you're not getting income and you probably won't get capital preeviation. >> good to have you on. >> one down, four to go this week. monday's gone, right. >> is that how you look at it? >> it's a pleasure being here. >> i look at it as an honor and a privilege every day. >> happy monday. >> thank you. chan thanks, charles. join us tomorrow. "squawk on the street" is next. ♪ good monday morning. welcome to squawk on the streept i'm carl quintanilla with jim cramer and david faber is in china, where he will talk to alibaba executive chairman jack ma tomorrow. we'll check in with david in a bit. we kick off the week with markets at record highs, the s&p and dow, best three-week performance in three years. futures up as we prep for a big week of retail earnings. ten-year yields down to 2.37 crude oil trying to make a climb back to 80. nat gas up 11% last week, as we

see extremely cold weather hit the country this week. road map begins with markets trading in record territory. investors eyeing retailers, many set to report earnings this week. speaking of retail, what is the biggest day in e-commerce around the world, singles day is tomorrow, alibaba could rake in $8 billion in one day. we'll go live to china. mcdonald's october sales down, key figures across the board but better than what the street was expecting. u.s. stock markets aiming to extend their weekly winning streak to four. the dow and s&p each hitting new record, closing high on friday, despite the jobs number coming in below expectations. this week, investors bracing for a number of earnings reports from likes of walmart, macy's, jcpenney, retail sales, abactual number friday, with a lot of fed speak. >> alibaba is the focus. i'm glad david's over there this is a stock, you're also buying yahoo! how brilliant marissa mayer held back, more than 120

million shares from the ipo, this is a stock that has captured america's fancy, in part, we didn't follow singles day beforehand. this is 11/11. singles day equal to day one on this alibaba, it's equal to bigger than the entire cyberweek here. so you're talking about a company that's dominant and yahoo! remains a great way to play it. >> you've been saying, i think consistently for a while -- well, you didn't like baba above 90. now you say 120. >> yeah, lucky enough to break -- you say split hairs, wanted 82, traded down to 84, but i've been use 120 target because that's where it's equivalent to facebook. you get superior growth and profitability to facebook but it's the same multiple as facebook. we've got to relook. post-singles day it's a letdown. >> by the way, single biggest online shopping day in the world kicks off in just a few hours in china.

alibaba looking to break online sales records. david, as we said, live at alibaba headquarters for the big event if he can hear us. david, good morning to you. >> good morning, guys. yeah, pardon my right hand over my ears. there's presentations going on that are fairly loud. i can hear you fairly well, as well. they're all leading up, of course, until midnight here when singles day begins. the what is it '09 when it first started. it's the sixth singles day they've had since alibaba basically started the holiday, if you will, started the tradition of giving yourself a gift if you're single, or if you're anybody else. steep discounts available on its two main platforms, those be t-mall at higher-end merchants and millions of merchants on tabow. 137,000 participate. last year amounted to $5.8

billion in gross merchandise value and this year, as you said, carl, the outset of the broadcast, may be as much as $8 billion. not only increased what they're doing domestically in china, but try to bring the idea of 11/11 around the world. it's interesting, we spoke earlier today with a handbag maker that sells on t-mall and they expect to do 20% of online sales on this one day. as well, you have a huge downdraft in traffic online at all in anticipation. shoppers know the day's coming, so they don't go online in the days before they're able to get those very large discounts which can be 50%, 60% on certain items. 150 million packages were shipped last year, as a result of singles day. again, logistically, the challenge will be an interesting one for alibaba and all of its partners. remember, it owns 48% of china logistics but it doesn't own any of its distributors outright. it's not in the business of distributing packages, of

holding inventory, selling direct or competing with merchants on its platform. very different business model than amazon. one, of course, jim, as you mentioned reward since it went public of 68 six weeks ago, $280 billion market value. when i heard carl mention walmart earnings, i thought it's incredible, this company is marriag larger in market cap than walmart. it's approaching well over $300 billion that will be sold off of its platform this year. >> david, great that you're over there. you're going to be interviewing jack ma. what i'm trying to figure out with the stomach moving is, is there a dramatic drop-off in sales historically after singles day? most wonderful time of the year and december 26th, you just stop buying because if that's the case, alibaba, about 120, where i expect it to be tomorrow, might be place to trim.

is selling season over november 12th? >> there's no doubt, jim, there's a huge decrease before and obviously the day, again, to put in perspective, sold $5.8 billion last year, they did 297 billion for the year. that gives you a sense as to the importance of the day for the business. yes, things -- they expect them to fall off. the same time, bring more and more traffic to the site and therefore generate a lot more revenue overall. that's part of the success here that they're trying to at least redouble each year. and so it's not clear how much they will fall off. certainly they will, but again talking about a company that increased what was it, by over 49% when we got the quarterly numbers last week from the company. that's expected to continue through this year. mobile, of course, becoming a much more important part of their overall platform with, what, 35.8% of people buying, using a mobile phone to do so.

we'll see, i think it will be important to judge how this day does. we'll start getting numbers at midnight in the middle of of the screen in terms of dollar numbers how much is being sold right up to the second. >> david everybody can't wait. it's a great day today and tomorrow. david faber, we'll talk to jack ma of alibaba tomorrow. david, we'll check in with you later. in terms of retail, usa today, falling gas prices pump up consumer spending. average price of gas has not had an up day since september 24th. >> extraordinary. it's not like oil's gone down in a straight line. oil's very low. this is a week where the retailers have to talk about two things in the future, not the past. that it's possible we're going to see a lot of disposable income coming forward. this is when i feel like has been driving walmart. second, the polar vortex, if we can get a combination of cold weather, therefore, removing

inventory overhang that a lot of the guys brought in -- >> for fall. >> for fall and we get the lower gasoline, they can say, look, our quarter wasn't so hot but you know what the future looks bright. if you sell it on the previous quarter, you may get bush whacked going ahead. >> favorite names in the space? looking at discounters? we know about those general deflation in apparel. >> right. charitable trust owns macy's. ma walmart higher. but you know what? if they have this, coats, h high-end stuff, burlington coat factory could be good. uggs, they have needed cold weather. they said the weather does matter, if it's just stays warm, brady as a buy, that hurts them, brady's the spokesman. >> there are land mines out there abercrombie cut, back to

neutral. stevele upgraded it on the hopes maybe a turnaround there. we know after last week that's not the case. >> you can't own teen apparel. one of the themes has been, mall stores are doing badly but then l brands -- barclays saying you can't own soft goods. what i'm looking for is a discounters doing better, expectations low for target, walmart. i also think -- don't forget home depots come in, that's not associated with gasoline but it should be and it certainly associated with cold weather given the fact their inventory's geared toward winter. >> good point. the other interesting story is that investigators are looking into october 15th, date we sat here and watched the treasury market go through ridiculous volatility. we asked lloyd blankfein about that day a couple of days after the fact. here's what lloyd said at the time. >> there's el mentes in the

market start too look like elements of the equities market where automatic auditors are put in, you get gappy kind of moves and we're seeing that in the treasury market compared to a -- you know, ironically, maybe less efficient in some ways, but often more orderly market where dealers with a sense of responsibility to their clients stand in smooth out the flows. that's an element that also, in other words, sociology of the market has moved not just the regulation or -- and maybe they're related. >> now, two, three, steady over the past week. >> there was a criminal investigation a long time ago into someone knowing in advance the government was going to get rid of 30-year -- boy it seemed like this is like that. just it was the government went after the people who got the -- got a couple of seconds advance on the 30-year going away, government put people in jail. it was criminal prosecution.

