welcome to squawk alley for the first dmonday of november. as we get a not bad start to the markets as we kick off november. first up though, we'll get some new details on square and its upcoming ipo. >> for all the talk of a slowdown or a stalling in the ipo market, carl, square is one company that is going to brave these water also in the next couple of weeks. sources tell me the road show where square goes and meets its investors will kick off at the

beginning of next week. meaning by the end of this week is when we'll get an updated filing with the company's price range, its implied valuation from that range. and of course now the talk will be can square actually achieve the valuation that it got in its last private round of funding? that was roughly in the realm of $6 billion post money. it's been hard for the comes in this market to actually attain this same valuation that private market investors have been giving them, but certainly they have a lot to talk about with first data having gone public. amazon getting out of the register business. also this dual role that he will hold at the top of square and at the top of twitter. ceo of both those companies. we have learned from sources that the first trade will take place the week before thanksgiving. look for it roughly at the end of that week. usually, we see ipos wednesday, thursday, friday and possibly thursday before thanksgiving for this ipo.

>> if square comes out of the gate and the shareholders are below the price they bought in at the last round, they're issued shares up until they get a 20% return. it's amazing looking at the ipo market. has a report out this past week that of the 12 total ipos that were $1 billion plus exits in 2014, three were below or at the last financing round. actually, this year, there have been seven in the first half of 2015, get this, 5 of the 7 have been at or below the last financing round. it really is the private unicorn ipo. can it jump? can that unicorn jump than gate? i mean, that really is the question. >> while kaelin just gave us that update on square, the chock is ticking for companies looking to go public this year. the number count, bob, pretty interesting. >> the window's closing really fast. i'm glad to hear this. what's going on here with square. but we've only got three or four weeks after this week for these

companies to come in because thanksgiving's gone. the last two weeks in december, knowinothing happens. there's a whole bunch of name also out there that potentially need to go very quickly here. i think the biggest one would be match.com. that's close to $700 million the talk has been. square has been all over. maybe $275 billion. ballast point brewery. mimecast, they're trying to raise $100 million. the terms aren't exactly set. remember all the big names that have fallen by the way side like albertson's is still out there. neiman marcus is still out there. even univision which we floated several times throughout the years. so all of of this is kind of this backup we're seeing, bad news for private equity and venture capital firms. the companies with $100 billion valuation or more, it makes it more difficult for them to go.

they're sitting out there and they want to go in 2016. it makes it a little more difficult for them. now, the important thing is, so far, all this problem with the ipo market has helped the ipo market. there's only 16 ipos that happened in the month of october. the important thing is, they cut the prices dramatically. 22% below the midpoint for almost all of them. remember, ferrari's the only one that priced at the high end of the range. the average return has been 4%. th is only in the last couple of weeks. that's not a terrible return. remember some of the ones in the middle of the year, they priced them at the high end and they drooped a week or two later. so cutting the prices has improved the effect on the ipo market. if you look at the ipo etf, the basket of roughly 60 ipos that r renaissance capital maintains, that's up in october, matching the s&p 500. it's good so far in terms of

cutting the prices, but i think you're going to need a lot of companies get through the door in the next few weeks. or else you're going to get concerns with those un korm also out there all looking to go public in 2016. >> speaking of ipos, rico reporting today that pivotal, the data crunching unit of emc, could go public next year. an ipo could be filed confidentally. that's going to be interesting to watch. as far as the year goes, it's one thing if the royals can tie it up in the ninth, right, we'll see if these guys can. >> there's so many pieces inside emc that people don't even think about. there's pivotal, which is very important, the technology they're working on for data analytics. they've got a number of very large customers. not opposed to the public markets. just doesn't want to be beholden to them in the way he was when dell wallace public. you're seeing these spin-off also as a strategy to make this

out-sized meal and emc make financial sense. >> emc strategy has always been this federation structure. trade publicly some of your different units to allow employee also to have some currency, some wealth creation there, but keep it all in the family. just because emc and dell are going to be combined privately, it seems like that's still going to be one of the preferred ways emc mon titzed some of these different units. >> in order to not only keep control but also gain scale. i still contrast that to what's happening with hp. here's a company that was built on scale. saying it can split up and get smaller and be more nimble. while at the same time, dell is bulking up. the bulking up strategy at this stage makes more sense to me. we'll get into the two pieces of hp. >> you're really looking at two kinds of ipos, which is a hot private company that may be overprized relative to what markets will pay. and a spinout of a traditional

