joining us rbc capital markets chief u.s. economist.ad labor secretary thomas perez in the last hour speaking to us live and he saw the number as very significant when it came to sort of baseline job creation. he wants to see better labor participation because we haven't seen numbers so low since the late '60s. i need your opinion on this what did you think of today's number and what does it portend for the economy. >> i think this number is no different than the series of employment reports we were receiving up to the september focm -- fomc meeting. that is to say this data is not different than what we've seen last everal months. think about these numbers for a second. last months you had 150,000 jobs. last month prior to that, 207,000 jobs. a the month prior to that, we are over 212,000 jobs, the numbers are not very different. this was a better than feared report. so i think you're getting a little more euphoria associated with it, but generally speaking this number remains very consistent with a 2% growth backdrop. that has been ou

joining us amy wu from rbc, rex ma massey and rick santelli. amy, coming to you first. what is the options market telling you about whether or not this bull run has legs? >> hi, maria. well, it was kind of interesting to hear the comments earlier everyone saying, what are we waiting for? what's the next catalyst? i'll say the options market isn't expecting anything, even for payrolls, which are the end of this week. we're only expecting a plus or minus one-point move. and then skew, which tells us the bearish sentiment is not there. the options market is not concerned at all into year-end right now. >> so, in other words, the money moving into stocks keeps on going. >> and we continue to see reaches for upside using calls as lever raj. normally at this time of year we see hedges going up. we haven't seen those hedges. we haven't seen that concern. it's that grab for upside. usually the options market is a forebearer of bearish news and we don't see that right now. >> interesting. nobody wants to get in front of that train that is the stock market. stay right there. rex,

if we look at rbc, rbc at $34 a share on twitter, that's 15 times price to sales numbers, that puts itp trades at. yelp is really the comp on multiple. it's the most aggressive one in terms of revenue of market cap to revenue right now. i think twitter's a much bigger company, much more important company. a lot more growth. if you can buy it yorks uh can get twitter. >> except there's a view as you were saying that apple could ultimately buy a company like twitter. yelp is a company people constantly think is that takeover target. >> you really have to look at how twitter is integrating themselves with the traditional eco system. i think when you look at how they're extending the ability to spend advertising dollars. so look at television. lots of brands are advertising on television. people are zooming through the commercials on dvrs not paying attention, staring at their mobile devices. twitter is trying to leverage that and trying to be that place where an advertiser can actually engage because they know you're looking for content. the nfl, i think the social media director on later

howard tuben is with rbc capital markets. he has a hold on abercrombie.come to both of you. >> thanks. >> susan, i'm going to start with you if i could. down 25% on the year. are you playing this as basically a turnaround story or a takeover story? why do you have a buy rating on the stock? >> yes. we think at these levels it trades at just five times ebitda, it's expected to have $8 per share in cash at the end of the year. we view it kind of as the same thing as a gap turnaround. the consumers in it like the brand about five years ago. a couple years ago they were in a similar situation and implemented similar initiatives that we see them implementing now. two years later the stock has nearly doubled. we think abercrombie given its strong brand, global recognition is in a very similar spot and we think they have the right initiatives to really take it to the next level. >> howard, what about that? because susan does have a point, does she not? everybody was left gap for dead. i mean, they were writing off that stock. and they did manage to turn things a

. >>> so bob wettenhall is from rbc, and here on set with the best ways to play. who's making the products that people are going in and buying? >> we love the suppliers to home depot, tremendous momentum driven by consistent home appreciation price in the market. we love names like fortune brands, massco and mohawk, which exhibit extremely strong leverage, and very powerful and potent makeshift to higher-cost projects directly benefits the companies in tandem with tremendous surge in volume. so we have a very positive outlook based on depot's results. >> no surprise that masco is up, vulcan, what other names do you guys like? i mean, stephanie link, you probably like some of the same names, masco? >> i do. i like them all. i like stanley/black & decker a lot, because 50% is cdiy, commercial do it yourself, and they sell into lowe's and home dep depot. and i like the whirlpool call. it was downgraded. the company posted the great north america volume growth number for the first time since 2010. and i think that that's very impressive. i like those as well. >> why i

. >> initiated outperform at rbc, may be helping the stock, up more than the market, up 1.5%.f the best long-term value creators in its segment and sentiment around the company is shaky, their word, that stock up 24% year to date, getting a pop today. >> we've got handbag maker accessory makers because they branched into things, coach getting a price target increase. >> yeah. the stock is up more than 4% right now to 56.94. citibank thinks it could go to 63 raised their target from 58 to 63 and reiterate their buy rating on coach and met with management and they have more conviction in the steps the company is taking with its full price channel than the factory stores. it was downgraded to hold today by stan point research. >> we've got one of the year's hottest restaurant stocks and is going let's see a little sour today called cracker barrel. >> have you had one of the opportunity to have one of these uniquely american experiences. >> i've seen these restaurants on the side of the road but never ventured inside. >> you go through a giant general store, liqucoricquorliq, nick

