i run on quickbooks. that's how i own it.

the latest on the ground in paris. dow hanging to some gains. largely on the back end of an upgrade. we are waiting for developments in french and paris. french prosecutors expected to have a news conference at 1:00 p.m. oorn time to give us some developments, some details on those raids overnight in paris. michelle caruso cabrera, our chief international correspondent, has been on the scene all morning long and brings us the latest. good morning once again, michelle. >> hello, carl. that raid occurred on this street, the block that you see behind me. an apartment building down 300 yards from here where we are. it was a dramatic night for the

residents in this neighborhood beginning about 4:30 in the morning they heard gunfire, explosions. it went on for several hours. when all was said and done, seven people were arrested. two were dead, including a woman who had detonated a suicide vest upon special forces entering the apartment. she killed another man who was in the apartment as well. here's what we don't know at this point. did they get -- did they get abdel hamid abud. he is the mastermind behind the attacks that killed 129 people. we also don't know where is salah. is he the man for which there has been a massive manhunt for the last two or three days here. they believe he is an accomplice as well. we may get some kind of answer at 1:00 when the prosecutor holds that news conference. soon after the raid ended, french president francois hollande spoke at a prescheduled event that a risky police

operation had just ended, that it aimed to neutralize terrorists that were lodged who he said were connected with those who committed the attacks against god on friday night. guys, we'll be watching that news conference at 1:00 to see if we have answer bz those two individuals that the police have been seeking. >> all right. thank you very much, michelle caruso cabrera. >> it's good to talk to you once again. >> nice to talk to you too. >> obviously we don't know anything until these prosecutors give us some more details at 1:00 p.m. eastern. obviously we want to know to what degree those raids may or may not have neutralized the threat. what is the reaction to hollande's address this evening there? >> well, i think that people -- it really depends who you are talking to. and people feel like he is not doing enough. other people are afraid that france is going to become kind of a police state with more people monitored. what happened after a dreadful

terrorist attack. there's a lot of debate about the limit of, you know, surveillance versus how much information authorities need to have in order to prevent these attacks. i mean, looking at the french wreed today, there are many different reports circulating out there unconfirmed, but one report in the french media, i read, is that the cell was allegedly plotting something against charles de gaulle airport and a shopping center. still, it gives you a sense of the kind of anxiety that many people are feeling today. it's almost we want to return to normal, we want to go back to our regular lives, we want to go sit in a cafe in an act of defiance, but famt there's a lot of chatter out there that makes you worried, like, where is this going to happen next and when? >> rachel, san-denis -- it's striking that there's someone with a suicide vest. other people with arm that is can engage in a firefight of

this length with police. what's the reaction to that, the idea that there were these people with that kind of firepower in an area that seems to be that densely populated? >> well, i mean, i think that a lot of people are surprised, but also not surprised. the french suburb refers to an inner city area. the way paris is organized is at the center of the city it's more like the center and it's more like what we would call inner city in the united states, and then the suburbs are more like what we would call an inner city versus -- in any case, the center is a little bit more wealthy and gentrified. the suburbs are more mixed in terms of economics and race. it's a rough around the edges area. people there are trying to get on with their lives, but there's been a lot of issues in that area and other areas with different people, you know -- this is not the first time that things like this have happened. certainly it's the first time since they've happened in saint-denis. the question was how are people reacting to what's happening.

it feels like this is a kind of a war situation. i mean, hollande said we're at war, but it's almost a kind of hard to characterize. it's not like it's clear where the frontlines are or who the enemy is. people, the residents, the "new york times" has been reporting that residents in saint-denis have been terrified by what's happening. >> of course. >> one woman said this was happening in her building, and if you look at the "new york times" site, we have a very exhaustive live blog that's been covering every incremental step of this. you know, people were terrified. they were saying, you know, how about calling out to the police? >> we appreciate your guidance and "the times" coverage has been exemplary, of course. we'll talk to you soon. >> thanks a lot. take care. >> for more on what's happening in paris, let's bring in retired u.s. army colonel medal of honorist and military tlois jack jacobs. colonel, as you look at this expanding dragnet in france, the fact that sweden now has upped

