>> do not let -- i mean, talking about getting a hawk, but if you let lucky out and there's a hawk, that is toast. >> that's why he keeps it close, to protect him. >> haven't your kids been bugging you? >> we've got to roll. >> join us tomorrow, "squawk on the street" begins right now. good morning, welcome to "squawk on the street." i'm david faber along with sara eisen and simon hobbs. live from the new york stock exchanging carl's on assignment, and jim has the day off. a look at futures now. of course, we are beginning a week after what was a very poor week, at least if you were long the market. you can see we are setting up for a higher open at this point, though on friday we similarly had positive signs early but saw the s&p end the day down over 1%. for the bond market, well, you're not going to get much

there it's closed in observance of the columbus day holiday. our road map this morning starts with, of course, the markets, attempting a fresh start after logging one of the worst weeks of the year. looking ahead to financial and technology earnings. >> the first case of a person contracting ebola on u.s. soil has been confirmed. a complete report in a few moments. fear cry -- automobiles marking the return of a chrysler-related stock no the u.s. market. in the meantime, new era here at cnbc. we have a new look debuting today from our ticker to market boards. you're going to see different looks through the day. your chance to get closer to sara eisen simon hobbs' funny faces. >> and figure out what's going on in the corner of the screen at all times. bulls hoping to put a week of worries about global growth behind them. dow falls 2.7%, erased gains for the year. for the index people care about,

the s&p and nasdaq, they had bigger losses, suffering its worst week since may 2012. earnings seasons ramps up this week, results from goldman sachs, citigroup. hear from big names in technology, google, intel, ebay, netflix if you consider netflix technologien it's combination of media and technology. i didn't mention oil. in the calls that i make in the morning, typically talking to those who manage hedge funds, oil is what they're watching closely. down again, saudi arabia saying we're happy in the 80s, we're not going to worry about it, not going to cut production. though this morning, while oil may be moving lower -- >> there you go. >> -- we are seeing markets stabilize. >> and energy share as among the hardest hit. oil down 20% in the last four weeks. those stocks have been absolutely brutalized. besides oil, the conversation and whether it is reflected in oil, has changed to a global

growth story. people are concerned. i was in washington at the imf world bank meetings and over the weekend chatter of the concern over what's happening in europe, close to recession and deflation, two scary words, what's happening in china and how these things are coming together at a time where policymakers have exhausted their options. >> somebody said, timing is everything. had they had meetings three weeks ago the conversation would have been how the u.s. economy is outperforming everybody else. it was rough last week. what did we lose? 3.1% on the s&p on heavy -- for the week, the worst in three years. if earnings come through strongly, perhaps put a floor under that. people would argue you've driven the froth out of the market. >> a lot of pain in various corners of the market, not just energy, but industrials, anything having to do with multinational, given concerns about europe. >> and the dollar. >> global growth and the strong dollar what that will mean for those who export a good deal.

i'm hearing about a lot of pain in hedge fund quarters, as we typically do. they are levered but quickly move to take risk off and they often times are in many of the same stocks in which you will then see moves exacerbated by all of the selling. i may get to that later in the program. >> from the guys that you talked to, do they see this as inflection point for the market where we've seen this nice persistent bull market for several years in a row and this is just a healthy kind of correction to make new highs, or is this a turning point, end of quantitative easing, concerns about global growth and not much to do about it? >> i would say no consensus. people come back to the end of qe in particular, saying forget the other noise. it may be the fed is no longer expanding its balance sheet, but still be to a certain extent for the run-off -- >> maybe not raising rates. maybe take the rate discussion away now. they have the slack on the inflation front to keep rates

lower longer. >> keep an eye on credit also. you follow it to a certain extent. keep an eye on that. you want to turn to credit and see if things are starting to seize up a bit. nothing like '08 or '07, i don't want anybody to make analogies. but credit markets, things have been widening, and that's important to also keep in mind. >> talk about it more. start with the market panel on monday morning. let's bring in cnbc contributor, michael farr, president of farr, miller and washington. also with us, rod smith. good to see you both on monday morning. michael, starting with you, is some of the optimism lost? is there a feeling like this rally has completely run out of steam for the year and things have changed, or is it just sort of a correction that's healthy to keep going higher? >> yes, the answer i think. we haven't seen this volatility at these market peaks before. we saw, what, 2.6% down in two days at the end of last week?

this volatility is striking to me, and i feel like we should sit back and pause. the fed has stepped in and driven these markets, just as you were saying, just as simon was saying, that monetary policy might be back on the table, so markets could be optimistic. i hate to hear that because i think it's true, but i think we really need to be looking at market fundamentals and earnings. we haven't seen a 10% correction since 2011. this is the longest anticipated correct that just won't come, but we're still waiting in this feels strangely topee to me. >> but can i point out the quote, simon you referred to this, stan fischer, vice chairman of the fed, speaking over the weekend, if foreign growth, quote, is weaker than anticipated consequences for the u.s. economy could lead the fed to begin increasing rates more slowly than otherwise. rod, does that mean there is this idea of a fed put in the market? as long as you have zero interest rates and federal reserve concerned about things we don't have to worry about

normali normalized policy. >> let's expand the debate and look at global monetary policy. you've got a transition from the fed being one of the major providers of liquidity to the beginning of i a similar program in europe, much debated between the numbers of of the ecb, but draghi being very clear it's his goal to expand the european balance sheet. secondly, if you'll allow me, i think we should remember that this is a very normal occurrence in marks at the time that the federal reserve is transitioning monetary policy, even if it's from accommodative to less accommodative. we haven't had a 10% correction in a long time, because the fed has been unequivocal. it's very, very unusual, and not my prediction, for the bull market would end before the federal reserve has even begun to tighten.

so i think the prudent thing to do is look at this as a correction, but perhaps one of the more significant corrections that we've had in a little while. >> i don't think decoupling was true, the u.s. even in trouble could depend on growth overseas has shifted to where people are saying u.s. is going to be just fine and you don't need to worry about europe and you don't need to worry about china. china's the world growth engine for a long time, and i agree with rod, pay attention to what happens go on in europe and around the world. this is different. it feels like. >> for now, we'll have to leave it there. more market talk on "squawk on the street." good to see you both. >> thanks. >> thank you very much. the first case of a person contracting ebola on u.s. soil has been confirmed. a health care worker treating thomas eric duncan who died last week has contracted the deadly disease. meg terrell joins us from -- for more from dallas. meg?

>> reporter: hi, david. that's right, the health care worker working here at texas health presbyterian taking care of duncan since admitted september 28th. she had extensive contract with the patient, the cdc tells us. she had been self-monitoring, taking her temperature twice a day. friday came down with symptoms, placed in isolation saturday. she tested positive for ebola and yesterday the cdc confirmed is it ebola. her condition is stable. one contact has been placed in isolation as a proactive measure. and the cdc's director dr. tom friedan says it's unknown how the health care worker was exposed. >> we don't know what occurred in the care of the indexed patient, the original patient in dallas. but at some point there was a breach in protocol and that breach in protocol resulted in this infection. >> reporter: she was not one of the 48 contacts of mr. duncan's

who have been monitored and none of them have shown symptoms of ebola. all of the health care workers are being monitored. if one was exposed, it's possible to see other cases. this is raising a lot of questions how well health care workers are being trained to deal with ebola. the nurses union did a survey of 1900 nurses and 76% say their hospitals haven't communicated policies on what to do if an ebola patient is admitted. 85% haven't gotten education on ebola, including opportunities to ask questions. so, a lot of questions being raised about this preparedness. we'll be hearing more from the cdc today around noon. simon? >> and huge questions over hospital liability as well, meg, we should mention, if that is the case, if people can sue. we will talk to a former head of the cdc later in the program. for the moment, meg, thank you very much. here in stock views fears cries automobile debut, return of a chrysler-related stock to

