garnered about 5.3 million viewers. goes to show you "the walking dead" lives on. the chose has already been up for -- the last month. >> all right. guys, we've been watching what's been happening with the markets today, and obviously, after the big declines yesterday that put some of these indices at their lowest levels in months and months, we've been watching to see what happens this morning. you are seeing some green arrows. in fact, the dow futures are up about 61 points above fair value. the s&p futures up just over 8.5, and the nasdaq futures up by about 27 points. what's also interesting, if you take a look at what's been happening with the ten-year note, this is a huge one we've been watching. at some points, you saw the ten-year yield dipping below 2.2%, 2.199, we've seen it at several points throughout the morning. >> i'm glad we got the banks out of the way. >> well, the financials out of the way and the financials came through without many problems along the way. that's something to be watching

throughout. tom lee said himself, the financials, the idea that we're out with some of those, that sounds like great news to him. it's something they're going to be covering in "squawk on the street" right now. expired,

by which the underwriters can start saying what they think. and guess what eric schmidt thinks is the company's biggest rival when it comes to search. the answer may surprise you. got his attention. a big day for bank earnings. jpmorgan chase posting a third quarter earnings miss. revenues, though, did exceed estimates, helped by fixed income, currency, and commodity training. citi reported better than expected quarterly results while wells fargo came in right in line with what was expected for its third quarter earnings. the bank earnings coming one day after stocks posted the worst three-day losing streak we've seen since 2011. the s&p 500 down nearly 1.7%, closing below its 200-day moving average for the first time in

almost two years. i said 1.3, it was 1.7. and adding that to last week, we are looking at significant losses. are these bank earnings going to do anything, jim, to stem what seems to be this sentiment change. i can give you a lot of reasons why we shouldn't be going down that much. all these worries about global growth, but are the earnings going to do anything to change market sentiment? >> i think j&j could. i think one of the things you mentioned, a pop, was this interest rate move, which suddenly, you know, you get kind of a rate that is so low, that you're going to get more people going back to those accidental high-year-olds, let's call them that, or bond market equivalents, that can deliver numbers. j&j is obviously not a cheap stock, but when it delivers a perfect number and you know, raises guidance and you've got a lot of medical issues going on all over the world, that anybody's got anything that can solve a health care problem, so to speak, good. now, citi is the best. >> citi is the best. >> michael corbett is really

good. >> this is a major change. >> is that going to be a conclusion or is that sort of a statement in time that could change in the future? >> no, no. initially, look, i didn't -- i didn't understand the strategy initially. because i had felt what was great about citi was its far-flung nature. what he is saying is, what's great about citi is profitability. and c-car, returning capital. every single line item that i read in citi was better than i expected. now, in this environment, wells fargo, obviously, was the most important bank, because i say that because wells fargo has got the pulse of america. and it is reflective, if you will, of the domestic economy of a certain extent. we often talk about wells. it's simpler to understand, net interest margin becomes so much more important, perhaps, because it does have capital markets activity and things of that nature, but they aren't -- we're not focused so much on fixed income commodities as we are -- >> it has moving parts, but you've got the rates going down again and that's not so good -- >> look, i'm going to say something positive about wells. this quarterly growth is just

incredible. it's endless, it's consistent, you understand why warren buffett likes it. so i guess i'm presenting a world here where these stocks can't take the market down. how about that? it has to be other things? it has to be the transports taking the market down or it has to be the industrials, where we get a lot of negative notes. the autos. it's german weakness, it's chinese auto figures, it's the tend tenderhooks about ebola. >> every day it seems like there's something that scares the market. yesterday, that plane at logan. >> when you get off the desk with guys who are really serious about disease, they are telling you, look, this is just a frightening thing. we know, but let me tell you what kills people. >> but it can freeze things. >> it can freeze things. and we know sars -- >> -- decision making, and it does seem to have been having an impact on the market. >> every time we talk about it, we're being overly dramatic. >> no, i don't think we are. >> okay. >> i don't think we are, and i

think you have to include it in any dialogue about what's been going on lately in the market. >> right, because people don't go out. >> you can't point to any one thing in this market, at all. and i think we try to define it here, we will spend most of the days trying to give you reasons why the market is up or down. but the fact is, it seems to me as much sentiment as anything else. >> and risk coming off the and the usual things we talk about instead of, sure, you have bad numbers out of germany. yeah, europe is in not a great place. things don't look so great in terms of gdp expectations, but the trade number was pretty good. >> right, the september trade number. everyone overlooked that because of a dallas nurse. >> right. >> but the dallas -- we don't know what happened. so suddenly, you have the cdc looking in disarray. >> so you're back to ebola. here, i'm trying to get us somewhere else and you're back to ebola. >> because it has a sars feel. and the airlines were down gigantically. now, there was 18% of the traffic, thank you, wells fargo,

was international. this is very small. but i just feel like -- it's the newspapers! >> you can't ignore it! and the world that we live in. you know every single thing that's happening in every moment because of things like twitter. but also, something that we know, which is oil, it's going to 80, isn't it? isn't that good for the airlines or am i missing something? isn't that good for consumer spending or am i missing something? >> if it were not for ebola scares, you would be buying the airlines hand over fist. >> okay. >> but you can't because of ebola. you would be going on the dining out stocks. you would be buying darden, not selling darden. there's a downgrade today. it was just fatuous. that's what you would be buying. retail, you should be buying. but what are the stories in retail you read? tepid, tepid, tepid. and one of the things, i think, david, and i've worked with you for a long time, when you talk with people about what's going on in the market, here's what they say. something's lurking, something's lurking. that doesn't do anybody any

good. but is it kabul, is it baghdad? will we have to send in the marines to baghdad? it's got a feel about it, this market, that there's another shoe, because every time we rally -- the close yesterday, reminded me of 2010, 2011. vix spikes, doesn't mean a thing, vix is going much higher. all of a sudden, what does that guy that i don't know? in all the hedge fund trades, they're falling apart. or the united rentals. >> or hertz or any of the oil or energy names or event names. he did this yesterday. the hedge fund pain is significant. >> we're talking, we're down as of friday, down 6, 7% for the month. for the month. and add that to yesterday, some of them may be down 7, 8, 9%. you're losing your year for sure. >> years are being lost. >> that said, there may be some real value -- >> i did a piece last night on "mad money." it was a checklist of ten things you get. and people, twitter, jim cramer

said, that's an impossible list. no, there are things, there are values being created. we've got stocks. i don't want people to buy them, but there's a company called emerge, which is a fracking sand company. it was at 75 months ago, it's at 70 now. in the interim, went to 140. yield 6%. there's no sign right now, i'm going to have howard ham on tonight, the premiere oil guy in this country, who is going to tell you not to panic. that we do not stop drilling at 80. but this morning, chevron canceled a $12 billion project, a deepwater project in indonesia. shocker. i'm in shock. that was a project that was being done because of china demand. canceled $12 billion project. >> but is oil really a function of reduced demand or is it simply a function of opec's sort of, keeping the tabs open, saudi arabia saying we're going to take it down and down and down, and we're not going to cut back on production? i can see it both ways. >> right. >> but it may not be necessarily

a reflection that things are really slowing dramatically. >> saudis made a big deal with east asia to sell things forward. the oil guys want us to stop being self-sufficient. they know if they can get it to 75, they break us. just putting that out. >> all right. you know what, let's come back and go through the banks real quickly before we hit the break here, so we can just sort of square that away. you mentioned wells. fine? >> yeah, fine. people panic and then they come back -- >> we all know that. the refinancing worm has run its course. >> and i think that's untrue. because i'm frantically trying to refinance. >> and looking at a -- >> 3.5 is going to go to 3. okay, cramer, you're rich, you can get -- no, no. you can get a refinance now through 4 1/2 to 3 1/2. and i think that that's possible. closing costs, obviously, if you include, goes to -- >> citi, by the way, getting out of 11 countries in its consumer

