here today. >> qe is alive and well. you might not like the way it looks or smells, but it's here. >> check out the futures this morning. dow futures up almost 70 points. all what we heard out of the ecb. continue to follow this on "squawk on the street." have a great night. see you here, everybody. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at new york stock exchange. utilities and transports, futures steady here. nice morning shaping up on what is truly a mixed bag of earnings today. tesla, whole foods and cvs. jobless claims nice and low at 278. crude oil giving back some of the gains up yesterday, as well.

record highs for stocks, jobless claims out. mario draghi speaking now in frankfurt. >> cbs revealing terms of live treeming. . >> tesla reports record deliveries. losses mount. both stocks are in the green before the open. a lot for investors to digest this morning. the ecb keeping its benchmark interest rate at record lows. ecb president draghi says the central bank expects to increase the size of its balance sheet toward 2012 levels. opec cutting its production forecast project the it would fall by 2017. in the states, did fall. the second lowest level this year. comes ahead of tomorrow's key october jobs number. between gas prices, jobs market, the market, politics, things are suddenly working in ways they weren't a month ago.

>> i had the ceo of marathon petroleum on. he is the best keeper of the number. has 8,000 gas stations. what was so incredible was he said you're just not being bullish enough about what happens in this country when gasoline goes down. maybe you're not bullish about what's happening in washington. i said europe is falling apart. this is offcamera, chattering. you come in today. the one thing that is really bad is europe. you get positive numbers from europe and you get positive chatter. that allows the positive news in this country to surface. this is this yin yang where every day europe is bad. when they throw us a bone, our numbers get reflected positively. >> we have mario draghi this morning in a press conference. ecb saying officials unanimous more stimulus available if needed. >> right. the joke is they go by etfs, too. >> and bank of japan buying everything in sight.

>> is he the buyer of tesla here? >> i heard corona say give me 50,000. >> we joke, but it is possible. >> the chatter out of europe was there isn't anything they won't buy. we are in a strange time here. citi says the u.s. is bursting at the seams. even below 75, production will be robust. >> look at apache this morning. the break-even levels because of technology we've come up with are so low. these guys can keep pumping. let's go back to hemminger. what he says. he said there isn't that much oil in the pipe and we are still importing a huge amount of oil. the confusion here is that it's very clear that if the saudis don't shut down, they don't pull back, they can keep our oil

prices down. it's not a conspiracy. there is a use for some of the oil. you are not going to see oil go up until you absolutely see the saudis making some deal with venezuela. people are very worried venezuela is about to fall apart because prices have come down. it has to be international geo politics controlling the price. they have 1% increase same-store sales at marathon's gas stations. >> why should it be a surprise the price of oil is falling when the last two years any of us paying attention have known that production in the united states has been going like this and that we've been talking about being energy independent by 2015. why is this a surprise? >> we hit the dipping point. you look at apache numbers this morning. permium was dead.

these places are pumping out oil like you wouldn't believe. we should have known. we thought opec would say let's not keep it. >> that's the apprehension? >> everybody wanted higher prices. we were wrong. >> we are within 50 days of christmas. costco numbers, same-store sales, ex-fuel up seven. >> we are if a moment here where people are dining out, people are going out. i sometimes have these interviews that blow you away. carpooling down big, suvs up big. all the things that would drive an environmentalist crazy. gasoline will be at $2.50, no problem. marathon, they bought hess. you are talking about a windfall for america. rather than be negative about the 16 states that will lose a little revenue and job growth, i come back and think costco. this is what's happened.

>> there is still time to nail the number tomorrow. tweet us your predictions for october nonfarm payroll. use our handle squawk street. if you win, you will receive this cnbc 25 hat autographed by the "squawk on the street" gang. some viewers said, can we get the nonautographed version? i thought that was funny. >> i had more interest in this number. people ask me how to do it in a long time. they are playing. people are optimistic about the number. how could they not? the numbers this morning are so positive. i come in positive today. i come in positive, not just because it's our 25th gala tonight. very proud. >> i've seen most of them. >> shares of tesla in the meantime rising in the premarket. the electric car maker beating the street with third quarter results. company lowering its current year delivery forecast and delaying deliveries of that

model x until the third quarter of 2015. last night on tesla's conference call elan insisted demands for the cars remain strong. >> demand is not our issue. production is our issue. those are legitimate things but not demand. we have more demand than we can really address. there's a lot of things we could call to increase that demand which we are not pulling. >> stock was up 6% in the premarket. a lot of people don't think that's going to last. >> i love this piece of research from bank of america. starting line is stock reaction not sustainable. remember when you talked about earnings not sustainable? no. stock reaction. none of us could get away with it. only he could get away with it. somebody asked him tone setter, first question of musk, 50,000 model deliveries in 2015.

he says i don't think 50,000 will be super hard. if you look how we are exiting the year and he got more and more bullishness, production demand, 50,000 is a solid number. no one thinks that is possible. he is an emprisario. he is hal prince. >> the new sondheim show? >> musk side story. >> p.t. barnum? >> no. he is a man that can put on a show. this conference call is a tough ticket to get. >> we'll have more on tesla in a little bit. after the break, a live interview with les moonves. upping the ante when it comes to streaming. maybe new records set today. "squawk on the street" back in a minute. tigers, both of you. tigers? don't be modest.

