our own david faber broke the story of the loss today. david, good to see you. the unbelievable scoop. what do you make of mike lynch's comments? he's throwing it back at hp. >> you know, interesting. glad you had him on. there are two sides to this. it's good to have heard from mr. lynch. certainly as you pointed out his reputation is one that will need mending, it would seem. one only knows what will happen given this is both what the s.e.c. and uk's serious fraud office in terms of their investigation having taken what hp gave them. as for his contention, you know, what i have a hard time understanding is why hp would do this other than that it fully believes that it is correct in its assumptions about the various things it alleges here. there is nothing to have been gained by putting this forward in any way, shape or form other than they felt it was the right thing to do after a seven-month investigation acting on a tip from an insider at autonomy. someone fairly senior but only spoke out after mr. lynch exited hp late spring. we'll see. he didn't answer spe

david faber says it's fraud.he brought the story to us first at 8:30 and he will have meg whitman joining him on "squawk on the street" later this morning. that dow component down by 10.9%. we'll see where it continues to trade. we'll take a quick break. when we come back caesar's gary loveman takes a gamble on "squawk." stick around. , and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 c250 for $349 a month at your local mercedes-benz dealer. can i stil

. >>> david faber breaking a huge story on "squawk box."hewlett-packard admitting that a british company called auto any brought last year blind its finances that resulted in a massive write-down and the shares, you see them now, down 11 1/2% at $11777. david faber now with more from new york city. david? >> that's tyler. hewlett-packard reporting earnings this morning, that was not the focus for investors, the company alleging it was defrauded by autonomy to the tune of $5.3 billion when it bought that company in october of 2011 for $11.1 billion. that 5.3 part of an overall part of an 8.8 billion write-down related to that autonomy acquisition. certainly not a good one. now you it was last may that an insider, a senior insider from autonomy, spoke up, essential lay whistleblower inside hp and said, hey, you know what, now that management has gone,ing me whitman just fired the management of autonomy, now they are gone, i want to alert you to some accounting improprieties, revenue recognition issues and an investigation ensued. what did the

brian is off today but we have david faber sitting in the chair. thank you very much. >>> let's get straight to nbc's jim maceda live in cairo. jim, tell us the very latest on this cease-fire which we believe is kicking off right now. >> reporter: right. right now. 9:00 p.m. my time, 2:00 p.m. eastern on this day eight of the conflict. u.s. secretary of state hillary clinton announced about an hour ago that a truce had been reached between israel and hamas. so starting now, israel stops all military action in gaza, including those targeted killings. palestinians, on the other hand, will stop launching rockets on israel and border attacks on israeli troops. but there is no signed agreement. this is very important. instead, israel and hamas have agreed on an understanding, a kind of exchange of quiet for quiet, if you will, which will be the first phase. that will be followed by a second phase of intense negotiations. those will be anchored and supported and guaranteed by egypt and the united states to try to resolve the key demands on both sides. th

i'm carl quintanilla with melissa lee, jim cramer, david faber. as you can see once again, down triple digits. a lot of news out of europe today as attention turns to greece and parliamentary vote there regarding austerity measures later on. democrats gaining seats in the senate. republicans maintaining control of the house. >> the issues that were a tossup are now certainties. we'll get cramer's take on how to align your portfolio right now. >> ecb president saying the euro crisis is hitting europe's strongest country. >> we're on storm watch in the northeast once again. airlines canceling flights with american airlines shutting down in new york this afternoon. >> of course we begin with last night's election. the president winning a second term defeating gop challenger mitt romney. it was battleground state ohio that put the president over the top. it was status quo election. democrats keeping control of the senate. republicans, the house. in his victory speech, the president outlined some of what he hopes to accomplish early in his next term. >

the story broken here on cnbc by david faber earlier. >> this has been a really newsy day for a holiday shortened week. i'm bill griffeth. let's show you the markets, how they've been trading here. it will be pretty evident when ben baernanke made that comment that the fed doesn't have the tools to deal with the economy should we go off the fiscal cliff. down it went. we were down 94 points on the dow on the low of the session. now off that low, down 39 at 12,756. nasdaq's lower. apple is also lower today after that monster 7% plus rally yesterday. it's down about a percent right now. the nasdaq down 8-plus points. the s&p is down 3 at 1383. >> not a lot of news from the bernanke lunch except this. the federal chairman warning that if the economy does go off the fiscal cliff, he can't help. he has no more tools. take a listen. >> we can certainly have a meaningful contribution to supporting recovery, but in particular, in the worst case scenario where the economy goes off the broad fiscal cliff, the largest fiscal cliff, which according to cbo and to our own analysis would throw the eco

