>> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box here on cnbc. we have a live report from michelle in paris in just a moment. but first let's get a check on today's market agenda. the consumer is the name of the game today. quarterly results are due from walmart, home depot, tjx and diks sporting goods. october's consumer price index is out at 8:30 eastern time and later in the morning industrial production and the national association of home builders latest index of builder sentiment. take a look at the futures, this is after wall street's best day in three weeks. the futures are higher once again. dow futures up by 70 points.

s&p futures up by 8 and the nasdaq up by 21. >> quarterly results coming out from home depot. here's what's happening. the company beating estimates by 4 cents with profit of $1.36 a cha share. the home improvement retailer also forecasting full year profit and that's also exceeding estimates. we'll talk about that in just a minute. among the other big stories, the dollar hitting a 7 month high against the euro this morning. among the reasons, expectations that the fed koul begin to raise rates next month. a lot of whale watching on wall street as some of the most powerful investors reveal their latest portfolio moves. carl icahn swapping his stake in ebay for the same number of shares in paypal. the activist investor also

disclosed his position in iag. now we know the numbers. he has been calling for a break up of that insurer. also david einhorn's green light capital had a tough time of it boosting it's stake in apple in the third quarter. hedge fund also upping it's holdings of general motors and michael korss. we'll have more later this hour. >> home depot's market cap right now, 155. 155 billion. ibm is 129. so someone started home depot in his lifetime and that's a reflection of the past 25 years you could either own home depot from zero to 155 billion or own ibm from 200 billion back down to 129. really a tale of two

different -- >> trajectories when you're looking at these stocks. one of the things we didn't get to him yesterday was his thoughts about share buy backs and when it makes sense and when it doesn't and the flight of capital. why it makes sense to be in the high growth companies and why you see big valuations in those companies as a result. >> someone told you i'm going to start a chain of hardware stores and put mom and pop out of business -- >> 155 market cap for home depot. unbelievable. >> let's tell you about stocks to watch this morning. urban outfitters down sharply. quarterly comp store sales fell short of estimates. the stock had been under pressure during the regular trading session though because the company announced its purchasing an italian pizza chain. some stores already have restaurants and coffee shops attack attached to them.

are companies going to have to lure people in. you can see the stock is down by 10%. aig announcing that it has adopted proxy access that will make it easier for investments to nominate directors. a shareholder that will be able to nominate two candidates of 20% of the board. aig is a target of carl icahn. that stock is down by 15 cents. also shares of nuisance communications getting a boost after better than expected earnings and revenue. that stock up by 9%. >> one of the great take over targets. we thought apple was going to buy that company. they do the voice recognition. apple has never really admitted who they use some of the licenses from but nuance has always been the company that people expect. let's tell you about stocks to watch this morning. enbridge cutting 5% of the work force. now blaming the long slump in crude prices for that. shares of wayfair this morning

under a bit of pressure. hit after whitney tillson knocked it calling it his biggest short position. it will trade below $10 within a year. also chinese internet giant daidu and citic bank are working on setting up a direct bank in a push to compete with rivals. they would need to issue a license to establish such a set up. the bank would likely focus on wealth management products and loans to consumers and small companies. >> the broader markets this morning. you saw yesterday and we noted that europe was well behaved yesterd yesterday. we're adding it up over 200

points higher and some of that is from being down 450 points on thursday and friday and big rebounds in energy issues and defense stocks also yesterday but now after u.s. markets above 200 yesterday, there's today over in europe. qe is, you know, full on over there but you would think there would be some i mean i guess it's as slow as it's going to get over there but the slow growth story is already in place in europe but obviously the developments over the weekend are not going to help economic activity. there's asia, japan, the hang seng and shanghai. still in a good market after trading at bear market territory after a big run up and then there's crude today. a big day yesterday and chevron some of the biggest gainers in the markets yesterday. it's weird. we now seem almost correlated

with the oil markets. some days more than others it seems like. >> 228 on the ten year. 107 again on the euro earlier today. 106 now. 10664 and finally gold which is -- i don't know, people run to the dollar and to bonds at this point. they don't go into gold anymore. >> now back to the latest of the aftermath of friday's deadly attacks in paris. michelle joins us from france. >> beckdy here's what happened overnight and this morning that you need to know. two arrests in belgium. the police there saying they charged two with complicity and terrorist activity. however they do not believe the two individuals were in paris on friday night. on that note the manhunt is on going for two individuals. the alleged mastermind of the

flot a plot and one of the men that rented a car found outside of the theater where so many people died. they vowed more coordinated action around isis and overnight the french did more air strikes in syria in the self-proclaimed capital of the islamic state and that's the group that took credit or responsibility for friday night's attacks and then outside of the country of france, russia now saying that they do believe it was a bomb that brought down the metro jet plane in egypt and i bring that up only because there is this now increasing concern that when you pair what happened here friday night with what happened in lebanon are we seeing an increased pattern, a threat that suggests there will be far more terrorists attacks in the future and what kind of response needs to come either from individual countries or from coordinated action at this point from the

west. guys back to you. >> michelle, thanks. after 200 plus points yesterday up another 70 this morning. in contrast to the traditional flight to safety trade we've seen after past terrorist attacks, joining us now is the chief economists at rbs and the executive director at morgan stanley wealth management. both of our guests, i guess, are looking beyond -- dan, looking beyond the developments in paris on friday and viewing the oil decline is good for consumers and that takes hold of you. >> absolutely. good to see you again. you can never down play the human impact of what happened on friday. it was horrible. historically however when you look back at terror attacks they haven't had longer lasting impacts on the market and markets have tended to rally in the weeks following these types of events. now while there might be a near term hit to consumer spending on fears we think the two bigger

drivers to your point are low gas prices and wage inflation, particularly at the low end. that's a trend over the last several months that we think continues to persist and drive consumer spending in the u. s. >> we still have the slope in the yield curve so that lessons the likelihood of a slow down here and two of the head winds, emerging markets slowing down and the devaluations in china, both of those are starting to abate. so you think that we go into the next gear in the u.s. economy? >> we could still see positive returns for the u.s. market. the u.s. economy can remain resilient in the face of all the overseas developments. you mentioned it a moment ago. shanghai index is off of the lows. a lot of data stabilize on the retail sales and the way we look at it if we zoom out and think about em, there's no reason why they can't follow the same play book that occurred in previous

developed market analogs. look at the u.s. going back to 2009. we had the dollar weakening. japan also did qe and had weaker currencies that lead to growth as well. europe is the latest back in january. so why can't em follow that same precedent? we think that will stimulate growth going forward. >> and michelle. it's crazy. expects a rate hike either in december or sometime in 2016. he's out on a limb here. he says either december or next year or the year after. >> well, i'm still saying december although it's 92 or 98%. one of the polls i had seen last week had 92% of economists. >> that's a different story though. >> which is why we talk about looking at the odds implied in the markets for fed funds rate

hike. this is a reminder of why you'll never see it fully priced in because something could happen in the days or weeks leading up to the meeting that could change the whole landscape. now i don't think as tragic as this was that the paris events would yet fall into the category that would derail the baseline plan to take action this year but watching and then seeing how financial markets have reacted reinforces that point and watching to see the fall out in terms of financial conditions. a tightening in reaction to any global event to me is the biggest thing to be watching. >> we have a 250 sell off on thursday and then friday and then we didn't get through 24 hours before paris. so we still have four.

>> exactly. >> it's a very uncertain time globally now with this on front of us and who knows with market breaks and everything else we have to deal with. walmart down 30 or 40%. macy's and nordstrom down 30 and 40%. >> there's jitters going into the holiday season anyway although i think the fundamentals for the consumer look solid. so i think it will be a fine holiday shopping season to say the least. we have seen this from the fed before. they lead us to the edge and always something dissuaded them from taking action. >> they would be crazy to raise now. >> well, i was going to say. >> there's no inflation. the markets are uncertain. dollar is off. >> 19%. >> they would be insane. >> the dollar is the one thing though. >> they would be insane to raise rates. >> i wouldn't be shock first degree the dollar sold off on the news. >> let's see if i can talk them

out of it. >> when they race. >> the dollar is not up, i mean, it's up sharply against the euro and major currencies but for the u.s. economy and inflation watching the dollar's performance against our other important trading partners is more key and that's not the h the move in the recent couple of weeks that you've seen. >> verses the canadian dollar? >> well, a big part of that is china which of course has the peg but that for inflation in particular given how much consumer goods we import from china, the fact that you've got that kind of stable situation at least the devaluations lead to that and strengthening fwens the currency but now it's been very interesting to the fact that while the dollar strengthened again against the euro which is so highly watched against china and mexico, but the bottom line is against countries that matter for our trade and economic outlook that's a different story.

>> i wouldn't be surprised to see the dollar sell off on the event. when the fed goes into action. that was the case in the last three hiking cycles by the fed. dollar strengthened into the event and then sold off actually there after. the currency market someone of the most sophisticated markets out there. a lot of folks anticipated this move. >> friday is not going to be -- >> it's the fourth. >> how many weeks away is that? >> janet yellen is speaking december 3rd and actually december 2nd and december 3rd. >> ahead of the numbers. >> ahead of the numbers. if the fed is really geared to thinking at that time that they're going she's going to send a very strong signal ahead of the payroll reports because she doesn't want to have a situation where the markets are

on the fence. they cannot surprise the markets. >> what if last month is revised down. >> but she has to try to reverse the market reaction from that data. does it really come down to one last employment print? she has to use that as an opportunity to layout a bigger picture of case of why it makes sense and leave it up to that employment report. >> six year low in copper. >> but again for the u.s. and the u.s. inflation outlook only a third are goods prices. it's much more about services and service inflation. 25 basis points that's the problem, right? sitting at zero makes it seem like 25 basis points could derail the whole thing. >> it's the change itself. >> it's all very gradual. >> it's an inflection point. so too early for the employment

figure countdown clock? when do they start with christmas? >> black friday, right? >> we did k do that. >> so this is december 4th? we have to get the block up on the board. >> i wanted .2% so we know exactly how long before the most important employment report in history. >> in history. >> i'm going to expect debate type numbers. republican debate type numbers. >> yeah. >> i watched for an hour or an hour and a half. >> you want that hour back, don't you? >> no, i'm glad i did it. >> thank you, guys. we'll get the clock going for you. we'll get the streets reaction from dow component home depot

that had better news going forward. plus an early loss for two fantasy sports giants but draft kings and fan dual says this fight is far from over. we'll talk about that story next. first as we head to a break, here's a look back at this date in history. proud of you, son. ge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world.

