for "nightly business report," i'm bob pisani. >> starwood is reportedly being pursued by chinese buyers. according to "the wall street journal," three chinese companies submitted proposals to beijing. the government is expected to select a bidder in the next few weeks. such a deal would likely be the largest ever chinese takeover of a u.s. company. shares of starwood rose 9%. >>> now to the economy, consumer confidence fell in october in part because americans were feeling less optimistic about job prospects. orders for long lasting manufacturing goods, durable goods, dropped 1.2% in september. following a 3% decline in august. and within the durable goods report was a key gauge of business investment. it fell for a second consecutive month. >>> the price of homes went up in august. the s&p case shiller home price index rose a little more than 4.5%, greater than july's increase. san francisco and denver saw the biggest gains both up double digits. >> the data dependent federal reserve is taking note of the incoming economic reports. the central bank began a policy meeting today and will

bob pisani explains from the new york stock exchange. >> reporter: i've been telling you about the revenueecession that corporate america has been facing for the last six months. we are faced with the prospect of four consecutive quarters, potentially, of negative revenue growth in 2015. companies cannot even beat the lowered revenue guidance for this quarter, the third quarter, with 20% of the s&p 500 reporting so far, 70% of the companies have beat earnings estimates, but only 38% have beat revenue estimates. that's pathetic! why can't companies get any revenue growth? there's two problems. one is the strength of the dollar, which reduces the value of profits when you repatriate them from abroad. dupont, for example, said yesterday that earnings for the full year are about 20% lower due to the strong dollar. that's huge! now, some people have been arguing that there wouldn't be a revenue recession if the dollar wasn't appreciating, but that's not quite true, because the other major problem is the global slowdown. orders are down from many of the big global industrial and material compani

for "nightly business report" i'm bob pisani at the new york stock exchange. >>> and that's "nightlyport" for tonight. i'm sue herera. thanks for watching. >> and thanks from me as well. i'm tyler mathisen. have a great evening, everybody, and we hope to see you right back here tomorrow night. ♪ kacyra: it kind of was, like, the bang that set off the night. rogers: that is the funkiest restaurant. thomas: the honey-walnut prawns will make your insides smile. [ laughter ] klugman: more tortillas, please! khazar: what is comfort od if it isn't gluten and grease? braff: i love crème brûlée. sobel: the octopus should have been, like, quadripus, because it was really small. w sbrocco: and you know that when you split something, all the calories evaporate, and then there's none. whalen: that's right.

bob pisani tells us why this ipo is different from some of the others we've seen recently. >> by allccounts, it was a very respectable ipo for ferrari, and here it is right here, but it has nothing to do with the recent ipo market. ferrari's an anomaly, a very unusual ipo. in the last four weeks, there's been 14 ipos, according to renaissance capital. of those 14, only 2 priced within the expected range. not a single one priced above the price talk. on average, those 14 priced 22% below the midpoint of the price talk. that's a big decline. but this has been good news for investors because those that have been priced have been doing better. it's buy low, sell high, after all. the average ipo that has gone public in the past month is up about 11%. so, why is ferrari a special case? it goes to what matters with ipo pricing. first is the sector, the luxury lifestyle sector. big names like besh erie have stock multiples and margins higher than the general market, but the most important factor is the uniqueness of the ferrari product. ferrari oozes sex appeal, and the company has a very cl

bob pisani lists the five things that are needed to stabilize the market. >> reporter: you've heard this many times. october is traditionally the month where stocks bottom. there's some truth to this. since world war ii more than a dozen bear markets have ended in october. now, that's the good news. the bad news is these are not normal times. so just because we're going into a seasonally strong time of the year, it doesn't automatically mean we're going to rally. what do we need for a bottom? there's four or five key elements. first we need stability in china. we don't even need more stimulus. we just need a more stable economy over there. secondly, oil has to stabilize. oil's become a proxy for global growth. so stocks and oil often trade in tandem. third, we need clarity from the fed on interest rates. it's time to make a choice. rate hike or no rate hike. of course we need a stable dollar. and finally, continued job growth. and more importantly, wage growth. now, this is a pretty broad wish list. but we don't necessarily need all of these things to happen for stocks toned the year hig

