i don't see anything but solid 2, 2.5%. we can't get a healthy economy and clothes the wage gap without more and these regs. i continue to pitch about regs. >> thank you for 20 years. make sure you join us tomorrow. "squawk on the street" begins right now. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla. david faber, jim cramer. you might call this the busiest day of the week as pope francis addresses congress and flies to new york and chinese president xi flies to d.c. ten-year, 2.11 is going to be the lows for the month. oil continues to look ulgly just

above 44. jobless claims, below 300,000. yellen expected to make her first public speech after that big september fed meeting. >> continuing of that major shakeup at volkswagen as martin winterman re-signs. microsoft with a big deal and a $38 billion commitment with boeing. pope francis has departed for the u.s. capital where the pontiff is scheduled to address a joint meeting of congress in about an hour. pope francis expected to speak on a number of topics during yesterday's remarks at the white house. he spoke about climate change, im immigration and ledgeus liberty. he will be the first pope to address congress in this fashion. >> boy, is he different. i have had the privilege of having an audience with the pope

two weeks ago in the vatican s he is revolutionary in his own, quiet, reserved way. the one thing i would point out about this pope was that i was at rome. he went to go buy eyeglasses by himself. he has made the vatican accessible to everyone. this immigration is going to be front and center. this is the only boom buster i know. can't wait to hear what he has to say. he is quite exciting. he is the most youthful, mid 70-year-old i have ever seen. >> looks nowhere near 78. >> you are right about the humble way he has chosen to live. pope john paul and benedict had customized cabins. he insists on flying on a standard row. >> when you are in the vatican

and you talk to the people who work there and it is revolution papa. he is the world's papa. i think it is a very joyous event that he is here. >> some in that body will disagree with his views on climate change. do we expect he will address them on that as sfwhel do we have any idea? i would expect and assume he would bring it up. >> he is wide-ranging an youthful in his thinking. i think this is one of the issues that has captured people who are younger. he ignites the hope of young people. this is a unique man. >> he did and has addressed the remarks at the white house yesterday calling climate change a problem which can no longer be left to a future generation. cited dr. king, we have defaulted on a prom sorry note

to our future generation. there might be some in congress who might be a little uncomfortable. >> he is headlines and there is probably a rearguard action. obviously, i'm not close to the church. when you listen to him speak, he is someone who is very much to the people. he is talking about embracing issues. >> senator mitch mcconnell will have a different view than he does on climate change? >> i'm sure. he does it with a smile. we'll keep our eye on that as we watch the pope make his way to the capital. he will meet with speaker boehner. he has tweeted how excited he is. former altar boy he is. he will go out on the speaker's balcony and wave to essentially

30,000 people to get a glimpse of his pope. >> i cannot recall a time when my hometown, philadelphia, has been more energized about a visit. caterpillar, 5,000 cutting their revenue outlook for 2015. you were looking at the rolling sales from a couple of days ago. when you see this, you no he that the company is addressing what is a very slow roll. a lot of the businesses, i don't know. caterpillar has actually held up better than a lot of the other companies in the industry. some people are waiting for this to happen. i don't know how you can address

their challenges other than to have more lay-offs. i think they are a precursor to more lay-offs because of the strong dollar. a total possible of more than 10,000. >> once fully implemented, it will begin in late 2015 says caterpillar. your heard the workforce reduction that carl just detailed from them. they are talking about revenues being about $1 billion lower than previous outlooks for 2015 from 49 to now what is 48 billion and then for 2016, sales and revenue is expected to be about 5% below 2015. a $48 billion revenue estimate. taking the costs out of the business. they feel they need to, jim, as

we've seen in any number of different areas when it comes to these commodity-related companies, whether it be freeport, which comes to mind. then, the commodity route across the board and what that has been doing to any number of countries and companies, i know, has been in the forefront for you, whether it is glen core of late or petra which you brought up the other day as well. >> very concerning. >> i think the world challenges have him doing everything he can to get ahead of this. deet klein, even in cole, the machines are used for coal and i' oil and residential and nonresidential. i don't know who could run the company and not take these actions. caterpillar has taken them in time to raise the franchise. you will see deere down.

a reason why the dow should be down. >> the market share has improved in a lot of products. product quality, as good as if has been in the company's history. to put the revenue guidance into some perspective, 2016 would mark the first time that sales and revenues have decleesed four years in a row in the company's 9 90-year history. they have never had four years down on revenue. >> it is interesting to put that in a press phase. why don't you highlight that? >> because they are a very honest, open company. they have struggled because of the mix of business but he has never hidden it. a rather sudden recognition of some things that have been going on at a lot of different companies. >> mining, oil and gas. >> construction has not been as

bad. >> they are not referred to cereal or restaurants. the food business has been good. they are levered to a lot of bad markets. in china, this is a china plague at-large. we should put these things in some sort of longer theme. the pope is talking about global warming and climate change. caterpillar needs coal to get rei r reignited. >> so much starts and ends in china. it is not just about coal but the copper miners that aren't ordering as much and don't don't have the equipment, the oil and company companies. this is all part and parcel of the same slow-down that we have been talking about for some time that we are seeing in the commodity's complex. >> the glut and copper. >> goldman coming out with some reasonably negative numbers

about it. >> when you don't have credit, your not going to buy a lot of the machines. look at joy global. that has been down much more than cat. the next thing people are going to say is that that dividend can't hold up. you are gng to see that in space. >> they are talking those things saying maybe it is not enough. they have already made. that stock down another 7.5. this has been going on for so long. it is finally hitting the companies. the rollover has been multiyear. they peaked in 2008. caterpillar provides an economic skrout look in their third quarter financial release. this is earlier than that.

