>> that's it for "squawk box" today. look at the futures one more time. it's going to be whether you attribute it to china or the idea he might do something, then he did it, draghi with buying some asset-backed securities. join us monday. "squawk on the street" is next. good morning and welcome to "squawk on the street." i'm david faber with jim cramer. we are live from the new york stock exchange. let's give you a look at futures this morning. we are set for a broad rally right now as a result of things you just heard about on "squawk box." we'll talk about, as well. how about that ten-year note yield? i'm curious to see where it is myself. okay. there we are. crude oil is up. i know that. for the first time. we are not yet anywhere near where we were at the beginning

of the month. that being about $80. we are moving higher. you see this morning. our road map starts with what you might expect. these markets are surging overnight on central bank action. china unexpectedly cutting interest rates. mario draghi promises more aggressive stimulus in europe. it is a big morning for dan loeb. dow chemical and third point reached an agreement. management changes at hertz and sotheby's which loeb is on the board of also expecting to change their ceo soon. on the earnings front, gap cuts its profit forecast. that stock is moving lower. and the president announces executive action on immigration. there are vast economic consequences. house speaker john boehner will respond in a few minutes. want to start off welcoming back my friend. my dear friend. >> thank you. >> thank you for being back. your dad wants you back at work.

>> bop loved you. you know that. you knew that for many, many years. pop loved you. >> i did. he loved the work we did and he wanted you to get back to work. >> he did he loved this show, loved our partner carl. that's me and pop at the eagles game. there is me and pop at gino's. i'm glad i'm back. that's what pop wants, pop wanted. he loved the show. he loved this network. he watched it religiously. the darn hospital didn't have cnbc. that was a crushing blow for him. he wanted me back to work. he wants everybody to watch this network. he loved it. loved "mad money." 7:01 p.m. pop telling me what he liked, what he didn't like, which ceos were phony, which ones were worth buying. he had the goods. >> he did. i remember him from the "squawk

box" days. >> a huge supporter of ours. jim, we are going to get to it now. talking about business, of course. the dow are poised to open at record highs thanks to central bank related news. ecb has begun buying asset-backed securities amid concerns of low inflation or lack of inflation. the people's bank of china takes steps to bolster that country's slowing growth. announces a cut in its benchmark one-year loan rate by 40 basis points which is now 5.6%. the first reduction they had there since 2012. adding fuel to the fire, so to speak, broadly speaking, of course. our fed is the only one that seems to be moving in a different direction. >> our earnings and revenues are the only ones moving. >> policy divergence is interesting today. we didn't mention japan. the yen getting stronger today for the first time in a while. this policy divergence is interesting. will be interesting to watch how it plays out and what effect it

has on markets around the world. today very positive. >> to me, it almost feels like worldwide action. like yellen will come out later today. >> what would she say? >> i think that these moves are great. mouthing something positive. when everyone else is loosening, she is tightening. germany must play ball. i don't care about draghi. i need merkel to come out and say draghi's right. draghi's not been the man. he has the major country against him. china is huge. the housing rally is cool. china was going all the way down. >> what do you mean when you say that, it was going all what it down? >> i look at copper. i look at iron. iron. i look at raw materials. i say to myself, they have to do

something to get that economy moving or this government, which is the government doesn't fall over there. >> no. to put it in some perspective having been there last week and driven back and forth from shanghai, hunxao. beyond the pollution which is incredible. there is an endless sea of cranes. they are moving at a rate that is incredible. >> right. >> incredible. it's maybe it's not quite the rate it was. >> it is still rural to urban. it's still the industrial revolution. if they actually did something to try to fix the infrastructure. i know they are trying, but they are still putting up coal plants. >> they could try harder. >> they. >> they are making a choice not to. >> right. the deceleration of china, which is in part and parcel the

deceleration of europe. no matter what we do, every area other than india, i don't want to say is falling apart, but is slowing. europe is falling apart. if germany stays the course, i'm not kidding, it's going to be social unrest there. >> i think it's a good point. in conversations i have with ceos who have businesses over there and really see it, they will tell you typically sotto voce. not good. >> europe is falling apart or europe is my achilles' heel. >> they wince a little bit. >> they do. it's 700 million people. a lot think germany is a disgrace. >> is merkel going to play ball? do you think that will happen? >> germany ought to rethink what happened in the '20s. i don't want to tell herbert hoover in a pantsuit how her country worked. it was deflation. she ought to get with the history.

>> draghi said if on the current trajectory our policy is not enough to achieve this, that being get things going, further risks to the inflation outlook materialized, meaning deflation, we would step up the pressure. do even more, broaden even more the channels through which we intervene altering the size, pace and composition of our asset purchase. >> that market is not that big. what matters is infrastructure and german spending. what are they doing? they are following hoover game plan. that's where the social unrest will be elsewhere. they have done their best to foment on their size. our president doesn't put pressure on germany. they are our trading partner. it ain't spain's fault, not italy's fault. france has to do more. germany is going to get draghi's

got mexico and a balanced budget. they are a disgrace. my inlaws were from germany and they are good. i mean enough. enough. >> we move from the broad macro themes on this idea of easing to another theme which is activism. really such an influence in our overall markets and what's going on in the board rooms around this country. this morning dow chemical and third point reached an agreement. dow is going to add four independent directors to its board. third point will vote in favor of those nominees at the 2015 annual meeting. this of course putting aside what might have been a very nasty proxy fight that many of us who follow this closely expected might very well come to the fore. dan loeb made no secret of his desire to see dow potentially split the company.

that he is not as enamored of the ability of management to execute effectively as he might otherwise be. this does distract the heck out of you. >> how about 25% of his time? >> let's talk about these gentlemen. steve miller. he is not a joker, toker. >> he is a professional board member. >> ray took foster wheeler with him when he retired. he was a guest on "mad money" he is a hitter. ray is not going to stop until they do something. these are the kind of guys who will be activists internally. i continue value.

look what he did with foster wheeler. it was a company that was going to go out of business. miller is a total heavyweight. >> the nonexecutive chairman for aig for some time. >> how many times have we seen him do great things? >> he is a serious guy. i would point out dow's board will now increase from 10 to 13 members as of the first of this year. this does put to the side the prospect of a nasty proxy fight. >> it was going to be ugly. >> liveres will seep his job. >> returned a lot of capital. one of the best performers in the s&p. best performer in the chemical group. >> as you know, loeb's charge is it can be performing so much better if they didn't do stupid stuff. which he believes is -- >> i look at it the other way. a lot of other chemical companies have done more stupid

stuff. i am friendly with nelson pels. i find the new-found activists are going after companies that would be going after stocks that go up anyway. they can't lose. >> we made this point. many seem to target companies where the downside would be limited. dow is up from $30 at the beginning of 2013 to where we are now is not a bad move. >> activism got to jc penney. >> we have house speaker boehner getting ready to issue a statement on president obama's action on immigration. we'll take you to capitol hill when somebody shows up behind that podium. let's give you another look at futures this morning. broadly speaking, a very strong rally as a result of all that