the market. phil lebeau is here. >> don't call it an ipo. i've heard that a million times. it's a listing of fiat chrysler, for the first time since 2000ing back in the days when chrysler was owned by daimler, we are seeing the chrysler stock, in some form, trade at nyse. the listing happens later today symbol, fcau, this is an adr traded at nyse, also traded over in italy. we'll see pricing come in and it will start trading after the hope and sergio marchionne, with the chairman, john elken, will ring the closing bell later today. when you look at fiat chrysler, keep in mind two things. first the growth plan over the next five years, what the market is focused on now. 60 billion will be invested as they expand global sales. really targeting both north america expansion as well as asia. the target here, this is

ambitious, to the point people are calling these pie in the sky projections from fiat chrysler, 60% jump in sales over the next 5 years. where that is coming from? it's going to be coming from jeep. the hottest brand go, not only here in north america, long been its base, but they're planning to grow jeep aggressively in asia, which makes sense. demand for suvs in china is so strong right now, and it's expected to remain strong, and if you look at jeep in china, i've been over there people ask about it, you don't see them sold there very often and that's the big target in the future for fiat chrysler. take a look at shares over the last year. it's up 2%. 2% gain for shares of fiat chrysler trading in europe. compared with gm and ford, both down 17% and 19%. relatively speaking, you know, fairly tough year for the auto stocks, fiat chrysler has done pretty well there not just a tough year. a tough last week for general

mote ofs, brutalized and ford got the warning. bad timing. >> ford got the warning and everybody said, hey, marry barra, you want to be as ambitious with your plans? that's why gm is down. >> this is not an ipo, no capital being raised. but they are going to need to raise capital down the road? >> that's why sergio's come to the nyse. he's no fool. he knows he's going to need money in the future. right now self-financing $60 billion expansion but everybody's said, they will come to the markets here at some point. >> all right glp don't forget, he's on street signs. don't miss sergio. >> no, and you, i assume. >> the best quote, he's done by 2018. some other punk can come in and run the place. >> punk. >> assuming he achieves his targets which are ambitious, correct? >> they are ambitious. i don't think sergio's going anywhere anytime soon. >> only a few more hours to see

you again with sergio. yellen's uk counterpart mark carney, what hips take on worries about a global slowdown? you're going to want to hear what he told steve liesman next. also ahead, paypal co-founder peter thiel, after another volatile week in the markets. a look at futures here. set up for a higher open at least right now. more "squawk on the street" live from the financial capital of the world, nyse, when we return.

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take a look at shares of jcpenney. they had been looking down on a downgrade this morning but i believe they've turned around. yeah, they have. because the company has announced its intent to have a new ceo. home depot executive marvin ellison will replace mike ullman august 2015. ellison, by the way, spent the last 12 years at home depot, also at target for 15 years prior. ullman will serve as executive chairman after he hands observe ceo title. he was interim for quite some time. more permanent and will be until august, the ceo ullman, still trying to turn things around this is after they had investor day last week which wasn't too -- analysts didn't take away too much optimism. the stock plunged after that day. ubs the downgrade today. we'll talk to the analyst later.

>> one wonders why if they had the announcement coming they would not have timed it with last week's analyst meetings. >> we'll have the analyst later on from ubs. maybe he changes his mind as well. the canadian running the bank of england mark carney, saying about the challenges facing over the global economy. steve liesman spoke to carney and joins us now with more. busy week in d.c., steve. >> yeah, talked to a lot of central bank governors, maybe none more important than the governor of the bank of england, sounding more dovish on rates than he has in recent months, lower inflation and trouble has in europe would influence boe policy next month's meeting. >> there is weakness, more broadly in emerging markets and europe, and europe is the largest trading partner of the uk. take into account clearly a more modest global recovery if that's the case in europe. and we in addition with that domestic focus, we really are

concentrating on what's go on in the labor market, which is important as external developments for the path of monetary policy. >> carney saying take account of lower inflation. many markets thought the boe would the first major central gi bank to hike as soon as the spring. carney, though, not troubled by recent wild market swings. >> we have to accept that, as this process moves forward, as some economies emerge, from a period of exceptional, unconventional stimulus, there will be greater volatility, and that in and of itself should not influence the path of normalization of monetary policy. real side factors that we were discussing, external demand pressures, of benign global inflation, those will. >> carney did not see the recent downgrade of the outlook for french debt as a sign of global

systeming risk. it's part of the chronic phase of the financial crisis, not the acute phase. as you know, carney's comments, dovishness echoed by stan fischer of the federal reserve of the united states. >> fed making it clear, they're in no rush to raise rates with the global weakness. great interview. coming off of last week's wild ride in the markets, fiend out what art cashin is expecting from the trading session. joining us here at post nine, next. a look at futures on the way out april calmer session, it looks like, into the open after the biggest weekly decline for the s&p and nasdaq since may 2012. more "squawk on the street" straight ahead.

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♪ all right. about seven minutes before the opening bell. let's bring in art cashin, director of floor operations with ubs. a bit of a bid, maybe perhaps thanks to europe. you mentioned to me as we were talking during the break, oil, though, keeps going down. last week you were focused on it. >> yeah, and i think certainly the message from saudi arabia seems to indicate they're not interested in doing anything to stop the drop in oil. so i think that will continue to put some pressure on prices. the good news is it will work its way through the pump and that will be a benefit to the u.s. consumer but it's going to disturb energy stocks and maybe disrupt some of the foreign economies again. >> how much technical damage was done last week? and what are we watching?

still watching that 1905 august lows, 200-day moving average on the s&p? >> that area 1900, 200-day moving average, as you say, previous low. if they can hold, they might build a bounce out of things. i think we'll have to work our way through at least a couple of days this week to get a better feel for it. >> what does it say to you when you have this eruption of selling as you did in the last hour on friday on heavy volume? i think the third heaviest volume day of the year? jim cramer described markets as treacherous. >> i think treacherous is not a bad word, concerning what you saw. there was some feeling that maybe not margin liquidation but some position liquidation late in the day that got forced on someone and that probably also contributed to the increased volume, the run rate moved up. >> what do you make of the argument, i've been hearing this more from the bears, the

russells, small caps have fallen sharply and they're in correction, as the canary in the cool mine, the stocks in the dow will follow suit? >> i've hear the same thing. it's counterintuitive, everybody's talking about the slowdown in europe and the height of the dollar and here the small caps leading to the downside which shouldn't be the case. so, yeah, they'll be watching. nasdaq got a lot of damage late last week and i think i'm going to watch to see if that rolls over today and begins to pull things through. >> the chip stocks, in particular, on friday. what turn it? earnings season perhaps the hope that things are better than expected, we get momentum to the upside? >> the hope is that earnings will be strong enough and the outlooks, david, how do you look at the fourth quarter? that will really be critical. >> as it often is, of course, the conversation around guidance, what they're seeing. art, thank you. opening bell 4:30 away. stay with us on squawk on the