its terror level and the incidents in germany yesterday, what can the u.s. do as we think about our involvement, our response in addition to sharing intelligence with these governments? >> well, that's what i was going to say. i think sharing intelligence is something that has not been done effectively up until now. clearly. we didn't know very much about -- as much as the french did about their own territory, and we need to. we're starting to share intelligence with, of all people, the russians because it looks like there's something of a de facto alipts among the united states, the russians, and iran in order to try to knock off cells of isis in syria. this kich intelligence sharing is extremely important because without it, you're not going to be able to make any inroads against these guys. it's human intelligence we really need. that will only come from the operators like the french and the people on the ground.

>> you can now send encrypted messages, and they disappear on playstation. we need to access other people's

people on the ground, and then verify the things we see with satellites and other means with actual human information. in that way we'll be able to make a much better -- many more inroads into isis. at the end of the day, however, just dropping bombs on people is just not enough. there has to be a multi-national coalition on the ground to seize and hold the terrain that will be vacated by eliminating isis cells because isis is very serious about what it wants to do. it's hurdling towards the apocalypse. they want you to die, and they want to die as well, which means that half measures are not going to work. we can talk about whether or not the united states is going to send more people or not, but at the end of the day it's people on the ground that actually are going to make the difference before you eliminate these guys.

>> one reason is we're extremely large and very diverse country. i mean, this is a huge country. it's a very complex country, and we've had a long history and tradition of resisting intrusion. that's been part of our problem, by the way, but there's no electoral will for anything other than a modest government intrusion into our lives. that puts us at risk, but there's always a tradeoff between privacy on the one hand and privacy and freedom on the one hand and security on the other, and the lines are just now being withdrawn. we're not turning into israel, i don't think the population is

ready for it. >> we have to leave it there. keshl jack jacobs talking about paris and our fight with isis. meanwhile, we want to get a check in on the markets right now. still third day of gains for the major averages. the dow had been up as much as 116 points. our losses for november slipping for the major averages to below 1%. shares of target, meanwhile, slipping this morning amid concerns of slower on-line growth and some margin pressures too, but revenue, beat expectations and the company was able to raise its full year earnings forecast. that's the second time it's done that in three months. shared, though, down 5%. carl. >> when we come back, more than over two dozen governors oppose accepting syrian refugees into their states. we'll talk to one governor that will continue to accept syrian refugees when we come back and "squawk alley" continues in a moment. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code

that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition!

tand that's what we're doings to chat xfinity.rself, we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible.

because we should fit into your life. not the other way around. s&p back in the black for the year. seems like every day we go back and forth between positive and negative year-to-date, but we are above 2058, as can you see, which means a slight gain for the year. dow industrials back to 17597. some of the terror concerns and the nation's governors seeming to drop or delay sear wran mi grant frsz dropping their borders. 31 now say they pose letting the refugees into their states. 11 governors, all of them democrats, saying their states will continue to accept syrian mi grants. joining us now from one such state is connecticut governor

dan malloy. governor, it's good to see you this morning. thanks for joining us. >> happy to be with you. >> all these republican governors appear to be responding to this outcry from the public saying protect us. what is your argument to say leave the policy unchanged for now? >> we are going to protect our sit sfwlenry. that's what we're in business to do. we can't let the terrorists win. we can't have them defeat our values, our love of freedom and liberty. to give into them is to allow them to win. let's talk about the actual statistics, and these governors should have learned this stuff before they shot from the hip. in the last -- since 2011 only 23,000 people have been recommended from syria by the u.n. to be considered by the united states we're want talking about a lot of people. we're not talking about a lot of

threat. by the way, let me point a couple of things out. the people who have been involved in the terrorist attacks in france, most of them are french and belgium citizens. none of those governors have said we shouldn't let french and belgium people in our country. let's go back to 9/11. many of those attackers were from saudi arabia. we haven't terminated our relationship with our ally saudi arabia. you know, this is just piling on by a bunch of folks who didn't do their homework. >> in contrast to other governors saying we just don't have enough information about these refugees at this time to feel comfortable. >> listen, there was a briefing last night with the white house. the white house walked everybody -- every governor who wanted to be on that call got walked through the process.