bank. >> citi's doing everything that you want. the return of the capital. let's talk about jpmorgan. that's the one that everybody -- i love the fact that everybody's an expert on jpmorgan. it is impossible to be an expert -- >> well -- >> david, it's a hard read, jpmorgan, many moving parts, but making some money in volatility. september good. >> and after the crisis, in particular the lead up to it, i always caution people not to rely on press releases, regardless. that's what the company wants you to see. these are finance companies, financial services companies. they are very difficult to understand. if you had read every press release from merrill lynch from 2005 to 2007, you would have had no idea the risk they were taking. nor would you have understood it at citi or lehman. >> credit costs really good. look, we are seeing the peak legal number, because west left the justice department. and when you get a peak legal number, you're going to begin to see, it's not just the fees they

pay to the lawyers, all the people on the other side who talk to the lawyers. i know it's absurd that lawyers could actually impact earnings -- >> fine, so they can take all that money and put it into cybersecurity. >> they have to. >> right? >> it's a great point. cyberarc. palo alto networks, very inplaited stocks. i like them, but we saw what happened with gopro when someone, you know -- i think gopro peaked when i was in hawaii last week, when i saw the goat riding the surfboard. can you top this game of gopro, it's too much for me. what are they going to put on a gopro next? a giraffe? a giraffe rides a surfboard. >> you know it doesn't align with my interests. >> it's done, it's enough. >> well, coming up, it's not nearly enough for us. google chairman eric schmidt spoke about what is the company's biggest search competitor. >> who?

who? >> and how much does it cost tesla to produce the sedan? we'll have a tesla teardown coming up. we are one day removed from a 1.7 decline on the s&p following last week's significant dleclins on the broader averages. we've got more "squawk on the street" live from post nine after this. what are you doing? the dishes are clean. i just gotta scrape the rest of the food off them. ew. dish issues? cascade platinum powers through your toughest messes

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google chairman eric schmidt

with some eye-opening comments about his company's competition. at an event yesterday in berlin, schmidt said, quote, many people think our main competitor as bing or yahoo! but really our biggest surf competitor is amazon. people don't think as amazon as search, but if you're looking for something to buy, you are more often than not looking for it on amazon. >> that's totally true. >> it is totally true. a couple of things, first, they're fighting monopoly charges in europe, so you want to do anything you can to create the sense that you have competition. but there is a theme among some investors that amazon has a lot of fertile ground to plow, if you will, when it comes to search. when it comes to organic and sponsored search on its site, that advertisers will pay for the key words, and it is a significant competitor, perhaps. right now it's about $500 million. we're not talking about a number of any significance for amazon now, but it could be. >> my charitable trust owns google, one of the reasons, i

had domino's pizza last night, a big upside surprise. they just advertised a win. the shift -- did you see the defenses all day? they all have the same characterization, don't worry about all the money going towards online. i mean, you have to. the budgets are shifting so quickly that amazon, i think is going to be a major player in that. because we all -- just think about your day. i'll look up -- you want something -- >> and you'll conceivably just go to amazon and search it. >> amazon search is fabulous. >> and that is -- perhaps will be a significant revenue source for that company. so schmidt may be correct in that. not forgetting, of course, he is fighting these monopoly and anti-trust charges. so, we'll see. i mean, on amazon as well, though, there's a lot of other things to keep in mind when it comes to that company. >> i was talking to a very good analyst who doesn't like amazon or downgraded it, and i was saying, okay, well, what happens

if "the new york times" writes about ebola every single day on the top of the right-hand corner, you'll want to shop more amazon, fedex and u.p.s. go up. and he said, i hadn't thought about that. here's what i'm saying, if that's true, there'll be another case of some health care worker and people are going to freeze spending and stay at home and that is an insane thing to say on air. that that one health care worker could do that. but that's how the stocks reacting. so i have no choice. those who think i'm fear morninginmorning i ing, i'm reading "the times" and "the journal." they're thinking twice wildfire they put those headlines out. >> no doubt. on this whole idea of search, by the way, we can end on alibaba, which we're going to talk about later, because all the recommendations for the stock are starting to come out. that is key to their business

model. where they have millions of merchants, the way you get recognized is by advertising on the alibaba platform, hence search. somewhat equivalent to what amazon at least in some ways might be able to do. >> let's say you want, you own a commercial enterprise and you want stuff in manufacturing. if you're in new york, it costs a fortune to have things manufactured. so you go on alibaba and figure out where you can get tables, where you can get chairs, where you can get things made. bangladesh this morning, you have slave slalabor free. it tells you what slave labor -- because i don't care how much, you don't want to be in violation of the 13th amendment if you want chairs being built. but it's a natural intermediary that gets rid of the wholesale. i mean, my dad was a jobber for 50 years, a wholesaler. and what this is about is disintermediating the jobber, and that cut is gone. people understand a business model, it's a wholesale -- >> and very different from

amazon, which holds its own inventory, enormous amounts of it from all those warehouses, where so much of their technological edge is on that side of things in terms of fulfillment. we've got a mad dash coming up, you ready? mad dash as we count down to the opening bell. taking another look, getting so ahead of myself, at futures, as my face disappears. and you see the futures board. more "squawk on the street" from the nyc after this. guys! you're not gonna believe this! >>watch this. sam always gives you the good news in person, then the bad news on email. good news-fedex has flat rate shipping. it's called fedex one rate ®. and it's affordable. >>sounds great. (cell phone typing) (typing continues) (woosh) (cell phones buzz, chirp) >>and we have to work the weekend... great. more good news-it's friday! woo! ship a pak via fedex express saver® for as low as $7.50. ♪ who's going to do it? who's going to make it happen? discover a new energy source.

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that new music is stressing me out a little bit. >> yeah, i don't know what that is. more disease-oriented music. shark tank. and a profit. profits off of "shark tank." >> it's that profit. >> let's move on to skyworks in "the mad dash." >> yesterday we had microsoft preannounce. skyworks is pretty much in every major cell phone company, including apple. david aldridge, who was a remarkable manager, one of the best ceos in tech, comes out today and preannounces a better than expected quarter. so this is it. these stocks were all oversold. watch this. if this stock gives up the game, we're going down big today. >> really? >> yeah, because this is as good a story as you're going to get right now in this market place. i'm just saying, this is the litmus test of this rally. this is a great preannouncement, saying that basically microchip doesn't -- >> don't take -- that was one of the blow-up of earnings season

early here. hurt the chips and brought the nasdaq down sharply on friday. >> as it should have, because it was so hideous. this is as hideous as microsoft was. this is a thing of beauty. >> let's move on to retail. >> now, i don't like this kind of downgrade, but i respect the firm. sun trust, home depot, and lowe's. high valuation, cutting 2015 numbers. looking at the suppliers into these two stores, and saying the stocks have gotten ahead of themselves. why does this matter? because retail, gasoline going down, non-ebola related going out. these two have been the strongest, lowe's and home depot. and frankly, this stock has been amazing. if it gives up the gain from that great quarter, this is what people are looking at. people are saying, cramer, you're too negative. i've been negative ever since alibaba. that was like the liberty bell. >> could it really be that easy? let's do the biggest ipo of all time and send it up 35%.

that'll be a market top. come on, it can't be that easy. >> well, k-i-s-s, keep it simple, s. yes, it was! remember in march, we had the dancing food and that was a top in ipos. things happen. bells go off, okay? now, can we recover? if you can't -- if there was an ebola vaccine. if russia were to say, we're done with sanctions and i hope you are too. if china picks up off the export number, we have scenarios that can be better. if isil somehow will be stopped -- >> iran's president says they're going to reach a deal on the nukes with us. that, by the way, will send oil down even further. >> venezuela needs it and nigeria, if ebola goes to nigeria, so far have been very effective. that's 3 million barrels. there's a lot of moving parts. and they're not all negative. but right now, the panic,

because of, david, something you've taught me, the 200-day moving average -- actually, you didn't teach me that. you've been foxed on the fundamentals. you're a dinosaur. i'm a trier ceritops. what are you thinking? >> that we'll go up this morning. but you can actually confirm that by staying tuned. we've got the opening bell just a few minutes away.