for "nightly business report" i'm bob pisani at the new york stock exchange. >>> and that's "nightlyport" for tonight. i'm sue herera. thanks for watching. >> and thanks from me as well. i'm tyler mathisen. have a great evening, everybody, and we hope to see you right back here tomorrow night. ♪ announcer: explore new worlds and new ideas through programs like this, made available for everyone through contributions to your pbs station from viewers like you. thank you. peter marshall; hi, welcome to my music! i'm peter marshall. nick clooney: and i'm nick clooney. and we're here to celebrate the wonderful era of popular music from the 1930s and '40s and early '50s with big bands, great singers, and sentimental songs. peter: taking us back to the days of the jitterbug, the foxtrot, bringing joy and escape at a time when the world went to war and americans banded together. nick: return with us now to "the starlight ballroom," right here on pbs. [in the mood playing] ♪ peter: music from the starlight ballroom is back. ♪ ♪ here i go again

we're here with the great bob pisani.'t get to do this with you ever. >> it's so much fun. >> thank you. >> wonderful having you here. >> energy is a problem because oil is trading at the low end of the range and the stock market gets smacked around by the oil market these days. that's a bit of a problem. then we have the industrials and the transports and they're kind of -- they moved today because some of the big global industrial names were a little on the disappointing side. we're getting beats on the bottom line but the revenues are missing by a large margin on some of these companies. global slow down, orders are slower and number two the strong dollar really hurting these companies. something we didn't have a chance to mention today, did you see the defense stocks, we have new highs in a bunch of defense names, who can heed martin, 52 week high, authorize tlup grum man, there is a deal to raise the debt ceiling level, this is great news for the defense stocks because buried in this whole deal is more money for the

bob pisani joins us from the nyse floor. it feels like it's been a stealth rally, bob. >> the reason it feels that way is there's no obviously strong leadership. it's not like oil is coming out of the box or even we're getting dramatic turnarounds in biotech. it's been up and down, but we are consistent. we're up fractionally for the week. the s&p 500 kind of meandering around towards the end of the day but still solidly in positive territory. as you mentioned, health care a modest leader but i want to mention we're getting big industrial names. ge not bad and honeywell had very good numbers overall, and more importantly they essentially said for the full year they'd be right in the middle of the consensus estimates, $6.10. down a little bit here today, but overall a very good number. i want to show what the effect of the strong dollar has been having. i have been pointing this out for a long time. they reported organic sales numbers were up 2%, but the reported numbers, which includes the effect of currency down 2%. this is

bob pisani is making a rare nasdaq appearance. i can't believe they let you in the door. >> i made a wrong turn and suddenly i'm in midtown. you can show me to the nearest bars. >> maybe a weak market and bad pricing means better performance down the line? >> that is what the evidence is so far. the important thing about first data, the deal got done. this he were ecstatic on the floor that the deal just got done. $21 billion in debt. variable rate debt. they need to go public and way down that debt. they'll take all $3 billion and pay it down. 15% haircut? they could care less. $15.75, who cares about a quarter? it's disappointing. volume was light. you think there would be more buying interest. 160 million share offering, should have done over 1 houston million. buying interest was not strong. i give this a b, maybe b minus. it got done and that's what matters. the deals getting done are a haircut. since labor day we had 14 deals. everyone accept pure storage had some haircut. the average has been 18%. since then -- >> meaning p

bob pisani said earlier heavy demand for most of the day. you could clearly see people wearing a piece of ferrari after it opened up. and the valuation a little under $10 billion and oh, by the way, for those people who think, it's an ultraluxury automaker. he says no, it's far different. >> they're buying cars. i don't want to make auditory remarks about the competition. if you've got to wait over 12 months, they go somewhere else. >> that was sergio marchionne talking with us after ringing the opening bell. basically saying look, we retain the value for the owners who buy these vehicles, and if you look at what's happened with the value of ferraris, it has gone up. even if they're going to expand production, they can maintain the value that basically is part of why many of the ultra wealthy buy ferraris. not only the vehicles for how they perform and look, but also because it's been a great investment for them. finally, as you take a look at shares of fiat. remember, people who own fiat chrysler shares will be getting the remaining shares