they can understand the process. here, let me share some things with you. since 2004 over 2,000 people on the terrorist watch list have been allowed to buy guns in this country because the nra has opposed putting people on the terrorism watch list on the list of people who can't buy guns. we don't have universal background checks. you can be a terrorist or on the terrorist watch list in america and buy a gun. if these governors want to do something to make their citizens safer, let's start with that. how many of them are actually in favor of universal background checks. how many of them are in favor of closing the gun show loophole? how many of them are in favor of closing the internet loophole to buy guns? you know what they're doing, they're picking out o a very small number of people to make a

political point because they want -- that's it. they want to make a political point. they want to appear to be strong when, in fact, they're not strong enough to get the information. >> so, governor, what was the tenor of this call with the white house? what was the attendance level of the states in this union on that call, and were there any leaders to what you can tell that changed their mind afterward? >> there were some governors -- there were some republican governors who obviously by the end of the phone call had a lot more information than they did before, but every state -- every one of the 50 states has someone designated to work on this refugee issue. we have one in connecticut. that's the reality. it's not as if there's no information available about this, but let's -- now, let's talk about who might be coming into our country. we have allies from syria who actually are on the side of overturning the monarch who have fought isil. should we turn our backs on them? should we say, hey, listen, we're going to send you back to

your country where you will undoubtedly be killed? to the women, should we say we'll send you back to your country where you'll be raped and sold into slavery? should we say to the people who have taken up arms in support of what we believe is freedom and what we believe is liberty and should we not allow them into our country? let me give you a statistic. in 1938 when we should have known or did know that the jewish population of europe was under stress and under threat, only 5% of americans said we should increase the number of immigrants to allow that jewish population to migrate to our country and elsewhere. we have a record of what closed-mindedness does, and we should not be responsible for that again in our lifetime.

>> 30,000 people versus 129. >> governor malloy, we appreciate your time. it's yet another rift in federal and now state policy. thank you very much. dan malloy of connecticut. >> meanwhile, on the heels of the german stadium evacuation yesterday and friday's attacks in paris on a sports stadium and at a concert venue, a range of companies are now re-evaluating

security. julia borstein joins us now with a closer look on how this is unfolding. julia. >> well, kayla, to board an airplane with hundreds of people, you need to provide personal information and your ticket is tied to you, but to enter a stadium with tens of thousands of people, pretty much anyone can buy a paper ticket on the secondary market. industry experts are starting to talk about that, and that may start to change. security expert michael balboni says he expects sport and convert venues to start screening the names of people who purchase tickets ahead of time. to ramp up behavioral assessment screening, which means interacting with ticketholders to identify suspicious behavior and add bomb-sniffing dogs and use facial recognition to screen people walking in, comparing those faces with those in databases. at sports venues security was notably heightened over the weekend. the nfl says it's been in close communication with the department of homeland security and the fbi saying there will be increased security in law enforcement presence both inside and outside stadiums.

this morning on cnbc swrets owner woody john son says his security focus is now on parking lots. >> i mean, that's really the next step. we do a lot, and there are dogs, and there are other kinds of equipment that the law enforcement puts in as people are coming in to test for certain things, and we're doing everything we can do. >> live nation madison square garden grew and ag among others are empolice departmenting heightened security, but understandably they don't want to share the details of what they are working on. back over to you, guys. >> yeah, certainly. that goes without saying they don't want to share those, but part of the new world we live in. julia borstein out in l.a. back to you. >> more calls for increased surveillance in the u.s. after attacks in paris. the top cyber security executive will weigh in when we come back.

welcome back. terrorists are known to use encrypted messaging platforms to communicate with one another undetected. encryption keeps data private, but is it doing more harm than good? shane mcgehee, the chief privacy officer for fire eye. shane, this is the big rage about encryption. it seems to me if people want to encrypt their messages, legal or not, here going to find a way to do it. what's this really about? is there a fix that can please both the technology community and the u.s. government? >> this is really about two things. i think privacy advocates are very concerned about mass surveillance on the one hand and about criminals and terrorists gaining access to their communications on the other. privacy advocates are very concerned about any back doors written into our encryption software created here in the u.s. i don't think the solution -- you ask about a solution.