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there is speaker boehner responding to president obama's move on immigration. >> all year long i warned the president that by taking

unilateral action on matters such as his health care law or by threatening action repeatedly on immigration, he was making it impossible to build the trust necessary to work together. as i warned the president, you can't ask the elected representatives of the people to help you enforce the law when you can't be trusted to enforce the law. the president never listened. he refused to listen to the american people. the president has taken actions he, himself, has said are those of a king or an emperor not an american president. he's doing this at a time when americans want nothing more than both parties to focus on the bigger problems in our country. >> the action will only

encourage more people to come here illegally. and putting their lives at risk. this is a humanitarian crisis. this punishes those who waited their turn. with this action, the president has chosen to deliberate ly sabotage any chance of enacting bipartisan reforms he claims to seek. as i told the president yesterday, he's damaging the presidency itself. president obama turned a deaf ear to the people he was elected and we were elected to serve. we will not do that. in the days ahead, the people's house will rise to this challenge. we will not stand idle as the president undermines the rule of law in our country and places lives at risk. we'll listen to the american people, work with our members and we will work to protect the

constitution of the united states. you all know what the rules are. >> mr. speaker, the president says you could have prevented this, mr. speaker, by showing that the house was going to take action on comprehensive immigration reform. did you miss the boat? >> the president made 38 unilateral changes to the affordable care act. the president repeatedly suggested he was going to unilaterally change immigration law. he created an environment where the members would not trust him. and trying to find a way to work together was virtually impossible. i warned the president over and over that his actions were making it impossible for me to do what he wanted me to do. >> mr. speaker, can you tell us how you plan to respond how the house plans to respond and

whether or not you agree with chairman rogers given how these things are funded, the power of the purse through appropriations is not a constitutional avenue to fight this? >> we are working with our members, looking at the options available to us, but i will say to you, the house will, in fact, act. >> can you renovate that? can you reinvigorate it and move that forward or start from scratch? >> as i said at the beginning of my remarks, we have a broken immigration system. the american people expect us to work together to fix it. we ought to do it in the democratic process. moving bills through the people's house, through the senate and to the president's desk. thank you. happy thanksgiving. >> that was speaker boehner responding to the president's move on immigration last night with some very strong words.

warning the president saying the president can't be trusted to enforce the law. saying he sabotaged any chance of bipartisan cooperation and essentially saying we are not going to stand for this. >> what am i going to say? the fact we have to talk about this stuff. the fact this is where we are back is not good for the stock market. i'm not going to talk about immigration. my beliefs don't matter. the discord, the lack of acknowledgement by the president about the tuesday win by the republicans, the lack of the republicans being able to agree on this issue for years. this is the talk of shutdown. this is the talk of debt ceiling. this is the talk of things that caused an incredible sell-off. just be aware of that. i'm not saying boehner's right, the president's right. i'm saying this is the stuff of declines. if we have to start worrying

about all these darn things again, about some sort of budget and we have to have treasury secretary on, hold up the budget, hold up the debt ceiling, hold up the payment of the bills, the market doesn't matter. >> immigration reform, tax reform, energy poll system not that any of us expected it would take place over the next two years, it seems to have diminished any possibility. do you believe that to be the case? >> yeah. i think there was a sense, again speaking from the market. when the republicans had their win, so to speak, that this would cause the president to alter his view. those who believe in the president, believe in those positions, god love you. those who believe with the republicans, okay. i am talking about the market. it means all the things that hurt the market. i care about the darn market.

>> yes, he does. we'll get back to talking about that market. we've got cramer's mad dash as we count down to the opening bell. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. get to the terminal across town. are all the green lights you? no. it's called grid iq. the 4:51 is leaving at 4:51. ♪

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we are setting up for a far higher open this morning on this last trading day of the week. because it is friday. i have a keen sense for the obvious. it's time for the mad dash. we have a lot of different earnings. >> people have to understand some guys execute better than others. even with the lower gasoline prices and it's low.

even with employment getting better, an outfit like gap stores, they just don't have it. they don't have the assortment, the merchandise, they are not executing well. this is like an urban out fitters. you've got banana republic, gap, old navy. the opposite is foot locker. they have a conference call. there is a big bull market in foot wear. this is part of it. nike boosted the dividends. it's a bull market. it makes me want to go back to finish line. >> i see it with my 12-year-old boy. holy cow. >> personalized sneakers, everything. you are talking about one of the great operators. again, ken hicks credits his team. i credit ken hicks, he's good.

game stop. i thought they could pull it out. the stuff is, the research today is -- could they screw it up again? take two has been terrific, activision. it's best buy that did well. game stop has a transitional quarter in terms of the hardware. still, i mean you can't own the ones that did badly. they don't come back. >> when you see what you think is a misstep resulting in a quarter that didn't go well -- >> don't bottom fish. buy vf corp. 50 states had 32 degrees. >> we'll keep an eye on all those names. talking about activism, not just dow chemical. we'll have a rally if you're long this market. female announcer: it's posturepedic vs. beautyrest

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hertz put a new ceo in. john tague. you have icahn's people on the board. holder had been rattling the cage. never seen a proxy fight going after a board that's already had activists on it which goes to the point of usually you want to wait to appoint your activists when the nominating deadline is done. it's not clear janet is going to do anything at this point. i call it a mixed review is what i've heard about this appointment of this new guy. a lot of hedge funds wanted scott thompson who ran dollar thrifty. >> he brought out tremendous value. hertz would be up big. chairman and ceo of great wide logistics. before that eight years at united airlines as president. knows the travel industry. i don't want to prejudge. it's not the guy they want.