welcome back. draft kings and fan duel losing an attempt to new york attorney general's effort to shutdown their sights in the states. denying temporary restraining orders. that order would have stopped the attorney general's attempt to declare the games illegal. gambling and injunction against the companies will be heard in a state trial court on november 25th. also the high profile lawyer is leading a draft kings case against the ag snyder man and will join us live on squawk box tomorrow to talk all about it. >> news out from the food industry this morning, taco bell announcing it's going to sbich to cage free eggs by the end of 2016. >> cage free chickens? >> i'm just surprised that eggs would even try to escape.

they seem -- i guess they could roll. >> wow. >> yeah. >> got to keep them out of the cages. the eggs want to be free. they're going to start cracking open. >> i actually think that like the chickens are in these things where there's like wire on their feet, you know -- who wants to stand around on wires all day long. ahead of the time line of many of its rivals -- i guess they have egg stuff in the morning. >> in the breakfast. >> but in general you don't think of tacos and eggs. fast food chains have been under pressu pressure. maybe chickens too. >> i think it's got to be chickens across the board. >> this is a more humane way. and use meat raised with fewer antibiotics. they use the equivalent of 130

million eggs each year. >> big breakfast business there. >> they do. yeah. change at mcdonald's, a replacement for the dollar menu in january. they will launch the mc pick 2 menu. customers will be able to pick two of the following for $2. mcdouble, mcchicken, small fries and mozzarella sticks. after that it may change the details of the offering but it will keep -- i will be keeping the mcpick concept. >> it just sounds like a sequel or something of a movie. >> kind of does, yeah. >> in other corporate news german antitrust authorities are investigating amazon and apple over an agreement about selling audio books. the subsidiary is the exclusive provider to the itunes store in germany.

they are reporting that they account for roughly 90% of the audio books sold in the country. >> got to protect all the competition in the big audio book market. yeah. i said that sarcastically. home depot with better than expected earnings this morning. joining us is the senior research analyst of course. >> good morning. >> so your headline, you could just say better, better. >> that's it. it's another very good report from home depot and the big headline here is going to be that it is following a lot of missteps by retailers lately. this is a sbrieth spot. home depot does 7.3% comp in the united states. that's despite challenging weather in october. beat eps. traffic was good in the stores. a very, very solid report. >> but this says nothing about the rest of the industry? >> i think home depot is a bright spot. what we have seen for awhile now

has home improvement performed better than other area of retail. i think that macy's and clothing retailers are hit harder than home depot by weather. >> for macy's it's not cold enough so people will not getting out and buying heavy coats and sweaters that are there. home depot wants bad weather or good weather? >> they want a shift in seasons. they probably sold more warm weather -- as the temperature stayed warmer in october they probably sold more product. >> outside stuff. >> but generally they want the change in seasons. lowe's sales tomorrow will be fine. we'll see. but lowe's has a misstep on the expense side. i brought a reports to our clients on a few weeks ago. if you take apart the guidance layed out there their forecasting a pretty significant flow through in their sales.

>> the thing that i'm trying to figure out is are we supposed to put home depot in the same category as the clothing retailers and walmart and amazon and start thinking about the consumer at large. home depot has always been separate from the pack and almost everything that they do seems to not have any sort of similar botic -- >> much more closely tied to the housing market than anything else. >> if my view and having it for awhile now sits separating further. it's a much, much better run company. home improvement is different than clothing but home depot has become a much better run company. >> thank you. >> thank you. >> appreciate it. >> when we come back this morning, a major controversy in the wake of the paris attacks. a growing number of u.s. governors declaring they will not accept refugees. we have a live report right after this. it's more than a network.

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welcome back to squawk box. we have been watching the european stocks and they're rallying this morning. wilfred frost joins us from london. good morning. >> good morning to you. yes, yesterday we saw asia and europe mixed to down on certainty after the weekend's events but the rally on wall street yesterday carrying through to both asia and europe today. as you can see european markets surging ahead. around about 2% of gains. france itself up 2.3.

germany just shied of 2%. confidence data also very positive this morning but let's look at the stoxx 50 today. most of it is a bounce back from soft performance last week. you can see that toward the end of the month chart. almost as bad as in the s&p 500. europe down about 3% last week. so some level of the bounce back in equities globally is because we had declines last week as opposed to a bounce back from paris. the euro dollar highlight ace similar story. yes there's been some safe haven buying following the paris attacks but much more than that it's a longer trim which is based on hawkish fed and dovish ecb. they have suffered over the last

couple of days but in general the trend today is positive bouncing back from a tough week last week for european equities. >> all right. wilfred, thank you. now to washington news. a growing number of u.s. governors declaring they will not accept syrian refugees. >> as governor of the state of texas i will not roll the dice and take the risk on allowing a few refugees in simply to expose texans to that danger. >> i'll always be willing to at least hear what the federal government has to say, okay? i think as a public official that's my job. but hearing what they have to say does not mean saying yes. >> and even in france john harwood the president talking about changes to the constitution that would change dual citizenship rules and other things so following something like friday maybe not a total surprise to see this.

i was more, i thought john you might talk about that press conference, the rather contentious press conference the president was objected to yesterday. i even saw some tweets that said the media, even the mainstream media was actually turning against the president yesterday on some of the analysis of how that went? that he was thin skinned and snapped at some reporters. it was not a great display. did you see it that way? >> well, they were asking him tough questions and when you have a massive attack like this and you're the president and you're saying your strategy is work, that's a pretty hard thing to communicate in that environment. he has been taking a lot of

criticism. she doesn't think the strategy has been effective in containing isil so that come with the territory. the former deputy cia director making the same case. what we're doing is not working. we need to do something different and the president was digging in and saying i have the right approach but it's going to take time and that if you have people that are willing to lay down their lives they're going to be able to kill a lot of people if they choose to do that. that's why being president is a tough job -- let me just make a point on the refugees, that for now is the biggest domestic ramification of this crisis which is you have got so many governors, nearly all of them are republicans. but not all of them. the democrat from new hampshire, they're saying stop, we don't want refugees into the country.

the president tried to push back on that in the press conference and he, in particular, targeted the idea that reference should be given to christian over muslim refugees. called that shameful. that is a significant debate that we are having right now and we had a tweet last night from the main executive rupert murdoch saying a proven christian should be allowed in and not others but that is an indication on the right of the spectrum but the emotions and the concern, fear that people have. >> right. the journal makes a point that maybe the crisis wouldn't have gotten to this point if there would have been american leadership earlier. the one thing that struck me, to say we don't want to shoot first and aim later when this has been

two years of two, three, four years of hamlet-like indecision and not facing up to the threat and just saying a series of times to kick the can down the road and not address the issue which resulted in this huge humanitarian problem. this refugee problem and you can't say now that we don't want to rush into something. you can't say i'm worried about shooting first and aiming later, now. people are going to laugh when they hear that. >> depends on what the something is. he's making the case that a strategy that involves were large numbers of boots on the ground is not -- >> maybe there was a time when there was a group that you could have helped out. maybe more air strikes would have helped? a dozen things could have been

done. >> that's the criticism that he faces and rejected in the press conference. he's making the argument that a large number of american boots on the ground is not the way to prosecute this and you don't have many republicans especially running for president saying we do need boots on the ground. lindsey graham is an exception. he says i want 10,000 or more american troops. others will vague saying you can't put a number on it. need more special forces and that indicates the political squeeze play that the administration is under but also all american politicians given how people feel about involving the united states in another conflict. if you're not going to have large number of troops, what's your strategy? it's bombing and special operations and trying to build up indigenous forces and plainly that has not been adequate so far. the president made the argument

that isis had been geograph geographically contained but it's not stopped. >> one thing he said during his speech is look, we shouldn't have a religious check for american sympathies. and that struck me. but then i went back and watched what jeb bush said earlier about how we should be allowing christians in because they're being specifically targeted for their religions and that's a slightly different take than what the president said yesterday. i understand it's not the same coming from everyone but that's a valid point. that people are being targeted for their religions too. >> yes. that is a valid point. the response from the administration is that the vast majority suffering as a result of the violence are themselves muslims. so there's a lot of innocent people whose lives have been destroyed and disrupted by this conflict. it's a horrific conflict but how

we absorb and help in a context like this is a difficult problem. >> people can disagree though and i don't know if i'd say people are popping off. republicans are popping off thnd they're trying to get know say that i'm going to win. so he's in a position where he doesn't want to either lead or win or look like he is leading? what's the alternative to winning against isis? >> no, no -- that's not what he was saying. >> what was he saying? >> well, if you look at the entire statement he made, the statement was he doesn't want to act in a way that is on fake solutions. when he continued talking he said, american leadership or america winning in ways that

isn't winning. >> that's in the eye of the beholder. >> yes. >> there's no question about that. >> that isis is contained some might consider that a slogan airing. >> that's why he's in a difficult position. that's right. >> when we return, coming up, the ceo of nicole miller on the state of the american consumer and later we'll welcome maggie wilderotter as our guest host and she's bringing friends with her. we have a packed show just ahead. don't miss it. we're coming right back. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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>> shares of home pdepot rising on better than expected results.