i don't think it's to give the government a back door pass into enkrimgs created by u.s. companies. that's simply because it doesn't work. i'm all for giving law enforcement and the intelligence community all the tools they need to keep us safe and to accomplish their mission, but if we just say the u.s. companies need to provide that back door key to the government, we're going to be in a position where people are just using application that is are created by companies outside the united states or open source applications, dozens of which already exist instead of using u.s. software. we'll all be at the same conclusion either way. the terrorists will be able to use encryption that we can't break, but if we make laws like that in the united states, you're going to have a situation where our economy is harmed, and u.s. companies won't be able to compete. >> so is there any solution short of making our internet lockdown like china's is, which very few, if any, people i believe would advocate. >> yeah. i haven't heard anything advocate that, thankfully. i'm sure there are solutions. i think we need a public-private

partner shup here. silicon valley and u.s. industry needs to sit down with the government not under these threats of forcing the companies to open up their encryption and hurting their business while doing that, but to sit down. i think everybody has the same interests. everybody wants to protect the homeland. everybody wants to be secure. we need to sit down and have those discussions face-to-face. >> but these companies, shane, and the government have been largely at odds over this issue for the last few years because of the revelations made by edward snowden. does an incident like this, a terrible tragedy, a terrible massacre, break down that barrier? >> it might. i think it will drive people to the table because, again, everybody sees that it's in everyone's interest to have some way to track these terrorists. yes, it will get there. the -- you know, you mentioned the snowden disclosure. that's what led to companies like apple and google using point to point encryption that even those companies can't see. they did that because the

snowden disclosures were an example of what they thought was government overreach. i think the solution here is not proposing more government overreach. it's sitting down and cooperating and discussing creative ways. there's a lot of smart people here in silicon valley. i'm sure we can come up with ways to give the government what it needs in constitutional -- with constitutional protections in place without opening everything up to a master government key. >> all right. we will continue to watch it. of course, see if there is any solutions to that encryption impasse. session highs in the states, but europe is going to end up mixed. simon is back at post nine. >> flat to negative overall. i mean, do remember that, of course, europe bounced 2.5%. that's where you are coming off of that extended gain there. the bond market is certainly rallying. if you were to look across the one trade that's working, it's that the bond markets in general are hire. yields are lower.

that has to do with the sheer waeft expectations as to what the european central bank will do on december 3rd. it's not -- most of this isn't really a reaction to what's happening in paris per se. in fact, citi put a note out in which they say they thought the economic consequences as they stand at the moment would be marginal, what they would worry about would be the political reaction in france further down the line at investors when they vote on december 6th and the 13th because of the rise of the far right and the bigger implications. nonetheless, have you seen that the bund today was auked for the german government at a record low of minus 0.38. that's a sign of the times with the ecb, and the fact that as they extend we or least they double down on qe and cut the deposit rate, whether or not they're going to have enough paper to buy. we've been through that argument before. in the meantime, if you look at sectors that are moving, basic resources are higher. goldman removed its sell recommendation on anglo-american within the copper sphere.

you've seen today -- there gu. natural gas is up almost 6%. they feel you might be coming towards a bottom in the copper market. we've also seen the greek banks under pressure again today. you've got two right issues going through there. the people are concerned and may have some difficulty. it's pirarius and national bank of greece. then, ultimately, it comes to those individual stocks that are moving on m&a moves. liquide is paying almost $14 billion for air gas in this country. a lot of people concerned that they may be overpaying there. the stock is down 7%. syngenta, the giant within pesticides, has been rising through the session today. financial times is reporting they've rebuffered the offer from the chinese as being insufficient. there's a lot of chatter that's still monsanto might come back or other players like dow chemical. for the moment, back to you. >> thank you very much, simon hobbs. we are live on the ground in

paris with the latest there waiting for the french prosecutors to hold a news conference at 1:00 p.m. eastern time. dow close to session highs. up 126. the s&p up almost 15. we're back in a moment. being a keen observer of the world has gotten you far, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

good morning. i'm sue herrera, and here is your cnbc news update this hour.

it said it originally planned on down aing western plane, but changed a russian target after russia began its air strikes in syria. russia releasing video showing what it says are long-range bombers carrying out a massive air strike on isis targets in sear wra yesterday. to prop up syrian president assad. the u.s.-led coalition said it conducted 16 air strikes in iraq, 13 in syria on tuesday. iraq releasing video showing what it says are air strikes targeting isis hide-outs and vehicles in the military sectors of anbar and fall uj wra. nonstop rains and flooding have killed more than 70 people in southern india. the streets remain under water with many people evacuated from their homes and placed in temporary shelters.