or legacy type company. look at pay pal. the question is whether or not these are the companies of the future that can put up the growth to get the multiples people want. >> what was once hp began trading today as two separate companies. will sell printers to businesses and consumers. while hewlett-packard enterprise will focus on hardware. the ceo talked to us about the split. take a listen. >> if you look in q3, if you just separate out hewlett-packard enterprise, hewlett-packard enterprise grew in constant currency. q4, we're in a quiet period, so i can't comment, but you will definitely see growth in constant currency for hewlett-packard enterprise in 2014. >> interesting, this idea their strategy is die metically opposed, in her words, to dells. >> we're in this state where just saying there's going to be growth is supposed to be

exciting just on the top line. given everything that's happening in the enterprise right now, just being able to grow the top line is not enough in any given quarter. hewlett-packard enterprise has big challenges i focus on. one is selling servers without a pc business at scale to leverage costs. the pc business is in another company now. also, this huge services workforce that's in essence selling against the cloud. when you've got amazon, you've got oracle, you've got microsoft and others doing a cloud strategy, an enterprise strategy that involves fewer people. hp inc. i do think is more interesting. yes they're crunched by apple on one side. but they have also an enterprise business in manage print services that i think gives them a diversified stream. they're not, in my mind, as challenged as hp enterprise is. >> it's interesting to hear you talk about the different strategies of what a bulked up emc dell is doing and what a

streamlined hp inc. and hewle hewlett-packard enterprises is doing. now the conversation is already what do each of these units need to buy to get growth. >> right, and i thought her comment this morning was scary. when he brought up cloud, amazon, google, she said, that's not the business we're going to go in. we're too far behind. reminds me of the comments that rim made when apple came out with the iphone. we're not in that silly thing business. we're in this real enterprise. if she's in that business, i don't want to be in her business. >> isn't it being realistic? taking amazon head on, they'd be called foolish. >> i don't think head on is the way to do it but to say we're going to make some small -- to set a very low baseline to what they're going to try to achieve. to say we need to figure out how to get our small crumb of that. i don't say i'm taking on facebook or taking on google but i want to be in the same business as they're in. >> well, they cannot be in the infrastructure as a service business. because it's just too expensive. $2 billion a year at least. you've got to have data centers all over the world.

they have to figure out a niche inside cloud. whether it's platform as a service. certain software as service functions. right now, they're a supplier to that infrastructure business. and their margins are going to get -- >> back to this point. maybe they can do it. when you look at the amount of revenue. amazon web services growing like crazy. but single digit billions of dollars. it really is ending three or four, to use a bad analogy, but it's certainly early days. it's not like these are $50 billion businesses. >> i see your point. the countdown is on. we're just 24 day alsos away fr black friday. and doubling down on deals this holiday season. the company says it will offer 30,000 deals this year, double what it offered in 2014. 2014 good to amazon. shares up this year. the only other company to do that of course is netflix. and a 25% hike in the number of

temp workers. >> laugh all you want but prime day absolutely worked for amazon. those deals didn't excite me. i don't think i bought anything on prime day. but amazon was able to bulk up prime subscribers. they know how to pull the levers in this business and make it work. i'm not a lightning deal guy. >> i was wrong on prime day, it added 200 basis points to their performance for the quarter. i figured out why i was wrong. why people would want to buy random cables and adapter also at cheap prices. my mother goes to home goods every single weekend. and i asked, do people come back here every week? they said, dude, people come here every day. because stuff comes off of that truck. home goods revenue in the quarter that ended august was $885 million up from $773 million a year earlier. look at their other lines. mmx and tjx canada. those things are growing a few million dollars a quarter. people love buying random stuff if it's cheap, if it's deal.

that's what amazon figured out. mea culpa, i was wrong on prime day. >> the difference is you actually go into the store at tj max and home goods and you see things in person. how many people are randomly serving amazon -- >> a lot. maybe i need a cheap hdmi cable. maybe i need a coaf auto -- >> in my life, that's the mother-in-law market and it's lucrative. >> it's beyond lucrative. it works. for 20 days leading up to black friday, people are going to go buy random doneles on amazon and make 200 basis points again. >> and maybe buy a drone? >> maybe a chair. who knows where you can buy a red. >> chicos better watch out, that's all i got to say. mother-in-law market. >> john, good seeing you. >> let's get a check in on the marketings. dow is up by just about 96 points. s&p is up by 13 points, good for about three quarters of a percent. we didn't have ism manufacturing come in just above 50.