the s&p 500 retail index is now down almost 7% just in the last week. our next guest runs one of the most famous fashion design houses and he's co-founder and ceo of nicole miller. i like -- why nicole miller? why din you name it bud -- >> the corporate name is cobra. so we're trying to get a corporate name and i said what are we going to call this thing and my wife said do your name backwards. make it cobra. everybody thinks it's a snake or something like that. but it's my name. >> but for -- nicole miller is better, you're right. >> and nicole miller turned into a great brand but you know people asked me how do you get a brand name like that? well, when mrs. miller was

giving birth she looked at this baby and said what should i name it? and said what is a good brand name? nicole miller. that's the logic. >> your business, what's the word that all the kids use now? >> meh. >> what's that? >> it's just like, that's less than -- >> everybody that works for nicole miller is female first of all. 125 people at the headquaters, all female. they're all his age. they all use language that i don't understand. >> well is it good, bad or -- >> meh. >> ugly, average -- because even nordstrom or macy's, it's very scary. >> if that's your benchmark, you have a problem, okay? so why should that be the benchmark? our business is kind of divided between the people that have trade, little boutiques and the big stores that have traffic. it's tough fur your audience

stock market to think the little store isn't listed but what do they do? little becky from ohio that has a little boutique comes to new york and buys merchandise for jane, alice, sarah and sue. that's four pieces. four pieces get shipped to ohio. she gets on the phone and calls them to come on in and i have got it. that's called 100% sell out. >> with but the boutique business is live and kicking? >> is it taking away from the department store? >> ask them. they seem to not be doing well. boutiques are paying their bills in full. coming back for more. we hay couple of events in the last couple of weeks. who thinks about the cayman islands retail anything? what happened to the cayman islands? nicole went down and did a personal appearance for 100

women in hedge funds. >> i have done appearances for them too. >> oh, you have. >> yeah. >> you're the second person i know. so anyhow so we go down and do this thing for this organization called 100 women in hedge funds. i found out about it. we didn't do lite of publicity. we did $100,000 in a couple of hours. that may not be on your chart here. that may not be a lot of business but for a little boutique, 100 grand in two hours is incredible and here's the thing, now we have a bigger fan base with 100 women in hedge funds, they're coming back to buy this up again. it all fit them. they loved it. that's what is known as building a business brick on brick on brick. instead of trying to hit a home one with 20 million people, it doesn't happen. >> what percentage of your business is boutiques. >> 30%. >> so that's huge? >> yeah. >> but you didn't get -- i

didn't get the second part of the idea. trade boutiques, whatever. so what's the other part? the other part is traffic, okay. what's the problem with business today? everybody is concentrating on traffic. do you know what the face of traffic is? it's anonymous. nobody knows what traffic is. they're concentrating on traffic and now when you go for design for traffic instead of trade you don't have sue and alice and betty in mine, you have traffic in mind. >> glad you ask that question. that gives me a chance to say what it is. i can always count on you. so traffic is this anonymous customer and they design and buy to the anonymous customer. so the stuff becomes really unexciting at the big box retailers because to buy for affic your benchmark is what was good last year. what works? what do we have history on? what do we have any kind of

track record? well here, this silhouette here sells well so let's buy that again and they have so much traffic that they work for a little bit of the traffic. if you try that in trade, the woman, sue, betty and alice say i already bought that. i bought that last year. what are you showing it to me again for. that's the difference. so the stores that cater to traffic have become boring and boring is not exciting and so when it's not exciting and it's boring they see the sales fall and they blame the weather. >> thank you. >> thank you. >> that's it? >> always exciting. never boring. >> thank you very much. >> thank you. >> coming up when we return, i don't know if this is going to be exciting or boring but hopefully we'll keep it exciting. oil prices trading low bermuda despite talk of geo political risk. reasons why with when squawk box returns in a moment.

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welcome back, everybody. crude oil down 10% this month and hearing reports that gasoline prices could be $1.50 gallon soon, despite the terrorist fears around the world. joining us now, clear view energy department managing director, kevin, what we saw in the past with a terrorist attack and retribution with bombs dropping in the middle east, that used to spike prices.

why has there been more reluctance this time around? >> good morning, becky. has to do with how much oil is sloshing around in the world right now. inventories are part of the story, there's 3 billion barrels of oil and petroleum product, that's global demand, two more days than the five year average. that's a big cushion. the supply system is hot, always does, oil is a tightly strung animal, it's 60% going to consumption. that's pretty slack relative to november norms, so it takes a big supply risk to get the market's attention to the upside. i suggest actually the geopolitical risk right now is probably down. >> because? >> if you scare people into not traveling this holiday season, you make a dent in jet and diesel fuel demand.

just hit that a little bit, 5% off expectations, 190,000 barrels a day surplus lying on top of full inventories. >> what's the demand picture? supply, we have a lot of it, and demand picture is a huge concern, too, looking at demand in china, europe, and how do you quantify that? >> well, the problem is that demand is linked to gdp growth in most of the growth areas for demand globally. 1 million of global demand in the nonoced is predominantly linked to price. there's not enough cars, roads, and people to use those cars and roads linked up with the cars and roads to make that demand happen like it is in the u.s. as a result, you really need organic gdp growth to drive demand, and that's a bigger story an energy itself. we'll wait and see and hope for it. >> we mentioned the idea that gasoline prices could be $1.50 a gallon. are you in that camp that that's

the case? >> depends on restarts of refineries off in the u.s. a couple turned back on in the midwest and brought prices down an awful lot. look at resumptions in refineries off in california, that could bring the average down. on a fundamental basis, november-december that's when refineries are busy destocking to avoid tax obligations. as a result, oil prices soften now here in the u.s., so it's a possibility, although, probably not for an enduring basis. >> kevin. thank you for joining us. >> thank you for having me. coming up, this top stories and quarterly results from walmart. as we break, check out the futures. another nice session so far, 75 points. stay tuned, "squawk box" will be right back. it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions

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breaking overnight, russia confirming a bomb did, indeed, bring down its passenger plane in egypt killing 224 people. now the kremlin vowing to track down those responsible. france launching new air strikes on isis targets in syria overnight as the president tells parliament france is at war. a live update from paris straight ahead. here at home, governors from half the states in the union speaking out saying it's time to close the borders to refugees from syria. president obama says the u.s. needs to do its part in the crisis, and governor rick scott says why the migrants are not welcome in florida. the second hour of "squawk box" begins right now. live from the beating heart

of business, new york city, this is "squawk box." welcome back to squaux here on cnbc, first in business worldwide. i'm joe with becky and andrew, and developing overnight, kremlin confirmed it was a home made bomb that ripped apart a russian passenger plane, killing all 224 people on board. russian officials promised to hunt those responsible down, intensifying air strikes on islamist militants in syria, and they've offered a $50 million reward for information on the bomber or bombers. that'll get anyone's attention, obviously. meantime, france launching some new air strikes on isis targets in syria, and french president told parliament that in his

words france is at war. michelle caruso-cabrera is in paris with more, and good morning again, michelle. >> reporter: good morning, joe, so it's four days after attacks, and every day that goes by, we learn more and more about whom the police did this attack. we built a graphics based on areas sieged by the terrorists to show you what we know at this point. at the stadium, two out of the three allege attackers have been identified at, at the theater, two of three identified, at the one restaurant, one attacker identified. his brother is on the run. we don't know if he was on scene, but rented a car found abandon near the attacks. all ie dentifications found near an examination of dna of body parts and passports. here's what we know about them as a group. most in the 20s, one is 31. three visited syria, three connected to terrorist activity

in the past, all but one are known to be french, some living in belgium. one in question is one of the stadium attackers. ahmad, a syria passport connected to him, however, the passport is fake. there's a big market for syria passport because if you are a migrant with a syria migrant, you get easier entry into europe. there's a market for that. that traveled the path into europe. they just don't know if the man who died is the man on that passpo passport. that's why there's a question, but that syria passport is why there's an outcry when it comes to whether or not there should be more immigrants allowed in western europe at this point. two arrests in belgium. police say the two people arrested were not here friday night, but they believe they were connected to the attacks. let's see if those airs reveal anymore information about what happened here over the weekend. guys, back to you. >> michelle, i saw, you know,

certain things about the constitution in france, and i was looking -- talking about a patriot act of some kind, whether there's a movement to that or talk about that in paris and gemirmany, and it has more do with defense because they can't because of e.u. rules, and sort of the edges of increasing surveillance. do you think that that's possible, even in a very liberal in terms of, you know, privacy, do you think that's possible in a place like france? >> reporter: so already what the president proposed yesterday at this historic speech in versailles is controversial. asking beyond what you talked about that, asking for c concentrated power for his ability to declare war taking action saying the legal frame work of the country right now is

geared towards an older time when you were worried about internal insurrection. think back to the french revolution, that kind of thing, and so it's going to be incredibly tough, though, the spirit of the question, joe, it's going to be incredibly tough because there is this notion of privacy. just how far do you go in curbing freedom in order to protect individuals in the name of security? we have that discussion in the united states, and they will have it here, and it's going to be resippous and angry. >> amazing to watch, michelle. >> reporter: interesting to see a leftist and socialist president move further right where the right was demanding this for a while. >> this is a 75% tax rate guy. on the wealthy. right? >> reporter: you know, there's a lot to talk about. we could have a very long

conversation about just how much the problems of france have to do with the economic structure of the economy, which many of us would believe is a failure when so much government spending is so much a part equation of the economy. >> i mean, and i understand what the president is dealing with. just the mind boggling carnage we're talking about, but watching someone in full leadership mode take really concrete decisive action, and this is a, you know, the president of france. it's kind of -- i don't know, for me, it's gratifying. i'm not going to make any comparisons, but it's coming from somewhere at least. >> reporter: yeah. i mean, so yesterday i listened to obama, president obama in my right ear because the presidents were speaking tachl ining at th and the man in the left ear was

more hawkish than the man in the right. night and day. do you remember the red line in syria and if assad crosses it, there was -- >> we don't want to shoot first and aim later was the quote yesterday. we don't want to rush into anything. you know, we want to make sure we're -- when was that? four years ago? >> i don't think it was that long ago. >> whatever. >> four years the situation's been happening. maybe two years ago. >> seems like four. all right. thank you, michelle. we'll be back in touch. talk some more. >> let's get to walmart. the company out with earnings. came out with earnings of $1.03 a share, including about 4 cents they benefitted from an adjustment for certain leases, and without that, talking 99 cents better than the street expected, looking for 98 cents a share. in line with expectations 117.4,

versus the 118 billion the street expected. they talked about same store sales, strips out fuel, it was 1.h 1.4%. they looked for 1.2% including gasoline. t it's not apples to apples comparison. now nay are looking for $1.45. the street's looking for $1.42, and that's j the stock is higher this morning, up 3%, a gain of 1.83, and remember the troubles the stock ran into recently. we'll watch that. they do not make comments about potential sales for the year, but, obviously, we'll hear about it on the conference call, but the dow component is up by 3%. >> okay. the issue of cyber security, obviously, front and center for boards and directors, especially in the light of the recent terrorist attacks in france. our guest host for two hours is maggie, the executive chairman of frontier communications, and