>> let's get to the latest in paris where overnight raids in the public of saint-denis, capturing seven, and as we await a press conference from french prosecutors, let's get to cnbc's hadley gamble on the ground with the latest. hadley. >> good evening. tonight this is a country that is, in fact, at war with islamic terrorists and once again french lawmakers calling for more boots on the ground in syria. they say they want to put french troops there. of course, we know already seven people are in custody tonight in paris. we know that five policemen were injured in the attacks that took place over a six-hour period earlier today in a northern suburbs of paris, and we also know that at least two terrorists are dead, including one woman who blew herself up rather than be taken by police. now, of course, this all plays into the wider picture of what's going to happen next. we of course, know that president hollande will immediate with president obama next week. he will also head to moscow to sit with mr. putin and arab

diplomats are telling me this is the most crucial step going forward because they say they're hoping that mr. hollande will now go to the u.n. and ask for a security council resolution to go after the islamic state. kayla. >> all right. thank you so much, hadley gamble, outside paris for us today. for more on the situation in paris and what the u.s. can do to help stop terrorism, joining us today is p.j. crowley, the former u.s. assistant secretary of state for public affairs. it's good to have you. >> hello, carl. >> 115,000 police mobilized across france. it's an amazing number. i just wonder how sustainable you think that is. >> well, obviously they're trying to deal with -- to try to make sure that they both understand what happened in paris and deal with the implications of that. i like to react to what hadley just said. the last thing that the west should do is to put u.s. or western boots on the ground against the islamic state. that's exactly what they want us to do. that's the fight that they want

us to conduct. they want to convey a western war with islam, and we shouldn't succumb to that impulse. >> how much is doable then from the air in that case? >> well, i think we're in two phases here. the first phase that we're in is degrading the islamic state. that is something that united states, west, even russia, you know, can accomplish. ultimately to defeat the islamic state on the ground requires taking back territory. how we do that matters. the west has a stake in this outcome. it should support this impetus, but ultimately these have to be regional forces that retake that ground, whether it's kurdish forces into, you know, in the -- or the iraqi security forces that really do have to get their act together. the sooner they can do that, the better. they're going to have to take background around fallujah into mosul if we're going to defeat the islamic state. stroo colonel, it sounds good to

say that it's going to take governments in the middle east that reach across the aisle and include sunni, shia, and others to really stamp out isis and prevent them from getting a foot hold even if we were to send troops in, but realistically it's hard to find examples of governments like that rising up and having legs over time. what is not the end game, but the middle step that's really going to degrade the capability here and perhaps keep isis, whatever we call them, from striking at other western cities? >> well, you know, francois hollande describes this as a war. it is a war, and if you understand that context, it's moved beyond just terrorism. you know, the islamic state is not a real state, but it's acting like one, and what it's shown in recent weeks, not only with paris, but also with beirut, you know, and with

egypt, is it's now extending its defenses. we have to expect these kinds of attacks. i don't think that what we saw in paris changes our fundamental understanding of what we're dealing with. we have to be strategic and patient in our response. if we are too impulsive well, actually play into their hand as opposed to using our actions to get into that middle step and also to that long-term. how do you create a more stable and pluralistic dynamic in the middle east? i think we also have to understand this is going to be a long-term effort. you know, our impulse is to do something, but we have to recognize that getting to where we can rebuild, you know, the states of yemen, iraq, syria, libya, is going to be a multi-decade process. >> i think that that is certainly the case, and that is what a lot of leaders are struggling with, colonel, but the fact is that over the last

