it is mark mahoney at rbc. >> seaberg, thoughts on amazon? >> i love amazon. i think it has been bold up until the print and if they miss the margin guidance, i would be a buyer in any kind of weakness. this is a great story and i think the stock continues to move higher. >> think it is interesting on the back of aws results what oracle and vm ware do in response. >> just the way it has performed since that announcement, it is awful. i'm in agreement with amazon. the last quarter was amazing on every metric you could look at. and think this is similar. not as good but similar. seminole five is a long way away but i think it goes higher. >> back to valeant and things could get worse. mike kuo is in austin with the action. what do you see. >> one of the places where we saw a lot of activities, ten times the average daily option volume traded january 60 puts were trading. probably 6,000 traded around $8. that's a bet that the stock could get sawed in half, even from today's levels. i should also point out that even in the 190 calls traded at november. so one way

rbc's mark just raised the price target. he will join us live for the reasons why. >> it's reignited the debate of growth over value. a perfect day for us to have an investing legend with us for the full hour. mario gabelli. mario, welcome back. >> thanks, scott. good to be here. >> you're the one i'm talking about. >> it's great to have you back. thanks for coming in. >> delight to be here. we're having this incredible month. the best month in four years for the market. are you surprised where we are today given the down draft that we saw in the market and the kind of volatility we felt? >> well, we expect at the beginning of the we're that you would have a hiccup with regards to a pullback in the market at some point wrush didn't know what the dynamics were. as we've got into july and you started looking at the impact of currency on third quarter earnings, both in temz of exports as well as the relationship of translating the earnings and revenues into u.s. dollars, and you know, the street is worried about the folks at th

. >> and rbc market analyst, joining us on the "fast" line amit you caught december quarter and 2017 estimates. did they reflect the guidance that ibm announced today? >> in hindsight, we did not see enough from ibm. doing the right stuff from the strategic imperatives business the business is lower but it is lower margin and cash flow. so not only are the revenues and the cash flow gets worse and it is hard to call a value when you don't know when the end point is going to be when the mix optimizes for them. >> is it fair to say things would have been mucher if it were not for fx? are they trying to make an excuse for what are deep declines in the core business? >> i think fx is part of the issue but they have, to your point, deeper challenges in the legacy assets. this head wind they have is part of a transition from legacy to strategic assets. i would say that fx is a small challenge. the underlying business transaction is the bigger head wind. >> this is karen. i'm thinking they should be out of the guidance business. it would be a hit in the short-term. but they haven't been abl

a lot of that is changing. >> thank you for joining us, amy wu from rbc capital. i know someone who may be getting a drone for christmas. >> i don't know i don't want one. >> that's not what i was thinking of. >> six minutes to go into the close here. >> your secret is safe with you. >> we will be right back with the closing count down. >> after the bell wall street under attack, at least by democratic presidential hopefuls, still ahead here they come and they will be together here at post 9. former democratic congressman barney frank and cnbc's seen yorp contributor larry kudlow weigh in on the various sal voes waged or flung or something at the democratic debate. you're watching cnbc, first in business worldwide. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. >>> we started without you her

rbc is saying the we dialog semiconductor results in the third order and lackluster fourth-quarter guidances waiting on apple. directionally negative for apple iphone units in the first and second quarter. interesting is the fact that the analyst is an outperform on shares. a technical analyst at cornerstone says apple is a cell and head of earnings based on a chart pattern and suggests a disappointing quarter tomorrow is likely to be reported. shares off about 3%. broadcom is having its worst day since march. we look at the supply chain analysis, it does show that apple is broadcom's second-largest customer accounting for 14% of revenue. clearly investors do not like that right now. again though shares off about 3%. we are all waiting for those apple earnings. lots of mergers and acquisitions announced today. let's start with cap boys. bridgestone -- cap boys. boys. more than 800 auto parts shops around the country. duke energy will acquire piedmont natural -- four -- natural gas. joining us is our managing editor of global mergers and acquisitions. >> typical merger monday, over $20 billi