bob pisani on the floor, what is fueling the concerns, bob? >> revenues. and you're right. we're in the middle of q-3 earnings season. the professional community is already concentrating on q-4 and the guidance. and the guidance is a little bit troubling. it's two of the banks were okay. ge was okay. let me put up companies that indicated. the guidance is going to be tough or conservative guidance for the fourth quarter. it's not just one sector. we see mively cron talking abou issues. in the agriculture business, monsanto a week and a half ago talked about issues. the china consumer has been clearly impacting earning that's we heard a week and a half ago from young and wing ka seen yoechlt and in the commodities business, alcoa also indicated tough demand for aluminum. so what all this is creating, i don't want to concentrate on the earnings side, rev knees are the issue. it's a revenue recession here. so what we're seeing here, four quarters here, we're going to be seeing revenue object down side. q-1 revenues were down 3%. q-2 they were down. q-3 they'll be down. in q-4,

let's get more with bob pisani joining us from the floor of the new york stock exchange. welcome back, bob. good to see you. >> thank you, mandy. volume is not bad considering it's columbus day, but oil has been a problem. energy stocks, remember, big rally in the last couple weeks. take a look for example at chevron. as soon as oil started dropping and that was right after the open, the energy stocks went negative. there's chevron, a drag on the dow, down 1.75%. exploration and production stocks have been hard hit today. no particular reason. i think the primary reason is they have had a great run up in the last week and a half as oil has rallied and i think today people don't have a lot of faith in the fundamentals and are simply taking profits because some serious money has been made in the last week and a half. airlines doing very well today. jetblue, alaska air, american airlines, delta all doing well. railroads are on the downside and that's balancing things out. we're getting some heat in the ipo market. i was quis surpriquite surprise find out ferrari has started t

bob pisani joins us from the floor of the stock exchange. i guess the answer would be, not necessarily, right, bob? >> yes. and more accurately it's not in trouble but it's repricing and that's good news for investigators. it's buy low, sell high. stuff is on sale, people are taking advantage. a little quiet behind me but this morning it was very, very busy. priced at $16, opening at $16.39. you might say they were talking $18 to $20, isn't that a disappointment? 15% haircut getting it done was the most important thing for this company. very difficult ipo environment and they got it out. so what would be good today? anything with a 16 handle, anything would be good and that would be perfectly acceptable to the people who are involved in this deal. nyse ipo pricing postponed, that's why we're hearing on albertson's. they did make it last night, they were going to try tonight. the word is now it will be postponed. that would be the third largest food and drug retailer. we'll talk next week about when, if at all, they'll be coming this year. mea

for "nightly business report," i'm bob pisani at the new york stock exchange. >> on wall street, the dow snapped a three-day winning streak earnings by verizon, and united technologies wer not enough to offset the weak guidance from ibm we mentioned last night. by the closing bell, the dow jones industrial average dropped 13 points to 17,217, the nasdaq fell 24, s&p 500 lost two. >> to the economy, housing starts rose to a near eight-year high in the september driven by an increase in multifamily construction. the commerce department says ground breakings rose to a seasonally annually adjusted pace of $1.21 million. and new applications for building permits fell about 5%. >>> from housing to politics. where donald trump remains the republican presidential front-runner according to the latest nbc news/"wall street journal" poll. ben carson a close second with marco rubio rounding out the top three. while republicans prepare for the next debate, there are questionses in congress and within the democratic party about who will run for some positions and what that could mean for the econo