why have you done that earlier than normal? >> you can't pick up a paper without reading about some commodity that is in decline. caterpillar, if they are having problems, you can only imagine who else is out there. just struggling. copper is not free-fall. it is not being used as much. you can offset this with boeing. aerospace is good. >> iron ore. >> back to brazil and baly. >> iron ore, you could get hit by that. >> 30% of china is power grid,which is likely to go down. >> when you go over lennar's quarter, they use a lot of these materials but don't gain enough. the users don't gain enough to offset what the producers are

doing. even though hoil is held at the $44 level, they are not able to do projects. when you look at the heavy oil sands, that's about caterpillar. a >> that's a lot of people they are laying off. as much as 10,000 stretching into 2016. >> four years. it is almost as if this company is just really starting to feel the great recession. >> they had credit freeze-up like every other company. i think people are going to talk about caterpillar fip nance. that doesn't mean you want to buy the stock. do not want to buy the stock. i can tell you, this is devastating to the complex. we'll really justify why our futures are down so much. >> as of last year, 522,000.

>> caterpillar is not afraid to take action. >> a lot to get to that we v ha not gotten to yet. another look at the pre-market. more weakness on the caterpillar news that we will get to when "squawk on the street" comes right back. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade.

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japan opened for the first time in a few days. caterpillar, layoffs up to 10 people. revenue will shrink for the fourth year in a row, something that has not happened in the company's 90-year history. new developments regarding the volkswagen cheating schedule. s&p putting the automaker on credit watch negative. they are reporting they will fire people responsible for rigging those emission tests and they may announce their pick for ceo tomorrow. a report in a german magazine that bmw is now upped some scrutiny. the company denies it tries to calculate or gain a mission. this is spreading. >> i know a lot of this is when

you do the emissions testing on the road which shows different results. volkswagen has rebounded and come back. volkswagen's problems are going to benefit other companies. i think we are being too gloomy about that possibility. i do not think that everyone. this is a very well-known test that was done and was discovered. we talked about it the other day by the university. i will tell you this when i pulled up with some very talented lawyers in the last few days about volkswagen. >> what did they say? >> there is no defense. criminal prosecution is expected. a possibility of them being shut down. everything is on the line. 70% of that economy is auto-related. i have talked with some really great defense lawyers, nothing. >> i have actually tried to do the same. what would you advise them to

do? much of it comes down to almost fall on your sword. >> we were being a little facetious, throw people over. >> they may have to throw over a huge number of people to be able to keep this company from being banned. >> i am fascinated to see where it leads. 11 million automobiles with the software installed. maybe it is there and can be changed in some fashion that doesn't have to be that many people involved to do it. it is all speculation at this point. how do you go about trying to determine the value for volkswagen as an investor, is a very difficult thing to do. the port family controls it at 51%. the state of lower saxony is at 21%. cut our own 17%, the sovereign fund. we are not talking about a lot of other investors. >> that is a great point. >> we are dealing with a company that has a very stable base.

i think they get to the bottom of it. the problem is, we see with the banks, once the justice department gets involved. nobody needs volkswagen. if you are a country that produces cars, you are thrilled. specially if you have diesel engines. i was trying to put a silver lining on things. it is hard to do. >> diesel is much bigger than we think. >> we were pointing out this morning all the challenges merkel faces. a slowing huge partner in china. today, the poe was okay. >> this setup wasn't that bad going into this caterpillar situation. the volkswagen. i just think that if you're toyota, you could make a case they are going to be a big market share pickup. no one wants to make that case.

deutsche bank hitting a 52-week low. why? germany. etf from germany pulling everything down. >> there is the pope. a live shot of pope francis with the speaker, boehner, who was just talking to some reporters a moment ago talking about the scheduling saying it is boehner time, which is on time. i'm always on time. it looks like we are closer to schedule than we were with the pope's early schedule yesterday. they are going to meet for a little bit in the ceremonial office. at around 10:00 a.m., they will enter the house chamber, shake hands as the president does before he begins his joint address to congress. he will speak in english and we expect it to be around 30 minutes in a tongue he has admitted is difficult for him. >> and the audience we had. they translated it into every language. i have to tell you to have the

audience get the tickets. they were talking about the previous show. maybe i'm just trying to be positive about something. >> it is a good thing to be positive about. you will find other things. it's a long day. >> will we? >> hope springs eternal, my friend. >> i like that. man, do we ever need to hear that. >> how about instagram has 400 million. there you go. >> all six companies that were reported, all six were better than expected. all stocks were down. that's bear market. i know i'm supposed to be the cheerleader of the man involved in the federal reserve from st. louis. football not that good this year. six companies that reported great numbers. it doesn't matter right now. when we see caterpillar report a bad number. >> very unsavory. >> very unsavory. did you see the pictures with our executives in china? here is something positive for the habberdashery industry.

basis had a tie. this is so good for van heusen and pvh. >> i into you would find something. >> i'm struggling here. >> we'll give you 2:30 to think of more. we'll get cramer's mad dash and the opening bell in just a minute.