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cbs shares are trading higher premarket as third quarter results were ahead of wall street estimates. the company making a number of streaming video announcements including today's launch of a live digital news channel. joining us is president and ceo of cbs les moonves. >> good to be with you. >> i'd like to start off with advertising. it's been an interesting week hearing from discovery and

negative comments and reports like yours and time warner and fox's. is it fair to say there may be a bifurcation in the world some seeing weakness and others not and maybe it depends on programming? >> you know what, advertising does depend on ratings. broadcast television, ratings are definitely up. our ratings are across the board in every demographic starting the year. summer was a little slow. scatterers picked up in the third quarter and picking up in the fourth quarter. network television may be doing better than basic cable at the moment. >> that's interesting to note. there is always this conversation about digital and how much more it con seasonably is taking of what may be a relatively static pie. are you seeing that? >> i think obviously digital is growing, it's not a myth, but primarily they are taking it from print, as well as we think

from niche cable networks as opposed to broadcasters. we have three or four shows watched by 20 million people a week. it's a lot of hits on youtube to equal 20 million viewers on cbs. >> it certainly is. another part of your business that is not advertising is retrends. you talk about being on track to exit 2016 with over $1 billion in retrans. you have a big deal coming up with dish. >> yes, we do. >> we were at a dinner last night together. i am not sure we were able to wave to each other. urgin was there. did you talk about when with you will make peace? >> charlie and i met yesterday afternoon and are attempting to make a deal. our deal is up november 25th. i think we are making progress. we'll see. they are currently, obviously, dark with some of the time

warner cable channels. we have said we don't want to be dark, but we want to be paid appropriately for our content. we've proven we are not afraid to fight. we would rather not -- i would rather be a lover than a fighter. >> i know that, though you have fought. most recently in the case of time warner cable, a fight you won. ergen doesn't care that cnn is no longer available in a lot of his households. >> with all due respect, cbs is not cnn. i wouldn't want to be in denver where charlie lives and not have the broncos games on three days after november 20th. i think we have a certain amount of leverage that may be cnn and cartoon network done have. >> how much comes back to the nfl time and again? >> the nfl clearly is very important. it's important to a lot of networks. obviously with us having had thursday night football this year plus our terrific package on sunday, it's still a very important part of our

programming. >> this is jim. you point out four blowout games. >> i know. it was terrible. >> it's like we had the four worst games. we can produce it well, promote it well, i can't get on the field and make the game close. >> talk about cbsn and what this means. how is the content going to be different from what we see on television? >> as of 9:00 today, it just started. cbs just started. cbs news is a phenomenal organization with bureaus across the world, producing a ton of content which we don't have enough air time to put it on. since we do not have a cable news network, we have ability to put on a 24 hour news channel

with anchors live, with plenty of content at not a great cost. it's a great wave for the future. now to have this with news as well, i'm very excited about our future. >> i want to talk about cbs all access. most of it will be available video on demand. some markets you can get the linear live feed, as well. aren't you in danger of taking off your cable partners with this service? >> no. the idea of cbs all access is to be additive to them. we are not trying to go around our cable or satellite partners at all. there are 10 million homes that have broadband only. they don't have cable, they don't have satellite. they do want cbs content you. go on college campus today,

there aren't very many television sets but a lot of computers and an awful lot of ipads that will be able to get live linear feed of cbs plus video on demand content. this is additive to who we already are. we expect it to grow a lot over the next few years. >> i would assume it also is in some ways an experiment. you get to see what this world looks like as it evolves, don't you? >> no question. we have gone into ott both with entertainment and with news. everything is changing so rapidly. a year from now i'll have a different point of view of the world than i did a year ago. >> what's it going to be? any idea at this point? >> if i did, i would be a genius. there's a lot to come. the world is changing extremely rapidly.

cbs is all places it needs to be and our great content is in all different places. >> you bought stock back over the last nine months. able to do it at a lower price than last year. have you been disappointed at the performance of the stock price this year after what was a great performance in 2013? >> no. we had a phenomenal run. certain people took profits off. over the summer, there obviously was some fear about the advertising market. we are not at all worried with the earnings we announced yesterday. we are very, very confident our stock and our future. it can't go up every single year. our eps has been up 19 quarters in a row. that's 19 quarters. we are very confident that it's a good buy and a great value right now. >> right. of course an important component of that has been your continued repurchase of stock. i expect you continue to have that be a part of the strategy

to the company. >> absolutely. we have plenty of dry powder. we'll buy $5.5 billion worth of stock over the short term. rest assured there will be a lot of value to shareholders' return. >> something you haven't done a lot of is large acquisitions. you were asked about stars. you said it's an interesting asset but we feel content with what we have now. you're not buying starz. >> showtime is doing extraordinarily well. the content, they are achieving great things creatively and financially. in the premium cable space, showtime is certainly one of the gold standards along with hbo. starz is something that is a valuable asset. but we are content with what we have. >> finally, this new world we are a part of now where you can

sell your content to netflix or frankly a new deal with sony. >> right. >> is this something that is going to end? is this a great fruitful period of time that is going to come to an end in terms of your ability to continue to find home for content you might not have thought and getting paid well for it? >> david, no way. when you look at what's happened over the last few years, suddenly out of nowhere came a netflix and amazon, hulu plus, now sony. there are always going to be buyers for our content. as long as we continue to do what we are doing, there's going to be new entrants, domestically and internationally. the sky's the limit for those who have the content. >> as always, appreciate your taking time this morning. thank you. >> thank you, david. >> les moonves, ceo of cbs. >> we'll get cramer's mad dash. one more look at the premarket as we get started on this

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it's time for mad dash on this thursday. whole foods. >> i thought this was the

beginning of the turn. because of instacart. the infinity card, the new wine club. that's doing well. remake of the stores. there's going to be 10% of the store base will be upgraded. the cannibalization in boston is over. the mobile app is working very well. gross margins are getting better. >> talking whole foods here. this stock has been in the wilderness and this company has taken a beating. you're telling me it's over? >> i'm telling you they're in canaan. >> they made it to the land of milk and honey? >> you are beginning to get the warm-ups. that's why it's not over. i can give you a carpenter's thing, "it's only just begun." everyone was worried. they mentioned trader joe on the call. trader joe comes in, they get

hit a little bit, then they bounce back. the new stores, the revamp, renaming of the shows. the refresh of the stores themselves. it's the excitement again of going back to whole foods. excitement. walter rob was the most bullish i heard. i love this transcript. musk whom everybody loves, when macke goes at it and rob go at it, they had been down beat. musk is like listen, we'll solve the world. they were down beat in the last few years. they are back. macke and rob are back and better than ever. >> stock is looking very good today. we've got a lot of other stocks to watch. there was no question she was the one.