welcome, good morning. >> thank you. great to be here again. >> we are trying to make sense of what happened in paris as well as implications specifically on cyber security because there was the debate of a post edward snowden world, civil liberties matched with surveillance, telephone companies with back doors to the government, and those are closing, and companies like apples and googles encrypting everything, and the government said no, no, don't encrypt everything. that makes our job tougherment seems like the companies won the game in terms of on the encryption side. does that change as a result of what happened? >> i think when you think about this attack, i think about cyber security in two ways. one is the issue of privacy versus transparency in order to keep us safe, and them the other issue is how the terrorists are using the cyber world in order to coordinate what they do and how they do it, and how much harder it is to actually find

those needles in a hay stack today with social media. i think on the point that you made, we do have to look at that balance. it is something that has to be done. there is a bill that has now just been passed in the house and the senate that's an information sharing bill. >> right. >> and it tryinies to balance o industries to share data with each other and with the government and also protect privacy and civil liberties at the same time and have that balance. it's a good first step, but i think this will bring more rhetoric to the table, more discussion because i don't think that companies can just close their doors, and i don't think that we can also just open it fully. >> there's companies like cisco, hp, a lot of hardware company doing business not just in the united states, but europe, asia, and elsewhere. >> correct. >> those countries said we can't do business with you if you have

a back door to the u.s. government. >> i don't call it a back door. there is a process the government has to go through in order to request information. and then we go through a process of giving precise information and not full disclosure on customers so i think there are checks and balances in place for a long time on the phone side we've been doing. >> not just the phone, but texting, the internet, and the head of the ik says things swung in the opposite direction. do you agree? >> i don't think they have from a day-to-day practice, but i think they have in the public opinion area. i do think that that dialogue has to get out there and there has to be discussion. we are a global player, not just a player focused on the united states, and you do have to do business with other countries. >> when you think about cyber security, though, are you talking just about this surveillance issue? are you worried, actually rs about cyber terrorism and what that can ultimately do to a business? >> i'm very worried about the

cyber terrorism issue because i think that we have infrastructure in our country that's not 100% protected, and i'm not sure we can make it 100% protected, but, you know, we have to have coordinated efforts in order to get as far as we can. you know, when you have liabilities of being able to share information within your industry because of antitrust issues, you've got to get those things out of the way because if my network's attacked like it is every single day like verizon, at&t, and comcast, we want to talk to each other. >> you can't? >> not today. >> calling at&t, this is what happened to us, you should know about this, and this the fix we found. that's considered anticompetitive? >> we walk a fine line in having those conversations because it's about our networks. it's like giving information out and back about the networks where they could have access to certain information. so you want to just have it be very clear what you can or can't do.

>> the government helpful in this situation or not? they talk a lot of talk about how they really trying to make industries work together. have they been helpful or a hindrance? >> there's been a lot of positive rhetoric, and i think this first bill now in conference between the senate and the house is the first step in opening up the liability. >> you say rhetoric, i think that means nothing is getting done. >> until it's passed, it's status quo, things move fast in the cyber world. we have work to do. >> can i ask a separate ip question? >> sure. >> one of the things going on recently when u.s. companies go to try to do business in places like china, companies like ibm who decided the only way they -- i don't know that they decided, but told only way to do this is if they share their source code and other types of information with the government they say they do it because they trust, we trust the chinese, trust them

as a partner. should they be? do you think they are forced into this very terrible position? >> well, i think there are certain rules of engagement in china that unless you play by the rules, you're not going to have engagement. i think jenni is weighing the pros and cons of her providing that information. what's the exposure to the company and the down side? i think every company has to make chose choices. i think other companies made different choices either not to participate in china or in a limited way because of the oversight of that government. >> right. >> but as china continues to grow and be more of global play e they have to open up as well because you're going to have companies that will not participate and help them grow faster and better. >> right. >> so i know for our company and kpo companies i'm on the board of, when people travel to china, it's a different set of technology you bring in order to -- >> because of hacking? >> absolutely, hacked and also bring that information back to

our own companies. >> you'll be here the rest of the show. >> did we mention it's 59.27? >> yeah. >> actually, that's traded higher since last talked about it. it was 3% before. i don't know what that translates into. >> you probably helped that increase. >> by reporting their numbers. >> and reporting it against the street. they actually did well. >> they did. >> better than expected. >> worse than expectations, exactly. >> when we come back this morning, it's been a rough year for steel prices with the decline of more than 35% year to date. u.s. steel ceo mario longhi talking challenges facing the industry, and backlash from governments over settling refugees. governor rick scot wants to prevent them from coming to florida. he'll explain. reaction to walmart's numbers, quarterly results, it is up by about 2.7% now. stick around, "squawk box" will be right back.

tough steel industry due to cheap import and continued weakness, and market share of imported steel is expected to rise further driven by chinese steel imports in the strong u.s. dollar. joining us now is mario longhi,

ceo, thank you for joining us, good to see you. >> good to see you again. thank you for having me. >> most recently, i see things coming from china that they continue to churn out the steel, but it's totally, like, a central planning mistake because they should be closing down over capacity. they should be firing workers, but they can't. this seems like it's not good for you. it's not good for the united states' steel manufacturers, but it's not good for them. >> you're right, joe. if you look back in the early 2000s, china probably had 50 million tons of over capacity. they sit today on 400 million tons of over capacity when the full capacity in the united states is 100 million tons. e imports in the last couple years doubled from the low 20s to 40% while gdp grew 2%, and there is a direct correlation with gdp

growth as far as consumption, so i think it's really not good for china that they are not addressing it. they really look more at employment and stability and social environment. they don't have the market rules that guide their way in which business is done over here. it's not good for them or us either because, you know, a lot of jobs are being lost, capacity reduced. it's a very difficult moment right now. >> so what can the u.s. do on the trade side, ma rrrio, with regard to the trade subject? >> the essential thing is they understand what the rule of law is. if it's a base rule, everybody plays by it, we don't have a problem. the problem is that they don't lock at things the way, for example, china has 40 different types of subsidies, they are a state owned enterprise, making it almost impossible for companies that are playing by the market rules to compete with them. i think that the primary thing. i think under tpa, we spent a lot of time with the

administration in congress revisiting the definition of injury. they used to look at, for example, if you have $1 profit, what's the problem? well, the problem is you need to invest billions of dollars every single year to improve your capability and you should not make enough profit to do that. you will lose your competitiveness, and when you compete against state owned enterprises subsidizing all investments over a decade, you begin to have a serious issue. >> seems to ming like, that's not a likely situation, that they are going to come around and recognize market rules. what you are asking for is blocking that from coming into the country? zblef to do that. in the process of a valuating a trade case, you bring to the surface distortions created in the market place, and inthat's the real goal of everything. we have currently three major cases that are going and are looking for duties and antidumping duties, to think the first ruling on china, on the first case, the primary finds tells us that they have a 238%

margin that needs to be imposed on them. you look at the size of the problem that they are creating. >> and you also look at some of the slow down that's taking place over in that country, which you can put more pressure on that. >> exactly. >> that behavior. how does steel pivot? what are the things you work on for your company over the next several years in light of this environment that you got to do business in? >> we have two clear moments to address. right now, is we need to figure out a way to get through this significant head winds we're facing, yet we're working earnestly on it. if you look at improvements of this organization put in place in the best year and a half, it's nothing short of remarkable. but it's not been enough. we were beginning to higher people in october last year, revisited the plan in november, again in december, and again in january we'll do more. we're dealing with it. then there is a future. the manufacturing world is going

through a wonderful renaissance. there is a lot going on, and i think our company has been engaging profoundly with our customers to really understand the transformations that they are going to be seeing, so that we can be there to support them. robotics, megadata, all of things play a significant role. we tripled the amount of research and development in the last year. there's a lot of innovation. >> lower energy prices helping too? >> it helps. we adopted operations to benefit from gas. they are all very well structured, and by probably the next five years, all of this steel that our customers are going to be used are going to be new steel that replace the old ones. there is a lot of excitement. you just need to figure out how to wade through the difficult moment. >> yeah. we're also looking at maybe new polls in all of our markets that can be steel versus woods. with storms it makes a difference. >> big time difference. >> well, it's not fair that china has this noneconomic,

nonmarket based approach and drag you down with them. reminds me of mci. how do they do it? it was fraud. everybody else had to compete with it. not fair. >> it's not fair. i think we need to pay a lot of attention because china is aspiring to be named or be elevated to a market economy come december 16th, and i don't think we've seen behavior that allows for them to be there. you have to earn the right. >> just one example. thank you. >> thank you. >> appreciate it. coming up, a setback for fan dual and draft kings. details when we return. the future belongs to the fast.

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welcome back to "squawk box" this morning. setback for draft kings and fan dual. site's wanted courts orders to shut them down within the state, and new york judge denied the request, and conjunction is heard in state trial court on november 25th. high profile lawyer, david boise is leading the case, and he'll join us live on "squawk box" tomorrow, you're not going to want to miss that. coming up, the obama

administration getting backlash from state governors over accepting syria refugees, and florida governor, rick scott, is urging congress to intervene. the governor joining us when we return. before we take a break, take a quick look at u.s. equity futures in the green with the dow set to up 67 points higher. back in a moment. u can create wh through capital appreciation, and this has been denied to many south africans for generations. this is an opportunity to right that wrong. the idea was to bring capital into the affordable housing space in south africa, with a fund that offers families of modest income safe and good accommodation. citi got involved very early on and showed an enormous commitment. and that gave other investors confidence. citi's really unique, because they bring deep understanding of what's happening in africa. i really believe we only live once,

and so you need to take an idea that you have and go for it. you have the opportunity to say, "i've been part of the creation of over 27,000 units of housing," and to replicate this across the entire african continent.