>> we'll see. the stock not doing much. in contrast with sotheby's. let's get to the opening bells. as we are poised for a rally. you hear that bell right here. s&p 500 looking pretty green. that was monogram residential trust ringing the bell, celebrating an initial public offering today. over at the nasdaq, fast casual burger chain the habit restaurants celebrating its ipo. >> people love that one. i got a lot of outpouring when i said i didn't know it, it's regional. they do love it. it's not in and out, which is another one. we are getting two things that haven't happened here. ross stores, great quarter. retail and oil go up. people said oil went too low.

retail's got that tail wind additionally of employment. this is the best of all possible words moment. >> right. >> europe's got some religion. china, we've been waiting and waiting. >> guess we've been waiting. right. china is much more about the commodities story. it's not a great deal of incoming demand in terms of on the consumer front. it's almost reverse, about 33% of the economy versus 67% here. >> one of the things people have been talking about is china has been importing. it's very difficult. 500,000 barrels less. obviously, they tripled production. eagle ford tripled. there's been too much oil in the world. people say wait a second s. maybe this helps. every little bit helps. tech's good. cisco, ever since we had john chambers on, that thing is an animal. >> up 23% year-to-date.

>> he said if anything goes good, emerging whatever, not being glib but john chambers delivered a good quarter. people got that. they saw through the down beat thing analysts focused on. >> some of the names in technology are something to see in terms of the year-to-date moves, whether it's hewlett-packard, of course, or microsoft over 30% this year. apple. >> apple was best performing small cap tech. >> as it approaches $700 billion in market value. back to retail then back to activism. you mentioned ross stores. it was 93 cents a share. revenue above estimates. >> i think people felt tgx. it's a growth retailer. tgx and fit like the dollar stores. they fit this moment. ross stores had been a great

growth stock. the retail analysts were so thrilled to get back to even. not realizing if they had been season players, and some of them are, this is the beginning of a run in retail, not the end. this was an old story when i was hedge fund manager. oh, my god, they finally moved. see you later. no. these were great growth stocks. walmart could go back. these were not steel mills. >> walmart could go back? isn't it expecting real growth there? >> target had execution issues. i like what i saw at cornell at target. it's a ceo-centric retail. i know retail because of pop. when i first met mickey drexler,

i said i know the secret of retail. i said inventory. how did you know? >> i'll never forget touring a store with him. we got to the back of j. crew and he said here's all our mistakes where they have the on sale stuff. >> when you have lesson sale, which is what i'm saying is happening for the holiday season because of the cold weather, this is what my father lived for was a christmas season because he disappeared for six weeks because of the holiday season. when you had this kind of weather and this kind of employment and this kind of overall good feeling because of gasoline, they can't stock stuff. this is ideal weather. stay long retail. >> all right. we mentioned foot locker. gap the other way. ross stores. let's get back to activism as a huge theme. this morning, spoke to a professional in the m&a business. 12 different outstanding

activists matter. 12 going on right now. some public, some not. >> more to come. >> of course there are. we are just in the season now. the nominating season. the deadline can approach if you want proxy members. may, june is on when we see them. sotheby's we saw that occur. dan loeb yet again figuring into that. he sits on the board of sotheby's with two other directors. i'm hearing it wasn't just about loeb here. it was the board. dominic said it's time. we are going to look for a new ceo. you stay in the job till we find them. that will be in the spring. the stock responding positively. you see up almost 8% to the change. coming change. >> there are shorts there. this is a stock, if you believe

inflation is coming, master works mansions kept their value even hyperinflation situation. it's always been people who think after deflation we have hyperinflation. these have kept their value. >> when you lose a proxy fight as they did at sotheby's, it does concentrate the mind of directors on the future of the company. apparently they were all in unianimity here. >> i hear you say there are many more to come. what a great market. these guys just want -- okay, who is really doing really well? it's not like they are going after coca-cola. >> nothing is offlimits when it comes to activism. nothing. it does take up a lot of management time to consider whether something will come. for example, there was a rumor

yesterday that i don't believe is true about ackman and ups. you can bet ups is thinking about it or getting ready for it, should we or shouldn't we be ready? the fact is i don't think it's going to happen. employees control the company to a certain extent. my point is, doesn't matter how big you are. doesn't matter how well you've done to a certain extent. activism is a theme here that frankly has had more momentum than i might have anticipated even a few years ago. much of that coming from so many assets moved in here. byron was saying there is more to go. i hear what you just said, there is more to go. >> more to go. dollar tree. >> i love dollar tree. pop and i used to go there for our candy. >> that is now above the collar. that's adding value to its bid,

to its not bid, to its deal to acquire family dollar. >> all the language of the release was about how we are the favorite guy. >> that helps. >> they are a great operator. >> as we move toward the december 23rd meeting. they are still dealing with the ftc, perhaps more difficult than they thought which brings the point up how hard would they be for dollar general. >> educate me and our viewers. the difference between the halliburton/baker hughes break-up theme and this. >> if you are a board you want certainty of close. it's one thing if a company is willing to offer a big price. if you can't get to the point where you can have that, take that in, you're nowhere. in the case of dollar tree, they've got hell or high water, they said we'll do whatever it takes. therefore, shareholders don't have to worry. we'll deliver the economic value we say we will. the family dollar board feels dollar general has not done enough to address their concerns

about what would need to be divested if they agreed to take their bid as opposed to dollar tree bid. they want certainty. whether you get there is a big question. halliburton is in decision talk for $7.5 billion divestitures and a break fee. >> these are speaking loudly but more importantly paying money. the money really talks. >> yelp. >> people have to understand that. let's get to somebody who educates us every morning. bob pisani on the floor. >> talk about a tidal wave of liquidity. people's bank of china lowering the one-year lending rate, mario draghi implying he might be purchasing sovereign debt. we have a tidal wave of liquidity. not surprising when china acts we are seeing commodities move to the up side. brent crude. iron ore is up. zinc is up.

palladium is up. industrial metals as well as precious metals. all higher. even in the u.s., nucor, vulcan materials. all that on the up side. unfortunately, the history of rate cuts in china doesn't necessarily lead to a lot of move in chinese stocks. the people's bank of china cut interest rates seven times in the last, since 2008, as i recall. since then, five days after, the china etf has been up twice, down three times and flat twice. in other words, there is not a clear trend in the days immediately following rate cuts in china on the biggest china etf. this is a basket of chinese stocks that are out there. it's a sort of difficult play to figure out how to make money on this. certainly, for sure, day of we see moves in material names.

