the two new articles discovered in the headron accelerator. both in the proton family. not as important as the higs boson. >> we've got to go. "squawk on the street" begins right now. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber, sara eisen, simon hobbs. jim cramer is off today. premarket is weak after lousy macrodata from china, germany, france. solid jobless claims in the u.s. and a cool cpi not helping matters much. we'll get philly fed in about an hour. oil relatively steady below $75 again. our road map with two embattled

retailers seemingly turning things around. best buy and williams-sonoma reporting better than expected results. >> keurig green mountain. >> sell force.com despite better than expected earnings. >> we have exciting news. high octane analysis once reserved for elite investors willing to pay armies brought to you through cnbc. announcing a strategic investment with kensho using the cloud to bring historical context front and center. ceo and co-founder daniel nadler will join us live to show you how it works. it will be interesting to see what they bring on to the set. you can get complicated questions answered within seconds, apparently. we look forward to that later in the show. >> first up, a pair of retailers up sharply.

best buy reporting better than expected third quarter results. comps up, too. sales trends going into the holiday quarter are what they call encouraging. williams-sonoma beating the street with its third quarter results helped by improved online sales. both stocks up 4.7%. i like some of the title of the reports on williams-sonoma. early visit from santa. another one, "no broken dishes." this is a sign of what is working this season. >> a lot of things are working. target, walmart and home depot. i think it will be a good season. so often headlines are grabbed by those not getting it right. >> best buy had been talking down what we've been seeing. we've been seeing profit growth mostly on cost cuts. growing by shrinking the business what we are seeing is sales growth. revenue rose less than 1% last quarter, but that was after two years of declining.

you have the iphone launch in this quarter. they reckon they had a good allotment and that artificially boosted it. >> this is the key time of year for retailers. yesterday i spoke with the ceo of qvc. they sell about $8.6 billion worth of stuff from the tv platform and online. he was the first ceo i heard from who said we are starting to see an impact from lower gas prices. you do wonder in this current environment heading into black friday, the biggest shopping day of the year, that will be beneficial. >> let's bring in a guest to analyze this. our first guest has an underperform rating on best buy. michael, good morning. why are you not euphoric with what we had delivered today? >> you guys nailed it. these guys are growing by shrinking. this is the first positive comp in a year. i think it's the third in the last four years. gross margin down 13 consecutive

quarters. that's not a good thing. gross margin percentage is down because the mix is down. the mix is down of high margin accessories because they are just not getting the traffic. people are shopping online for batteries. they don't talk about it. you said it. this quarter's comp was driven by the iphone 6. nothing else. every other category was terrible. now we are heading into christmas. target is loaded for bear. they are going to compete. amazon is going to compete. walmart is going to compete. best buy is the guy who is going to lose share to all those guys. amazon is good night who will take the most share. i think best buy is toast. their guidance for yearly flat comps crazy talk. gross margins? crazy talk. >> a technical term. >> what he said in the statement was not about the iphones, our strength in televisions, computing and tablets versus the industry, in addition to our growth in gaming and appliances

drove a domestic comparable sales increase. >> i invite you to look the word disingenuous up in the dictionary. they called out 80 basis points from installment sales of phones. phones were the driver. computing included mobile phones. i think they were entirely disingenuous. i think phone sales were up and they chose to ignore that fact. we know iphone sales were up every place. >> i actually have to start my holiday shopping early because i have to send it back to people in another country. i was surprised to go into best buy twice the last ten days and find three items i bought online substantially cheaper at best buy. that's not what you are saying in your research note. how can it be i find things that are cheaper? are they cutting the prices on certain items or are people realizing perhaps what they buy online through the algorithms may not be the best buy?

>> they are as price competitive as anybody on big ticket items, appliances, televisions, computers. look up batteries. they are literally 90% higher for the battery that goes in my calculator. $4.50 versus 45 cents. not close. >> batteries are not presumably a central product to anybody here. >> if accessories are 10% of the mix at 60% margin, 600 basis points of 22% margin. it's huge. accessories matter. if they are down one percentage point that is 60 basis points of margin erosion. that's been going on the last three consecutive years. they are 13 quarters in a row of margin compression. the rest of it is on price competitiveness. >> what about 4k tvs? best buy dominates the 55, 65 inch screen tvs ultrahigh-def? >> i promise you that the day

cnbc starts broadcasting in 4k, i will go into best buy and buy their most expensive one. i will do it. you guys aren't about to broadcast. until the broadcast standard goes there, nobody is buying one except crazy rich people. unfortunately you hang out with a lot of crazy rich people. >> speak for yourself. >> is that unfortunately or fortunately? >> okay. michael, thank you very much. >> thank you. keurig green mountain reporting profit 90 cents a share. revenues came in above consensus. below what analysts were looking for. there was disappointment in the share reaction to the fact the cfo was going to be stepping down. she will stay onboard until a successor is named. this is the best performer in the s&p 500 for 2014.

>> still? >> still. and over the past 12 months. people look at catalysts. they've been adding competitors. people were worried the patents would expire and competitors would replicate the machine. kraft and others are partnering with keurig to go in. that's a driver of this amazing outperformance. >> they said the new cold machines are out next fall. >> end of next year. >> if they have 20 million people already have the hot cup maker, how many will buy the cold? >> goldman sachs says the market is four to five times bigger. they are among the most bullish on this name. you have to wonder because now it's getting priced to about 40 times earnings. there is a premium in this stock, for sure. >> confounding shorts. shares of sales force falling in the premarket despite better than expected quarterly earnings. the revenue forecast next year falling short of estimates due to the impact of the strong

dollar, not the first company that said that this quarter. probably not the last either. >> no. the currency problems. what do they have about 20%, 30% revenues overseas? the issue i read with analyst reports this morning is that it's getting so big that it's harder to drive revenue. that was one of the points. in terms of the expansion, it's gone into so many different areas in the clouds. >> the dollar leads to a big discussion on macrodata. you couldn't ask for a more crystallized view of what is different about the united states. our data today relatively strong compared to what the euro zone is printing, compared to what japan is printing. >> china. >> china, six-month low on pmi, back to 50. you've got 118 yen. >> i was waiting for you to mention that. it was a huge move. this is a new seven-year low for the japanese yen and high for the u.s. dollar. it makes our assets more

attractive. don't mock me. this is a huge deal. >> i love the way you get off on dollar/yen. >> they are not worried. that was a green light for dollar bulls to keep buying the u.s. dollar. >> the point you were making about europe. pmis came out in europe. half the euro zone is france and germany. within manufacturing, the french manufacturing sector continues to contract. germany stalled. that means government, southern debt qe is on the table. citi suggesting january 22. >> unbelievable numbers. when we come back this morning, alibaba debuting its first-ever bond today. jack ma calling some consumers greedy. another look at the premarket. if the dow falls today, it's the first two-day loss in a month. in a world that's changing faster than ever,