welcome back, among the stories front and center this morning, home depot posted better than expected revenue, and offering upbeat full year guidance. shares of the company, dow component, trading up 3.25%. there's a lot of whale watching on wall street today as powerful investors reveal their latest moves in sec filings. george soros exiting the nearly two yearlong bet on herbalife,

selling 2 million shares in the third quarter, stock's up 2.5%. on today's economic calendar. later in the morning, industrial production and gnarl association of moment builders' latest index on builder sentiment. a number of u.s. governors step up to say no to accepting syria refugees into the states, and we have more on that story. >> good morning, a political rift opening three days after attacks in paris in which one man was possibly linked to r refugee status from syria. look at the map showing 26 states where governors oppose, refu refusing, or suspending settlement of refugees in the united states, 26 governors all told, 25 republican, one a democrat. that is a big political rift because the obama administration has said it supports resettling

syria refugees inside the united states since 2012, just over 2100 resettled in the country according to the processing center and the state department. yesterday, prauchl speaking in turkey put this in the terms of america's moral duty to the world. here's what he had to say. >> we also to have remember many refugees are the victims of terrorism themselves, that's what they flee, slamming the door in the faces is a betrayal of our values. our nations can welcome refugees desperately seeking safety and ensure our own security. we can and must do both. >> guys, we also saw a number of 2016 presidential candidates out on the trail yesterday opposing the marco rubio saying, look, if you admit 10,000 in the country and t

9,000 are good people, it only takes one to be a committed terrorist to cause a problem inside the united states. this is an issue politically with legs because it dove tails with the immigration issue dr e driving a lot of republican politics this year and rise of donald trump to the top of national polls. don't look for this issue to go away soon, guys. >> okay, eamon, thank you for the report. one of the latest governors to express concern is of florida, he is here to tell us why fears hands are tied in preventing relocation of 425 syria migrants to his state. he's joining us from tallahas e tallahassee. the way i understand it, governor, because it's federally funded, you can't say no because of federal funding, so you've written a letter to leaders in congress and house and senate? >> absolutely. first off, hearts go out to the 129 families impacted by the murders in paris and all of the individuals that were injured.

my daughter's father-in-law and family all live in paris, and we were scared to death what happened to them. the president's got to stop. he's got to stop and think. we don't have enough information. we do know that one of the terrorists posed as a syria refugee. slow down. get all the information. then make a decision. we don't have the right to decide this on our own. the federal government makes the decision whether to allow these in our state 425 refugees into our state. i sent a letter to the majority leader mcconnell, speaker ryan, saying don't allow funds to be used to relocate syria refugees to florida. slow down. take our time. let's find out what happened in paris. find out how good our security is. let's find out vetting before we rush into allowing 10,000 more syrians into our country. i'm responsible for the safety of the 20-plus million people that live in our state. i don't want one terrorist in

our state. >> but, you know, governor, in times like these, obviously, emotions run high, and there's been times in our history where well intentioned people, even the progressive icon fdr played with entournament camps. in times, there's a lot of things in the country, a lot of freedoms we have and things that are part of our values that can have a downside, and we accept a lot of these things because of what our values are in the united states. you're talking about 425. there's no way that you can look at 425 people to decide whether the likelihood of one being a terrorist is likely? >> well, first off, the federal government's not -- they don't tell me what they are doing. they -- they are not -- they have not been a good partner for

me or tell me when they are going to do something. they are not, you know, they are not telling me the vetting process, but remember, florida is a great immigration state. we have over 250 languages spoken in the state. we love immigrants, but we've watched 129 people murdered in paris 300 people injured. let's take our time, make sure we know what happened. we know one of the terrorists poses as a syrian refugee. let's take oiur time to make a good decision. the president is not focused on defeating isis, just ask congress to slow down, don't fund this until we have better information. >> have you received a response? >> no, not yet. just got the letter out to them yesterday. i look forward to hearing from them. i know senator sessions made the decision he's going to work on making sure that there's no federal funds used to relocate

syria refugees to the country. i'm responsible for the safety of 20-plus million people. we love immigration. we love -- we have so many immigrants in our state, so many languages spoken, but we don't want one terrorist in our state. >> right. >> slow down. >> governor, i know you say slow down, but what is a satisfactory response? i mean, what would you need to hear in terms of the vetting process, in terms of how it would all work to your satisfaction to which you'd say, okay, we can take in refugees? >> the first thing i want food is find out what happened in paris. why did the security not work? do we have the security mechanisms to decide, figure out, are we doing the right thing in the country. second, how are you vetting these? all right? the federal government does not tell us these things. they have not. a good partner. do both those things. figure out what happened in paris. let's make sure all americans understand the vetting process so we don't allow one terrorist to come into our country. i don't want terrorism in the state, and i'm sure no governor

wants terrorism in the state. at the same time, we love immigration. >> hey, governor, what are you hearing from your constituents? have you heard anything from people that live in florida on this issue? >> absolutely. they -- i've gotten a lot of phone calls from people that are saying nay are concerned about safety. they are concerned about, you know, the -- what happened -- first off, a lot are concerned about the families that have been impacted. we all traveled, so many of us traveled to paris, my daughter has krelatives there, scared to death what happened to them, hearts out to them, but next thing you think about is what about my family? are we safe? what is our government doing? first off, the president's got to get focused on destroying isis. we have to. it's the most important thing now. his job as commander in chief, destroy isis. i mean -- remember, they beheaded one of our citizens from miami, and we're not destroying isis right now. we need to do it.

>> governor, there's people, christians that are being persecuted and at risk. is the president actually rightfully noted that are trying to escape the terrorism you're talking about. this is, you know, someone else's problem. it's not a nuclear site in your backyard, not in florida. someone else has to do it. what do you suggest the people go in the mieantime? >> first off, sure, first off, think about your own family. first responsibility is your own family, right? >> i understand that. >> in my case, the 20 million people that live in my state. this is the person's responsibility, one, destroy isis, two, show us what he's doing to vet these syrian ref e refuge refugees. we love immigration in our state. tell us what's going on. they have not been a good partner of telling us what they are doing. this is something that is completely under their control. i have no ability to stop this

on my open. it's funded by the federal government. >> okay. >> governor, can we ask about the economy while we have you here? what are you seeing in florida right now? >> doing really well. by the way, maggie, thank you for the jobs in florida. move more here. >> i know. we just put more in florida, so, governor, we'll continue to put more people in your state. >> good, thank you. we've added 941,000 jobs in four years and nine months, 21,000 jobs a month. tourism at record levels. construction's doing really well. we had so many manufacturing companies move here. aerospace and aviation industry is doing really well. for example of my revenues, i cut taxes 50 times in five sessions, our revenue's this year are up 1.3 billion and i have more revenues than recuring expenses. 250,000 plus people moving here this year. we're bigger than new york.

move your show down here. everybody's moving to florida. we're doing really well, but we -- i would like a president that would generate 12 million jobs in four years. we need a better national economy, a federal government that's going to balance the budget. i had to do it. i walked in with a budget deficit, reduce regulation, all those things. >> i don't know if we move down there. >> move to florida. it's -- >> two miles in where the ocean's going to be in a couple years, is that land for sale yet, like, the new coast that's coming? >> joe, everybody's moving here. move here. >> go for the winter, right? >> i hope they know how to swim. anyway, thank you, governor. >> appreciate it. have a good day. when we return, walmart just out with quarterly results. breaking down the numbers with an analyst next. plus, why shares of dick's sporting goods are crushed. "squawk box" returns in a moment.

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dick's sports goods trading lower, do14% now, and light of

what wall street expected, more retail turmoil we've been watching over the last month or so. walmart out with its third quarter results, earnings of 99 cents a share on adjusted basis, a penny better than expected. revenue came in nearly will line in analysts' estimates. stock jumps off the results. joining us to break down the numbers is the managing director and retail analyst, and, robert, the numbers were not up to boost the stock this morning, trading up $59, around $59.40. what do you think of what you heard? >> one of the big keys on wall market coming in, expectations for the company were low. you know, given the meeting held last month and lowering the forward, you know, updated guidance and the investments they are making in payroll, and e-commerce, expectations were really low for walmart coming in. you look at the dividend for this stock, you know, the time horizon that this company operates under, you know, we

thought it was a pretty good setup, and we still like the stock from where we are today. >> talking about the current quarter, and they said 1.40-1.55, and they are 1.42. where do you fall? >> 1.44. i think one of the big things, you know, we talked about it last week is walmart inventories down 1.5%, so, you know, they are really managing the business well in the environment. you got, you know, positive same store sales, lower inventory, gross mar gyps better than anticipated, but there was significant deleverage as they continue to invest in the labor and payroll piece of the equation. >> maggie sits on the board of costco, talking earlier about how it's a different customer who's shopping at costco versus walma walmart. how do you describe the customers? >> we have a buy on costkrorco, that's a fabulous company. >> thank you very much, smart move. >> the costco customer is $100,000 income customer, and

one of the things that costco continued to do is drive positive traffic, you know, over the last 12 months, roughly 4%, last month was an anomaly, and they had the membership fee stream, you know, generate a lot of earnings from that perspective, a loft growth, square footage growth, you know, under penetrated, a global story, great balance sheet. a fabulous company. >> with some pretty amazing turn of inventory bringing in fresh new products all the time, even for the holiday seasons they do a great job there too. >> already set in costco this weekend, set for holiday, the trees out, gifts out, and as my kids pointed out, toys are already out, and, you know, costco's fabulous. >> you saw the chart which is, i don't know if you saw it, but it's a terrible chart for walma walmart, but if you had a million dollars in walmart or costco, what would you do?

given the price differential? >> time horizon? >> two years. >> oh, you know, i think there's more upside today over two year period in pal mart shares begin the depressed multiple and expectations for the business. but, you know, our target for costco is 175, and we think when we look over the next 12-18 months, i think there's several catalysts for costco. i think that, you know, when you look at the credit card situation with the american express, you know, could be depressing the results a little bit right now, but as they get the new visa relationship going, i think that will be good. they could reinvest some of the, you know, better economics we expect them to get from that deal in some price, drive the comps at costco, and thinking about it, once every five years, costco typically, you know, increases the membership fees so that's coming up. that's always very good for the stock. i think there's a positive outlook for both these guys. costco with a solid e-commerce

business, and walmart investing heavily in theirs as well. >> macy's ceo said they are offering steep discounts because of the inventories to get rid of. does that put pressure on discounters? >> a lot is branded goods they sell, ralph lauren, tommy hilfiger, that's why people go to macy's and good private brands, but discounters, electronics are going to be a big seller. the star wars toys, you know, all over the place, including costco and walmart, and, you know, i think there's a lot of solid drivers to this year, like, with all the concerns around retail in general, i think, you know, it's really good to see walmart's inventories lien going in. if there was a heavy position, that could make more aggressive competition, more margin pressure. overall, we'll take today's results. >> robert, thank you.

