >> attracting more than 200 million active users in the world and turning more than a billion tweets every two to three days. "twitter revolution" airs tonight at 8:00 here on cnbc. with the order issues halting stock, two platforms this morning. rick has more in chicago. >> you know, it's funny you mention that, carl.

it proved to be a very short-lived, not a huge issue with the c-2, a subexchange connectivity issue, but it opens the door for my guest, dr. morton lang, and we have a history. we used to trade catastrophe insurance contracts after andrew, 20 years ago now. >> 20 years. >> all right. hft. it didn't really have a place in the freeze at nasdaq. it doesn't look like it's really an issue with the cboe. as a matter of fact, it isn't an issue. it's connectivity. but it raises a broader question, twofold. how can you tell me, look me in the eye, tell me hfte isn't a legal way to front-run other people's orders, a. b, is it using up all of the money that should be going into upgrades of exchanges to woo the customers, which is one of the best cash flow areas at this point as exchanges? >> well, i think a couple of things. one is the hfte genie has not gone back in the bottle. we all live with it. we all actually want it.

and rather than to cboe example we had this morning, which was, in the end, a nonevent, i think for the general public, use airlines is the metaphor, and the bigger event that took place yesterday was united airlines. united airlines, in their booking service that you do online, gave away tickets for free. they put zero price in those things. and they have to eat that cost, by law, they have to eat that cost. and if they didn't, lots of consumers would be mad about not getting the zero price that was -- >> so what you're saying is he need to eat the problem -- >> i think the exchanges need to eat the problems with hfte. myron has put an op ed piece in "wall street journal" a week ago, and i agree with that. i think that's the way to improve things. the hfte system, i think, was a good system. but any system needs improvement. the way i try to think about it, that would relate to you or my experience on the floor, it's like an electronic pit.

and we have lots of people in that pit competing for the orders. >> but yet, back in the days when i was in the pit, if i walked to an order filler who's holding orders, and i said, where are the buy stops and sell stops, right there i did something that could put me in the huskow. >> it should. >> and many platforms, which are all hfte, allow you to see the order books. >> they don't let you see the stops. >> no, but, right -- you can see the orders. let's switch gears. back to reinsurance. you know, you can get about 6%, 7% in reinsurance now. the issue is, most of the reinsurers in bermuda. unregulated. you don't get public pricing. is this a bubbly issue? is avoiding equities, the traditional fixed income market, is that a good 7% to make in your opinion? >> it's a good 7%. it's catastrophe insurance that you and i were involved in. and it's a good diversifier. ben bernanke doesn't control whether or not there are hurricanes or earthquakes.

and so, if you're buying catastrophe bonds, you are taking the risk of those things happening, which are unrelated to financial events. >> good diversity. >> a good diversifier. you can invest historically on a securitized basis about 7%. >> that may be safer. we're out of time. thank you, dr. morton lane. carl, back to youment. >> rick, thank you so much. walmart might stay in washington after all. it all has to do with the veto of a living wage bill in the nation's capital. it could have given workers raises of up to 50%. we'll get more with this -- more on this with d.c.'s mayor vincent gray in just a moment. [ tires screech ]

♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪

...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. the mayor of washington, d.c., vetoing a bill to require big-box retailers like walmart to pay workers a minimum wage of $12.50 an hour. the mayor says the bill was a job-killer and large companies would decide to locate just outside the city instead. vince gray is the washington, d.c., mayor. he joins us this morning. mr. play yore -- mr. mayor, good to have you with us. >> thank you. >> you've been in favor of living wages as a policy in general. why veto this one? >> well, because i think, one, it would have killed jobs in the district of columbia. when you look at it, it covers only a very narrow category of retailers -- walmart, costco and a variety of other retailers. and, frankly, our economic development and our folks

estimate we would have lost somewhere between 4,000 and 4,500 jobs. and, frankly, even the jobs that would be created, there's no guarantee they would go to people who live in the district of columbia, because maryland residents, virginia residents all would be eligible for those jobs. and as you indicated, too, i think that there are a number of retailers who would have simply located outside the district of columbia, which is very accessible to areas of the city, and people would have gone out there to shop where people would have paid -- been paid lower wages. >> yeah. how explicit, i wonder -- i mean, you suspect others -- other retailer wuss have chosen that path. did any of them come to you and say, if you do this, we will, in fact, not move into the district? >> oh, virtually every major retailer affected by this bill, which includes some of those i mentioned, like wagman's, considering coming to the city, they have all expressed reservations. some have said, no, we're not