construction spending for the recent month up about .5%. shares of visa falling. it's earnings in profit just missed estimates slightly. the company's big announcement is it's going to buy visa europe in a deal worth more than $18 billion. it's going to leverage the company up just slightly. it's a strategic deal that's been a long time in the making. visa shares are down by nearly 3%. sprint seeing a nice gain after announcing plans to cut spending in fiscal '16 by $2.5 billion. saying most cuts through layoffs and cost controls. that stock up by about 2%. carl, people are talking about the car services that sprint won't be using. the yogurt and the snacks they'll be cutting. but a lot of companies are cutting that reality. >> we'll see what the earnings look like. an inside look at how popular the revamped apple tv was on the first weekend in stores. plus, with plenty of smart tech options including tvs, phones and watches, which are consumers spending the most on this holiday season? and facebook's instagram making a big move to take on rivals

like twitter and snap chat. more about that when squawk alley continues in a moment. if you're approaching 65, now's the time to get your ducks in a row. to learn about medicare, and the options you have. you see, medicare doesn't cover everything - only about 80% of your part b medical expenses. the rest is up to you. so if 65 is around the corner, think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. so don't wait. call to request your free decision guide. and gather the information now to help you choose a plan later. these types of plans let you pick any doctor or hospital that takes medicare patients. and there's a range of plans to choose from, depending on you needs and your budget. so if you're turning 65 soon, call now and get started.

because the time to think about tomorrow...is today. go long.

welcome back p cbs making an announcement on star track and its digital network. >> cbs launching it will announce a new "star trek" tv series in january of 2015. this is actually not about

television but more a big digital move for cbs. the series will launch with the preview broadcast on cbs tv network. then all subsequent episodes along with the premiere episode will be available exclusively on cbs all access. that's cbs digital subscription service available for $5.99 per month. it also is where you can get a cbs tv station live. this is really a big move for cbs. it's their first original series developed specifically for cbs all access. and i'm sure there's going to be a lot of questions for ceo less moonves about this move and how important this digital streaming service is for the future of cbs when cbs reports its earnings after the bell tomorrow. a big move to invest in original programming for its stand-alone streaming app. >> every time there's a new concept or a new show being developed, we see a different combination of distribution, right? in this case, is there precedent for the way cbs is doing

something this high profile? >> well, i think -- and i'm still reading through this release here. but i think, carl, it's really interesting that cbs is trying to create its own stand-alone app where cbs means something. i think we haven't seen abc, nbc or fox do anything similar in terms of charging for their individual streaming apps. obviously, there's netflix, investing in original content, as has amazon and hulu. as for a tv network charging, as opposed to cable, with something like show time and hbo, it's going to be really interesting to see how this goes. beave heard from moonves he's happy with how the launch of cbs all access has gone. we don't actually have any subscriber numbers yet. it will be really interesting to hear on tomorrow's earnings call if they can give any details of how many people are already paying for cbs all access and whether they think this is going to be get the core tv bundle.

it is really one of those broadcast networks that's not going to be in the skinnier tv packages. we'll see why they say they're doing this. certainly a big financial investment. >> big interday move for cbs. shares currently up 2.5%. our next guest has a healthy roster of clients that range from microsoft and cable vision and att. a new venture with goldman sachs. we'll talk about that. first, let's find out what his business might be able to tell us about tech device sales this holiday season. he is the ceo. it's always great to have you here at post nine. so the lead-in. what should we expect from device sales now that blackberry's closed their deal, apple's sold last quarter what do we expect? >> as we head into the holiday season, we're seeing a lot of interesting trends. one, online adoption for mobile devices. they're making it so easy for consumers to start a buying

process online, in store, and visit the retail store to -- very interesting dynamics. where typically going to a retail store became an experience for the user. today, we see a lot of connected watches. a lot of connected home capabilities that are going to be on the market today. clearly, your traditional lineup of smart phones for the holiday season are up and running. obviously, a big launch heading into the holiday season usually is a good trend. >> what about the watches, the fitness bands, the things that are outside the core ecosystem of just the phone? >> what we see, depending on how it is marketed -- i'll give you an example. the tablet device really took off with the phone when it became bundled. you're going to start to see operators and providers start bundling these devices along with traditional either your smart phone or your connected car. once that starts to happen, you'll see some of of that during the holiday season, that