that is a very clear move, as well as moves in financial names on top of that. let's move on and talk about it. this is courtesy of our friends at kensho who we have a strategic partnership with. talk about the earnings here. food inflation. i've been pounding the table on this. fresh market, one of many companies this quarter who came out this morning and said gross margin decline was due to the company's decision to absorb higher cost inflation, higher cost inflation and continue promotions in key product categories. they specifically blamed higher food costs for part of the problem there. they came out and you see the numbers there. they lowered the high end of the 2014 guidance. fresh market came out and essentially did the same thing or zo's kitchen did the same thing saying their margins decreased because they had higher commodity prices. beef and poultry. that's the down side. they had no guidance there ann

taylor, 72 cents above expectations. ross stores had a good report overall, 93 cents, well above expectations. gap was to the down side. their revenues were light. an ipo down here. they've been trying to get a lot through. neff corporation. the talk was $20 to $22 and it just opened a moment ago $14.75. we are at the highs of the day. dow is up 161 points. back to you. >> thanks, bob pisani. now to rick santelli in chicago. you know, there's been months on our show where the fundamentals of europe looked dismal. the trends of china looked as though they were weakening. the trends in japan, you draw your own conclusions there. yet all the economists and analysts and stock pickers were enarmored with the underdog mentality. buy into them. now you see why.

they do have lots of hope in test tubes. it's rightly so. at least for a time, a lot of things boost financial asset prices. today is no exception. except for maybe in the fixed income market in the u.s. look at an intraday of ten year. going nowhere quick. actually yields are moving down. looks to me the 19th day we are going to be close in the range of 2.30% to 2.38%. look at the scale. that's what you want to look at on the right side. automatic scaling makes everything fit the chart in a big way. boons. 20-year chart. basically basis point and a half away on their lows of making a new all-time low yield. the problem seems yields just aren't low enough, right? if you look at a boon versus ten-year chart and i like this one. this goes back to the summer of '99. we are very close to that 1.57 level from mid september to make

an all-time new pass, at least going back to that point in time. call it 14 years. here's the real trade you need to be watching today. if you go back a little bit on a one-year chart of that same spread, look at what it's been doing and pay attention. that will keep you out of trouble in tens. yen. everybody is talking about the yen. let's talk about china. if you are in a round pool and the baseline for any currency is another currency, you can only swim so far. everybody's now in that confined pool. look at the 20-year chart of the chinese currency versus the yen. that is very important. now you are getting into that asia kind of currency war. we want to pay close attention. if you look at that chart actually, we wanted to, 20-year chart. look at another chart. look how the euro figures. let's look at the chinese currency versus the euro. this chart is going back to about the summer of 1999. you can clearly see what's going

on there is a bit different than what's going on with the yen. the dynamics are the same. we'll start seeing the big exporters all get into a raucous. the dollar mostly will continue to benefit. back to you. >> thanks very much, rick santelli. coming up, goldman sachs' chief u.s. equity strategist. he'll share his market outlook for 2015 in a live and first on cnbc. also ahead, it's where it all started for alibaba. and where it is still happening now. a special look inside jack ma's apartment.

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the s&p is up. even with oil prices going up, they did spook the market going down because of the commodity complex and what's going on in china what's going on there, they reduced interest rates. the deceleration had people concerned. >> they buy caterpillar. helped by a steep buy. this happened repeatedly. they come in monday and will cut rates again. they tend to be doing okay in china. it's going to take more than this. >> alibaba is up almost 2% this

morning after the company raised $8 billion on what was its first bond offering here in the united states. quite a successful bond offering. coming later in the show, we'll take you inside the very special, rather unexpected place where alibaba's brain trust gathers to still work on important projects for that company's future. you're never going to believe what is going on inside this nondescript apartment. >> they do have a beautiful headquarters that we'll show from you alibaba. the stock is up this morning. yesterday i was talking about hedge managers. >> they await word from yahoo.

that may be well over a year away. did want to get to dish. you and i have not been together on the show since tuesday. spectrum offers continue. we are up to $30 billion now. >> you called this so right. >> the reserve was 10. we are way past what expectations were. >> this stock goes much higher. you brought this to our attention as you did with directv. these are companies that are uniquely motivated to make money for the shareholders. dish should not be sold. >> that spectrum position is quite significant. we don't know if there is a third bidder. there was a third bidder. this balance sheet may keep it from being that aggressive. yesterday i brought this whole

idea of google. i want to pour cold idea on the idea of google changing its business strategy enough to get into the business of not just buying but building out spectrum. capital needs for doing that are astronomical. as one well-known banker put it to me, you are going to shred that incredible business model? i don't know. we'll see. we've got jim and stop trading after this. 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. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today.

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it's time for jim cramer and stop trading. >> we talked about foot locker. there is an amazing shoe bull market whether it be decker, uggs, under armour. nike. 17% dividend boost. this is an extraordinary stock breaking out here. it's a chinese play. they did well in western europe. i know it's expensive. i also can tell you, it goes higher. >> it's expensive but worth it is what you're saying. >> yes. >> what's going on with this foot wear craziness? >> less price sensitive than you thought. more personalized than you thought. china, this is one of the few signs of you can do conspicuous

consumption with sneakers. it's such a well-run company. people so underestimated the power of this brand which may be the best brand we export in the world. >> what do we have on "mad money?" >> we have exact science because of colon cancer. >> bill ackman is in there in a big way. >> they've done some amazing vaccines for animals. they are the industry leaders. spin-off of pfizer. you are only one step ahead of the activist posse. >> it's quite something. think this morning between dow, sotheby's, hertz. >> i have a tribute to my father. we did some great stuff. my executive producer we did some great stuff for pop. i have nice stuff on twitter, my

arm around him and his arm around me for the philadelphia eagles. >> i'm glad you were here today. not sure how you did it, but you always surprise me. >> pop wanted me here. that's enough to say, right? >> thanks. hang in there, buddy. simon hobbs has a look of what's next. >> brightest and best. goldman chief strategist david kostin will join us live. we'll be joined by the ceo of am cnet works to talk about the broadcasting industry. you, david faber, will take us inside jack ma's apartment.