bob pisani has a special guest at new york stock exchange. bob. >> thank you, ty. a lot of applied ma schenck and now to even economic forecasting. the ceo of nowcast joins us. gisele, we do pick -- what's wrong with the way they do this? >> there's basically no science. we're using machine learning and paying data. >> what's the secret sauce? how do you actually go about getting economic forecasts and getting numbers that compete with wall street? >> well, we have a very sophisticated algorithm and econometric pattern and we're looking at human behavior to try to determine their consumption and spending behaviors. >> people look for inflation, the word inflation when they are concerned and you've turned this into an algorithm to get an estimate. >> we look at internet searches, ambient web, news, social media, blogs. >> a couple of forecasts recently. the floor was watching you very carefully on september 0th when you had an estimate for chicago pmi and put up the number, 53.4 forecast and the forecast you had was 48.1 and that came in at 48.7 which got a lot of a

we'll get to bob pisani. >> the most important thing is it is happening. it is going public. look at the information here on t agai it. the price talk was 18-206789 the mid-point, 19. when it is 16, that's about a 16% hair cut below the mid. as for albertson's, they didn't price today. the third largest drug retailer after kroger and walmart. we will find out tonight if they can do it. i know you are hearing the ipo market is in trouble. i prefer to look at it, it is repricing. that's good news for everybody that wants to buy low and sell high. we have had a lot of price cuts since then. the average price is 18% below the mid-point. there has been a first day average pop of these ipos of 10%. the following day, another 6.5% move. that's great news, because the people who bought this stuff are sitting on profits, which is exactly what you want. cutting the prices has improved the ipo market. there is pros and cons on first data. here are some of the important pros. this is a big leader in its industry. they have a lot of long-term contracts, stable, recurring revenue and very

guys, back to you. >> thank you very much, bob pisani.'s check out more on the stunning performance, we are bringing in jeff korzan irngs k and mikorzanik. did you santa claus rally come early. >> i think there's more life to it. maybe not as rapid as a pace because we have to digest the numbers from the fed. >> we keep getting into this pattern where global margins disappoint, stock markets down, central banks to the rescue and we go back up again. >> the fed is the number one factor but also the actual data has comes through between here and december that makes everybody comfortable or uncomfortable. i think the market itself has to kind of settle out a bit here. this is a logical place for it to stall in the short-term. it got suddenly very overbought. you're starting to see investor sentiment get bright after being despondent a month ago. that's the understandable reaction. what that means is you may not have stolen the entire fourth quarter rally but you have pulled the good news forward. >> let's talk seasonality for the moment. las

bob pisani joins me from the floor of the stock exchange. bob? >> draghi was the main catalyst, however, there's a slightly different way of looking at some of the earnings reports that i think is impacting things. let's look at the markets today and i agree with mandy and i usually do that draghi did help stocks. we did see a nice move up preopen in the futures as draghi had a very dovish tone. new highs are expanding modestly. the breadth is accident, 5 to 1 advancing to declining. we look at big industrial companies, 3m, caterpillar, dow chemical. they did well on the bottom line, but top line was on the light side. this is very interesting. we've been talking about revenue shortfalls but a lot of traders and analysts are now saying, look, the strong dollar has really hurt the revenue side, and some of them are starting to get a little bit of a pass on this. i think that is a very interesting way to interpret that. it's true, although i still see revenue declines even independent of the dollar. but that's a changing scenario that we're seeing.

there are plenty, not just these three, but we'll watch for gopro, amgen, and paypal, bob pisani.ll of them trading higher. >> what a day. my motto is do not yell at the stock market. it's a stupid idea. 2:00, the statement comes out. and everybody says, it looks like they're being more hawkish. and the markets seem to be taking it that way. stocks go up. the market goes down. and i kept looking and saying yeah, but where does it say that? i couldn't find it where they were clearly being hawkish. just because they used the phrase "at the next meeting," we're going to use the same criteria. that's really stretching it to say that that's hawkish. >> we've seen that before. i thought it was extreme. >> even higher where we were. august 20th, started moving down the two or three days where they were worried about china worries. we're back above the levels. we're still below the may highs. it's not that far away. that's what the technicians care about. >> 193 points. charles schwab and company, ringing the closing bell here. farmer company ringing the closing bell. a lot of earnings co