, think rbc capital markets talking bank of america is uniquely undervalued because they have been soere is your bank of america in europe? davide: there are three of them because we are a split country. you have one in france. they will benefit. tom: will emerge? davide: no, because the regulatory environment will prohibit it. the third one is in italy. they are three domestic franchises with more corporate banking abroad. tom: you did not mention deutsche bank. lineup -- david focus earlier. francine: it is very difficult. tom: what is a cross merger? come on, francine. interstate. that is what they call interstate. tom: she gets angry at me and she switches into italian. francine: words -- i cannot say them. the reason why deutsche bank will not be able to merge with anyone is they are carrying a $2 trillion balance sheet. what happens, there is no merger. there is one that will not benefit out of rising rates. account is too small as a percentage. tom: let's go to photos. we have some joyous photos. vonnie quinn, what do we have? vonnie: number three is vice president joe biden an

gerard capitals -- chirag saiddy of rbc markets has -- we go back to china within the news flow.las consonery holds news conference calls. what a plenum. i thought i would be boring -- i thought it would be boring, but i was wrong. the idea of china shifting, whether it is two children, one children, or whether it is a free-trade zone in shanghai -- it is about the people of china at the end of the day. what do these announcements signal to the demographics in the sense of the scale of the people of china? nicholas: we -- have an indication that this administration is truly a reform oriented administration. the plenum reinforced that. the one-child policy relaxation is a piece of that. clearly this government is trying to be more proactive when they think about the challenges they face over the longer term, and the demographics is a big piece of that story. 6.5%how critical is that gdp level to the politics of beijing? nicholas: i do not think it is that critical. the economy is growing well below the 8% redline that everyone said if you grow less than 8%, china will have massive

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on the phone to give us a preview is gerard cassidy, managing director of rbc capital market.en underperforming in this market rally. is it that the estimates for earnings are coming down or the hope for higher interest rates from the fed is getting pushed out longer. >> i think it's a combination of both with the expectation that the fed may not raise short-term interest rates in december, it will affect 2016's earnings estimates. so we expect lower estimates for 2016 following the third quarter results which start, as you pointed out, this week. >> i'm looking at the estimate force ba s for bank growth, 8%. those estimates were higher. why are they coming down for the current quarter? the trading activity? >> it's the trading activity for the large banks, names like jpmorgan, citigroup, goldman, morgan stanley will be impacted by the weaker volumes in the fixed income area. for the other banks, it's primarily the interest rate environment, the yield curve is flatter and the expectation that the fed may not raise in december is affecting these estimates. >> when the chairman

diversified companies analyst at rbc. >> right. let's check in just on that european car sales data we got earlier today. it rose 9.8% in september. that's 25th consecutive month of gains. now german auto makers were leading the gains with strong demand from the likes of diamler bmw and volkswagen as well. it's here for you now. do bear in mind the storong performance is september sales. the story really only broke on the 21st, 22nd of september so the full impact of diesel gate not coming through the numbers. they were a bit stronger earlier in trade and they have given up some of the gains. volkswagen down at 1.10. >> when we come back, the mcmuffin is paying mcdividens. details coming your way next. >>> suggesting that maybe their blood testing devices are inaccurate. speaking to mad money she disputed the allegations. >> in this case, it was pretty disappointing to see that after every single one of the sources that we spoke with who the journal had contacted told us that the statements that were being attributed to them were f

nomura also raising the price target and so was rbc. >> surprising share buy back but this is also financial engineering to make earnings per share look bigger on the balance sheet when they report in their next report card but alphabet, yeah, the knock on them was can they monetize on mobile? can they boost up mobile search revenue and can they cut down on costs? so they're doing pretty well. let's talk about softy and microsoft shares are popping after the tech company soared past projections with adjusted earnings because you have to look at adjusted here. 67 cents a share on $21.6 billion in revenue. the companies cloud unit is seeing an 8% gains in sales last quarter compared to the same period last year. however they announced more job cuts. a thousand of them in addition to 6700 already announced in late july. shares were up some 8% in after hours trade and we're talking about a 15 year high there for new york trade when they open up at these levels. meantime in frankfurt yeah that's where microsoft also trades looking at gains pretty much in line with the rally that we saw in after h

