and dick's sporting goods before the opening deal and nvidia after the close today. it is tuesday, november 21st, 2023 "squawk box" beginnis right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. yeah we're here we're ready to go. look at what is happening with the u.s. equities. yesterday, you saw big gains a pull back for the dow down 40 points s&p off 2. the nasdaq is indicated up 5.5 this is after another day of gains for the averages dow up 204 points.

the nasdaq was the winner up 1.1% for the dow and russell 2000, this is six days in a row of gains. nasdaq is five days in a row of gains. treasury yields are under pressure the 30-year bond at the lowest yesterday since september which is back to september 25th. you are now looking at the ten-year at 4.4% the two-year note stuck at 4.9%. the u.s. dollar index was down for the last five of six sessions this is trading around what is happening with the yield it has fallen to the lowest level in months. this is all on a result of the belief the fed is ldone raising rates. andrew. here is a rundown of what has been a very fast moving story over the last 24 hours

early yesterday, sam altman joined an a.i. research team at microsoft. that is what it looked like it was happening. then after that, all of the employees threatened to quit and follow to microsoft unless the current board reinstates altman. after that, it was open season on employees from the leaders in a.i. technology. salesforce marc benioff posting on x saying he would hire them then satya nadella spoke to jon fortt on "fast money" and said microsoft would benefit if open a.i. workers would stay or follow altman to microsoft >> i care about making sure to continue to innovate i feel confident microsoft has all of the capability to just do that on our own.

we chose to partner with open a.i. we want to continue to do so obviously, that depends on the people at open a.i. staying there or coming to microsoft i'm open to both options. >> nadella said no matter what happens, open a.i. needs changes. the stock closing at a record high on top of all this, bloomberg reporting an internal memo to open a.i. employees that it is in continues discusintense discussions. they are not prepared to give a final response reuters reporting that venture investors were exploring legal recourse against the company's bo board. they could lose hundreds of millions of dollars if the

company collapses. becky, we talked about the valuation of microsoft and did it overpay it looks like the venture capitalists have the most to lose and microsoft, given how they structured the deal are in a good position almost either way. on a temporary basis since they own the current open a.i. technology, they may not get the future stuff. >> 100%. i changed my thinking on it over the course of the show yesterday by 7:45 or 8:00, i was thinking microsoft got a huge coup and they would walk out. when you saw the idea that yesterday more than 500 of the 770 employees said they were going to walk with them and by today, the latest i had seen is over 700 employees with go to microsoft or wherever sam altman went open a.i. went to zero because the other issue on that is they

can't train any programs or open a.i. programs without microsoft. you know, they are tied at the hip to microsoft no matter what happens. by the way, the $13 billion that microsoft invested, they didn't invest these are promises to pay more over time if open a.i. continues to work. >> a lot of it is in-kind with service. >> right microsoft is the big winner on this with the stock closing in on the all-time high yesterday there is a lot to be resolved. you heard that in the interview with satya nadella yesterday he can't tell you who is the ceo. he can't tell you if they are coming to work at microsoft. he is pushing them for on boarding employees he is leaving that to the

lawyers. he wants to make sure where he knew he stood friday which was feeling comfortable with what the game plan is for the products they can roll out in the next year or two and they feel comfortable with that he is working with sam altman and open a.i. in whatever way, shape or form. marc benioff saying we will hire anybody at the same compensation who wants to come over here. it was open season everybody looking to capitalize. you know google was doing the same open a.i. basically imploded over 72 hours. this was open season satya nadella did what he had to do to make sure we will make sure we keep the brain power that is what he is doing that is why microsoft shares perform well the crazy thing you have seen. i saw somebody say satya nadella was the complete entrepreneur ceo mindset with assets of the

multibillion dollar company. the one thing he said is if they go back to open a.i., there has to be governance changes we are not left out of the loop again. >> too bad a.i. is not ready to replace those leaving with a.i >> a.i. engineers. >> before we go on, i'm watching lowe's it is something we should mention. the company is cutting its outlook as a result of the stock which is indicated 192 this morning. down almost 5.5% $193 physician fiscal year guidance cut to $13. the prior is $13.20 and $13.60 comp sales down 5% from a year ago. they had seen it down 2% to 4%

for the fiscal year comp store sales down 5%. >> it is not a huge cut. when you hear the comments, they did it for the second time this year inflation hit and consumers cut down on big spending projects. that makes people think this is what they say the numbers are going to be. >> remember home depot is down for the third quarter in a row because they were waiting for the last year's pandemic-related bounces to come off the calendar lowe's with the same-store sales in the third quarter is down 7.4% for the year, it is down 5% versus prior guidance. >> marvin ellison had comments

on this. greater than expected pullback in do it yourself spending particularly in bigger ticket categories they have a mix of 75% do it yourself that do it yourself pressure impacted the third quarter comp performance. a follow-up to the story we have been monitoring elon musk's x corp sued media matters for america. accusing the watch dog company of trying to drive away advertising by reporting that ads for apple and ibm and oracle were running next to pro-nazi content. they were saying it was interfering with conditacts and replacing ads near anti-semitic posts. this is a frivolous lawsuit and the company stands by its

reporting. the white house launched accounts on meta's threads service for the president and vice president yesterday gaining a sizable following on the app that competes with x it comes after the white house repbuked musk for the anti-semitic rhetoric on x in a statement to cnbc, the white house said the launch of the threads accounts have been in process for several weeks not surely because of this media matters. i have watched them for a while. media watchdog a nice name for what they do and their point of view is something special. something to be shold i had fun with them going on ten years. they had 50,000 signed and delivered to brian steele at englewood cliffs

he was carrying something. i don't want to get into it. i don't want to poke the bear, andrew afraid they sit there and look at you >> talking about free speech. >> if it was a right-wing group jud judging every single thing >> there are lots of them. >> that's what this group is though it is not a media watchdog >> we have more -- >> i heard who backs media matters. you hear the tin hat >> we will find out how they did this and came up with the results. probably more importantly with the adl talking about yesterday. are these changes put into place and how effective are they with

the changes? >> the hardest part about bringing the case is they have to expose the algorithm. there will be discovery. it is going to be untrattractive for all sides. it will be interesting it will open up a lot of things for a lot of people to see how all this works. coming up, we will talk portfolio strategy ahead in just a little bit of the thanksgiving holiday. futures right now, as you see, 54 points off on the dow nasdaq looking up. later, former nyse ceo bul bullish will join us this is "squawk box" and this is cnbc >> announcer: this nbc program is sponsored by baird.

visit bairddifference. how's the chicken? the prawns are delicious. oh, i have a shellfish allergy. one prawn. very good. did i say chicken wrong? tired of people not listening to what you want? it's truffle season! ah that's okay... never enough truffles. how much are they? it's a lot. oh okay - i'm good, that - it's like a priceless piece of art. enjoy. or when they sell you what they want? yeah. the more we understand you, the better we can help you. that's what u.s. bank is for. huge relief. yeah... ♪ with gold bond...

you can age on your own terms. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. only sleep number smart beds let you each choose your individual firmness and comfort. your sleep number setting. and actively cools and warms up to 13 degrees on either side. and now, save 50% on the sleep number limited edition smart bed, plus special financing. shop for a limited time. only at sleep number.

nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho! running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. welcome back to "squawk. nvidia set to report after the close today. the stock rose 2.4%. analysts expect the revenue growth of 170% they expect the current forecast for up to 200% growth. the stock is up 245% which makes

it the biggest gainer in the s&p 500 this year, joe. major indices in the green yesterday. that was the five-day winning streak joining us is mimi duff at gen trust. you are on the record now, mimi. fixed income go out longer. feel comfortable and not nervous making that move so you think rates have peaked and it is clear sailing from here >> it is hard to say if rates have peaked. we have seen better inflation prints i think the market on the bond side and equity side are taking some relief in that. i think time will tell whether we can get all the way down to 2% on inflation, but this rate stability is definitely adding to performance on the interest rate and bond side and equity side as well >> it really has to do with your

own situation because the assets with equities and income are correlated when interest rates are going up, you don't want to be in bonds. it is probably not a great time to be in stocks. if interest rates are coming down, you can feel safe getting your 5%. you won't lose principal, probably the stock market will do much better for someone with risk tolerance, you may be better. you are never in bonds unless you are in a pension plan unless you know what is there in five or ten years i know that is your business and there are in terms of asset allocation where you need to have part of your portfolio which is more stable when things are good, stocks are

better when things are bad, neither one is a good place to be. >> i would chime in a couple of things when stocks are bad, you want to have something to sell to buy more stocks and rebalance. that is a big part of what we do in sloppier times. you don't want to be so handcuffed that you're afraid hiding out when the stocks are bad. then i would also say rates got sufficiently high that if rates were to go further and higher from here, you earn your way out of it. i think higher rates from here, if we were to see another retest, that would lead to equities take your point about the appropriate asset allocation mix for the different participants in the market. we do think that we believe in diversified portfolios >> mimi, if you are in ten years or longer, you can't sell those to buy stocks when the market goes down.

you are probably selling $1,000 bond for $800. you are taking a capital loss there if you don't hold to maturi maturity >> you certainly can sell them the beauty of treasury bonds -- >> sell them at a loss sell stocks at a loss, too you are selling them at a loss if you bought ten-year treasuries at 2.5% and selling them now, you are selling them at a loss. >> we weren't advocating overweights. >> if they go to 7% from here, the five-year note is not good? >> we believe it is less bad from 5% to 7% than it was from 2% to 7% bonds at higher yields have less risk, if you will.