shocked people there hard to move $12 trillion market. >> it can happen. it can happen. if you have enough of a head start, they'll go for it. >> when we come back, new numbers from mcdonald's show the fast food chain can't shake its sales slump. >> i like these numbers. >> why are shares of the dow component rising this morning? we'll fill you in. also a different type of organic growth. share of whitewave foods up 80% in the past 12 months. we'll talk with greg engels, ceo, later this hour. another look at market. s&p has not had a losing streak longer than three days all year long. we'll see what kind of action we get when we start this session in a few minutes. ♪

♪ mcdonald's reporting a drop in same-store sales across the board in october, including global comps down a half percent, u.s. down 1%. sales, though, not as weak as street expecting. when compared to september, u.s. down 4.1 global down 3.8, numbers investors would prefer. >> my charitable trust bought a lot when it got killed because the management, remember, thompson's putting through new people. clearly there's an emergency

there. could it the beginning of a turn? obviously, natural organic we talked about to gregg engles for whitewave, they are against the natural, but numbers, someone could say, this is the beginning of a trend because good managements come by, they've done good stuff. >> in the comments, thompson says wreeshg moving with a sense of urgency. so you -- are you loading up on mcd? >> no, bought a lot i couldn't believe that -- i either felt that thompson gets it right or the board says enough. if tompson put big changes in, we're all pulling for thompson because thompson got a hand so high it was hard to beat. >> when jim skinner retired? >> yeah. everything was systems go and then we got hit, like the sea change went on about natural organic. it would be great if the change his put in personnel changes, u.s. personnel changes are starting to take hold because this is a dow laggard that could go quickly because it's so

inexpensive. >> 3% yield, down 2% for the year. >> balance sheets so fabulous, lots different levers to pull. every one of the markets looks good. >> yum, pizza hut, did you see, expanding menu? some of the sauces, sweet sriracha, barbecue bacon cheese burger, curry crust. pizza hut took a big step, live november 19th. >> that was a division that people didn't care about, they only cared about kfc and china. so therefore, people took their eye off the ball. the stock has stopped going down in part, china's more benign. i don't know about switch my domino's pattern, like the app. >> you like the technology. share of gilead rising. merck's attempt to shorten hep c treatment to four weeks came

nowhere near the desired efficacy. >> up 5%? >> could go to 115 on this. this is big, because there's a couple of competitors out there lurking. gilead is -- they're on fire. >> mirra raised target to 152, dividend could be on the way in 2016. >> they have a lot of cash. plenty of interesting, smaller biotechs out there for merck just so we're clear, my charitable trust owns that for other reasons. very big drugs in the pike. if you're selling stock, be careful. these are -- some of these -- this bristol-myers, some older line companies have more game than you think. but gilead is doing a lot right, celgene is doing a lot right. regeneron, and argala, regeneron. >> dendreon, filing for chapter

11. >> a situation where retail investors became fascinate the with the drug provenge and it didn't work. it didn't price work. you have to recognize whether the diet pill, something that is just kind of looks like it's the magic bullet for the diseases, there are no magic bullets other than gilead's hep c. it cures. >> 180 million people around the world? >> it's been one of the things where the insurance companies are praying for alternative. they just keep thinking, if we can pit gilead against someone, if we can make it gilead doesn't have a monopoly, but a lot of the guys, listen, we're not paying but it's hard not to pay for a cure. it's a fatal disease. >> it is. meg tirrell, by the way, in boston, we might hear from her lateren on cramer's mad dash. one more look at the premarket

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♪ we begin to rock steady >> just about eight minutes before the bell on this month. cramers "mad dash." gopro is under pressure. >> i've been waiting for the secondary. we -- a lot of people thought it was not going to happen until the middle of december, late december. 800 million of stock coming for

sale, the giant short squeeze, it's thought the shorts would cover. this will boost liquidity insiders. the quart was great, i think the holiday season's going to be great. selling through to china's going to be great. i would like to use this -- i had taken it off at 90 as a stock i love. this when i saw the boar and go ride option the surfboard, enough is enough. you want to buy on the secondary. >> what level this is going to get interesting? >> right here. i don't think the deal's priced that much through. short's, it's a monster short squeeze. it's the product of the holiday season. people who fight it have never use tpd got to use the ecosystem. so exciting. >> they did not list either an offer price or number of shares. >> new yoo, just 800 million. waiting for this, waiting for this after having it gone to 90. i think the holiday season's a

great one for gopro. >> toll brothers. >> toll brothers is good, this is a prerelease. i've got to tell you this, pulte home upgrade, inspires me to buy horton, horton reports tomorrow. america's largest home builder. home builder chart excellent. if you're looking for a catch up group, this might be the one. >> interesting. in a period where we have a feeling rates might be lower for longer than we think? >> yes. and i think the that mortgage politics are good refis are better. what's mattered to the group, people are desperate for something that hasn't gone up. talking about numbers about the rally, how few days there have been. people are looking for something to hold on to. home builders make sense. >> and the toll is a high-end product. >> toll, the contract price went up, talking about low 700s. bob toll delivers once again. i think this company is the most inexpensive in the group, but don't forget, horton tomorrow.

horton has not done that well. i think they could have good things to say, too, about orders. >> the market right now, feeling your temperature? >> i think you have this rolling bull market going ever since that we were able to take ebola off the table. people are saying earns weren't good this quarter. i think that's a kinnard. what matters is the future. and gasoline controls. some people you, had some numbers about disposable income and the not as well off and how much went to gasoline. >> 13% for the bottom fifth of american earnings goes to gas. >> those people, whether it be dollar stores, walmart, target, walmart dow stock, whether it be mcdonald's, disposable income on the table and there's cold weather coming. cold weather is answer to retail. last week it was 50 degrees at night. we get the cold weather, people say i've got to buy uggs. >> kid needs a new coat. yes. >> revenue right there. we'll get the opening bell in a couple of minutes. do not go away. 'wóóñt

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of fed speak, but mostly it will be about retail and taking the consumer's temperature, jim. earnings, macy's, jcpenney, walmart, with retail sales on friday, we mentioned low gas prices. you think the cold weather plus gas price decline? >> yes, i do. what you -- having grown up in a retail environment -- >> as you have. >> if you have that warm weather and it go through to thanksgiving and these guys are caught and they have start discounting heavily, it's not too late to get the cold weather. i'm keen on that because the combination is so, so buoyant for retailers. also, the election, i lot of people felt there would be a spirit of compromise. when i watched the president this weekend i felt he's not bulging. that's okay because it means that nothing will happen. i know that's a cynical view but a view which says, if we don't have to get washington the business pages we're free to talk about earnings, disposable

income story with gasoline and cold weather will put a lot of emphasis going to the mall, which has been a problem. the mall numbers have been weak. people will flee to it. >> some discussion on "squawk" whether the dollar's due for a pullbakken riding a three-week win streak. a lot of speculative positioning in the dollar. >> even though the miners have increased amount -- miners have been insane. they don't stop. it's like china's going to move. oil is so clearly depressed, and a lot of people ask me, does oil go to 80 before 70? cold weather helps nat gas, nat gas the hottest it's been since 2000, straight up, that's polar vortex. i believe oil will try to test lower and not succeed through that level. >> really? >> things are breaking for oil if we get the dollar to

