earnings are mixed after warning from caterpillar.arnings are up in spain after regional elections over the weekend. our road map will go like this, with the markets back to critical levels after friday's drubbing. the percentage of companies beating on revenue, 42%. county bulls regroup here? >> caterpillar posts a record quarter. >> michael soft launches windows 8 this week and so far the reviews kind of tough. it's been called baffling and confusing. google's new laptop gets glowing reviews. >> and bp is selling 50% stake in russian oil producer tnk to rasneft. how will it change the market landscape? >> the dow and the s&p closed below their 50-day moving averages friday. all three major indices suffering worst day in about four months. a lot of discussion about the percentage of companies beating on the top line. it's the minority. it's the minority report. >> we finely got there there, to a point where companies -- we always thought it would happen. we always thought during the slowdown we would finally have the triple whammy. e

i don't know. >> caterpillar?, yum. >> oh, absolutely. >> but do you want to have that -- i mean, you look at yum, 45% of earnings. you look at something like ford where a third of their unit production sales were from kmcha last month. >> i get that, but are you saying you would not want to bet on the chinese consumer? i mean, i get that industrial production may be slowing down there, but what about the consumer s consumer? they don't seem to be slowing down. >> i think this is the big is e issue. it's not that i'm concerned or not concerned. investors need to look at their portfolios, look at what they see are their domestic u.s. names and say how much of earnings are coming from china. if you're a china bull and you think it's cheap, i personally think china is cheap as a whole. then you might want to have exposure to that. if you're concerned about the hard landing and have seen what we've seen for the past few day, the investor needs to know how much yum is really coming from china versus how much caterpilla

the caterpillar ceo says yes.or john mccain is here. >> don't forget to watch the presidential debate here on cnbc where you could see some more china bashing. it gets under way at 7:00 p.m. eastern time right here on cnbc. o work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ >>> could it be the great burrito bust? remember last year chipotle was the s&p's best performing restaurant stock. >> let's look at this chart here. over the past three years chipotle returned about 170% but since the earnings disappointed late thursday, the stock plummeted down nearly 20% in just two trading sessions and now it is at a 20 month low right now. >> jim cramer just asked chipotle cfo abou

what did you think of the comments from the caterpillar reference to europe?s that impact the euro today? >> we're not seeing too much of a reaction. but i think what's important is that caterpillar is saying out loud what many other companies are thinking which, is you know, they're turning a little optimistic on the u.s. china's not a huge concern. they'll probably bottom, but europe remains a hot bed of uncertainty. and this is a big issue because european issues have been unwilling and ineffectively in ending europe's sovereign debt crisis. and as a result, caterpillar thinks the recessionary conditions in europe is going to last well into 2013. i think they're probably right, which is why they made the comments that they made today. >> when it comes to europe, i see through one basic idea at the moment. germany said it's all in, greece is staying in and they're going to put up the money somehow, some way, despite all the noise that we hear back and forth. and until we get some news that somehow germany's no longer in, everything moves forward. is that you

earnings news maker is caterpillar ceo, joining us at 8:00 eastern time. joe mentioned the markets and friday's tough finish to stocks. the dow dropping more than 200 points during the session. but the major indexes did hold on to small gains for the week. and check out the calendar. two day fmoc meeting beginning tomorrow. wednesday, new home sales. thursday, we get the weekly jobless claims, durable goods and pending home sales and friday consumer sentiment, so a huge week and it all wraps up with the first quarter read of third quarter gdp. that number will be watched closely. our squawk market master this hour is marc faber. he'll be joining us onset in just a moment. in fact i think i see him making his way out now. also politics are on the agenda today, as well. we have the third and final presentation debate set for tonight in florida. that final 90 minute showdown will focus on foreign policy. bob schieffer of cbs will be moderating. you can watch complete coverage right here on cnbc and of course the cnbc twicker will be live. right now let's get