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you are watching cnbc "squawk on the street." the opening bell in a couple of minutes on this thursday. a lot of things going on. central banks leaving rates unchanged. bank of england and ecb. a lot of earnings. then there was the dow triple yesterday. industrials, transports, utilities, record highs. haven't done that since 2007. add in an s&p record. haven't done that since, i think, '98. >> is it not amazing for how many years did we hear people saying things will start getting good, fed will start raising rates, stocks will go down. we like earnings and revenue. that's what we are getting. >> i want to interject with news on allergan. we saw a filing earlier.

i said that was the filing earlier this week. >> only i heard it. >> that's true. wanted to tell you on air. allergan in its latest filing says discussions between itself and a third party activist have continued and may lead to knee goings. the latest updated filing from allergan in an amended 14-d9 that just came out, that looked very similar to what we saw when we told you about it on monday, but the key is discussions continue and may lead to negotiations.

did say allergan is a premier franchise, would love to be a part of it. he would say that about ten companies. >> there's the opening bell. a look at the s&p at the top of your screen. nevro celebrated its ipo today. at the nasdaq, the bob woodruff foundation helping injured /11 injured service members when they returned home. qualcomm will be the big loser of the morning. $1.26. does miss by a nickel. >> that was a tough conference call.

sierra wireless said things were very good. i don't want anyone drawing conclusions that cell phones are weak because of qualcomm. qualcomm is the case of a monopoly that governments around the world want to investigate. it's not even clear chinese are stealing, appropriating. this is out of qualcomm's hands. >> zillow is down 8%. ftc asking a second time for information on the trulia merger. they beat by a nickel. average monthly years up 41. mobile up 70. >> at the same time there was weakness in display ads from financial service companies. i spoke with spencer rascroft.

>> he's on at 11:00 a.m. >> one of the things that did bother me, he did say it doesn't matter, rates don't matter. rates turned out to matter to display advertising. right back at you, he will tell you, look, the agents love it. there is no doubt about it. the agents do love zillow. it was a mixed picture. >> we mentioned comps out of costco. they are calling it mr. and mrs. reliability of retail. >> just mrs. because of the lingerie. i like that. what is doing l brands yesterday. michael kors saying the mall is slowing. l brands is probably almost victoria's secret, bath and body works. when you walk in a mall, what do you think? i'm thinking on the right side they sell kors and people don't

go there. honestly, i don't like that excuse. this morning they said accessories are strong. maybe the problem is with kors. because l brands is a mall-based retail. i didn't like the excuse for kors. a lot of people own kors. it's a great momentum stock. read the l brands conference call and you'll say maybe this is more kors specific. >> you think perhaps they protest too much? >> i did a little brutus/caesar thing yesterday. >> you did. and we got the sondheim reference in today. good week. >> alas poor quarters. remember the glasses, all the world's a stage. >> let's get to mario draghi's news conference wrapping up. >> the euro briefly reaching the low 1.24 going to 1.2394 momentarily in the wake of his

comments where he said there was unanimous commitment to unconventional measures. he didn't specify what those were or talk about quantitative easing at all. mario draghi also directly answered head-on an article that appeared earlier this week suggesting there was deep internal conflict at the ecb and he was supposedly going to be confronted last night at a dinner about whether or not he was erratic, secretive, not very congenial. here is what he said. he didn't deny the report was true, but he suggested that perhaps it was overstated. >> first of all, it's fairly normal to disagree about things. it happens everywhere. it's important to add another thing. when we differ in our views and in our policies, there is another obsession of some of you, there is no drawing line between north and south.

there is no correlation, not at all. >> sometimes he went back to the topic repeatedly, sometimes unprompted, constantly bringing it up. went as far as to say last night's dinner was one of the best they ever had, the rueter's reporter said did anybody approach you on the side? no, i'm not ubiquitous. trying to present this idea they were one big happy team. back to you. >> thank you very much. got new records for the industrials this morning. bob pisani is on the floor. bob's not ready yet. transports, a new intraday all-time high. the s&p, the longest time it has been above 2,000. >> people like oil going down. initially there was that correlation with the hedge funds said oil goes down, sell stocks. not working out any more.

what people are now saying is this is the wind fall. i just think it's about time people got rational. this is the dollars in the pocket story. this is the tax cut story. this was a critical election. >> you called it the high water mark for government intervention in business. friends, this experiment in big government lasted long enough. it is time to move in a new direction. >> he's copied me for years. absolutely, there is no synergy there whatsoever. i do think the american people are voting with the stock market. there is a lot more interest in the stock market. we all see and talk to a lot of people. it's been a long time since anyone wanted to talk to me about stocks other than tesla. i'm getting questions was cbs' quarter good last night?

people talk about my short rib tacos and special margaritas. >> that just got me hungry, actually. >> wendy's did miss by 3 cents. comps in north america up 0.5. beef costs lowering guidance on comps, ebitda and margins. >> when red robin gourmet had a good number. i'm not going to say it's burgers. there is a sense chipotle, whole foods, remember, not a fad, people want natural and organic. they want at least feeling that it's not from a, you know -- i'm trying to be political about it. let's say fresher than. processed. thank you. that was todd in my ear saying processed. >> one part in the market not seeing a lot of green is technology, apple, facebook, yahoo, twitter, alibaba all down. not sharply at all. >> twitter won't break $40.