>> do you try to do -- >> blurred. >> bold. >> blurred. >> there is -- i don't think there's not one. is there? >> tell our obsession. >> i see it, looking for a word. there's nothing. ? can i buy a vowel? >> no. >> look. i think we have my last name. >> there's a lot of words in that. >> coolest name. that guy that comes on. >> okay. >> when we come back, we'll do jumbles during the break, but we have more from our guest host with a lot of things that could come from that. executive chairman of frontier communications, and tomorrow, womaning back, and he's going to join us in the 7:00 hour. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about.

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there's a lot of talk of getting diversity on boards and in particular, getting women on boards, and frontier communications is a company honored of a champion for the board, diversity, the executive chairman of frontier, she's our guest host today, a market forces, a market forces person overall. how do we affect this without quotas or something that isn't happening naturally? how do you make it happen

quickly? >> i don't agree, quotas are not the right answer, but i think companies that have more women on their boards are posting great results, and at the end of the day, it's creating shareholder value and having a diverse board represent your customers and shareholders, and we've done that at frontier, five women on the board in 2014, our total shareholder return was over 80%, the board i'm on, there's a number of women on other boards i sit on, and i make sure that when i go on the board is the first time as a woman, no other women, i get other women to get on that board as well. >> is the representation for that board -- is that going up more quickly than ceos and senior managers? >> i think that we've held our own in the board room, but we need to grow more, and if i look at at least the fortune 1,000, over the next five years, if you looked at people that will turn off because of age or term limits on those boards, if every

other board member that gets apointed as a woman will raise the bar to 25-30% on boards. there are easier ways to do it than quotas or dictating to companies what they have to do. you want to get qualified people, but there's a ton of qualified women that are board ready today. >> do you think that the goal for society will eventually be 50/50. >> well, i hope the goal should be -- >>? all respects? >> i'm going for 60/40. >> thank you, andrew, you took the words from my mouth. >> all companies would be better results wise. saying it, leaving it at that, right, andrew? >> keep it there. >> perfect. >> maggie will be here the rest of the show. >> nice to be here. >> good to have you here. >> when we come back -- >> actually, it's nice. >> a read on the economy from blackstone, the company's coo, tony james, and portfolio operations joining us next.

isis threatening to attack washington, d.c. russia confirming a bomb took down a jet liner, and france hunting down suspects

responsible for trid friday eats deadly attacks, latest on the war on terror from france and here at home straight ahead. >> rally on the street, two private equity power players here to say how they are investing, and a world focused on terrorism. black stoep's head of private equity, david calhoun and tony james here with a unique market view. >> consumer front and center, results from walmart, home depot, and dick's sporting goods this morning, and breaking data on inflation, minutes away. the final hour of "squawk box" begins right now. >> live from the most powerful city in the world, new york, this is "squawk box." >> former neilson guy. got a bone to pick. welcome back. you never measured us effectively. you admitted it.

you never measured us effectively, "squawk box" squarks, nevnever, ever. >> you were not the center point of our metric. >> i'm joe, with becky and andrew, less than the o minutes from the opening bell on wall street, and futures now, they moderated, pulled back, 75 earlier, but a great day yesterday, up another 56, 357 a day on the dow, up five on the s&p, 15 on the nasdaq. checking out markets in europe, a strong session, almost 2% gains across the board, even in greece, andrew? >> let's get you up to speed on the stories investors are talking about today. home depot posted better than expected earnings and revenue, offering guidance, shares trading higher on that news this morning. also, walmart with a boost this morning as well. earnings topped expectations and the retailer offering upbeat profit outlook, and one stock loser this morning, here it is, dick's sporting goods, earnings missing the margs, same store sales falling short of estimates, and also guidance was

weak. becky? >> stocks on the move to tell you about this morning, first up, general electric, the company says it's completed its exchange offer, and ge says the offer was over subscribed by more than three times. this completes ge's exit from ownership. that stock looks to be up 1% today. angie's list taking over a proposal from inc interactive. the website operator says the bid of $8.75 a share undervalues the company trading down. >> and it might not seem like it's new news, but up to this point, you didn't have the explosive residue, and now breaking overnight, russia confirmed for the first time it was a home made bomb that ripped apart that airliner in egypt last month, killing all 224 people on board, officials in russia promise to hunt down those responsible, also, to intensify air strikes on

islamist militants. i can say that. they offered a $50 million reward for information on the bombers, the bomber or bombers, $50 million. >> wow. >> also major controversy in the wake of the paris attacks, a growing number of u.s. governors declaring they are not accepting syria refugees, more than half the nation state's leaders opposed to letting syria state refugees into their state, but the final decision's falls on the federal government. one of the suspects believed to be believed in friday's attack suspected to enter europe among a wave of refugees, an rick scott expressing his thoughts earlier here on "squawk box." >> i'm responsible for the safety of the 20-plus million people that live in our state. i want -- i don't want one terrorist in our state. >> 27 governors now come out in favor of refusing to take ref e

refugees in their state. >> john brennan says isis has more plans for more attacks already in the pipeline. meanwhi meanwhile, france is committed to destroying the islamic state, and launched a new round of air strikes. let's get back one more time to get the latest from michelle caruso-cabrera. she's in paris. michelle? >> reporter: we have late breaking headlines just in the last few moins, two to tell you about. first, in relation to the air strikes, dow jones reports the prime minister of the united king tom says there's a case to be made for the u.k. to join in the air strikes along with france, the united states, and russia as well as the islamic state in syria, the organization that's climb responsibility for friday's attacks here in the other headline to tell you about is that two people have been -- there are reports coming out of germany that three people have been arrested there. that's french television quoting german police. three people have been arrested. we don't know any more details

than that. that is in addition to the two that were taken into custody in belgium. the belgium police are come police sit and participated in the terrorist activities. they don't believe the individuals were in paris on friday night. which brings us to an update on the manhunt. they are looking for an alleged master mind abdelhamid abaaoud and also looking for sala salah abdeslam. his brother was one of the suicide bombers and, in fact, reporters were able to speak with another brother of his alive living in belgium late yesterday. his named is mohammed abdeslam. he was questioned but later released. i told journalists that he and his family did not know everything about his brother's activities. he was 31, the one who blew himself up at one of the cafes here. the 26-year-old salah is currently the subject of this huge manhunt. speaking in french mohammed, the

brother, told reporters, quote, we didn't know, neither us nor our family. they're big boys. they're adults. we don't ask them for their timetable whenever they leave the house. he added that he hadn't heard any news from salah and also he did not believe his brothers could have been involved in the attacks. so the hunt is still on. if police are correct that they're connected to friday's attacks, maybe we begin to get more clues or more information as to where he might be. guys, back to you. >> michelle, thank you. despite the tough environment out there for deals, blackstone is still putting money to work in key areas like energy and real estate. david calhoun is the global head at the blackstone and also a former ceo of neilson and tony james is president and coo. maggie willederwader is the chief executive at frontier communications. thank you for coming in today.

>> 24 years. 26 years. >> that's right. i remember every one of them, too. >> as you guys are talking stocks off camera here. >> yeah. >> tony, why don't you tell me a little bit about where you see the environment right now, what you think is happening and where the markets have come, where you think they're headed. >> well, i think the markets are pretty fully valued in here and while the economies are strong, i think there's some head winds and the values are a little ahead of themselves. we see a bit of a correction coming. >> a bit of a correction coming because of high valuations or because of what's happening in the broader world right now? >> well, you've definitely got the terrorists, you have higher interest rates coming, you have weaker china. certainly economic problems in south america. the cumulative effect of that is where do you look for good news that's not already reflected in the market? earnings of the s&p are flat at best. so i think -- i think stock prices have had a great run and it's time for a pause.

>> what's the firm doing as a result? are you pulling things in anywhere? >> well, we've exited a lot of investments where we can obviously and we're actually poised a lot of capital so correction's probably good for us. >> david, that sounds like a tough environment for pe. we've talked about how prices have run up and things you look like you can buy at reasonable prices. when the market starts getting jitters, it's time to ipo and exit some of these businesses. >> although in almost every case or i should say in every case we have an agenda that requires change, all the things that are going to improve the economics of a company, not the things that surround it necessarily, but of that company. i think the private governance model gives you advantage that we take full advantage of which is to put your head down, stay focused, invest good times, bad times. in some ways difficult moments for me are the best because that's the moment you can predict what your public

counterpart is going to do. you get to do it different, better, harder, faster, all those words. for me this model works but i'm company specific and i think about every investment that way. >> sounds like it's a better competitive time if you can outperform your peers. >> i've always felt that way. in nielsen life, all of the experiences i've had with our private companies, when the world gets tough and the economy gets tough, you can predict what the public company is going to do, what your counterpart is going to do. they're subjected to pressures that make the quarters even tougher. they put the straight jacket on and start lacing it up. for us we get to put our heads down and stay focused and invest through the cycle. >> i have an example on that. the ebida of our company is growing at 9% a year, s&p zero. >> for this year? >> for this year. >> but think about the two of you, we've looked at a lot of pe deals over the years and you can go in and actually undercut a

strategic because a stra deej beginning would take pressure from wall street if they wanted to do an acquisition and pay up. that's shifted. what blackstone has done with you, i look at it as ying and yang. you have investor and operator looking at deals and opportunity. how do you think about value creation together in the environment that we're in today? from an operator and inbe vestor point of view? >> well, for me it's a deal that's not underwritten well is a bad deal so the team that goes out and hunts and finds a company that we believe in and an agenda that we believe in, they've got to do it just right. they've got to protect the down side and they do a great job of that. i experience that. they bought a company at a peak in '06. i lived through '08, '09, '10, i knew what that was about. we never had a difficult moment with respect to satisfying the debt holders and others but at the same time i had all the resources necessary to plow through that and do the things that i believe were right for the company.