earnings today, we had caterpillar. bottom line, they talked about 2013 being flat but the stock is stable here, sue. apparently the street wasn't too worried about that. $80 is where that stock bottomed around near. that's looking very stable. coal stocks are up as peabody energy did well. freeport macmoran, down but a good report from freeport. >>> let's bring in our guest today, our special guest, rob capito, president, founder and director at blackrock, the world's largest asset manager with $3.5 trillion under management. we'll talk about the markets and retirement. rob, it's graek great to have you here on "power lunch." welcome back. >> sue, great to be with you. you're a real professional. >> aw, thanks. i appreciate that. well, let's talk about the professional that you are, the money manager that you are. is the beginning of save for retirement week which is something near and dear to both my heart and ty's heart because so many people in this country are not saving for retirement or are not putting enough ris

caterpillar's profits are up 50% strong sales and the u.s..he rest of the world weaker than expected, and changed the opening bell. turn to the election. two weeks from tomorrow look at the latest polls. they are tied at 47. dead heat that this poll had president obama leading by 5, the go. his trend is towards romney. look at this for momentum. the gallup poll has romney pulling to a seven point lead. the latest daily tracking poll, and adams sunday. best case of the president is a tie. and the latest number, scott will be joined us with those early monday morning results. what are we looking for in tonight's debate? what do when tudor libya, iran or israel? read your comments in the next hour. facebook please. look at this. a warning on firewood courtesy of none other than the state of california. that is on organic would. if i am -- if only the cave men had known they were encountering division danger in their lives. this is the subject of my take in the next hour. a warning label on organic would. iran and libya will be major topics of the

here is a look at caterpillar right now. it is up about 1%. let's take a look at the broader market averages. the dow is down 13 points. the s&p is lower in the nasdaq squeezing out a gain of just over one point. back to you. dagen: thank you. president obama and mitt romney preparing to face off in the third and final presidential debate. the key swing state proves to be a close battle this year. the latest fox news poll shows romney surging and not leading the president. neil cavuto joins us from that very state. hey, neil. neil: hey, dagen. dagen: what will be the focus of the debate tonight? do you think romney will try to move back to, say, domestic issues? you can make it about the american economy and our debt. you can take the middle east and make it about energy supply and our country. neil: i definitely think the economy, he will try to wedge it in. he will constantly pound on the notion that our economic consequences of all this that and everything else have made us and our own security as a compromise did that is something he will

caterpillar is something -- chevron is a great name obviously, but caterpillar is something i think you look, there will be a recovery in the mining business, and i think that's shaping up for a huge 2013 in caterpillar. down around $80, $81, $82 a share where it's trading right now. i think you get a lot of bang for your buck and all you're betting on is there is at some point a recovery in the global mining picture. i think that's pretty easy. >> what about a recovery or pickup in the chinese economy? doesn't a lot of it come down to that? >> exactly. and i think if we are having a hard landing, scott, i think it's behind us. even the worst expectations for china, 7%, 7.5%, 8% growth, i think e sort of upside surprise, you hit the nail on the head. upside surprise out of china, caterpillar starts to take out $90 quickly. >> stephanie? >> jpmorgan, i thought the reaction on friday was ridiculo ridiculous. that quarter was very good. they beat earnings, beat revenues. mortgagings were very strong. you will see that as a common theme in the banks and we have already, and i think capital

good morning tim. > > good morning angie. > > talk about caterpillar.rnings are coming up on monday. is this stock a buy ahead of earnings or would you wait and see? > > i would probably be a little bit neutral here. certainly cat has had a bounce off that kind of $82.50 low level, hovering slightly above that, about 4 or 5% above that. so, i would be a buyer toward that $80 level. i think the slowdown in china will kind of mitigate any big upside here, and certainly just general slowing in the economy. but caterpillar is certainly trending at a decent valuation, so i like it, albeit at slightly lower levels. > > what are your thoughts on boeing, which also comes out with earnings next week? > > really almost the same kind of story there with boeing as well. certainly the recent rally we've seen in most stocks across the board is giving me a little bit of cause to be aggressive up here. i like boeing, again, probably about 2 or 3% lower than here. decent p/e yield on both these stocks, and decent valuations, but probably a little ahead of the game in my