consumers switching to chip-based credit cards as part of a problem fwlsh a call moderated by rbc mark hastings, he said this to say about moving forward. >> the more that we have incredible value, the more that we have amazing originals. over time we're going to be able to ask consumers for more, to be able to invest more, and that's been the rhythm we've been on as we did the tiering to introduce that. if you look at how much broader, bigger our content is now than two years ago, i think we've really delivered on that promise. >> the moderator, mark mahaney joins us. good morning. >> good morning, carl. we got the domestic, higher churn. obviously, the cost and the risk of programming. do you still like this name? >> yeah, we do. this was a bad quarter flat-out. it seems like every fourth quarter there's a miss. it this happened in the september quarter last year. it happened this quarter. even they came in a little light. the good news here was that u.s. margins continue to rise so they're showing the path of profitability, and then the outlook for international subs in the fourth q

head of currency strategy at rbc. we'll bring you the boe decision and breaking the ecb minutes live. that's on decision time with me at 12:45 cet today. >> great picture. >> great picture. >> it's a terrible picture. we need to update that one. >> let's get the hair going. let's talk about hillary clinton. she has great hair as well but she's trying to run for the white house in 2016 and hillary unveiling a plan to try to curve what she says are the abuses on wall street and it proposes everything from raising the amount of fines that regulators can impose to requiring executives to bear some of those costs. also the democratic presidential hopeful also says she doesn't support the tpp, the transpacific partnership deal which was reached this week rejecting a centerpiece of president obama's economic agenda, the pivot to asia. during a campaign stop in the state of iowa clinton is concerned that currency manipulation wasn't part of this agreement and drug companies got the better end of this deal than patients did an

so with that low liquidity a lot of people say including rbc this morning that the fed must do a much better job of signaling whether it wants to hike in december or not if it intends to do that to make sure that the market is on its side. >> right now, one third probability when it comes to the october 28th meeting which fed officials have said is a live meeting. only 6% probability being priced in but there's some die version i would say around global economies and central policy makers. what happen ifs the fed is tightening and we have easing from the ecb and japan and the boj? and also isn't this dictating to the markets that it peels like this is just predicated and financial markets are predicated on this addiction to monetary stimulus. does the ecb need to ease more? we're growing above trend from what i see in fiscal 2016 and 2017. >> above the trend? i'll not so sure. 0.4%. >> 1.5% rates is above trend right now for euro zone economies and that's what economists have forecast and a lot of the commentators said do we need more quantitative easing or stimulus in the euro zone.

for more let's bring in david palmer at rbc capital market.his has been one of the hottest stocks. last year we were seeing 15% to 20% same store sales rose. what happened in the past year? >> there was volatility in the stock as well. we're seeing it again this quarter as people are digesting the trough of their same-store sales cycle as they're lapping these monster same-store sales a moment ago. what is the real earnings and comp growth going to be over the next year for this? the exit rate in october. >> is it healthy? obviously it's expected as the suspect has expabded to almost 2,000 stores, but is there a bigger problem here when it comes to their control of spending, their expanding even farther? can they actually capture the sales growth that they need to bring the stock higher? >> you know, there's some very real evolutionary things going on here. >> mobl order seems like a good opportunity. they just hired the chief information officer from starbucks, and it looks like mobile order will be an emphasis in the years ahead and is an op

rbc's mark just raised the price target. he will join us live for the reasons why.