stabilize. >> keep our eye on that, as oil has not been able to get back above 8 on still in the 79s this morning. opening bell at nyse. s&p 500 at the top of the screen. here at big board, st. jude's children's research hospital, highlighting fund-raising event and over at nasdaq, inc research, provider of clinical development services for the biopharma and medical device industry, celebrating its recent ipo. we have not done fireeye. jm morgan adding. >> fireeye, number was good. obviously, cyberterrorism very much in everybody's mind. if you go over the conference call, what you saw was a company that united statwas conservativ outlook. money will go toward the buy. i like cyberarc, palo alto's gotten too high. >> target, stifel takes it to a

buy, channel checks traffic. >> when i sit down with a company i'm impressed about a sense of urgent sip the stock has lagged. i think they're omni channel strategy is good. i want to see a couple of quarts of brian cornell. the stock's very inexpensive. if you think cornell can execute -- >> unknown commodity. >> come from pepsico. no one thinks pepsico isn't a great training ground. but sap's club, nice man. can he make changes in target? sure has to. i like his sense that, look, i knee what we're doing before is not good enough. articulate about a strategy going forward? no. not to my satisfaction. but that may be irrelevant given gasoline and cold weather. >> transocean finally did have earnings they delayed last week. that's a big gainer today, 2%. >> now this is one -- this stock

dropped as far as it was going to go, i think. when they reported that -- when they preannounced the gigantic, gigantic charges, what was incredible, the stock went down and rallied, down two bucks and rallied and finished off a little bit. people thinking think is the end of the big sell-off in the oil drillers that are offshore. i'm unwilling to make that call, if only because rig is -- rig's not that great. it's just not a great company. again, if oil goes above 80, rig's okay. rig needs higher prices because -- >> but you're not confident -- >> no, i think -- the permian is five times what is producing just a couple of years ago. saudis have not pulled back. a lot of people, if they don't raise oil venezuela will collapse. the leader has ha political issue. i think oil's not going to soar but not go down much. >> norfolk, a big gainer.

>> warren buffett, we know stole burlington northern. norfolk is a great gauge, does have a lot of coal, people feel that with natural gas going this high switching to coal. fantastic for norfolk southern. >> nat gas as we mentioned -- >> understand -- >> it's the high in denver on wednesday, 19 degrees. >> i've got to tell you, natural gas companies are laying off like mad, selling futures like mad. to lock in some gains and therefore help balance sheet. the whole idea that all of this complex is going under. there are guys weaker. but i don't think that it's the death knell for the oil surface and oil groups as the stocks are acting. >> nike did get a price target upgrade, not moving a ton. >> if are you want cold weather gear, go back to the man we

talked to and met, you were the emcee of the fantastic gala, 25th, i have to tell you, under armour is set up for a gigantic holiday season. kevin plank, kevin plank, you kn he -- he's a bare nuclearings guy. he didn't have many good things to say about nike. >> no, or anyone they compete with. >> mastercard, not a lot of good things to say about visa. this is like the nfc, you know, afc -- i was going to say nfc -- even the cowboys are gentle menially compared to the really rival in afc -- plank hates nike. i mean, it's so visceral that i think -- i thought you were going to intervene and say, nike guys -- mark's not that bad a guy. i think there's a t and p attitude, take no prisoners. >> the president's making comments on net neutrality which we'll get to. first up, sifma hosting its

annual meeting in new york. mary thompson has the chair, mary jo white. >> delighted too have mary jo white, chair of the sec, joining us. first, an opinion piece critical of the sec in "the new york times" earlier this summer saying it's sluggish and ineffective. people were disappoint because you're a hard charging prosecutor and expecting a more aggressive s.e.c. how do you respond? >> first, i say, look at the facts in terms of what we've done in the first instance, which since i've been chair in april of 2013, we've been firing on all cylinders very strong, effective, rule making. i think over 25 significant dodd frank and other financial crisis rule makings have been done. we've proposed or adopted essentially all of the jobs rule makings. enforcement enhanced a record year last year over $4 billion

in civil penalties and innovative cutting-edge access. looking at core programs, the market structure in equity and fixed income. effectiveness, the disclosure effectiveness review. making great use of technology. criticism comes with territory in washington. and i think that some of what you hear is people feel differently about our rules, often. but what you're seeing is i think criticism of a strong regulator, strong leader. listen to the crit sfrp, be constructive but you can't lead or regulate to criticism. you do what you think's best for investors and best for the markets and that's certainly what i and the s.e.c. is doing. >> there was an article this weekend saying why hasn't the s.e.c. written rules on mandated by dodd/frank on executive compensation with regards to claw backs. when can we expect that? >> yes, we were given a dozen

mandated rule makings, we've adopted six, proposed three others, some jointly with other agencies and we have three or four yet to finish which includes the clawbacks. important rule making. it's not as simple to do, which is often the case with rule makings as it might look like at first blush but important to get done. since there are eight priority areas as i define it aunds dodd/frank, executive compensation and swaps are ones to yet to finish, the rest were done. so i'm pleased with that progress. but also focused on finishing those rules. >> you closed up fiscal year recently. what are top three priorities for the new fiscal year? >> again i think we need to complete our mandated rule makings under dodd/frank and jobs act or work on doing that. very focused on the comprehensive review of market structure, equity and fixed income markets, continuing the disclosure effectiveness review

and making progress there. always focused on making enforcement, even stronger than it is. but lots of priorities going forward and i think we're doing them in the right order and very well. >> anything specific you can tell us to look for in the next section months, as far as market structure, whether equities or bonds? >> i think you've seen some things already happen. i spoke in new york, in the late summer about both as to fixed income and equity area in terms of near-term initiatives and far term, you know, respect to the fixed income markets, working closely with msrb and finra. msrb has put out its best execution rule, which is very important for comment. it's with the s.e.c. staff. i expect to see finra after that adopted working closely together to give guidance to brokers how to best execute and what it means, you know. clearly down the road we're looking at pretrade

transparency. number of near-term measures that i publicly talked been ots equity side have either been done now or in the process of being done. one comes to mind, ask the exchanges to do a real comprehensive audit of their order types which is related to the conflict of interest issues that people have been focused on they've completed those, the staff at s.e.c. is reviewing them. also expecting some of the rule makings that i indicated that i'd asked the staff to come in this year and beginning of next. >> just about a minute left. i have two questions. first one has to be answered quickly. first thing a change in congress. the relationship with the s.e.c. has been contentious in the past. how does the change with the republican control in the house and senate impact you? >> i found our relationship with congress to be quite good since i've been there as chair. i don't expect a change in that. i'm -- i welcome the oversight rule. it's congress' job to do that.

you have a lot of experts in congress in the security space, so i look forward to progress and a continued, good relationship. >> next question, president obama has nominated loretta lynch, she works for you at one point what happen can you tell viewers about her? >> excellent. a prosecutor's prosecutor. has a strong, moral compass to do the right thing, very good with working with people, managing people, excellent choice. >> chair white, thank you for joining us. >> thank you, enjoyed it. >> mary jo white, chair of the s.e.c. back to you. >> mary thompson. bob pisani on the floor with the dow flat. >> a mixed open, carl. thanks very much. great overnight session in china as well as hong kong. shanghai up over 2%. announced a date for the formal linkage between shanghai and hong kong stock exchanges, that's november 17th. you'll be able to trade most of the shanghai stocks.