nicole: caterpillar would be an example of that.robably three-5% more to go on the downside. >> on the s&p future, 1475 was really that support level. we decisively broke through it today. the vix has moved higher. that would indicate you have room. i think that if we get down to 1410-1400, that is where it will find some real support. nicole: are there any other sectors or anything else in particular? >> i think if people are looking to be conservative, they will go for these large-cap americana dividend paying stocks. there are safety in them. they know them. they are familiar. nicole: thank you for joining us, as always. >> it is always a pleasure. tracy: the americanus talking about i tell you and. ashley: president obama and mitt romney stepping into the ring tonight. both hoping to sway the undecided voters. are there any left? also looking to make an impact -- our very own neil cavuto will be anchoring fox business coverage of tonight's debate. joining us tonight from boca. i would imagine mr. romney has binders full of count

his foreign policy strategy this strategy of the international man of casey research is here and caterpillar considered an industrial economic bellweather cut its forecast for two thousand and twelve a second time this year it's the world's largest maker of construction and mining equipment warning the global economy has is slowing down faster than it had expected meanwhile japan's exports fell the most since the aftermath of the earthquake last year bloomberg reports so who will be hit hardest by this slowdown and how will it be felt will discuss plus let's rewind. what you could have heard there was then a i.g. c.e.o. edward liddy saying that a.i.g. made her arithmetic mistakes before was bailed out by taxpayers despite those mistakes that cost the entire financial system well now c.e.o. robert van motion seems to think a id's record is still glowing he deserves a thank you for his cronies at the fed and the treasury will talk about why let's get to today's capital account. well as a couple of data points in my headlines evidence economic outlook are gloomy and with an upcoming us election

for companies like caterpillar, it may not be. that's a fair point. about half of caterpillar's operating profits now come from mining equipment, which although directly not sold to china, it is sold into areas like australia and south america as a result of commodity prices. the lower commodity prices that we've seen because of china's slowdown has led to delays in miner's capital expenditure plans. >> stacey, is there anything you'd buy right now in the categories we've been talking about? >> i think there are a few companies that have big expos e exposure? europe like ralph lauren. but they don't have the exposure to the asian tourism. lastly, coach. it was really a self-inflicted couponing problem in their factory outlet. i think that's a stock to look at. certainly that's an underdog here. micha micha michael. >> explain what a couponing problem is. >> they took it away. >> sorry about that. they did. what coach did in their factory outlets, they took away coupe up -- coupons from their customers. they realized the factory outlet system is very d

magical works by eric carle carle, the very hungry caterpillar. he called me once. i was so happy i said you don't sound like a caterpillar of laugh and those who are slightly older a wonderful book called least purple plastic purse in. it is a great book. i recommend it to adults all but time. if it is in is write-up there. it is a phenomenal. i like to read children's books on airplanes. i was reading on a flight from los angeles and the man beside me gave me the strangest look. reading the "wall street journal" but he kept peeking at my book. [laughter] and would say this book could save your soul. [laughter] instead pineapple got horrible quanex three years. i am not opposed to phonics. i encourage teachers today to use it selectively in instances where they need it. but these books are created with crazy people in this country there is a woman in arizona there are strange people there. i will be there in three days. there is a woman in arizona but to speak about the homeless he comes up to me at the head as if there was a secret and says phonics. [laughter] i c

we can verify that with caterpillar.ing that has cost the jobs here is why we have companies attacking clean coal and not allow us to go in and act as it. so caterpillar cannot build the big trucks this across the world. >> i would turn to maytag. not long after nafta passed, 1700 jobs went to mexico. that company received millions of dollars in taxpayer funds and move the jobs over to mexico. i talked to somebody like they've lost his job there. because the city was so devastated, he had to move away from the community to find work. >> next question directed first year cheri bustos. >> republicans have opposed cutting federal money for public broadcasting. do you favor eliminating the superb pitching? >> i cannot favor eliminating that. -- do you favor eliminating that? >> i am not in favor of eliminating that. if we can look at that example, wvik -- it is the only radio station in that region that covers news. we are fortunate to have alex over here working and covering news but that would go away under a proposal like