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a very good morning. welcome back to "squawk on the street." carl is off today. sara, take us through the markets. >> a celebration friday morning on the central bank action. record highs for the dow jones industrial average, for the s&p, 14 1/2 year highs for the nasdaq and fifth week in a row of gains for u.s. equities. looks like we are going to end this one on a high note. >> i will mention where we are on oil. you have day two of a rebound

there. speculation to what exactly opec might do when it now meets on thanksgiving day. road map starts with stocks. all three indices in rally mode. trading at new highs. goldman sachs' chief u.s. equity is here to weigh in. >> ceo of amc joins us for an exclusive interview. what he has to say about the future of television. >> an exclusive look inside jack ma's apartment where he lived when he founded alibaba and where some of the best ideas are generated now. >> with we start with the top stories and the markets. 150-point rally. mario draghi urging the need for an inflationary boost across china. could a central bank rally boost us in 2015? goldman sachs out with its new equity outlook expecting 5% higher u.s. equities for next year. david kostin first on cnbc for

goldman sachs. i'm eager to get to this with you. we are clearly seeing the boost from overseas central bank action. can that provide us with more than just a temporary lift for u.s. stocks? >> want to focus on the path of the market for next year and what are the key drivers? that's likely to be the interest rate dynamic here in the united states. certainly a liquidity-driven rally around the world. that's only a positive for global equity markets. from fundamental perspective, 70% of revenues of u.s. corporations is domestic. that's the source of the underlying driver of the overall market. think about path of the markets likely to be higher in the first part of the year. and in the second part of the year when the fed does hike rates, that historically and our model suggests we get pe multiple contraction. you have market rising to around 17 times forward earnings. then a contraction close to 16 by the end of the year. >> why are you playing this idea

down of heightened volatility for markets as the federal reserve begins to lift interest rates, with which is a common theme? >> the u.s. economy is growing about 3% for next year. in that environment, historically speaking, volatility is low. the disbursion of returns is also low. a challenge stock picking in choosing stocks in a narrow disbursion. >> is this a projection of 5% total return next year, is that dividends included? >> you're looking at price gain 3%, dividend yield 2%, around 5% total return. >> i was taken by what your economics department put out earlier in the week which is this benign scenario that we are going to have three years of above-average trend. above 3% growth. then we slow down.

you get the first rate hike in 2015. then very, very gradual you only accelerate in 2016. i would have thought three years of growth above 3% would be a very, very good environment for stocks, they would return more than 3%. >> it's a very good environment for economic growth and for rising sales and rising profits. that is ultimately the driver of the market. remember, our starting point for valuation is pretty high, historically speaking we are at a higher end of the range. in that environment, we would expect the appreciation of the market to roughly match the growth rate. >> is it fair to say the fed stole the gains or we got the gains early from subsequent years? >> 60% expansion of pe multiple from ten times 16 or higher than that. that is the story, the narrative of the last couple of years. you had a great rally in the market. it's terrific. moving forward you think you're looking at around 6% annualized

return as a type of expected return you should anticipate. >> i've got a vintage piece here. i went back to last november and pulled up your forecast for 2014. our 2014 return forecast reflects the rising albeit decelerating profit growth and slightly lower p/e multiple growth. china, japan and europe will grow by 7.8%, 1.6% and 1.5% respectively. some of the calls you got right. >> the thing about last year we forecast $116 of earnings. we came in $116. that is where we are tracking now. next year $122. that's your earnings side of it. the pe, the economy did not grow as rapidly as was originally anticipated. had a lot of changes in dynamics in the market in terms of the drawdown with some of the high multiple sale stocks in february. the drawdown in october. then the big rally back.

broadly speaking the market has been following a trajectory on a move higher. remains our forecast next year. >> what's been the big surprise? was it the rally in treasuries? >> rates much lower and expectation before last year was rates would go above 3%. rates stayed low. some lower than we would have anticipated. >> can i come back to the central projection of 5% return next year? 3% on price 2% on dividend. if i'm paying tax on that 3% gain so it comes down to maybe a 4% overall, it's almost worth paying off my mortgage and investing in the stock market, isn't it? >> it depends on -- >> i'm taking a risk for a very minor reward as far as you're concerned. >> i think the return, opportunity in equity market is pretty attractive relative to other things. depends what kind of mortgage you have. >> should you be looking to buy stocks that are paying dividends and rushing cash to

shareholders? is that the team over capex increased spending? >> i think that is correct. a couple of strategies in a narrow disbursion environment need to find ways to return. one u.s. companies selling domestically. that's one of the great trades happening this year. that would be one strategy. second strategy is companies where there is return in cash to shareholders. dividends and buybacks. we like the combination of both of those. buybacks for the next year rising around 18%. dividends around 8%. third thing would be low turnover stocks. >> in other words, sell stocks with high average daily volume as a percent of that their free float. >> low volume stocks, low turnover stocks tend to outperform. you get a better return. high turnover stocks at a better lower volatility. that's an attractive trade in an

environment investment strategy when you're looking at roughly mid single digit number. >> what is the best industry group that fits your criteria? >> technology. energy attractive. >> nasdaq 14 1/2 year highs here? >> valuation so it looks attractive. >> dave kostin, thanks for sharing your thoughts on next year. chief u.s. equity strategist from goldman sachs. the cut to its profit forecast pushing the stock down. will a makeover in the corner office set gap up for success in the future. >> gerald storch joins us live to weigh in on the state of retail as we head into the all-important holiday season. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through.

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guidance with that holiday quarter left to report. gap forecasting profit will come in a range of $2.73 to $2.78. that's down from the previous estimate of $2.95 to $3 per share. again for the full year. for the full quarter, third quarter, retailer posting earnings of 80 cents a share. that beat the street by a penny. revenues missed slightly. same store sales fell 2%. sales at gap namesake stores well the most. old navy slowed to 4% growth. old navy had been stronger compared to other brands. wall street will watch to see if that slowdown is a blip or not. there is leadership changes throughout the company. last month ceo glenn murphy announced he was retiring. art peck who heads digital for the company will take over as ceo at the start of the fiscal year. peck has begun choosing his in you team. we found out about this after

the bell yesterday. jeff kirwan will begin as glap global president. kirwan will take over. andy owen current evp will take over as banana republic global president early january. she succeeds jack calhoun who will leave the company in february. there is a lot of change happening. shareholders hoping a stronger performance going forward. we saw strength earlier on then it just petered off. back to you. >> interesting how old navy was the savior a couple of years back. we are one week out from black friday. the official kick-off of the holiday season. joining us former toys "r" us chairman and ceo gerry storch. now ceo of storch advisor. when an apparel retailer fails, why do they fail and what can management do?