a lot dual lists but state-owned enterprises. small companies you can't trade. you'll be able to link in to them through the hong kong exchange beginning november 17th. that's a big change. number of companies that nobody's traded before, essentially are going to become available. we'll talk more about that as we get closer to that. toll brothers, i think toll brors were good enough, orders up 10%, below expectations but revenues stronger. on a dollar level, orders were pretty good. i think it's good enough, up 3%. transocean, transocean reported earnings above expectation but was, remember, on friday they announced $2.6 billion write-down, value of the rigs are left because day rates are down. that's was a way to bifurcate everything. today they said, this quarter we finished better than expected. friday's news is more important but you see transocean on the upside. waiting for retailers this week. muted expectations. remember for walmart they made

$1.14 this quarter last year. this year they're only going to make $1.12. they're lower than last year. and same-store sales flat. nobody's expecting much from walmart. slightly better for jcpenney. last year, horrible, they lost $1.81. now they'll lose, the estimate, 81 cents. they'll cut losses by 60%. that's good. but still a long way to go. you can see, jcpenney down about 5% today here. i want to point out, overall earnings now, not only are they at record levels, we're at up almost 9% from the third quarter but margins at record levels. people don't talk about this enough. everybody's afraid margins are slipping. i'm not seeing that, 9.7% for the s&p 500. ten-year average 8.5%. everybody said margins will fall apart, that's the beginning of the end. as of now, not seeing that. let me talk about the earnings and the gainers and losers. dean food doing well, up 12%.

kellogg on the flat side. barron's positive on it over the weekend. juniper networks disappointment. at&t talked about cap x budget and that was on the disappointing side. obviously a major customer of juniper. right now the dow down 12 points. >> thank you very much, bob pisani. notes out of the white house this morning the president's making astatement on net neutrality. if you cover media, you understand some of this. arguing the s.e.c. rules, to protect net neutrality, prohibiting paid prioritization. and reclassifying broadband consumer service to regulate like a -- >> netflix, the quarter not overwhelming but, wow, you know, that's what people had been most fearing, the buffering, netflix, buffering. so that does help them. that's the easier play.

i would never recommend people get rid of the cable stocks because they did well. >> we'll see if the commissioners hooeds what tcommr s heed what the president's saying. rick santelli. >> good morning. a lot of people on the trading floor. a lot of traders on the trading floor. the "wall street journal" article, what happened october 15th? after watching a lot of football and junkie bear football yesterday, they call it offsides. i think that suffices, a lot of offsides players mid-october. if you look at one-day, look likes interest rates pop back, as we came to our time zone. no. if you look at two-day, it says the whole story. post nonfarm, pretty much all of the top tiered economy, markets moved the same, rates lower. foreign exchange, dollar giving up ground. every futures contract against the dollar marginally higher.

ten-year rates towards sum, you can see what we did is we held the 2.35 closing basis. technically, it shouldn't be shocking that rates are back down, potentially, to test 2.25. if you look at two-day bunds, similar dynamic. yield curve, the flattest it's been on 5s to 30s, going back to early 2009. we need to continue to monitor that. it's been a dynamic all year, along with flatter curve, lower rates. if you look at dollar/yen since october, it's a breathtaking move. and that isn't even the whole thing. basically from 105 to 115. although we see the dollar giving back. today the same said for the euro versus the dollar. we hoover around 124.5. it wasn't long ago we were at 139. about a month, it's truly impressive move that the dollar's had at weakness of many of the developed economy currencies. carl, back to you. >> rick, see you in a bit.

rick santelli. when we come back, exclusive interview with whitewave ceo gregg engles here at post nine. the company behind verizon organic, silk and land o lakes posting earnings. tomorrow, 10:00 a.m., david's interview with jack ma taking place in china. dow's down eight points. ok, if you're up there, i could use some help. smart sarah. seeking guidance. just like with your investments. that sets you apart. it does? it does. you're type e*.

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whitewave foods, wwav, the maker of silk almond milk, organic milk, earnings beat, helped by strong performance in north america but let's not rule out europe which is pretty good. you have something to talk about with that. joining us here post nine for cnbc exclusive is whitewave ceo gregg engles which has been a big winner for people. greg, i know that people are selling down the stock after it opened but, to me, it seems like that maybe it's just currency, conservative guidance. this was the highest organic growth of any package food company. >> 12% organic growth in the quarter tremendous.

50% operating income growth. categories are strong. european business has been phenomenal this year. we have 24% top line growth in europe which is unique, i think, in the marketplace today. >> but people are, i think trying to figure out holy cow, thought we had an american company. we have a euro translation you have to be aware of going forward. >> q4, two points of top line related to fx, right? you had euro and high 130s last year at q4. dow noun in 120s than will take steam out of the top line from a reported basis but organic basis, trend continues of high teens to 20% growth. >> one of the things that, carl, this man has been very conservative, that's very important, because i don't see in the release talk about china where because of the food chain they desperately need plant-based milk. >> i think plant base is a tremendous opportunity for us in china. we sell first products there in the first half of december, we'll have a launch, we're excited about what that holds for the future.

and if you see the same kind of trends in china and plant bases we have in north america and europe, it will be great for our shareholders. >> raw milk costs up 24 ye year-over-ye year-over-year? >> raw milk costs significant cost inflation for us in the u.s. they rolled over and started to come down. dean foods probably talked about this morning on their call. last month, start to be a significant drop in milk input costs. that will be good for everybody across the spectrum. >> now let me ask you about brand extension of verizon. a desperate bid to get growth, are you taking that space away from milk? >> we are doing terrific jockb x extending the horizon brands. my kids are all over the horizon brand, mom trusts it.

so we are taking that to meal occasions and snack occasions that are family and kid focused. we think that's got tremendous room to run. repeat purchase on that brand is terrific. >> momentum versus peyton manning. >> you know, i think we got peyton on the ropes, right? just consistency. but. >> maybe we can beat payton maybe they are new england. >> oh, that hurts, that is painful. >> we had whole foods on last week. thoughts on the retail channel and who owns that space in terms of your categories as some of the bigger, broader retailers try to get a piece of that pie. >> look, the whole consumer environment is moving towards better for you and health and wellness, everybody's going to play there. everybody has an effort there whole foods is a uniquely positioned retailer in that space, incredibly high quality,

seems like they've got momentum back, that's exciting for the overall category. >> best s&p name last week. >> they have technology, you are so right you've done right with kroger. but i like that whole foods. >> they're on the move again. >> they are. >> it's good for the whole category. a big sign. >> thanks. good to see you. gregg engles. we'll get stop trading with jim in a minute. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours.