right now the dow down 70 points. >> bob pisani. head to the bond pits and check in with rick santelli. >> good morning. there is a lot of traders scratching their heads why rates are going up, but if you look at today's housing data, mul multi-family, rents are up a big amount, anywhere from 3.5 to 4.25% year to day depending on who you talk to and research you pay mind to. we know that prices on the inflation side have been moderating because of energy issues, but whatever the reason is we all know that the car is the new house for many millennials and rents keep going up. you can see we're moving higher basically one week highs depending on where these yields close, but maybe more significant let's go overseas for a minute. look at a two day of boone. yes, they popped over 60, open the chart up, these are shy of one month high yields going back to the 25th of october. if we look at the long end of our market in terms of 30-year bonds, pretty much the same dynamic exists in a more aggressive fashion. for its settlement last year 2

our bob pisani. let's get over to steve with the details this have jobs report. that two-year interest rate just right around 2%. not too pleased. >> the ten year you mean, kelly? >> ten year. thank you. >> two year is down at 55 also not counting on a rate hike. it's the second straight report well below 200,000. the first time we have had that happen since the spring. looking at wall street commentary seems this number takes that october rate hike off the table and even raises questions about whether the fed will hike this year. goldman sachs saying we see a fed hike in december as a close call. jpmorgan saying we're sticking with our december call but with less conviction. awful lousy terrible those were some of the adjectives used to describe the report. those are the ones we can hear on family television. there was nothing good about this jobs report t fell on a market that has come to see 200,000 as the standard, anything below that seen as substandard. every piece of the payroll report missed expectations. let's take a look at what bill calls hits, runs an

bob pisani? >> let's take a look at the s&p 500. we're drifting a little lower in the middle of the day. we moved into negative territory. you can't really blame oil. it's not energy that is the problem. i think i know what is going on. let me show you the kbe. this is the etf of the banks. this is where everybody goes to trade the banks. they're drifting steadily lower. that's an issue. the problem is simple. the banks tend to do well going into the few weeks before earnings. as they hit earnings season, the week of, they usually will sell off. so this is a fairly typical pattern. i don't see a lot of news out there on the banks. i'm not surprised to see this moving slightly lower. another problem is the industrial stocks. industrials are going to have a very difficult time. they're having problems with the strong dollar. we've seen reports already about that. and i think that's going to be an issue. united tech, honeywell, ge should be reporting on friday. textron. speaking of the strong dollar, big in brazil. two-thirds of the re

bob pisani standing by. the payment processors post right behind us, not doing is well today, bob. >> the good news is it got done and they i had # needed to get done, they needed to pay down debt. $16 b 16% below the midpoint. 18 to 20 was the price talk but they got it done. the bad news, it's dropped below 16, $15.86 now and that's happened a couple times during the day. i've been saying all day it's good to close above $16 that would indicate that the price was right. they're floating 160 million shares, that's the offering size, but look at this volume, 53 million. that's a little unusual. a typical rule of thumb would be on a good day of trading, active trails for an ipo you trade almost 100% of the flow, that would be 160 million shares. this is a big ipo, but 54 3 million shares very much on the light side for a big ipo. that indicates to me that the buying interest is very muted on this now. it has been trading at a narrow range, all anybody cares about did if it closes $16 or somewhere above that. m

bob pisani joins us from the floor of the stock exchange. hey there, bob. >> well, it started okay, mandy. we kind of gapped up in germany and in the u.s. let's take a look at the s&p 500. but that faded very, very fikly. we went into negative territory within ten minutes of the open and essentially other than a few moments have been negative all throughout the day. we are coming off the lows. there's a bit of good news. the markets midday, you want to blame it on something? a couple problems. germany started up 1% and ended down 1.5%. 2.5% range right near the bottom. the other problem was crude weakness. we were trading as high as $47, as low as $44, a wide range. breadth has been 2 to 1 declining to advancing. let's call it heavy volume on the first trading day of the fourth quarter. normally you buy the losers in the prior quarter. not today. materials were losers in the last quarter and they are right now. alcoa, cf industries, freeport, the usual names. and with oil bouncing around so much, energy has been on either side of positive or