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we have the s&p down 5.8. not good news. >> one of my favorite analyst is judy hong. she talks about monster being bad. they switched their distribution system to coca-cola. i know when i was over there, they asked me, coca-cola germany, they have improved their distribution business. she is saying, this company, now that it is linked with the european distribution, coca-cola, could have very good up side. it goes from 160 to 165. maybe a $5 billion tender in 2016. maybe they can take it back. that's my own view. watch this stock as the one. if you think there could be any turn today, this will turn first. >> it has already had a very good year.

this distribution switch, the coca-cola bottling company is considered to be the premier bottling company in europe. >> we are going to see if the ripple effect as the opening bell comes near. stay with us. can a business have a mind?

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the opening bell in just under 60 seconds. it is raining news whether it is the pope in washington, can chinese president xi making his way to washington, yellen, caterpillar lay-offs, going to open at its lowest level since august of 2010. remember when it used to have the second biggest waiting in the dow. this used to be a superstar of the dow. >> the world has changed. we are not as much a manufacturing economy. we asked about other companies going to be heard from, united rentals, joy. don't forget, vhp.

bella. they are all sinlgle. their market continues to get worse. iron ore, it just doesn't matter. >> the selling continues in europe. we said before, the dax down almost 8% now. there is the opening bell. a look at the s&p at the bottom of your screen here. pharmaceuticals ringing the bell over at nasdaq. norton ab, bank for investments and savings bringing the opening bell there. caterpillar has to top the list of stocks. >> it has a 99% what looks like a reduction in problems for hepatitis "b."

we look at homes, the lennar quarter was perfect. it didn't matter. that went down. bear market action meaning, look, it doesn't matter how good the companies are and what they are reporting. i remember the infrastructure should all be down. cbi. >> it seems to be a little kinder to caterpillar than they have been in the past. let's not forget the bucyrus deal. we brought it up any number of times. it is not necessarily indicative. it is not about one thing and not necessarily about a deal. nonetheless, they did buy that thing right at the top. >> they did. they made a chinese acquisition that was not good. in the end, the stock has held up better than the others in the sector. the stock is down 30%. a major company. you can't own it. i am sure that people are going to be talking about the dividend. am i kinder? in the end, what would you do? you can't suddenly start making products that work for data

centers. thinking about something that is an infrastructure that is levered well. >> that puts me in mind of hp enterprises that says it will cut 30,000 jobs. >> back to the big debate about the fed when you have all this going on. >> i told him his comments were spot on. he asked me, you think that rates should raise. enough. i can't take it anymore. i had too maniy people come on. look at brazil. brazil is teetering. recognize that europe is a nation and that china, china is bad. there are some articles. cnbc had articles with a chai into conmer pole. can you all hide in general mills. i am saying, i feel like, you know what, remember when we were growing up and they had little prizes in the cereal box. i feel like a little prize in

the cereal box this morning. >> all the losers surrounding caterpillar are in that space. joy global, united rentals, deere, borgwarner had some exposure to volkswagen. >> cummins is worth talking about. who has been able to crack china? caterpillar, cummins, the engines with the least pollution. talk to cummins. they have great formulation. parker-anderson does hydraulics. that's going lower. people aren't looking at the good part, aerospace or defense. they are looking at the worst part. in a bear market, we take our cue from everything back. gm, you want to own that? how about fiat? fiat is a huge winner.

>> it got a great commercial yet as pope francis drove around in one. >> we are still a lot better than a lot of other places around the world. it is not just about china. i had carl bass on early last week talking about the ripple effects of china on the emerging market that does so much trading with it. not to be missed is the fact that the u.s. dollar is at all-time highs against the pay so, the south african rand and the turkish lira and the indonesian rubie. these are all in freefall. they have enormous amounts of debt in the companies an the couldn't interest is themselves, as a result of q.e. for all these years and zero bound that could be a crisis in the making.

>> you are hearing bond owe fex talk about that. what's not seen, all mart, a good article on cnbc about the idea that walmart might be able to negotiate better prices. >> maybe retail is the place to be. >> i think retail is the place to be. whether it be kroger or restaurants. i saw a positive note about jack in the box. we are an internationale economy when it comes to the great american companies that have done their best to move overseas. i beg to find the negative on home depot here. home depot is a big winner in the lower price of imports. housing is a slow and steady gainer. home depot is a big company. >> you were looking at a monster

upgrade at goldman. >> ralph lauren getting some love. >> it is a very compelling upgrade about how they are doing a lot of things right, new products right. if you come in in the bear market, it shows up at 74 cents and then it is down 2.5. i can't get excited about it, because the market wants to go lower. when it gets there, we can get excited. file away con ed and buffalo wild wings. >> on the deal front right now, i think a lot of things continue to be negotiated. one we haven't talked about in a while, energy transfer continuing to try to get williams to finally say yes to it. ford is expected to meet perhaps as early as today. energy transfer for its part is down. now, it is $23.50 stock. when jamie welch came on, number two with me, at the beginning of

this thing, the stock was 30s. >> etp for yield. yield means absolutely nothing. people think every distribution is going to be cut there. etp blew away the numbers. that's an etf. there was a negative in one of these smaller players. this group is in free-fall. if you look at it in a few months, we have something that will yield 10%. a few months from now is ages. people don't want to think a few months from now. natural gas, okay. natural gas at a 14-year low. the marcellus continues to pump out natural gas. >> we will get more inventory nu numbers today. autozone, up very big today. down tomorrow. gasoline going down. they are seeing much better sales, because so many more people are driving longer miles. that, again, is being drowned out by the overall gloom.

are the biotechs, should they be year to year? i don't know. overall gloom. >> by the way, when it comes to gloom, ali baba, the first time i have seen it below $60. >> why did you mention that? to make me feel bad. >> i know baba can't get any footing. >> jack ma was in that picture? >> yes. >> you had bezos and jack ma together. that's an interesting combination. >> this boeing deal, 38 billion. 197 37s, 50 wide bodies. a great piece about how china is a customer but eventually is likely to be a rival when it comes to plane manufacturing. how do they ride that balance?