has not wanted to break $40 for long. >> i have said today i think a management change would take it back to $50, $60. i'll probably get around to saying that. >> man, you are on your own little campaign. >> maybe i am. i've been using twitter. this is what i call a gandhi-like move. civil disobedience within twitter. >> i don't know that the board is listening to you. >> you don't think anthony notah is listening to me? >> he doesn't make the decision about replacing the board. >> what did they say, i'm not aware of jim cramer against us? >> they are aware of it. >> you are saying there is no impact yet. yet is the operative term. >> interesting. >> s&p 2022. >> good morning, guys. we started positive. been losing a little bit of steam. we were at record highs

yesterday. dow industrials and s&p 500. utilities on the down side. look at the futures this morning. at 8:30 we had two separate events that moved the market up very early there. you see that pop in the green territory. the important thing is we had the weakly jobless claims numbers lower than expected. maybe upside to tomorrow's nonfarm payroll report. draghi's comments helped. the dollar strengthened. take a look at germany. this is 8:30. see that vertical line in the green territory? that was draghi coming out at 8:30. germany has the same v pattern the united states has had in the last month. big shale players, very interesting comments this morning. did you see continental resources? this is a big shale player. they are bullish. this is the first one i've seen. we view the recent down draft in oil prices as unsustainable.

they are anticipating a recovery in oil prices. taking off their hedges there continental was down because sales missed and they lowered capital expenditures. that's one company that said they would be lowering capital expenditures next year. separately, concho implied they might be down. >> inflation. they were hurt in part by a bigger than expected increase in beef costs. noodles and company last night said their margins, restaurant margins were under pressure. they were down because of an increase in food costs.

on monday, sysco cited acute inflationary pressures, their word, as an issue for the food industry overall. somebody is raising prices in the food business. finally want to close with kate spade. zero earnings. expecting a two cent gain. they did raise their same-store sales items 2014. that stock was trading up early on. >> thanks a lot, bob pisani. rick santelli at the cne. >> a 10,000 drop in jobless claims. i'm going with the latter even though the former is significant. i still challenge how you can derive that correlation with jobs whether we will get a more robust number with jobs. intraday, up about three basis points. i think it's mostly from draghi

in a tight time frame. open the chart up. look at october 1st to present. nice, steady increase of rates from that capitulation october 15th intraday level of 1.86 in 10s. intraday of boons. boons pop the same amount three basis points. open the chart up comparing boons to 10s. you are not going to find a wider distance than basically the area at the last stop before we came back to retest it. if you are interested, you have to go back to 1989. i can't go back that far to show another time we challenged these levels. bob mentioned the dax. good job. look at the dax. it moves from 93 to 94.65? pull the lever you get a rally in equities. that's the kind of central banking environment we are in.

they know it. they like those levers. look at euro versus dollar. it definitely went from 1.2420. we are going to comp to that for a while because it was a big break right before that in june. last chart is dollar/yen. memorize that chart. it's about flat today. haven't seen much of flat in dollar/yen relationship of late. back to you. thank you very much. two interviews you do not want to miss. priceline ceo darren huston on the outlook that disappointed the street. and tumbler founder david karp. you, my friend are a master of diversification.

who would have thought three cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*?

2014 marked cnbc's 25th anniversary. oralier this year we revealed our list of the 25 rebels, icons and leaders who had the most impact in the world on business over the past quarter century. now we turn to the future with our list of 100 who will have the biggest influence on the next 25 years. we profiled some of them. today a computer programmer who changed the world 140 characters at a time. in his own words, twitter co-founder jack dorsey. >> my name is jack and i never grew up wanting to be an

entrepreneur. i never thought about building companies, never thought about becoming a ceo. never thought about becoming a leader. the quote that captures the way that i've always thought about building that picture i want to see in the world is by steve mcqueen. when i believe in something, i fight like hell for it. that has been my life. i had a picture of what i wanted to see in the world and i did whatever it took to make sure it succeeded. to make sure it thrived in the case of both companies. i took 1,000 hours of massage therapy in st. louis, missouri. i wanted to get away from competing a bit. i was practicing and moved to san francisco and realized everyone was a massage therapist. i didn't want to compete with that and went back to programming. just by updating what's around you and sharing what you're seeing or what you're experiencing, the entire world can participate in that and have a conversation with you. the largest organizations in the world like starbucks or u.s.

government can use twitter to broadcast a message and make it feel smaller, make it feel more personal. the business model is around introductions and advertising. you'll see promoted tweets, promoted trends that are relevant to you. if you follow certain accounts, you'll get tweets that are relevant to those accounts. square really simplified getting into commerce from a seller perspective but buyer perspective. you can pay with the device you don't leave home without, which is your phone. we wanted to remove all the mechanics of payment. we are looking at countries all over the world to bring the same ideas, same great buying experience everywhere. i think the common thread is simplicity. both companies want to build something sustainable that last beyond one generation of human life. that makes a deep impact in the world. >> tonight, be sure to watch cnbc's one hour special, the

next 25 live from jazz at lincoln center in new york. anchored by one jim cramer. some of the guests include former citigroup ceo sandy weill, howard schultz. begins at 6:00 p.m. here on cnbc. >> twitter sounds like it should be making a ton of money in that field. they will outline a possibility of a 10 billion revenue forecast some day. that guy could run that company again. >> you psyched for tonight? >> yeah. when you have the kinds of guests we have, you'll be on with sandy weill. when you have someone like howard schultz coming on talking about leadership with people who are veterans and talking about the next generation of leaders, it resonates with me as his book resonates with me as his company resonates with me. i can't wait. honored to have him be part of the live show. >> some are about business, but often more than business. >> leadership in the next 25 years. after that election yesterday, i

think who are the leaders in our country? who are setting the agenda? whether it be howard schultz, what role will finance look like? tim cook? one of the greatest executives of our time talking about civil rights. heirs to mlk and rfk, ceos. >> can't wait. going to be a great night tonight on cnbc. dow up 25. we'll get stop trading with jim in a moment. ity theft protectio? [ male voice ] i'm sorry, did you say identity distribution? no. protection. identity theft protection. you have selected identity distribution. your identity will now be shared with everyone. thank you. no, no, no -- [ click, dial tone ] [ female announcer ] not all credit report sites are equal. [ male voice ] we're good in here, howie. yeah, have a good night, brother. experian.com members get personalized help plus identity theft protection. join now at experian.com. with enrollment in experian credit tracker.