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you're watching cnbc, "squawk on the street." we're live from the financial capital of the world. the opening bell is going to ring in less than a minute. look, hgtv is doing the honors. we'll get to that in a minute. you know, it's funny watching scripps is going to be ready. hgtv is celebrating 20 years here. a lot of concern about media companies -- >> it's interesting -- >> we've got time warner having its big meeting today, showing how it's going to create value far beyond what fox is going to offer. >> that will be another skyworks, a very important tell. meanwhile, "walking dead,"

incredible how many people watch it. that's a major misdirection play. >> well, scripted show, some would say in the case of time warner -- you know, "big bang theory" is not getting it done. >> no, but we're seeing all transports rallying. >> yeah. >> no new ebola news is moving those stocks up. i know that's crazy. that's what's moving. no new ebola news. >> all right. you're watching the opening bells at -- right here at the nyc. you just heard it and you can see back at hq, our realtime exchange is almost all green, almost all green here at the big board, by the way, that was scripps network interactive, celebrating hgtv's 20th anniversary. over at the nasdaq, teraform power. we're off to what looks to be a pretty strong start here, if you are positive on the market, jim, what's going to be a tell as to whether we can sustain at least the momentum through this day. >> industrials. i want you to watch caterpillar, okay?

and boeing. boeing has been going down, because ebola fears to airlines. so you can watch american air and delta to tell you boeing, okay? caterpillar has been chinese fears, but copper was up -- >> will you stop saying the word "fear"? that's all you're doing, fear, fear, fear. >> chinese is right on the griddle here. you're right. that makes me a fearmongerer. >> you're not afraid? >> no, i'm not. >> you're fearless. >> well, i'm not fearless, that would make me stupid. but you see no new health care worker, stocks bounce, there was fear that something would happen overnight and it didn't. the futures were up, when you got up to adjust your lineup. >> the ek was down sharply. europe did not look -- still is not looking great. >> and j.p. morghab is an outlier here. a rather strong market given the fact that jpmorgan is not going

up here. we want to see the industrials rally and we want to see the utilities go down. but it's very hard to manage, when you have the interest rates where they are. i think that this market is reacting to the fact that if you have a 3% yield, suddenly i like it. can we see the chemical stocks stop collapsing, david? what is going on with that group? that's been a collapse. >> that's got to be a reflection of the slowdown in the global economy? >> but the stocks are so cheap. getting cheaper. doesn't matter. >> right, they're a main source -- right. are we not seeing a response to the fall in oil that you would typically expect? >> yes, we aren't -- >> and why is that? i mean, we've had a dramatic fall in oil prices. take a look at anadarko or any name. you pick a name. >> right. >> because i think that -- >> but why aren't we seeing the other side of it? >> i think people feel the consumer is weaker. i think there was an article today in "the times" about the consumer not spending the way that the jcpenney quarter wasn't -- >> have you seen the labor picture in the u.s.?

the last i likeooked, it wasn't that bad. >> i think we should talk darden for a succeecond. a new management comes in. >> a new board and a new management. >> has a great yield. i don't see any sign they'll cut the yield. the former ceo came on "mad money" years ago and said, if you want to know what drives us, it's the big tax cut from oil going down. that's a great stock to watch. because new management, new board, levered the oil, cheap -- a lot of the commodities coming down. let's watch darden. >> right. a few things we're also going to watch this morning. i want to come back to time warner, because they are having this meeting today. you can, of course, remember the short- lived battle there, where fox is trying to acquire the company. but what needs to be done at time warner today is to articulate why and what the growth strategy is and why that is going to supersede anything that they would have been able to get from fox. now, fox was not going to a

hundred bucks, but the idea is still, how do you get that stock price to triple digits within a reasonable time frame? let's call it a couple of years. and then they may sell off that number, because he wasn't ready to sell this summer. but two surms from now, perhaps he is. >> is he in a situation where he's got to be like -- listen. >> he's not now, but fast forward 18 months, if they haven't delivered, it's a different situation. people are willing to give him the benefit of the doubt, and that begins today with putting targets out there, explaining to, for example, why, you know, why the big bang theory reruns on tbs is their highest rate showed and whether that's a good strategy. >> remember what he said. >> whether it was worth paying all that money for the nba. what are you going to do with hbo? are you going to go to direct to consumer at some point. do you leave it as it is. a lot of questions. >> i've always lacked to les moonves to see why you should be

investing in cbs. because of the big buyback, whatever. there is a kind of feel that it's bewkes now that can save the group. so there's a lot of pressure on him. >> there may be. you mentioned cbs. of course, the stock is down -- >> no, i said cvs, which is at $80. >> no, you didn't. one of the greatest trades was cbs, and the guy said, cvs, and the stock went up a dollar. just sell it and bring it on home to me. it's a sam cook strategy. >> that's really funny. i wanted to mention some activism this morning. corvex, more than $7 billion under management, writes a letter to crown castle. you know this company a bit. >> geez, how much -- that's been an unbelievable stock? what, is he unhappy? >> a lot of times you do see the activists take part in names, not always, that are -- that have been fairly strong. we think think about, for example, pepsi and the arguments there, but it doesn't necessarily mean that there can't be more done to get things

moving. for its part, crown castle says, we're happy to hear from our shareholders. what did they actually hear? well, you know, the company's asking for -- or corvex, which owns about $1 billion of economic exposure and 12.6 million shares, paid dividend of at least 4 bucks a share by 2015, guide to 10% dividend per share growth, maintain leverage of at least 4.5 times, flex leverage up to 6 times net ebitda, and you know, do a number of other things that they want you to do at this point in terms of the capital structure of the company at crown castle. that stock was up. i missed it if we went through it just now. >> it's been such a great stock. i like them, i like american tower. these have been real winners. the losers, no one goes after the losers, david, they just go after the winners. >> by the way, there are a number of stocks, we don't talk about them as much. hertz, for example -- they are trading so far below where the activists came in, whether it's

carl icahn and hertz or barry rosenstein, or casa blanca and clifs. >> oh, my god, clifs -- clifs is -- well, you know, good luck to you there. they need an iron horse being pump std. there isn't a single guy blinking in the iron ore industry. they just keep pumping and pumping. the costs are so low. the market is taking back that last half hour of horrific sells. where what i'm saying is, what's going on in this market, people keep thinking that somebody else knows something. which is the kind of thing that does not lead to a bottom, necessarily. and i think that people who, frankly, are upset with this market, you're getting a nice chance, if you really don't like the market, to lighten up. i don't like to -- i think if you take a longer term view, you don't have to worry about this. because we're talking about 2, 3, 4% decline. those traders who are concerned,

here, here, sell now. >> right. >> in terms of the banks, which we started the show, of course, having heard earnings, quarterly earnings from citi and jpmorgan and wells fargo, three of the biggest banks in this company, citi is the biggest beneficiary. jpmorgan was down over 2% at the very open, although they have pared those losses considerably, now down less than 1%. bank of america appears to be benefiting from wells. >> it's a charitable trust name, but i still like to know. the net interest margins for citi -- >> even though wells is the biggest loser now on a percentage basis. >> citi, let's go over some of these lines. revenue, 28 billion plus 10% year over year. first time in the third quarter that the revenues were better than in the second quarter. that's a really remarkable statistic. that interest income was absolutely terrific. the holdings business, i'm not worried about holdings anymore, because they said that holdings was going to go to break-even in 15. they're already there, david. this is a beautiful quarter. 10.7% on the tier one and net

interest margin up 10 basis points. you doubted -- no, that was me. >> how about gorsky? >> i think gorsky's terrific. >> ceo of johnson and johnson, stock that's up about -- >> he's got unlimited firepower. >> stock's at par, 100 bucks. >> it was 108 two weeks ago. >> so was the world. >> 8% loss, that's not too bad. >> the declines have been so horrific in things other than coned and dominion, i mean, look, this has been a bear market within a bull market, and that is very uncomfortable for me. but do you see the split in the rails yesterday. union pacific, oil-related down. a lot of chatter. i didn't get to hear your latest on csx. >> yeah, the journal reported -- i think there may be more to it than simply canadian pacific