david faber joins us with john donahoe.e'll find out how mobile is changing the way merchants approach the holiday season. >> wait until you hear from priceline's president and ceo, jeffrey boyd, the day after the company announced it's buying kayak software for 29% premium. a cnbc exclusive ahead. >>> it looks like we have the beginning of what could be a turn-around in the markets. that happened in the last 15 minutes or so. technology, financials and energy turn into the green. consumer discretionary, still await on overall market, down 0.4% with retailers and home markets a drag. so far all arrows up so far. >> biggest names in tech are gathering in napa valley. jpmorgan's annual ceo technology summit. david faber is there with an exclusive interview of the ebay ceo. >> john donahoe is here with us. we can still see our breath. it's cold in the napa valley but nice to see the sun coming up. nice to have you here. not far from san jose, where headquarters is. many credit you with the significant turn-around, particularly

i'm melissa lee with carl quintanilla, jim cramer and david faber live from the new york stock exchange. let's get straight to our top story. a bombshell involving hewlett packard sending stocks down sharply. david broke the story. he has details. >> hewlett packard out with quarterly earnings this morning but the real story is part of that earnings release allegation the company was the victim of a massive fraud when i purchased a u.k. company, $11.1 billion deal that closed in october of last year. hp has taken 8.8 billion write-down on autonomy and 5 billion due to serious improprieties and misrepresentations and disclosure failures that occurred prior to its purchase by hewlett packard. in other words, it's fraud. after autonomy's founder and ceo michael lynch was fired by meg whitman, sources close to the company tell me a senior executive from autonomy came forward with evidence of widespread accounting misrepresentations that occurred before it was bought by hp. hp began an investigation and concluded that these accounting improprieties inflated the value by $5.3 billion. the ceo

thank you very much, david faber here. a lot more on the general markets. the dow almost recovering its losses. back in a minute. well, in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place. we supported the marshall plan that helped europe regain its strength. and pioneered the atm, so you can get cash when you want it. it's been our privilege to back ideas like these, and the leaders behind them. so why should our anniversary matter to you? because for 200 years, we've been helping people and their ideas move from ambition to achievement. and the next great idea could be yours. ♪ we create easy to use, powerful trading tools for all. look at these streaming charts! they're totally customizable and they let you visualize what might happen next. that's genius! strategies, chains, positions. we put 'em all

david faber is joining us with a breaking deal and some news. david, what have you got? morning. you yeah, we got a deal in the financial services industry. jeffries, the investment bank with about 700 invest him ba-mv bankers, getting bought by leucadia national. it will exchange 8.1 of its shares for each of jeffries. $17.60 a share for each jeffries share. the man who built jeffries will actually become the ceo of the combination before it's an all stock deal. and mr. hanler will be running the combination itself. roughly about 23 about% premium to jeffrey's closing price onfully. not friday. not a premium to its 52 week high. it's had its share of challenges, but having a very strong rear. leucadia for its part, said to be sort of like a mini berkshire hathaway. a large investment company with stakes in mortgage services and things of that nature. it will be a much larger company hcht hanler will be running. but an important deal to jeffries. can't imagine there will be too much opposition given that leucadia owns 28.6 of jeffries and the two gentlemen who have been

>> i was talking to my friend mike faber -- i mean david faber. mike faber's the guy from homeland. he said jimmy, have you checked out the tesla? my take is tesla didn't go down because romney lost but i need earnings. i've got enough problems with the companies that have big earnings, big dividends, i don't need to go into the speculative mode right now. please be careful. with the fiscal cliff looming the early bird is not catching the worm right now. it's just getting crushed. okay? the fiscal clifford, yes -- fiscal clifford, the big red ink dog is going to crush the early birds. it's too late to sell for most stocks already, though. well, let's say for a lot of them. and it's right to start legging in on the ones that worked last time. recession-resistant and the already back to higher yield stocks. "mad money" will be right back. >> announcer: coming up, party planning. >> surprise! >> announcer: when quarterly reports take the street by surprise, investors can be the ones receiving gifts. tonight, cramer's celebrating two retailers that left the market awestruck after earnin