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time for cramer stop trading. >> tableau. they do big data analytics. still great to see a company blow the numbers away and get rewarded with a huge, huge run. people need big data annalytics. genworth. this company does mortgage insurance but long-term care insurance. i had the ceo on not that long ago. he was saying, don't worry about the reserves. i kept pushing him. it's costing more and more and more. they had to eat crow last night.

a gigantic shortfall in reserves. $531 million. this long-term care business they started. people are going to live longer. second, the caregivers are costing more. it's a blow-up. >> what are they going to do? >> they have to raise money. i don't know. they have to raise money. >> would expect a dissolution? >> yeah. they have to raise money for mortgage business. i was shocked. i had hit on and pressed and pressed and pressed. just a shock. >> concerns in october, isis, ebola. both appear to not be going away but diminished. >> i think what happened with ebola story is when you get ebola in this country, it does feel like they put that maximum care approach with tremendous skill that we have in this

country. >> the president asking for $6 billion. >> it's not fatal. there will be fatalities. it's not a death sentence and that changed people radically. i still think isis is out there. >> in "times" today they called it a possible ripple as opposed to a movement. >> did we make too much of isis? >> there is no real press that can cover it because they kill them all. >> the committee to protect journalists will tell you that's the most dangerous place on earth. they brought everything down, travel and leisure, retail, restaurants. now those go back and recede. all that's left is maybe $2.50 gasoline. if we give every single family $2,000, think how high the market would be.

the shareholders that get hurt by $2.50 gasoline is diminus. >> they'll be able to commute from aening loer distance, create more jobs. this is positive for the united states of america. >> we'll see you tonight for that special, jim. >> thank you. >> 6:00 p.m. eastern time here on cnbc. an exclusive with the ceo of priceline darren huston. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement.

welcome back to "squawk on the street" on cnbc. some insurances from mario draghi. >> the priceline ceo weighs in. >> whole foods flying high thanks to lower prices and new technology. what you should be doing with that stock today. >> comments from the european central bank moving markets this

morning. senior economic reporter steve liesman has the details what moved u.s. interest rates and stocks. >> interesting morning. all the information breaking at 8:30. best to say a combination of very bullish jobs data and dovish central banks comments propelling markets this morning. claims 278,000. the second lowest number since 2000. claims at 2.35 million. lowest since 2000. productivity better than expected at 2%. market was looking for 1.5%. second quarter revised up from 2.3% to 2.9%. more efficiency out there. pantheon saying claims are long enough to signal very strong november payrolls.

we had generally lackluster productivity during the course of this expansion. barclay says consistent that wage growth is picking up. mario draghi telling markets what they want to hear. >> should it become necessary to further address too long a period of low inflation, the council is unanimous in its commitment to use traditional and conventional interests in its mandate. >> he said the first time ecb staff is studying new extraordinary measures to use if needed and you can see how the euro reacts. it fell to the lowest level since 2012. draghi denied reports of internal ecb discord, pointing

out the decision to study new stimulus was unanimous. i was looking at my computer. we got the nfib, small business jobs report. a decent gain in small business jobs. that should help the optimism for tomorrow. looking for 233,000 tomorrow. >> thanks, steve. quick question on draghi. some are wondering what is within the legal mandate for draghi to do now they is sowing the seeds for more action? >> i think what you're alluding to is this dispute whether they can legally buy sovereign bonds. i put that question to some ecb officials a few months ago. they said hey, we did it already. we've done it. it's within our legal purview to step forward.

they feel it's within their legal authority to go that next step if they want to do quantitative easing. you point out the covered bonds are sovereigns. >> it's a moot point. >> i don't understand what you mean, simon. >> whether or not they can legally intervene. >> they've done it and it was not overturned. >> we are waiting for ruling the beginning of next year. >> there is no ruling right now. >> not yet. >> okay. thanks. >> let's talk more on what all this means for your portfolio. are you hoping mario draghi

pulls out some type of bazooka? >> if one believes markets only go up because of central banks providing ammunition, everyone needs that to happen. unfortunately, markets drive farther because earnings grow and valuations are low. the fact we had september ral bank intervention and plenty of liquidity just adds to that. the market today is undervalued. the market is sopping up all this great earnings growth. the earnings story seems to be accelerating. it's a great picture to be in today. it's one that every pullback you get like the one we had a couple of weeks ago is a buy opportunity. you have to continue to focus on that. >> i have another positive bullish factor in there. end of the year is typically

strong for u.s. equities, post midterm elections is strong, especially if you have a republican-controlled congress and democratic president. do you buy into those seasonal factors? >> they take away fear and a good 10% correction is another way to eliminate fear. you can think what would happen if next year was a stronger earnings environment because of some of these other forces going on. you can speculate in november and december about 2015 because you don't really have anything going against you. it's generally a period of time that ends up being good for investors. that's why as you race into year end with active managers still hold i holding what we consider the faster growing names and s&p is running ahead of us, it's the time you want to be on the side

of stock pickers and let them run through year end. >> for people that aren't trading, people trying to invest and have medium term horizons, if they buy today, are they investing in a stock because of the future or are they investing or trading in essence because there are waves of liquidity coming from japan and europe that will lift all boats? or does it not matter? >> in my belief, long cycles, it doesn't matter. today it matters because people think that's important. what we are going to find out two, three years from now is you've been buying stocks at very attractive valuations. valuations we haven't seen in years. you're able to buy those in the face of all these positive global developments. >> i'm sorry. just clarify that. i'm confused when you say you're buying it at valuations you haven't seen for years. market to many people on price/earnings ratio is fairly