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i'm just looking over the company bills.up? is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website.

don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business. it wasn't instantly visible, the hit that cable stocks are take on the president's comments about net neutrality. comcast, our parent, and time warner cable, both slapped to the tune of 5% to 6%, as the president said he wants fcc commissioners to sake steps to protect what they call net neutrality. >> i think it could matter. as i said, i know people feel it's self-serving because i work for comcast, but you know, all breaks in comcast stock has been a win. i think that the group is going to be fine. >> all right. what's on "mad" tonight? >> saluting veterans, one of my favorite live shows. 75 west point cadets coming in. i wish we had anthony nodo, cfo

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getting breaking news from the united states postal service on some employees' data that might have been compromised. brian sullivan at hq the post office hacked. up to 500,000 of its employees personal information, including possibly social security numbers, have been compromised in what it calls data intrusion. the biggest employer in america, saying as many as 500,000 employees may have had not only social security numbers but contact information, addresses, whatever it might be, hacks into by somebody. again, no indication of who may have done this yet but the post office, in a statement saying,

that the fbi is indeed leading the investigation. they make a note that no customers of the post office, none of the kiosks should have been at risk. purely internal post office systems, including employees, guys but 500,000 people in a possible data breach in the post office, employees, including social security numbers. the post office becomes the latest victim of allegedly cyberattack. >> the social security numbers the key there. brian, thank you for that. more trouble for gm. new report says that general motors ordered new ignition switches two month before the official recall. phil lebeau. >> we have seen e-mail at the heart of this report, we can confirm that general motors did order at least a half million replacement ignition switches long before vehicles were recalled the e-mail sent from general motors to delphi, which made replacement switches, highlights urgency of the issue

with general motors telling delphi essentially, we need to see shipments asap. put together an aggressive plan and i can adjust the schedule accordingly from gm executive to delphi. why is this important? look at time line, the e-mail sent on december 19th of last year, on december 17th, top executives at general motors, met discussed the recall issue but did not issue or discuss the ignition switch issue but did not issue a recall. it wasn't until february 7th that an actual recall was issued. and that was initially for 800,000 vehicles. we reached out to general motors this morning, for some comment regarding whether or not this is an indication that general motors new about the ig anything switch problem earlier. gm saying, this highlights the problems that we had with the situation and the system. that situation and the problem of highlighting recalled parts has been identified and

corrected. as for the ignition switch recalls, 1.29 million ignition switches have been replaced so far from general motors. in other words 1.07 still need to be repaired. and general motors hasn't heard from 700,000 owners of these vehicles that still need to be repaired. they're sending out gift cards, trying to entice owners to have them fixed. shares of general motors, the stock down, oh, about 14% over the last year, down fractionally again today. guys, we're going to see this as lawsuits play out over the next six months to a couple of years where e-mails are going to start coming out and it really highlights the question of how far in advance did general motors know about these problems. >> phil lebeau, thanks very much. meantime, president obama asking the federal communications commission, fcc, so set what he called the strongest possible rules on net neutrality. want to check on the cable stocks here. obviously the white house and administration taking a hard line on this idea of paid

prioritization, the content providers actually pay the internet companies here to ensure that they get a smooth delivery of traffic. reaction here? >> yes. it took a while but we are seeing comcast, time warner cable take a hit. netflix hasn't responded to the upside as you might expect. but the president did say, the fcc commissioners to a large degree that he's appointed should prohibit paid prioritization, implement the strongest rules to prevent net neutrality, regulate it more like a public utility. the president says net neutrality built into the fabric of the internet since its creation but also a principle that we cannot take for granted. we cannot allow internet service provide to restrict the best access or pick winners and losers in the online marketplace for services and ideas. los angeles is strong. the reaction of the stocks strong as well. >> that cuts a number of income

streams in the future for internet companies that they may or may not have done deals further down the line. the question equally as important, comcast's takeover of time warner cable still go through? there's a lot of talk, carl, you know better than i, 0 you do this all the time on "squawk alley," a possible grand bargain where the deal go through but further conditions attached. the pipeline key for the future. >> various terms used in media like blocking, throttling, when basically the types of service from your isp, the speed is slowed down or sped up, that's what paid prioritization is. the broader public will get familiar with arcane names and tools used but that's where the debate is headed now. >> president obama says it's part of his plan to have a free and open internet, something he's been promised since campaigning. interesting to see whether he can get the rules down. this is the decision of the fcc, not the administration.

>> and something that's going to take a long timing to clarify in the least, though the stock reaction immediate. sales falling at mcdonald's and al regions last month. stiff competition on fallout from the supplier scandal hurting the fast food companies numbers not as bad as the street expected. ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today.

♪ welcome back to "squawk on the street." check out the shares of merck, moving lower after data from a mid state study showed its attempt to shorten hepatitis treatment to four weeks by adding gilead's drug to its own drug coming bin nation showed disappointing results. gilead, it's moving higher on that news. back over to you. >> thanks a lot. mandy drury. shares of mcdonald's doing okay. global comps down a half percent, domestic sales down 1%. joining us this morning sam anderson, steve anderson, miller tabak's restaurant analyst. >> thanks for having me on. >> is this a sign of progress or getting easier comps? what's the dynamic now. >> it's a bit of both.

starting to see the fact that the companies have been cycling through very tough same restaurant sales in 13 of the past 19 months negative sales. however, we see some progress, and i think the management talked about simplifying operations, reorganizing management structure, the basics, first with lower gasoline prices, seem to be helping the sector overall. mcdonald's no exception to that. also a popular monopoly promotion, something they haven't done since start of 2013. that helped get people into the restaurants. still behind wendy's and burger king but i don't think mcdonald's is out of the game yet. >> gas prices and job growth, which we know heavily leveraged to, are one thing. but are you telling me there's a danger, this was about monopoly, in other words, a one-off, because the contrast to september is dramatic. >> that's a possibility. but we think also the thing that has to help them is that you have to focus on executions at

the fraunt level. i think if they get that, get core customers back, defected to both wendy's andburg king, i think the danger for mcdonald's is going to rely more on discounting the core lunch and dinner day parts, you know, some markets we've seen them offer extra value meals for as low as $3.99. that has to have concernsome of the larger peers in the burger quick service space. >> i can't tell you how many articles i've read about the return of the mcrib, what is the meat in. is that a big deal in terms of sales for mcdonald's, does that signal the direction they're going into? >> the mcrib hasn't been offered in about two years then wouldn't be offered to every mcdonald's, 25% won't offer it. it's a cult favorite. there's a website that shows where mcribs are offered on a

year-round basis. i think it will be a traffic driver. besides one-off promotions, they have to focus back on squugs and that's the thing that's going to drive people back. >> on that subject, people that i talked to, analysts within the sector, are concerned for thompson's job. almost 2 1/2 years he took over from jim skinner. >> i think the onus has to be on him to return same restaurant sales to positive in short order. i think what makes it challenging is that overseas looks more challenging. i think the u.s. consumer environment is improving. that's a bit of a contrast. with operations in europe, still negative, same restaurant sales probably another quarter before we see them return to positive on the wake of the supply chain concerns. >> what are burger king and wendy's doing better than mcdonald's? when it comes to the trend towards fast casual, chipotle, a challenge for fast food in chelg

general but you mentioned outperformance of burger. they have seen positive same-store sales. >> there are two different strategies unfolding. burger king has take ain't value centric approach, offering two large sand wimps fwiches for $5 wendy's focused on higher quality items. they may be more expensive than burger king and mcdonald's but they've succeeded but even there, i think the onus is on wendy's to turn around. they last week reported disappointing still positive same restaurant sales and some of the more competition in that core lunch of the day part is now starting to affect some of the quick service peers. >> on the stock, is 90 a firm floor? does it trade between 90 and 100? what happens now? >> probably going to stay here for a while. i think you're not going to see it fall below 90. i think there are a lot of coupon clippers who will keep