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opening bell will be ringing in a little over a minute from now. all we're watching a lot of things including the fact that fiat chrysler is going to be starting to trade here again. it is not a capital raising opportunity but may be helpful for one down the road, phil lebeau. >> sergio marchionne maneuvering for this day since he first got his hands on chrysler. at the time, think back to 2009, people are like, let it die. chrysler's a dog. there's nothing worst saving there. he knew the value of jeep. he knew that is probably one of the two or three brands that you can grow globally because it's got great brand recognition and that's what he's been doing. look where fiat chrysler is. yes, fiat chrysler will be trading today at the new york stock exchange, the ticker symbol will be fcau, as i look at the post right now, going to start at $8.70 a share. remember, it's trading here, also trading over in europe. it's not a capital-raising event. but when you look at fiat

chrysler in the last year, take a l at these shares, up 2%. you might say to yourself, big deal, it's up 2%. well, gm and ford are down 17% and 19%. a nice day. don't forget, sergio marchionne will be here ringing the closing bell, but before he does that, he's coming to the set. he's going to talk with us during "street signs." you heard opening bell, cheers on this columbus day. look back at hq, see the s&p 500 real-time exchange which, well, right now, more red than green. here at big board, government services company vectrus celebrated a spin-off and at the nasdaq, nxtid, biometric authentication company, focused on the global commerce. very inus in afteric. >> noisy crowd. we are opening with a slight bounce for the major averages. coming off the worst week in two years for the s&p 500 and

nasdaq. the vix, the volatility gauge, highest sense february, above 20. we're watching oil as this harbinger of global growth concern that's been under a lot of pressure. >> top gainer at the open, csx, news over the weekend that canadian pacific railway approached about the possibility of a merger, to give access to the oil terminals in north dakota, two combined railway networks but rebuffed the offer. david, saying, both equal, about the same size, $30 billion each. >> yeah, similar size in market caps. not a great deal of overlap in two footprints of the giant real companies. you could argue a lot of benefits that would come from their combination and perhaps not arise as much antitrust concern, but the surface transportation board, of which former member sits on canadian pacific's board, nonetheless likes to weigh in on these kinds of things. but we at least know "the

journal" and new york reporting overture made by canadian to csx but more or less summarily rejected, then you get a leak, letting markets know about it. we'll see whether anything follows. >> the railroads opening higher. >> an opening for fiat chrysler, phil lebeau. a debut, not ipo. >> lifting. it's coming in at $9, $9.10 a share. there it is, 9.19. for sergio marchionne, as you mentioned, everybody will say, what's the big deal, it's not an ipo, it's not a capital-raising event. we've seen his maneuvering. we know what he has in mind some time down the road. at some point, he will come to the capital markets and he knows that coming from the nyse is in a far better position than where the company was in the past. >> as an investor, if you look at profiles of gm and ford versus chrysler, they're very different. cash flow and balance sheet. >> absolutely. he needs scale. he has got a company, seven

largest automaker in the world. he knows he needs to be larger. he's not big enough in asia. look at problems in europe, fiat is a drag on the company. yesterday he was in california for the 60th anniversary of ferrari, and robert franken was there. >> he's still there. >> he asked, will you do a spin-off of ferrari. he didn't say yes, he didn't say no. he said, we'll do what's right for the company. >> ferrari another crown jewel in the portfolio. >> absolutely. when you look at what he plans to do, four years from now this will be a far different company than what it is right now. >> how much of sales, riffly, half from the u.s., along those lines, phil, for this company right now? >> yes, roughly half. when you look at the u.s., the real engine here is jeep. jeep is up 40%, something like that, this year. it is clearly lapping the rest of the market. and think about that, it's not even expanding yet into asia. they're sticking their toe in there. when that kicks in, people are

saying, wow, watch out. >> will they still make cars in italy in ten years' time? >> they will have a token presence, that's my prediction, they will have a token presence there. you will see them shift more to asia and of course big here in the u.s. did he do it on columbus day on purpose? >> you wonder about that. >> very american. >> sounds like it. >> yeah. >> why not? >> sure. just want to point out here that the two sectors under pressure here in the opening action for the s&p 500 are consumer staples and telecom, also health care and consumer discretionary under pressure. it's interesting because last week was defined by this volatility. defensive names, consumer staples and utilities were the best performing sectors. those are under pressure. a bit of a reversal but it feels like everybody's sentiment has been shaken and people are nervous after what we saw last week. yeah. looking at banking sector, most names are up this morning. we are hearing, as we told you at the open of the program, from the likes of jpmorgan,

citigroup, goldman sachs, all this week giving us their latest quarterly numbers. as art cashin mentioned, it's going to be as much about guidance for so many companies, financials perhaps may not have as much of an impact on broader market, but nonetheless, we want to hear from these companies in terms of what they're seeing coming, not just what they are telling us they already have reported. but all of them showing life, this morning. goldman sachs shares up over 1%. morgan stanley up 1.3%. >> an lifts are enthusiastic what we'll see from the big banks, right? increase in loan growth, better trading activity. >> fixed income. >> i guess it does fit into the last quarter, the last few weeks of what we've seen in fixed income, in terms of heightened moves. >> some of the basic resource manufacturers, the miners have done recently well at the open, following through from europe april lot of broker comment coming through in general in the sector, suggesting now might be a time to buy after the recent price falls. alcoa, freeport, numont higher,

in a tape showing green. >> better news from china, exports rebounding 15%. people say thank you to iphones, apple products because ofape pre big suppliers in asia, china, that's positive after a mixed bag when it comes to chinese data. >> shares of jcpenney, we mentioned earlier, are up. initially looking down this morning on a downgrade over at -- what was it -- >> it was ubs. >> yes. downgraded the stock to a sell. talking about the fact that they simply don't believe the $1.2 billion in ebitda the company's targeting by 2017 is something they're going to be able to get to based on it would need three straight years of 5.4% same-store sales growth and flat sg&a spending in terms of dollars, saying that's overly optimistic, given they expected the department store industry to grow at 2% compounded annual

growth rate over the next three years. >> they didn't like the product. the stuff that you bought to show us, isn't going to move the needle. >> those targets are now going to be the focus of new ceo, mr. ellison, who is going to be running this company as of august of next year, taking obserover more mike ullman, who has tried to turn around jcpenney after the disastrous run under ron johnson in which the company, i guess, lost over $6 billion in sales. i think that's the number. >> how much have they made back? $2 billion? >> maybe around there, yeah. >> just to mention, ubs target, brought it down to $5, that would suggest further room to move south. >> on the subject of management and talent, did you see piper jaffray downgraded darden in the wake of the extraordinary news last week that they've managed to replace the entire board, suggesting that they believe that human capital trumps financial capital and any belief the current coo has been

instrumental in the recent sales momentum and believe that david george has made a significant difference. they're criticizing the potential talent at the helm of darden and whether it's good enough of what investors have been doing. >> i spoke to jeff smith friday after the show or during the end of it. obviously first order of business at darden find a new ceo, and that's what they're looking at now. then they will revisit, of course, many of the questions about real estate, various separations, if in fact they should occur. darden shares down 1.3%, after an extraordinary victory for activism overall. >> was he expecting that? >> in last week or two, in fact, apparently management knew it as well, so allowed them to start getting access to things even ahead of vote, knowing there was going to than huge change in the makeup of the board. >> a win for him. to bob pisani on the floor. he's got more on what is moving this morning. bob? >> i want to point out, crisler,

fiat, 9.46. nice move here. high's 9.50. at the high, 9.50 on fiat chrysler. this is, as phil pointed out, not an ipo. an exchange offer. they're exchanging shares for fiat chrysler automobiles. it's a dual listing in milan and new york city. long tortuous road for chrysler, 1998 traded under its own name until sole to daimler, cerberus, 2009 bankruptcy, 2011, fiat stake. from dutch to italian domicile. changes going on in the corporate front for chrysler. here in the u.s., first time since 1998. sectors for the open, a choppy open i've been looking for a bounce in energy. still not seeing it to appreciable extent. energy's the sector to the downside, some of the other sectors here, health care was