came and said, hey, what do you think, and csx said, see you later. there's still something to watch there. we'll see. consolidation amongst those two would make some sense -- >> but the railroad consolidation in this country -- >> the surface transportation board might look askance, but it's not like there's a lot of overlap. >> none at all. >> you would want to buy csx up to 36 if you do that. >> i believe mike ward is going to appear later on in the show today. the industry is so well run. >> i remember him from when he fought off the children's fund. >> first it sounded like -- i remember him calling and saying, listen, i'm not against children. they were like radiders, the children's fund was like the pirate capital >> we're doing it all for the children. >> yo-ho, yo-ho. >> it's all for the children. bob pisani is on the floor. >> my e-mail is chock-full of

comments about the technical damage done to the market. only 30% of stocks are above their 200-day moving average. but it's worth noting, two big bank ceos this morning emphasized the improving u.s. economy. did you see what john stump says? ceo of wells fargo. he said, we continue to see signs of a steadily improving economy. jamie dimon at j.pmorgan went ot of his way. mr. dimon said the u.s. economy is an exception, showing signs of steady improvement. two bank ceos making comments about the u.s. economy that were positive this morning. take a look at the earnings from the big banks. citi beat on earnings and revenues to the upside, jpmorgan was a miss. wells fargo, let's call it roughly in line with expectations to the downside. away watched wells, you heard this earlier from david. 60% of their revenues are community banking. biggest mortgage originator in the country. loan growth. i don't know what happened in

commercial. that was really a great number. 2.6% increase in commercial, consumer, kind of a slight disappointment, down 1.4%. mortgage banki ingbanking, we'r. but the originations, the amount of loans they made were up 2%. i think the problem is, the decline in rates means that mortgage revenues go down a little bit. and i think that was the problem. let's call it okay, not great quarter. the conference call is at 10:00. we're getting more on how the u.s. economy is doing at that time. elsewhere, we're getting oversold bounces. we talked about this all day yesterday. and everyone who was predicting it was proved wrong in the last hour. take a look at the airlines, for example. delta, united airlines, most of the major ones are up a little bit here in the first few minutes of trading. they dropped late in the day. we're also seeing some beaten up sectors bouncing back, semiconductors, for example. there's the excess, the xpi is up today. xop is exploration of production, which has been annihila annihilated. down about 30% in the last few

weeks. that's also bouncing up 2.3%. even germany is bouncing. it was down earlier on. they took down their growth outlook for 2014 and 2015. their investor confidence outlook number was weaker than expected. but, again, after the disappointment this month, germany is down about 7% so far in this month alone. it's to the upside, just fractionally. spain and france also to the upside. luxury is down, understandably, on the comments that we heard from burberry and its true, china is a concern. ukraine, russia is a big market for them. the one thing i would point out with burberry, guys. sales in china, you would have thought from the comments that sales were plummeting. sales in china were up in the high single digits for burberry. they made it sound like a disappointment because they had been doing double-digit growth for a number of years. but sales were still up in china in the high single digits. my point is that while this is a deceleration in growth, it is not a collapse in growth. everybody needs to bear that in

mind, considering how negative the acceptabilisentiment in sub now, the dow jones industrial average up 3%. >> we are really being stupid. i mean, everything that i see in this market is just pure emotion. there's just nothing but emotion. >> emotion will move markets, oftentimes. sentiment of psychology. >> it's a beegees. >> that's what's going on. >> you saw it at the bottom of the screen, the yield on 30-year u.s. government bonds fell below 3% for the first time, i think it was since may 2013. let's head to the bond pits and get more from rick santelli. >> you're right, may of 2013. and before we get to the charts, remember, the dax is hovering at the lowest prices in about a

year and that's growth fundamentals, pure and simple. and remember the equity markets the in the u.s. when they could ignore everything. well, now they can't ignore anything. it's because the market's ready to be pushed. it's at a point where it can fall. let's look and surf the curve. let's look at how far back these two-year note yields go before you find a lower one. this chart goes back to june of 2015. the fives, you have to go back to roughly december of last year. the tens, june of last year. and as david pointed out, if you want to look at those 30-year yields, under 30%, you have to go back to may of last year. what about the bund, it's easy, this is a 20-year chart. you'll not find a lower 84 to 85 basis point point level, because there isn't one. when it comes to foreign exchange, things have changed bit. yes, the dollar is still holding on to the bulk of its big-time gains, but things have changed recently. look at a chart, month-to-date

in the euro versus dollar, it's down a little bit, but you can see what i'm talking about. dollar/yen is down, so we want to pay attention to that. as far as data, we'll get it into as the week progresses, but right now, the only data the treasury market is concerned, weak fundamentals out of europe and which direction it couldn't markets are going. back to you, david. >> thank you very much, rick santelli. coming up, a conversation between cramer and a rock 'n' roll hall of famer. stick around. and later, luxury fashion designer and entrepreneur, tory burch, who is making her presence felt in wearable technology. that's going to be on squawk alley at 11:00 a.m. eastern. we are going to be right back. when change is in the air you see things in a whole new way.

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a very special interview on "mad money" last night. neil young talking about his ultrahigh quality digital music player as an extension of steve jobs' vision for the ipod. >> you have always tried the to develop what steve jobs tried to develop, which is the car that doesn't use gasoline. >> right. >> i would think these days if steve jobs had this, he would have recognized he defeated music in some ways. >> he would love this. and in his house, he had vinyl. he listened to vinyl in his house, in his living room, and he was a real music lover. and i talked to him about it, and he understood why we were doing this. and i talked to him about what they were doing and everything, and he said, neil, it's a consumer product. and that's one of many things that the iphone does. and you know, so he has a point there. and he made -- they made a lot of inroads into this. we're just perfecting it. this is a device that is dedicated to making music sound

great. >> explain that to me a little bit more. >> well, this is no longer the kind of -- it's hd tv come to music. it's the way that music used to be play, just like when it was on a stylus. >> so the sound quality is better. >> no, it's much better. it's almost as if you're listening to a long distance phone call versus talking to a person. i mean, it literally is that much different. they had to compress sound so much to be in your mp3 that they lost a lot of it. this will be in cars, i believe, in 2016. he was talking about dealing with harman. neil young is a great businessman, a great thinker, obviously, one of the great musicians alive. but this is his mission. pono, they're sold out. they're sold out for christmas. they'll send you a certificate, if you want to get one -- it really is an amazing device. i mean, i found myself listening to it, and just saying, i want it in my car, i kind of want it everywhere.

because those of us who are audi audiophi audiophiles, who love the idea of the old days, this is it and all the artists know it. >> a lot of the artists -- i mean, vinyl is actually up. now, it's off a low base -- >> i bituy it. >> because it sounds better. and this is the logical extension. i've got to tell you, it was a kick starter project. it raised $6 million. the third most popular. and the big -- like mo austin, who really understood records and music better than anyone, he is the guy, if you go to the videos -- that's the best video about understanding why this thing is for real. >> all right. up next, it's stop trading with jim. we'll have "squawk on the street" coming back, right after this. .. at optionsxpress by charles schwab. and we'll give you a one hundred fifty dollar amazon.com gift card when you open an account. if you're looking for a trade idea, start at the idea hub... where options and futures opportunities are organized by

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all right. it's time for stop trading. jim, 20 minutes ago, j&j was trading at over $100 a share. >> that's why i don't trust this market. he was talking about the medical device business, and also a price war in gilead, against gilead. that's why gilead's going down. i do not trust this market, because you sit there and you have a j&j trading at 109, now it's at 97, my charitable trust

owns it. it is not a bad quarter, there is a forecast raise. people will come back to it when the smoke clears. but the fact is, you don't want to hear a price war. >> and gilead is also down. savaldi being one of the biggest drugs for hep "c." >> you'll see biotech roll over because of gilead. the medical device companies will roll over because of j&j. the pharmaceutical companies. this is the kind of thing that makes me not trust the market. because we're not in a position where people want to buy or overlook anything bad. >> all right. i have been paying attention, so i know what's on "mad money" tonight. but tell everyone else. >> first, we have domino's pizza, delivering a big upside surprise. i was looking for something like 5. and then we're going to solve the oil dilemma. charif souki will be delivering

natural gas 2015. and harold hamm will tell you why the oil is not over. i'll do an off the chart situation about where oil is going to go. oil is at the fulcrum of this decline, because that had been where all the hedge funds were. i don't trust the market. it's a treacherous market. j&j is a classic example of total treachery. that's ridiculous, but it's down huge. >> great show tonight, which i want to watch very closely. let's get to simon hobbs, with a look at what's coming up. >> we're obviously losing some ground now. up 43 points on the dow. black rock's russ koeskteritch will be with us. their analysts will join us live. and we'll take a good look at the banks, how do you report them now.