david faber, back to you. >> thank you very much, rick santelli.t to update a story we brought you a couple weeks back on the potential sale of advanced auto parts. the stock had risen fairly sharply after we first reported that the company had hired an investment bank to potentially sell itself and the most likely audience for that sale would be private equity. it was early in process when we reported it. it's still relatively early in the process. people familiar with a potential transaction and close to the talks tell me could still be a couple months before we see a potential deal. as you see, of course, advanced auto parts about $6 billion company. that being said, what i'm hearing is about three to four private equity firms are actively engaged in due diligence and investigating a likely bid. those suspects would be leonard green and so forth. a deal could require as muches a $2 billion equity check. 5.5 to 6 times leverage. the company still when you get up there with a premium on where it is right now, that's a big number. that could requir

i'm going to throw it to you, first of all, david faber. what did whitman have to say? >> of course, we learned this morning when we got earnings from hp, mandy, that the company was taking a $5.3 billion writedown as a result of what it called misrepresentation and the accounting of economiy, bart of an 8.8 billion write-down. she was not the ceo at the time, though she was on the board of directors. as i have been reporting much of the day and confirmed by the company since we first reported it, they got wind of potential improprieties from a senior executive at the autonomy unit back in may. commenced an investigation. here we are seven months later, preve preve presented a problem why this was the case. they had concerns before they were bought. here is what whitman had to say. >> after we announced the acquisition, a number of blogs that came to the fore about potential issues at autonomy. the former management team ran that to ground. came up with the conclusion there was nothing there often in a cutting-edge company like autoly, if will be rumors like this, but t

as he told cnbc's david faber -- >> i had really more money than a person could reasonably be expectedspend, assuming you fight hard and worked at it eight hours a day. >> now, get this, when the crisis hit mcafee's investments crashed. his $100 million became $4 million. he moved to belize to start new companies in transportation and pharmaceuticals. he told me in 2010 that belize was, quote, a dream country from entrepreneurs since there are really no regulations. police searched his compound and found multiple firearms and unlicensed pharmaceuticals. mcafee said the search was political. that may be the case with this latest situation. we'll see where this story takes us next. >> why is he being questioned in the murder of this person in belize? >> we don't know. what we do know is this person who was murdered may have been his neighbor. there was a previous -- some kind of charge or harassment allegation by this neighbor against mcafee. they did seem to have, according to police, a tense relationship leading up to this murder. that's all we know at this point. >> we'll keep followi

our david faber reporting earlier today that advanced auto parts was hiring blackstone to look into a potential sale of the company. hurricane sandy, there's been speculation for a week on these building companies. all of them up again today. absolutely remarkable. finally, maria, talk about great timing. guess who's going public tonight? restoration hardware. we need them. maria, it's a very, very small offering. i hear a little bit of a pop tomorrow. i'll be all over that in the morning. >> that's a great company. thanks very much, bob. appreciate it. we'll see you a little later. don't go anywhere. we're all over this big rally and much more on this busy edition of the "closing bell." stay with us. >>> coming up, markets on the move. good economic numbers, but will it carry over if the october jobs report brings bad news? we break it all down straight ahead. >>> plus, brewing profits. maria talks exclusively with starbucks ceo howard schultz about earnings and the effect sandy may have had on his company's supply chain. >>> and insuring stability. aig chief robert benmosche joins m

here's what he told cnbc's david faber in 2009. >> my life has turned around 180 degrees down here. mentioned the freedom here. there are virtually no regulations on business. and that can be a bad thing or a good thing. for me, it's a good thing, because i think i have a heart and a social conscience. >> mcafee has not round calls or e-mails, we will be sure, sue, to keep you updated on this very bizarre story. back to you, tyler. >> indeed. >> l i will take it sue. >>> we talk about the fiscal cliff here at cnbc, but how can you protect yourself if the government leaders drive us off the edge? we are talking tax protection when we come back. and the new version of active vision record break "call of duty black ops" goes on sale. the amount of money involved, are video games eclipsing hollywood and their block busters? tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800