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don't believe it has yet fully occurred. they are pricing that out. not a surprise here. going to help refinance and establish them in the capital markets on the debt side of the equation, not just the equity side where they've been well established with the largest ipo of all time.

this coming after i spoke to him last week. i told jack ma, don't talk to anybody for a while. lay low. you're tired. not that happy. >> sure, after he talked to you. >> exactly. now you're good. apparently he just keeps wanting to talk. he's still out there talking about a lot of different things. and their expansion plans. i am hearing from hedge funds focused to an extent on yahoo they are long yahoo and shorting alibaba as a hedge. when we will hear from yahoo or construct a tax-efficient vehicle to sell the remaining and very significant 16% stake in alibaba. >> the chart we showed doesn't do it justice. still up 60% from the ipo. it priced at $68.

the chart shows it from the close on day one. he still clearly feels the pressure of the stock price move, suggesting to some alibaba faces its most dangerous moment now. concerned that some of the staff may get carried away, become complacent the way it's enriched them. a man who feels personal pressure given the structure of the company as well. >> yeah. i think that came through in our conversations roughly a week ago in terms of that height level of pressure he does feel to a certain extent as chairman of this company. setting the broader strategic mandate, if you will. it's funny in spending time at alibaba and trying to get a sense how it all works there, it's not as typical u.s. company with the chairman and ceo. their ceo jonathan le wefrn.

>> it hasn't kept american investors away. this bond deal is the largest dollar bond sale and will test the u.s. strong corporate demand for chinese company debt. what is going back looking how it's rated. s&p and fitz rate it 8 plus. one notch above amazon and one notch below ebay. it reflects alibaba's position in the chinese market. >> what have you been hearing in terms of investment grade overall lately? things seem to be getting squishy. >> a little squishy. a lot depends on the rate environment, which we haven't seen change right now. we heard from the federal reserve yesterday and they are staying pat. they made a convincing case for ending their quantitative easing and talking about how they will

communicate to higher interest rates. there wasn't a sharp move in the overall treasury market until we have that deflection point. >> we want to keep a close eye on the fixed income market. high yield garnered attention because spreads had been widening a bit, as well. some deals have been harder to place. >> saying the junk bond bubble may burst. >> is it a bubble? he used those words. >> we do have sad news. jim cramer's father ken cramer passed away early this morning. if you watched this show or "mad money" over the years, you undoubtedly jim heard about his beloved pop after an eagles' win or talking about business. his father was a veteran of world war ii. david, i always say watching them together made me want to be a better parent because what they had together was remarkable. >> very close. of course, you could see the enormous pride ken had in jim.

jim was there yesterday. obviously, a very difficult period but a well-lived life. >> absolutely. our thoughts and prayers are with jim, his sister nan, the cramer family. ken cramer was 92. you can bring back a lot of things from a trip around the world. but you can't always bring back customer data. because many customers don't like it

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9 1/2 minutes till the opening bell. let's bring in art cashin. good morning to you. we had a nice run since those

october lows. is it over? >> well, by some cycles today is a change day. so we'll be interested to see. they'll certainly get the change at the opening. the soft pmi data around the globe has been hurting markets, particularly in china. right at the 50 level. iron ore, copper, a variety of commodities got hit. i think we want to look here on the morning weakness. if they break below 2040 that will be a bit of a problem. the critical area will be 2030. if they break below that it might cause a rethink about how far this rally has to go. >> people point to the russell, almost 5% off the highs. that is a canary? >> it is to a degree. this is kind of a weak period for small caps. we'll give them a buy for a little bit if they get much weaker, it will be a problem.

>> obviously, the bad news abroad we talk about an awful lot. you can argue it's good news potentially for this economy. it reduces the need to raise interest rates. goldman sachs put a note out that says we could have three years above 3% growth before interest rates start to bite. they are talking about only after 2016 do you get serious interest rate hikes from the fed. three years of 3% growth will be a phenomenal extension for a normal cycle, would it not? >> it would. i would like one year of 3% growth first. we haven't been able to achieve that yet. every time we get up, there is slippage. >> but for the weather in the first quarter, we would have done that this year. >> you see what's going on in buffalo? okay? the weather is always with us. i think we may have a little bit of trouble in the final quarter, too. >> post fedewa is the analysis?

this morning we had cpi number. consumer prices ran hotter. >> the last inflation data ran hotter than expected, too. we do want to keep a look at that. this is a lame duck fomc. they've got one more meeting and then there is a new group coming in. they will be more dovish. it will go along simon's line they have more time to wait. i still remain baffled as to how they can raise rates when they want to. they've got $2.25 trillion in excess reserves they are keeping on the buy paying 1.25%. if they want to take rates to 1%, they may have to pay 1% on all those reserves. >> i know you've been worried about that for a while. >> someone charted references to ebola with a chart of the vix. it's almost the same line.

>> absolutely. that was on the depth of october 15. ebola was very much a hot issue. that helped this rally greatly. it turned out to be not as con teenage you use as people feared. >> we'll see you soon. thank you. art cashin. and the opening bell a few moments away.

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you are watching cnbc "squawk on the street" live from the financial capital of the world. we'll get the opening bell in three minutes. a lot of macrodata from around the world. not all of it good. not all of it bad either. u.s. had decent numbers. retail earnings coming in. we are going to get more in about a half hour, philly fed on one of the heaviest day of the week. >> it is a busy day. we didn't mention jobless claims. they fell last week by 2,000. 291,000. we continue to see this progress in the labor market with fewer americans filing for unemployment benefits. >> interesting to see a couple of upgrades. one from evercore raising its target today.