either side of positive or negative this morning. so sort of a mixed open here in the united states. over in europe, europe is mostly on the upside, france, germany, spain, all on the upside, as well this morning. one or two of them are on the downside. a lot of worries for the market. we've got china slowing potentially, europe slowing, ebola concerns as well. negativity has built up. look at this list over the weekend. 63% of stocks were oversold. that's a lot. that's a huge number. vix up 80%, just in the last couple of weeks. internals deteriorated dramatically, expansion of new lows. a lot of technical damage in the market. another one of these indicators. fear and greed index, one cnn money uses, extreme fear. we were just -- neutral a few weeks ago. so the sentiment is extremely negative now. what you want to watch, a little bit of stability. i say before when the vix goes

over 20, it gets my attention. it's over 20. today watch the vix for stability or 21, right around there for the day. should be sideways for the next few days, if we get instability. any move up there, into 24, 25, a lot of notice, see a very fast reaction from the marketplace. another thing to watch, travel stocks. stable this morning, as i came down and looked, put up delta, some of the airlines, jetblue, carnival, ccl. all looked stable here today. hard to see that, i'm a little ways from the monitor. that looks well on top of that. so right now, market's up 44. simon, looks stable? >> fiat chrysler at $9.29. back to you. >> thank you, bob. a lot of people focused on the nasdaq this morning after we lost 4.5% last week. let's check in with morgan brennan at the nasdaq to see how we're opening. good morning. >> good morning, simon. that's right, trading higher with the nasdaq composite today.

up about eight, nine points after the steep sell-off last week that resulted in the worst weekly performance since may 2012. semiconductor big catalyst. chipmakers continue to be in focus this week. seeing the largest names, trade mix, intel reporting after the bell tomorrow. speaking of large cap tech companies, i want to focus on the nasdaq 100, that's up trading higher today as well, up more than 7.5%. so far this year, jones trading chief market strategist michael roarke notes five stocks accounted for 93% of the gains so far this year. apple, microsoft, facebook, intel, and gilead sciences, without those five names the index trading near flat for the year. so earnings for these companies will become more important. those are in focus and that starts with intel tomorrow. strong results could allay

investor fears, continue to see folks rotating back into the large cap tech names. that's what we're looking at right now. back to you. >> thank you very much, morgan brennan. you know, it becomes something of a cliche during periods of market volatility, hedge funds and hedge fund pain and it being far greater than the pain being seen by mutual funds and/or those who invest more broadly in the market. yet again that is the case last week a good deal of pain felt by those who managed more than $3 trillion in hedge funds. now of course, hedge funds cover a lot of different things. we forget sometimes we talk so often about credit where they have huge allocations as well. but those who play long/short equity, particularly with a focus on event driven names, it was painful. also if you're focused on energy as you well know, that has been something of a pain. why? well, of course levered in part that can help to hurt returns,

and they take risk off quickly, and when all in the same name that can hurt. take a look at hertz, one example of many i can give you here. whether it's related to splits or/and or takeovers. carl icahn one of the largest shareholders, joined by so many others in that name. a lot of this started afew weeks ago for hedge funds who had positions in fannie and freddie preferred, remember that move down? incredible destruction of value. when we heard from the judge in the case who said, i'm not going to look at it. the government here, the congress has right to do what it wanted in terms of takings under the third amendment to the agreement between the treasury and, well, agreement, between treasury and these companies. that started a lot of the carnage. but it goes on from there. companies talking about potential splits. i can go through a lot of them. again, talking about significant

pain one has to wonder whether we will see significant underperformance by the hedge fund cohort as it tries to compete not only with itself but with the broader market. all of the stocks down far, far more than that 3% move we saw last week, sara, in the s&p. >> you mentioned energy, as one reason the hedge funds at least those betting on that, have been hurt. let's get more on the action. earlier we saw brent crude hit four-year low. jackie deangelis, good morning. >> reporter: good morning to you. that's right, let's check out the price action as we continue to see a slide here in oil futures. watching wti, over 85 now but under that level just moments ago. and the brent price, under 89 but the four-year low spooking the markets a bit. now the middle eastern producers saying that they are comfortable with the price where they are, and letting them slide, not necessarily increasing production right now. but still, we are seeing sharp declines today.

i do want to highlight this is good for gas prices. the lundberg survey saying retail gas prices the lowest in near will a year. national average 3.26. i paid 2.99 this weekend. under $3 in new jersey. i want to switch gears and talk about gold for a moment. we see a little bit of safe haven buying in gold. i use that term loosely. it's not a safe haven trade on the table for last six months or so. we do see short covering, jitter in the market getting that gold price higher. back to you. >> jackie, thank you very much. coming up on the program, it's finally that big week for bank earnings on tap. jpmorgan, wells fargo citi. how should you play them? ahead of the curve, next. volatility and valuations in tech. we'll discuss it all with venture capitalist and paypal co-founder, peter thiel, next. there was no question she was the one. she reminds you every day. but your erectile dysfunction-that could be a question of blood flow.

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when jamie dimon comes out with earnings, different story from where we were last year, where they had legal charges and the losses. what would you expect from jpm? >> for jpm, we peck a decent quarter, in line with the street. the key for banks is outlook because third quarter is seasonally challenging. but as we look at jpmorgan, we expect much better operating leverage out of the consumer bank, and really in our view, jpmorgan has the highest quality of earnings in the group with less reserve release and less reliance on private equity gains. >> chris, would you agree? >> i any in general we're in a stable part of the cycle. i've aulways said 8 out of 10 bank stocks are a boring place to be. predictable act tu air il nature to it. we've had stable net interest income. most of the fee categories have been growing slightly with the

exception of mortgage banking which got hit by the taper talk last year. but that's anniversary. and you know, expenses, other than litigation drifting down slightly. that gives us very, very modest earnings growth but still positive. in the absence of bad news, the stocks drift higher relative to the market. david are we going to see the results of what has been the story of the quarter, and that is a lot of m&a activity and new issuance, ipos? isn't that going to help the investment bank focused ones like goldman sachs and morgan stanley? >> i think it will longer term, but i think this quarter's a head fake. keep in mind, third quarter seasonally the weakest quarter. so the data of completed deals doesn't look that great this quarter. so i think what is key is the outlook over 4q and 1q. >> chris what about loan growth?

it's been decidedly absent for the last few years. starting to see it pick up or do you expect that it will? >> it has been picking up. it's interesting, loan growth accelerated to roughly a 5% year-over-year rate by the middle of 2012. then by january of this year, back down to 2% year-over-year. and in september, around 6% year-over-year. so it actually has accelerated a bit. that's a bit of a positive. i think the fact that we've anniversaried the downdraft in mortgage banking is a bit of a positive. you won't see a breakout until rates go higher, that will be the next key event for bank stocks. >> good to see you. we're keeping an eye here on some of the automakers. phil lebeau in new york with news here on ford. >> ford, adding 850 jobs at its deere born truck plant, the

f-150, one of two plants where they bill f-150, also build it in kansas city. what's interesting here, 850 jobs is great, anytime a company can add jobs, people love to hear that. what happens going to happen with the launch of the f-150? a debate raging among analysts and auto community how smooth this launch will be. ford has not had smooth launches over last three or four years. it needs a relatively smooth launch of the f-150. if they run into problems, if they run into some type of a recall, i'm not talking catastrophic, but a recall, let's say, within the first year, that is a large one, people will say, can you not do a smooth launch? >> thanks for bringing us that news. ford shares under pressure. >> good having phil here today. >> always. >> show up more often. jcpenney a lift on news, announced future leader. coming after one analyst downgraded the stock. we'll ask him what he thinks about jcp's new ceo. we needed 30 new hires for our call center.