>> i think boeing is doing so many things right. i just think that's another one to remember as it comes in. it is a 20-year cycle. got some more news out of volkswagen. >> the board member from portia, from audi, both expected to leave volkswagen group, dow jones citing sources. we are likely to get more official news tomorrow. >> obviously, you can't control what looks to be a down right fraud. you are coming back. the germany economy needs volkswagen strong. they really killed themselves. stay focused on tech. there is a lot of tech that's good. a lot of retail that's good. i am going to bring out some good here. i know it is a bear. i know it won't stay a bear as valuations fall. >> yellen tonight in amherst,

fooifr not expected to take any questions. the name of her lecture or remarks, inflation dynamics and monetary policy. do you think she wants to fix the reaction we all had to her address from last week? >> i wish she would think there are many people that don't like the decision that she made. they are on the tape every minute talking about how wrong she is. i continue to believe that this dissension is causing a lot of the turmoil that we see. people, i think, should -- i'm never going to say people don't have first amendment rights, including federal board governors and presidents but there is something to be said, they just gave you a view. so let's put a little quiet here. the turmoil that's come from these fed people, like mr. bull la bullard, directly criticizing her. she needs to assert herself. it may not even matter. people just say, all right,

bring it on even though the economy has gotten significantly weaker. people have been worn down by the call to raise rates, which i think would be catastrophic but maybe people just say, listen, it is time. it is time thing, a lot of individuals who are looking at what is a very precarious moment overseas and ignoring it. >> how about many of those emerging markets would welcome a rate. rates in brazil are incredibly high. >> how big is brazil? >> 200 million people. ford motors is big in brazil, costco, not. >> you are going to need a new acronym pretty soon. >> let's talk about verizon. >> before you get to it, let me get to phil who has some news on

volkswagen. >> two of these board members leading volkswagen. this is the beginning of what we have expected ever since the announcement was made that martin winterkorn was out as ceo. we are going to start to see an exodus of executives at volkswagen. did they have direct knowledge of what was going on in terms of emission manipulation or is it just a case where it was in their area and they should have known about it and, therefore, they are going to be leaving? i talked to one source yesterday in germany who said, we are not waiting. they are going to move very quickly in terms of making decisions about who is staying and who is going and try to as much as possible control the damage as quickly as possible. >> we will talk to you about that. s&p, 1920, the lowest since september 4th. bob pisani is on the floor. >> china, for a change, is it part of this overall global

discussion? the nikkei was bigger. i want to show you germany. ourutures were weaker really right out of the gate practically for germany when germany opened. it is an overnight for germany opening around 3:00 in the morning or so. s&p futures were weak at the same time. eve tho even though caterpillar weak, of course, automobiles in germany down again. there was a german magazine talking about bmw exceeding the nitrogen emissions. daimler came out with a statement saying they do not manipulate data. volkswagen is just down fractionally. here in the u.s., that global slowdown. you see the weakness in the materials and the global industrials. i'll show you that in a minute. health care is down and so is technology. damage across the board. it is the big global names that are worse. here is the mining names we were

talking about all morning. caterpillar, cutting 5,000 jobs here. some new lows in most of this group, not surprisingly. put up the global industrials. you mentioned that dividend yield almost 4%. that could be in jeopardy some time. if you put up the global industrials, you can see honeywell, 3 m, general electric, tool works, all on the weak side. cummins sets a new low. elsewhere, slightly separate. the credit markets are under some pressure today as well. yields up in the treasury market. high yield etfs are under a little bit of pressure. this is not big. volume picking up. we'll keep an eye on that. elsewhere, generally good numbers coming out of kb home. revenues great. delivery up 25%. selling price up. these look like fantastic

numbers. they are a little bit below expectations just like lennar was. kb homes, that's why it is trading to the down side i suspect today. kb home has been a bit of an underperformer compared to the rest of the home builders. look. the numbers they are putting up are decent. this is very important. kb home is a consumer discretionary. this is one of the only sectors we are going to be getting any kind of revenue and earnings growth this year. put up the third quarter estimates here. consumer discretionary, home builders, autos, retailers, financials is the other group and health care. elsewhere, almost everything is flat to down. energy, down 65%. that's been down 50% second quarter. now, 65%. that's a true burden on it. we are watching anything related to the consumer in any of the bank stocks. we are not getting any growth anywhere else. that's where we are a little

worried about financials with no increase in interest rates. financial earnings estimates may be a little bit high. i suspect they may have to come down. >> janet yellen is going to speak at 5:00. i can't imagine why she would say anything different. we have gotten weaker economic stats since last week and the markets have changed. the s&p down 3%. germany, copper and oil all noticeably to the down side. this is since the fed meeting on thursday. carl back to you. >> bob pisani. >> let's get to rick santelli. >> if your a student of the markets, today is your day to really see much of what's going on. whether you like it or not or agree with it or not, many are calling it the deconstruction of the markets. some call it the japanfy kags of the markets. i'll give you a simple rundown.