>> right it seems like pfizer or -- pfizer had a big capital loss. you actually have the potential dividend increase and capital appreciation it depends on the timeframe and how much that stability you need in the portfolio and how much risk you can take. i guess i'm thinking about ron baron who said he never bought a bond in his life if you think you are any good at all at picking stocks, it seems you can always find something in the stock market we have been in a bull market since 1980 we haven't been in a horrible period where bonds really would be better. tax-free bonds might make sense. mimi, give me 5% tax-free

equities >> we are getting too much of the bond house here. an lot of municipal bonds. >> i hear mimi duff. you have to be a bond person your family has the big ratings. that is not you. >> no relation >> the only problem with that theory inaccurate thanks, mimi see you later. good luck. when we come back, last-minute wine recommendations for your thanksgiving dinner. and former united airlines ceo oscar munoz will join us as the storms threaten the eastern united states. we'll be right back.

in a crisis caused by a terrorist massacre.

warning civilians to clear out, while hamas forces them back. allowing in food and water, which hamas steals. [alarm clock ringing] (♪♪) [van engine] (♪♪) [card reader chimes] (♪♪) [inaudible chatter] [kitchen bell dings] [inaudible chatter] [keyboard clicking] (♪♪) [card reader chimes] (♪♪)

welcome back thanksgiving is just around the corner just a couple of days away we have last-minute wine recommendations for the holiday. ray is the executive wine editor at "food and wine. ray isle, we got the numbers from lowe's and concerns of discretionary spend for the do it yourself customer coming into the stores does that play out people were avoiding large purchases in particular there. big ticket items does that play out in the wine world? >> it will play out in some degree some people will downshift what they spend on a bottle of wine

volume tends to stay pretty much the same >> we still drink as much. >> the weird thing about wine, if the economy is bad, people drink. if the economy heis good, they drink. they monitor their per bottle spend. i was talking to a guy in the business here in new york. he was saying restaurant spending for wine is up. retail is a little slower. it could be people are moving their dollars from the off premise to the on premise and going out more. >> that sounds like a sign of a strong consumer. people are not only going out, but willing to spend money on the massive markup. >> it is 200% of retail price if not much more depending on the restaurant. >> whatever wall stree fluctuate, you can see it in the cost of the battle >> yeah. you can.

you see it here with guys with big bonuses, they buy expensive wines. >> $600 a bottle >> you can spend even more screaming eagle, the top napa superstar wine, is $2,500. >> are you talking about boston college? that's what i thought of immediately. the guys that went there they are all screaming eagles. are we going to drink this >> yes, we are i brought you a number of things >> more affordable >> it is more affordable great for holiday. >> you know it is 6:00 a.m.? >> i'm aware of that it is a different time to drink wine. >> we get up early we have been up for a little while. >> some people who take a sip, they he can end up univederneath the set. >> we have frog's leap

>> you said that's pretty good >> that's not the first one? >> our first one is italian. >> you have to drink a white first. >> this is from a winery in italy. tiberio. it is a wonderful white wine >> is it more like a pinot or a chardonnay >> it is lighter or crisper. >> what kind of wine >> tiberio >> i like it cold. you are not supposed to drink it really cold. >> people in the u.s., we drink white wine out of the fridge 38 degrees i like it warmer than that >> wow you know what this tastes like to me this altar wine. >> former altar boy here >> yes. >> is it a faux pax to put ice

in white wine asking for a friend >> if it is a $600 bottle of wine, maybe not. i'm pro do what you like this is my rule of pairing wine and food drink wine you like with food you like >> i know exactly how long it takes to put wine in the freezer in ice to get it cold. if i forget and there is nothing in the fridge, i'm in trouble. just like there's no wine in the fridge it is about 38 minutes >> yeah. yeah >> it won't freeze it's really cold. >> it won't freeze the problem is dinner parties and you wake up the next morning and there is wine in the freezer. >> how much is this one? >> in the low 20s. $22. all these wines today are in my

book >> the book was just out last week. >> it is >> consumers when they go out to dinner, are they buying expensive wine are they trading down? >> i have not heard from restaurant folks that people are trading down what i have been hearing is things are good. people are going and spending money which is super there is always a bump in the fourth quarter people buy more wine and spirits. they throw more parties. they go out to eat >> what's next >> pinot noir. this is from jamie kutch a former merrill lynch nasdaq trader he is now living on a farm in sonoma >> okay. >> he was a trader for a while fell in love with wine decided to change his life he lives in the beautiful coast

and making this pinot noir your tastes change over time that's the plan. pinot is a great thanksgiving wine it goes with everything. not too heavy. not too light. >> what are you supposed to drink with turkey? white or red >> you can drink anything with turkey it doesn't have much flavor. nobody just puts turkey on their plate. tu turkey, green beans and mashed potatoes and cranberry sauce pinot runs the nice line between those. >> you know who else is running a winery kevin ferry. he runs a winery out in the san francisco bay area >> some people make a lot of money. >> this is a cab >> this is a zinfinandel.

this is frog's leap. john showed up in napa with a motorcycle and sold the motorcycle >> it tastes like a cabernet where is this from >> napa valley he works with his wines organically. great cabernet as well you know, people ask if they should hold by the stem or the b bowl >> your hand is 98.6 degrees if you like warm wine, this is a guy way of holding it. >> in other words, don't >> can i impress my friends if i read your book

12k3w4r yo >> you can also workout with it. a lot of stories of people who live on the vineyard and make wine in a sustainable way. great wines. i interviewed 290 wineries in here that i just wanted to get a lot of information on wine which is industrial in huge amounts. i wanted to get their vision and the places sdp. >> ray, we appreciate the picks. you have a nice life the stories in your book have nice lives i'm thrilled to have you here. >> happy thanksgiving. >> thank you coming up, latest on the boardroom drama at open a.i. and the ousted ceo sam altman. as we head to break, here is a look at yesterday's winners and losers of the s&p 500.

>> announcer: winners and losers is sponsored by state street global advisors the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights.

trade brilliantly with schwab.

good morning welcome back to "squawk box. we're live from the mnasdaq market site in times square. dow futures are off 42 s&p futures down 3.5%. nasdaq off 4.5%. mild considering the gains we have seen lately we are watching the shares of lowe's falling after they cut the comp store sales and weakness in the consumer there we will dig through the numbers with brian nagel in a few minutes. that stock off 5% right now. we want to discuss it with the cnbc contributor they have been ahead on the story throughout the weekend you know, i ask you state of

lay. what do you think will happen? >> i think sam altman is a mission-driven individual. he wants to enhance the state of a.i. for humanity. he is working hard to go back to open a.i that is what i understand today. bloomberg just asked our reporter last night saying that the board continues to negotiate with altman and his camp the board has to step down that is the condition that sam put on this. of the four people who voted to remove sam on friday, one has flipped. the chief sciicientist has flipd to sam's camp. 80% of employees signed a letter saying they will quit. they people in the outcome of three people returning to open a.i. negotiations are furious today satya nadella was on cnbc last night.

he did not answer affirmatively when jon fortt asked him directly if sam altman is coming to microsoft because it is an open question. >> let me ask you this one of the things we have not gotten underneath the story is clearly concerns of board members about how fast the technology is developing and what kind of controls are in place. that's what led to this. maybe those board members were misguided. i don't think we know yet. clearly at this point, somebody has come to the realization that the technology is moving too fast and you weigh that against the company on existing and you decide you want the company to exist rather than moving too fast what do you think was happening on the other side? >> i think the idea the technology was moving too fast and the board had to pause and they immediately fired sam on friday without notice from

anyone, including microsoft. as time has run by, that has proven to not be true. the members of the board said that is not true shear said that is not true. there is most malfeasance here he said i would not have joined the company for the 48 hours if they were not going to commercialize the models the board has not stated anything to anyone to the investors or emmett shear or sam altman no one knows why they made this decision i think fundamentally, if they think they are tasked with saving humanity from agi, they are better served having a company at the forefront of the development than stopping whatever chatgpt can do today as a commercial product you can buy for $20 a month. there are stories of devday and

what sam altman demoed of chatgpt products and sell to consumers and all that stuff was too far down the path of commercialization. it could potentially have done damaging things. if you are the board of directors, your job is to mediate that conversation. we are going too far too fast. we need to see if this is appropriate. not fire him without notice. >> for the audience, agi is artificial generative intelligence that is the concept. the other piece of this is not just what happens with microsoft, but all of the venture capital investors who put money into the for-profit arm of the not-for-profit. there is a big question with

thrive and anthropic and others. what is the fiduciary responsibility from the not-for-profit board for the investors in the for-profit entity >> i have been trying to suss that out all weekend what is the leverage that will get the board to move? the unbelievable assumption from everyone, including me, the board is acting on some level of bad faith. they will not explain them seems. they have not released documentation. t if you take the assuassumption, see bad fiaith you see if you can gain leverage over the situation and up until now, they have none. no one has been able to do anything the microsoft announcement that sam and greg would join

microsoft is an attempt to gain leverage we will take the principles and you will be the non-profit board of nothing that is one outcome or come back to the table and negotiate that is risky for microsoft to announce sam and greg are going to the company when they actively engaged in open negotiations to return to open a.i. it sis unclear if the fiduciary duty has accomplished anything >> we have to run. i'm sure we will talk to you more in the coming days, or hours, with the rate this story is moving. thank you for joining us >> thank you >> andrew, the only thing i would point out is this was pretty important time going for the announcement it happened before the market opened yesterday it was important for microsoft, too, to be able to say what satya is saying, we are working with sam altman and open a.i. in

whatever way, shape or form the stock closed at an all-time high that would not be the case if he this did not give the negotiating room to altman and company? >> i have no idea what to make of the story, to be honest, any anya any more i have lots of views i'm not sure they are solid enough >> okay. fair point coming up, as we head to break, check out the shares of zoom the company reported better than expected third quarter results check it out it is down 10 cents. cfo kelly steckelberg will join us in the 8:00 hour. we'll be right back. >> announcer: this cnbc program is spocnsored by truist

experience, expertise, execution. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. only sleep number smart beds let you each choose your individual firmness and comfort. you can stay on top of the market from wherever you are. your sleep number setting. and actively cools and warms up to 13 degrees on either side. and now, the new queen sleep number c2 smart bed is only $990. shop for a limited time. only at sleep number.

meet gold bond daily healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers & 3 vitamins. and... new gold bond healing sensitive. clinically shown to heal & moisturize dry, sensitive skin. gold bond.

general motorss an nnouncint will not advertise in the super bowl the first time it will sit out of the game. it cis cutting marketing costs a a strategy to reduce costs the $800 million of the cost cuts would come from reduced sales and marketing expenses pricing for a 30-second super bowl ad this year will be approximately $7 million that is just -- i read that and i thought when you are losing your ass on evs we are vehicle is not working at all. cruze is not helping

i saw the possibility with jason. a lions-browns super bowl. it is not as crazy he says the nfl season has gone mad. don't laugh. >> kansas city was our pre-super bowl super bowl. >> it doesn't have to be that way. you saw the world series >> you want to lay odds on this right now? >> you are taking both >> i'm taking neither. i'll take everybody else >> you think it is eagles or the chiefs >> i think one of them will be in it. >> i don't know. 49ers. dallas plays well against a t decent team. >> 9-1 >> 9-2 or 9-3. whatever i don't know i'm just saying it is possible there are teams. denver suddenly. russell wilson has won four straight the lions have it.