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welcome back to a new look "squawk on the street." road map begins with sharp swings in financial marks. renewed economic fears around the world. corporate earnings taking center stage this week. extended conversation with peter thiel, paypal co-founder, on carl icahn and of course on facebook, he sits on the board. fiat chrysler debuting here, brand-new ticker, five-year growth plan, do not call it an ipo. broader markets.

and take a look at what is happening. we are seeing them sort of swing between gains and losses. now in the red, after last week's sell-off. the worst week for the s&p and the nasdaq since 2012. we're also watching over in europe the german dax. back in positive territory after hitting one-year low amid concern over the economic strength there, there concerns about europe entering recession. let's bring in samir. you say the sell-off created interesting opportunities. explain. >> absolutely. you know, a lot of people are focusing on the disappointing economic data and has been disappointing. but we think it's a mat or of expectati expectations. last year very low and economies did well. this year we have had expectations to be really high after the gains of last year. we have seen disappointment. ye we've seen geopolitics in the ukraine affect germany. next we're the weakening euro

will improve earning prospects and that should lead to more gains. >> do you have to wait it out? here we are coming off the first three-week declaines for 2014 w thought we would get a bounce. that didn't last long. >> folks that have to wait are dependent on short-term performance. for long-term investors it's a great buying opportunity. you wait and going about your day job, if your a retail investor you might miss the lows you start legging in and that hopefully make you whole as earnings prospects come through. >> what do you think happens now in earnings season? goldman last week saying because of the moves in the dollar, people should expect disappointing revenue results and negative earnings per share guidance. do you disagree with that? >> no, i don't. i think you could see d disappointment aurnd the currencies here and some upside surprises on the european side because of the euro. so, some of that will awash out

in the translation effects. but at the end of the day it's about what are companies doing from a volume standpoint and there it's still sluggish but it is improving. >> i wonder what you think about the increased volume. we were counting the days, 62 days, i looked back, where we hadn't seen 1% move in the s&p 500. in the new era of volatility, how do you protect yourself? what's the hedge guns that naga now we're in an uncertain global environment? >> you know really back to basics. it's a well diversified portfolio. look at pullbacks that we've seen, it's good old treasuries that tend to do the best in the environments and a lot of people have let their fixed income allocations look way too much like equity allocations because they're reaching for high yield, emerging market debt and it's just getting back to stocks versus bonds. i think if a lot of people do that, they would have been through this pullback without a lot of losses because treasuries

have done well recently. >> what is the bigger picture here? what are the new guys at pimco or one of the people promoted at pimco saying, in the years to come you'll get 3% on the bond portfolio, roughly the same as you'll get in equities. is he right? >> i think he's probably low. i mean, i don't see any reason why equities can't give you that long-term 7% to 8% type return. you're getting 3% on the bond side, you've got a diverse portfolio yielding 4%, 6%, 7%, healthy returns given how low inflation is. >> do you see a benefit of what's happening? the bright side of the sell-off, that is treasury yields have reached new lows, and oil prices are down, gas prices at the lowest in a year. that is stimulative for the u.s. economy, help us weather this global storm? >> absolutely. i mean, i think you know, so here in missouri, we're filling up for less than $3 a gallon.

you know talking about interest rates. some people are talking about refinancing again. so, you know, i think you'll start to see some of those things happen. you've seen home prices increase. people under water, maybe couldn't take advantage of rates last year when they were this low, can do that now. a huge stimulative effect coming through. say the weather's not as much of an issue, some people thinking it's milder, you could see an upside surprise going into the end of this year and into next year. >> thanks for joining us on all of these global themes. we'll keep an eye on it. in the meantime, second case of ebola in dallas confirmed over the weekend. this time, a nurse who treated thomas eric duncan who of course passed away last week. meg tirrell in dallas with the latest. meg? >> reporter: that's right. the nurse here in dallas is the first case of a transmission of ebitda in the united states, and of course the first case to be transmitted outside africa

anywhere was a nurse in spain. health care workers at the most risk. the nurses union saying that they're not receiving enough training on how to handle ebola patients. >> we're seeing that caregivers who are not being adequately trained are being blamed, we're hearing that they have not followed proper protocol when we have been asking our hospitals through the country to provide us with training that allows us ask questions with training about how to put on the proper and optimal level of personal protection equipment. >> reporter: the cdc's saying they don't know exactly how the nurse became infected but if she was exposed others may have been as well. she's currently in stable condition. and there's questions raises about whether ebola patients treated only at hospitals specially designed to care for ebola patients, there's four in the united states, including emery in atlanta and nebraska,

where muthe nbc cameraman is beg treated. screening began at jfk. it's going to begin at four airports later this week for all travelers coming in from the three infected countries in west africa. cdc's director dr. tom friedan made the point again and again, the risk here is only zero when the wrought yououtbreak in the countries has been contained. >> we'll check in with you after the briefing. a new ceo coming to jcpenney. the stock reacting favorably to the news after last week's sell-off. the new ceo from home depot and target taking rchleins in 2015. courtney reagan with what this means for the company in the middle of a turnzblarn in time for the holiday season. jcpenney has a new ceo designee. marvin ellison, the evp of stores for home depot, joining

jcpenney november 1st as president and ceo designee. he'll join the board of directors, that's the second new board member nay week jcpenney announced. ellison won't take over as ceo until august 1st, 2015, however. and on august 1st, 2015 current ceo michael ullman will become executive chairman. less than a week ago i spoke to mike ullman after the analyst meeting in new york city and i asked him how long he initially intended to stay at jcpenney. and what this succession plans currently were. he told me he's always been prepared to stay as long as necessary. he had a good poker face. he gave no indication that a successor would be imminently named. why jcpenney didn't announce this when wall street and media gathered in new york city within the last week, the company execs, the company would have loved to discuss the role but the timing didn't work and they

weren't able to. as mr. ellison hymn, i understand he was a top contender to succeed for home depot. ellison has been at home depot 12 years, target 15 years before that. a man who is a life-long retailer at two publicly traded companies but never run either of them. the time willing allow him a year to learn the ins and outs of the company before officially taking over as ceo. sara? >> a lot of movement as retailers in terms of executives. send it over do dom chu for a quick market flash. >> lithium motors, crushed after issuing third quarter profit warning. the company blamed higher costs. in addition, a recovering auto sales market for new cars led to in crease in supply of used cars leading to decline in their prices. that stock you can see down 15% on the session so far.

simon, back over to you. >> coming up on the program, peter teal, founded paypal, the first outside investor in facebook. also investor in air b&b, lyft, with us right next on "squawk on the street." (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading.

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tech stocks are mixed this morning after last week's widespread carnage. momentum names, facebook, twitter, in positive territory, while others are in the red. gopro among the big tech losers dropping 17% in the past week. the nasdaq lost 4.5% last week. the first sign that the high flying valuations momentum names have reached their peak? special guest here at post nine, venture capitalist, paypal co-founder and former ceo, peter thiel. currently sits on facebook's board and author of the new book "zero to one." good morning. >> good morning. >> you said things would get tough when qe ended a month ago and the volatility's spiking. >> well, it's -- it's -- we've been in this world where people have been printing money at the fed for six years and so it's a strange question what happens when it henends.