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and potentially another big day for the markets. stocks bouncing back since the worst three-day decline since 2011. the dow now up just 24.

blackrock's global chief investment strategist will tell us where we can find safe havens. big banks reporting big numbers today. we'll get all the details on the quarterly results from jpmorgan, citi, and wells fargo. and just makes the tesla mo model-s tick? we get a look under the hood. first, let's take a look at where we are on the market. the dow lost 673 points over the last three sessions. we were up triple digits, we're falling back. it would be really cool on the s&p if the bulls could regain 1905, which is the 200-day moving average. let's bring in russ koesterich with blackrock. where do we go from here? >> i think in the near-term, we have more volatility. the market is responding the to a couple of things. they're responding to clear evidence of slower growth, and they're responding to the fact that we're starting to exit this period of extraordinary monetary policy, at least in the u.s. that is having the predictable effect of pushing volatility

back towards its long-term average. >> i mean, what people could really try to do with this is a context of where you think we're going to go. if people are sitting on the sidelines at home and thinking, at what point do i pull the trigger and buy? what would you say? are we going to go through a major re-rating, further, of energy, for example? >> well, energy, i think, is already re-rated. if you look at the energy sector, it's already down close to 20%. so while the broader market is only down 6, 7%, there are segments of it, energy, small-cap emerging markets, that are already clearly in correction territory. so i think the answer to your question, it depends on the time frame. >> well, what i'm asking you is, do you think we're at a bottom, on, say, energy? >> no. in the near-term, i think we're going to see more volatility. i think stocks can move lower. however, having said that, i don't believe this is the beginning of a bear market. i do believe there are segments of the market that have become oversold, and there are some bargains out there for long-term

investors, potentially include energy stocks. >> and another question, russ, i would ask is, what does this mean for the fed? we know that the federal reserve, this fed in particular, has been watching the markets carefully, and has also been watching what's happening with a global economy. does this push out the timeline of raising interest rates? all the fed members, including stan fisher, this weekend has made it clear that they're watching global events, they're watching the data, and they'll move appropriately. >> i think it does, to the extent that international weakness affects the u.s. economy. i believe the fed is probably less concerned about the day-to-day volatility in the stock market, but they will be concerned about, to the extent that international weakness leaks into the u.s., it hurts exports, potentially a very strong dollar is deflationary. these are factors that will affect the fed's decision and will affect the timing of a fed hike in 2015. >> although we should point out, russ, that you know, you have a

huge consumer sector in the united states, which is probably not too worried about what it sees on the market today. they will continue to spend in the holiday season and protect this economy. and exports in this nation are still actually quite a small percentage of gdp, compared to the number of companies who have earnings on the market exposed to foreign markets. >> i would very much agree with that. this is a domestically focused economy. however, it's important to keep in mind that while consumption is decent, it's still not great. we have an economy where real consumption as grown about 2.5% on an annualized basis. that's roughly 1% below the long-term average. household spending is okay, it's not great. if there is a shock to the economy, there is some vulnerability. >> what about what's happening in the interest rate market, russ? sub-3% on the 30-year. new lows for the year for the 10-year treasury yield. do you want to stick to these dividend-paying stocks.

i think there were more than 100 in the s&p 500. >> i think this is a very viable strategy. you know, i have to say, i'm very surprised, we're at close to 2% this late in the year. we thought rates would be higher, although not that much higher, but i think the issue you're raising is an important one. bonds, particularly treasuries, are not offering much yield. and while there is much more volatility in equities, when i look at some segments of the dividend-paying space, where i can get some growth, where valuations are a bit more reasonable, i would rather at the margin be getting more of my income from other asset classes, a little less from bonds. >> and people who want more information on that, russ, can conveniently read what you wrote in the "financial times" today. it's nice to see you. russ koesterich, blackrock's global chief strategist. a dallas nurse who was infected with ebola has now received a blood transfusion with a survivor of the virus. meg is live with that and other new developments in the ebola outbreak.

>> that's right. we know that nina foms is 26. she's a nurse here at texas health presbyterian in dallas, where she was involved in the care of thomas eric duncan, who passed away last week. health officials say that she was fully suited up in her personal protective equipment. they don't know how she became infected. they're investigating that now. they also say, we could see additional cases from other people involved in mr. duncan's care. they're currently compiling a number of how many people that was. we should here about that later today. we also know that fom received a blood transfusion from dr. kent brantly, who survived ebola earlier this year. it's his third blood transfusion to somebody battling ebola. he also donated to dr. rick sacra, and to ashoka mukpo. now getting updates from ashoka mukpo via twitter, saying he feels like he's on the road to good health. now, mukpo is also receiving an experimental drug ma. because it is experimental, it's not known whether it's working

or how well it's working. there's no word yet on whether many fom will receive any experimental drugs. all drugs being tested on ebola are in the early stages of development. we got an update on west africa, the death rate is now up to 70%. they say there could be up to 10,000 new cases of ebola per two weeks in new months. and 8,914 with 447 deaths. a lot of calls for more aid to west africa. cdc saying over and over again, we have to stop it there before the risk can be zero everywhere else in the world. and one coming from ashoka mukpo, who says, now that i've had firsthand seerexperience wi this scourge of a disease, i'm even more pained with how little care sick west africans are receiving. coming up, jpmorgan, citigroup, and wells fargo all out with earnings. citigroup the only one saying

significant gains. what you should be doing with these stocks. citigroup up 2.25%. "squawk on the street" will be right back. 24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates. ghave a nice flight!r bag right here. 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 who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta than any other airline. i have the worst cold with this runni better take something. dayquill cold and flu doesn't treat your runny nose.