let's stick with caterpillar as an example.y say 1,000 shares every time the stock loses a point. each time cat goes lower, you buy more. that is the way institutions trade. the essence of strict scales you buy in the same increments, every time cat goes down a point or three points or whatever size decline, you purchase the same amount of stock. using strict scales smart and responsible. sometimes i have a problem with it. that's why i like to use wide scales. especially a volatile cyclical stock. the trick of wide scales you buy larger and larger positions as the stock goes lower. you know what? i used to think of it as a pyramid of buying. if the stock lost a point, i would put on 1,000 shares, another point, 1,500, and when you sell it so low you can hardly believe it, you can double down. do you see what i mean? it's about a pyramid structure about buying the best investors i have ever seen all use pyramid style. they don't talk about it. the lower the stock goes, the larger your buys become. the great thing about wide sca

take caterpillar. it reported a hideous quarter because it was the worst of times in china, the worst of times in china. not the worst, but certainly in america. on top of, that cat's management lost its optimism and started it, well, an attitude of resignation. next year will be better. that's the attitude that often precedes disappointing seasons in every sport, as well as disappointing numbers in the sport we play in. this was not kathmandu. it was cat-no-do. so what happens? the stock looks horrible in the premarket that time this when lobotomied players play out. if you only look at where the stack went out today, you would never have guessed caterpillar reported a truly horrific quarter. >> the house of pain! >> that's the power of a company lowering expectations to realistic levels that we all figure could be beaten after its stock had been laid to waste. see, caterpillar has quarter after quarter chosen to give us a rose-colored glasses scenario. but the market wasn't buying it. which is why th

investors are buying into the short term results. >> one of the big stories of the week caterpillar a drop again today. >> after disappointing earnings on monday today we are seeing sales forecast for 2013 that are somewhere three days. they are selling assets. not good enough. >> will the pops and drops never end? they drop. >> here is a stock trading near 52 week highs just last week. they missed this quarter and guided down for the balance of the year. some of the multinationals with heavy exposure. >> whirlpool was a pop today. up 8%. >> if you are looking for a reason to be bullish in the market. how about whirlpool? they raise the guidance. this name continues to perform and down south of the border in south america strong numbers coming from there where you saw the tax and the currency. >> a pop for the options desk. united parcels services. >> in general i thought they were pretty mediocre at best. i think people are hanging their hat on the asian export number and that is why a lot of people might have been short. see the stock pop a little bit. i think this stock is a little

companies like caterpillar competing heads up in russia. what does congress do?fter the election. the president really didn't get involved in that issue the way at least some in congress hoped he would. there are plenty of blame to go around. we just need to stop looking, you know, china is not in charge of our tax policy. china is not in charge of our regulatory policy. so, campaign is always easy to look somewhere else but i think we ought to look at home. >> we put up, maybe put back up the manufacturing numbers. we had a pretty good number yesterday that came out compared to what it had been. still manufacturing is taking it on the chin in this recession unlike any in my lifetime. he used to work for a manufacturing organization. >> right. david: what is the number one problem for manufacturers today? >> i think the number one problem is in this country, the lack of a strategy and that encompasses more than just the guy who has the lant to make the widget. what are we doing on our infrastructure? lagging behind there. so much opportunity, so much potential. y

we can verify that with caterpillar.y thing that has cost the jobs here is why we have companies attacking clean coal and not allow us to go in and act as it. so caterpillar cannot build the big trucks this across the world. >> i would turn to maytag. not long after nafta passed, 1700 jobs went to mexico. that company received millions of dollars in taxpayer funds and move the jobs over to mexico. i talked to somebody like they've lost his job there. because the city was so devastated, he had to move away from the community to find work. >> next question directed first year cheri bustos. >> republicans have opposed cutting federal money for public broadcasting. do you favor eliminating the superb pitching? >> i cannot favor eliminating that. -- do you favor eliminating that? >> i am not in favor of eliminating that. if we can look at that example, wvik -- it is the only radio station in that region that covers news. we are fortunate to have alex over here working and covering news but that would go away under a proposal

nicole: caterpillars were 15 negative dow points and down 2% for caterpillar.e talking about sales numbers they are seeing in the machinery sales growth slowing in all regions. if the company comes out and says that that is not great news they're trying to do well with north america and they see growth globally, but dwindling. stuart: you waat to see the picture again? nicole: everybody watching the show wants to see the picture again. bring up the picture from 1987, stuart varney. you look great. [talking over each other] stuart: where were you at age 7? >> i was in high school playing soccer, basketball. i was not concerned like -- everyone is reminiscing. stuart: monday morning i want you to bring this high school picture. got to move on. let's get back to the big tech companies that are taking a hit. to time to buy because it is a huge hit? shod the lani with money morning, individual stocks. i will start with microsoft. profits down, sales down, microsoft at 29. would you touch it with the ten football? >> yes i would. it has a great dividends. dividend is