>> kudos to david faber for breaking the story.reat story really because i think they've got a very interesting mix of stocks. it's also interesting that richard handler's going to be the guy that runs this thing with the other two guys kind of moving to the sidelines. i like that. >> sherwin. popping 6%. >> october 25th earnings comes out. latin american sales down 4%. they've said here's our focus, on north america. today they go out, they pick up 3,300 stores in mexico. stay long, use a $140 stock on sherwin. >> the newest installment in the james bond saga knocked them dead at the box office over the weekend. sold tickets galore. this weekend raking in nearly $90 million in sales, making it the most successful debut ever for a bond film. >> you know who went to high school with him? s simon hobbs. those bricks stick together, baby. >> simon hobbs could be the next -- >> maybe we'll give him a different letter. >>> coming up on "power," is the u.s. about to surpass saudi arabia in oil production? the experts say yes. how will it

i'm melissa lee with carl quintanilla, david faber and jim cramer. we kick off the week better than we had seen last week. looking at a higher open across the board after the worse weekly losses with both indices closing below the 200-day moving average on friday. looking at the action over in europe, we are seeing small gains across the board. our road map starts on capitol hill where congress returns to work tomorrow as leaders prepare to meet with the president this week on the fiscal cliff. lawmakers over the weekend sound optimistic that a deal will be reached. how likely is that? >> jeffries gets bought in a $3.7 billion deal. leucadia is described as a mini berkshire hathaway. >> a war to see who will open earliest on black friday or on thanksgiving itself as it turns out. >> first up, after coming off the worst week for the markets in several months, wall street looking for signs the president and lawmakers can strike a deal on the cliff before the end of the year. on the sunday talk shows some expressed optimism that a deal could be struck.

this company -- david faber, not here today, i always say ulta is the key.y keep the market powered higher. great same store. a lot of people have been worried. cfo resigned not that long ago. a lot of shorts have been saying must be something wrong. i don't know. looks like no. >> interesting. >> the guy just was a personality fit. you tend to believe it when you see this. >> amazing chart. you are looking at oil services companies. >> halliburton, the pressure on pressure pumping pricing has been horrendous. today at goldman they say it's getting better. i find it surprising. you know what? stock has been a real dog. >> wells also makes a call on marathons, right? >> we got some marathon oil, murphy, conoco. oil stocks are very cheap. people just think that they do nothing anymore. i think they are safety. they are safe stocks. >> last trading day of the month. after the break we'll talk about what some of the big winners and losers have been. >> when we come back, the new year is coming soon. how do you make it a profitable one? stay tuned for an exclusiv

>>> david faber joins us now.te people on the knight securities bidding, because we did get a bid that came in from getco. right behind me, usually you can see the post here at the nyse, bidding $3.50 a share. a two-step process that will ultimately result in shareholders of knight getting $1.75 in cash and a new company share of the combination of getco and knight. they say overall, it would have about a $3.50 book value. they do the merger in tonight first and then they distribute cash to shareholders, as well. now, this of course, will compete with what we expect to be a bid, andrew, controlled by silver lake that could be an all cash offer. perhaps a simpler offer. we'll see if it comes in around the same value. again, $3.50, knight shares have been moving up since the journal reported last week that it was in play. it was unclear whether it would be for a unit or not. now there are bids for the entire company. this coming out in a 13d from getco, which is a significant shareholder in the preferred offering th

i'm carl quintanilla with melis melissa, jim cramer, david faber. some green arrows on the dow.tocks haven't had a three-day winning streak since october 17 as they really do wonder what the end result is going to be after the polls close. as for europe, some pmi numbers coming out. a lot of the negative but some argue not deteriorating as quickly as they have been in recent months and quarters. road map this morning is a long trip from new hampshire to hawaii as americans vote today. markets awaiting the results. bear in mind, 30 million americans have already cast their ballots of early voting. how does that change today's dynamics? >> gm gets 11 billion $11 billi credit lines a sign it may buy back shares from the government. nissan and suzuki see big impact. >> tens of thousands of beginning a strike ahead of a critical vote tomorrow. >>> americans are gearing up for one of the closest presidential elections in recent history. much of the nation already voting. polls in colorado, new mexico, utah, wyoming and nebraska are opening now. one example of how close the election ma