bring in rbc's capital nick mody who initiated coverage on the beverage sector and bill sh mitd fromyou reckon, pepsi or coke? >> we just initiated yesterday and we prefer coke over pepsi. couple points here. one, we think coke will improve in 2014. they had a bunch of issues in the u.s., brazil and china which we think a lot of these head winds will moderate as we move into 2014. second thing is just from a valuation standpoint. coke has a dividend yield higher than pepsi for the first time since 2010. we think there's value to be had as pepsi has run pretty significantly over the last 18 months. >> bill, how much of this really has to do with the drinks and how much of it really has to do with the snacks? >> that's a great question. pepsi is a food company, right? they have this category killer snack business. so if i can take the cop out here i would say pepsi is a great food and snack company and coke is a great beverage company. coke is the category killer globally in soft drinks and frito globally in snacks. >> overall, i'll throw this back to you, you talk about valuations thi

. >> a river tempted in the shot of the sphinx pro at the rbc. at night, when the stream had become a sorrowful black mess. >> stephen crane to an early prominence as the author of -- encourage and you had previously published a book called maggie, you grow the streets is a remarkable figure, came from a family of some consequence in new jersey. his father was a methodist minister. his mother, an important member of the temperance union. an ancestor had been one of the founding fathers of the colony of new jersey. they were well set up folk. and he became a renegade ruling on. jobs out of college, attendance here accused of mafia college if that is true academy was where the streets and the police courts. he became a bit of a muckraker, a bit of a witness to lowlife. and then he embarked upon this extraordinary flight of cnc because he was born 20 years after the civil war close. he re-created in effect, the chancellorsville. that became a national sensation and to a degree remains that as part of the american canon. but all of this, in his very

here is rbc capital on the news this morning.say we believe this can speed up the timeline of potential asset divestitures and debt pay down and could lead to more rapid departure of ceo or cfo or both. it is interesting that goes back to the original point. you do still have this fear on the part of ceos of doing a deal in which they get criticized for even when they watch prices react positively to deals we have seen so often in this environment. even though money is more or less free, no deals but a lot of activism. >> this is one of the great growth stocks of the early 2000s. everyone thought they were giving phillips and ge a run for their money in medtech. they lost their way. they made acquisitions to try to speed up the growth. i believe they did overpay. go back in time and you look there. a nice chart from '04. you see a stock that was the great stock. you see the acquisitions and the dips fail. so the market went bad. this was one of those vestinves daily stocks. >> we will expect a little fight for board seats. >> he

purchase of common shares the sale of put options with a strike price on the options and analyst at rbculd accelerate and result in a quicker departure. >> hologic. >> thank you. >>> a boeing dream lifter landed at the wrong airport last night. this is a weird story. one of the largest cargo planes in the world that landed at airport in kansas. it was supposed to land a short distance away. a recording of a radio conversation with an air traffic controller appears to show the crew members were still unsure of their location even after landing. >> where are we? >> there had been reports that the plane was stuck because the runway is far too short for the plane to take off. but earlier this morning an official with the wichita airport authority said that the plane was capable of taking off and will do so at 1:00 eastern this afternoon. >> how does that happen? >> i don't understand how you land in the wrong place and not know you're in the wrong place. >>> is the fed the market's best friend? that's what our next guest at "squawk" market master says. joining us now is mohammed el-erian. w

let's bring in mark mehenny, managing director and lead internet analyst with rbc capital markets.ood morning. if we open at this sort of level, that would be an indication that the company is worth in excess of $30 billion. is that a fair assessment of what the business is worth? >> that's an awfully aggressive but potentially achievable valuation level for this company. to put some con dex around that, that would put this stock at trading 20 times forward sales, which would be two times the mutt many of any other internet stock. it's possible that it builds into that valuation but the odds get smaller and smaller. >> i think your price target is $33. >> that's right. >> $10 shy of where we may be at the moment. what do you do as an analyst? will you up rate it, so much interest or put a sell recommendation on it? >> i try to avoid the one-day price targets. i want to be fully respectful of deal dynamics with something of relatively small flow comes out. what we do is therefore indicate whether it's a good asset or not, whether it's one that could be a long-term long, we think it

futures indicating we're going to -- joining us now chief market strategist at rbc capital markets.he correctly predicted the dow would hit 16,000 before the end of the year. so what does he think now? let's find out, professor siegel, you've been strong, wrong, and you've been right. are you calling for more gains? >> i think so. my data shows that the actually fair market value based on current earnings for the dow is probably around 18,000. now, it doesn't mean we're going to get there right pay way or we're going to get there in a straight line. boy, we've had a long time without even a 10% correction. but i don't think this bull market is over yet. i still think there's good gains to come. >> we don't care so much about current earnings, do we, professor? we care about future earnings. >> right. well, what i meant is the current projections of future earnings. and, you know, we had an earnings gain this year over last year of about 10% to 12% which is pretty good in a very slow economic growth situation. if we have a little speed up in economic growth, current projections are a