>> it is possible. i'll take these. when we come back, we will talk more about shares of lowe's they are under pressure after they cut the full-year forecast of sales with issues with the consumer, the do it yourself consumers. we will talk to this that stock is off 4.6% in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

[ "i'll be seeing you" by the five satins ] ♪ ♪ - the past few years have been a challenge for our physical and mental health. - join kate and me as we get personal

about our own journeys and how the conversation around mental health has changed. - watch our conversation on peacock. s. >> shares of lowe's are under pressure this morning after the company cut the full year comp sales forecast joining us is brian nagle. that stock down by about 4.6% right now, brian does that surprise you given what the company said? >> good morning, becky this report, i think everyone was bracing for what was expected to be a soft-ish report what happened here is this is softer than we expected. so relative to home depot,

lowe's sales were weaker, the management team is calling on weakness on the diy side, which is discretionary, so it's a somewhat weaker consumer out there. but given the results this morning, the initial reaction of the stock is as expected but sales are softer than most people were bracing for here >> brian, how much of this is pressure on the consumer and the consumer, you know, being in a bit of turmoil and how much of it is just that these consumers have spent everything because of the pandemic, they bought the big ticket items they need no one needs a new refrigerator, washer and dryer and maybe they're not as ready to refurnish their house because they've already so much. how much is a weak consumer, how much is a post pandemic consumer >> i think that is the key question

but in my mind the question is what you're describing, the post pandemic we can talk about this forever if you look at broader consumer spends, not just goods consumers over the last few months have traveled a ton every travel number out there was hitting records, if you will with consumers traveling, they're less likely to be spending time in their homes, they're less likely to be undertaking projects in their home that's a factor. also what you mentioned, we talked about this a lot, i believe that in the pandemic there was a rather significant pull forward in demand some of these items, whether it be appliances or bigger ticket purchases i think were purchased during the pandemic and now we're essentially, you know, kind of waiting for a new replacement cycle to take hold but that's going to take awhile. i think we're seeing primarily this post pandemic reset

now on top of that, there is probably some confidence with the consumer we' so that elsewhere. there is some weakness in the consumer i think in the case of lowe's and i know we talked about it last week. >> which two stocks do you are like pandemic, lowe's or home depot? based on valuatoin and lowe's has the bigger percentage of purchases that are do it yourself >> well, look, i like them both. i think lowe's is still the better bet here. the multiple blows remains very depressed and i think there's still more operational slack within this business model the other point i would make, i don't want to dismiss what we're seeing here today. we're going to have the lowe's conference call in the next hour so we'll get details i dweent to dismiss this when i think of lowe's and home depot, this is a play for 2024 i think 2024 is a much more normalized year. we'll get further away from the

pandemic i believe we'll see moderating rates which is a tail wind for the business not to dismiss today's results and the initial reaction of the stocks i think you're investing in the na names the next several quarters. i think lowe's is the better opportunity on the margin. >> thank you. >> good to see you. coming up, a big two hours ahead. much more on the drama in the board room of openai and tom farley is going to join us. bullish announced it's buying coin desk. >> we're back with him and so much more when squawk returns. ♪ we worked hard to build up the shop, save for college and our retirement. but we got there, thanks to our advisor and vanguard. now i see who all that hard work was for... it was always for you.

seeing you carry on our legacy— i'm so proud. at vanguard, you're more than just an investor, you're an owner. setting up the future for the ones you love. that's the value of ownership. (carolers) ♪ iphone 15 pro, your husband deserves it! ♪ setting up the future for the ones you love. (mom) carolers? to tell me you want a new iphone? a better plan is verizon. (dad) no way they'd take this wreck. (carolers) ♪ yes, they will, in any condition. ♪ ♪ get iphone 15 pro and ipad and apple watch - all on them! ♪ (mom) please forgive him. (carolers) ♪ it's all good - just a little awkward. ♪

(soloist) think we'll wrap this up. (vo) black friday starts now. turn any iphone in any condition into a new iphone 15 pro with titanium and ipad and apple watch se - all on us. that's up to $1700 in value. it's holiday every day, with verizon. why choose a sleep number smart bed? because no two people sleep the same. only sleep number smart beds let you each choose your individual firmness and comfort. your sleep number settings. it's so smart, it actively cools and warms up to 13 degrees on either side for your ideal sleep temperature, and effortlessly responds to both of you. for your best sleep, night after night. and now, save 50% on the sleep number limited edition smart bed, plus special financing. shop for a limited time and sleep next level. only at sleep number. my mom's life is the most important thing to me. hi mom! i called my mom, "i have this gene and i think you need to get tested." she feels like it was truly lifesaving.

good morning, the s&p 500 and the nasdaq notching five straight days of gains this morning, futures are down slightly as investors await the minutes from the fed's policy meeting. new developments to openai they appear to have an open revolt on its hands from investors and staff. we'll give you the details and are you ready to travel? better yet, are the airlines ready for the holiday rush former united airlines ceo oscar munoz joins us with what you can expect at the airports the second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" on cnbc i'm andrew ross sorokin with becky quick and joe kernen right now we're about 50 points down on the do you the s&p 500 a bit lower, not too much the dow lower. we'll talk about companies that may be impacting let's also show you treasuries the ten year and two year if you look at where things stand, 4.422 on the 10 year, two year at 4.9 just under five oil as we think about the energy complex, think of wti crude want to buy it by the barrel, it'll cost you $77.44. crypto, to the point that bitcoin is the barometer, i don't know what it is.

but $37,000 right now, i don't know >> the fed's next move might be not higher i think that explains -- that's all crypto is waiting for. >> it's not the etf. it was the etf now it's back to the fed >> the reason it came down from 60,000 plus and it's been churning around. yeah it likes the spigots to be open and any sign that's going to happen for sentiment i think it helps. a senate panel issuing a subpoena to live nation and ticket master for documents related to ticket prices and fees you might recall ticket master came under fire last year, following the botched ticket sales for taylor swift's eras tour the subpoena would require live nation, which owns ticket master, to turn over documents and communications related to ticket prices, financial data,

fees, the resale business and its relationship with artists and venues amazon is launching a program to train millions of workers in a.i. skills as it seeks an edge in the battle with talent with microsoft, google and others they aim to train at least 2 million people by 2025 on basic to advance skills. and hertz is teaming with ev go to offer renters one year of discount charging with no monthly subscription or charge fees renters can sign up online or scan a qr code at hertz locations and set up an ev go account. then you can use any of the ev go charging stations there's more than 950 of those yesterday i think one of the things that president biden is kind of funny at times he was trying to mention the two big tours going on he mentioned beyonce, what's

beyonce's tour >> not lemonade. >> it's a big tour and then he said and then britney's tour, the eras. >> that's kind of cute. >> i don't know a whole lot of -- >> if you haven't figured out it's taylor swift -- >> i was trying to think if my dad could think of taylor swift. >> i think most people could come up with -- britney's britney's been in the news for other -- >> yes she has a book out has a number one book. >> maybe that's what he's thinking about. the house china select committee sending a letter to tim cook, asking to explain why apple will no longer produce jon stewart's show saying quote we know from previous incidents involving production companies other than

apple that fear of the ccp, retaliating against companies and the lure of the prc market and based financing have significantly chilled the creation of american content that could be perceived as critical of the ccp. joining us is mike gallagher, chair of the select committee on china. good morning to you. so we've seen this movie or tv show in some ways before there have been a number of instances where big media companies have changed either pieces of film, tv shows and other things in part because they want to do business in china. do you think that that is -- well, what is the role of the u.s. government in influencing or not a u.s. media company or a u.s. business in that regard >> first of all let me say in this instance we want to understand what happened if apple and/or jon stewart wants an off the record

conversation with us, that's fine we want to understand the decisions businesses make. or if they want to tell us the reporting was inaccurate i'm open to that as well the bigger issues at play here are as follows one, in order to even get into china, you know, the entertainment industry has to censur any story lines of china. and you probably understand this better than i do, andrew before pen is put to paper, nothing critical of china would be part of a script. why does it matter at least for a couple reasons. one, in order to win this competition with china, we have to do some hard and costly things, which means we need the support of the american people in the old cold war with the soviet union, even your average american who didn't pay attention to politics understood

what the kgb was, who the good guys and bad guys were we have no reference here in part because hollywood doesn't want to anger the chinese communist policy. >> i don't disagree with you, congressman. i think you're right that there is a self-censorship that takes place perhaps in the world of hollywood. the question i ask is what is the role of the u.s. government in that in so far as at the same time you would say you're a free marketeer. so what's the government to tell the business about making decisions. there's lots of things businesses do because they want a relationship with another company, country or whatever. >> i'm not suggesting that i or anyone in congress dictates to apple and certainly jon stewart, ho's actually funny and i'm not funny, what creative decisions they make. that's not the role of the u.s.

government and you know, to the extent we have a role, we could cut off the access of -- hollywood access to say the pentagon's resources if we don't like the decisions they're making with respect to china if they try to take the taiwan patch off maverick's jacket or try to remake "red dawn" and try to make the bad guy from china to north korea, they don't get access but that's the extent of it. let's say we want to understand the decisions they make and be critical of their self-censorship because it gets at the idea that the ccp is wielding a veto over creative decisions in america or tamping down on free expression or crow ya creativity or we want to point out the hypocrisy of hollywood

that is pointing everything out to us but silent about the ccp, and their hold over taiwan we can do that but i'm not saying we legislate creative content. >> i think those are all important points i was going to ask you about the standing ovation that president xi got last week when he was in town in san francisco by dozens of u.s. ceos and talking about the signals that you think that that sends, both in good and bad ways. >> well, first of all, i know that a lot of the people in the audience listen to your show, so sincerely i want to convey -- i don't wake up every day trying to poke the financial and business community in the eye. but when you give a genocide dal communist dictator a standing ovation, you're not just poking

the potential concern of the republican members of congress, there are bipartisan concerns around that given everything that xi jinping is doing and this idea that somehow we'll go back to the status can quo, pre-trump because xi said nice words at the business counsel and because executives paid $40,000 to drink wine with him is naive and dangerous i think it masks the pacific that xi jinping is saying one thing to an external audience and an entirely different thing to the internal chinese communist party and domestic audience to his internal audience he is preparing for conflict with the united states. and in the same dinner he said you need to decide america whether you want to treat us as a partner or adversary then he goes back home and talks about the united states as an adversary. he's been talking about the united states as an enemy, clearly we choose to ignore that part and the business executives

did not help the cause by giving him a standing ovation. >> do you think having a relationship is meaningful and matters. we had the treasury secretary on yesterday and she was talking about a number of large issues that the globe is going to be confronting on so many different sort of elements and having that relationship, being able to talk back and forth, even on the military issue we talked i think before congressman, about do we have somebody to call, in china, if there is a military moment as it relates to taiwan and we have not historically as it relates to what took place, that maybe we with-- we will >> the accidental war fallacy has very little impempirical support. we're going to go to war if china decides to invade taiwan if xi makes the bigger decision.

which gets to the broader problem of the treasury secretary's analysis we have an economic relationship going forward but i select selective decoupling but show me the area where china has been a constructive actor. proponents of engagement with china make the case our interest aligns on climate change, stability on the korean peninsula, and public health and pandemic prevention. analyze each of those areas and give me the evidence that china, despite repeated attempts by multiple u.s. administrations to accommodate them and work with them has been a constructive actor. they have not been a constructive actor so to go back to that fallacy i think under mines our interest and gives cover for xi jinping to advance his agenda and it's not only regional but it's displacing the united states as the dominant global power. that's the analysis by the biden

administration on china, not my own. >> it's always a longer conversation and we'll continue it with you i'm sure very soon i appreciate you joining us this morning. thank you. >> thank you, sir. coming up, crypto exchange bullish, that's the name of the company, buying coindesk in an all-cash deal. bullish is led by tom farley an he's going to join us in a bit to talk about the deal and the markets and much more. "squawk box" will be right back.