do you feel okay to buy a caterpillar? >> i want to hear from caterpillar.ant to hear the story, what they're saying. regarding the economy there, but to timmy's point, i think the most important thing is, you have a currency in china that's at a 19 year high. that's going to certainly bring 234r0es of capital into the country. >> buck up, camper, it's okay, the yankees are losing, it's not the end of the world. >> i know. >> the euro is falling today despite a relatively successful bond option in spain. european fears easing? should you remain cautious. >> a great training day. we have something going on right now. it's the same old stuff we got. spain work, doing what they're trying to do. grease negotiating. it's not about euro trading today, it was a great trader's market. we had a 1391 strike. google came out and it pierced through the lows of the day. we have the s&p and euro back to the 2009, 2010 correlation. it's a short term trader's market. i like the euro for a down side continuation for the s&p. >> that's been a tough trade to figure out of late

procter and gamble down today, but up for the week, and caterpillar.look at some of the losers. dupont. disappointing earnings. 3m. actually millennial media, cisco systems as well up today, but down for the week. basically in sympathy with some of the other tech losers. take a look at the s&p 500, an interesting hodgepodge. variants, whirlpool, and a sterner surging 13%. those are your weekly winners, but that gown hanging on to the narrowest of gains right now. it looks like the worst week about five months' time for the dow jones. liz: of 3m is about one-quarter of 1%. i'm sure millennium media is really happy. they are actually doing pretty well. >> reporter: there on the radar. liz: good for them. all right. according to eric zorn, the markets have rallied more than they should deserve to be, and we still expect a slight pullback. how do you protect your portfolio in such a versatile market? back with three alternative picks for your portfolio, and these are funds. what i find interesting, some of them have names that we all know, and others are c

. >> yesterday, it was caterpillar, united technologies and should be worried, frankly. >> i guess. >know and rights now. cheryl: that's a great point they're making we're not getting the type of quarterly reports. dennis: we've got a guest coming you. even quarters beyond are of a concern. cheryl: i'm cheryl casone. dennis: i'm dennis kneale, an ugly selloff on the earnings, and live and plus, we have a guest who says, blame washington. cheryl: charlie gasparino reporting that mary schaprio is looking to leave her post next month and she joins us next and we'll ask her about her plan. dennis: size matters, they say and just expected roll out of the apple's i-mad mini, whether it cannibalize the higher ipad line. cheryl: and stocks and commodities selling off this hour and the market is hour and 15 minutes. and jeff flock standing by at the cme. first is nicole petallides standing on the floor of the new york stock exchange. nicole? >> cheryl and dennis, traders on wall street continue to watch the markets selling off and breaking through the support levels and a bearish breakdown as

we can verify that with caterpillar.he only thing costing jobs is when we have companies attacking clean coal and not allowing us to access -- caterpillar cannot build the trucks they sell across the world. >> i think i would turn to maytag. 1700 jobs went over to mexico. that company received tens of millions of dollars in taxpayer funds and move to the jobs to mexico. i spoke to somebody like dave lost his job. he had to move away from the community in order to find work. those are the kind of people i talk to about how hurtful nafta has been. >> herb trix, your next, directed to cheri bustos. >> the corp. for a public broadcasting, it amounts to four hundred $40 million per year. one 12th of 1% of the budget. you favor eliminating this appropriation? >> i do not favor eliminating that. in fact, i am a supporter of public television and public radio. i am a donor to public radio and i am pleased to say i used to be on the board of directors of the rock island based radio station, herb, where you are employed. if we can

caterpillar was -- is it still up today? i'm not sure. liz: yeah, it is up. but let me then take it to you here, do you like just u.s. companies? or do you feel all governments of first world nations so to speak are pretty much overleveraged? >> still bulls on the emerging market. we think europe is really the question mark. we listen. we read. we talk to people. can the u.s. and can the emerging markets do well in the face of a bad europe? we tend to think not. and that's why we're a little bit more bearish on the entire market because we think europe is really going to be a drag. liz: see i can do this because ron and i go way back. we're good pals here. let me push you on thiss >> go ahead. >> dax, germany's market up 23% year over year. here's another one, the cac in france up 10% not nearly as robust. but the hang seng index in hong kong up 19%. you are telling me that developed countries cannot do well? >> what i'm saying is look at every single federal bank in the world for the first time they are all coordinated. they all flooded the market with cash.