>> gopro, premarket is down. talk about that secondary offering on the way. some retailers, lb, limited brands, beats by a nickel. raising their full year but guidance below the street. still though, comps up five. not a common occurrence. >> dollar tree up 3%, 4% premarket. quarterly same-store sales growing the most since 2011. >> it continues. pretty much better than expected retail environment so far. >> though we are not there yet. it doesn't kick off till next week. >> the big question people are asking, how deep are the promotions going to be this time around. this idea customers are trained on that. best buy talking about that. the ceo on the conference call about how they are taking a more

diligent, analytic approach. you are saying you are seeing better prices. >> discounting is no surprise to the ceos either. that's what you stock on the sales and buy in january for the following holiday season. nobody surprised that happened, surely. what does that mean? >> everybody likes a good discount. it's interesting walmart finally gave into this idea that they were going to price match after the scamming problems they had. they still narrowed down the list to about 30 or so retailers they were going to match. best buy, amazon was on that list. there is a low price war going on here. that will pressure margins for investors. >> good for the gaming industry. >> is it? >> there's more playstations out there. >> david, great stuff from the investor day yesterday. take away markets from those guys? >> the markets, i can't say

that's the case. ubc giving an upbeat view of shopping expectations heading into the holiday season. there were take aways on the battles that go on. >> there's the s&p. a look at the opening bell here. paramount group. celebrating its ipo which happened yesterday. at the nasdaq qualcomm, supplier of computer chips used in smart phones doing the honors. best buy turning out to be a smart phone story having pointed to strength in electronics and tablets. apple will make news. bundling its beats, music streaming service in 2015 according to our own julia

boorst boorstin. >> we'll talk to gene munster in a bit, whether that will be a significant category. apple is categorizing it on the balance sheet as other products, unlike it does with the iphone and tablet. >> biggest loser at the open is keurig green mountain. the stock is really sunk at the open. >> guidance was low. keep in mind, this has been a big mover. expectations are high. we are at the end of the year. this has been a big winner. also there was a little disappointment you never want to see a cfo leave. it does appear to be a smooth transition as they find a in you one. >> you've got a high multiple name like that, you've i got a fairly narrow ability to actually meet or continue the run, one would expect. i would assume it's the guidance. >> it's less than 40, about 37

times earnings. clearly, paying a premium for this one. any small disappointment. guidance had to do with the fact they are shifting from this model of the keurig to the keurig 2.0 which they launched in the latest quarter. a little switchover there. >> jetblue will start charging fees for bags. what an incredible run airlines had. that will be a new high for the year. almost $13.40. i saw a statistic the other day, the average fare goes up $5 going into the holidays, while oil is plummeting. no wonder they had such a nice run. >> they had pressure from shareholders to monetize to a greater extent. jetblue's management had been under serious pressure to do more. the question comes with virgin america. will they similarly be able to deliver? >> i was going to mention oil. it is higher today.

it was sharply lower yesterday. we'll watch the s&p energy names which have been so beat up lately. >> dollar tree is one of the top gainers today. net yk rose to $133 million, 64 cents a share. sales up 11%. dollar tree is buying family dollar. the stock doing reasonably well today. discussion about how many stores dollar general will have to sell. >> that's in contrast to some of the earnings including family dollar which were not as strong. dollar general came out and reaffirmed its support or its commitment to trying to buy family dollar. as we know, the anti-trust is the key question there. the family dollar board continues to favor the dollar tree offer in the belief dollar general is not willing to divest enough stores. 1,500 willing to divest. we haven't talked about it lately, the bid on it, so it is

probably in excess of 2,500. mid december is the meeting there. >> it's december 23. >> the ftc might require 4,000 stores to be sold. >> that becomes a question. if they were to come with a 2500 offer, my sense is it might at least bring negotiations between family dollar and dollar general. could you get to a number that would meet the threshold the family dollar board believes it would need to. dollar general's bid is a higher price than the dollar tree bid. >> wouldn't be regulators be more accepting of the dollar tree combo because they aren't as big competitors and don't operate the same? >> they are. dollar general has the ability to bid higher and already at a higher number.

>> might be making their way into individual names. caterpillar one of the worst performers on the dow. people might start wondering or worrying about mining in that part of the world. >> all the upside potential is $100. the downside risk is $60. the cost benefit analysis is why they are upping it. one question is what do they do with the china bidders. they may take out the china unit and adding it back. >> there is chatter they may split taco bell. >> over cnbc's 25 years we've been first, first to bring you the numbers live from this floor

to your living room, first with a realtime stock ticker. cnbc is joining forces with kensho for financial markets. we are going to usher in another phase of data democratization. for that we'll check in with bob pisani on the floor with the kensho ceo. >> thank you very much. you figured out a way to democratize stock picking. what are you bringing to help us understand the stock market? >> sure. what kensho does is build computer systems that allow people to make better, smarter, faster, more informed decisions with statistics. it's more with sabre metrics. what money ball did to sports. to understand the impact of every run, throw, catch, pitch in a game. with financial markets it's more

complicated. >> why is this possible for the stock market? we've been watching nfl games for year. they use analytics and it's full of information. why has wall street been slow embracing big data analytics? some hedge funds, but not main street. >> i'd say two factors. as many variables as there are in the nfl, there are more in financial markets. we realize leading consumer internet companies like google, facebook, apple left a generation ahead in terms of complexity of the computational problems they are dealing with. we have the most brilliant engineers in cambridge, massachusetts, who come from companies like that and able to direct them toward this problem space. >> you crunch all this data, come up with all these relationships, it's an amazing system. i've been playing with it two weeks. why didn't you just start a hedge fund and make $1 billion? you're not a trader. you're a company licensing your technology.

we are partnering with you. why didn't you start a hedge fund? >> ten years ago that would have been the optimal strategy. kensho is making the bet the cost of computing has so exponentially deflated, it's ubiquitous. we'll take it global. >> it's amazing how counterintuitive some of the conclusions are. normally october is a down month but you indicate since 1982, markets have been up 100% of the time in the 30 trading days leading up to a mid-term election. everyone was panicked in october, yet it turned out to be correct. october was an up month. it's counteruntightive. >> that's how stats allow you to take a step back from the emotion and noise and put things into historical context and focus on the big macro picture. this always traded positive and it did.