at morgan stanley, old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ my mom's life is the most important thing to me. hi mom! i called my mom, "i have this gene and i think you need to get tested." she feels like it was truly lifesaving.

i'm dominic chu with a heavy dose of earns. uber tilted towards the consumer starting with shares of lowe down about 4.5% over 30,000 shares of trading volume after they reported what's being viewed as generally weaker results. revenues came in lower than expectations on profits per share that are still being parsed through the bigger focus is lowe's cutting the full year forecast for profits and revenues as do

it yourself customers pull back on spending for home renovation projects sales to contractors did rise in the quarter, those so called pro customers make up about 11% of the revenues best buy is down roughly 2.5% right now, around 25,000 shares of volume. the retailer reporting profits that topped estimates. best buy lowered the sales guidance and the upper end of the profit forecast adding that consumer demand has been more uneven and more difficult to try to predict best buy shares off 2.57%. we'll round out our consumer check with dick's sporting goods which is surging up 9% at this point. the company behind the sporting stores and golf galaxy locations reported better than expected profits and revenues

and saying it's excited for the holiday shopping season after seeing increases in back to schools. mixed bag for the stocks but dick's sporting goods up 8%. walmart is one of the stocks our next guest lights and we're highlighting it as a pick this morning. we want to bring in keith this morning. let's talk about this. we have seen concerns about the economy, some concerns about the consumer but you like walmart nonetheless or maybe because of it why don't you explain your theory there >> thank you for having me, becky. it it's good to have me. walmart is a top pick not because deflation is out of the question but the way walmart is executed, particularly bringing in new customers, the part of the walmart experience has been

really much maligned has been the exec out experience so they're driving the ecommerce business still growing at a mid 20s clip even three years after covid. so walmart we look as one that's i insulated over the inflationary environment the next couple of years and they can continue to drive margins in an inflationary environment. walmart we feel is a staple in terms of how we look at the consumer discretionary marketplace or how we view the consumer, perhaps driving their decision differently. >> their the stock dropped after the company reported earnings. is that part of why you like it? or did you like it before? >> it had become a crowded trade. we look at this as an opportunity to add to our position the last week or so so yes, it offers opportunity again to add positions in a core

holding we have with a management team that has executed in this the past three years in an environment that's been unpredictable so we feel they deserve the credit of continuing to execute going forward. >> let's look at shares of eli li lilly. there have been some huge advantages to these companies that have the weight loss drugs. but yousay looking at this, yo think there's more room to run that stock is phenomenal, it's up 63% year-to-date. >> it is and the forward multiple is not for the faint of heart we look at this name as somewhat of a game changer in health care not only lilly but also the other names like novo that have the products that have really started to change about how walmart thinks about how they shelve their snacks, and they address issues as well it may seem paradox that walmart

and lilly are the names we like the most but we're looking at lilly's capacity to penetrate the prediabetes markets. and how much pressure the pairs will be under. the icing on the cake, if you will, is the -- what we're starting to understand and learn about how the drugs affect impulse control. we feel that's not necessarily baked into the forward expectations in a way that's meaningful and significant so we feel that's perhaps part of the marketplace the drugs can penetrate and offer upside even at these high multiples. >> j.p. morgan is another stock you like we have seen the financials rotate to a little bit of leisureship the last week or two. that's taking cues from the fed if the fed is done raising rates maybe things are better. you like this as a best in breed. >> we do

j.p. morgan has assets it picked up last spring that can pay dividends going forward. but as the market moves from a bear to a bull, perhaps coming down as we move into the later stages of the tightening the fed has been under, we feel the large cape banks, particularly those with growth opportunities like j.p. morgan has can continue to lead the market higher in a scenario that might not benefit all the -- we're wary of some of the balance sheet issues as you go down the cap scale so you want to pay attention to quality and j.p. morgan exudes that what we see in the financials right now. >> keith, thanks a lot for joining us today. >> thank you we have a lot more coming up in just a moment the openai drama showing no signs of easing after the board ousted sam altman there. employees threatening to quick

and investors threatening to sue. but it's time for today's trivia question what tishe world's top selling puzzle game? we'll have the answer when squawk comes back. good hands! hospital bill for prime?! gaaaaap! did you just say gap?! he's talking about expenses health insurance doesn't cover. good thing coach prime knows about...say it one time! aflac! because aflac gets you money to help close that gap! now how do we get this goat outta here? (whistles) aflac! meet one of my new homies! gaaaaap! get help with expenses health insurance doesn't cover at aflac.com. elephant would've been scarier. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses doesn't cover at aflac.com. move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background]

the network with 24/7 built-in security. chip? at&t business. i was on a work trip when the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life.

only sleep number smart beds let you each choose your individual firmness and comfort. your sleep number setting. and actively cools and warms up to 13 degrees on either side. and now, save 50% on the sleep number limited edition smart bed, plus special financing. shop for a limited time. only at sleep number.

welcome back to "squawk box. we have the answer to today's aflac trivia question. the question is, what is the world's top selling puzzle game? curious if joe or becky knew the answer i did not. rubik's cube over 450 million have been sold worldwide since the invention in 1974 you know the guy who can do it in like three seconds? >> yeah. blindfolded. >> i can't do it in -- >> three years. >> you take the stickers off, you can put them back on i can do one side. one side i sometimes can do two sides, the legit way and then it resorts to take the stickers off and fix it that's the ocd side. >> no. >> the drama at openai showing no signs of easing as the future of the company remains in questjeo jeopardy investors are looking at legal

action against the board fearing they could lose hundreds of millions of dollars of invested capital. >> here's the puzzle, what's going to happen. the lawsuit may not matter within hours of announcing sam altman would be joining microsoft, satya nadella was noncommittal last night after a rebellion with openai. maybe at microsoft or maybe back at openai as ceo yesterday hundreds of openai employees, a vast majority threatened to walk off the job with altman unless the board brings him back and then steps down so the skpaen could be run under a new board. it forced microsoft into damage control with na-satya telling u

no matter what happens with openai, it'll be okay. but nadella said he wants to see structure changes at openai so it can't help us again. >> i think it's very, very clear that something has to change around the governance. we'll have a good dialogue with their board on that and we'll, you know, walk through that as time evolves but the most important thing for me, for customers to know is, today we have the capability >> he could be a potential board member two scenarios possible microsoft closes the deal, brings altman back in house along with hundreds of employees, in effect microsoft could acquire the hottest tech stop on the plant valued at reportedly $90 billion for a song and without scrutiny or the board caves to employee demands, brings altman back, they resign

and new board members come in to run the shop if that happens we're back to where things stood as of thursday. >> the oj thing that's clear is this is no longer a not for profit company if you bring in new board members they're going to be board members that have a profit motive >> i think that's the only thing that became clear. this structure does not work for this kind of company they're a 501c3 in california but making this nonprofit. >> everybody got surprised when it turned out the money wasn't re running decisions on friday >> it sounds like microsoft was surprised too and they shouldn't have been. >> that's the situation now. >> andrew? >> steve, i was going to mention it relates to the not for profit status and then i wanted to mention the regulatory piece there's an irs component to this, which is when you're not for period of time, i'm not sure this is a profit making company

it is, but in terms of paying taxes and other things, it is possible not just that they would be undoing their status but the state of california would undo the status and the irs would undo the status anyway there are for profits entities that influenced not for profits and the state or government came in and said you say you're not for profit but we're going to change your status because we think you've been pretending the whole time but the second regulatory piece, yes microsoft owns less than 50% of this and regulators have never looked at it in a meaningful way yet i wonder while there may be no deal to approve, whether some ftc or regulatory body looks at this in a way different way later. >> yes is this the kind of thing that

comes under the new thesis of antitrust activity and california is a non-compete state they don't enforce the non-compete clauses which tas yu know the ftc is looking at as well the mass exodus from openai to microsoft does that draw s scrutiny because they would be acquiring the company without acquiring the company. >> regulators are going to be watching this because this caught everybody by surprise and it's laying bare what happens here, it's not a not for profit company. >> right and if the investors' lawsuits happen, that comes out as well. still to come, bullish buying coindesk in an all cash deal we'll talk to tom farley for the attails. th's next. stay tuned you're watching "squawk box" and this is cnbc.

the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life. if your business needs a new application then developers will have to write code. a lot of code. if an application needs to be modernized then you'll need time, resources... and caffeine. if this sounds daunting then use watsonx code assistant ai designed to multiply developer productivity so you can generate code quickly. let's create a more modern foundation for business, with watsonx code assistant. ibm. let's create.

crypto exchange bullish has bought the media coindesk from digital currency group in an all cash deal, the latest move in

crypto from our next guest tom farley ceo of bullish and former president of the new york stock exchange >> and friend of the show. i don't know why you wouldn't give me that. >> long time friend. tall, dark handsome -- >> go on, i'll wait. >> you got it all -- crappy golfer you got it all sere seriously, this guy ran the new york stock exchange all in on crypto and bitcoin. >> yeah. >> they use that as credibility for that asset. >> and a year ago, you know, a year ago my father was looking at me saying what are you doing? >> what are you doing. >> you ran the new york stock exchange. >> where did i go wrong? >> and crypto had lost its mind a little bit it was all about frog coins and monkey drawings

and fraud hero worships. i took some -- >> i believe they were apes. are apes monkeys the. >> there were monkeys as well. >> and vampires. >> yeah. i doubled down, joe, because i -- i think it -- first of all, i think it's already coming back >> that's what you're saying about this acquisition >> yeah. >> is that for the next bull run in crypto, you want to have coindesk as a -- like a media arm of your company because the bull run is already starting. >> yeah. in my view, the bull run is started. i make no promises how long it continues or to what extent, but the winners in the next wave will be well run trusted companies that are adult, compliant, coindesk is a great example of that. they are the go-to source for crypto news, they broke the sam

bankman-freed story. they have the largest gathering for crypto consensus, and they have an index business that i'm really excited about, that already has 20, $25 million benchmark to it, and there's synergy with bullish, the exchange we run. so it's a business positioned to do well in a recovery. >> and credibility. >> yes me personally as the ceo, if i go in and i show up in the news room and i say, you need to cover me and you need to cover me like the north korean press core covers kim jong-un. >> you did that with us -- >> i did but matt is there to ensure we respect journalistic independence. >> what would you do if you were like the dog chasing the ftx bus and you caught it?

what would happen? is that going to happen? >> thanks for asking i anticipated that possibly you would. as you might expect, i'm limited with respect to what i can say contractually. but we are hanging around the rim with ftx a lot of creditors got hurt badly. i was in hong kong two months ago and one gentleman i was out with great guy, told me a story he went on his balcony and thought about ending his life because he lost his entire life savings in ftx this is a one on one story to me if we can help creditors we will but i can see, the estate is running a good process, bringing in a lot of assets for the estate that's really all i can say. >> what would a crypto exchange look like today? what would be different about it is it just having regulatory oversight and approval >> it's the biggest issue.