interest rates are moving lower, a variety of reasons, commodities, china. a huge export economy where the auto industry is key. lack of confidence to raise rates in the state. this is all coming together. all markets seem to be moving to about the same tune. let's go through it. third week in august, everything is kind of conquering. tens, the same time. let's look at bunds. on the 21st, that one little down blip. you see two-thirds of the way to the right side of that chart. that's 56 basis points. we're very close to that, which will take it all the way back to june 1st since the bund has been down here. here is how we can construct the deconstruction with pictures. let's look at what happened to the dax. around 6:00 a.m. eastern, it

starts to lose its momentum. let's look at what happens to ten-year note rates. they started to come down. if i was to show a bund chart, they started to come down. here is the neat part. let's look at the currency of europe while this is going on. you see what the euro is doing against the dollar, it is climbing. the characteristics of the euro, like the yen, during times of market turmoil caused those that are short to buy it back. you have heard bob pisani talk about this many times. that's the market in pictures, pretty clear. is it easy to digest? definitely not. carl, back to you. >> thank you you very much, rick. we'll talk to you soon. the dow is down 215 this morning. alibaba is clothse to taking ou the lows. history being maiden o capitol hill. pope francis will address a joint meeting of congress. live coverage of that when "squawk on the street" continues.

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worst one after the lay-offs after 10,000 employees tried to save $1.5 billion. we are a few moments away from pope francis from front of congress. more data too. yellen tonight. we'll be right back. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world. my name is watson. i'm helping doctors keep people healthy.

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>> welcome back. i'm phil lebeau with an update on the vw emissions scandal. based on conversations cnbc has had with those at volkswagen. it is expected of vw of america chief michael horn is expected to be leaving volkswagen. that will come tomorrow when the supervisory board meets in wilkes burg, germany. this in addition to two other executives expected to leaving the company. this is part of woex wagon trying to get its arms wrapped around what happened and who knew what was going on in relation to emissions being rigged. michael horn, head of volkswagen of america, leaving. let's get to cramer and stop

training. here is a company that's doing well in european. accenture, acn. they said they are going to buy back 5 billion in stock. they raised the dividend 8%. no one cares. if we look at it, you are going to look at accenture and say, this is a remarkable quarter. it was a great quarter. people do not understand. >> what's on "mad money" tonight. >> opko. phil frost put together an mazing company, from 9 to 19. it is back to 9. this he made an acquisition of a reference lap. let's hear from phil frost, who is a moneymaker. maybe it won't matter.

it doesn't really matter but it will matter one day. congratulations to the pope and everything he is doing and i'm going to dpoe uptown ago uptown the action is. >> jim, we will see you tonight. >> he with will see pope francis in front of a joint session of congress and get some new home sales, a lot more when "squawk on the street" comes back. here e diabetic nerve pain... shoots and burns its way into your day, i hear you. to everyone with this pain that makes ordinary tasks extraordinarily painful, i hear you. make sure your doctor hears you too! i hear you because i was there when my dad suffered with diabetic nerve pain. if you have diabetes and burning, shooting pain in your feet or hands, don't suffer in silence! step on up and ask your doctor about diabetic nerve pain. tell 'em cedric sent you. awe believe active management can protect capital long term.

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>>. >> good thursday morning. welcome back to "squawk on the street." i'm carl quintanilla with david faber. sarah eisen is off today. we want to take you to washington. pope francis will be addressing the joint meeting in just a few minutes. we'll bring that to you live as soon as it happens. in the meantime, we want to mention that fed chair, janet yellen will be speaking at 5:00 p.m. eastern tonight. in the meantime, the market is having a tough day once again. the dow is down 2.09. a lot of this coming on the heels of japan. europe and another selloff.

the dax down almost 8% for the week. catily caterpillar laying off up to 10 employees as the mining center appears to show no sign of relief. we are eigwaiting for the serge of arms to announce the arrival of the pope. once he is done addressing congress for about 30 minutes in english, he will make his way to st statuary hall and visit a statue of the person he canonized yesterday, the first canonization before he goes to a charitable center and meets with the homeless and makes his way to jfk. the more political of his events. >> with two main messages we saw yesterday with immigration and climate change, neither of which will fit fairly comfortably with a number of members in congress.

individuals have said they would boycott this particular speech. it is way more popular than congress members themselves. >> 138 house members. 26 members. higher than the nationalle population. secretary kerry there.

art cashin is with us at post 9 to watch what is truly history. this has not been done by a pope ever. >> that's for sure. we have had papal visits to the u.s. before but never addressing a joint session of congress. >> what is the balance here for him in terms of unification versus standing up for the eye deals that obviously he has touted as the leader of the church? >> i think he is going to continue with his agenda in this speech and when he addresses the u.n. after that, he can do whatever he wants as far as getting along. i think he wants to make sure he makes these pois over and over again. >> it is interesting how he is expected to approach this pulling on figures from american history to prove the points he

wants to prove as far as policy is concerned. hopes to be encouraging. i have the high privilege and the honor of presenting to you pope francis of the holy see. mr. speaker, honorable members mr. vice president, mr. speaker, honorable members of congress, dear friends, i am

most grateful for your invitation to address this joint session of congress in the land of the free and the home of the brave. i would like to think that the reason for this is that i too am a son of this great continent, from which we have all received so much and toward which we

share a common responsibility. each son or daughter of a given country has a mission, a personal and social responsibility. your own responsibility as members of congress is to enable this country, by your legislative activity, to grow as a nation. you are the face of its people, their representatives. you are called to defend and preserve the dignity of your fellow citizens in the tireless and demanding pursuit of the common good, for this is the

chief aim of all politics. a political society endures when it seeks, as a vocation, to satisfy common needs by stimulating the growth of all its members, especially those in situations of greater vulnerability or risk. legislative activity is always based on care for the people. to this you have been invited, called and convened by those who elect you.