>> we are seeing weakness across the board in women's apparel. the gap is not unique in that regard. i think a big cause of all this is the business is going down market. you saw huge numbers today out of ross. even as you saw the weakness of gap. you don't wear two outfits out. they are buying it at ross, not gap. good numbers out of t.j. maxx. we are seeing a shift towards value. >> across the board? the rich are getting richer in this country. >> there are three winners in today's retail environment. certain high-end players are doing very well. if the brand is high. michael kors as a fantastic example of what you're talking about. t.j. maxx, ross, dollar general in the more basics area. costco. winner quarter after quarter.

the other category of winners are mastering the internet and all channel model. you have macy's or nordstrom doing very, very well. best buy was better than people expected. >> best buy, walmart and target are sacrificing margins. >> everybody is sacrificing margins. >> do you have to do that? >> i think you do. the bricks and mortar retailers said we are not going to take it on the chin from amazon quarter after quarter and get undercut in price. everybody is matching their prices. prices are transparent. margins are falling. they aren't going to give up the sales. they have drawn that line in the sand saying we are not going to give our business away to amazon. >> on that idea, walmart's new strategy of matching prices, you see this as a win/win for the

customer, the retailer, does that mean amazon loses out here? >> amazon has been under a lot of pressure for a long time. they are the best on the internet, which is great. everyone else is catching up. the gap in terms of the customer experience on the internet is changing rapidly. i fervently believe the omni channel model is a better model for the consumer. she can choose how she gets the product. instead of just having it delivered at home, she can go to the store and pick it up or do whatever she wants with it. >> do you think online provides transparency? do you think everybody gets the same price online? the algorithms are so smart they can recognize who is there. i'm not sure you always get the best price. i said on the program i went to best buy. there were things substantially cheaper than i bought on the internet the past year. >> you are getting a better price than you would have gotten

before. all data shows is that the consumer is shopping on the internet before they go to the store. store traffic is off dramatically. sales are off in the stores nearly as much. why is that? customer preshopped on the internet before they go and make the strike to buy what they want. >> are you in the camp who say the mall-based retailer is dead or dying and people won't go there? >> not in a million years. i think there is huge room for a mall-based retailer. they are the hub of the omni channel model. big growth on the internet right now is coming from this omni channel model where the customer is picking the product up in the store or the store is being used as a distribution center. the stores are shipping from the store to the customer's home. the enviewer inventory pool they had in the store is available at once. this is a winning model for the long term. that doesn't mean every mall will be great. the "a" malls will do fantastic.

they have the experience. they are growing like crazy. rents are rising. the "b" and "c" malls will suffer. there are more malls than needed, more space than needed. inferior experience will suffer dramatically. >> simon mentioned your experience at target. what do you think of the new selection from pepsi? >> i think it's great. i'm a big fan of target's. a lot was said about the data breach. that is not what happened to target last year. target was performing poorly in the u.s. long before that. you saw sales -- secondly, the mechanical debacle. >> were you part of that strategy? >> no. i haven't been there a long time, i promise you. we looked at it a number of times and walked away because of the small sizes. >> it's always a treat to have

you. >> my pleasure. >> jerry storch on retail. >> the head of the network that brought you "mad men" and "walking dead." ceo of am cnet works. 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 when their data moves around. can i go now? if you're going to do business globally, you need a cloud that can keep your data where it needs to be.

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welcome back to "squawk on the street." china's decision to cut interest rates is giving a boost to commodity commissioners everywhere. all showing strong gains. the success of "mad men" and "walking dead" hasn't helped am cnet work stock lately. year-to-date it's down more than 8%. what new shows could help amc's

bottom line? s joining us exclusively is amc's ceo with julia. >> you have a new sequel breaking in january. all the anticipation puts the pressure on. will the show be as big as "breaking bad?" >> i think the show is going to be true to the creative vision of vince gilligan and peter gould who created it. the show will be something very different and very, very, very original. >> very original. "breaking bad" was a huge engine for growth and revenue. will we see this impact from the new show? >> i don't know what the economic impact will be. way early to determine it. what is most important in the show is that it really be true to the vision of the creative

people and resonate with viewers. i think that vince and peter and peter created the character set out to do that. i think they have done that beautifully. >> i can't wait to see it. your biggest hit "walking dead." most recently has beaten sunday night football four out of six weeks. that's very impressive for a show in its fifth season. can you keep this up with "walking dead?" >> remains to be seen what the arc is over time. i think there are genre pieces with one thing "star wars," "star trek" that live extremely long lives. "dr. who" on bbc just celebrated its 50th anniversary. i think the world of "walking dead" has an awful life and death to come. >> you do have the huge success in "walking dead." some of your newer shows have

disappointed. have failed to take off in the way a "breaking bad" or "mad men" or "walking dead" have. investors are concerned. how do you he a dress those concerns you don't have that pipeline of big hits to replace a "breaking bad?" >> sure. we do have two shows we premiered last year, we think are very strong shows. "halt and catch fire" we think is a wonderful show. "turn" about the american revolution and spies in the american revolution, i think is perhaps the best historical fiction show continuing series on television. it's early that their lives. they are in their first season. they've been critically well received. we'll see how season two is. >> because of the end of "breaking bad" and comparisons, your ad revenue disappointed expectations. what is your outlook for advertising in q-4 and next

year? >> we have strong shows. we think that will probably define our performance in the fourth quarter. we have "walking dead." i think we are doing fine. >> the ceo of hbo was here yesterday. they think it's necessary to go outside the traditional cable bundle. are you going to do the same thing? >> we have no plans. we think being within the cable ecosystem is good for our health, our livelihood and good for our future. for the longest time, we've been of the opinion our shows need to be among people's favorites. as the world gets more digital and as you and i have more choices at home, we think they will serve us as the digital cable ecosystem changes and progresses is not to have tv shows that people are indifferent about, but to have tv shows people really care

about on sundance, on we tv, on ifc, amc and bbc america. we've been on that mission for a decade. we think we are achieving a fair amount of it. we think it is the best prescription for success in the future. >> everyone is trying this over the top thing. showtime saying they are going to do it as hbo. what will it take for you to go in that direction? >> we have our own considerings. we are basic cable channels. we have five with bbc america. they live, breathe and thrive in the current ecosystem of 100 million homes. we are going to do everything we can to make that experience more vital and more successful for our distribution partners, our advertising partners and ourselves. >> thank you so much for joining us. we can't wait to see the first few episodes coming up. . back to you. >> thank you very much. straight ahead, as ski season kicks off, an exclusive interview from colorado with the

ceo of vail resorts. they don't have a lot of garages in china. if you are going to start the largest technology company in the country, chances are you are going to do it in an apartment. after the break, the place where it all got started for alibaba. 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.