jim cramer, david faber standing by and gentlemen, we've been talking about the election this morningheard us talking about your calls on this. >> of course i heard. i thank jack welch for saying i'm a good investor and jack is dead right on regulation and natural gas. i wish one of these candidates believed that because i think he's right. i think the swing states go obama and that's how i come up with that, i think a couple other obama surprises which is why i thinkby ma could win big. when you say these things you think it's political but i don't see the surge people keep saying for romney. if i saw it then i certainly wouldn't be thinking it's going to be a big win for obama. >> would it surprise you though personally i look at it and i don't think anything would necessarily surprise me this time around. i have a tough time trying to get a real feel for what's happening. >> i keep going over the states everyone says are really close. we came back from ohio two weeks ago, just don't feel that ohio is that close. i feel ohio is an obama state. i feel pennsylvania, some people say pe

i'm melissa lee with carl quintanilla, jim cramer and david faber live from the new york stock exchange. let's look at our how we're setting up on futures here. a rocky ride in yesterday's session as comments from harry reid and mitch mcconnell sent stocks to session lows. this morning we look to open to the downside. implied open down 25. s&p looking to lose five. beige book home sales ahead. as for picture in europe, a bailout for four spanish banks getting approval from the eu. still stocks are down. italy down by almost one full percentage point. road map for the morning starts off with the fiscal cliff. the president meeting with more ceos today bringing his plan straight to the people culminating in an appearance in a factory later this week. >> costco joins the dividend parting initiating a $7 a share payout on top of the regular dividend. >> and a shake-up at groupon. the board may be considering co-founder being released. >> there's powerball fever. 500 million big ones in the pot. how would you spend the money and how does the fiscal cliff factor in? we'll talk strategy with a

i'm carl quintanilla live with jim cramer and david faber. cooling its heels today after a big run-up on friday that took us up above 13,000 barely on the dow. europe taking stock of spanish elections over the weekend waiting to see if they can agree on the bailout for greece. we start with black friday shopping weekend. numbers look out as we kick off cyber-monday. which retailers crushed it and which ones were crushed? >>> if you were keeping track, the dow added 421 points last week and bulls argue it could add even more if european leaders settle this dispute over greek aid. we'll discuss the potential impact as they meet in brussels right now. >> a big day for analyst upgrades. research in motion, facebook, yahoo! we'll go over those and see why citi needs three analysts to initiate coverage of apple. we'll begin with retail sales picture from this past weekend. 139 million consumers shopped during black friday weekend. that's up from 132 million last year. total spending up to 59.1 billion to 54.4 a year ago. average holiday shopper spe

i'm carl caquintanilla with melissa lee and david faber. not just the 171,000 for the month but positive revisions we'll talk about in a moment. a busy day in europe as well as we start to talk more about the big events that will happen with the eurozone, both central banks and the greek government that starts next week. >>> our road map starts with the jobs number that beats even the highest expectation on the street. 171,000 is the number with another 84,000 in revisions higher for the past two months. unemployment ticks up to 7.9% as the participation rate rises. is the number really as good as it looks? >> the death toll from sandy now stands at 94 as more than 3 million homes still without power now facing colder weather, gas lines stretch for miles and controversy surrounding new york's decision to hold the marathon this sunday. >>> the ipad mini on sale but lines are shorter than expected. we're live at apple stores for the reaction. >>> and starbucks, same store sales up 7% well above expectations. what is howard schultz doing that

i'm melissa lee with carl quintanilla, jim cramer and david faber. stocks

david, i was watching you. i have known you for so long. never would you say anything about any of this. jim was going out on a limb. i was going to say, faber give me there will be a merger. that's all i get from you. doesn't matter if we're in the middle of election day you're still talking about business, right? you got anything for me today? >> we got a lot of earnings this morning. we got in my old area we have dish and directv and discovery, of course. charter, cable vision. we'll talk about those on the show today. >> i know that's what i would get. how about you, jim? you're purple all the time. today more than ever. >> i was out kicking off the fun drive as a favor to my friend. what a remarkable job you have done. you never talk about your charity. that's the way it should be done. i have to say that bucknell is a fabulous school and i was thrilled to participate in the fun run. >> thank you for saying that, jim. bucknell is one of the most significant reasons i've had the life i've had since i graduated. i'm grateful for the fact that i went there and i would have been there that night with you, jim, but i was on the way to the ho