going to come. others have said, no, we had plans for expansion, we're not going to do that. it had a chilling effect both on the creation of jobs and on the economy in the city, which we really have been trying to diversify and expand. >> you know, we've seen this argument all across the country. there were protests here earlier in the week regarding walmart. again, employees, in this case, asking for a living wage. how do you think big companies should respond to protests like that? >> well, first of all, our response is going to be that we need to create a higher minimum wage. the president has tried to do that. he's got a bill before the congress. who knows where that will go? one of the things i want to do in the immediate aftermath of this is look at increasing the minimum wage for all workers in the district of columbia. you know, people are rightfully questioned why single out this category and this class of retailers when, in fact, you

have so few jobs that are affected by it? what's interesting, also, is that even among those affected by this, those who had collective bargaining agreements -- that is the unionized -- they were exempted. we had one of those that's unionized in the city that pays $9 an hour. they would not have been required to pay anything more than that at this stage. >> that's amazing. there are going to be some critics, mr. mayor, you're letting the perfect be the enemy of the good. >> i don't think this is the perfect at all. i think we're looking at creating jobs for people in the city. we have an area of the city where the unemployment rate is 22%. and many of the people who are out of work are people who would be able to qualify for these jobs. they would get a resume builder. they would, you know, increase, improve the work ethic, and then go on to other jobs after that. my job is to be able to create the kind of quality of life in this city that everybody wants, to get people to work, and frankly, create an economy that's going to help this city be able to support itself.

>> mr. mayor, thank you so much for your time. >> thank you. >> vincent gray, mayor of washington, d.c. okay. so we know twitter is filing for this ipo, but when the stock goes live, what is the ticker symbol going to be? we have a few ideas in just a moment. as we go to break, look at great pictures from inside twitter hq.

john harwood has breaking news about larry summers and the potential fed nomination. let's go to him in washington. john? >> reporter: carl, we talked last hour about the possibility of a summers appointment coming next week, and i had quoted a source close to the white house who indicated that vibes were emanating from that building that it was going to happen next week. i subsequently got a message from someone familiar with white house timing who said timing is wrong, there will not be a new fed chair named next week. so i just wanted to bring our viewers up to date. again, this source familiar with the white house timing on the new fed nomination process says that choice will not come next week. >> all right. thank you very much, john harwood, in washington. don't forget, this morning's "squawk on the street."

what is twitter's first official tweet after going public going to be? your responses are next. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪

paying ourselves to do what we love? 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.

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. ♪

. what's in a name? following the filing for an ipo, twitter's next step is what the symbol will be. jane wells has some ideas. hey, jane. >> hey, well, it won't be slim-shady. the filing lit up twitter faster than a miley cyrus hashtag. you heard bob talk about it. the serious answer is probably twtr. boring! more creative suggestions include, twit. but that's already kind of taken. taiwan technology trades is twit on the tie won stock exchange, and it would be unusual, but maybe not impossible. who would want to be called twit? other suggestions include tweet,

from @chris, and a lot of people want hash, for hashtag. others say why not have the hashtag symbol be prince? a lot of people are suggesting bird, including jamie cox, or chrp for chirp. i like blok for block. we also have bubl, which, bubble, or buble. and then, yawn from @babe. sbsux, poking fun at a competitor, and one suggests apple for the acquisition prior to ipo. some suggest rt and ff. a couple of my own ideas, flwl, for fail well, and cxl, roman numerals for 140, however, those letters mean cancel, which could mess up trading on the first day, if on the nasdaq. what should it trade at?

some say $140. it leads to my favorite suggestion. twitter should trade as twerk. carl, bringing us full circle to miley cyrus. >> i have to say, jane, if a poll were taken on twitter, the cxl is probably in the lead. that was a big favorite last night. i also just got one zsh thank you. >> adhd. not bad, right? >> that's why i like that. adhd, which is how we've been reacting to it. >> yes, you got that right. good stuff, jane. it's what people are talking about. jane wells in los angeles. >> you bet. >> in today's "squawk on the street," we didded you the first official tweet after going public. glenn writes, dear facebook, that's how it's done. dennis writes, the first ipo tweet, cha-ching, and we got a lot of those. david tweets, how tweet it is. very nice. before we go to "the half," look at intel. jeffries upgrade makes it the top-performing dow component.

they're talking about the $60 billion in r&d spent over the past couple of years, new products targeted to growth markets like low-priced pcs, tablets, handsets, and points out short interest at all-time high, eight times the average of 2013 to 2010. have a great weekend. let's get to headquarters and scott wapner and "the halftime." >> all right, carl, thank you so much. welcome to the "halftime show." four hours until the close. let's take you to the wall. a bit of a mixed day. a good one for the dow and s&p. there's the dow, 15,370, a gain of 70 points. s&p is positive. nasdaq is a touch negative. here's what we're following on "the half." tweet this. twitter files for the long awaited ipo. you'll hear from a man who owns the stock on what it's really worth. debate it, is a big disney buyback just the thing to keep the mouse house moving higher?