valued, if not slightly expensive. >> people get that wrong, simon. if the market is trading 15, 16 times with 2% interest rates, it's probably five multiple points undervalued. they use that notion of mid teens pe based on higher inflation rates and higher interest rates. when you back in lower discounting mechanisms, you get 20 times for fair valuation. that has nothing to say about what expensive stocks are, which we are not close to. >> let's talk about one group which some say is cheap. that would be energy stocks. they've been brutalized over the past few weeks and months. price of oil down $77.63, would you be looking for a bargain in the energy sector? >> sure. we can't find a link to the current market behavior and anything other than the saudi arabia attempt to rein in other producers around the world, in

particular opec. their credibility comes by keeping a little more oil on the market a little bit longer than the market needs and watching prices come down to levels that everyone gets concerned. clearly, with wti in the 70s now, there is concern. companies are pulling back. you are going to see probably some in venezuela and mexico too soon. then you'll see an opec meeting with an agreed cutback. if that works out in this time frame, these are the best stocks in the market. >> thank you very much. shares of tesla opening higher after the company beat expectations for the third quarter. quarterly losses nearly doubled from a year ago. chief executive elon musk said

demand is not our issue. production is our issue. being too perfectionist about future products. those are legitimate things to be concerned about, but not demand. ben kahlo, good to see you. >> happy anniversary. >> no one believed these gains would last at the open. stocks still up 6%, why? >> i think one part sentiment going into the quarter. i think it's up off that nasty septemberment. better than expected results. number two, demand you played from elon has been the biggest bear argument on tesla. they knocked that out of the way. number three, they talked about ramping production. they had problems in the quarter. we feel comfortable about them ramping up production. elon we trust. the market gives him credit for what he does. >> some on the street are arguing if it doesn't fall below

200 the next couple of weeks, it may not do that for a while. do you think that is a reasonable view? >> i think there could be volatility over the next couple of months. we recommend picking your spots there. i don't see it going below 200 at least over the next 12 months. >> ben, there's been some debate whether this company is going to have to go out and raise capital to fund all of its ambitious projects. elon musk played that down last night. do you think that the company is going to have to go out? >> definitely. timing is key. i don't think they have to raise money the next 12, 18 months. as they want to build a mass market car the model 3, they need to raise more capital for working capital. >> we always come back to this discussion. if tesla is on to something so great, where are the big automakers, why aren't they following suit, why aren't they chasing him?

do they not believe this is where technology will go? >> we are starting to see some movement. obviously, bmw is probably the furthest ahead but laggi inging tesla. audi is making some move. tesla's success is forcing these guys to wake up. they are a few years behind still though. >> do you believe $50,000 is a reasonable expectation for 2015? >> for the model s. a couple thousand more in our numbers for the model x. i think they can ramp production faster. 2015 will be a strong year. >> musk on the one hand, he tries to rein in expectations on the stock price when he says it's somewhat overvalued, but he still has this reputation for promising the stars. do you think there's underappreciated execution risk or not?

>> he has to set the bar high and get people to believe in that to reach those goals. that's what he is doing here. he shoots straight and reins in expectations when they need to be reined in. see what you that last night. i think he tells it how he sees it. >> we'll see what happens. fascinating story to watch. >> thanks for having me on. up next on the program, priceline hurting this week after quarterly results contained a warning on future turbulence thanks to europe. hear what the ceo has to say about the quarter and what really lies ahead. we speak to him exclusively when "squawk on the street" returns. sheila! you see this ball control? you see this right? it's 80% confidence and 64% knee brace. that's more... shh... i know that's more than 100%. but that's what winners give. now bicycle kick your old 401(k) into an ira. i know, i know. listen, just get td ameritrade's rollover consultants

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welcome back to "squawk on the street." shares of generac holdings, stock moving lower after weaker than expected results blaming power outages in the country. sales for the full year will decline to the mid single digit range in heavy trading. shares down about 8% though off their session lows. back to you. >> thank you. it's been a rough week for investors in priceline. the ceo's decision to warn the

market growth will slow next quarter sent the stock down 9%, wiping $5.5 billion from its market cap. this morning we caught up with darren huston in dublin to ask him why in a cnbc exclusive interview. >> we are proud of the third quarter. we exceeded expectations across the board. high 20% growth top line and bottom line. was the biggest quarter in priceline group's history. our biggest quarter during the year. as we guided towards q-4 probably the biggest issue is the euro exchange rate. that is something we can't control. most of our money is earned overseas. the dollar has been strong. we wanted to be prudent in the way we look at the upcoming season as we always are each quarter. that's part of our we like to keep a track record of overdelivering to investors.

this was another one of those quarters. >> darren, you seem to have the analysts with you that the structural growth story of the business is intact. it's just external forces. if you read what your cfo said, begin you're the largest player in online travel, "we look at it as the law of large numbers, so generally we expect the business to decelerate given the sight of it." that would suggest you have a more fundamental problem you need to tackle. >> i don't think at all. the business is fundamentally sound. we'll do over $50 billion in transactions this year. growing at the speed we are growing is amazing and phenomenal. we are always fighting large numbers. we groomed more on an absolute basis than any history in the company. we are getting bigger, but the fundamental business is very strong.

every market we are in we are taking market share across the board. all six businesses in the priceline group are growing successful. they are becoming big brands each in their own right. we couldn't be happier about where we are today. >> you guys have hundreds of people bidding realtime to get your inventory up on platforms like google. good news for shareholders this quarter, you say you're less dependent on google because more of the business is coming to your brands directly. can you quantify the amount of money you are spending to get booking.com in this country and the united states against the money you spend with google? >> i think it's really important to state google is an extremely important partner. the group across all of our brands. we work very closely with them. it happens they are not growing as fast as a group. we end up having to look for

more and different sources of demand. we are constantly looking at the metasearch engines, but building direct demand ourselves. we have done more what we call offline brand building marketing. that is a small percentage of the total marketing we do as a company. we feel good success. our brantds are getting stronger. our direct business is growing at a good pace. we have to be smart about that. this is not a strategy to try to diversify off google. it's more to continue to grow. we need to find more demand. google is facing its own growth issues. the business is becoming more and more mobile. as a company that is looking for more customers around the world, we have to also adjust our model to be able to participate in all those markets. >> this is a big day for us at cnbc. the next 25 have been named. we have a big gala dinner

tonight which you'll be mentioned. we are grateful to have you on the network as a member of the next 25. you are in dublin laying out the vision thing how to thrive on the internet today and tomorrow. can you tell us what you said on the platform today? >> yeah, thanks, simon. i feel like an old guy and i'm 48 years old. it's amazing how the internet is transforming. i was around in the days of the big bubble and all that bursting and all the gimmicky things being done. we've been building out the scaled internet. people have scale can win. scales and transaction, very retail oriented, et cetera. i share with people with the advent of mobile and things becoming more local, this next wave of the internet is all about bringing technology into local marketplaces and taking friction doing business around the world. >> he is doing business around the world.