so it's -- if you didn't underwrite it right and got yourself in trouble, couldn't make a few debt payments, you were in trouble. >> were you talking about larson? >> i was. >> you didn't have money to invest in out of home for a niche player something that would measure trading floors, gems, country clubs, restaurants, bars that would give us a true representation of cnbc. >> it definitely didn't hit the prioritization grid. facebook, google, others did. >> as the ceo you did see the fragmented -- you watched it play out with entertainment in the home. >> totally. >> you had to figure out how to measure all of these different -- you probably have an idea or some comments on cord cutting and all the things in the future of the business. are we going to have jobs? >> all core content will have jobs. >> worth more? >> it should be. >> there will be some way to

measure it, some way to get paid for it? >> nielsen as we speak is launching a total audience metric that includes all video streaming through all locations. >> now you do it, now that we don't do nielsen. >> i'm going back to private equity. >> can i ask tony a question. >> i was going to ask tony so you can ask him. >> on size, how big a deal can you actually do in this environment? mid 2000 before we got to 2008 there were massive transactions taking place, txu. you've obviously done lots of big real estate transactions more recently, but there was this idea somehow that big megacap companies could be taken over by private equity, that there was actually more fat in those companies, that they were under managed businesses and there was more opportunity. that sort of thesis seems to have disappeared. i don't know if that's because you think it's harder to finance those types of transactions or that those companies, that opportunity doesn't exist in the same way? >> first of all, you can do big deals. look at bmc and dell. the deals can be huge.

and there's a lot of equity available if you team up with another sponsor. lps will write you billion dollar checks sometimes. you can get a lot of equity, you can do big deals. the problem is the public market. if you're going to live on taking public companies private and most big companies are public companies, it's very hard to get value. we've got to look else are with. we've got to build assets. we have to take small companies with big management teams and build them and reinvent the business and stuff like that. you can't do a big old buyout, take it private, cut a few costs and make any money. values are too high. >> what makes a great ceo, tony? you're very big on management teams, that they make a huge difference even with a business that might not be a home run. tell us about what you look for. >> well, of course i'm honored to be here with two of the best ceos i know in maggie and dave. i'm actually serious about that. >> that was a sophomore question. >> i think you've got to do -- you've got to focus on a few things and do them really,

really well and do it with a sense of urgency. you've got to have a vision about where you take the business. it can't be linear. this is one of the things that dave brought to us. you've got to be able to set a bar that people can aspire to and stretch for and make it. it's not something that can be measured. it's not something you can draw a line to. then the ceo has to attract a great team and it has to play together well. you do those things, you'll be having a successful investment. >> great. long-term view, what do you think? >> oh, yeah. have to have a long-term view. you know, you can debate what's long term. any time you get outside of three-quarters you're ahead of the public counterparts. three years, you can do pretty much in three years. invest, make the turn, do the things you have to do. >> i refer to it as the intermediate term. we're not bell labs. we don't want to invest in something that pays off in 20 years. i don't think any business can make a good return on that sort of investment nor do we have to worry about less than a year. that intermediate term, that's

one of private equity's biggest advantage. >> tony, what happens if the fed raises interest rates. does that change the scenario at all? are you worried about that? would you consider that in any way before you decide to make a deal? >> no. no. i think we're way overdue to have higher interest rates. the rates will be small, they'll be short term rates. low rates aren't really helping the economy in my opinion. i actually don't think zero rates have ever helped an economy. if anything, you can argue zero rates cause misallocation of resources and cause companies to substitute labor for capital and so we're overdue. i think the market wants the fed to get on with it. >> i have one other quick ones for you. your competitors, kkr, i assume you think of them as one of your competitors. they shifted to paying a fixed quarterly dividend as opposed to one that varies. >> right. >> what do you make of that decision? is that the right decision? puts them less in league with you and more in league with banks, frankly.

>> yeah. well, i think there's two considerations. whether it's the right decision or wrong decision time will tell. the market definitely puts more value on something that's predictable. ours varies all over the place depending on what we actually earn so it's predictable. on the other hands, the beauty of our model is we can grow very fast, 10 to 15% a year and pay out all of our cash flow. no other business in the world that i'm aware of can pay out a yield of 9 or 10% and still grow at double digits because we're an asset light model. they're not. they're a balance sheet based model. i like ours better. >> would you put him back in a ceo? would you want to go back to a more nitty-gritty, more -- >> i spend my life with coos and they're not quite the scale of the ceos of the ges, the ibms have, on the other hand, i love working with all of them. they're all great. >> you don't want to do that?

if the right -- >> i want to help them do what they do. >> what if a boeing or something -- >> what do you think of tech? is there a bubble? do we have a bubble going on? >> no. i think the opportunities in tech are still limitless as far as i can see believe it or not. the productivity that tech brings to all kinds of industries is enormous and we're in the early innings. >> good. >> congratulations getting out of nielsen before we -- that was a good exit. >> dave, tony, thank you both for coming in. of course, maggie will be with us through the rest of the program. when we come back, the united states stepping up its attacks on the islamic state and hitting their main source of money. we have details on this black market trade. they are next. take a look at the prices now. wti at 41.32. more to come in just a moment. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures...

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tens of millions of dollars are funneled to the militant group isis every month thanks to black market oil. now the united states is ramping up airstrikes against the

group's main source of money and jacquie deangeles has that story. >> reporter: hi, good morning, andrew. united states and french forces looking to choke isis's main source of funding, black market oil. in a more aggressive approach airstrikes are targeting the trucks used to transport that oil. previously it was on disabling production in the oil fields without completely destroying them, that infrastructure and avoiding civilian casualties. treasury department estimated earlier this year that isis made $40 million in one month from the sale of oil. if you do the math, that's roughly $500 million a year. now the group operates oil fields in northern iraq as you can see on the map that's going to come up in a moment. roughly 65% of the oil revenues come from that area. it's also believed that it has refining operations in syria. that's where it turns crude into products and then it sells that oil and gas on the black market likely at a discount. so how much oil are we talking about here? well, not much, but enough to

fund the operations. at $50 a barrel base case, 500 million in oil revenue equates to 27,000 barrels a day. for perspective consider how much iraq produces, 4 million barrels a day. in the wake of friday's attacks, of course, you can expect an even more aggressive approach in targeting the finances which are funding isis's operations. since no corporation can operate without cash, guys. >> jacquie, thank you very much. when we come back this morning, we have some breaking news on the inflation front, plus the ceo on the sweet taste of business success. up next though, walmart giving upbeat guidance on reports thabeet expectations. when stock is up in the free market. we have the details plus a few other names this morning. "squawk box" will be right back.

other stocks to watch this morning. walmart hosting better than expected earnings and offering upbeat guidance. shares are trading higher on the news. now up 1.22. i hope maggie never has to look

at her stock like that for frontier. stuff happens. look at that. >> i know. i know. >> that's a blue slope, right, andrew? not a bunny slope but it's not a black diamond, right? >> that's -- >> moguls, bumps right at the bottom. >> right at the bottom. you could actually go off -- >> sort of green. >> yeah, looks like a little jump. >> easy. urban outfitter shares getting hit. the apparel retailer sales falling short of investments. the stocks fell yesterday. i thought i was reading this wrong. it was purchasing an italian pizza chain. >> apparently they have restaurants already. not restaurants, coffee shops. >> yeah. >> so pizza place. all right. >> little different. >> yeah. that's okay. i love pizza. >> pizza and shopping. >> like popcorn and the movies. >> i don't know which one i love

more. actually, i do. >> when we return, breaking news on the inflationary front. soft drinks and pet food from ingredien. the move has paid off. it's outperformed the s&p 500 the past few years. the ceo will share her recipe for business success just ahead. as we move ahead, take a look at u.s. equity futures. the dow is up. the future belongs to the fast. and to help you accelerate, we've created a new company...

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welcome back to "squawk box." breaking news. october read on cpi up .2 as expected. strip off the all important food and energy up .2 as expected. and if we look at the year over year numbers, well, .2 year over year, strip out food and energy core year over year up 1.9. yes, 1.9. so these numbers are very close to expectations in pretty much every way. if we look at real average weekly earnings up 2.1%, there's a bit of a miss because last look was 2.2 revised to 2.3. so shed a few tenths there. our yields are hovering close to

2.29. european yields are moving closer and closer to 50 basis points. the difference between the two over 170 basis points, the widest since april. we continue to see that the equity markets responding to potential qe or more qe by mario draghi, but in the end there's definitely comparison in the marketplace, especially fixed income. as to the future outlook of the economies as well, we have a lot more data points today. we'll look at industrial production, later in the day, treasury international capital flows. considering china and japan, their economic issues and their holdings in u.s. treasuries, less than the fed. all important joe kernen back to you. >> all right. rick santelli, thank you. steve leaseman with more on the data and it better be good. >> can you imagine there being more? listen, i think it's fair to say inflation is relatively stable and that's important. the fed's been worried about inflation coming down. you have really inflation two

different stories. this is -- i'll show you from last month, this is exciting. this is exciting. >> this is it? >> this is the nut right here. this is the difference between service inflation and goods inflation or commodities inflation. >> okay. >> what you see is commodities inflation are sinking right there. >> yeah. services. >> look at services. how much are services a percentage of the economy? >> 2/3. >> 75%. >> 2/3. >> 75%. >> either way -- >> close enough. >> on or thereabouts. close enough for rock and roll as we like to say on "squawk box" here. the stories, it's been very stable. it's possible there's another downdraft coming but it feels like oil in that 40 to 45 range, you don't have a big down draft from there. looking at individual prices, apparel down .8 of a percent. new and used vehicles, a function of the changeover of year. down .2%. housing up 0.2.

services over all 2.4%. it's the stability there. the idea that there isn't another commodities down draft coming. it should work out. the one thing we want to watch relative to paris attacks, relative to fed policy and the december potential rate hike is the dollar. and what you've seen is you've seen something of a decline relative to the euro. you went through that 107. we're 106.5, something like that, just a little bit lower. it's another place to come down. if the doves wanted to seize on something and stop the december rate hike if you had another big down draft in the dollar and it created another down draft in imported prices. >> in the past have sovereigns really gone into the open market to support or to do the occurrence? >> it used to be more common in the new world it's become less and less. >> they would never do that? >> not never. not never.