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welcome back to "squawk on the street." we're watching shares of signet jewelers, the stock is moving lower, although off of its lows now on the session. this on news that the ceo, michael barnes, has received. he will also step down from the

company's board of directors. he has been with cigna since 2010 and barnes will be seceded by president and coo, mark lite. the stock is now off session lows, but down about 2.25%. >> they had just reported a really good quarter. thanks, dom. it is a big day for the banks. jpmorgan, citigroup and wells fargo all without with earnings. i guess citigroup is the standout. >> if you're watching banks earnings, there's something for everyone, with all three of the some of the big banks reporting today. for citi, we have a "b." for wells fargo, a match. for jjpmorgan, a match. jpmorgan's analyst call is just wrapping up. the company saw profits slumping in almost every unit, except asset management, for several reasons. on the consumer side, it underwrote way fewer mortgages this quarter and its new loans were at lower yields, too. we know what's been going on in the yield market. consumer commercial banking, which has been a standout also

fell. the investment banks on mixed markets and it also to go a big legal charge, about $1 billion. the cfo marian lake says will go towards foreign exchange issues, among others. wells fargo moving on matched on earnings after cutting costs. mortgage originations were roughly half of what they were in the third quarter last year. another issue for wells fargo, banks have stashed away billions of dollars to cover loans that go bad. and as credit begins to improve, they release some of that money. they've been doing it for a few years, but now there's less and less of it to go around, less released each quarter, which means more earnings engines will need to be more apparent. citi released 552 million of those types of funds. that's the most of any bank so far. that's one factor in its bottom line beat. another, a surprise profit in citi holdings. its so-called bad bank. but perhaps of bigger focus, guys, for investors, were some strategic actions that citigroup is taking. it will exit consumer businesses

in 11 countries, including japan. that's the one that surprised people. also exiting consumer businesses in six countries in latin america, where the company has faced issues related to that. it will no longer do business with the personal security unit of vanamex after uncovering about $15 million in personal fraud. there are a lot of moving parts at citigroup, even though that's the stock that's moving the most today, but it's likely because investors are saying there's a lot going on and the company is willing to shed businesses to exit markets that are not going to be profitable in the long-term. >> what was with that early release of jpmorgan? hours online, hours before they were supposed to. >> the company is calling it an operational error on behalf of shareholder.com. this is a nasdaq-owned website. it came out about 4:30 this morning. it wasn't all of the earnings, just the supplement with much of the details supporting those underlying earnings. that being said, the market got an early look at that miss, which did move stocks and futures early in the market, but

is really only moving jpmorgan now. >> the deep dive on their servers? >> no suggestion with that. >> thanks, kayla, for rounding out the results of the big banks. let's take a closer look at how you should be playing this sector, citi and jpmorgan. brendon hocken is an analyst with ubs. and just sort of holistically, it doesn't sound like the big banks, although they have their own separate issues and tailwinds, gave us anything to really worry about in terms of the strength of the financial sector, as they have in the past? >> that's true. when you think about it, the results were largely in line. once you adjust for all of the moving parts, as you just laid out, there were a bunch of legal charges, some reserve noise and things like that, once you adjust for all of that, tax issues, jpmorgan marginally beat and citigroup -- excuse me, jpmorgan marginally missed and citigroup marginally beat. the biggest delta from a systemic perspective were these legal charges we saw around fx,

or jpmorgan confirmed fx, we'll find out about citigroup if about an hour. >> it sounds like about a billion of that. we know they're dealing with this fx scandal and market manipulation allegations and working on some sort of settlement. after that, is there anymore? is that it? is that the last of the major charges? this overhang going to finally calm down? >> no, we can only wish, right? there's still libor, remember? there was the charges of manipulating libor, which have not really largely been settled yet either. so although the rbs working group was settled. those were the large residential mortgage charges we saw both citigroup and b of a settle this summer, and last year was jpmorgan. so at least we got that in the rear view. looks like we're coming to fx here in the end of this year, and then we'll have libor left. >> jpmorgan didn't, from what kala was saying, didn't give a huge amount of detail on the billion-dollar charge. as an order of magnitude, do you

think they're covered? what other provisions will there have to be through the sector? >> there's really no way to answer that, with any degree of honesty, from my perspective. i'll tell you this. we talk about it a little on the call. i actually asked marianne about it. they said it's about fx, which was a good level of disclosure. not only do you get that out of banks, but they wouldn't comment on whether or not it was specifically from any jurisdiction, or they couldn't comment. day didn't say it was from multiple jurisdictions. we heard, it has a lot to do with the london regulators. hopefully, it's about more than that. hopefully they can bring several of these jurisdictions to a close, including the united states, which would be great to move past and put this all behind us here. >> brennan, which is the best investment for the next year, of those that have reported today, do you think? >> my favorite idea is morgan stanley. i really like the emergence of the wealth management business. they've been the most proactive in embracing the new regulatory reality. the new shift to business is

positive. i really like morgan stanley. i like what they're doing. >> at of your fellow analysts like jpmorgan, of the big ones, and i thought it was reassuring to hear ceo jamie dienon smon s he's bettin better health. do you think that lifts some of the overhangs off jpmorgan's health? >> it could be. we wish jamie dimon nothing but the best. the financial world is a better place with him running jpmorgan. we had got news that the treatments were going well throughout the summer and it wasn't a major concern for most investors, the specific health issues around jamie. >> brennan, what about the cost of increased security against cyberattack cyberattacks, which obviously came into great focus, given that unusual and significant attack against jpmorgan this summer? >> jamie talked about that a little bit on the call. he talked about the costs for cybersecurity doubling over the

next four or so years. and these are just a few hundred million dollars. so we're not talking about anything dramatic. jpmorgan keeping contacts is spending an additional $1 billion on legal costs and compliance. in the context of that, not really a huge driver. >> the outperformance, wells fargo for the years, shares is up 11% so far this year. now that rates are remaining very low, do you expect that -- do you expect more gains to be made in wells fargo, more mortgage originates, better u.s. economy, consumer loans, et cetera? >> continue cover wells, explicitly, but they're one of the most levered banks in the u.s. economy and the u.s. economy has certainly done a lot better here. >> all right, brennan, thank you very much for join us. brennan hawken is an analyst with ubs. up next, getting an inside look at tesla's model-s, quite literally. find out what's inside the car and how much it actually costs to produce. a teardown of the "s," right after this break.

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outbreak. >> reporter: that's right. just getting word via facebook that mark zuckerberg and priscilla are donating $25 million for the center for disease control foundation to help fight ebola. they say the ebola epidemic is at a critical turning point and they hope that this is the fastest way to help, to empower the cdc and experts in the field to help prevent this outcome that reaches a large scale, like hiv or polio, they say. mark in this post on facebook. he says, grants like this directly help the frontline responders in their heroic work. we hope this will help save lives and get this epidemic under control. mark and priscilla zuckerberg donating $25 million to the center for disease control. >> in about ten minutes, we'll be talking to a republican congressman, whose committee will be hearing the case on ebola on thursday. in the meantime, the electronics research team at ihs is taking a look under tesla hood, quite literally. the company breaking down the tesla model "s," piece by piece,

at least the dashboard to see what's really behind the hype. joining us now is eric hessendahl. i was wondering where they actually got this model-s from, and then i read it's roadkill according to your article. >> the folks at ihs, we usually deal with them when they're taking apart iphones or other consumer electronics, but they're also very well known for their automotive intelligence. they got a rare opportunity to buy a wrecked tesla model-s, a slightly older one, older 2013 vintage, not the very, very newest one. but the electronics were completely in tact. so completely working, so they took that opportunity to get it in the lab and start taking it apart. >> what do we know, arik? >> first off, there's that gigantic 17-inch screen. and what most people expect in a car, a touch screen in a car, is not very responsive. this one is much more consistent

with what you'd expect from an iphone. there's a reason for that. it's the same supplier for the display, tpk, from taiwan, that supplied the for very first iphone screens back in 2007. that's one interesting thing. another big winner in this is nvidia. they supplied two modules per car. they're high-end, tegra-3 processor is inside this module that they sell. one drives that main display in the dashboard. the other one drives the instrument cluster for the sp d speedometer and the other things the driver sees. lots of electronics in here, lots of custkus custom work. ihs says it had almost 5,300 individual components. and in terms of head end units for any car, it is substantially more costly. although we don't have any specific cost estimates. no number on this one.