has a tendency to really boost sales. we saw that almost when the ipads were a part of the family share plans being put out about two years ago. the following quarter, the trends for those devices shot up. >> you think the category at least of tab lepts might have seen its worst days? >> i think today, as it gets forward, yeah, you're definitely seeing more momentum. look at all the results it produced with all of our major customers. we saw it in the trends of our business. the tab lepts became a big part of those quarterly results. that's going to continue. you're going to see operators, whether it's at&t with direct tv. what's interesting is that for the first time in a long time, you're seeing a difference in how the big carriers are going to market and how they're positioning that. at&t more on the direct tv side. verizon more on the over the top service. that has a direct correlation to the devices you'll start to see them market and push into the markets every day. >> the tab lelets i see markete

are almost throw-way tablets. it's an android tablet, it's not exactly high grade. is that perception correct? >> i think on some instances, yes. it varies depending on how that marketer really wants to go to market. if you see companies like vodafone have a different approach. what you're seeing is they're envisioning a world with multiple devices. meaning five, six, seven types of devices. they'll position plans according to your usage. getting smart about the fact that all that personal content we have on the devices, that's something they know when you're accessing it from your tab lele. we see how they're using that information. >> cloud is more than half of your revenue as a company. there was some confusion about what happens when the end of a relationship with verizon approaches in 2018. you've done this deal with goldman to manage its enterprise cloud business that interestingly was developed in

house. are you going to need to seek more of those deals? >> our cloud revenue today is growing, both here in the u.s. as well as internationally. we're in european regions. we have over 150 million-plus cloud subscribers. it's a new way to look at innovation. who would have thought an operator company distributing software would team up with an investment bank. the reality of it, you're going to see more and more in the market. when there's so much complexity and you enter complexity, you become conscious of security. the opportunity for us to go into the enterprise space directly by taking our scale, we have 150 some odd million. we activate millions and millions of folks a week. and tying that into a very specific vertical. has been exciting for the company. >> we hear a lot of these banks self-describe as a tech company. this is one of the times we've seen it in action. >> in the past, these companies have typically gone out and made

the difference was, i'm going to provide that as a service to the customer. what's interesting with mobile security, i hear it in a lot of the trends today, is that most of the customers today when they think about mobile security have to sacrifice the user experience, right. who's ever gotten logged on. i won't mention all the -- six different times to get half your data. what got butchered was the customer experience. going forward, you're going to find our relationship to handle scale, security and work flow, with a very boutique set of ip which is for investment bankers became a really good partnership. >> we'll be really curious to see how it plays out. come back and see us again. up next, instagram rolling out a major new feature taking aim at twitter and snap chat.

taking a page out of the snap chat and twitter playbook,

instagram launch ago special feed over the weekend for anyone looking to see halloween-based content. instagram says it is a new way to experience big moments. it will feature the best videos instagramers post. yet another example of a big tech company, facebook, instagram, acknowledging that the algorithm can't do everything, right. human curation. >> twitter moments, beats and now this. pretty big example. >> you could argue instagram has been doing something sort of like this for a while when you go to the search tab or explore tab. it's had high level trending topics and associated posts. i guess this is a further step. >> maybe you know better, the degree to which that was heavy human curation. but the idea of taking the kardashians halloween costumes

and, you know, who was it that was jessica rabbit? >> heidi klum. >> viola davis' daughter went as her mom with a little tiny oscar. >> very cute. >> as we set our clocks back for fall here in the states, the world is right again. the european close is at 11:30. >> everything is back in ekwul lib brie yum. the manufacturing data is ticking higher on the revision. comments from the european central bank where he seemed to suggest it was an open question as to whether there would be further stimulus. jpmorgan -- this has actually hotted the rally in bonds. prices down. yields up across europe today. jpmorgan suggesting you shouldn't confuse this with what might be consensus building behind the scenes. albeit perhaps with less vigor. banks are a strong component of today's rally. commerce bank is certainly

higher. germany's second largest lender. reporting above expectations. reintroducing the dividend even as the ceo is out, having steered it through the financial crisis. the greek banks. on saturday, we have the stress test coming through from the ecb suggesting there's a hole there of $15 billion give or take. now, they have to come up with their own plans for recapitalization by friday. $4.5 billion of which have to come from private sources. so still that question of who gets bailed in and the degree of dilution on the shares still to come. top loser today is actually electrolux. this after the department of justice in this country on friday rejected its attempts at a deal, an antitrust deal. so it could take over ge's apply aepgs operations here in the united states. so that now plays out through the court system in this country. electrolux had thought it would be able to get a deal with the doj it hasn't.