darren huston, ceo and president of priceline. don't miss our coverage tonight of cnbc's next 25, a gala dinner starting at 6:00 p.m. eastern hosted by jim cramer. darren huston, among others, will be honored. carl will be hosting a lot of the evening. howard schultz, martha stewart. it's star-studded in business terms. >> we'll all be there. great interview. the best performing stock in the s&p 500 over the last year, but many investors are still skeptical. get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪

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detail about what was going on between allergan and actavis. there was a filing that included language by the approach made by a particular company assumed to be actavis. this morning that is updated to say there are discussions between us and that party that have continued, and may lead to negotiations. we cannot provide assurance on the outcome of these discussions on transactions we have not announced. it is actavis they are talking about. they are talking about a merger transaction. that updated language. forced by the s.e.c. what is the difference? you can talk about due diligence, overall sense of your two companies together, but you aren't talking dollars and cents. that seems to be where they are at this point. if these discussions were to go by the wayside, it would not force them to give any

additional disclosure. it sets up the acquisition of allergan. actavis has been aquisitive company. perhaps not delivering on the synergies in 2015 it promised. could it compete on price? it does appear el kwan would be much more willing to do a deal with actavis. more as we go along. when we come back, whole foods seeing big gains. what should you be doing with the stock, up 10% today. ♪ there's confidence...

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welcome back. i'm reporting from the nymex. the department of energy out with its weekly storage report. we have a build of 91 billion cubic feet, higher than most traders were expecting. prices are going down. trading at $4.13 right now. nat gas up about 10% since we hit the lows of week. traders have been bidding up

this trade as they are expecting colder weather. you have the december contract on the table right now funds interested in that gas have been buying it. 91 billion cubic feet more than twice the tomorrow. back to you. >> i hope it's a good one. jacq. cbs reporting earnings after the bell better than for renew between cbs and dish. i asked, negotiating? >> charlie and i met yesterday deal. our deal is up november 20th. i think we are making progress. we'll see. they're currently, obviously dark with some of the time

we have said to them, look, we don't want to be dark but we want to be paid appropria and a afraid to five. i'd rather be a lover than fighte the past, most notably the fight they won with time warner cable some time ago. also rolling out a new streaming service, over the top service by cbs called all access. i asked whether in fact this is a competitive product with the s revenue. that being his cable partners? >> the idea of cbs all access is to be additive to to go around our cable or satellite partners at all. homes that have broadband only. they don't have cable or satellite, but they want cbs content. you go on a college campus today. there aren't very many lot of

computers and ipads that will now be able to get live linear feed of video on-demand content, the best out there this is additive to who we already are. we expect it to grow a lot the next few years. >> right now something that is not growing and has notcbs' sto down over 2%. he did not really reflect the fears out there of this continued slowdown in advertising. scatter market to pick up and is picking up. >> do we have any idea what the price might be if they go over the top? >> $5.99 is the all-access. >> they are also launching their streaming news service live rig. watching some of it today. running a fair amount of tape. retrospective on "face the

nation" anniversary. >> a lot of content. is that a platform for advertising yet? >> it may be. they've been working on that digital time. >> thanks, david. meantime, whole foods jumping this morning. the stock up 10%. beat expectations by 3 cents a share with profits 35 has a neutral rating on whole foods but upped his price target to $38 from $37. good morning, chuck. >> good morning. >> theto is you have these forewarnings over the past year. now you have profit rising 5%, 8%. same-stare sales up 4.6%. is this move to cut prices and attract more customers into the stores and spending gaining traction? is this a turning point for val

walmart are getting into the space? presumably over time, the economies of scale will drive those prices down. there will be deflation on margins. >> that's why we are staying neutral. you look at gross margins around 35%. if you compare them to sprouts at 30% or kroger ar10%, 11%, ito see how margit food stay at this lechlt one way they stay there if they continue to fund that price investment. to us there is a lot of uncertainty around that. one of the main reasons we are staying neutral on the stock here. >> speaking of those expenses, they made a big point of store refreshes, pointed to the store in indianapolis where comps were dramatically improved once they spent money making it worrisome expense standpoint? >> total$9 million

per store. it's beyond anybody in the space. clearly the shopping experience at whole foods warrants that. going forward, they will look to drive expenses down shifting more employees from full-time to part time. they'll look to converge store expenses. we think improve their expense structure over time to fund that price investment. we'll continue to wait and see howunfolds. >> kroger has a simple truth brand. they can bring down the price on that. walmart undercuts everybody's price. even with the price cuts at whole foods, isn't it still more expensive t big grocers? >> yeah. and if you throw in costco with their kirkland signature brand, you've got a lot of mp billion organic volume. it's about $2.5 billion in sales which isfoods business right no. they are going at it aggressively. you saw costco's number this

morning. it's an area of traffic, an area for them to get fairly valued. that's how we see things now. >> interesting. thanks for your time. >> thank you. sticking with the consumer here. we have a sexy consumer staple name to talk about. you think toilet paper, cereal, soft drinks, for the most they are struggling with consumer shifts in tastes. keurig green is the best performing stock. the top performer over the last 12 months, outperforming allergan. it has been defined with haters. david einhorn. yesterday he gave up on way called the unsuccessful short. his famous 100-page plus

presentation attacking the company back in 2011. now he is out of the trade. the full story on keurig. coke took a 16% stake to become the top shareholder. the company rolled out keurig at home. those brands are available in the machine, but there is a bigger story here. that is a technology company. one of the few, if not the only one in the befrns business which is incredibly boring. as goldman sachs calls it, a disruptive innovation story focused on single-serve coffee. keurig has hundreds of engineers in two innovation labs. working on 3.0, 4.0, the cold system which goldman says is a four to five times larger market than the hot system.