most of the legacy exchanges are caught up in criminal investigations, massive civil investigations and they're in a state of noncompliance. and that's just -- look, it isn't going to work. we can all wish -- we have a libertarian strict the winning exchanges are going to be trusted, compliant, and support and bolster the digital assets industry. it is what it is i can rail against it, but that's the -- that's the position we're in. >> bullish is part of a -- this is a bumpy road. how many employees >> approaching 300. >> and in hong kong. it's global. >> yes about 100 plus in hong kong. we don't spend a lot of money on marketing that's probably why you and others don't know about it

it's probably the fastest growing crypto exchange. i say probably because maybe there's one i don't know of right now. we're number one and two in spot bitcoin and either the fourth or fifth largest spot exchange launching futures this month with a fair wind we need a few things to fall in place. but we're going to launch futures. slow and steady wins the race. highly compliant we have 25 coins not 7,000. >> you know the people in charge of whether there's a spot atf. you know them all. they all trust you and know you from your prior life what is happening? is it something that's going to happen next year is it going to be 2025, that's the deal what's the problem >> i'm not going to give you a specific date. i guess i'm a little less op optimistic of the i approval

i think the current chairman and s.e.c. have said they believe that pretty much everything in crypto, with the exception of bitcoin, sometimes ethereum and possibly stable coins are securities and securities in the united states need to trade on a nationally recognized exchange and they do not today. and i think these two issues, at the moment, are interwoven that doesn't mean they can't be decoupled but there's a view if these don't trade on the exchange how do we know the underlying prices are trustworthy. the thing about bitcoin, everyone acknowledges bitcoin is not a security, including the regulators, so possibly the bitcoin etf does go ahead more quickly. which could be great for the industry money will flood into the industry with bitcoin etf. people believe in bitcoin, bitcoin is a great invention, it

is i know it's svolatile. >> some people think it's a discovery not an invention it was always there. >> i'll buy that you've been on bitcoin. >> yeah. >> since the earliest days >> and here's what i -- but -- so you could have done anything, new york stock exchange. >> right. >> you decided to do this. is it based on bitcoin eventually being transactional for the internet of money, or would you launch something just based on something that is a store of value you want to put all of your eggs in this exchange that just holds something that is sort of an alternative to fiat money and money printing what is it you think the future of bitcoin is? >> first of all with me personally i love markets. i'm a total nerve, i'm like the grandpa -- >> you could have gone into

lithium. >> i've been in cotton, i've been orange juice, now i'm in digital assets i just love it we're building a business for a huge return. >> there are people that -- >> i am a dezealot and supporte >> people think it's a bean ie baby, it's a ponzi scheme. >> number one we funded a portion of the price in crypto because it was easy. here we'll send you crypto, it's final, transparent, you know it's done. we don't have to do with the wire thing, is the wire closed over the weekend, number two we're raising financing right now, raising it in assets. send us stable coins we have a surplus of bitcoin, take bitcoin sure we can convert it to cash if we need to.

that's what goes with it that's a real use case. >> and the next bull run i was talking earlier is when the fed finally does what it does best and that is under mines the currency, under mines the dollar. >> that's the view that digital assets take over the world we're not playing for that we're playing let's build a diversifiied business for a rebound. it could be a success. >> you think 100,000 on bitcoin will happen -- >> as you remember, my prognostications aren't worth mine -- >> remember mine, my 50000 -- >> yes i see bitcoin at 100,000 and not too far from now, but what do i know andrew, i didn't hear from you, but it's good to see you, again, bud, too hope you're well. >> great to see you, my friend looking good business is interesting. i'm fascinated.

>> i was going to make a joke. you had opportunities -- you could have done anything. >> and i bought coindesk because it's a great business. >> not golf pro. anything else basically. thank you tom farley a lot more coming up on the other side of this record breaking travel expected for thanksgiving and that's not a headache already, add bad weather into the mix, you have rain, snow, and thunderstorms to disrupt your travel plans. are the airlines prepared? we'll speak with oscar munoz a reminer you can follow squawk pod on your favorite podcast app, "squawk box" returning after this had

why choose a sleep number smart bed? because no two people sleep the same. only sleep number smart beds let you each choose your individual firmness and comfort. your sleep number settings. it's so smart, it actively cools and warms up to 13 degrees on either side for your ideal sleep temperature, and effortlessly responds to both of you. for your best sleep, night after night. and now, the new queen sleep number c2 smart bed is only $990. shop for a limited time and sleep next level. only at sleep number. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq,

a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com my mom's life is the most important thing to me. hi mom! i called my mom, "i have this gene and i think you need to get tested." she feels like it was truly lifesaving.

still to come this morning are the airlines prepared for the holiday travel snn we'll speak to former united ceo oscar mu munoz. that's next. as we head to a break, check out shares of zoom the stock off about 1.5% zoom's cfo will join us in the next hour. "squawk bo wl rhtacx"ilbeig bk.

in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

experience the art of high pressure brewed coffee and espresso with the l'or barista system. enjoy richer, bolder flavors complete with velvet smooth crema. now brewing peet's coffee.

welcome back to squa"squ box. airlines expecting their busiest thanksgiving yet with more than 55 million americans planning on traveling, over 5 million plan to fly after a summer of cancellations and chaos. i want to bring in oscar munoz to weigh in on how the big airlines are preparing we keep hearing about weather events and so many other issues, oscar. what do you think the chances are that we don't see a whole

slew of headlines come thursday, friday, saturday, sunday, about how well or maybe how badly the airlines performed we've seen that before >> yeah, we have so this isn't the complexity of digital currency, by the way but certainly weather is complex. i'll tell you, i checked in with the network operating centers with a couple of airlines this morning, and one person commented directly, this is the cleanest tuesday i've ever walked into. there's some rain tomorrow, there's some snow in the denver area on friday but on a busy travel day, which is really the sunday return, things are looking a little bit better so there will be other disruptions. i came back to the east coast from the west coast last night i crawled into bed about 2:00 a.m. a slight delay turned into a longer cdelay. you always have issues i really, really implore people. it's funny how many people -- we think everyone travels, but not everyone does. so simple tips

most airlines have an app. and that app is a personalized service to you that gives you good updates you can see where the plane that's coming in is coming from and whether it's going to be late the app, a little patience will gong a long way, because again, the weather is just has been very difficult to forecast, for sure >> oscar, we're just going to do as a news you can use segment. how early do you really think that you should get to the airport, for real, not like the official thing, but what you think. both with bags and without, and let's say you're sitting in the back of the bus, so this is not a business class or a first-class thing. what do you do >> i think if you're -- it isn't so much -- if you are an infrequent traveler, you don't travel much, you don't know what airports, you don't -- i would get there early to give you plenty of time to get through whatever might be an issue if you're a seasoned traveler and most of you are and you have the app, you know that answerby

yourself i will push it a little bit more than others, because i can see where my plane is -- >> what does pushing it mean, oscar? >> well, because, sometimes you will have significant other that will be more anxious, and that's the push that will lead to the shove that will get you to the airport. >> is pushing it an hour, arriving 45 minutes before hand? what are we talking about here >> i would say no less than an hour you need to be there an hour before your flight is scheduled to kpdepart is minimum. an hour and a half, before two hours, unless it's international, there's really not much tsa is ranked up for this and will get you through security. i don't think it has to be that. >> two other quickies and becky has some questions, too. one is, sometimes you'll look at a flight aware or one of these other kind of apps, and it differs with what the airline is

actually telling you i found that flightaware is oftentimes more accurate should it be and if, in fact, your flight gets rescheduled or something happens, is there a phone number you can actually call? because sometimes you get on the app and you're trying to do it or you're on hold or trying to get in these crazy lines so flightaware and the rebooking situation. >> i'll speak about united specifically, on the united app, the "where is your plane currently" tab is a flightaware app. we're trying to rid yourself of the decisions or concerns of multiple and variable decision points oftentimes, calling someone is going to be difficult, because again, you saw the numbers, there's 55 million people traveling and it's going to be a significant issue. so your app is your best bet there are some reconciling items and so get to the airport, give yourself plenty of time, depending on who you are and how often you travel, and i think, just being patient and aware

that things are going to happen. and it's just as simple as that, really it's difficult, because most people don't fly, as you know. so it is a concern and the media, we talk a lot about the concerns, but i can tell you from this week's perspective, the weather is looking pretty well, and other than that, we're hoping to get everybody to our happy thanksgiving >> hey, oscar, i've got a question for you, i flew last week i was in business class because it was for a work flight and they asked me to buckle my shoulder strap before the flight took off, made sure, said, it's very important for your safety i fly in coach a lot, too. there's no shoulder straps back there. is this the case of a "titanic" situation, where we only care about the first-class passengers, or is this a situation where in the back you're so crammed in, you're not going anywhere anyway. >> my, my, a steerage question >> yes, what's the answer? >> the answer is simple. i think the seats are built differently up in the first business class cabin

>> so it has because you're crammed in so tight. >> no, no -- >> you're packed in sardines back in the back, and you're not going anywhere, anyway >> like an egg carton. >> there's no good answer to this >> no, there isn't but it is a function of the seats, the dynamics of that. it's a mechanical issue. >> i'm not sure i'm buying it, oscar, but you're lucky, we're out of time. >> all right >> oscar, thank you. have a happy thanksgiving. >> to all of you as well bye-bye. >> thanks. all right, coming up, zoom posting better than expected third quarter results. we'll break down the numbers with cfo kelly steckelberg as we head to break, here's a quick check on the furutes, red across the board. "squawk box" coming right back my mom's life is the most important thing to me. hi mom! i called my mom, "i have this gene

and i think you need to get tested." she feels like it was truly lifesaving.