do you agree with caterpillar ceo that it's rhetoric around china? >> well, doug is a great partner of ours and we work together very closely. i do agree with what he says. this opportunity that our country and the opportunity has to benefit from global growth and it's being led by china now is critically important. i understand the need to deal with china so that free trade is also fair trade but i think it's really important that we find ways to work together to deal with the issues that we're facing. >> what do you think in terms of the economics? the landscape right now. i know this has been an engine of growth for your business and engine of growth for the world. we know there's a slowdown. what do you see on the ground from business today? >> there's a slowdown. chinese government took steps last year to reign in inflation and that appears to be having the desired effect. china continues to consume copper in infrastructure projects and they're taking steps to stimulate their economy and we're successful in replacing our copper concentrates and

us said to him you don't sound like a caterpillar. and other books for children a little older, slightly older for advanced in reading, a wonderful book called purple plastic purse. i recommend it to adults over time. it is right up there with a fellow and king lear. marvelous book. i read children's books on airplanes. on a flight to los angeles from boston. and gave me the strangest looks. he was reading the wall street journal. i noticed he kept peeking at my book to trade with him and this book could save your soul. in stead pineapple got these horrible tictac phonics readers. i am not opposed to phonics. i used to teach -- i encourage teachers to use phonics selectively for specific children in instances where they need it -- these book -- these are the books, the kind of folks created -- sort of crazy people in this country about phonics. there is a woman in arizona -- a lot of strange people in arizona. i am going to be there in three days so i hope they don't see the tape of this but there is a woman in arizona, every time i s

they got the caterpillar working. let's take you back to the beaches where we can see the and of the ocean city pier, no longer there and sad to see it go but it his doing to be a big rebuild. man, what a storm, just tore the beach up. rehoboth, wart on the boardwalk -- water on the boardwalk. ocean city took a bigger hit with that south facing coastline as opposed to the east facing coastline. kent island, water levels up. we have a high tide to get through at 7. we're watching the harbor as well, of course, to see what happens. overthe next two days we're watching the susquehanna. that water flow has picked up and it's looking brown. 30s, 40s. winds have turned light, southwesterly. that's a cold wind wrapping around the center of sandy. it will continue to pull in that cold air and tough to get out of the 40s thanks to that raparound -- wraparound cold air. we'll get a couple of spitting showers over the next couple of days and the whole thing will clear out thursday and friday and better weather for the weekend. w

they just reported that--now they're only of 17 and caterpillar is down 12%. this would should bring some new insight on the help of the economy. will have more on the markets with rob black. >> and rumor has it that several products may be revealed from apple. the ceo stated that this is what the public has been talking about. this is due to the new bypass.ipad and a new mac m. mini. >> there is cheaper gas. last take a look at prices that we are seeing this morning in san francisco. an average price of gas is for $4.51. it is even cheaper at 440. it is even cheaper and-- $4.40. >> more on that in a minute. >> good morning and welcome back. majority of the bay area has spotty showers. this is where we are seeing some of the heaviest rain. it is about a 10th of an inch an hour. we are seeing a 10th of an inch just west of the tunnel. it just depends on where you are located. walnut creek just east of concord. this is closer to have--a couple of moments ago i did see a can expect slick road ways. a get a lot of people have forgot how to run dry in went whether.

we saw that in the caterpillar numbers. you saw that in the federal express numbers. some people think that's cyclical. i think there's prob a m secular component to it. >> this is a very important point you're making because china's growth has been driven by the export economy. you're saying that it's in trouble, it's broken. >> i'm not saying it's broken. i'm saying there's a transition going on towards consumption exporting to europe and real estate are no longer going to be their drivers nap will probably create more volatility than we've had in the past. >> how easy is it to expect this transition? you're buying in the consumer space. >> yes, and you have the transition of the government. one of the other big messages we picked up over there, particularly in i understondia, emerging market central banks, they're very concerned about what the traditional bank of england, fed, ecb are doing with monetary policy. the fed is now at the extreme. we've tied our monetary policy to unemployment rates. the concern is that's going to bleed into inflation in their markets.