the stock's down, albeit off its low. >> simon hobbs. when we come back, an inside look into how popular the revamped apple tv was.

good morning. here is your cnbc news update this hour. the national transportation

safety board says it's found the wreckage of the ss el faro. sonar images appear to show the cargo ship in one piece. it sank with 33 crew members on board. ships remained docked in greek ports as they walk off the job in a 48-hour strike. they're protesting against further pension cuts and labor reforms agreed to with greece's international lenders under its bailout deal. former president jimmy carter participating in a habitat for humanity event this morning in memphis. he was joined by his wife and country music stars garth brooks and his wife trisha underwood. the 91-year-old carter announced he had been diagnosed with brain dancer. a rescue effort in france to save four of 10 whales found washed up on a beach. firefighter using hoses to prevent the whales from dehydrating. the four survivoring wales were successfully returned to the

water. it's a little bit of good news on that front. that's the cnbc news update at this hour. let's get back to squawk alley. >> we are getting a news alert involving george soras and bill gross. >> here's what we have. according to dow jones citing sources as well as public fili g filings. the firm run by soros pulled approximately $500 million investment they did make with janice and bill gross from a little about a year ago perhaps here. the soros firm invested that money about a year ago after miss gross left pimco, the company he co-founded, and then joined janice capital. according to the story here. we are watching shares of janice. they did take a bit of a dip on this but are now recovering. as we watch what's happening here. but, again, very much a headline. bill gross, a very high-profile departure. we want to note we did reach out

to janice and they did come back officially and -- they did offer no comment, particularly -- on this particular story. the latest here from soros and gross. back over to you. >> the latest generation of apple tv hit stores on friday. if the numbers are any indication, gaming could be a bright spot. josh lipton is live in san francisco with more. josh. >> well, john, while we don't have sales figures just yet, we are getting our first glimpse of how consumers plan to use the device and you said it, gaming, 9 to 15 max citing data from a developer broke out the top paid apps in the tv apps store. it's games like beat sports, galaxy on fire. the top free apps include more games as well as hbo now and nat geotv. one of the distinguishing features of this new apple tv which starts at 149 bucks is its own app store with hundreds of apps ranging from streaming

services like netflix and hulu to games. apple now offers a siri enabled remote. users can search for content using just their voices. one potential drawback, unlike the latest amazon tv, apple chose not to build in 4-k, the highest new tv video standard. though he says this isn't a big deal since there hardly is any 4-k video available. tim cook says the future of tv is apps. the apple tv won't have a big financial impact at least in the near term. piper estimates it could add about 1% to revenues in the december quarter. listen, apple has shaped $1 billion ios devices. if cook can get a significant number of those fans to buy an apple tv and maybe even subscribe to that much talked about subscription streaming tv service, that could mean a lot

of money, even for a company that now boasts more than $200 billion in cash. john, back to you. >> let's stick with apple tv and whether it's the future of television. this new information on gaming strikes me as positive for apple because in paid apps, games are huge on the standard apps store. you'd want to see that developer ecosystem moving to apple tv. if i'm a game developer, this tells me, all right, jump in, the water's fine. >> absolutely. i think apple taking a few years to rethink their ios and moving into the tv ios, creating an opportunity for app developers. seeing an early feedback from the gamers. there's a greater opportunity people will say, do i want to watch tv or do some casual gaming? this could be a game changer. between apple music now. you can access that through your tv. you'll be able to access games and potentially managing your entire home. all the devices connected

through apple tv. i wasn't such a fan of apple tv a few years ago. i think it's still a very competitive market. all these hedges are really positive. >> so looking at the landscape heading into the holidays, you've got apple's ecosystem led by this apple tv device. google's got youtube red of course. amazon still going strong with the fire tv. any sleepers you expect amorning that group who might do particularly well? >> it's hard for me to pick a particular horse. all i know is this is the same discussion about owning the set top box, owning the tv that's been going on -- >> battle for your living room. >> right, since it was comcast and adelphia. now we're evolving it forward. i think the other opportunities not just focusing on the tv. in order to get the streaming music in. soon, you're going to get the connected home. maybe to manage different health care information all in one place. all these things in one place for information is really positive. the actual tv will become a dumb device. it's the other things that will be the smart device. the screen will be a dumb