good morning futures pointing slightly lower ahead of the opening bell on wall street, but the s&p 500 and the nasdaq riding five-day winwi winning streaks. and dow has been up six out of the past seven sessions. in focus this morning, retail earnings and plenty of them. we'll bring you the key takeaways from lowe's, best buy, dick's sporting goods and others and the state of the meltdown at openai he says the clear winner in all

the drama is none other than microsoft ceo satya nadella. the final hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm joe kernan, along with becky quick and andrew ross sorkin we do have some red across the board, as we just noted before we went to break, before the 8:00 hour, down about 50 on the dow. nasdaq down 37 treasuries well behaved, the 10-year at about 4.41 i think this morning is it 4.41 >> it is a mixed morning for retail let's get up you up to speed on what we've been hearing from some of those home improvement

companies. lowe's lowering its full-year guidance after customers spent less on do-it-yourself projects. third quarter sales fell nearly 13% year over year lowe's earned $3.6 a share in the third quarter. it's not clear yet whether that's comparable to the 3.03 that the street expected, but the real news was the outlook. they lowered their outlook, and that's why the stock is off about 3.8% best buy also falling after the electronics giant cut its full-year sales outlook. earnings per share beat estimates, but revenue came in below expectations best buy also lowered the high end of its profit guidance and said that it expects fiscal year 2024 comp store sales to drop between 6 to 7.5%. that's worse than its previous guidance of 4.5 to 6% decline. now on the plus side, dick's sporting goods is jumping. that company raising its full-year guidance after beating both top and bottom-line expectations dick's said that it's excited

for the holiday season after seeing strong back-to-school sales, and that stock is up by about 8.4% but joe, if you look at those first two retailers, lowe's and best buy, you're talking about big-ticket items that had been under pressure everybody bought all the tvs and washing machines and refrigerators that they needed during the pandemic, so you are seeing some of that demand that was pulled forward for some of those items. >> last time we were talking a couple of months ago about dick's, it wasn't positive >> i forget what it was, but the stock was down as a result and that was -- it must have been last quarter. >> i just remembered -- >> what? what happened? >> they had to do a shrinkage and it turned into -- let's talk markets and -- yeah, let's talk markets and what the options markets -- you forgot, that's what it was about. and we -- because we're like 4-year-olds, we had trouble talking about it >> let's get to the november

rally. joining us is amuy woo silverma, in studio. and you know what i'm hoping that i can -- since you're here and i can actually talk to you, aisle going to understand all of this >> you definitely are. >> i understand a lot of it when you come, but you're so good at this and it is somewhat esoteric, obviously, the options market. and your point is that people are asking you now this rally. okay what am i supposed to think of it in terms of what options are telling me to think of it. because they don't trust it, they think it's kind of spotty, not going to last. and you're telling them that, in fact, the options market says there's something going on here. >> it has legs and upon that, too, it also has breadth so, you know, look the options market is really good at picking out where there's fomo so even if you think back to amc or gamestop or nah vidia, the options market tells you when

people starting get that fomo, and exacerbates momentum for a while, right now, what we are seeing is there's really an inflection point in the small caps. so the russell 2000 etf, we're seeing historic bullish sentiment. and this is something where small caps kind of has had fits and starts, right? we've had a lot of strategists say, you know, that the time to buy small caps hasn't really worked, kind of the last few years. and essentially, what the options market is telling you this time is that you're also seeing that fomo there, which would be a breadth argument to the market, that's been very top-heavy. >> it would be -- it would neon as you say, that the rally is broadening out, but it's also broadening out, isn't this end cycle stuff, if it's -- i mean, we were just showing a bunch of meme stocks. when you get bullish sentiment there, is that more towards the beginning of a move or towards the end of a move? >> so i think two things are happening in terms of the

nuance the first is, i think people when they look at this rally, they've said, look, it's so low-quality. it's very squeezy, right but the reality is, and this is from our equity strategist, if you look at the names within the russell 2000 themselves, their balance sheets have gone a lot stronger and when you look at their debt maturities, where that maturity wall is, it's actually 3 to 4 years out. so i think there's this misunderstanding of, are we talking about this bucket or that baucket? the other thing is, megacap tech has to remain okay and the options market is also saying that the market sentiment hasn't waned it hasn't changed since nvidia, but it hasn't waned. that would concern me because of the heavyweightedness of the tech, but that hasn't changed. >> so in your notes, you used -- squeezy. and by that you mean, that some of the moves higher are seen as

because -- it's short, people are getting squeezed is that what you mean by -- >> yeah. >> if the fundamentals are improving and the debt is -- you said five years out, that's not what it is and it's actually some underlying strength, not just caused by short kcover. >> i think the problem is, both are happening. when you look at these most-shorted baskets, they are also up. when you look at, we have a low-quality basket that we track, which is essentially negative free cash flow, negative net income, high debt-to-leverage, those are also rallying, very similar to what we saw at the beginning of this year, but what we're trying to say is, yes, those things are happening. however, fundamentally, you are also getting these shifts in the higher-quality names, too. and it's very, very bullish and very indicative within small caps, specifically, to a point where we haven't seen this level of bullish sentiment in the last five years and we have seen that in megacap tech, but went seen it in the brett that you would see in the russell 2000 so why is the market so unloved?

the recent rally, why is it so suspect to so many people? >> two things are happening. one, especially in our market, it concerns people in general that there's very little hedging, so there is this complacency of the market, that makes folks ask, why are we so complacent when you look at tail protections, just a market drawdown, how much does it cost to protect we're below levels we saw since october 7th, when the israel/hamas war started that's the market telling you that it's not even pricing in that risk at all so i think what happens is, you know, you do get these kind of like, call it like may 2020-style, like a lot of fomo on one side, call demand, and also the lack of hedging and people ask, how concerned should we be that that doesn't exist. >> does that lead to massive volatility is that -- if you have no hedging built into it, and then suddenly the situation changes over a day or over a weekend or over a holiday period --

>> yeah, so, look, you know, i feel like sometimes as a derivatives person, your job is to think of like -- you're like eyore, basically whatever the worst-case situation is, that's what you lay awake at night thinking about. and volatility is very suppressed on top of that, there's no hedging, hedging hapt worked at all. the market was down 20% last year, if you hedge that market, you're actually down 21% that's kind of a fail from the options market >> kind of >> if you're a risk officer and that hasn't worked, it's hard to say, i'm going to double that up you get these events where there was very small volatility -- >> ballmageddon. people call it that, february 2018 that is a tail event that i think folks are concerned about and tails are very inexpensive it's not the most likely

scenario, but that's the point the unknown unknown is very inexpensive to capture and we see some funds thinking about that for 2024. >> i always like when she -- it reminds me of freshman year in college, you're taking an introcourse. and you're like -- and then senior year, you're finally in that ap course in like organic biochemo, and you pick up a few -- but if someone's tuning in at home and they're not big cnbc viewers and amy's there, it's like, oh, my god, but if you are advanced, this is like the advanced segment >> the volmuget don is -- >> everything. the tails. >> look out. >> i've been doing this for a long time and i have to listen very closely i understand, but i would hate to tune in for the first time, i would, but it would be a little -- >> retail has gotten very involved in options. >> this is very arcane, but very fascinating to -- >> it can be the tail that wags

the dog that's the thing with the options market it really can be >> and it's better to have you here, so that i can, you know, be in awe. thank you. >> thank you >> joe, when we come back, i'm still learning -- i'm still trying to keep up. we'll broaden out the markets compensation and talk tech with evercorps's mark mahaney and the latest on openai straight ahead as we head to a break, take a look at a few key stock movers china's market regulators saying they have approved broadcom's acquisition of vmware, and chipmaker analog devices down after posting slight revenue beats, but giving a first quarter outlook below analyst expectations that stock up out ab2% right now. you're watching "squawk box" and this is cnbc the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life.

(♪♪) business can happen virtually anywhere. (♪♪) but there's nothing like being there. at national, you can skip the counter... and choose any car in the aisle... even manage your rental right from the app. so you can give some quality time to a quality cause. swing by to see one more customer... [audience cheering] and really get down to business. go national. go like a pro.

airlines affecting record travel demand this thanksgiving. our next guest covers internet stocks and just days ago upgraded expedia for the first time in a decade raised the price target to $200

from $135. joining us right now to talk about that call and of course some of the key mega-caps like meta and amazon, maybe we can get into microsoft and all of this, mark mahaney, evercorps isi, head of internet research first, expedia, given the holidays and given also your call here, you haven't loved this stock, but now you do >> well, i think three things that are interesting about the set-up here. first, the valuation, it's been cheap for a while, but it started cheap right here it's practically ten times earnings second, i think you've had a bit of a change in fundamentals, in part due to new management, in part because of easing comps i think you have an asset that can show exciting revenue growth and expanding margins into next year third, there's this convergence. this used to be the clear underperformer versus airbnb but i think the growth rates will converge next year.

so you have a 30 p\e, airbnb, that's booking, growth rates are converging and i think the multiples likely will too. that's why we like expedia >> what do they have to do in terms of picking up market share, though? >> i'm not sure they can pick up market share and i don't think you have to at ten times earnings in order to make stock on the long side. what i find interesting, they did revamp, rebuild their tech infrastructure the history of expedia is one of a company that's made a lot of acquisitions and bought a lot of brands, whether it's hotels.com or orbitz, vrbo used to be another name for it way in the past they bought these assets, but never integrated on the same tech platform. if they roll out things, they had to redo it each time it created a lot of waste and inefficiency in the business and took them almost years to finally integrate all of the tech platforms they finished that just about a

month ago. that should lead to better execution next year. that should at least allow them to stabilize their market share. >> let's pivot and talk about amazon and meta. but i'm curious if you talk about them in the context of what we're seeing happening with this openai saga and drama and soap opera that's emerged and whether you think this creates an opening for a company other than microsoft >> i would think so. i think genai is a big enough of a trend you'll have a lot of winners in here. i know the markets kind of assigned two crowns here, two kings, two queens, whatever, to nvidia and microsoft, but this is going to be -- there's going to be broad-based applications and i think actually, aws and amazon are going to be one of the biggest beneficiaries of the infrastructure layer and i think for a lot of reasons that have been kind of hidden in the numbers, but i think it's one of the reasons you'll get accelerating growth out of amazon and that's the cloud computing part and i'll throw in the advertising business, that will

accelerate next year as they fully monetize amazon prime, and throw out the retail business, too. i think that can accelerate next year, too. it's a really nice set-up for a company that also is going to hit peaker, higher and recorder and recorder operating margins and profits in '24 and i want to be long the asset when the stock price is still dislocated ai is definitely part of this. and meta is a wonderful example of the actual application layer. so we're waiting for all the applications of gen ai, they're right here they're right in front of you and you can see how the user interface has become a lot more personalized, bringing information and data to you and experiences from across the internet and it's also made the advertising experience a lot more effective, too. the return on ad spend for marketers on meta is a group, because of jenai applications, and there'll be more coming. these are two good ways, i think to play gen ai that the market hasn't appreciated enough yet. >> and mark, amazon at $145, if we're having this conversation next thanksgiving, where do you

think it sits? >> i think we're closer to $200. i think we have 30 to 40% upside i don't know if you get back to the pre-covid multiples. it's a very different interest rate environment now, obviously. but i think can you -- is there a path between 13 times cash flow and 20 times cash flow, where it was before? yeah and somewhere in the middle there, and that's a couple of turns. and then you've got this growth with this company that's kind of went as -- this was the trough year for amazon. 2023 was the trough year in terms of margins, revenue growth multiple, and that just creates a lot of upside for investors. and i know we've already had this kind of pretty nice move off the bottom, but i think there's a lot more -- the fundamentals haven't peaked. they've goot a lot of room for recovery >> before we let you go, do you have a take on microsoft >> no, i don't i don't cover microsoft, but you know, i just think that the broad trend of generative ai, there are not just one or two

winners in this space. there are going to be a couple of really big winners. and i think you can find those winners in the application layer, that's meta, infrastructure layer, i think aws will actually absolutely be in consideration for that. microsoft has done a wonderful job, and there's a couple of companies here, handful, maybe tech companies that will really be good long-term investments off this theme >> mark, we'll leave it there. appreciate it. talk to you soon happy thanksgiving >> you too >> thanks, andrew. coming up, former fed vice chair for supervision, randall quarles is going to join us to talk rates and inflation plus, a first on "squawk box" interview with the cfo of zoom i'll bet you it's on zoom. that following third quarter results. and then next, the very latest details on openai and the status of former ceo sam amaltn. stay tuned you're watching "squawk box" on cnbc

only sleep number smart beds let you each choose your individual firmness and comfort. your sleep number setting. and actively cools and warms up to 13 degrees on either side. and now, save 50% on the sleep number limited edition smart bed, plus special financing. i was on a work trip when only at sleep number. the pulmonary embolism happened. but because i have 23andme,

i was aware of that gene. that saved my life. when you think of investment risk, do you consider climate risk? changing weather patterns are impacting the way we live and the value of businesses large and small. this can mean disruption to supply chains, changing demand for products and shifting regulation. what does this mean for your business, your clients, and your investments? ice offers data and markets that can provide critical insight. manage your climate risk with ice.

