good morning, everyone. i'm becky quick along with andrew ross sorkin and joe kernan. it was chilly out there in november, but it was not compared to what maine saw over the weeken with snow. we'll check in with our colleagues at the weather channel in 15 minutes. but first, investors are ready to open the books on november today. the strongest period for the year on gains. since 1928 the s&p has risen a 3.4% over the november to january stretch. that's nearly double the average gain for the three-month period overall. the bullish statistics and details in a wall street journal story today. the stocks are on a hot streak with the s&p and dow closing october at record highs. the two indexes turn in their best two-week period since december 2011. but the markets haven't felt so

rosey lately with volatility back with a vep jengeance. the dow is up 4%. the s&p is up 5%. and the nasdaq is up by roughly 9%. we have been watching the futures this morning ahead of the opening bell this morning. we do see red arrows with modest declines. the dow futures are just 28 points below future values. the s&p is down two points and the nasdaq is down 3.5 points. over to you, andrew. we'll talk corporate news this monday morning. argentina suspending proctor & gamble's operation in the country accusing them of tax fraud. argentina accuses the company of overbilling 138 million dollars in imports to get money out of the country. they are gaining in mccow with and lists looking to decline year over year. among the reasons, fewer

tourists slowing the economic growth and china fighting corruption. and in a monday morning deal already this morning, the publicis is buying sapient for $25 a share in cash for $3.7 billion. that's a 44% premium with the deal coming after publicis failed on the com-merger. culture issues didn't work and they want to be in the digital space. investigators continue to probe into what caused the virgin galactic spaceship to break apart over california's mohabi desert. among the findings so far, a device to slow the spaceship's descent is said to have deployed prematurely. the spaceship's co-pilot was killed in the crash and the pilot parachuted to the ground and was found alive.

he's breathing over the accident but determined to move forward. >> we have always done commercial spacecraft travel is an incredibly hard project. safety has always been a number one priority. this is the biggest test program ever carried out in commercial aviation history. precisely to insure this never happens to the public. >> and the journal weighing in with an editorial saying things like this when you're trying to do something this difficult or are part of the process as unfortunate as it is. >> there were questions raised. in the past they said this was so expensive. it is the first time they were using a new motor on board.

>> but i read that the journal says it was a structural -- >> some people say structural and others say it's a change in the motor going from rub tore plastics. >> for fuel. but i don't really know anything about this, but part of the question raised over the weekend include things like, should you be doing more non-manned test flights. critics say it's too expensive and wonder if that leads to a push for more difficult things. we'll have more. jane wells will report live from the site of the crash later this morning. another quick deal crossing the tape right now. the lab man is reresponding with $105 a share for labcorp. we'll get the latest and bring it to you later.

check out oil prices because the market has been fascinated with this for weeks at this point. up slightly this morning by 15 cents. you are still looking at wti at $80 and change. 80.69 right now. also check out what is happening with the ten-year note, it's yielding 2.321%. the dollar this morning is up against both the yen and euro. the dollar-yen is at 1.1327. and gold prices at this point look to be barely budging, 1,171.80. stocks as we mentioned, a not-so-scary it man and on the economy we have kevin cummings. director economist at ubs. jeff, we'll start out this morning just looking back at

things harrowing at points, but at the end of the world you saw an amaidsing setback. what happened? >> i was on y'all's show before i left to europe in two-and-a-half years ago. since the october 2011 reversal to the upside, many stocks were at 30% to 40%. so you had extreme oversold condition. you made a bottom and got to bounce back. typically a bottom is due to the dress. does that mean there's a one-off if you missed your opportunity or will the market test the levels? >> tippic lip it will cop sol date for six to eight weeks, maybe not tessa but come down

half the amount of the rally. i don't know if you'll get that. >> what would you tell people at this point, sit sir? >> i do think you'll be up going into the elections. i think if the republicans take back the senate, you'll get a blowout move to the upside at that juncture. i would be selling some trade ing before -- i would get involve d. >> consensus is near 230 so i think it will be a pretty healthy report. we're looking for another drop in the unemployment rate to 5.8%. and that will be real important obviously for the fed and how quickly they begin to normalize rates next year. so i think that right now we're getting closer to that level

where the fed expects to see some pickup in this last week. so this could be an important read from the perspective of how much closer do we have to get to when we look at the year-over-year basis. you are still near 2% whatever wage measure you're looking at. but with the up employment rate dropping to 5.9%, that's the first five-handle since july of 2008. we are probably going to see a further increase in wages. if you look back to the cycle, you didn't pick up in earnings. over the next two years, you did have a two-point appreciate in

wages. so you're likely to see a pickup in wages over the next two months. >> why do so many americans feel like they are not happy with the direction of the economy? >> there are a lot of pluses and minuses that go into adding gdp. you saw two things that will reverl a little in the fourth quarter. you have cut estimates from a little above growth and below 3% on friday to account for that. but i think in the private sector economy, it is taking the baton that we don't need all the assistants from the government sector like the fed and obviously q1 has come to a completion now and the economy

can take off from there. obviously it was as high as 10% a few years ago, but now it's not going to feel that great for those dropping out of the law force. they no longer dropping for work, but the economy seems to be moving in the right direction. >> we are not looking for any kind that things are maybe lukewarm and that keeps the fed in here, are we? >> i think you start on -- i think the economy improves from here and you're north of free gdp. i capitol is all many want to talk about, the u.s. and capitol. i think money is going to come