the stock up, at least at 90. >> the dividend yield does protect it to some degree. see what november looks like, steve. thanks again. >> thank you for having me. >> over to eman javers. >> carl, that's right, the president a little while ago putting out eight statement, though the president's in china, the white house releasing the statement, also video to go with it. they expect this to get a lot of attention on the internet. let me read you the key points here that the president's making in the statement. he says, so the time has come for the fcc to recognize that broadband service is of the same importance and pluft carmust ca same obligations the other vital services do. to do that the fcc should reclassify consumer broadband service under title ii of the telecommunications act while forbearing from rate regulation and other provisions less relevant to broadband services. he wants broadband services to

be brought under the fcc's regulatory regime but done want them to regulate rates, that is go into details of prices, whether the fcc will do that or not is going to be the next question. but this is a broad assertion of what president obama thinks ought to happen on this issue of net neutrality. interesting moment here this morning for fcc chairman tomorrow wheeler, who woke up at his house here in washington, d.c., to the sight of protesters in his driveway. they were blocking him from leaving his house this morning. these are pro-net neutrality protesters, blocking the chairman of the fcc from getting in his mini cooper there, heading off to work here in washington. he is viewed, wheeler, that is, somebody who is not necessarily as friendly to net neutrality as these protesters would like. he had a long dialogue with them and they're saying they're going to continue to try to block his ability to get to work throughout the day today. >> although he did seem friendly, actually, chatting with them.

>> very nice moment in terms of aggressive protestering here in washington. >> the latest on net neutrality. take a look at broader markets. dow down seven. mixed picture. s&p and nasdaq in positive territory barely. still digesting the jobs report on friday. chief strategist and economist joins us toronto with more comments. blending in your analysis of the economy and what we've seen in earnings, 9% gain from october 15th bottom. can that continue or have we seen big gains already for 2014? >> i think the big gains off the lows have been locked in. sara, the reality is that some of the impediments to the market that caused that corrective phase in september, part of october, which was valuation, technicals and sentiment, have all gone back to where they were back then. this is right now, look, the news on the u.s. economy's good.

but at this stage, looking at valuations, more than fully priced in. >> retail i in focus this week, retail sales friday, a lot of the big retailers reporting earnings. state of the u.s. consumer, you and i have gone back and forth about athis, $3 gas price at the pump, how much is that going to stimulate the u.s. economy and the u.s. consumer? >> light now nationwide, i think that number's down it $2.95 a gallon and every penny at the pump counts. depends if you want to look at this, from june, it's like a 70 cent decline, that translates into roughly 100 billion of crash flow relief at annual rate to the consumer sector. i think going into holiday shopping season, when you couple that, not just gasoline price relief but we continue to chug along with over 200,000 jobs per month, even without big wage

increases that will help out aggregate personal income. the outlook for the consumer, especially the beaten down low end group is constructive over the course of the next few months. >> one reason, of course, trading close to record highs, the journal this morning chooses to have a very large article about revenue growth for these companies, suggesting that some people have long-term concerns about stocks because while you have profit margins at a record level of 10.1% of sales the overall revenue isn't growing, they're concerned how much deeper companies and ring out further market expansion. is that a central concern or is it kind of over here left field? >> well, it's almost a double-edged sword, we don't have -- we haven't had through the cycle -- very good top-line growth. and part of that is because of the contours of that payroll number as the microcosm on friday. we don't have a lot of wage growth. we don't have a lot of wage

growth but at the sam time it helps contain cost. so that's how you have margin expansion or sky high margins. my sense that is you are not going to need to see a lot of revenue growth because we just basically imported from the softness of the overseas economy what the saudi arabia has been doing, opec in general in terms of oil prices, the big drop in raw material prices is a godsend for a lot of u.s. manufacturers that use raw material as the primary source of input process. >> on the subject of the wage growth, everybody talking about friday in the employment report, do you think we overemphasized th that? that is a lagging indicator. as you create jobs now at the fastest rate in the last ten years, presumably wages will pick up down the line. that will be a natural cycle. >> no question. wages lag the cycle.

usually by years. i'm actually looking at it with amusement. the whole focus, like on friday, never mine all of great parts of that overall employment number, everybody focuses on wage number. the fact of matter is that when you look at 12-month trend in average earlier weekly earnings during the great reagan sigel in the 19 0s that everybody longs for, rates growth according to that measure didn't bottom until 1986 and we were in the fifth year of the expansion. you can get long periods of time where wages lag the cycle but the labor market will operate under losses of supply and demand. it's just that the information transmits into the labor market much more slowly than it does in the market for stocks, bonds, commodities, real estate, talking about human beings here and it take is along time for people to realize bargaining position with bosses is improved materially. don't forget it takes time for contracts to roll over. i agree with what you said.

i wrote about it friday. if the big surprise in the past year was wages tepid, i think the big surprise will be the mean reversion trade the other way, prize people to a large extent to the upside in the next year, including the federal reserve. >> after years of being bearish, sounding bullish, as you have been and right, on the economy. david rosenberg. next on the program, it's a big week for retail earnings, both macy's and jcpenney set to report. who will come out the big winner on this holiday season? who is set to profit the most from us shopping? more on that after the break.

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kicking off a week of tail earnings with jcpenney starting off. how do they line up in advance to the all-important holiday season? stacey witlet, good morning. >> good to see you. >> i think the danger is here pessimistic going into the holiday season i know they report but the third quarter is not as important as what will happen over the next three months. gas prices low, highist consumer

sentiment and consumer confident in seven years and creating more jobs. in the economy this year than we've created for last 15 years. that to me would indicate a strong surprise to the upside. >> all of those are very true but concentrated toward the high-end consumer. sentiment driven by the high-end consumer. yes, gas prices help when they come down and that level is sustained. but last year in q3, gas prices incredibly low and comps were disappointing. so, you also have to take into account there's been food inflation, so maybe some of the gas prices has help and maybe some food inflation has sucked that up. >> what is your advice? what are you telling hedge funds? they'd love to play this. >> i have been quite negative for holiday this year. we've seen blowups already. we've kohl's, walmart, abercrombie, a massivement of

preannouncements. interesting because most of the street was positive going into the second half of the year as inventories had been controlled. but it's just not panning out. it's not the case. the consumer is waiting, they're focusing around times where there are heavy promotions, we're going to see that again this year, on black friday, and see margins sufficient somewhere disappointing sales with only a few outliers like limited brands and tjx being winners. >> what about walmart matching prices with online retailers like amazon? it's a big deal. something we have not seen from walmart. are you not optimistic it will make it more competitive the holiday season? great point. think what the retailers are doing. they're -- target, free shipping, they were the first to fire the warning shot. walmart's going to match, best buy's going to match. everybody will match and drive margins down, the major issue. >> stifel is raising target today.

interesting word out of adobe, went to get the best deals. they've gone through trillions of visits, data points. black friday isn't day to find the best deals last year. it came the sun before thanks giving. >> absolutely. what we saw last year was so interesting. black friday, i would say, officially, is dead. black friday started the week before black friday last week. if you went into macy's, best buy, amazon, having deals every ten minutes. get out early for the best deals. don't wait until black friday. >> thank you for coming in. speaking of black friday, cyber monday, the largest online shopping day in the world one you might not know about. find out why singles day could mean billions of dollars of sales for alibaba when we come back. ♪ there's confidence...