>> what do you think of tech valuations? >> qe affected all valuations. i think it affects -- i think the thing that's most distorted is the bond market and fixed income and less on the equity side. but we certainly are back in a government bubble of massive size. >> as you look through the stock market, you're looking for earnings, 1020 years down the line, what you detail in the book, companies that endure. when you look at gopro, does that endure? that is worth what it's trading at the the moment? >> i think investors, tech investors, always overrate growth and underrate durability. most of the value of these companies, right, 75%, 80% of the companies exists a decade or more in the future. and so, you can measure growth, you can't measure durability. i think question about durability is a qualitative but important question. >> do you buy growth? >> i don't have -- i would not have a good feel for than it's a consumer product and these things can often one-hit type

things. >> what about alibaba? going into alibaba you were concerned that everybody was saying it's underpriced, it's underpriced now it's bounced 25%. what do you think of that stock? >> i think alibaba was a good investment if you get it at the ipo but it's a bet on chinese politics. the internet in china is fundamentally a political entity so you're betting on jack ma staying in the good graces of the communist party. >> you used the word "bubble" the bond market? >> yes. >> do you not see it silicon valley when you see start-ups, public companies. >> not particularly. the bubbles are psycho social phenomena. unlike the '90s tech bubble, the public's not involved. 30, 40 ipos a year. so, there's a boon going on in silicon vally. the public's not involved. >> talk about a bubble in the

bond market, you are talking about the incredibly low rates of borrowing going on amongst all corporates? >> i would say low real interest rates. we have 0% rates, 2% inflation. real rates minus 2%. that's what's really distorted. >> and to the extent that that capital is being deployed by companies we're discussing, is it your belief they're doing a good job in terms of allocation? distorts all things including tech sector. the tech sector is far removed from bond mz corporate bonds, stocks that pay high dividends, housing's probably in something of a bubble again. but tech stocks, i think, are quite different. somewhat overvalued but not -- that's not the core of the insanity. >> we saw a sharp sell-off in chip stocks last week. some indications that there's a sluggishness going on, businesses aren't spending as much anymore, they're not producing at the boom rates they whether in the last few years. do you sense a slowdown coming

in technology? >> you don't see it on the consumer internet businesses that i'm most involved in, but i think -- it's five years into recovery. so that's somewhat long and even if it doesn't feel like a booming recovery. >> one of the things you talk about in the book, the paramour, a few stocks that will massively outperform everything else and that the trick is to concentrate on those that will have ex exponential growth. what do you see promising that in the future? >> as a starting point, you have to be aware of, a radically different range of outcomes. so when people val ewing facebook at $10 billion, $15 billion in '07, '09 and people said it was crazily overvalued, going from $10 billion to $100 billion is as hard going from $10 million to $100 million starting a company. there's potential for companies to keep growing in extraordinary

ways. you know, on the private side, the one that i think fits this closely, something like air b&b, valued at 10 billion if i had to bet on one the next 100 billion company, it's air b&b in the consumer space. >> why? >> it's just a giant market. it keeps growing very fast. investors are always biased to invest in things they themselves understand. venture capitalists invest in u bech ber. air b&b's undervalued. >> they're both running into regulatory trouble, as they discorrupt industries. industries are fighting back. >> yeah, i think the regulatory challenges will probably not be fatal in either case. >> management team plays a role here, too. i know brian cheski a bit. or does it not matter that much?

>> matters some. the idea matters more. twitter is a fantastic company, though challenges on all sorts of levels in its management historically. a lot of smoking pot -- >> we may come back to that, peter. stick around. we'll have much more with peter thiel ahead on the show. >> we have to ask about the ebay/paypal split. first comments since that happened. also on carl icahn, facebook. also coming up, chrysler is back. the combined fiee fiat chrysler in the green. stock exchange debut, moving from the milan exchange. more on what that means for the company and the industry coming up. ad anbag right here. have a nice flight! traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company

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your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. centurylink your link to what's next. welcome back to "squawk on the street." check out share of tesla, continuing to fall here. rollout of the company's new model d version failed to live up to the hype on friday. shares down again, down by 5% on the session so far. back over to you guys. >> thank you. back with our special guest, venture capitalist peter thiel,

co-founder of paypal. welcome back. we should talk about the decision that you termed by john donahue at ebay to split paypal out. what do you make of that? >> it makes a lot of sense. paypal, ebay acquired paypal 2002, 75% of the payment volume on ebay. going down to 50% by '08. down to 25% today. the companies have diverged. it makes sense to spin it out again and for paypal to be able to focus 100% on building good payment system. >> it may be apple pay launches this within. we thought two, three weeks' time. it's getting to be a competitive environment. what happens to paypal within that? i mean, it is a product of the merger you did. does it need to merge, partner? >> i think mergers only make sense when there are real synergies when things -- it's not obvious what the synergy between paypal and any other business would be at this point.

i think it makes sense to be a standalone company for years to come. >> you were about to say something about apple pay and i interrupted you. >> we're headed towards more payment systems on mobile phones. . mobile internet starting to happen and we'll see more innovation around that. >> importantly, a lot of the payment systems, apple pay, rely on having a credit card within the stream and commission that somebody's paying. when you talk -- i've been reading about in east africa it pushes payments by just standard mobile phones, not even smartphones between people, will the competitive environment make the payment systems redundant moving forward, do you think? >> there are all these ways to create a seamless payment system relative to the ones we have today. it's hard to get consumer options. all of these solutions can be an inch deep, a mile wide, make things better for everybody and those are very good but very hard to drive on the consumer adoption level. >> what is the future four

companies like amex, visa, given the changing technology? they're partnering with apples and googles on the mobile wallets. what happens to them? >> i think they keep growing. if they haven't been disrupted by now, for the last 20 years, you know, it's just more credit, fundamentally drive by the credit card system and people use more credit cards worldwide. it's still in a growth trajectory, i argue. >> i don't know if you credit kacarl icahn at ebay in creatin the stock. what about stock buy backs? >> this is always the perspective that these companies shouldn't invest in technology, they should be investing in their own share price. >> the point he makes is that it's trading at eight times forward earnings if you strip out the cash. >> that assumes that the iphone will be able to maintain it's monopoly-like profit margins for

decades to come and there's a sense this is unstable. if the iphone stays as profitable, apple's cheap. >> you don't think he's like captain kirk? >> i don't like "star trek references but other than that i'd agree. >> during fight between icahn and ebay and andreessen, but that seems to have resumed, icahn focused on andreessen's actions as a board member but raises the question whether venture capitalists on public company boards are conflicted. i explored that off the record with both. there does seem to be potential for conflict, though it may be worth taking because you guys know a lot about technology. when you're on one of these boards of a public company, as you ron facebook and thinking about another deal or something else you may have invested in, is there a conflict? >> there is. you recuse yourself from the conflict. >> can you recuse yourself

effectively? can you take yourself completely out of it it? you understand context. >> i was an investor in oculus, i had an informal conversation with zuckerberg about it, which united stat was helpful but the decision was driven by the board and andreessen and i were not involved in the board discussions. >> you're only on one big public company board, facebook? >> yes. >> you feel comfortable on that board. would you go on other public company boards as well? >> i'm focused on private companies than public companies. i don't think the conflict issue is the one that would be the concern. >> on a private company board you're on, palanteer, fascinating company. somewhat under the radar but growing quickly. is a public offering expected? >> he wwe think it's going to b while. it's better for companies to stay private you can keep reinvesting in growth, work on the long-term growth strategy.