>> for big hedge funds, this is the secret sauce they used. looking for these hidden relationships. they trade on this. are you going to be removing a lot of alpha from the market? what does this mean for big hedge funds? >> technology never removes alpha from the market. when you first put out the stock ticker, everybody said the cnbc stock ticker, they are trading off more privileged access. it didn't. it just raised the baseline. when the baseline goes up, everybody has to do a better job. these tools are only as smart as the people using them. >> nbc universal is making an investment in kensho on behalf of cnbc. it's nice cnbc will be making comments on the market. can an average investor have access to kensho. where do you see this partnership evolving towards? >> i think the trajectory of all

technology is towards increase accessibility. investors at home can expect to see that. it will be no different for this type of technology. >> david, what do you think hedge funds you talked to will be thinking about this kind of technology and where it might be going? and making it more available to the masses? >> what i wonder is if you commoditize it, what's its value. why did you choose this route as opposed to very narrow, charging an extraordinarily high price perhaps for data that will be very valuable, instead going ubiquitous, isn't it going to get commoditized? >> you can build a valuable company offer commoditizing previous privileged data. mike bloomberg proved that. the trajectory is toward increasing ubiquity.

>> we'll be talking about this the next weeks and months. trader talk cnbc.com has a good explanation of kensho and some unusual examples. next hour we'll talk about seasonal patterns. dan nadler, a pleasure to meet you. hope the relationship continues for a long, long time. >> thank you, bob. >> more on this the next hour. >> the company is not that old. and built by some of the geniuses of things behind gmail. that came out of nowhere. was instantly ubiquitous. should be fun to keep it go live. >> keep an eye on that guy. he could be running for mayor of new york. >> look at the value. >> no. he is partnering with us. he won't be. >> it's the bloomberg illusion. >> after formerly having access to that data at my previous job, i can tell you the value every day, not just for us journalists, but that's what people want to know.

it's something bloomberg and reuters had a lock on. >> you can say what happens to this set of assets if this occurs. >> right. which stocks get hit the most. i have been told they do a lot of macroincluding currencies. which currencies move. the last time thailand had a coup. >> you may never leave the home again. you'll be there on the cnbc.com. >> my brain will explode. the more questions you put in and more we get from our users, the more data it can spit out. it's very cool. >> perhaps they can use it to figure out what the ultimate value will be for the aws-3 auctions taking place. if you've been watching shares

of dish, you've seen it soar. not so today. we are watching closely these continued auctions of spectrum. remember dish is a huge repository of spectrum. each day that goes by with a higher valuation being willing to be paid by the company's competing and bidding for that spectrum helps the value of dish. let's go to research we've gotten over the last 24 hours and those also watching this. goldman sachs weighs in and says, if we look at the implied value we assume $1.81 if growth in bidding levels decelerates. then we get to a value of dish between $80 and $92 a share. you can get as much as $2.37. that would get you way above that estimate in terms of what dish would be worth. it does give you some sense as to what we are talking about. over at jpmorgan, they have an

interesting note out saying this is going to hurt at&t and verizon. they are paying more than they thought they would have. we know they are participating in these auctions. there does feel like there is another bidder. maybe it's somebody else. they are speculating. is it possible google is in there also? we'll see. it does appear that some third bidder with with very deep pockets is pushing the prices up sharply. back to mr. irgen, what will he do with that valuable spectrum? i put it to his neighbor in colorado john malone asking him what do you think charlie ergen will do? >> charlie is very hard to understand or predict. i'm not entirely sure he knows what he wants to do. he knows they're valuable. he knows they are increasingly

valuable. the question is -- and charlie doesn't want to cash out. he's having too much fun. what combination increases the value of the assets he's sitting on, but keeps them involved? >> interesting insight from mr. malone, of course. malone knows ergen pretty well. seems to think he wants to stay involved. let's move to the bond pits and rick santelli in chicago. >> well, in one way we are going nowhere fast with regard to treasuries, but we are on the cusp of maybe changing that dynamic. look at a two-day chart of 10s and realize this is the 18th session we closed in a tight range of 2.30.

we are testing the lower bounds of that on this chart which starts october 28th. two-day boons, two things should jump out at you. we are having five and six basis point swings, we want to pay attention. the data affected the boon today, yesterday and was more of a lack of anything and maybe some position swapping going on. remember, their low yield ever mid october 75 basis points. let's look at 30s in that same context starting to turn on the 23rd of october. this is 30 years, 21st trading session in a tight range of 3.03% to 3.10%. we are dipping below that 3.03% area. it's based on a close not intraday extremes. when it comes to foreign exchange, this is the year of the yen. not in a good way. look at year-to-date chart of the dollar/yen. we are above 1.05 beginning of the year.

that's over 12% lower. here is the chart you don't see much. let's look at the euro versus the yen. closed last year around 1.45, 1.48 now. you know what that means? down 12% against green back, down 2% against the euro. the strength in the dollar is weakness against some of our biggest trading partners. back to you. >> thank you, rick santelli. not just for the dollar. what a year for apple. apple trading higher, almost a full percent in a down market. how much higher can the stock go? gene munster raising his price target. he'll tell us why when we return. they challenge us. they take us to worlds full of heroes and titans. for respawn, building the best teractive entertainment begins with the cloud. this is "titanfall," the first multi-player game built

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one from piper. they raise it to $135 from $120, citing demand for the iphone 6 and 6 plus. joining us on the news line gene munster joins us on the phone. >> good morning. >> sounds like you are saying there might be shortages in

store. >> the gives and takes here are demand is supply has improved, but demand is still up. the dynamic like you said, people will wait for an iphone. that will improve demand in the quarter. investors' big concern when is this massive cycle going to end? >> we heard from some others in your line of work that this cycle is going to go on longer than we thought. that raises problems for 2015. why are you not worried about the next 12 months? >> in 12 months, we are going to have two things. this gets us through march. at that point we have to watch the expectations are low.

begin how wall street thinks about these new products beings it's going to get hiked up. that should be positive. separately is 2016 will likely be an up earnings year. won't be up as much as 15 over 14 but as you roll the multiple forward, you can still get to price targets around $150. time will be on apple's advantage. i think that there is reason to have patience with this and continue to hold on. >> gene, in summary, you raise the price target from $120 to $135 because you believe limited supply will extend the iphone 6 cycle into next year. that begs the obvious question. does apple restrict supply to get this response from you and the market? >> we talked to apple about that. their response is when people are in the mood to buy a phone and come into the store, they want to be able to purchase that. they do not game the system. i think that is a good policy of business. when people are in the mood to

buy something, to have it available. i do not believe this is a dynamic. they are producing a massive amount of phones right now. it's just hard to meet this demand. >> you mentioned positive commentary around the apple watch, which is debuting next year. i think it's interesting as a fashion accessory. why are expectations so low? how does apple itself think of it? it's classifying it here in the financial statement as an "other," but you putnams around this thing. why are you on it? >> positive on the impact to the multiple. impact to the business will be relatively small in 2015. part is how they are allocating. when you talk to consumers about the watch, they are confused about what the added value is to it. the applications that demand for

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best gainer on the morning, best buy on a good quarter thanks to the iphone. 32 cents beats by 7 cents. comps up even though estimate was down. breaking news on philly fed. dow down 54 points. this is a burrito made with chocolate, soybeans, and apricots. what kind of chef comes up with this?