device. rather, it will be your phone, tablet and potentially this little box, all the intelligence will be. >> you mentioned like google's got nest, apple's got all the things you just mentioned. who has circled the wagons the best? >> i don't know. it's a tough -- >> but that is the point, right? to have these little pinpoints of access that sort of add up to something larger. >> i would say all three of those are doing well. you can't count out the actual cable providers and the people that already have a box in there, right. so when you have like directv coming out with their own approach or sling tv trying to come out of dish. everybody trying to figure out their own approach. i do think that apple because of how much people use apple, has a really interesting edge to be able to break through. i think they did it poorly a few years ago when they focus just on the consumption of the media. they're making it more intelligence by opening it up.

where people want to use apple not as a stand-alone device, they want an apple life. >> do you think the apple, the amazons, the googles, are doing such a good job at developing products in house that a pebble, for instance, wouldn't be able to be as successful today? a company that was trying to create a product on a crowd funding site? >> well, there was evidence of that before. there was smaller companies that tried to break through. i think it just takes a lot of money. when you want to scale out in the media world, you are either squashed or by the time you're big enough, you're bought up by somebody. so i think it's a complicated -- you got to give credit to a company like netflix who breaks through and creates scale. netflix is going to look to partner with all these companies whether it's xbox or playstation or amazon and apple. it will be interesting to see one day does netflix decide to get into hardware in some way. >> before we go, the scc handing

dop the final rules, giving small investors access. >> this is the sleeper story of the year. which is, you know, 30 years ago you used to xacall your stockbroker and say can i get some shares. now we're used to being online trading. similar thought. you had to go through these gatekeepers to get access. now it's going to be a game changer coming out next year. you'll be able to start investing into any idea your neighbor or strangers and it will be capped up to $1 million in terms of the raise and up to $10,000 or $2,000 based on how much you make on individual investments. there will be some evolution and learning. this will not happen overnight and will not be perfect. a decade from now, you're going to be seeing the same thing like day trading where it becomes a part of life and open access to capital. >> is this a situation, though, where there is the same downside risk but more upside risk?

because you can put -- you have been able to put mope into crowd funding projects in your end payout was the product you got shipped to market. but there was always a risk that the product didn't ship. is it now just a situation where you can also participate in the equity upside of of this product but there's still the risk the product doesn't ship to market? >> since we launched in january 2008 we distributed over $250 million. none of that has been for profit. follow our funding, there's been $500 million that had us followed from institutional folks, showing the validation is there and they want to invest. some of those companies are now worth hundreds of millions of dollars and will become unicorns. folks want to participate in that. since we launched, we always wanted to democratize access to capital for all reasons. whether to buy a product. whether because you care about the person or the cause. or you want to participate in the profit.

kn you're going to bring in a whole new wave of funders. it's exciting. >> caveat emptor, of course, there's no limit to american greed as we know here on cnbc. thank you so much for joining us. a rough day for chipotle and a rough few days for some customers in the pacific northwest. that stock down 2%. we'll tell you exactly what's going on. first, rick santelli. what have you got your eye on today? >> i can't help but continue to think about china and infrastructure and this notion, growth at any cost, and all roads lead to infrastructure. we're going to talk a little infrastructure after the break. ♪ today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve.

that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪

coming up, the man at the center of the valiant controversy is with us. sit tron's andrew left is live just as his firm's latest report is released. plus, well-known market maven ed yardeni on why he's the most cautious he's been in years. and the setup on the trades in this week's big earnings. >> in the meantime, let's get over to the cme group, get the santelli exchange. >> when you take a macro view of markets, it seems like many roads lead to interest rates in the 10-year sector unchanged on the year.