. >> think what we had coming into it we had fedex, we had caterpillar, intel a couple of weeks ago, all the big boys across a couple important sectors told us. i agree with pete. you pick your pockets. look at financials that is one of the places that analysts third quarter up 21% eps growth, fourth quarter, 32, 33. again, as we are talking about five-year highs on the s & p, financials still roughly 60% below where we were. you look at global growth going into this earnings season, everybody knows where it's at. world bank downgraded global growth yet again today, china back from their golden week holiday with a thud. people were expecting a lot of either policy-backed -- backing a market that's been lethargic. europe, industrial production out of germany today, terrible. we know what we are getting. we do need earnings here, no ways we can take new highs out until we see the companies are making money. >> you look at where we are expecting to see the earnings, consumer discretionary stands out, 7.8 growth expected in the third quarter. the question here do the stocks already refle

hard-meeting news from upon united states -- hard- hitting news from the united states, google, caterpillar, the world's largest tractor and construction-machinery maker. they had a record profit in the third quarter, but they are looking more pessimistically ahead. that affected the trading here. especially because there are more company reports expected later in the week, for example, from daimler-benz and volkswagen. >> we will stay in frankfurt for closer look at the numbers. the dax finished monday down by 7/10 of 1%. euro stoxx 50 also sliding, going into the end of monday, down by 4/10 of 1%. the dow is off by 6/101%, but the euro is looking up, trading at 1.3046. >> an italian court has sentenced a group of scientists and one government official to six years in prison for failing to provide adequate warnings prior to a deadly earthquake in 2009. >> the judges found the seven defendants guilty of multiple manslaughter in connection with the earthquake that killed more than 300 people in the city of l'aquila. the defendants were members of an advisory committee which met in l'awuila j

earnings continue and they are out from caterpillar and dupont and at&t and merck.r romney and president obama set to discuss foreign policy of the on tuesday another apple announce the is expected. and on friday, we'll get the first reading of the third quarter gross domestic product. microsoft is releasing windows 8 expected to be a radical redesign of the operating system, that's this friday as well. last week we brought my conversation with matt damon and gary white, co-founders of water.org, making clean water accessible to the free world. here's what's new in damon's day job and how he's going behind the candleabra. >> i saw the librace clip. >> it went really well and it will came out in may on hbo. >> you play his lover? >> yes, i've got to wear clothes i never have worn. i've done seven movies with steven and i'm enormously proud. >> he plays lee libberace's companion who filed a suit against the singer in 1982. >> did you have to have love scenes? >> oh, yeah. >> you look great in it. the shots i saw you look great. >> i had good wigs. >> sign this lease a

a company like caterpillar, they're down 1%. may want sound like the end of the world. ibm down 9%.ol with europe, middle east combined, down 19%. kimberly clark which says it's going to stop selling or producing diapers, ford said they're going to cut 18% of their european capacity and 5,700 jobs as well. if ythat's lay-offs upwards of 10,000 to 11,000 across europe. >> and these are european workers. >> and it's bad for these companies for the u.s. multinationals but it's much worse for europe. >> is it compounding the european woes? >> of course because where did the woes ultimately start, if you take a country like spain, portugal or greece. it's about competitiveness. debt-to-gdp ratio has two factors. when the gdp is shrinking, that's when the debt starts to increase. greece has gone from 180% to 120% debt-to-gdp ratio. >> because it can't possibly support the debt story. >> exactly. >> as you look around, whether it's britain or the continent, is there any hope? are there any positive signs? >> just today there's actually several. just today we had the uk report that its econ