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welcome back to "squawk on the street." rick santelli here. we have three important data coming up. first most timely november philly fed. business outlook. we are expecting that any second. we do have leading indicators for october up 0.9, much better than expected no revision to last month's 0.8%. philly on the late side here. we are expecting a number around 18.50. last look was 20.7. we have to come back because diane olick has something important on the read on october home sales. >> month to month to a

seasonably adjusted annual rate. the street was expecting a drop. we saw september numbers revised up to 5.1%. we are seeing an annual gain this year. home sales up 2.5% from a year ago. comparison is weak. if you remember last year, sales this time of year dropped off precipitously after interest rates jumped up. regionally in the northeast, midwest and south sales up. it was the west that only saw sales drop down 5% month-to-month down 3.4%. median and existing home price up 5.5% year over year. inventories also up from a year ago at 5.2% gain to a 5.1 month supply. the realtors still saying we need to see more housing starts to get back to a normal level. that's what's hurting the market right now. the most interesting thing in this report, what is the strongest segment to the housing

market? the $1 million plus range up 16%. back to you. >> thank you very much. let's go back to chicago. do you have philly fed? >> i do. everybody get near paddles here. this is a whopper. november philly fed, 40.8. there's only one number i see in my data base goes back to '90 that is a bigger number. that was from december 1993 at 41.2. this is a whopper on any level. let's look through the internals. employment 22.4. jumping basically 10 points from its last read. new orders an important area. 35.7 versus 17.3. i know our economy's improving, but i think the water in philadelphia has something special we should pass out through the rest of the country. back to you. >> i'll be first in line.

thank you. >> let's bring in steve liesman. this is a huge number. >> what rick said about the water in philly, i think he's right. this is a strong number. i wouldn't extrapolate this kind of strength in the overall economy from these numbers. i was looking at the employment indicator in this. it almost doubled from 12 to 22. the new order tells us things will be good in the future. all those are capital expenditures. 23 versus 18. all indicators here positive. i would not extrapolate broad strength but the word that comes to my mind thinking about this data is the imperviousness about the u.s. economy and what's going on overseas. we expect people concerned about a u.s. slowdown here. we are not seeing it in the data

what's happening overseas show up on these shores. in other data, core inflation. it's become the new all-important economic data. we are trying to figure out what the fed will do with interest rates. it rose more than expected in october. bank of tokyo saying yes, virginia, there is some inflation out there. this morning the headline was unchanged which was higher than expected. the core though up 0.2%. that takes out food and energy. year over year 1.8% was actually up a tick from the prior month. here's some of the details. your housing costs are up 2.7% year over year, prescription drug costs up more than 4%. airline fares are down year over year almost 3%. gasoline plunging 5%. services up normal 2.5%. a mix right there leading to that year over year of 1.8%. all this suggests no immediate

evidence that concern about lower energy and commodity prices along with european weakness and disinflation are going to pull down core inflation here in the u.s., which is what the fed told us yesterday it's watching carefully. if it happens, could hold interest rate increases. if not, we are on track for summer 2015 rate hikes. >> yield continue lower in the face of that better than expected news. dow cut its losses in half down about 30. best buy one of today's big movers. the company beating expectations for earnings and revenues, sending shares sharply higher. it is the best performer on the s&p 500. courtney reagan talked with best buy ceo. >> best buy sending a strong message this morning. don't count us out yet. a retailer many were betting wouldn't still be around let alone beating financials. beating the street by a decent margin on top line and bottom line.

posting positive 2.4% u.s. comps. analysts had been expecting a loss of nearly 2%. despite strength in the third quarter, the best buy ceo isn't so bullish for the holiday quarter. i spoke to him on the phone. what he said is we are excited about many categories and improved shipping for the holidays. he continued to say holiday season is hard to forecast. it's a competitive environment. a lot of mass merchants have promotions on consumer electronics, a category that has been volatile. when it comes to mobile phone sales, there are puts and takes. we are delighted to have innovation in the phone category but availability of phones is spotty. joly says mobile sales are by far not the retailer's biggest factor. while stronger than expected q-3 sales is a good thing, it may

cause issues if there is disruption at west coast ports. he says, we brought some inventory forward and because we had a stronger quarter, we sold some of that merchandise. our inventory was lower than we told investors it would be. the issue will be with replenishments. very interesting there. it's a good thing to sell that merchandise. when you sell too much and can't get more, it could be an issue going forward. back to you. >> inventory management. thanks courtney reagan. >> on top of best buy, retailers looking ahead to q-4 and that all-important holiday shopping season. let's get some insight. good to see you, tom. good morning. >> good to be here. >> are you a believer here? are stars aligning for retail with begat prices and weather? >> i think retail will be a little bit better. you'll see improvement at the lower end of the economic spectrum benefitting from gas

prices. i think the best case is the example of a company pursuing a winning strategy. not letting amazon take the market away. being aggressive on price. figuring out categories like computers where they can relay more of the risk to the provider. just doing a great job. >> a lot of people don't believe you can maintain a gross margin target even though near flat, in their words in that environment. how can they? >> they are a big player. people realize that having that product on display and seeing it if you are a vendor is very important to you. it's important to keep best buy successful. >> if you look at the category, best buy is the leader in terms of electronic retailers. radioshack is fighting for its life. sears had a big electronics business. talking yesterday about how lowe's and home depot are taking shares from sears. is best buy going to be the one remaining standout that figures

it out? >> the short answer is yes. circuit city is gone. i think best buy is a very strong national player who will strongly influence and dominate the marketplace. >> the nay sayers going into the holiday season say it's going to be promotional, heavily discounted, early. can you knock sense into this argument? if you were retailing ceo, you know you are going to have to discount right from the beginning. how do they account for that? how do they price, how do they buy? do they buy lower quality items in the knowledge they will discount? >> they try to buy stuff that will give away somebody else's gross margin. if you are a drug store you feature tuna fish. department store will feature electronics. the reality is black friday is the biggest myth of the world. it used to be black friday was the day you broke into the black. today it's nothing but red blood