more than year there have been 8,000 air strikes over that region. what do you expect president hollande will say to president obama and president putin when they meet over the next week to take this strategy into the next phase? >> well, i certainly think that we can intensify the air campaign. that can take you a long way towards that element of degrading. actually, given that this is a war, the key so delegitimizing, defeating the islamic state is to take back territory. that is fundamental. they have -- they are governing a certain body of territory, and to destroy the islamic state, you're going to have to take back that territory. i think that we have to look at -- we've been very cautious about the support we've given to syrian opposition forces. we do need to intensify that. we need to accelerate the work with iraq because ultimately, you know, they will need to take back territory with fallujah, the prize on the iraqi side of

the border is mosul. that's going to be a very difficult campaign. do you think there's a balance between privacy and security, openness and security? >> what we are seeing here is there are some gaps in the intelligence capability of european intelligence services. i mean, this was a very sophisticated operation. you know, it's a lot like charlie hebdo or a lot like mumbai if you go back to 2008. it adds the suicide vest element, which means if you can't go down to the local wal-mart and buy suicide vests. you can get -- on the open market.

i think today we have to have an understanding notwithstanding the best everts of government. you're going to have many good days. occasionally you'll have a bad day. pair i was a bad day, but it doesn't change our fundamental understanding of the threat that wear dealing with. we're going to be dealing with these kinds of situations on and off for a long time. >> colonel, thank you so much for your time. really appreciate it. >> a pleasure. >> p.j. crowley joining us from washington. up next, stocks once again powering through those overseas fears. rally sog far this morning. a couple of top movers in just a moment. td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.

there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

coming up on the halftime show, target's ceo joins us exclusively today on his holiday outlook and the retail sector's recent pain. plus, apple and exxon. the street thinks one is a buy, and one is a sell. we'll debate the calls of the day, and our motif much the month is a sector of stocks -- is it right for your money, though? we'll discuss. john, we'll see you in about 15. >> all right, sounds good. thanks. here's a quick look at some market movers right now. shares of qualcomm down about 8% hitting a four-year low today. south korea's anti-trust agency alleges that some of the chipmakers patent licensing practices are illegal. qualcomm says south korea is recommending a fine that hasn't informed qualcomm of the low.

piper jaffray lowered go pro's price target to $15 from $20. the firm reiterated its underweight rating. go pro is down more than 30%. just over the last month. there's some other reports that go pro, even some of the latest ones, showing up on discount sites like groupon, and analysts questioning whether that means their margins going forward will be in danger. we know they have inventory issues, though, so that could be part of what's happening here. >> below $20 a share, that's when you normally would hope to see an executive buying shares of their own company. that's quite a level for a company that priced its ipo at $24. >> nick woodman did tell us on "squawk alley" that he is going to buy shares at this point. i don't know exactly what mice prices he is stepping in or if he has followed through on that yet, but he did say he would do that. >> 15 is an interesting target for a stock that was $65 three months ago. >> it was 90 something a few months before that. yeah. >> well, up next, a big day here

tomorrow. square expected to go public. pricing that ipo after the bell today. what you need to know ahead of that event. we'll tell you when we return.

s&p up almost 18 points to 2,068. the dow up 150 points. this will be the third straight day the dow has risen if the gains hold. a lot of it coming on the heels of some strengthened names like wal-mart and apple upgraded by goldman today. >> and despite the uncertainty overseas, vix below 20.

vix falling 4% today, which will be important after the bell because there are two high profile ipo's on it today. match group, which is being spun off from iac. it's being separated from that company, and also payment processor square. it's the latter company that's under close scrutiny because it could have consequences for other so-called unicorns. the company is eyeing a market cap up to $4.2 billion. that's at the high end of its price range when it comes after the bell. that valuation, though, puts it squarely between comparable companies like lending club at the high end of that valuation and first data at the low end. that's using a price to sales multiple for the last 12 months. we use that because a lot of these companies are either not profitable or they do not have sustainable earnings, so that's really the apples to apples comparison. there are a lot of companies that are trying to do what square does. some was on that graphic. you have first data. you have pouch. shop keep. those two are privately held