. >> significant funding from microloans came from pepsico, caterpillar and mastercard. >> it's gettingof that down per person helped. per customer served. >> take pepsico for instance. they gave us last year, $8 million grant to really scale up water credit. we find that cost per person reached with that toilet or water connection dropped from 36 to $24 per person in our first, you know, effort with the pepsico foundation. they reupped at a higher level and now we got that per person cost down in this next grant to $ $10. we can bring it down. they can give us more bang for the buck. i think that really resinates. >> once people start seeing the positive effects, it changes their behavior and perception of these problems. problems like pushing the boulder up the mountain, you say wait, we can beat this. >> water is life and the role of a lifetime for one of hollywood's most famous stars. >> we probably don't know anybody who has been thirsty. i have to remind myself, this is an every day reality for a lot of people. it's just not something you ever are reminded of here because we, you

caterpillar, diversified machinery company. monroe muffler, a terrific auto related play.ant, we got auto, we got machinery, we got housing, and we got gold. hey, listen, that is picture-perfect, doc watson. well-played. >> hallelujah! >> let's go to lorraine in minnesota. lorraine? >> caller: yes, thank you for taking my call, mr. cramer. have i american mobile, amx, hickman, hek, eli lilly, hewlett-packard, hpq, visa, v. now, am i diversified enough? [ buzzer ] >> let's check it out. visa, one of my hot stocks for the end of the quarter, end of year. eli lilly, what a fantastic stock. we recommended it a while ago. goldman just woke up to the idea it's good. hp, one of the worst stocks i've ever seen, but it's a technology play. heckman. and technology involving finance, real technology, and drug. technology, drug, finance, oil, tech, a telco. >> that was easy. >> hallelujah. >> janet in my home state of new jersey. >> caller: hi, jim. my brother and i watch you all the time. >> thank you. >> caller: a good boo-yah to you. my stocks are eaton, etn, verizon, vz, mcdonald'

listen to what companies like caterpillar and ford are saying.y and laying off workers in the european plant. that mr. president or governor romney should be getting your attention. europe matters more than china right now. defend your continent. >> ali velshi told us nothing that we didn't already know. well done, ali velshi. the fact why the candidates aren't talking about china or europe is simple. they can't do anything about it. europe is a trading block big if not bigger than the united states. the united states is shout all about it, but there's they can really do about the european sovereign debt crisis other than worry about it. china, however, is a long-term running saw. you have got a change of government this year. you have got an economy that is slowing but is not going to crash. you have a rising middle class. you have a more important economy in the longer term because it's growing faster. that is why immediately you need to worry about europe. longer term, it's china that is the big worrying saw. as for ali velshi, maybe he needs

more than 150 s and p companies weigh in with quarterly reports including apple, caterpillar and at&t. there will also be a federal reserve policy on investors monies. also, third quarter gdp gets updated and some experts say the housing industry could push growth up 2% which could have an impact on the elections. >>> wheeling and dealing, bp is going to buy most of its business in russia for cash and stock. >>> good news for drivers at home. the price of regular gas has dropped 8.5 cents over the past two weeks to an average of $3.75. >>> after sending this cryptic invitation teasing we've got a little more to show you, apple is expected to unveil a mini ipad tomorrow. >>> not to be outdone, microsoft will release its touchscreen friendly windows 8 operating system which has radical changes in store. they will debut a new online music service and its very first tablet. >>> check it this out. forget using your fingers. you may be able to control your mobile device with your eyes. the company called itribe hopes to have it on the market in 2013. >>> well, some parents might want to hav

but the dow and s&p are lower after we got earnings from caterpillar this morning. caterpillar, we knew, was going to be weak. they warned us about that as recently as a month ago. this morning, the revenue number came in light and they lowered their guidance for 2013 once again. that's the big concern. we spoke with the ceo, doug observ observ observ observer hom. when you start looking at what's happening in the rest of -- in europe, that's the biggest concern. he does say that europe -- the u.s. is going to be okay. china is going to be okay. europe is still the big problem zone. and he pointed out that if we go over the fiscal cliff, well, then all bets are off. so we're hoping for some sort of solution to that. in the meantime, it's wait and see for the election, wait and see for the january fiscal cliff, as well. >> all right. becky quick, thank you much. >>> next, from iran to libya, to cuba, taking a deep dive into the foreign policy plate. "the daily rundown" will be back in 30 seconds. >>> now a deep divinto the foreign affairs challenges. we begin with ir