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we're for an opens you internet for all.sing. 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. alibaba stock trading higher this morning. yesterday the company raising $8 billion in its first bond offering here in the united states.

it is on a hot streak. the $9 billion plus of sales. all this on the largest ipo in the history of the universe. i was in china last week where he interviewed founder and chairman jack ma. i spoke with ma's team. at the end of the tripe i got an exclusive tour at the place where it all began. >> if the garage is the sacred spot where so many of america's great technology companies are born, in china, it is this one place. building 161, lakeside hardens, china. the apartment jack ma lived with his wife when he started alibaba. this is where jack ma sends his most promising developers and programmers to find inspiration. ma's apartment sits just through this gate off this busy street.

a few miles from the 54 acre alibaba headquarters that's home to 14,000 employees. the campus has all the acoutrements of an american tech company. begin the option of working there on campus with all its trappings, the top level programs are happy to be here in this six-room, modestly deck rated and dare i say crowded apartment, where ma lived 15 years ago. do people like working here in the apartment? the headquarters is very nice. got a gym, you can play ping pong, pool. there is nothing here. >> i think it's enough for all the people. >> this is a product manager for alibaba. when you are starting a new product at alibaba that's

important, people come here to get inspiration, to feel the power. >> yes, yes, yes. >> he and his team will spend about ten months here working 13 hours a day, seven days a week. eating, napping, working and channeling theirer in jack ma. >> must be important. >> yes, important project. >> important indeed. team all, alipay were developed here. it's no wonder jack ma sends them back. >> started from here. >> wow, no wonder it's got power. >> yes. and chinese fen sui is good. >> jack ma doesn't show up all that often. there is a message on the wall handwritten by ma in 2008. it roughly translates to this,

"the core of this company is to grow and grow." with 80% plus of the online mark place in china there, that will continue to be the case for alibaba. the question for investors is how quickly they grow. they wouldn't let us see what was on their laptops and everything because it does appear to be a project they are working on they will unveil a number of months from now. they spend nine months and a new team will come in. >> i see a television series of who lives in a house like this through the keyhole with david faber. >> as long as you are in that casual wear, which i enjoy. >> i wish somebody told me to zip up the sweater. >> you looked great. it was perfect. >> alibaba's success is not the only coming out of china. mario draghi raised one very important question for people

here, what effect will that have on the u.s. federal reserve? joining us on that is steve liesman. a big task. >> there is a lot to game out here this. morning's news highlights not just the economic weakness overseas compared to strength in the u.s. which is a major concern for the federal reserve, but increasing deverivergence i policies. the fed is watching overseas. it debated in october whether to say in its policy statement foreign weakness raised uncertainty and risk for the u.s. economy. it decided not to for now. with strong u.s. economic data, the general view remains the fed will plow ahead. more writing in a statement, our economics team's view is the fed remained steadfast at

normalizing policy. it's likely the fed will have reluctance getting too far ahead of the rest of the world on interest rates. you can see that here in the divergence which shows up in the euro. it fell again against the dollar. this challenges u.s. exporters and has a downward effect on inflation. another place it shows up, the growing split between european and u.s. interest rates. the u.s. ten-year yield 1.5 percentage points higher than the german bund. if they end up helping those economies grow and raising their inflation rates, the fed would still be on track for rate hikes next summer. if global weakness undermines the u.s. economy and deflation overseas washes up on these shores, all bets could be off. the fed led the way into easy monetary policy and it will not be uncertain about leading on the way out. it won't wander wantonly into tightening. it will hold off on rate hikes

if the global drags down the u.s. economy. sara, this is where you want it to be, a huge currency story. >> the whole thing is one giant currency bet. it's unlike anything we've seen post crisis. where do you come down and where is the research on inflation in this country for next year? that's going to be the key, as you alluded to. this idea of disinflation and how worrisome that is and how low it goes before the fed starts to get worried. >> yesterday they got a reprieve. that core rate went up to 1.8% even while the headline is 1.7%. we know the headline is going to come down. what we are watching for and what's uncertain is these lower oil prices, and we probably add on the food price front. what happens to the core rate? that's what the fed will be watching. the idea is we'll head back to that 2% inflation target. central banks have been wrong for a number of years about

inflation. frankly, it perplexes them. they thought they could pick an inflation rate with the right amount of monetary policy easing. they've been wrong about that. ultimately what they are going to do is hope what's happening in europe and in china works and helps lift global inflation. and that helps the u.s. get to their target. >> this is a very dovish conversation. i would have thought the bigger issue is the fact they lost control of the treasury market. you have so much money artificially depressing market interest rates well below where they should be. and there is a risk that they can't tighten sufficiently in the economy because of what everybody else is doing. >> i don't think the fed wants to be tightening right now, simon. this is a problem for the future. if the federal reserve were in a place where we were confronting inflation and needed to slow down the economy rather than accelerate it, we would be talking about that problem right now. i don't think the fed is

concerned that the ten year is here. more concern would be on the shorter end of the curve, why it is that the fed funds market, if you look at that, is so far away from where the federal reserve's own predictions are. >> steve liesman, all big questions we'll be asking all through next year. thanks for the report. up next, chuck todd, moderator of "meet the press" will join rick santelli live to weigh in on the immigration debate. on monday, i'll sit down with jeffrey gundlach for an exclusive interview of all this divergence in central bank policies. they're coming. what do i do? you need to catch the 4:10 huh? the equipment tracking system will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge. what? in 3...2...1... are you kidding me? go.

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power's back on. quick thinking traffic lights and self correcting power grids make the world predictable. thrillingly predictable. china's rate cut pushing oil prices higher. that is good news for the beleaguered energy sector. exxon, chevron, hess and anadarko moving higher on the flip side airline stocks moving

lower. all losing ground so far today. >> looks like materials and energy are pushing this market higher. let's get to rick santelli on the political beat today. >> politics is one of these things where it seems to have invaded the space of the marketplace. when we talk about things like jobs and the economy, what the president said last night is super important. i would like to welcome the man who knows politics better than most. i'd like to call him a friend, chuck todd. thanks for taking the time this morning. >> happy to do it, rick. >> let's start right at the beginning. what did you think of what the president said last night in his address? >> well, i tell you. when you watched him lay it out and watch him make a tactical case for what he was doing and explaining it, then making a moral case, you did have to ask yourself why they didn't do this six months ago. he seemed to have the passion for this six months ago to do this. obviously, they made a political