>> so arik, why is the fact that there's so much kus tomorrow work important? >> it's pretty clear that the folks at tesla really wanted to control that experience. typically what you see with an automotive situation like this is that the carmaker will outsource the design and the interface and so on of the head end unit. they'll take that to a harman or alpine or panasonic. this has all been custom designed. the assembly has been done by an odm, but the custom design. tesla has gone to the trouble to design ten individual circuit boards to their own very rigorous specifications, and it's all about controlling the experience. i daresay, very similar to what we might see from an apple. very -- a lot of the obsessive detail to controlling the experience and the functionality. >> i'm reading were piece, and you compare it to how many parts are in the iphone. you made a comparison to the apple.

i wonder how it compares to other autos that are out there on the market. how much more technological savvy it is really is inside, than, say, comparable models from gm and ford and chrysler. >> yeah, what i know about that, i don't do that market specifically, but what do i know, the component count here was almost 5,400. on an average one, you're talking more like 4,000. so much more cost, a lot more attention to detail. also, we're seeing a lot of high-end products. there's a company that ihs had never seen before. it's called s-1 inn. it's based in germany and splice a lot of electronics for entertainment systems. on the high end, day supply the audio chips. never seen them before. >> arik, good to see you. a senior editor on the breakdown of the model-s. straight ahead, apple shares

up neurosurgeon 25% this year, riding high on reviews of the iphone 6. also, news of another big event on thursday, but is all this priced in the stock. one analyst doesn't think so and he's raising his price target today. we'll speak to him live after the break. take a closer look at your fidelity green line and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for.

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federal and state health officials are now re-examining safety protocols for working

with ebola patients the today after that nurse in dallas contracted the deadly or potentially deadly virus. the cdc says improved training and education is needed to help hospitals better prepare for the disease. joining us now is texas republican congressman, michael burgess, a doctor from north texas. he'll be part of a house hearing on the ebola outbreak on thursday. congressman, welcome to the program. >> thanks so much for having me on. >> this is clearly a very important shift now from the cdc and from the white house. rather than saying, look, we've got this thing covered, a more constructive phase, where they admit that the protocols may not by transmitted on the ground, as they had hoped. what can you do in constructive phase as a committee to further strengthen the resolve here? >> well, i think one thing that everyone has learned over the last six weeks is to have a great deal of humility in your approach to this illness. look, i believe if someone involved in research wants to study the virus, they have to go

to one of four very specialized labs in order to do this. but you can go to apparently any hospital and take care of it? i don't think so. i think once the patient is identified and stabilized, they do feed to be transferred to a specialty facility that will provide the care where the personnel have the training necessary to provide the care and not endanger other people or themselves. >> that may be your recommendation, as a medical doctor, but that's not the system, is it, sir? >> no, it's not. and, yeah, i've spoken to people offline about this. i do believe -- i'll be honest with you. i think the thinking is evolving as new information comes forward. but, clearly, the days from the early part of september, where we've got this one in hand to where we are now in the middle of october, it's a different situation. but don't forget, people were telling us in mid-march and mid-april, that this disease would burn itself out in western africa, it would never reach the

proportions that it has over the last six months. so i think all of us are learning a lot about this illness, with the passage of time. >> well, given that officials in this country have totally underestimated this, and that there have been mistakes made, you alluded to this, but you underprepared are u.s. hospitals for this, with now a nurse contracting it from a patient and other health care workers around the country concerned. >> well, last summer, i had some discussions with the cdc, and it was pretty obvious then that the virus, of course, has a very high mortality rate, 50 or 60%. but 10 or 15% of those deaths were among health care workers. so there was a real vulnerability. but you look at the experience of a group like doctors without borders and the almost ritualistic or militaristic way they go about preparing to go in and take care of the patient and then depart from that environment, there is a lot to be learned there.

some of the e-mail i've seen is that people say, we're exposed to almost toxic levels of chlorine while disrobing after coming out of a patient care environment. you know, the average anti-room in a hospital in the united states is not prepared to deal with that level of decontamination. >> you mentioned doctors without borders were working in west africa. mark zuckerberg is just getting himself some headlines, because he's donated $25 million to the cdc foundation in this country. if people are concerned about this and they want to help, are they better, in your view, donating to the cdc foundation, or doctors without borders? >> i'm not qualified to provide that level of discernment. i welcome mr. zuckerberg's donation. i hope others will follow his lead, but doctors without borders is also an excellent

group and certainly worthy of people's support. >> the point i was going to make is, one is obviously operating in a different field, as the origin of the virus. let me ask you one final question. you can help me with the involvement and the cost of what is going on in hospitals. i read that the missionary, kent brantly, had 26 medical staff caring for him. they were pumping 5 to 10 liters of fluid into him every day. who is going to pay for this level of reaction from the hospitals and for their potential liability if one of their staff gets sick and they then sue the hospital on the basis of the hospital hadn't properly prepared them? where does the cost for this and the liability for itened up? >> well, those are two separate areas, the cost and the liability. but the answer to both of those right now is not knowable. you're in the phase of fighting this right now. it has to be fought. the challenge has to be met. i think there are things that can be done, that mitigate some of the dangers. i do think, i'm one of those, who thinks that visas for people

traveling from western africa right now, we need to put a pause on that. clearly, things were not as we were told at the first of september by the federal agencies responsible for preparing our hospitals. we need to put things on pause for a period of a few weeks and allow ourselves to catch up. >> we'll watch what you do on thursday with the committee with great interest. thank you for joining us. the dow now up 34 points. let's send it over to dom for a quick market flash. >> we're talking about management changes over at darden restaurants. appointing jeff smith as its chairman and named chief operating officer jim lee as its interim ceo, replacing clarence otis. darden shares up about 1.25% as jeffrey smith of starboard value takes over as chairman and gene lee as interim ceo. >> a score for the activists.

up next, an upgrade during an upgrade cycle. apple's price target up by credit suisse ahead of the company's big product unveil on thursday. should you with a buyer before the event? we'll talk to the analyst who upgraded it, next. twhat do i do?. you need to catch the 4:10 huh? the equipment tracking system will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge. what? in 3...2...1... are you kidding me? go. right on time. right now, over 20,000 trains are running reliably. we call that predictable. thrillingly predictable. ghave a nice flight!r bag right here. traveling can feel like one big mystery. you're never quite sure what is coming your way.

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apple is getting a vote of confidence this morning. credit suisse upping its price target for the stock to $110 per share. sees apple selling more iphones and margins improving. let's talk to that analyst. covers apple for credit suisse and joins us now. you still have a neutral, but taking the target from 96 to 110. why? given such high expectations going into this product unveil, why now are you raising the target?

>> i think the point that we're reallyrying to make is that we need everybody to think that iphone volumes are going to be strong going forward. the point additionally we want to make is that there's a very positive mix shift happening in the iphone business. much burn the street anticipates, but much more towards higher memory content devices. and what that basically results in is gross profit dollars in the iphone business expanding, as much as 45% from the fiscal year 13 base. we think it's that mix shift that is really underappreciated. >> and that is more people buying the iphone 6 plus, higher margins. what sort of proof do you have? do you have any indications, say, that they're trading in their android-based samsungs for the iphone 6 plus? >> well, it's actually much more about apple's existing product cycle. existing product users upgrading to the iphone 6. so we estimate now, that the 6 plus users are going to be about 20% of volume going forward.

that's significantly higher than apple had previously had. and that's supported by a number of checks we've done, as well as our proprietary survey. additionally, it's not just the iphone 6 plus issue, we'll also highlight there's a shift towards higher memory content. we think many of the users are buying the 64 gig phones as well. >> so 110. it's still pretty far away from carl icahn's aggressive $200 price target. what do you think apple would need to do to get there? that would be a pretty -- a higher multiple. almost 20 times earnings. >> yeah, so we are probably at 12 times multiple. and one of the things we want to factor in is some conservatism. we recognize that it's a peak number. the margins are going up. to that kind of an earnings number, i don't think you should be applying much more than 12 times. the proposal that carl icahn put out implies a 19 times multiple and i don't see a company of this size rerating to that magnitude especially on an earnings number and the sustainability of it, which we

might want to question going forward. >> can i focus on the margins in particular? we had peter teal on the program. and we put carl icahn's point to him, that you should massively increase the buybacks. and peter teal said, yes, but that assumes that the margins are going to hold on in there. and that the margins won't actually fall for apple as they do with most consumer electronics overtime. are you saying importantly now that apple does not have a problem with its margins, because it is able to push people up to 64 gigabytes, effectively. that it's doing something that nobody else can do in the industry? >> no, actually, what we're saying is apple can expand margins over this product cycle through fiscal year 2015. we think gross margins will go towards 25%, but specifically in this morning's note, we also acknowledge that these margins are our significant premium to any of the competitors historically, and over time, they are more vulnerable to fall. but what won't happen, they will