welcome back to "squawk box. the futures continue to be under a little bit of pressure this morning, red across the board with the dow now down a little less than it was, actually but nasdaq off 36 and the s&p, as you can see, down about 6 or so >> some of the latest developments in the openai saga, in his first press interview since the story broke, microsoft ceo satya nadella told cnbc's

jon fortt that oversight changes need to be made at openai. >> i think it's very, very clear that something has to change around the governance, and if that's sort of, you know, we'll have a good dialogue with their board on that. and, you know, we'll walk through that as time evolves but the most important thing for me, for customers to know is, today, we have all the capability >> nadella did not clear up the confusion about where openai's former ceo sam altman and cofounder gregg brockman will end up last we heard, they were slated to begin ai research work at microsoft. meantime, the vast majority of openai employees have threatened to leave the company and join altman at microsoft until o openai's board reresigns and nadellana del altman is reinstated bloomberg reporting that openai investors are trying to bring altman back, while reuters says

some investors are considering suing openai's board it's all of those investors that weren't microsoft who feel like they got completely left out in this our next guest writes that the drama has produced one clear winner that is satya nadella. joining us right now now is reid albert gotti, technology editor at semifort. and i will say, satya nadella performed admirably well in terms of a crazy situation that he wasn't anticipating, didn't get a heads up about, and managed to kind of pull things together so that microsoft was not going to be left in the lurch. we still don't know where the end result is, but he was, i guess, appropriately, flexible, given the situation. >> oh, yeah, absolutely. i mean, this was really bad for microsoft. it kind of stakes their future on this technology, this company. and it looks like it was all going to be, you know, come crashing down. and then somehow, he sort of maneuvered where this board that caused so much trouble for him was basically boxed in and i think they have two

options. one is to either resign and have everything go back to normal with maybe new governance, or just kind of seed the company and give it to microsoft, which would be kind of unprecedented i mean, $80 billion company essentially just transferring ownership without any financial transaction. it's really remarkable >> yeah, i mean, look, this was a weird situation. the one thing that's kind of made clear to me is that openai is no longer going to be a not-for-profit company even if you try to put all the pieces back together, satya nadella himself saying, they don't want this to happen, won't facilitate this happening, unless there are changes in the governance and that basically means, you've got to have a profit motive in mind when this is happening. how do you remain a non-profit or a not-for profit, a 501c 3 when this is clearly about the money and the investors and we put up billions and billions and billions of dollars for you to be able to do this work. you're going to have to keep us in the loop.

>> i don't know if it necessarily has to not be a non-profit anymore because i think -- >> it already is like the profit motive just won. you know, the not-for profit, the non-profit board said, we're going to do things this way, and the use-oinvestors said, no you not. >> i think it matters who's on the board. reid hoffman was a board member at openai and he was kind of forced out because he helped found this other competing ai company. i think it matters who is on that board it's kind of a tricky thing in the value, because there are a lot of people who are, you know, very sort of capitalist, you know, pro-growth people in the ai sfindustry, who care deeply about this ai safety goal that the board was in charge of overseeing so i think there may be some kind of happy middle there, but i think it's very likely that the company will just cease to exist. or just kind of fizzle out, you know, over time, as they lose

employees and funding. >> i see it a little differently. i think this is proof that you're not going to have a non-profit in theory, in reality, whatever you want to agree, whatever you want to call this this is something that costs tens of billions of dollars to put together to this point, openai has been able to say, you're going to give us the money, but you're not going to have any control or say after that and i think this just lays out what an untenable situation is for the people who have been putting up the money they're not going to look at this as basically a donation anymore. that they want to be able to have skin in the game and say, this is how things are going to be controlled. so you can call it a 49% stake, you can call it whatever you want but i don't think you put all the pieces back together and say, we're just going to pretend that the last four days didn't happen >> right i well, 90% of the employees or something have now signed on to this letter saying, they're thinking of leaving, right so i think they hold a lot of the power here, too. you know, i think the other thing that's sort of interesting here is that this board, which

is in charge of like safeguarding this technology for the good of all humanity, is part of this effective altruist movement, right? which is very interested in ai safety and has sort of fumbled this and i think there's now this question of like, are these the people who we want safeguarding this technology? and that sort of brings up this regulation question that sam altman has been harping on, right? do we actually need outside regulators to come in and sort of be in charge of that goal i think that's another interesting aspect of this whole thin thing. >> how quickly could that happen we've seen some talks around regulation taking place in washington but even if you got everybody in washington on the same page, which i think would be pretty difficult, you then have to consider, this is -- it's not just the united states you've got to get china and lots of other places onboard, too >> yeah, it's a really tricky thing, right and i think, you're absolutely right. i think it's -- i wonder if this will actually move the conversation, or what effect

this will have on the conversation in washington, as they kind of look over here. we're hearing that, you know, people in d.c. are thinking, do we want to keep, you know, talking to these people? it's obviously not a very rational or, you know, really effective or altruistic group, really >> yeah. it just -- it lays bare a lot of the divisions that were kind of there in theory before, but i think it made all of us address it front and center, with the turn of events my guess is, you've got entrepreneurs and founders in silicon valley that are maybe thinking a little differently about things, too. just in terms of where the control goes and how you maintain control >> yeah, people are really -- i mean, this has really thrown silicon valley for a loop. and people are gripped by this whole thing. it has everything, drama, high stakes, and i think, you know, there's a mystery here, right? and part of that is, you know, adam deangelo, who is one of these four remaining board

members who kind of, you know, was involved in this coup, let's call it. and he's the ceo of quaorra, an early facebook employee, a silicon valley veteran he's not talking to anybody. i've talked to people who know him really well. he has stayed completely quiet on this. no one really knows exactly what happened and that's another sort of crazy fact here. that's just this mystery >> there's definitely something. i mean, i thought it was interesting, satya nadella, when he was pushed on this idea of, do you know what happened? he spoke pretty clinically and basically said, no one on the board told me directly anything that's happened. that sounds like very specific language that maybe he's heard some other things, even though the board hasn't told him directly does it matter, what caused all of this and what happened? what's your instinct what's your gut, as somebody who's covered this so closely? >> i think it depends on what that thing is, right i think it's likely it doesn't matter, because i think this may have been simply, you know, some

sort of disagreement that just got completely out of hand and was totally mishandled on the other hand, there are these conspiracy theories, right? what did this board see? you see people on the ai safety camp sort of wondering, did they find, you know, artificial intelligence and freak out i don't think that's what happened but i mean, it is just this sort of cloud looming over this whole thing is like, what do we not know about the decision? >> obviously, lots of answers that we're still awaiting. reid, let us know as you dig into this more deeply and find out more, because we're waiting to hear, too thanks for your time today >> thank you andrew >> thanks, becky coming up, former fed official, randall quarles will weigh in on a regulator's push to shore up past cushions at the bank and his outlook regarding some key kpeconomic reports we're coming right back.

stealing their basic supplies. with cirkul, your water is deliciously flavored at the turn of a dial, with zero sugar and zero calories. and cirkul has over 40 flavors, so your water can be as unique as

you are. try cirkul. your water, your way. now with even more flavors. available at walmart or drinkcirkul.com. my mom's life is the most important thing to me. hi mom! i called my mom, "i have this gene and i think you need to get tested." she feels like it was truly lifesaving.

welcome back to "squawk box" right here on cnbc the futures down across the board, 55 points off on the dow. 50 points off on the nasdaq right about now. we've got a market flash for you. take a look at shares of

american eagle there, plunging, despite reporting record third quarter revenue and strong operating profit also raised its full-year revenue forecast, but the company's guidance for operating income falling short of analyst estimates. it also noted some higher expenses in the quarter, including higher wages and incentive compensation versus a year ago quarter and that stock, you can see it there, off over 5% right now, becky. >> andrew, thanks. investors set to gain new insight into the fed's thinking when minutes are released this afternoon. joining us right now on that and the current push on u.s. banks to hold more capitol, is former fed vice chairman for supervision, randy quarles let's talk through first of all what we should be digging into, the fmoc minutes what we should be on the lookout for. what are you going to be watching >> i think the key issue is how

the fed is resolving the uncertainties with which this began. at the outset, there was good reason to think that interest rates wouldn't have to rise as high as they had in the past, and good reason to think they wouldn't have to stay as high as long and the first of those hypotheses is playing out. interest rates have been much lower than traditional rules would have suggested it's come down from over 9 to averaging around 3 and coming down further but it's still not durably at the 2% target, which would suggest that the second hypothesis, that it wouldn't have to stay high for as long was wrong. historically, it's taken a year or two for monetary policy to work its way through the system. it seems to be taking that long. so what you want to look at is how is the fmoc itself thinking about these two issues are interest rates as high as they need to be? i think yes. would they take longer than had been thought and how much longer that's where the issue is and how the fmoc is thinking about that should be revealed by the

minutes. >> randy, the reason i really wanted to have you on today was talking about something that's a little wonky, but i think is really important tour viewers. and that's what's happening with these new requirements for the banks to hold more capital this is all happening under a supervisor who's only the second person to have this job since the role was appointed you were the first one, after the role was appointed post dodd/ dodd/frank it seems like the banks are pushing back really hard on this, it seems that there's no kind of you mean namty the risks that it could pose internationally or the risks it would pose if you didn't have that capital in terms of something happening again. can you walk through your thinking on where things stand with the banks how much capital do you think is the right amount >> sure. the fed is undertaking this in response to an international agreement called balz 3, which is an international agreement on

capitol. this is the last measures that the fed was in the process of implementing but purportedly in response to sb svb -- >> silicon valley valley bank's explosion, right >> exactly in response to the stress on the regional banking system earlier in the year, the fed has greatly increased its response it's requiring up to 75 more capital. and that will increase the capital costs of banking activity generally and in particular, there are aspects of this proposal that would increase the capital cost of certain relatively safe fee-making businesses. firms like morgan stanley have gone to great lengths to make a much larger share of their activity they're, therefore, much more stable, but we're now proposing to significantly increase the capital cost of those activities there are aflt of issues with