decision not to do it, senate democrats did. this white house and this president regrets not doing this six months ago. to me that came through last night. >> you bring up a great point. timing is where i was going to go. whether they regret it or not, we can't say. one thing we can say, you don't pull all the details of that together in 24 hours. on the legal consent and why he was allowed to do that. you don't pull that together. i've been reading stories this has been in the works for quite a while, let's say months. timing is strange. we didn't hear a lot about such issues in the early days when the president had both houses. we didn't hear much about it before the 2012 elections. we hear it slightly after midterm. you agree there is a political issue here. do you think the president, his people are either mad at the public for his base not voting or do you think he just has a different interpretation of what the midterms may have said? >> oh, i think he looks at it

versus his decision not to do this sooner alienated hispanics and risked sending the message to them. you bring up correctly, you know, hispanics, activists on immigration were told you had to wait by democrats. '12 comes around and they thought they would have something and were told to wait again. i think they worried they had a credibility problem. the first message was delivered by the lack of turnout among hispanics, particularly in colorado and florida. the two states in two races, florida governor and colorado senate you could specifically point to lower hispanic turnout as an explanation for democrats losing. >> to me, i am the grandchild of immigrants. i think a majority of americans in congress agree with the things the president wants to do, but there is this little

thing called article i section 8 that makes it clear whether bankruptcy or naturalization and citizenship is the power of congress. would you agree china and russia, if they had benevolent leadership, they are a more efficient form of government than the democrat and republican? wouldn't you agree with that? >> thursday. they are easier to get things done with. this is where i think that this is the problem, the box the president's in. you're right. the policy he's going to implement has majority support. we tested that in the polls. it's the process with which the public is frustrated with. >> let me interrupt you one minute because we are out of time, of course. i'm going to keep going. there was a bit of grubering going on last night. when the president talked about deportation because he knows the conservatives don't have a problem with immigrants, they have a problem with a porous

border and they want it handled like an airport, take off their shoes and get tested it. get all that. when he talks about deportation being down. i could quote you the "l.a. times," a variety, everybody knows around 2008 everything changed. people that are in the country, those people are deported a lot less than they used to be. it's the turnarounds at the border that never used to be counted. do you think the country is tired of being grubered? present your case but don't use these stretches. that's a stretch to use those statistics to further the cause. agree or disagree? >> no the credibility gap the government has in general, the obama administration. you brought up gruber. let's bring up health care. look at today we find out the numbers are off. not by a lot, 300,000 out of 7.1 million sign-ups. >> it isn't the numbers. >> it is a pattern. the pattern. >> if he wants to go his own way, present it in a way we could at least feel we are

getting sold an accuracy. finally, your book "a stranger in the white house" i tell you what, i really enjoyed it. i never read a book that gives you better detail on what happens behind the scenes when a stranger comes into ultimately be president. i urge people to read it. i remember when i was young my dad took me on a tour of a hot dog factory. i didn't eat hot dogs for year. that would be the warning i place. thanks for taking the time. >> thank you. >> back to simon hobbs now. >> thank you very much. up next on the program, ski season kicks off across the country this weekend. we'll be joined exclusively by the ceo of vail resorts.

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we're for an opens you internet for all.sing. 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. a news alert from kate kelly on the ongoing commodities going on in wa. >> here in capitol hill it appears daniel garulo is likely to take the stage shortly. he seems to concur with the

senate committee's feeling that the safety and soundness issue posed by banks owning physical commodities is a substantial one. after receiving 17,000 comment letters on the fed proposal to possibly modify the rules he's saying they are considering re -- adding capital requirements. tougher risk management requirements and additional data collection and reporting requirements. so that's underway and we'll see what he says in the q and a as well. >> looked inevitable. thank you. for many meanwhile the winter ski season starts right here. this weekend ski resorts across the country finally throw oup open the gates. joining prus the vail is rob cats, ceo of the -- i think it's eleven resorts you have. how many opened this weekend? >> we've got about five open

this weekend. but an amazing opening right here in vail with over 500 akers. one of the best openings we've had in long time. the lifts just starts behind me. >> what are the conditions like? >> fantastic. we're looking for more snow this week. it should set up for a fantasticing this. >> in this environment do you still artificially make the snow? does this make the task less difficult for you? >> no. we actually do both. when the temperatures are right, which right now they are across the country, we can make great snow. and that helps fill in some of the pockets when nur november. but we've got tremendous natural snow here and have had in the last couple weeks. and looking at more for the next week. and this is a big weekend for us. because the epic passes, this is the last weekend we'll be selling the epic pass. one of the best deals in skiing.

so we're really excited as we get these incredible conditions. >> given that you collect so much money in advance through the pass, how much are you up on last year. what will the spend be across the country for the industry be you think this winter? >> i'd say for us our season pass business, which we reported back in october was strongly up in the double digit territory. we'll be reported on that probably another couple weeks. we're seeing incredible enthusiasm because we added park city and canyon's to the pass this year. a lot of enthusiasm across the united states and around the world. as the dow continues to climb we're looking for big spending from higher income guests across the board. we see that as a huge opportunity into the season. >> the big news you spent half a billion dollars a couple months ago to buy park city in utah which neighbors canyons which you already had. together they make the largest

ski resort in the country. are you able to actually physically join them this season? how would you be able to push more people through? >> this season we won't with able to join them. we're putting in a new lift to connect the two resort a single lift and that goes in next summer next year the combined resort will open. this year you can ski the both resorts on the same ticket. and we're hearing tremendous enthusiasm about that. it is a big deal in the industry right now. >> shareholders will get really enthusiastic about is 700 thousand square feet of development space that came through with that deal. are you able to tell us about any future plans to build and monetize that. because that would really boost the stock priels. >> no. that was critical piece. i think the base area of park city is in need for an upgrade. i think to bring it in line with

the rest of the city of park city, which is really fantastic. and that is one of the key things that we'll be focussing on. who to bring, what hotel brands, what other partners from around the local community who are can we really bring together to make the base as special as the other resorts we have. right now we're focus on connecting two resorts and really improving the ski experience. >> rob, thank you for joining us from the vail resort just outside denver. >> where there is snow. now let's happened it over to john for jon fortt and a look at what's next on "squawk alley." >> kara swisher of re/code is here with with us. post nine, and talking about the events of the week. and the ceo of a business software company that a lot of top named silicon valley angels are pouring into to. and the reaction to the

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and "squawk alley" is live. good friday morning. welcome to "squawk alley." carl can s we have quite a day in green. stocks still in rally mold. right now the dow up by 134, s&p up 14, nasdaq up 24. art cashin is here at post nine. today's move largely on the back of central bank action. a rate cut in china largely unexpected. how long can those effects last for us. >> i think hopefully through the balance of the day and into n