actually expand in '015 and decline after that. we don't think this is an up tick. >> why do you think the margins will fall? because from what you've just said? that's not what you're seeing at the moment? it's a really important point. >> i think the reason being, there's been a lot of pent-up demand for apple's largest devices. you're seeing a one-time makeshift towards a plus. additionally, this memory content upgrade is because apple has stopped shipping a 32-gig version. that forces you to 64-gig. i don't see having the same conversation in a year's time, the consumers from 128 gig, or we're going to be buying 7-inch devices, because, you can't have a phone of that size. so there's a one-time optic that drives this. but going forward, you have to factor in, apple's gross margin in the iphone business over any prolonged period of time have actually been coming down. >> kulbinder, quickly, what are you expecting on thursday, product announcements? >> we're expecting a refresh to

the ipad air and to the ipad mini. we think the devices could be thinner, a new processor, they'll probably incorporate the touch i.d. fingerprint scanner and probably incorporate apple pay. the one thing with the apple ipad business is, it's basically stalled to no growth. this should hopefully reaccelerate it somewhat. we do have a much more mature business. the iphone is two-thirds of gross profits. it has less impact on the model. >> absolutely. thank you for joining us on this call that you made today. neutral on apple, takes up the price target to 110. coming up, walt mossberg will be joining us. >> and earnings on monday. >> yes, of course. we're back after a quick break here on "squawk box." i have the worst cold with this runny nose. i better take something. dayquill cold and flu doesn't treat your runny nose. seriously? alka-seltzer plus cold and cough fights your worst cold symptoms plus your runny nose.

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we've taken a leg higher now, with the dow now up 70 points. s&p 500 up half a percent. let's send it over to dom chu for a quick market flash. >> one stock moving in the opposite direction.

gw pharma, they're down in trading after posting gains earlier. the biopharma company that specializes in marijuana-based treatments announced positive test results for one of its drugs targeting seizures in children and young adults. the doctor's report shows signs of effectiveness and safety that's consistent with previously disclosed data. the stock has been on a steady downtrend since hitting its highs in early july. the stock is down about 38% in that time. and in a programming note, justin gover will be live here tonight at 5:00 p.m. eastern on "fast money." tune in for that. >> now to rick santelli in chicago with that sub-3% 30-year yield, rick. >> sarah, i know that the world may be surprised, but this gentleman isn't surprised. i'm not surprised. i remember the last time, a while ago, that we were flirting with some serious sell-offs in the dax towards the end of last year. you and i talked about the issue of when the water recedes on

everything going on, that equities cover up. you're going to see, still, toxicity within the banking system. nothing's changed. it's metastasizing. >> absolutely. and we have the asset quality review scheduled for, now, i think it's actually october 26th. so what we're finding is the dax did cover some ground. and when you see the run-up, but it can't cover it forever. and the most important part, i know a couple of weeks ago when i was on, we talked about it. the dax went up. but it started to give ground after the ecb went to negative rates. so it showed you, and for the united states and for all equity markets, that low interstates can only carry the water so far. eventually, good economic news is going to have to be -- >> which is so funny, because when we had decent economic news in 2011, 2012, 2013, the equity markets, obviously, paid attention. but they didn't pay attention to any of the negative attributes of fundamentals. now, you get mixed fundamentals and even some good ones, the

market seems -- it wants to go down. which leads me to the point that, it may not be a cause/effect, it might just be a timing,, that the markets and equities are ready to roll over, which could be very dangerous for the policy of central banks dangerous for the policy of central banks. >> of course. stanley fisher's speech is unbelievable and a must read. because if you see that speech and see the fed thinking. >> let's summarize. he is an international guy. used to be at the bank of israel. so looking our our central banking activities more from the purview of international playing around. >> don't forget he's also at the imf and a high position. >> what is the danger there? >> because you can never be wrong. i can look around the world and always see some facet and go that is going to have an impact for us. now the fed has -- he'll see it is in the dual mandate because it's protecting the down side. >> what you're really saying is

if you have a neighbor and you see somebody is delivering them big time high fidelity management. so yes the fed and the u.s. has to deal with that. but to get more proactive which is what i think you are saying is nervous. >> and it's over reach. a hypothetical. let's say the united states government imposes sanctions on a large country somewhere. they start to bite the global economy. ought the fed to respond and override -- >> in another area of the foreign policy. do you think this it is the big ench la disagree in the marketplace? >> no. what. >> sure. we see bond -- and the bond market isn't quite there yet. we loon look -- i'm looking at the 210.

the 530 curve is interesting. it's the trader curve. the 210 is the investor curve. if we got below 160, i would be a little nervous. >> back to you. >> slets a look at where we were on oil. oil continuing its slide after the international agency cut its foerks for demand growth. >> as equities seem to rebound here we are seeing oil prices continue to slide. wti down almost 2%. brent off more than 2% today as a matter of fact. a couple of data points contributing to that. you mentioned had iea reducing demand for 2014 and 15. right now we know the market is very well supplied. the wild card was demand. this is putting a nail in the demand column and signaling to the market we are going to see less than expecting and you get

this equation that's really off balance here. in addition i want to point out more economic weakness out of europe. we got that german economic number and that is signaling that the european demand will be week as well. a lack of a spotty of opec response here. you have the middle eastern countries saying they are not going to be cutting their supply. they are willing to eat the price decreases and suffer through it. some traders tells me this is signaling saudi arabia is saying wie we're going there alone. every man for itself. we're going take the price cuts and everybody else it's really too bad. in the meantime if you talk about the sweet spot for oil, you could say that it really is right now because saudi's braecbreak even is about where it is trading. and gas prices under $3.

which is really good for the consumers. so if we can hold at these levels it is probably the best thing for the oil market. also saying don't panic. if you remember back to 2008 we saw oil prices go from 140 down to 33. it was not just the financial crisis but dollar fluctuations. but a very big move. and we're in the 80s right now. a far cry from 33 dollars. so no real need to panic just yet. >> 33? >> 33. it was a drastic drop. no one realized it because of all the other annerky that was happening. >> squawk alley takes the air in 6 minutes time. chris dewolf will explain what's happening in the tech world. ♪

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three quarters of a billion dollars of market stock if you like on the e minis. but still treacherous markets as jim cramer said. >> and you are seeing a nearly 100 point gain on the dow jones industrial average. and follows recent action which is a 100 point swing. something we're not accustomed to seeing all yearlong. >> the one thing as you look at this board, to focus on is level of the s&p 500, if you are not often in this game. the 200 moving day is 1905. for many the enact we are below that is a gauge of some concern. if we were able to regain it the bulls would be cheering into the close. >> and just in terms of the market action, what we're seaing in terms of the highs, utilities are still going strong and that is the play on the lower yields. what we've seen is the 2014, a

30 year yield below --. >> enough of that. let's get over the squawk alley and the gang led by andrew. >> i'll take it from there. thanks so much guys. it is nearly 8:00 a.m. at google headquarters in mountain view, california. 11:00 here on wall street and squauk alley is live. >> carl is off today. joining us this morning. the chris dewolfe, co-founder of the himyspace. you just heard from simon and sarah that we are you have at the three day rout in the markets.

the dow up about half of one percent. it had been up in the triple digits but given off some gains at this hour. the s&p has been close to correction territory. but you can see that is up about 10 points and gives a gain of about half of one percent. the nasdaq also seeing a the healthy 34 gain. and it is the german data that continues to be the weakness that is driving the markets but at least for today there is some healthy volume leading to the upside. part of that people will say banks. >> are we saying germany? are we putting it on germany? >> at least that was for futures. >> i would put it on ebola but anyway. >> there is a lot of stuff. let's be honest right now. >> switching gears and talk briefly about alibaba. several analysts starting to put out research notes on the