yours is a work which makes me reflect in two ways on the figure of moses. on the one hand, the patriarch and lawgiver of the people of israel symbolizes the need of peoples to keep alive their sense of unity by means of just legislation. on the other, the figure of moses leads us directly to god and thus to the transcendent dignity of the human being. moses provides us with a good synthesis of your work. you are asked to protect, by

means of the law, the image and likeness fashioned by god on every human life. today i would like not only to address you, but through you the entire people of the united states. here, together with their representatives, i would like to take this opportunity to dialogue with the many thousands of men and women who strive each day to do an honest day's work,

to bring home their daily bread, to save money and, one step at a time, to build a better life for their families. these are men and women who are not concerned simply with paying their taxes, but in their own quiet way sustain the life of society. they generate solidarity by

their actions, and they create organizations which offer a helping hand to those most in need. i would also like to enter into dialogue with the many elderly persons who are a storehouse of wisdom forged by experience, and who seek in many ways, especially through volunteer work, to share their stories and their insights. i know that many of them are retired, but still active. they keep working to build up this land. i also want to dialogue with all those young people who are working to realize their great

and noble aspirations, who are not led astray by facile proposals, and who face difficult situations, often as a result of immaturity on the part of many adults. i wish to dialogue with all of you, and i would like to do so through the historical memory of your people. my visit takes place at a time when men and women of good will are marking the anniversaries of several great americans.

the complexities of history and the reality of human weakness notwithstanding, these men and women, for all their many differences and limitations, were able by hard work and self-sacrifice , some at the cost of their lives, to build a better future. they shaped fundamental values which will endure forever in the spirit of the american people. a people with this spirit can live through many crises, tensions and conflicts, while always finding the resources to

move forward, and to do so with dignity. these men and women offer us a way of seeing and interpreting reality. in honoring their memory, we are inspired, even amid conflicts, and in the here and now of each day, to draw upon our deepest cultural reserves. i would like to mention four of these americans, abraham lincoln, martin luther king,

dorothy day and thomas merton. this year marks the 150th anniversary of the assassination of president abraham lincoln, the guardian of liberty, who labored tirelessly that this nation, under god, might have a new birth of freedom. building a future of freedom requires love of the common good and cooperation in a spirit of subsidiarity and solidarity. all of us are quite aware of,

and deeply worried, by the disturbing social and political situation of the world today. our world is increasingly a place of violent conflict, hatred and brutal atrocities, committed even in the name of god and of religion. we know that no religion is immune from forms of individual delusion or ideological extremism. this means that we must be especially attentive to every type of fundamentalism, whether

religious or of any other kind. a delicate balance is required to combat violence perpetrated in the name of a religion, an ideology or an economic system, while also safeguarding religious freedom, intellectual freedom and individual freedoms. but there is another temptation which we must especially guard against, the simplistic reductionism which sees only good or evil, or, if you will,

the righteous and sinners. the contemporary world, with its open wounds which affect so many of our brothers and sisters, demands that we confront every form of polarization which would divide it into these two camps. we know that in the attempt to be freed of the enemy without, we can be tempted to feed the enemy within. to imitate the hatred and violence of tyrants and murderers is the best way to

take their place. that is something which you, as a people, reject. our response must instead be one of hope and healing, of peace and justice. we are asked to summon the courage and the intelligence to resolve today's many geopolitical and economic crises. even in the developed world, the effects of unjust structures and actions are all too apparent.

our efforts must aim at restoring hope, righting wrongs, maintaining commitments, and thus promoting the well-being of individuals and of peoples. we must move forward together, as one, in a renewed spirit of fraternity and solidarity, cooperating generously for the common good. the challenges facing us today call for a renewal of that

spirit of cooperation, which has accomplished so much good throughout the history of the united states. the complexity, the gravity and the urgency of these challenges demand that we pool our resources and talents, and resolve to support one another, with respect for our differences and our convictions of conscience. in this land, the various religious denominations have

greatly contributed to building and strengthening society. it is important that today, as in the past, the voice of faith continue to be heard, for it is a voice of fraternity and love, which tries to bring out the best in each person and in each society. such cooperation is a powerful resource in the battle to eliminate new global forms of slavery, born of grave injustices which can be overcome only through new policies and

new forms of social consensus. politics is instead an expression of our compelling to leave us one to build us one the greatest common good. that of a community which sacrifices particular interest in order to share injustice and peace, it's goods and it's interest and it's social life. i don't know the difficulty that this involves. but i encourage you in this effort.

here i think of the march which martin luther king led from selma to montgomery 50 years ago as part of the campaign to fulfill his dream of full political rights and civil rights for african-americans. that dream continues to inspire us all. i am happy that america continues to be, for many, a

land of dreams, dreams which lead to action, to participation, to commitment. dreams which awaken what is deepest and truest in the life of a people. in recent centuries, millions of people came to this land to pursue their dream of building a future in freedom.