flowing because they are giving stuff away. the smart companies say we are not going to play that game. >> they don't make money on that day? the real discount is a real loss to margin? >> the margin on the black friday specials is single digits at best and often negative. >> in this environment we had a lot of downgrades. a lot of them in apparel saying they had a nice run, don't get greedy. can you talk about what you might be buying or selling at this point? >> i bought best buy last year. i love the tile category. tommy taylor is a legendary home depot merchant. i think that will be a great category killer. >> keep that in mind. we'll have you back a lot more often in the next few days and

weeks. thanks. we are going to get you more valuable, actionable context around best buy, apple and the s&p later using the cnbc newest tool to empower you the viewers. once reserved for elite investors. nbc universal news group today announcing a strategic investment in kensho, a next generation analytic start-up, using the cloud to answer your complex financial questions within seconds. stay tuned for a brand-new dimension to cnbc's ever more powerful daily coverage. when we come back, more of david faber's exclusive interview with john malone. what the future holds for the industry. goldman sachs in hot water. who do you work for? your boss?

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welcome back. when it comes to conversations in the cable and content world, it is certainly a focus on bundling or on so-called over the top services that are beginning to proliferate, allowing the consumer at home to choose perhaps cut the cord on

their cable service and choose to use only the broadband for their video programming. while there are still 100 million plus households that get cable, the idea of cord cutting and shaving is paramount amongst investors looking at cable companies and those that provide the content they send over that cable. i asked john malone, a man who knows a thing or two about cable and content whether or not he is worried about the bundle coming unglued. >> the glue in the bundle is sports. the rough math is 30%, 40e% of households would elect to buy the sports programming at the wholesale price. no mark-up. just at the wholesale price. you have a world where 60% of households are paying for something so that the other 40% have access to it.

that phenomenon is really driving the bundle and the cost of the bundle. so there have been efforts at creating an alternate to the big bundle. my guess is eventually the cable world, the distributor world will try to build an alternative bundle around broadband. the differentiator will probably turn out to be the maximum. you can have linear, pvr to record your own at home in the traditional way or have that alternative bundle that is cloud-based interactivity. also contractually set up with content owners, but may not include sports. netflix is sort of that, if you think about it. it's an entertainment bundle

subscription driven. >> can access to wherever i want. >> i think what you'll see is more netflix, netflix clones, then you'll see some of those netflix clones cluster in the bundle. i don't think les moonves himself believes cbs will have a big subscription. if it's part of five or six others, and those are available to the consumer on the internet alternatively and delivered with full random access, all platforms, all technologies kind of thing, then that will probably start to grow as an alternative to the big bundle. >> how far are we from that? >> i think a lot has to do with the programmers, the nature of their existing distribution contracts so the flexibility they have and the flexibility

the distributors have under their contracts with suppliers. that's one of the issues that the fcc is looking into, which is the contractual limitations are interfering with a more competitive. >> with the evolution. >> with the evolution of this alternative. i think it's wrong for people to think the distributors won't be in that world. i.e. that it will be netflix over the top and you can ignore the distribution because reality is if netflix didn't have free transport, they wouldn't exist. so my guess is they won't end up at the end of the day with free transport. somebody is going to pay. either the consumer -- >> we get back to our original conversation. >> which was actually about title ii and whether there will be re-regulation or more regulation on high speed

internet service to the consumer at home. the whole idea of net neutrality. his conclusion, i don't have to worry. at the end of the day your cable company, comcast, our parent company, broadband is your key product and you are still a distributor of that service and therefore, you are still going to get paid. >> net neutrality in that is important from the final comments he made there. >> absolutely. very important in terms of how that is apportioned, whether you are able to charge those using it a fair rate. >> the debate right now. goldman sachs is under new scrutiny today because of its ties to the new york fed. our mary thompson has all the details. >> this is coming two months after damning tapes made by a former new york fed employee were made public. revealing what he alleges is the new york's fed soft approach to regulating goldman. coincidentally the day they were made public, goldman fired one employee involved in this latest

scandal. that employee is 29-year-old rohit bansal. he allegedly received confidential supervisory information about a mid-size bank from a former colleague at new york fed. information included in the report on the bank shared within goldman's investment banking division. according to an internal memo sent out by goldman, a senior goldman official flagged the information to compliance. the firm opened an investigation and contacted the new york fed. bansal and his immediate supervisor were let go and reportedly so was the employee at the new york fed. the new york fed is also looking into this matter as their rules bracketing when a former fed employee can do once they leave. bansal reached out for clarity once he started working at goldman, but the fed's guidance was reported lly ambiguous.

>> it's a culture of cross poll nation. with former regulators joining wall street firms and executives becoming regulators. vocal critics have been saying for some time this cozy relationship leads to lax overnight of the bank. the investigation is ongoing. i spoke to one person familiar with the investigation. they said right now it's still early, but it does appear goldman acted quickly in responding to this information that they knew was not supposed to be shared within the bank. again, the investigation is still early, but you have the department of financial services, u.s. attorney's office as well as the fbi looking into it. >> thank you very much. coming up, the buffalo bill stadium is covered in almost 250,000 tons of snow. the bills have a plan. it involves their fans and a lot of shovels.

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welcome back to "squawk on the street." check out gopro, the stock moving lower after a new filing said its $800 million secondary offering announced last week will be priced at $75. about 10.4 million shares are being offered. that's 5% discount to its wednesday close. the stock currently trading down over 5.5%. back to you. >> thank you very much. let's get over to rick santelli for this morning's santelli exchange. >> before we welcome our guest, we are going to do a little talk here. health care 1/6 to the economy, climate change will involve syphoning trillions from very developed economies on energy, in particular.

both seem to have turned into religions. mr. gruber is in the news everywhere slanting his knowledge to pull the wool over the eyes of the public. i personally think climate change does the same thing. so we have a real scientist here. her name is judith curry, professor of georgia institute of technology. educated with a ph.d. from the university of chicago geo physical science. i just learned we grew up together on the same block in a small midwest town. it is a small world. welcome, judith curry. >> rick, it's a real pleasure. >> i'm sorry with that lead, but that's the way i feel. you are a scientist. is the american public getting bamboozled about the issues of what science really means versus religion to pull the wool over people's eyes with regard to climate change? >> well, i'm concerned people

have oversimplified both the problem and the solution. climate is a very complex system and our understanding is very incomplete. all of the solutions that have been proposed to deal with human-caused global warming are fraught with unintended consequences. so we need to have, open up the dialogue and really try to get more realistic about the challenges and the possible solutions. >> it was our generation, judy, that created earth day. we understand we want to take care of the globe. give me some significant simple examples how the data is being skewed to the point of putting things over that aren't necessarily true. >> it's not so much the data is being skewed. it's how it's interpreted. the data are ambiguous and incomplete. the models are far from perfect.