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in sales over 24-hour period. david faber will sit down with alibaba's chairman, jack ma. an analyst with suntrust to preview the event. upcoming singles day should be bigger than the entire u.s. cyberweek. how are you arriving at monstrous numbers? >> what 'amazing, you mentioned last year 2 1/2 times cyber monday in the u.s. if you look at last year's cyberweek starting from thanksgiving to the week out, it's going to be larger than that entire week in the u.s. we think 8.5 billion, which would be 45% grower off of the 5.8 billion last year, which is tremendous because you think last year 80% year-over-year. tough comp but tremendous groer. >> is there any other number to suggest investors play this? does amazon get a piece of pie or retailers that alibaba's working with on this day? >> yeah, it should be some retailers. you had t-mall, first year,

difference between last year and this year, first year where you have brans going global. used to be chinese-only holiday. now seeing it global. that's going to help the growth rate. jd.com will participate in china has well. what about, i mean, the stock has been -- it came out with earnings, investors love the fact it's profitable, love the margins. is it already priced into the stock? we know this is a record day for alibaba or can they take this the traffic drivers into sites on this day and keep momentum going through the shopping season and into next year? >> the last quart, the first quarter they rearted, acceleration in active users, in mobile, you see this strong growth in singles day on the 11th. you see as a proxy for how well the quarter may be able to outperform and people have to readjust estimates. >> robert, as the valuation of alibaba approaches $300 billion, we're struggling to make sure we cover this in the right way,

this is the first time the singles day has had prominence in this country as it has in at the moment. i wonder over time whether we'll be less gung ho, in particular what happened to the weeks in advance of singles day is that alibaba offers rock bottom prices that they can lock in for small downpayment according to "the journal" and complete the purchase on the 11th of the 11th to boost figures. in other words, it doesn't give a us a clear idea on margins, valuation. it's a metric we may learn to take more with a pinch of salt as time goes on. >> i agree, one of the risks going into. first time you're seeing it go global, that's a big part right there seeing brands embrace this. their coo said they think it could be a global phenomenon in five years or so. when you turn towards margins, a company that has 50% ebitda margins and you look at last

quarter and back out acquisitions, they had 54% margins, right. >> compares to amazon, mid single digits. the profitability here has a big influence on the valuation. >> obviously the numbers are dazzling for ordinary investors. you like the stock. what would you tell those on the sideline concerned that the structure of alibaba gives an extraordinary power to the management in making decisions that the chinese government is obviously key swing factor here and that the chinese economy is slowing. factors that are persisting and overhanging on this stock and on some chinesen vestments. >> two big risks in our report, one, chinese gdp, how fast that grows over the coming quarters and years and number two, chinese government. as far as control, structure of the organization, we've seen very successful examples in the u.s., facebook, google, et cetera, being among those. >> robert peck, thanks for joining us to preview gigantic numbers we'll see tomorrow.

don't miss david faber's interview with alibaba's jack ma, tomorrow, "squawk on the street," 10:00 a.m. eastern. if you have a question, send it to us #askjackma. wonder if he'll quote famous american movies as he tends to do when he interviews. wall street expecting big bonus payouts but for most it's likely to be another disappointing year. kayla tausche joins us more. >> a survey comes out every year closely watched by the financial industry and it comes from johnson and company, and it is forecasting that bonuses on wall street will drop 10% when they are paid out at the beginning of next year. payouts will vary widely, though. investment bank willing see the most upside due to, of course, record m&a activity, more bonds and ipos underwritten, as we've seen a lack of volatility in the market. the lack of volatility helping asset management where high net worth clients investing more of

their money. and those banks have been seeing balances rise. but onhe fp side, senior management earnings will suffer, of course, margins for banks under fire. traderers in both equities and fixed incomes see bonuses drop, as much as 10%, johnson survey says. many traders i've talked to pinning hopes on the recent volatility to provide a last-minute boost in the next couple of weeks before managers of banks decide what payouts will be. banks determine compensation by a set percentage of revenue, they pay between 35% and 40% of revenue in compensation. the more revenue, the more employees take home. jpmorgan at top of the investment banking heap, but morgan stanley 20% jump in fees from last year. so that should give you a sense where earnings shake out. outside banks, it's a different story. hedge fund will suffer due to

poor performance, private equity for multiple-year running, employees will see a fairly even rise in pay, up to 15%, according to johnson on the back of banner years in that sector. guys, people say, why do i care what wall street's go take home? that is to make me more envious of what they're getting? no, there are two reason it's important to the economy. one an xatindicator of people moves, people leaving the industry and going elsewhere. secondly, bonuses taxed at 50%. an important revenue generator for government. >> are there big lay-offs happening? we haven't seen big, big headlines but as i understand, it's in a mode where there are lay-offs and those that stay, higher-ups get the bulk of the bonus pot. >> lay-offs are coming from changes in the business model, we're still seeing banks trim the number of branches they have. there are tellers laid off. given the falling mortgage applications people give

lay-offs in mortgage banking. we've got numbers on that on friday. it's about the change in the business model. very careful not to make rash decisions on year-over-year changes in trading activity but some effects given the volume. >> thank you. dendreon filing for chapter 11 bankruptcy today. stock falling 70% on that news. the company could pursue reorganize of its drug. mig tir rel live in boston. meg? >> sarah, the latest in a long soap opera that saw the market cap, more than $7 billion at its parq peak. the technology was a breakthrough for prostate cancer. it's run into a number of problems including taking on more debt. the breakthrough nature of the technology may have contributed to its downfall.

it's expensive and complicated to manufacture and administer. the sales are taken out of each patient's body individually, then sent to be re-engineered to better fight cancer and reintroduced to patients and they're fragile el whys. it's difficult and expensive. dendreon, when approved, wasn't facing as much competition in prostate cancer as now from johns johnson & johnson. >> the downfall a lot of things, competition, low profitability, difficult to make, difficult to take, and so you know, nothing wrong with immunotherapy, there's a story that didn't work out perfectly. >> reporter: so the question now becomes, who will buy provenge and dendreon to keep manufacturi manufacturing? the company will stay on the market, we hear from analysts it's used in 3500 patients per year but question who wants to take this on. will they be able to afford the

manufacturing, make it profitable? companies with prostate cancer sales forces could fold it in. however, i spoke with eric schmidt, it could be difficult to fit into anybody's portfolio. will we see provenge stay on the market? >> next on the program, david stockman, former director of the omb under president reagan, joining rick santelli live on the fed. "squawk on the street" will be right back. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions.