we, the people of this continent, are not fearful of foreigners, because most of us were once foreigners. i say this to you as the son of immigrants, knowing that so many of you are also descendants of immigrants. tragically, the rights of those

who were here long before us were not always respected. for those peoples and their nations, from the heart of american democracy, i wish to reaffirm my highest esteem and appreciation. those first contacts were often turbulent and violent, but we know it is difficult to judge the past by the criteria of the present. nonetheless, when the stranger

in our midst appeals to us, we must not repeat the sins and the errors of the past. we must resolve now to live as nobly and as justly as possible, as we educate new generations not to turn their back on our neighbors and everything around us. building a nation calls us to recognize that we must constantly relate to others, rejecting a mindset of hostility in order to adopt one of reciprocal subsidiarity, in a

constant effort to do our best. i am confident that we can do this. our world is facing a refugee crisis of a magnitude not seen since the second world war. this presents us with great challenges and many hard decisions. on this continent, too, thousands of persons are led to travel north in search of a better life for themselves and for their loved ones, in search of greater opportunities.

is this not what we want for our own children? we must not be taken aback by their numbers, but rather view them as persons, seeing their faces and listening to their stories, trying to respond as best we can to their situation. to respond in a way which is always humane, just and fraternal.

we need to avoid a common temptation nowadays, to discard whatever proves troublesome. let us remember the golden rule, "do unto others as you would have them do unto you." this rule points us in a clear direction. let us treat others with the same passion and compassion with which we want to be treated. let us seek for others the same

possibilities which we seek for ourselves. let us help others to grow, as we would like to be helped ourselves. in a word, if we want security, let us give security. if we want life, let us give life. if we want opportunities, let us provide opportunities. the yardstick we use for others will be the yardstick which time will use for us.

the golden rule also reminds us of our responsibility to protect and defend human life at every stage of its development. this conviction has led me, from the beginning of my ministry, to advocate at different levels for the global abolition of the death penalty.

i am convinced that this way is the best, since every life is sacred, every human person is endowed with an inalienable dignity, and society can only benefit from the rehabilitation of those convicted of crimes. recently my brother bishops here in the united states renewed their call for the abolition of the death penalty.

not only do i support them, but i also offer encouragement to all those who are convinced that a just and necessary punishment must never exclude the dimension of hope and the goal of rehabilitation. in these times when social concerns are so important, i cannot fail to mention the servant of god dorothy day, who founded the catholic worker movement. her social activism, her passion for justice and for the cause of

the oppressed, were inspired by the gospel, her faith, and the example of the saints. how much progress has been made in this area in so many parts of the world. how much has been done in these first years of the third millennium to raise people out of extreme poverty. i know that you share my conviction that much more still needs to be done, and that in times of crisis and economic hardship a spirit of global

solidarity must not be lost. at the same time i would encourage you to keep in mind all those people around us who are trapped in a cycle of poverty. they too need to be given hope. the fight against poverty and hunger must be fought constantly and on many fronts, especially in its causes. i know that many americans today, as in the past, are working to deal with this problem. it goes without saying that part of this great effort is the creation and distribution of wealth.

the right use of natural resources, the proper application of technology and the harnessing of the spirit of enterprise are essential elements of an economy which seeks to be modern, inclusive and sustainable. business is a noble vocation, directed to producing wealth and improving the world. it can be a fruitful source of prosperity for the area in which it operates, especially if it sees the creation of jobs as an essential part of its service to

the common good. this common good also includes the earth, a central theme of the encyclical, which i recently wrote in order to enter into dialogue with all people about our common home. we need a conversation which includes everyone, since the environmental challenge we are undergoing, and its human roots, concern and affect us all.

in laudato si', i call for a courageous and responsible effort to redirect our steps, and to avert the most serious effects of the environmental deterioration caused by human activity. i am convinced that we can make

a difference and i have no doubt that the united states, and this congress, have an important role to play. now is the time for courageous actions and strategies, aimed at implementing a culture of care and an integrated approach to combating poverty, restoring dignity to the excluded, and at the same time protecting nature. we have the freedom needed to limit and direct technology, to devise intelligent ways of developing and limiting our

power, and to put technology at the service of another type of progress, one which is healthier, more human, more social, more integral. in this regard, i am confident that america's outstanding academic and research institutions can make a vital contribution in the years ahead.

a century ago, at the beginning of the great war, which pope benedict xv termed a pointless slaughter, another notable american was born, the cistercian monk thomas merton. he remains a source of spiritual inspiration and a guide for many people. in his autobiography he wrote, "i came into the world. free by nature, in the image of god. i was nevertheless the prisoner of my own violence and my own selfishness, in the image of the world into which i was born.

that world was the picture of hell, full of men like myself, loving god, and yet hating him, born to love him, living instead in fear of hopeless self-contradictory hungers." merton was above all a man of prayer, a thinker who challenged the certitudes of this time and opened new horizons for souls and for the church.

he was also a man of dialogue, a promoter of peace between peoples and religions. from this perspective of dialogue, i would like to recognize the efforts made in recent months to help overcome historic differences linked to painful episodes of the past. it is my duty to build bridges and to help all men and women, in any way possible to do the same. when countries which have been at odds resume the path of dialogue, a dialogue which may have been interrupted for the

most legitimate of reasons, new opportunities open up for all. this has required and requires courage and daring, which is not the same as irresponsibility. a good political leader is one who, with the interests of all in mind, seizes the moment in a spirit of openness and pragmatism. a good political leader always opts to initiate processes

rather than possessing space. being at the service of dialogue and peace also means being truly determined to minimize and, in the long term, to end the many armed conflicts throughout our world. here we have to ask ourselves, why are deadly weapons being sold to those who plan to