company. they're trying to offer their services a little cheaper. first data has a new point of sale program called clover, and they're trying to offer analytics to boost that offering as well. that's the reason why square launched square capital which many investors see as a powerful retention tool for growing merchants to be able to offer them a little bit of capital to grow. some investors even tell me they plan to invest money in square capital loans, but not in the ipo itself. worth noting, capital is run by former wrau hue executive jackie reses, a high profile hire just a few week ago. further boosting a powerful executive team that supports jack dorsey, who stretched it then as the ceo of twitter as well. you have sarah friar, popular head of product fran swaus brougher. also made themselves very accessible to investors. we've spoken about the strength of the board, but really, gigsz, it's going to come down to valuation for a company where

without profits there's a lot of competition, and it's going to probably need to come in within that range or potentially even below that range to win over high profile shareholders. weighing in on the the ipo market is it to talk about the square deal is manuel -- it's great to have you here. >> good morning. thank you for having me. >> talk first about square and match and how they are themselves litmus tests for the type of ipo market that we're in right now. today we're running significantly below that. we're running around a 56 or so number of ipo's. we're seeing a significant pullback in the interest of investors primarily challenging the growth and the cost of supporting these companies and the amount of capital they could use to sustain their growth

rates. >> we've seen so many companies take their price expectations down. priced at a discount and even square surprised by what people are calling a bargain basement valuation for a stock that was valued at double that in the private markets. are these companies doing enough to bring investors and bring potential bluechip shareholders to the table? >> the challenge is the ability to sustain valuation by having growth. as you said in brewer beginning remarks by square, they're facing challenges by a lot of incumbents today. they're well positioned. the square was the early adapter in trying to get the small s&p businesses signed up to their products. i think square has done a really good job of being disruptive on their product offering what they're doing. i give them a lot of credit. they're still going to go out at $1 billion plus valuation. it's still not a bad place to be when every start-up starts out a couple hundred millimillion or even less than that valuation. >> how closely are you going to be watching square?

as i look through the s-1 and the company's trajectory, there's a lot of risk in there. there's ceo risk. can jack dorsey handle the job? square capital has then doling out money from n a different way. from the idea it seems to me they understand the businesses well enough based on the patterns that they've seen in their usage of the core product. if any of that goes wrong, this could turn south. is this kind of a canary in the coal mine for other riskier companies that might want an ipo? >> i can't speak to specifics of square, of course, because i'm not involved in square, but clearly, the issue on square going public is, in fact, the can air where i in the coal mine. let's not forget, earlier we had fitbit go public, which has done pretty well as a unicorn. you have had pure storage go out and it's done fairly well. there are examples where unicorns tend to thrive afterwards. unfortunately, in some cases they don't. at the end of the day going public is the ability to raise

capital for the company, continue to sustain the business model. some will drift down, and we've seen some companies now as of late drifted down as much as 23%, 24% post-ipo's these days, but at least it's capitalization. >> we'll get answers in the public market in the next day or so. it will be interesting to see. man well, we prusht your insights today. >> thank you very much. >> manuel enriqueies from hercules. >> even as crude has come off of the highs, cashin says stocks and oil are trying for a trial separation. we'll see if it sticks in just a moment.

still looking for a strong gain for stocks as the dow goes for three in a row to the up side. we're up 134. some of your winners in tech today include apple, amazon, gilead and facebook. it's going to be a busy afternoon. big. >> announcer: -- big announcement from sprint. the fed minutes at 2:00. then tonight crm, we haven't talked about the cloud a whole lot since cisco and hp, but that's going to be big. keurig green mountain and a lot more. >> there's a lot of

anticipation. work days have been better than 3%. some people hoping that enterprise cloud as well. not to mention square and match. you working late tonight? is. >> yes, i will be. yes. it's such an indication of confidence. let's get over to headquarters. scott bhop ner and "the half." >> thanks. welcome to the halftime show. let's meet our starting line-up for today. steve weiss is here, along with john and pete and michael block of right now wroe trading partners along side as well. our game plan looks like this. calls of the day. one buy, one sell. as the street weighs in on two of the biggest companies on earth. apple and exxon. target ceo live. brian cornell is here in a cnbc exclusive today on his company's business plans and retail's