it was rbc that upgradeded the swrerman airline to equal weight, market weight from an underperform ratingock up 4%. it is a quiet day. back to you. >> thanks very much, simon. up next, today marks the end of the first week of a major medical billing overhaul in the u.s. how do health insurers handling those changes. we're going to ask athena ceo jonathan bush. that's up next on squawk alley. s suffering from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid. take zzzquil and sleep like... you haven't seen your bed in days. no, like you haven't seen a bed in weeks! zzzquil. the non habit-forming sleep aid that helps you sleep easily, and wake refreshed. >>> good morning. i'm sue herrera. bond guru bill gross suing pimco for at least $200 million claiming he was wrongfully ousted by a cabal of executives that wanted his share of the bonus pool. he left pimco to join janice capital. >>> fifa president sepp blater and his successor were suspended for 90

rbc and other crash? so were you surprised by that? not surprised, because we are reporting the august numbers at the end of the summer seasonal. normally, home prices are week in the fall, so if you look at seasonally adjusted numbers, they are flat. up 1/10 of 1%. so seasonally, that does make sense to you. at the do we look for end of the year? in the next three months? robert: it is difficult. the indicators seem to be pointing every which way. we just saw confidence falling today. betty: we saw new-home sales yesterday down to a 10 month low. robert: yeah. i used to forecast formally. one thing that i have noticed is that the -- over the last six months to the year matters. a year ago, our home prices were going up every 10% rate. now they are at a 5% rate. because this is not the stock market, this is the housing market. that shows there could be a decline in home prices over the next year or two. betty: what is behind that? robert: i think psychology. [laughter] the fed is about to raise rates and that is affecting it. do this y

let's meet the hardware analyst at rbc capital markets. he's optimistic on apple.come. >> thanks. >> the main thrust of what everybody seems to be focusing on here is the idea to whether or not iphone sales which is the bulk of the profitability and the bulk of the business, whether we'll see a sequential downturn in sales. do you think that's possible? do you think we'll see that on the fourth quarter projection tonight? >> yeah. you're right. all that matters is what iphone units do. we're more optimistic, we think you'll see flat to low single digit growth out of the iphones in the december quarter. if you look at the data points, sales have been strong. tim cook's comments on china until september have been positive on the pun side. the third element i would point out is you actually have more selling days for the new forms in the december quarter this year versus last year, which should be a win for the company. i think flat to up a little in iphone units is an expectation. >> for investors that are watching now at home, they may have a longer time horizon of

that is#rbc predecessor john ja left. the next guy oliver elseworth left.an alternative universe, because when you look at the constitution, there is not a term limit for the presidency until the 20th century, until after fdr. imagine a world in which presidents are ree leblgted presidents for life. we do vent that because george washington steps down after two terms and adams leaves office peacefully. and then jefferson steps down and madison and monroe and a tradition begins but washington established that. and his great biographer is none other than john marshall. so washington establishes it. we won't have a presidency for life. john marshall really puts kind of a different spin on life tenure. good behavior. he doesn't cut an run. he stays and stays and stays and works with new appointees, basically jeffersonian appoin e appointees and tries to create a nonpolitical court above party and he just -- he stays and so a lot of life is just showing up. >> you know what happened to james madison's political career. what about william marbury? >> whatever hap

. >> joining us now for analysis, gerard cassidy, bank analyst at rbc capital markets.e now on jpmorgan, now that you had a chance to dig through the figures. >> i think we still think over the long-term jpmorgan chase is a strong company and the earnings in this quarter were impacted by the disruptions in the global capital markets. but the core banking business, especially the focus on expenses is very positive. >> but at what point do the shares start moving significantly higher? we're still down for the year. >> that's very true. where we see the benefit for them and other banks is when the federal reserve starts to raise rates, let's assume next year, and you get a recovery in the capital markets, that's when the stock really starts to make a move. >> those are big caveats. if you say, yes, the franchise is strong, yes, it's a good business, those ifs and buts, will they fall into line. >> even if the fed doesn't move on rates and the economy remains moderate growth, you will see stronger returns of the excess capital that they're generating. this company's capital