they don't take it off the table. it's something they have done very reluctantly. to the extent that currencies are manipulated they're more likely to be manipulated through central bank policy. >> right. if they want to let the fed go up and get the plunge protection team involved. >> out of the s&ps into the currency. >> they can do it. when was the last time you heard the treasury secretary say something positive or negative about saying that? thank you. a strong dollar is in the u.s. interest and i want them to take them by the lapel and say something real even when they leave office. that would be a bad idea. they would swarm at that point. >> do you think the numbers that came out today reinforce the fed rate increase? >> yes, most definitely. you see the stability, you don't see the drag and you don't see that down draft i showed you in commodities really affecting the broader economy, which is services. it would be remiss not to talk about airline fares which are up 1.5%. >> thank you, sir. >> my pleasure. >> we'll do our review of the

movie after. >> right. we both saw "spotlight" so we're going over it. if you've ever wondered what makes crackers crunch, yogurt creamy and body lotions silky, our next guest heads a company that makes those ingredients. joining us is eileen gordon, chairman and president and ceo of ingredion and our guest host is maggie. we were talking during the commercial break, the ingredion name, do you love that name? do you hate that name? >> i actually love the name. >> you do? >> okay. >> our company -- >> and we're glad you do. >> thank you. >> we're glad you do. >> our company's name was corn products. it's a 100-year-old name. we bought a company five years ago called national starch. put the two companies together to take advantage of the consumer trends towards healthy eating and neither was a wonderful name to describe what we do. so ingredion became a name that

was available and we rebranded five years ago. >> corn starch too m. >> actually, consumers want to know what they're eating on the label. >> the centers and starches and actually providing healthy ingredients so what it means is we work with the food companies and the beverage and brewers. the recipe.

j it's called clean label. and then enstid of enzymes. consumers love that. >> things are very smooth. yogurt is creamy. >> they're creating shareholder value. you came into this company. it was old line. you transformed it. how did you go about doing that? >> i joined a company about 6 1/2 years ago. we made this major acquisition of national starch after about a year and so that was five years ago. by putting the two companies together we brought on a global business. national starch had a european business that corn products did not have. in fact, we had a wonderful r&d center established in bridgewater, new jersey. today we have 140 scientists.

then we have idea labs around the world, 24 of them. so we formulate the ingredients in new jersey and then we disseminate and localize the particular recipes in the areas. >> percentage of your business now in the food space versus we talked about body lotion, for example? >> well, a significant part, 50% is in the food business so that's processed foods, that's sweeteners for candies, yogurts, that's part of the food side and then beverage and brewery would be another large piece of the business. >> as we get more away. i don't know if you think it's a trend or not away from packaged food, what does that do for your business? >> well, actually, we help the food companies formulate recipes in the center of the store and then around. in fact, we bought a food company, kerr concentrates, this summer that really takes fruits like berries and processes it for smoothies. so we've reinvented ourselves to work with the food companies and be more important to them with a

broadening of our ingredient portfolio. >> i remember corn products and then you bought the starch company. so it would have been corn -- eileen, i like your name. >> thank you. >> could you tell from the tone. did you hear the way he asked the question though, the tone of it? do you -- ask it again like that? ask it again like that. >> we were just discussing the name. >> but you said, do you really like that name? i mean, do you like -- >> if i'm being honest -- you were saying i don't like it. >> i don't like mondolese. >> some say to me, where did you get that name? >> it was available. >> i can't believe it was available. it's a great name, eileen. >> you're going to go visit your lab today down in -- >> she keeps it on. >> absolutely. today is our worldwide webcast. quarterly i go talk to 10,000 employees around the world. today i'm going to do it from new jersey because it's a wonderful center of innovation. >> from ingredion, a name that

we love. >> great name. >> maggie is sticking around. >> go indwreed on. >> go, ingredion. when we come back -- >> on the chart. >> that's something i'm proud of. when we come back, secretary of state john kerry meeting with french officials on how to respond to last week's deadly terrorist attacks. we'll speak with dan seymour. he'll be talking to us next right here on "squawk box."

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these terrorists have declared war against all civilization. they rape and torture and pi pillage and call it the wilf god. they are in fact psycho path thick monsters and there is nothing, nothing civilized about them. >> secretary of state john kerry meeting with french officials to discuss the response to friday's deadly attack in paris. we are joined by dan senore, co-founder of the policy initiative. i don't want to spring it on you. did you see it yesterday? >> yes, it was excellent. >> it was excellent. and you get rid of isis, you don't necessarily get rid of islamic extremism. you need to deal with it and the way -- the model that we have right now is israel. the way israel deals with it. that's sort of what you're here to tell us. >> well, no, israel has dealt with a population within its borders. >> not islamic extremism.

>> bar baron ibarians in your m >> they've dealt with that to shut -- i mean, the kind of terrorist attack that happened in paris is almost impossible in israel. >> why? >> for instance, there's basic security in any facility that is hosting large numbers of people. you can't walk into a cafe today in tel aviv,er r er ruinjuries without them checking your bag. the idea that someone could walk into a hall or sports stadium with suicide bomb vests is unheard of in israel. >> they actually stopped them at the stadium. >> at the stadium. one of them remained outside. >> right. and the concerts and the bars. so there's preventive arrests, intense surveillance. that's important. the reality is these are all symptoms. all of these things that ayan was talking about in her op ed were symptoms. unless we deal with the sanctuary in syria and iraq, we

won't deal with this question. >> speaking of the israeli society, we don't think of them having a closed society. i put israel in that camp. am i wrong? >> it is a very free and democratic society. there's a democratic free speech debate. most critical of the israeli government are the israeli arab newspapers. in that respect, yes. there is a high tolerance for doing things in terms of surveillance, in terms of infiltrating attacks before they happen by going after people that you are just suspecting. >> and profiling. >> profiling. profiling. right. human profiling. if you go in and out of an israeli airport, the interrogation you go through effectively to get on and off of a plane takes a couple of minutes but they're trained not to rely on equipment but human profiling. >> they're willing to give up.

>> the difference is the threat. >> the mosques. >> the machinery indoctrination. it's good in europe. so for europeans doing what's necessary.

>> we have a layer of protection. you have these refugees coming into europe. >> it's it add a lay of protection. >> the intelligence agency and the nsa. there's a collection for a few things that is the developing the authority. they shouldn't sit back and sin

2004 in mumbai in 2008, cities, these things are very vulnerable. >> it's interesting. in france. they're trying to align themselves. it's being seen. >> it speaks to them. it's a hard right. the foreign policy. putin today is in syria. we're barely in syria. putin is in syria. it's a cut throat. >> we had him on yesterday.

he said the only way to do this, there's no other way to stabilize the situation. >> yeah, so i have done that. there are several military leaders who believe as carl does and sort of recreate syrian society. the commitment. kournl jacobs is recommending. i don't know if that's the priority. it is very hard to do all of this. homeland security unless you deal with the sanctuary, there are tens of thousands of people being trained in these training camp for 50 yeerz. that doesn't require a quarter of a million troops. >> when they're returning.

these isis strong holds, so stronger air capabilities, some ground capabilities. i do not believe they'll disrupt the sanctuary because of the vacuum of leadership that we're -- that we have here. now when you saw putin, i was like, putin, that's a guy -- maybe that's the guy we need to go after -- >> right. >> there's a guy -- >> who's tough, ruthless and gets it done. >> i said wait a minute, what am i thinking? >> a lot of people were saying now something will happen. it's the enemy of the enemy.

isis is worse than we think of even in the ukraine and all this stuff. all this bad acting. it's like, wow, finally we got a guy in there. >> when you watch president obama's press conference yesterday -- >> i wasn't going to bring that up. it's too easy. >> perplexing. he was basically saying what i'm doing is working. he sets up this strong man, if you're not with me, you're for world war iii. >> just too easy. unbelievable. >> it's unlike you to just -- to avoid the easy -- >> i know. i was flabbergasted. hi watson. annabelle, your birthday is tomorrow. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy.

are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you.

get down to the new york stock exchange. jim cramer joins us now. is this the beginning of a turnaround of walmart, do you think? or dead rock bounce? >> maybe what doug's doing is on target, if he didn't have to cut numbers again. they cut numbers repeatedly. the fact they can make the numbers is a sign perhaps that there is a nation turn. i think you have to wait more than just a short period. but it is good to see that doug took the numbers down to a level where he can exceed them. i think some of the categories were good health and wellness looks good. it is good to see them try to climb out of the hole. the hole included some very low bar that makes it so that they can top.

versus tjx and home depot where there were high bars and they jumped over them. >> do you think we're out of the woods in terms of the overall market? >> not if the fed decides to raise. i think a lot of what happened yesterday was a belief that, wait a second, with this terrorist attack and some recent data, there's no way he can we can raise. that will go away if we think walmart's good, home depot is good, steve liesman comes on, that will get rid of the rally. >> you have the eagles. i'm not unhappy i didn't have the bengals. >> that was a baseball game. >> knew it was coming. thanks, jim. >> okay. we'll get some final thoughts from our guest host when we come back a programming note, tune in tomorrow at 7:00 a.m., we have macy's ceo terry lundgren on.

can a business have a mind?

a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

. welcome back. let's turn to our guest host. maggie, congratulations. ernst & young naming you their entrepreneur of the year. congratulations. >> thank you. it was privilege. i've been an entrepreneur for 35

years, multiple companies. it was a great opportunity. they do such a great job. >> when you are ceo of a major company people probably don't think of you as an entrepreneur anymore. you are running something and staying big. how do you stay an entrepreneur even when you're in charge of thousands of people? >> it's a great question. when i was first nominated, i said, really, i run an 86-year-old company, fortune 500. i always looked at frontier as small and then big. lots of small markets in rural and suburban america. pnls down at that level, general managers running those businesses. i always tried to say stay mean and lean at the corporate level, pay for performance. it's an entrepreneurial approach. plus we do a lot of non-investigation with internet, technology, video.

it's exciting. >> maggie, thank you very much for spending the morning with us. it's been a pleasure. thank you for bringing bests. thank you for coming in. >> it's been great. >> great to see you. >> thank you. that does it for us today. keep track of the futures. you have home depot and walmart with better than expected earnings. that's helping out the dow. up another 74 points today. that does it for us today. we'll see you tomorrow. right now time for "squawk on the street." good tuesday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. stocks point to follow through after monday's rally. consumer inflation in october relatively stable. some decent news out of walmart and home depot as we keep a close eye on developments out of paris and belgium. europe is seeing gains of about 2% this morning on dovish ecb commentary. bonds are going to have