bob pisani is tracking the action here at the new york stock exchange on this first day of the fourth quarter. what to take of it, bob? >> we started out great. gap up in the s&p. and then like germany, just sort of drifted lower throughout the day. and we've been coming back. we're almost positive on the dow jones industrial average. volume's on the heavy side. first day of the trading quarter, first trading day of the quarter. normally what you get after such a disastrous quarter you buy the winners on the first day. we're not getting that buying enthusiasm. alcoa, disastrous in the third gown. down 3% today. that's a disappointment. here's freeport mclelan. it is not going to make up for 50% drop in the markets. excuse me. energy stocks bouncing all today. mostly on the downside. exxon also had a terrible quarter isn't doing anything. to the downside. you're getting a little bit of movement in some of the refiners like vel democrats lero but not a lot. these are proxies for global growth. not a lot of buying interest here. honeywell is flat on the day. you would have thought that w

but bob pisani is back. we're black you're back to get ready for earnings this week. >> and we will get intel, too. i think what's important about this earnings season is we need to see a real pop in not only earnings but revenue. we are down about 5%, that's the projection for the third quarter on revenues and on earnings. normally we see a move up right now as we go into it, it's not happening and i think that's a little bit disconcerting. it will take a lot to get to flat, so revenue still not there, so we have a combination of no real revenue growth and we have 10.5% or so on some of the numbers that we're dealing with in terms of the margins, that's topping out as well. you have topping out on margins and slightly down revenue growth. going to be a rough situation. i do want to point out today when energy stocks were down they were down big in the afternoon. i don't know if you can put up the expiration or production stocks but names like murphy, cor, all those stocks that were up 5 or 6% last week were

i was talking with bob pisani about this. he said it's very much in demand.tion for ferrari, a little under $10 billion. and it's the issue of demand. sergio talked a little more about it and how they believe they can keep it growing. >> we need to grow before we try and supply it. and really destroy the brand. it's a very careful walk and a very, very tight relationship between us. >> they didn't stay up at $60. nobody's complaining at $56.27. >> if he doesn't have to wear a tie, i don't think we should either. cars and baseball, and a guy who knows and loves them both. c.j. wilson of the l.a. angels your guest next. >>> shares well-off the lows of the session. take a look at other biotech shares that are being lumped in. allergen issued a statement distancing themselves from valeant. more "power lunch" after this. pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be

come here, bob pisani, watch this.at happened this week, the dow, the s&p and the nasdaq. >> this looking like my cardiogram. >> you got a lot stronger as the week went on here. the nasdaq had the best week, up 1.1%, followed by the s&p and then the dow. oil this week, david darst was pointing this out, very volatile the last couple of weeks. down almost 5% for the week. here is the one i want to see you talk about quickly, look at the vix for the week. we are down 11% this week down to 15 right now. >> we are back to where we were in the early part of august before all that concern about china and china gdp over the weekend and a lot of people think it will be a 6 handle in front of it. >> you hope it will have a 6 handle. >> if anything less than that we will definitely have a problem. the market seems to be anticipating the high 6 os. first data, i said yesterday before the open everyone would be happy go first data close wd a 16 handle. 16.03, we are going into the close. remember, they priced yesterday $16. willia

it's a point bob pisani has been making all morning long.n terms of market conditions it has been calmer and the stock market has rallied over the last three weeks. what do you still need to see? >> i think the positive market backdrop is a good thing, but the ipo market itself if you look at the deals that have been trading in 2015, on average they're down about 2%. so if you're an investor and willing to invest in this segment, you're going to need to see some improvement in the ones that are already trading. we're starting to see a little bit of that, and we do know that over the last -- those that have been discounted so heavily are generally trading nicely above their ipo prices, so that's how we're working away this price reset that has to happen. >> that would be where the opportunity lice surely, quality companies that come to market but discount in order to do so. that's a win/win all around. >> generally it's the larger, more stable businesses that come out at attractive valuations in that type of market environment. that should be