inflict untold suffering on individuals and society? sadly, the answer, as we all know, is simply for money, money that is drenched in blood, often innocent blood. in the face of this shameful and culpable silence, it is our duty to confront the problem and to stop the arms trade. three sons and a daughter of

this land, four individuals and four dreams. lincoln, liberty. martin luther king, liberty in plurality and non-exclusion. dorothy day, social justice and the rights of persons. and thomas merton, the capacity for dialogue and openness to god. four representatives of the american people. i will end my visit to your country in philadelphia, where i will take part in the world meeting of families. it is my wish that throughout my

visit the family should be a recurrent theme. how essential the family has been to the building of this and how worthy it remains of our support and encouragement. yet i cannot hide my concern for the family, which is threatened,

perhaps as never before, from within and without. fundamental relationships are being called into question, as is the very basis of marriage and the family. i can only reiterate the importance and, above all, the richness and the beauty of family life. [ applause ] in particular, i would like to call attention to those family members who are the most vulnerable, the young. for many of them, a future filled with countless possibilities beckons, yet so many others seem

disoriented and aimless, trapped in a hopeless maze of violence, abuse and despair. their problems are our problems. we cannot avoid them. we need to face them together, to talk about them and to seek effective solutions rather than getting bogged down in discussions. at the risk of oversimplifying, we might say that we live in a culture which pressures young people not to start a family,

because they lack possibilities for the future. yet this same culture presents others with so many options that they too are dissuaded from starting a family. a nation can be considered great when it defends liberty as lincoln did, when it fosters a culture which enables people to

dream of full rights for all their brothers and sisters, as martin luther king sought to do, when it strives for justice and the cause of the oppressed, as dorothy day did by her tireless work, the fruit of a faith which becomes dialogue and sows peace in the contemplative style of thomas merton. in these remarks i have sought to present some of the richness of your cultural heritage, of the spirit of the american people. it is my desire that this spirit continue to develop and grow, so that as many young people as possible can inherit and dwell

in a land which has inspired so many people to dream. god bless america! [ applause ] >> the pope addresses congress for the first time in history. the first pope ever to address both houses of congress. very uncompromising things wrapped in deference of the american dream and for the family. let's bring in mary thompson. what stands out to you here? >> obviously, pope francis continued on the themes that we heard yesterday. his concerns about the climate calling on congress to protect the earth and also his comments on immigration to welcome those who seek the benefits that are here in the u.s., but he also said that we need to respect life from the most early stages and then also at the end and in addition to that call for an end to the death penalty. something that he and the catholic church, of course, have advocated for and extended a

period of time. he called for an end to the arms trade as well and for our audience, he called business a noble profession. again, something that about a 55 minute speech by the pope who ended with a comment about marriage and saying that he supported marriage at a time when traditional relationships are in question. so, again, a 55 minute speech by the pontiff. he was intrupd by congress about 30 times with applause. especially when he quoted things about america about it being the land of the free. back to you. >> mary thompson in washington. our thanks to you. as mary said, a very broad

politically savvy speech by the pontiff using america's own history and some of our own historical figures like lincoln, like dr. king, to hold a mirror to ourselves and it to further the arguments he was making. in the meantime, we've been getting some news as the pope has been speaking to congress about the president and russian president vladimir putin. for that we if to eamon javers. >> we're getting the word out of the crumb lynn now. the kremlin is saying that russian president vladimir putin will have a meeting with president barack obama in new york at the general assembly on monday. it's not clear whether the president will speak to vladimir putin before or after he addresses the united nations on monday and brings up the sense of the scope of the united states presidency with the president meeting with the pope here in washington yesterday. he has a state dinner for chinese president xi jinping today and then on monday he will be meeting now with vladimir putin. interesting moment last week in terms of popular culture.

we saw this prank call of the singer elton john made by pranksters impersonating vladimir putin. now we are told that vladimir putin has in real life reached out to elton john and requested a meeting with elton john. no word yet on exactly when that will happen, but sometimes art imitates life and vice versa, guys. >> i did not expect that headline to have legs. >> joining us on set is the chief at business insider. good morning to you. >> great to be here. john. kayla has made her way back from the bank of america meeting in charlotte. busy session, and stocks have not improved at all during the course of the pontiff's remarks. the dow is down 250 points or so. s&p, 1911, which is going to take you back to the 4th of

september. a number of stocks we're going to see if they can hold some of those august lows. that's going to be a big topic as we head into the. >> stocks are historically incredibly highly valued by now. it is -- it would be surprise if anything we didn't see a regression at least towards the old mean. >> caterpillar layoffs today. hp layoffs not too long ago. i assume the rich valuation you were talking about before looks more rich in the face of slowing growth. >> that's right. growth is still anemic. nothing is beginning to accelerate it. we have profit margins on average. we are still near all-time highs. you have pressures building up on the labor front. we don't pay our people enough.

pressure is there. regressing towards the mean. not necessarily collapsing, but moving downward, and stocks look even more expensive. >> this corporate growth story has been the story for the last three quarters. i'm wondering why now you think investors are beginning to be more sensitive to it. >> well, it's been the story for the last ten years. the problem is in the united states most of the country just isn't getting paid enough to buy enough stuff. i mean, ultimately folks have to begin to realize that revenue is somebody else's wages. we all get paid. we all got to buy things. you want to accelerate economic growth. you got to pay people more so there's money to buy things. it's been there, and then stumbles and surprises like caterpillar and wake people up to, hey, it's still not cured. >> by the way, as we've been talking, there is the pope making his way out of that joint meeting of congress. as a busy day still ahead, he is going to visit