as soon as you go public, people have to answer to wall street to you guys on the show, they have to deal with quarterly earnings cycle and that's often a much tougher environment to be in. >> is it beneficial to bcs for companies not to go public and have round after round perhaps before public investors to get involved? >> it goes to different ways. a lot of bcs would like to show they've done well and you can only definitively prove once a company goes public, people second guess the private valuations. but i think it's best for the companies often to stay private longer than you think. >> peter thiel, stick with us. we'll talk about twitter apple and look at fiat chrysler, the combined company debuting monday morning at nyse, all part of a five-year growth plan, a huge international push. all that when we return.

fiat chrysler now open for trading at new york stock exchange. phil lebeau is down on the floor today. what can you tell us about trading act so far? >> a nice pop at the top, high as $9.39 a share. but it has now pulled back and it's just under $9 a share. i checked at the board, what 8.99 what it's trading at. most people expecting that they -- they weren't expecting a pop, this is not an ipo, it's not a capital raising event. when you take a look at what fiat chrysler trading on the new york stock exchange means, keep

in mind, first, again, it is nightc nightc not a capital raising event. it will be traded in italy. for sergio marchionne, the significance of this, this lays the groundwork with chrysler being back on the nyse for raising capital in the future, at this point he's not saying that they plan to raise capital, but it's much easier to do it. but from this position, when you have a stock traded here at nyse, it would be if they were traded over in some of the other exchanges where they used to be traded over in europe. don't forget, sergio marchionne, the ceo of fiat chrysler, will be joining us first on cnbc. you do not want miss this at "street signs" 2:40 a lot to talk about, including where he was yesterday in california for the 60th birthday of ferrari, and more than a few owners of ferrari interested to see what happens with sergio running that division. back to you. >> i'll pick it up. thank you, phil lebeau, on fiat chrysler. let's bring back in our special

guest this morning here at post nine, paypal co-founder, peter thiel. let's have some fun, if we may, about the comments that you made when last on cnbc, over a month ago, about twitter. let's take a listen. >> twitter's hard to val wait. it's -- they have a lot of potential, it's a horribly mismanaged company. the people, you know, probably a lot of pot smoking going on there. >> did you get much pushback from the team? >> very good humor, he tweeted he didn't have time to respond because he was eating a large bag of dorito chips. >> you were right? >> i don't think the management team. maybe the company generally. >> look, the positive point that i think got lost in that exchange is that twitter's a great company and sometimes when you have great monopoly businesses they don't have to be managed perfectly. they still keep growing and so

people -- you need to manage a company phenomenally well opening a restaurant in manhattan, that's where you can't make any mistakes, everything has to be done perfectly. if you have an idea that's really good, you can be sloppier on other things. >> because capitalism and free markets and completely different things? capitalism, competition. >> as a entrepreneur founder you want monopoly, you don't want to open a restaurant. >> i want to ask you about cybersecurity. on friday jamie dimon of jpmorgan said they were going to double spending to half a billion a year in the wake of the cyberattack there. you, as david mentioned, your software company, you don't shy way from the fact that some connect that consideration with having found bin laden. you're very out there. are we takeling -- >> it's -- it's reported that we did that. >> but you don't shy away from that. you mention that in the book. you're quite proud of that in the report. are we approaching cybersecurity in the correct way? do we need to have it at a

different dimension. >> it's an ongoing problem. it's obviously so much commerce on the internet, we have no good intuition how poor the security on a lot of this data is. we imagine that it's in the computer, it's store itted, no one else has access to it and that's par from the reality. >> there are people that do this far better, arguably, than silicon valley, the defense companies. do you see the defense companies mingling -- >> they're not software companies. so -- >> they could protect systems to a greater extent? >> i think it's a software challenge, it's not -- it's not -- it's not something you want a quasi government contractor to do. >> on a related note to security, bitcoin, you've been supported before. now that the price slumped are you still buying? >> i've always had mixed views on bitcoin. it's worked on the level of the

currency, where it's speculation on the level of the currency but it's not worked on the level of payment system. you need to get the payment system to work, not just for legal payments but -- >> have you given up on it for this idea of future payment alternative currency technology? >> i'd like to see the payment part work better. so people speculating on it as a currency, payment system has not yet worked. paypal was the opposite. a payment system we didn't create a new currency. bitcoin's created a new currency but you can't use it to make payments. >> what about you, peter? obviously you continue as a venture capitalist. no longer hedge fund manager, correct? >> still doing some of both but focus on venture capital these days. >> right. hedge fund thing didn't go as well as you hoped? >> well it -- we had -- we got a lot of things right and then we also had some challenges in '09-'10, yes. >> i'm interested, peter why, when -- why you've really tried to push this in book as hard as you vp i see you in a lot of

media outlets, a lot of interviews. somebody from the valley, you know, repeated in the book, someone from the valley suggested your friendship with elon musk is a great rivalry and you're quite envious of the public perception he enjoys and you would quite like to be up there as well. is that fair comment? >> i would not want to try to compete with elan. he's in a class of his own. i think that -- i think that we're investors in spacex, and i -- we missed out on tesla. but we're the largest outside investors in spacex and hope he gets to mars as soon as possible. >> are you going to be investing in the 2016 election? do you have a person? are you bankrolling rand paul? >> too early to say. i'm focused mostly on technology. politics is endlessly frustrating. polit technology somebody can make a difference. >> you say really good businesses uncover secrets in life and the secret for air b&b,

loads of supply of accommodation nobody was able to tap into. is there a secret that you've learned about society that can give you an exponential new business. >> many insights and i share them in this book. >> nutrition is one of them. >> well, all sorts of verticals under explored. things that people don't study in universities, interesting ones to look at. i think -- i think in general, it's never thematic, it's always something very specific, very focused. as soon as it's a theme, that's something people understand. too nuch focus on education software, cloud computing big data, anytime you have a buzzword, that's something to be skeptical of. things that work are things that don't fit into any preconceived categories. >> can you give us a nugget, just one nugget? >> no, that's always what people do. they always give buzzwords and the buzzwords are always overhyped. so it's harder than than you

have to actually work at it. you have to figure out what it's going to be. >> a good read, mr. thiel, thank you. good luck with the book "zero to one" available now. >> peter, not doing much for the technology focused nasdaq. down more than 1%. stocks extending their slides. nasdaq getting hit the hardest, at the lowest level now since june. the nasdaq actually down for the 12th time in 17 sessions. we'll keep an eye on that. it's near the low of the session right now. >> can i point out that we dropped below the 200-day moving average on the s&p 500 and we may have a tricky session. >> yeah, 1905 was the key level. watching shares of jcpenney, lower after a downgrade from ubs and sharply higher on news that the company has picked its next ceo. now the stock coming back down to earth here a bit. up 4%. just take a look at earnings on deck this week. a major theme, all of the big financials, jpmorgan, citigroup,

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new concerns this morning about the spread of the deadly ebola virus. the center for disease control confirming the health care worker who treated duncan in dallas has tested positive for the deadly disease. it's a first known case of ebola transmitted in the united states and the cdc is blaming a breach of protocol. joining us on the phone, former cdc direct somewhere former u.s. surgeon general, dr. david satcher. thanks for joining us. >> good morning, sara. great to be with you. >> good to have you here, especially to shed a little bit of light of what's go on in dallas and with the cdc. we've heard about a number of missteps, a breach in protocol. is the united states not taking this seriously enough?