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♪ check out sotheby's. the stock moving higer as its third quarter loss narrows. last week posting a record $422 million sale of impressionist

and modern art, as we can see, the stock is trading up by over 2% at 40. 28. for the year, the stock is down about 25%. back over to you, carl. >> thanks a lot. over to the cme group, check in with rick santelli. >> hi, carl. we have a special guest this monday morning, in the '80s called him the wonder kid. i call him the wonder man now. david stockman, former omb director under ronald reagan. thank you, sir, for taking the time. >> happy to be with you, rick. >> all right. three topics to cover. first topic, infrastructure spending. i personally think that after the whole shovel-ready debacle, that trust is the biggest issue to welcome true infrastructure spending that it doesn't get slush funded and contracts award fairly. having said that, what is the deal with infrastructure, we not spending not as much as we have historically? what's the real numbers, david. >> that's not correct.

infrastructure is just another thinly veiled excuse for more deficit spending, as if 18 trillion of national debt is not enough. we're spending 3.5% of gdp on infrastructure more than we ever have historically and, frankly, that compares to 3.0% in europe na progressives are saying more in light than we are. if you look at high roys and transportation, spending $150 billion, more than ever before. but the one that i think demonstrates that this whole idea that we're starving infrastructure is a myth is to look at d.o.t. budget, which is the infrastructure agency in washington, when bill clinton left town it was $50 billion in today's dollars, no one said that he was starving infrastructure. today it's $80 billion and rising, nearly 70% more. so, we don't have an infrastructure issue.

the thing the federal government can do is maintain the interstate highway system, 90% of it's in good shape. if we need more money, it should be financed with gas tax, user fees, and congress is simply unwilling to raise taxes to spend more. if we're not going to raise user fee, let's not add to the national debt by buying shovel-ready projects that we don't need in the name of infrastructure, which is, you know, vastly exaggerated. >> all right. in our final minute and a half, quantitative easing, we put at least for this rendition a tombstone on. but we've had three other renditions, so when we came back and had the fourth, which was called the third, because of the twist, are we really done? and what has it accomplished? and if it wasn't such a great idea, why is the rest of the world trying to mimic it whether japan who mimicked it times five or europe trying to get it front

and center with regard to the burner of finance? >> because i think the entire global economy is impair, imperilled by outbreak of monetary madness among a handful of central bankers. we saw the evidence of that with kuroda a week ago in the october massacre. i mean, he's a mad man to think that with the central bank of japan having 50% of gdp on its balance sheet already that he's going to add 80 trillion. that's the equivalent of 3 trillion annually in the u.s. scale economy. draghi is driving europe in this -- towards the same disaster. how could anyone think that europe, where governments have 100% debt to gdp, where total debt, including private is 400% of gdp, needs lower interest rates or even negative interest rates. that isn't the problem. the problem is there are cost structures too high, economy's

are too riddled with status taxes and regulatory interventions in other impediments to growth. the central banks can't do anything about that. here we may be off qe after $3.5 trillion of bond buying accomplished very little. but we still have interest res in the money markets at zero, we're in month 70 of zero cost money. it's a massive inducement to speculation in the kerry trades. it's accomplishing nothing for the mainstream economy. and simply fueling the mother of all financial bubbles, which one of these days is going to burst and take the economy right back into the sewer. >> we hope it doesn't weep hope somehow that the growth in our economy will lead the rest of the world but that certainlies a dangling participle with regard to the factual awareness now economies improve and not on the back of debt.

david, a pleasure, thank you. simon hob, all you'rs. >> we hit a fresh record high on the s&p 500, all three indices of course seen significant gains this year. begging the question, how will we trade in the last two months of 2014? bob dole will join us live with his forecast after this break. requires precision and anattention to detail.g it takes knowledge, hard work and a plan. at baird, we approach your wealth management strategy that same way. as an employee owned firm we have the freedom and resources to create customized financial plans built to last, from generation to generation.

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starts at $89.95 a month. comcast business. built for business. ♪ stocks relatively quiet as we open up for another new week although the s&p 500 did just edge to a fresh record high. for many 2014 has been a year of surprises, many firms starting now to publish their year end thoughts and look ahead for 2015. moving asset management held its year-end round table discussion this morning and chief equity strategist and senior portfolio manager bob dole joins us now. welcome back to the program. >> thank you. >> it was a candid round table discussion. what did you forecast? >> the good news was because it

was intimate and a round table it was more long-lasting as opposed to anything between here and the end of the year. we talked about how the environment from an economic standpoint is getting better here in the u.s. how most non-u.s. areas continue to struggle. how good the earnings progress has been. volatility has certainly picked up but we've enjoyed the good side of that for the moment. they were the subjects we talked about among others. >> you've done this for 34 years. 34 years you've been a portfolio manager. obviously various other firms, big firms, as well as the one you're in at the moment. how do you structure a portfolio for 2015? what wins next year? >> i think it's going to be a pick up from the cyclical sectors because there were lots of back and forth in the global economy, many of the defensive sectors like utilities did well again this year, simon. i think next year, as the u.s. economy gets better, as we begin to see some non-u.s. economies responding to policy, cyclical

stocks to include technology, some industrials, even some consumer cyclicals will do better and the bond like equities utilities, my example, will lag. that will be the first place i would start. i would focus on free cash flow, geography, where do the earnings come from. the more from the u.s. the better, for now. >> i hate to always have to end up talking about when the fed will raise interest rates, but i guess we have to. in particular, of course, janet yellen decided to be very clear on friday when she was traveling outside of this country to say that there could be or there would be or people should expect volatility as they begin to raise interest rates here. i don't know, why did she do that? who is that directed at? is that at the emerging markets? do i need to worry if i'm investing here as you suggested i should? >> we've been through a period notwithstanding the last 30 days of unbelievably low volatility thanks in part to the massive

liquidity provided by the fed and other central banks. and what miss yellen is saying, that's not going to last forever. we're heading back towards something more normal and normal is more volatility than with we've been. i think she's suggesting that to everybody. policymakers, bankers, investors. she could have said think the world's heading back towards a bit of normalcy compared to where we've been. that's the message, simon. >> you alluded to this when you were talking about utilities and other stocks with bond like characteristics but the sell side got the bond call completely wrong in 2014. is 2015 the year we see the 30-year bull market in bonds come to an end and see sharply higher interest rates? >> you're right. the sell side got it wrong, many on the buy side did as well, as you well know. here's what i would say. the low in interest rates was 2012. the ten-year treasury was below 140. the most recent panic low in yields last month was 186.

we're making higher highs and higher lows and i think we will look back and say, july of 2012 was the low for interest rates and since then, we've been working irregularly higher and i think that continues next year, correct. >> we could talk for hours, bob, but the clock beats us. we have to leave it there. thank you for coming. >> thank you. >> bob, chief economic strategist and chief portfolio manager. >> to jon fortt with what's coming up next on "squawk alley." >> good morning. do you know what tomorrow is? 11-11 not just a cute date, it is singles day. this is a bigger deal than a lot of people in the u.s. might realize. especially for alibaba. we'll get into that. also the white house, out with a position on net neutrality. that's stronger than some might have expected. we'll talk to mozilla's chairman mitchell baker about that and more on the tenth anniversary of fire foxx. and the chairman of x-prize will be with us with the latest winner. don't miss that coming up on "squawk alley."

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street. "squawk alley" is live. ♪ ♪ welcome to "squawk alley." just past midnight in china which means singles day has kicked off. it is the biggest on-line shopping day in the world. 24 hours of deals and p pro motions. our own david faber is in china where he will interview alibaba's founder and executive chairman jack ma tomorrow at 10:00 a.m. eastern time. good morning once again. >> well, carl, we've just started, of course, the biggest