mark mahaney from rbc. >>> flooding expected in parts of the east coast as hurricane joaquin makes its in virginia beach today where they are expecting rain. mike? >> good morning. fortunately joaquin will stay well away from the eastern seaboard, but this is what we're dealing with. not from joaquin, big high pressure to the north, low pressure to the south, we have this gradient wind. the beaches from jersey shore, maryland, delaware down to virginia beach through the carolinas are getting battered again. last week, we were out here, five days of this. we're on day number two, this will last through sunday and monday because we will get some wave action from joaquin later in the weekend. there goes another wave up. it's chomping away at this beach this is falling into the atlantic. they have about 12, 15 feet. the homeowners are worried they'll lose their whole dune this afternoon. high tide in about an hour. each high tide through sunday night and into monday is going to be problematic with either minor -- major or severe beach erosion, coastal flooding, too. the other offshoot is t

mahanney of rbc with a $705 target. there is the opening bell.e big board the american israel friendship day celebrating israel day over at the nasdaq. a cloud-based platform that facilitates realtime interactions celebrating its 20th anniversary. >> we've done ibm, done hog. have we done utx? >> no. greg hayes was the cfo, he is just a solid guy and what he has done is basically tell people, listen, it's not yet, we have problems. i want to hear the conference call obviously. they bought back a lot of stock. they will continue to buy ak a lot of stock. as the cfo people are thinking he is making a lot of right moves buying back that stock. the stock is down a lot, unlike a lot of the other industrials and it's rallying. the organic growth is not what i want, but the buy back was quite aggressive. >> they do affirm the full year, add 12 billion to the buy back. >> a lot of people thought that they were going to not reaffirm and that's a very big move for them. i think this guy hayes is good. i still think that you have to wait for otus to turn, b

rbc capital markets upgrading morgan stanley.say the wealth management group will remain an important source of earnings growth regardless of any interest rate hike in the future. they note their capital strength and expectations of more loan growth. they have a $39 target which implies about 18% upside. >> morgan stanley has been a laggard compared to its peers. so this will be an interesting call to watch. stock number two here, tesla. another day, more skepticism about the tesla model x. baird is downgrading the stock to a neutral cutting the price target to 282 from 335. the analyst is confident tesla will be able to ramp up x production but the timing is uncurrent. he said to keep some powder dry. >> it's got to be one of the only companies we talk about where the average price point of their product is over $100,000 a year and nobody talks about that. they only talk about we can't make enough of this. >> amazing. >> up next, holly frontier. deutsche bank upgrading this refiner to a buy from a hold. analyst todd ryan likes t

let's talk about it, bring in haleema for rbc and point out we're happy to see she's our newest cnbc contributor. welcome to the family as well. >> thank you. >> welcome. >> thank you. >> what do you make of today's action and is the market responding to inventory data or what's going on in russia, or both, i guess? >> inventory data yesterday in terms of the build was bearish for crude. on the other side you had indication that u.s. production was slowing. in many respects the data was a wash yesterday. right now it looks like the market reaction to russia, syria has been quite muted. if you did have some type of headline, something disastrous in terms of russia striking a u.s. jet, that would push crude prices higher. right now everyone is waiting to see what happens, how it plays out in syria. the market hasn't really reacted to it yet. >> what's your read on putin's intentions here? >> you know, one of the things that we're sort of concerned abili about is just in terms of the terrorism angle. you have a situation where, you know, putin has escalated there. you have the saudis on

joining us now is david palmer, restaurant and package food analyst at rbc capital markets.r: in line with what we would have expected in the structure as well with them spinning out the china business as a megalicensee, and the remain is free to be leveraged up with more debt, creating a win-win for two assets more investble for people in the future. >> a win-win for activists eager to be in and out. what's it mean for the long term? >> caller: well, long term, yum brands has been a great performer. it's been the 10% plus eps growth company for niep years in a row before having three years of not hitting that. the china business had gotten large, and, it also had gotten volatile with the supply chain issues that had befallen it in recent years. as they get past those supply chain issues and those shocks, and as this new structure's created, the remain code, the global yum, will be more franchised, more consistent in its earnings, and it'll be more like the old yum, punching out growth year after year after year, and that's 70% of the income. that's going to be the more inve