that, which is the reason it's so controversial the large banks that have seen their capital proposed to be raised so significantly weren't the problem in the spring. the constraining effect of those capital costs will reduce the financial system's support for the economy, in a time when many like me think that a recession will be coming upon us as a result of monetary policy. and there are other issues, as well so, a dramatic increase like that will drive activity out of the relatively strong and regulated banking system into the non-bank system. the non-bank system is an important part of our financial system it has less capitol. it will drive activity out of the united states, foreign banks, especially european banks, aren't doing this they aren't requiring such high increases in capitol for their largest banks. so we're unleveling the playing field internationally. and it will drive activity out of these safer activities such as wealth management by increasing the capital costs of

conducting them. and none of those effects, pushing business out of safer activities, out of the country, out of the banking system is really good for financial stab stability. >> when the board passed its draft proposal on this, it passed, but only by a vote of 4-2. there have been serious reservations raised by just about everyone, including chairman powell. what do you think ultimately happens? is there a watered down version of the rules that get put in do you think things are rolled back how do we end this >> that would typically be the process. the fed has put this proposal out for comment and comments are coming in. and during that period, you know, the staff and the governors will review all of the input, and also, there'll be a lot of interaction amongst them in order to resolve some of these concerns and the question

is just exactly how much will the fed down-calibrate this proposal it is so -- you know, the 20% increase in capital costs is so significant, you would have to down-calibrate it a lot -- i mean, the europeans are essentially not increasing the aggregate amounts of capital in their system by very much at all, at most by single-digit percentage points. so stld require a significant change to level the playing feel >> if this was an international agreement, how come every country is kind of looking at it differently and implementing it differently? is it just a different interpretation of what we agreed to >> in some cases, it's a different interpretation in some cases, the international agreement is specifically stated to be a minimum and countries are free to go above it -- in the first, this is the last piece of balz 3 that's being implemented, and the first part

of basel 3 has already been implemented, and the u.s. succeeded the implementation of the first part of basel 3. when i was there, we recalibrated that modestly to result in a -- more of a tailored capital requirements for banks according to their size and a lot of that is also -- would be removed we this proposal zplp we have to run, randy, but if it's implemented as proposed, your concern is it does what to the economy what kind of a drag? >> you know, i think it's the wrong direction for what we ought to be doing for the financial system here. now, it would come with phase-in proposals, but the problem with phase-in proposals to say, you won't actually have to have this capital for a while, which is that if the market knows the regulators will require this capital, it will accelerate the period in which banks have to raise that capital

you have the immediate contractionary effect, in addition to the financial stability effects that are negative by pushing activity out of the u.s. and out of the banking system >> randy, thank you. randy quarles is the fed's former vice chair for supervision. we appreciate your time. >> thanks so much for having me. >> coming up next, cfo of zoom breaks down her company's third quarter results. the shares zoomed higher, initially on the numbers, but have come down in fact,owheve n ty' turned negative stay tuned much more "squawk box" is on the way. (♪♪) the first law of thermodynamics states that energy cannot be created or destroyed. (♪♪) but it can be passed on to the next generation. (♪♪)

(sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ meet gold bond daily healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers & 3 vitamins. and... new gold bond healing sensitive. clinically shown to heal & moisturize dry, sensitive skin. gold bond. why choose a sleep number smart bed?

because no two people sleep the same. dry, sensitive skin. only sleep number smart beds let you each choose your individual firmness and comfort. your sleep number settings. it's so smart, it actively cools and warms up to 13 degrees on either side for your ideal sleep temperature, and effortlessly responds to both of you. for your best sleep, night after night. and now, save 50% on the sleep number limited edition smart bed, plus special financing. shop for a limited time and sleep next level. only at sleep number.

welcome back to "squawk box. zoom posting better than expected third quarter results the company also raising its annual revenue and profit forecast shares popped initially, but you can see they have retreated pretty significantly i want to talk about that. also, the company has a relationship with openai conversation that's in the midst of the news right now. joining us first on cnbc is zoom's cfo let's talk about the earnings first, kelly, because they were better than expected, but has i just mentioned, you've seen a reversal in the stock, which actually, you know, picked up right after that news and has now shifted. what are you hearing from the investor community about all of this >> good morning, andrew. we were very pleased with our q3 results. as you said, we beat on both the top line and the bottom line we added amazing achievements

like zoom crossing over the 7 million seat mark, as well as ai our ai companion has been out for about two months and we have seen over 200,000 of our accounts activating and using that feature i think what everybody is looking for, though, is reacceleration of growth in both our enterprise business and stabilization and online we've made a lot of progress in the online segment of our business we've had the lowest chush rates we've ever reported in q3. so really looking forward to, as we're moving into fy '25, starting to see stabilization and reacceleration in the business >> what are you seeing in terms of hybrid work and where that's going, married with or as you look at the competitor set, microsoft teams coming on so super strong >> what we hear from our customers is they're looking forward to welcoming their employees back and doing it in

the most effective and productive way and zoom has all kinds of amazing solutions for that to support them in hybrid work, we have zoom rooms, but we also have things like workforce reservation, we have remote receptionists, way finding, the ability to reserve your desk and also reserve lunch, which we all know treats and food are very important to having happy employees in the office. so when you bring that all together in our consolidated communications and collaboration platform, it supports what we're calling the employee experience part of the platform, combining that with the customer experience part of the platform, and you have a complete view of zoom and as a reminder, we are the only platform that has been natively built and is seamlessly integrated across all aspects of these futures and functionality, and that's really a competitive differentiator for us, when you put us up against any other platform out there >> we had mentioned openai at

the top of this, you have a partnership with openai. i'm just curious what your reaction was when you first heard the news about sam altman, effectively being pushed out of the company and all of the drama that's taken place over the last several days >> we do work with it's an important part of the fed rater approach we're taking to ai, which means we're working with several models to ensure we're getting the best performance. we work with anthropic, meta and we have our own model as well. i think it's been a very interesting development that we'll all wait and see what happens there from a governance and board perspective. >> does it make you rethink -- does it make you rethink the relationship or rethink how you consider partnering with companies that may not have the same type of governance that a

traditional business would in this case, a business where a not-for-profit overseas effectively controls the company? >> i think it really highlights the need to ensure that you have multiple source vendors for critical functions such as this. that's exactly the approach we have taken to ensure that no matter what happens with any one of these partners, we have the ability to provide uninterrupted service to our customers that's what we're always thinking about, how do we take care of customers in the best possible way i think the approach here is going to work. they have to play forward how ever this is going to work out for them we're focused on making sure our customers have access to their services no matter what happens. >> in a market share issue, how you think about a competitor set at this point. i mentioned microsoft teams because it's a product that's given away largely with so many of the other suite products that

microsoft has. people who are deciding to buy your service have to make an affirmative decision that this is what they want to do. >> what we have heard from customers is they really love zoom they started off seeing how we were able to transform their meeting experience they trust us then to do the same for them with zoom phone. we have a relatively new contact center product as well which we announced on our call has over 700 customers in a very short amount of time really exciting there. aim names like dropbox and major league baseball using contact center so they see the value of having a platform their employees love, from a contact center their customers are engaging with. yes, they make an affirmative decision to choose zoom. it's a perception of free.

nothing in the world is free we all know that yet people see a great deal of value. we're very competitive from a cost perspective total cost of ownership when customers are switching from other legacy on prem type providers like cisco, we often see they have a great amount of savings as well as productivity enhancements in their employee base. >> kelly, we've got to leave it there. appreciate your time we'll keep an eye on the stock and look forward to talking to you next quarter >> thanks, andrew. when we come back, we'll take an in-depth look at some of the key retailers thatepte rord results this morning don't go anywhere. "squawk box" will be right back. i was on a work trip when the pulmonary embolism happened. but because i had the factor 5, which showed i had the genetic mutation, because i was aware of that gene,

that saved my life. i would not have been able to meet my new granddaughter. i truly believe i'm here because of 23andme. you can't buy great conversations or moments that matter, but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. t. rowe price, invest with confidence. experience the art of high pressure can help you build brewed coffee and espresso with the l'or barista system. enjoy richer, bolder flavors complete with velvet smooth crema. now brewing peet's coffee. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it.

says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

lowe's, best buy and dix sporting goods among retailers reporting results earlier this morning. check out the stocks joining us with his thoughts, john san marco, newberger berman portfolio manager. i think i want to start, john, with lowe's. as you point out, it's still like a discretionary shortfall for stuff that happened, i guess

during covid we're still finding out a lot of that was paid forward. those numbers down 7% as far as comp store sales that's weak. >> yeah. thanks for having me on. that is indeed week. the i'm employed 4q guidance as just as weak as the third quarter which raises questions about 2024 numbers which are still probably too high. to your point, we're well into this home improvement recession, even without a greater macro recession. this category has been in decline, been in normalization mode for over a couple years i think we'll likely start to get to the end of this cycle for home improvement as we move through 2024. >> it's not the professional so when you had a lot of time and you were home from covid, you took on these big things -- i didn't, but people know how to do stuff like that tooshg on those big projects that's just not happening

anymore. >> yeah. i think that was a big parse of it, was the amount of time the do-it-yourselfer took on things. that's more of a cyclical business on the other side, the professional part of the business which is about a quarter of lowe's revenue, that has hung in much better. lowe's had pretty low-hanging fruit that they've done a good job going after. the professional side grew over the quarter for them overall it's a better category to begin with, serving the pro. >> and good cost controls. that's not going to make anyone that excited how about dick's what is dick's doing right >> in the quarter, just about everything this is 180-degree turn from a quarter ago. they're benefiting from having clean and fresh inventory but operating the business with better visibility around

expenses we didn't get the lever surprise or the shrink surprise to throw off this quarter for a retailer, life is a lot easier when you can deliver same-store sales which we got from dick's this quarter all of a sudden, it feels like they have their hands around their business quite well. >> kind of interesting how that can happen so quickly, like you say. it has to do with fresh inventory, having things people want can you comment on best buy in 30 seconds, john is that possible >> we have a real similar discussion as we would with home improvement. this was a super hot category. the consumer overconsumed it, and now the consumer is underconsuming it and best buy is pushing boulder uphill >> thank you, john happy holidays, happy thanksgiving we're done

we'll get a final check quickly on the markets the futures -- this is -- they've wore denned a little down almost 70 points. nasdaq is down 70. we'll be here tomorrow >> thanksgiving eve. it's thanksgiving eve eve right now. >> there's excitement brewing. there could be a long weekend in str for some of us. >> andrew and i are here on friday. >> both of you are >> make sure you join us tomorrow "squawk on the street" is next gd tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber the nasdaq 100 at a 22-month high, reports of a possible israel-hamas cease-fire and hostage release. of course, nvidia tonight.