>> give me some examples. >> related to oceans. >> degrees of warming. >> degrees of warming. we've warmed about 0.8, well about 1.5 degrees fahrenheit over the last century. climate models project that we could see very substantial warming, even up to eight degrees fahrenheit in the 21st century. recent researches suggesting that the climate models are running way too hot and their projections are really too extreme. and that natural climate variability related to what the sun is doing, the oceans are doing can be at least as important. it hasn't been fully accounted for. >> is carbon the real criminal that many want to make it out to be? >> well, carbon dioxide does

contribute to warming the pla t planet. how carbon gets cycled through the earth's system is complicated. it's stored in the ocean, it's stored in the soil, stored in plants. it's not just burning fossil fuels that perturbs this carbon balance, but our land use. how we farm. deforestation. >> we are running out of time. if you were in charge as a scientist about making rational changes we could all live with without pricing energy through the roof, what would the top priority be in the last ten seconds we have? >> i would forget about energy. i would worry about reducing our vulnerability to extreme weather events. that is something that will help us no matter whether climate changes naturally or from human causes. >> thank you. i want to have you back again.

let's not throw science out the window. let's use a scientific method. >> i'll take it. thank you, rick santelli. want to update our viewers on alibaba's planned bond sale. alibaba could upsize that debut bond deal to $10 billion. i have not confirmed this. alibaba also having received more than $55 billion in orders for that sale citing sources. regardless of where it ends up, whether it's $8 billion or $10 billion, it will be the debut in the u.s. fixed income market. twitter went public did, a bond deal. facebook went public did, a pond deal. part of the maturation of these companies. this company having gone public two months ago or so with a $280 billion plus market value. shares rebounded a bit. they've been down recently. there is some hedging going on

in the hedge fund community long yahoo and short alibaba in the belief yahoo is giving more details on how or what structure it may use to dispose of that 15% stake in alibaba it currently controls. yahoo shares amazing right now. they are at $51.50. >> a lot of targets around $80. >> $51.75. a lot of that due as we know to the alibaba stake which goes up in value or has until recently. >> let's get to jackie deangelis. >> good morning to you. the weekly storage report out from the department of energy. we had a withdrawal of 17 billion cubic feet. we were looking for a little bit of an injection here. this is a bullish number for nat gas prices which were higher before the report came out.

cold temperatures sweeping across the country right now. that is increasing demand for nat gas. certainly here on the east coast we are hitting records. it's been chilly. i do want to talk about the overall storage numbers we've seen. we are in good shape as we head into this winter. traders are saying this is going to trade on the weekly reports we get and what mother nature does to us. cool temps are going to increase demand. prices higher from there. the record highs we saw last year, 6.50. we are far away from that. we are close to $4.50. not great news for consumers. >> thank you. when we come back, with will apple be the first $1 trillion company? it's the biggest company in the s&p. stock's up more than 40% this year. can it reach the $1 trillion mark? twhat do i do?. you need to catch the 4:10

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we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules. want to show you a live shot of buffalo, new york. the area is covered in five feet of snow. about 140 miles of interstate 90. the main highway running east and west. remains closed today. no word when it will reopen. to make matters worse, there is another round of snow about to blanket the region with as much as three more feet.

the buffalo bills stadium blanketed in 200 tons of snow. the bills are asking people to help clear the stadium. they are offering $10 an hour and free game tickets to anyone willing and able to shovel the snow. we'll have a live report from outside buffalo in a few minutes to get the latest on what is becoming a very snowy situation there. >> you have to pay me more to see the jets. >> your family is from buffalo. >> years ago. they left never to return. >> we've been telling you about a revolutionary tool we'll start using here to add a new layer of context to the biggest story of the day. bob pisani is here to debut the kensho stats box. >> we have a strategic partnership with kensho, a company set up to do complex financial statistics and answer

questions. i've been using it for a few weeks. it's remarkable. we'll unveil the first kensho stats box. it will be a holiday theme. the s&p 500 traded higher in the last six weeks of the year. every year since 2004. every year for the last six weeks of the year. that is quite a statistic. let's open up the box and show you more statistics here. average return on the s&p 500 in that six-week period in the last ten years has been pretty good. 3.2%. that is a strong number. the best sector has been materials. that was a surprise to me, up 5.1%. the worst sector was consumer staples up 2.1%. let's talk about apple around thanksgiving. maybe this will be the next $1 trillion stock. it had a fantastic run in the four days before and the two days after thanksgiving. the period that we are entering

into right now. six trading days. it's traded positive, 90% of that time, the average return in those days, and we are talking six days, 6.9%. apple has doubled that. not necessarily obvious or intuitive. kensho will help us do a deeper dive on markets and show relationships that are not obvious or in some senses counterintuitive. we'll talk about today's earning, both beat and by how much and how much they historically do when they beat the numbers overall. bottom line, kensho will help us answer a lot of complex financial questions in ways that are much more accurate than we've been able to do in the past. it's a revolutionary system. we'll roll it out in the next few weeks and give more statistics. some will be quite surprising to

a lot of you. back to you. >> i'm excited to use it, as well. bob pisani, thank you for that. the first $1 trillion company. carl icahn say apple could hit a 13-digit valuation. >> rob we were talking earlier to gene munster who raised his price target. the reasons are a bit different. why are you more positive looking ahead to next on apple right now? >> 90% of the growth i have for apple next year is iphone. it all still comes down to iphone. the cycle looking very strong. so the question becomes, can it get any better than that? our math shows if you look going through next year, they are still going next year with less

than half their installed base on iphones having upgraded to a larger than four inch screen. there will be more legs to iphone growth. then from the multiple, we could see the multiple move higher for apple. their growth rate is reaccelerating next year. you have a company doing $200 billion in revenue that is going to grow faster next year than last. >> what is that going to mean for apple's share of the smart phone market? terms of revenues and volumes? >> great question. there is a big difference. i think apple will have 15% of the smart phone unit market this year which is the number everyone seems to look at. because they sell at such higher prices, i think they have about 35% of the smart phone revenue. a lot more revenue than unit share. >> at the heart of the note though is the way you frame how we should think about apple.