. >> let's get to bob pisani. >> carl, slightly weak open, not surprising given what happened overseasgermany was week at the outset. they're still open, but mostly negative. mixed picture in asia. look at sectors. oil started to the down side, positive right now, but energy to the down side. energy, materials, industrials, this big three affected by global commodities and the global growth situation or the lack of global growth. tech and financials fractionally to the weak side. i want to concentrate on the revenues of johnson & johnson and the impact of the strong dollar. put up the currency impact, i want to show you something. reported revenues for johnson & johnson were down 7.4%. however -- that's in line with expectations. that was not a surprise. however, for our benefit -- thank you, johnson & johnson, they broke out what would have happened had they not had a weak dollar. the currency hit to johnson & johnson was 8.2% of revenue. in other words, if it was constant dollars compared to last year, 4x values, revenues would have been higher and it would have wiped out the negativ

bob pisani, we didn't get to everything this morning. >> i'll try to fill in the gaps a bit.d morning. a little bit of weakness overall. it's obvious why. look at the sectors. we have oil trading near the low end of its recent range. that's weighing on energy. the industrials are having problems because the industrial numbers have not been good today. that's really what's going on here. here's the problem. let's look at a few of them. i wanted to concentrate on the revenue numbers here. dupont came out, beat on the top line, revenues on the light side. cummins, beat on the top line, revenues notably light. paccar, revenues light. te textron, beat on the top line, revenues low. corning, top line good, revenues light. bottom line, okay. this is what i call a revenue recession. i'm sticking to my point here, you can look at some of the other ones coming out with issues here. so, look at where we're at now. we're at roughly 19 times forward earnings on the s&p 500 with revenues declining and margins near a record this is a problem. margins near a record high. you have to defend t

let's get the trading action from bob pisani. courtney reagan following the tech movers at nasdaq. bob, kick it off. >> hello, high letyler. the home builders some leadership. the home builder sentiment index. energy is a big laggard again. these exploration and production names all again heavily to the downside. we'll get ibm after the close. you know the problems for ibm. it's a basic long-term decline in their core franchises of services and software and the growth initiatives, the clouds and data analytics like watson and the security have been slow to ramp. the big issue is where guinea rometty can ramp these up fast enough. look at ibm versus the s&p 500. ibm down 17% since the close of 2011. that's the white line. and there's the s&p 500 on top. that's up almost 60%. look at that divergence. that's all you need to know about the inability to really grow from ibm. by the way, on a side note, the strong dollar is really hurting multinational companies. ibm gets 50% of revenues outside the united states. they came out and said revenues would be lower by 7% to 8% this quarter bec

. >> thanks very much, bob pisani. >> cat is up. >> caterpillar is up. >> november 13th drawing near. can look at a calendar and figure out how near it is. remember perrigo and mylan. november 13th is the day on which the tender will clothes and see whether mylan has succeeded in garners at least 50% of perrigo shares and can take over the company given the cash and stock offers. perrigo releases numbers an a plan for the future that includes what they say will be a 22% increase over the calendar year, 2015. eps guidance mid-point, in terms of where they are right now for guidance. they also tell us they are going to increase their buyback $2 billion is now going to be the buy back including a $500 million repurchase that would be completed before the end of 2015. another $1.5 billion behind. what they didn't tell us and what many people have been wondering about was, would they announce a deal? would they announce some sort of acquisition? the 23rd of october was the last day they could do that under the irish takeover laws, which they have been operating under with the big israeli t

. >> let's get to bob pisani on the floor with the dow 11 points. >> we were up modestly.a lot more. we were up 18 handles on the futures just a while ago when europe opened. let me show you germany. germany had a great gap up from yesterday. this is a two-day chart. it sort of slowly slid down. very orderly decline. germany has turned negative. great start, disappointing middle part of the day. in terms of sector, carl is right. energy is the leader here. consumer discretion and materials are strong. technology is lagging a little bit here. in the energy group, exploration, production are strong. the layoffs are continuing. chesapeake, late last night announced a 15% reduction in head count. they also amended their credit facility. the bottom line is they had maybe 5700 employees in mid 2013. with the most recent cuts, they will be down to 4,000 or so, quite significant job cuts going on in the emp group. you see chesapeake slightly to the down side right now. one of the big questions is what happens in october? it is true. it is traditionally the month where stocks botto