>> well i doesn't think that's the implication at all. i think the protocol for dealing with eight patient with ebola is a very tight protocol and throughout the world we've seen many cases in which health care workers with the appropriate attire and surrounded and wearing masks and gloves and all of those things have had missteps and have become infected. so, i think it's just a matter of how where you can continue to be vigilant when dealing with something like ebola. and it's not clear what protocol breach occurred with this nurse. i think what the cdc is probably saying is that, given the protocol being followed completely, we haven't had examples of people being infected. it's a matter of deciding what aspect of the protocol's breached. >> what do you think, based on what we know so far? do you think it might have

something to do with the protective gear and how the health care workers take it off, perhaps the fact that duncan was having kidney dialysis and respiratory which can create the risk of infection spreading? >> i think all of these possibilities are real and have been discussed, certainly the changing of the gear, the taking off of the protective garments is a point of missteps, and that has occurred before. but i think what's new, as you implied, is the issue of dialysis and intubation and artificial respiration. i think those things are new. when you go into new territory like there is there are new risks that can occur. let me just say, i think when you do something over and over again, the chances of missteps always there. so it's really important to have backup, to make sure that people continually do the same thing.

>> dr. satcher, i mean there are a lot of people unhappy that the cdc attempted to blame this nurse for the mistake that they made and they would say, actually -- they would question whether all hospitals in this country can arguably deal with patients or whether you need specific areas where you've clearly gone through the protocols, a lot of nurses suggesting that these protocols have not been explained fully, their lives are at risk and actually the hospitals potentially have a massive legal liability here. how would you respond to that? >> i don't think it was the intent of the cdc to blame the nurse. my understanding what they were saying, certainly what i would say, this is a very difficult protocol. when i was director of the cdc, and we had the outbreak of ebola in zaire, we had 250 deaths and 30% of them were in health care workers. so it is highly prob able that one can become infected during

the process of treatment or changing of the garments, and that's why i've taken a position that to the extent possible we should probably send patients with ebola to the hospitals with special isolation units and develop some experience because, remember, over in africa, people are becoming infected in the process of patient care. >> we will see. very valuable to have your perspective, dr. david satcher, former surgeon general of the united states and former director of the cdc. >> coming up on the program, billionaire investor mark cuban with us next on how to jump start the u.s. economy. he says don't focus on the jobs or tacks. fix the student debt crisis. mark cuban with us next. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets.

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billionaire entrepreneur mark cuban saying the key to fixing the u.s. economy is fixing the student loan problem. this in an "inc" magazine on-line video. mark joining us on the phone to explain his comments. mark, we're curious, fixing the economy means fixing student loans. explain? >> it's really simple, i mean there's $1.2 trillion in student debt, so you figure half of that is misspent.

put another $600 billion into the economy, and i think you take a huge step forward and then when you consider a lot of that is from younger adults who are looking to enter the work place and start their lives, they're not renting apartment, not buying cars, not buying clothes, whatever it is that we may have bought 10, 15 years ago, that's not going into the economy anymore. it's a really simple equation. >> where are you looking for the solution to come from? congress? >> well, yes, unfortunately. i mean, the reality is, any time you create easy money you're going to create a bubble or inflation and that's what's happened with tuition. you know, anybody can borrow money for student loan and they can borrow it for any school, which means it's really easy for universities and for profits in particular to raise their tuition and that's exactly what they've done. so you've seen the increase in tuition outpace inflation significantly. >> so mark, why don't you let

students go bankrupt with that money? why don't we change the rules they can bankrupt themselves and everything is forgiven and move on. >> because that changes nothing, simon, because the universities still got paid. so, you know, it's no different than the housing bubble, than the stock market, you know. if i'm buying something and get to go bankrupt that might increase tuition inflation, not save it. >> peter, you used the bubble word. i want to bring up the fact that peter was on with us and talking about a bubble in the bond market. we're seeing the 30-year yield reaching the 3% level, the sell-off is accelerating. the nasdaq is down 1%. you know, you're looking at the broader macro economy right now, do you see cause for concern as wall street is seeing right now? >> well, i don't think that the market going down is necessarily a reflection of the economy. i think we've gotten to a point where we don't really understand what drives the markets anymore.

t there used to be a certain level of cause and effect we understood when it came to stock prices, bond prices. now every day it's a different guess. something happening in the ukraine or the european economy, is it china. you know, there used to be a correlation that we understood. now the correlation changed so quickly, we're not quite sure. i think the real problem is nobody really understands what drives our markets and because of that uncertainty when something happens, it happens fast. >> yeah. >> it starts to go up keeps going up, when they go down they keep on going down. >> yeah. that certainly seems to be the case, mark. it's david, back to student loans. i couldn't agree more. $1.2 trillion, $29,000 the average amount i think balance from when kids come out of school. i haven't heard you actually tell me anything that's going to propose what we can do about it. >> sure. >> other than just highlighting the problem. >> very easily, david. you put a limit on the amount of money any individual can borrow in a single year that's guaranteed by the government.

and so right now, let's say you just put a cap that starts today at $40,000 and every couple years that number goes lower, you will see the universities respond by cutting costs and reflecting that in their tuition. they won't have a choice. right now they spend so much money on administration, so much money on an arm's race who has the best business centers, you know, they keep on building buildings. why -- what's the difference between a sociology building and a business building and a psychology building. it's wasted match- ed money andu put a lid on it by capping student loans it's going to continue. >> your problem to a certain extent is what you believe is wasteful spending on the part of our university system, which is still by far the best in the world? >> yeah, but it's money. when you have more administrators making $200,000 an teachers, there's something wrong. when you have a significant percentage of classes being taught by student teachers or

teaching assistance and making 1500, $2500 a semester there's something wrong with the equation. it's easy money and easy money goes to a college administrator's head as much as anybody's. a group of rich people and told them the worst thing they could do is donate money to build buildings because it's like a printing press for the newspaper industry, keeps on sucking money and lead to bad things. >> don't you risk reducing the quality of opportunity in this country if you do that? because -- >> absolutely not. absolutely not. there's schools in texas that are $5,000 a semester in tuition and there's schools that are $30,000, both public universities, how does one run business to do it one way at one cost and the other another way. i sat in administrator meetings for the university of north texas. it's crazy the amount of administration that's involved to run a school. i mean, it's so much overhead

it's ridiculous. >> do you actually see a probability of this happening, mark? in the mid term years, heading into an election, 2016, where is the impetus going to come from? >> talking to a lot of politicians about it. i don't know if any of them have the wherewithal to stand up and say it. hopefully. you're right. there's a downside to my position is that i'm not taking the initiative to make something happen with it, but hopefully at some point we will be able to get there. >> quickly turning to basketball, real fast here, that incredible contract signed, tv contract a couple weeks ago, is that going to send player salaries spiraling out of control for you guys? >> no. it's not spiraling out of control but they'll go up. they earned it. we don't have a league without the players and they'll get at least 51% of that money and possibly more. as long as we keep on improving the game and keep on making them more and more popular, we all will benefit and heat a good thing for everybody. >> mark, thanks for joinings us

on the phone with your brand new op-ed fixing the economy through fixing the student loan problem. we will see you for "shark tank" tuesday here on cnbc. >> in the meantime "squawk alley" is next. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score,

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and good morning. it's 8:00 a.m. at apple headquarters in cupertino, california, 11:00 a.m. on wall street and "squawk alley" is live. good morning. carl quintanilla is off today. joining me for the hour we have john steinberg here, ceo of the daily mail north america and mr. andrew ross sorkin. we've lured him into manhattan. nice to have you here with the big interview coming up. we'll tell you more. john fortt joins us live from silicon valley this morning. great to see you. we begin here with nobel prize winner in economics, joining us from france. professor, thank you so much for being here. congratulations and we understand you just got off the phone with the french president? what did he have to say? >> thank you very much. the french president just called, yes. >> i'm sure he was