that is that it is a recurring model. it is very, very loyal base. from what you seem to be saying, in a closed environment, basically they will continue to upgrade again and again and again. you can rely on that. therefore, extrapolate further into the future. >> often people want to give product companies or transactional companies like apple a lower multiple because they keep having to sell a new product. our point with apple, if you look at their loyal installed base, it's unbelievably low in terms of people turning off going to a different platform. long as they keep giving people a reason to upgrade, you have a transactional business that really ends up looking like a recurring model over time. that's why you keep getting growth. >> if things are so flush, when do investors demand more? >> this is a company a few years

ago didn't pay any dividend or buy any stock back. relative to history, they've been buying back a lot of stock. >> right. does that go into another gear? >> i think that will keep going. investors want to see a decent chunk of that money back. >> what about this argument about ownership? we just got 13 nat institutional owners. is apple underowned by the big players? is there potential upside as people increase their ownership on some of these catalysts into next year? >> often people, even if they are equal weight feel like they are overweight. yeah. often investors aren't even up to where they should be to be equal weight. by definition you end up being underweight.

a lot of investors got caught flat footed earlier in 2014 where people did not own enough of it thinking they had time to wait for the new iphone cycle. they've been trying to catch up ever since. >> what's the biggest risk? what could go wrong here? >> the risk for apple is the same. they sell a premium product in a market that is otherwise a commodity market. they have to keep coming up with a product people think is better and are willing to pay up for. that sounds simplistic. that it's ongoing risk. or the challenge, anyway. >> they remain much higher priced. thanks for joining us. >> thank you. >> a second round of snow is about to hit upstate new york. another three feet set to fall in the area on top of the five they had. at least seven people have been killed. we'll get a live report from outside buffalo. how do you beat the number one seed?

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dow going positive even as we speak after a rough open. energy up sharply. rising more than 1%. kate rogers back at hq with more on that. >> that's right. energy is the best performing sector in the s&p 500. the sector rebounding after its latest sell-off. after being the best performing sector for the year, it's now the only sector in the red. leading the way higher, nabors industry, chesapeake energy among gainers. >> thank you very much. parts of new york state, western new york are already covered in about five feet of snow. now they are about to get pounded with another round. the weather channel's mike

bettes is live in new york outside buffalo with the latest on the situation there what have you got for us? >> i've got to tell you, the big question with with all this snow, where do you put it? you pile it up mountains high. we are standing on a big pile of snow about 12 feet high. big front end loaders have to literally pick it up and move it because you can't plow this amount of snow. this is a huge pile of snow we have here. it's good we are getting rid of it. big rigs like this that have been stuck have to be places. these are two big production trucks that need to be at the patriots/lions game this weekend in foxborough, massachusetts. once they get to buffalo, things should be clear sailing. we are hopeful they will get out of here after being holed up here since monday night. a travel ban has been in effect.

it has had an impact on the economy. there is nobody going to work, no businesses open. gas stations. they don't have gas because the tankers haven't been able to get in there and refuel them. their shelves are cleared out. about the only thing they are selling is lottery tickets. i would say a lot of people in western new york are not feeling all that lucky. >> or maybe they think their luck will turn. mike, good to see you, mike bettes there. goldman sachs executives getting grilled on capitol hill over allegations they deliberately manipulated commodity prices that. report live from d.c. when we come back. ♪

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we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules. and in washington, d.c., goldman sachs is on the hot seat defending itself from accusations that it deliberately manipulated commodity markets. kate kelly is in d.c. with more. >> good morning simon. i'm just walked out after combaten hearing here on capitol

hi hill. where senators were yelling at the goldman sachs commodity executives over the handling of the metal storage business which the senators argued was manipulative. their contention that some of the client incentives these guys paid metal storage facility users effectively pushed up the price of aluminum in the country. the price reached an all time high just this month after climbing for several years after goldman sachs got into this business for the first time in 2010. senator levin has had a number of these hearings but today he really seems on the warpath about these practices. listen. >> goldman has the ability to manipulate the lme price by manipulating the midwest premium. and then to make trades taking

advantage of that manipulation. gold man's ability to influence any portion of the price for a key component of the industrial economy is simply unacceptable. >> now of course goldman sachs executives trying to defend themselves here today simon but senators levin and mccain aren't buying it. they are really grilling these guys. >> briefly if you would, kate. could this hurt goldman's shareholders? how far does this go? >> this is i think is a somewhat contained part of the business and small piece of the overall balance sheet. however the 400 page report details other commodity prices goldman has including their efforts in the uranium business. which is a key component of the nuclear energy which is risky in

general and they are still going to be in it at least in some capacity until 2018. and many other commodity holdings. coal mines in colombia that carry environmental and human issues and a variety of trading and other possible physical assets. >> good to see you kate. thanks for the information. >> the subject straight out of her book as well. now over to jon fortt with a look at what's coming up next. >> you don't want to miss it. streaming is counting in the ratings. hbo go is going over the top. and the ceo of time warn ears hbo uniter on "squawk alley." and watson is now going to hire its own coworkers. hide under your desk elon musk. we're going to have i bbm to explain. tune in to "squawk alley" come ugh. the holiday season is here,

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habit burger. now about 800 million. check out this price action in the opening trade. up 90%. >> do we know how much the float was? that's crazy. >> it was priced to pop i guess. originally intended to price at 14 to 15 a share. raised to 18. this is a santa barbara company. >> tiny. >> it's a small company. correct. but you have seen this growth in other upstart fast casual restaurants. there is demand >> okay. over to "squawk alley." >> good morning.

8:00 a.m. in cupertino california. 11:00 a.m. on wall street. "squawk alley" is live. welcome too "squawk alley." joining us this henry blodget. also jon fortt, kayla tausche as always. interesting day. dow made up a lot of ground. philly fed looked pretty good. the question is is apple going to be the first trillion company. shares above