there are still skeptics. not every analyst has a buy rating. keurig lost a key patent in 2012 for the machine. perhaps that's part of the story here. this stock managed to outperform and this company managed to disrupt an industry where you are not seeing innovation or technology. >> the s.e.c. closed its investigation. that's a plus. the other thing is the technology basically ensured they kept their monopoly on the k-cups. it can see if it's not a genuine k-cup, if it's an imitation and the machine won't work. then they went to and said if you stock competitor stuff in your stores, custo>> a partner with them so consumers could have the coffee of their choice. do you have one at home?

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the markets are relatively flat. take a look at the utility sector. one of the pe s&p today after recent strongga >> remember those dow utilities hit a record high yesterday. today the worst performing sector in the s&p. it has been the hottest for a while. that would be the utility sector. investors booking profits from the sector's recent run-up. about 14% or so over the last three months. amonglaggards, aes corporation and american electric power, wisconsin energy and ameren. utilities down by about nearly 1.8% on the day so far. s&p 500. the worst-performing back to you. >> thanks very much, dom. time to go to chicago. rick santelli has the santelli

exchange. >> good morning, sara and chris whalen. thank you for taking the time this ecb thursday morning. >> indeed. >> i look at what the write-ups were for the press conference. i watched as much as i could. i look up at the board. currency held on to its losses. 1.25 to 1.24. dax gained back and bund are down. what are the markets telling us about that press conference and mario draghi? >> there is nothing new here. europeans, japanese, the fed are running away from the problem which is if there is too much debt in europe, debt uncollectible and it's weighing on growth. easing money is the first step. the second step is restructure. the only germans who

are paying off public debt. you can't push up prices without that's the key problem. >> all very fascinating. you basically are saying that the problem here in make that l of a problem would be to find reasons for outsiders to buy more debt. >> that's right. >> which harkens back to a spot you did with kelly and sheila bair on closing bell i loved. giving a certain type of treatment to treasuries, creating maybe a big aisle of new buyers. why don't you explain that? >> what's happening obviously, the fed stopped their purchases of forcing banks to hold government paper for liquidity. they point to the crisis and say

it was driven by a liquidity run, which is true. isn't it interesting that we are causing banks to double and treble their holders of government debt at a time when an irresponsible fashion. the whole post war, iwar ii str the idea government debt is the best quality of all t behave. if they don't behave, you start to undermine the whole financia. i think to me the public sector is where the next crisis is going to be because that's where there is no capital. that's where there is no fiscal discipline. spain is finally moving in the for these debts that are uncollectible. there is no point pretending that they're good. >> in the final few seconds we have, i notice there seems to be protests throughout europe. in particular, approval ratings are down 13%. this is a political disaster

trying to get this in order when the populous is looking at what's going on. your final comment? >> they want jobs. there is this notion among economists europeans are willing to tolerate high unemployment rates. that's wrong. they need jobs. if we don't turn things around, if we don't focus on policies that are going to really stoke growth, we'll have political issues. we've seen this movie before, right? >> yes, we have. one final thought i'm going to throw in, if you want to expandn create jobs you don't want your money hunkered down in treasuries. you want it to go into economies. >> that's right. >> there you go. sarah, carl back to you. >> thank you rick. when we come back. why small business are saying no thanks to apple pay and other mobile payment systems. after the break. will that be all, sir?

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the street. shares of kate spade t women's handbag and fashion retailer, moving sharply higher after met earnings forecasts and gross margins increased. sales rising 30% last quarter as it bucked trends. as a result it rised guidance for the full year and shares up by 18% carl as a result. a lot more north american females are buying kate spade hand bags. >> sitting right next to one. >> yeah they make beautiful clothes too. >> in the meantime rite aid and cvs announcing they are blocking apple pay, and small business owners are jumping on that band wagon as well. >> it is not just the big retailers. a new report finds small businesses aren't into the service either. new tech business services asked more than 1,000 if they will upgrade to accept apple's mobile wallet belong with google pay

and contactless payment systems and 93% said not. and 83% of small businesses say they are not currently able to accept nfc payments. this technology is new and many small businesses don't understand it. new tech president barry sloane says nothing personal against apple or google but small retailers think it is an expensive hassle to upgrade. but timing is everything. they may have to update any way to accept credit cards with chips. and if they don't the burden shifts to the retailer who doesn't enable the chip attractions. but mobile wallets are coming whether small businesses like it or not. square tells cnbc while it

doesn't collect small business specific data millions of businesses of all sizes use the service. >> lot of changes coming in mobile payments. it is a race to see whose going to control it. thanks kate rodgers. >> over to jon fortt with a look at what's next on "squawk alley." >> well we got a great show coming up. tumblr ceo is going to be with us. and maybe we'll find out when tumblr might start making real money. and zillow ceo. and kara swisher, is one and only is braving her way through new york traffic to get here to post nine. coming up in "squawk alley."

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tweet us your prediction for the handles report.

twe tweet@squawkalle @squauk street number. economists are expecting a gain of 233,000 jobs for the month. that would be a pretty good number. and we had pretty good jobless claims numbers this morning. >> good morning, it is 8:00 a.m. in palo alto california, 11:00 a.m. here on wall street. "squawk alley" is live. ♪ welcome that "squawk alley."

jon fortt, kayla tausche. kara swisher is going to join us onset for the hour. a lot to get to on a day