bob pisani is on the floor with more. >> interesting ones coming and a few postponed recently.ave to be careful when using the terminology withdrawn or postponed because it means different things. let me show you some ipos recently withdrawn and some that have been postponed. withdrawn is a very formal statement. it means the company went to the s.e.c. and said we're withdrawing our offer. it's called an rw, where for withdrawal. there have been a few high profile ones. and then there are companies that just postponed like albe alberts albertson's. they're not withdrawn, but not going public. terms have been filed, they will try to set prices. but it's not been withdrawn. and then there are ones out there like neiman marcus just delayed. they didn't announce any terms. we've been waiting for them do that. they're holding back on doing that. so a little bit careful on the terminology. i looked at renaissance, they keep track of the formally withdrawn, they're 48 this year and that would be looks like they could challenge the highest level since about 2012 which is consistent whe

let's get to bob pisani on the floor today. >> happy monday. small bounce on several sectors. flat open. biotechs having a nice move on the upside. sectors, taking a look. either side of positive or negative. not too directionally clear. china had a good overnight. europe started positive and drifted into negative territory. i've been away for a week. one thing obvious for me, watching it from afar, is the rally that we've had in the beaten up names. this is very typical, buy the losers for the start of the quarter, but it's noticeable -- first couple of weeks here. the worst performing sectors last quarter were energy and materials. the best performing sectors so far are energy and materials. industrials had a crummy quarter. people have been trying to figure out whether this is the right time to buy some commodity names. energy has had four rallies since december where people have tried to buy for several weeks and it's failed. it's failed for times. this will be the fifth time. i'm not saying it will fail. nobody seems to be touting the fundamentals. goldman had a very long

we want to get to bob pisani with an upgrade on allergan. >> they are still halted. they said, we are in discussions. normally, the way this works, the company would call the nyc and say all the news is out. you can open the stock. it is not open and it doesn't look like they are getting the okay to open. the only thing i can speculate happened right now is the company is not comfortable with the idea that all the news is actually out. that's what we have to find out, if there is any more news or anything else. right now, we are just waiting. back to you. >> maybe somebody forgot to make the phone call. >> dow is down 34. we will get stock trading with jim in a moment. "squawk on the street" will be right back. [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ >>> if ther

. >> let's get to bob pisani on the floor who has more on what's moving this morning. >> good morning, happy wednesday. important thing about today is we're seeing reversal of trends. the major indices right now, i'm glad to see this. recently transports and the small caps, the russell 2000 have been notably underperforming the rest of the market. the nasdaq 100 has been outperforming. at the open we saw the transports and the russell doing better. the nasdaq underperforming, reversing the trend more towards a bit of mean reversion. that's basically, i would say, now flat in the last ten minutes or so since the markets opened. we'll see how that does. bear in mind, transports and the russell have been underperforming recently. let's talk about revenue. i've been hitting on this throughout the earnings season. i want to point out something to you, who has been beating and missing on revenues. health care and tech have had some nice beats, industrials and materials have not. it's not just the strong dollar, that's my point, it's the economy and slower orders. is anyone getting better re

bob pisani on the new york stock exchange floor to explain. >> mom and pop crowd funding for startups. it's about to become a reality. think of it as a kick starter for nonpublic companies. joining us to discuss what this means for you, the ceo of crowdmedic. this sounds exciting. crowd funding for the masses. what it is all about? how do do you this? >> so up until this point, bob, only accredited investors could invest in private companies. in kick start, wount get any equity for it. hopefully tomorrow and the fcc approves title three of the act, every american will be on the company. >> so it's $200,000 a year in income. you had to have -- and now that's all going away. how do you get into this? how do you invest in these small start-up companies? there's these crowd funding portals, right? >> that's right. so in september of 2013, the sec implemented title two of the jobs act that allowed for companies to advertise their raises. so for two years we had very successful funding portals who have brokered dealers behind them allowing companies to raise their private capital. tomorrow