dow and the s&p are very close to unchanged. to me, this makes sense. does this mean there's not going to be lots of volatility that's still -- we end up at the unchanged exit on the ramp? of course not. there's going to be lots of volatility. but i think it's long-term perspective. what makes economic sense versus growth. one reason i continue to look for growth is because how far governments are willing to go to try to create growth. we've all heard of chinese cities that were built and nobody lives intere s there. they're reupping the notion. they're not only reupping various infrastructure products to potentially build more of these cities but the population, roughly 1.3 billion, some of these projects just are completely at odds with any kind of rational growth in their population. you know, which leads to the notion that very few leaders

trying to take care of and control and thinking of all the potential needs for society never work. some of those empty ghost towns were created because of the big demand for coal. governments can't plan. markets need to plan. our energy market and the tech wreck in 2000. things work themselves out. investors are gun shy to make the same mistakes again but not so for central plan. let's think about infrastructure against the notion of some of the things that are slowing down growth. when it companies y comes to i, we talk about it all the time. if you can't see it, you know, we need new electric grids. i get it, roads, i get it, but the issue is many times the infrastructure products aren't realistic or they're overbudget. in the old days, you know, we go back to the eisenhower administration. look at the numbers. look at the completion. nothing like today. it's really more about faux

growth. we're supposed to use our imaginations that infrastructure has to be good. the things that are so obvious that are the problems. health care, regulation, tax policy. and if i hear one more person in the media trying to bring the inversions to patriotism, if there's anywhere the word pat o patriotism fits, it's that we haven't reformed tax policy and we blindly let some of the policies go. instead of trying to wave them back, we make fun of them because they're unpatriotic? give me a break. john ford, all yours, sir. >> up next, the websites are working this time but the health care landscape still in flux. plus, we'll look at what's working and what isn't. back in a moment.

the third year of open enrollment for obamacare getting ready to kick off. a look at how they're getting ready. >> the obama administration is expecting that enrollment is going to be fairly flat this year. even the large insurers are finding it's hard to navigate these new obamacare exchanges. but this part of the office used to be fairly empty. but they are positioning themselves for growth. in fact, they have added hiring threefold. from about 100 to 400 this year. as they are positioning themselves for growth and

expanding. they're adding two big markets this year. texas and california. after having expanded into new jersey last year. this is a time when they are looking at what they've done in new york and trying to recreate it elsewhere. they're not profitable yet. in new york in 2014, they lost $30 million after taking in $60 million in premiums. part of that was spending on growing the infrastructure. and co-founder and founder says here in new york they're on track to get profitable within the next couple of years. >> we generally think we can get to profitability maybe two or three years after we enter new markets. so we should start seeing that now in the next one or two years. and then we -- as we sort of like roll out additional markets, we'll continue to invest two years ahead of time. >> for this venture firm, it

certainly helps they have some heavyweights behind them. they just got $30 million in funding for google ventures. they are looking to continue to grow here. back to you. >> all right, thank you very much, bertha coombs. when we come back, an early read on the success of the program from one of apple's partners.

apple this season has rolled out its program and partnered with citizens financial group to finance the plan. we have an update from the ceo earlier on squawk on the street. >> at the initial rollout, this was really just an in store offer. soon apple was going to move online and that will really ramp it up. we're ready for that been we have already made over 150,000 loans. we have over $125 million in balances. we see this as a potential to add unsecured credit. this is actually unsecured installment credit to the borrowers. >> i see this as big news. not necessarily that many. tim cook got a question on the apple earnings call.

versus online and signups in the store. we have the ceo of the bank saying apple's going to do it soon and they're ready. >> if you're a bank like citizens, this is the gold medal, to be underrighting. relatively low risk. relatively high credit borrowers. when you think about a car or a house, this is much less expensive. but still getting to capture apple's customer base. >> not to mention median income levels for apple. remember the story when some of the online travel sites, that you were shopping from a hard piece of hardware, the fares were higher than normal. >> i find it hard to believe that was legal. all right. shares of chipotle, we told you about it, falling more than 2% this morning. that's because 33 locations have closed in washington and oregon because of an e. coli outbreak.

22 case of e. coli reported customers who ate at six restaurants in the region. the company says an abundance of caution led them to cancel it. we hope those people are feeling better and the outbreak doesn't spread. >> absolutely. let's get to wapner who has a big show with citron. let's get to the half. >> all right, carl, thanks so much. welcome to the halftime show today. joe terenova is here. our game plan looks like this. valeant latest. the man at the center of the controversy is with us today. he join us in a cnbc exclusive interview. the earnings outload ahead of fit bit. and the setups and the trades to make you some money. the winning streak at stocks now at