here and i think we are in a secular bull market with years left to run. >> so even though we have snapped back to these new highs, you're okay with that. it's not necessarily wait for another correction, go ahead and keep putting money into play. >> i would check on a smart term basis, i would take trading positions off the table here. but i think we have another eight to ten years in this thing. >> both of you thank you for your time today. we'll talking about walking a different tightrope this morning. daredevil nick wallenda made it across two towers with the wire 3/4-inch thick. the first part of the act is walking on a 15-yard incline to give him the record for performing the world's highest walk wearing a blindfold for the

steepest incline. my heart was pounding out of my chest as i was watching this last night. i almost wanted to look away. discovery network posted that event. i don't know if you saw it while on the water. but they thought he could somehow -- no, he thought he was going to somehow grab onto the wire. there was a -- literally my heart was -- i couldn't believe it. and some of the aerial helicopter shots and the shots of the lot here. >> i watched the first one and thought, he's doing it again blindfolded? >> and you're worried. >> i watched something that could have had much more

disastrous consequences and i did, that was the jets' game. >> he said prior to getting on the rope, the people are watching because they want to do th that. >> it is an obvious thing to say, not really true. but if there wasn't the risk of that happening. >> since we are a business show. my question is how much should he get paid to walk across that tightrope? i don't know, i looked online to find out how much they pay. >> because it bothers me we celebrate this risk-taking that you could die from. >> he's going the keep doing it until -- >> until something happens, right. >> find out how much in any sporting event, find out what the growth is and whatever is

fair for him. >> what was the total pay? because it was all about him. >> a two-hour live show that works in a rebroadcast a hundred times. you can do it in multiple countries in discovering i was global. this is a conversation i was having with an interesting business in how much you pay for it. >> it only happens every once in a while. >> i'm ann and i'm still pounding, but -- >> last time he said a lot of

time went to -- >> i understand, but you don't need to ask for god's help to not fall off. just don't get on it. >> i think he's got a pretty good idea he's going to make it. i think he feels pretty confident. i think he's really good at it. >> would he be doing this if he didn't think he had a shot at it? >> i think he -- i was wondering if he fell and grabbed onto the rope, he wouldn't have to -- he could have hung for 30 minutes. within one minute they can be on the track to have the pulley system to come flying over. however, that assumes you catch the wire. if it's 40 degrees outside, your hands are cold and you're blindfold blindfolded. >> i will say this, why won't

you attach yourself to it wearing a hardness. apparently there's a dayer in that, too. not a death danger. >> why not a parachute on. >> that's what i thought. >> you see all the wires that are stabilizing it? >> yeah. >> you're dragging effective ly but that can make you lose your balance. anyway, there it is. when we return, gamers getting a first taste of the latest "call of duty" and advanced warefare. that's really fight iing. they both left.

" squawk box" returns in a moment. are we still on for tomorrow? tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. csx. how tomorrow moves. what a day. can't wait til tomorrow.

welcome back. one world trade center officially opens in new york with anchor tenant moving in today. the movie giant will occupy floors 20 to 44 with the first wave of 175 employees arriving at their new offices. other groups of employees are scheduled to move in every subsequent week with the entire move completed by february. the freedom tower stands at 1,767 feet tall.

a lot of november bringing snow to some parts of the country. the weather channel has the latest for us. >> hi. look at portland, maine. things have improved as you are not seeing all the snow that you once saw, which is good news. you need a rebound. you have gotten double digits in the snowfall. this is the earliest we have seen that on record. incredible stuff. bad news is the winds have been pretty brutal. look at the advisories in place. we have several of them because chilly temperatures and a frost advisory are in place for the nation's capital. we have another freeze warning in place, so we'll continue to see that down to north carolina. but how about a little bit of good news? temperatures do eventually rebound, but getting your morning kicked off in the northeast, you have some of the snow on the ground. in some places you have hundreds of thousands of power outages stretching from new york and

maine at the peak there. and still tens of thousands of people in maine as we speak. temperatures are too cold for that. you have got to get the warm-up going because you don't have -- you need the power to help warm you up. unfortunately, a lot of folks have backup of wood there. 36 degrees right now in boston for you. if you're in new york, 39 degrees for you currently but we'll factor in the winds that are going to be chilling you and making you feel it down in your bones getting out and about today. in the northwest, speak iing of the snow. back to you guys. >> the carolinas had 100-year records or all-time records for snow this early, right? >> yeah, all-time records. >> thank you. we appreciate it. i would say something, andrew, it's not warm, it's changed. so it just covers the whole thing, but i have learned my lesson. the constitution guarantees religious freedom.

and i don't disparage anyone's system. it's your prerogative. and "modern warfare" is making a big push to release early. in the movie industry, you can decide what to do with the stock based on what is coming. and if there's a three-month period or a quarter where nothing happens, usually it goes down. this is how we need to decide what to do with the issues, right, eric? >> "modern warfare" is the biggest release of the year, but it is their biggest game of the year. and we do like this company to buy.

stock has been weak of late and a good opportunity to take advantage there. this is just like an iphone or new gaming system, what is new about it? >> i would kind of put it in that context. like we see with movie sequels. it's a developing new system. this is the first game specifically made for the next syst system. >> i'm ignorant. do you play online against people? >> the online element is a very big part of college duty. it's by far getting the most number of people playing online

and that is the perk of the game. >> what does it do and how much did it introduce in the first week? >> well, shipping usually runs around a billion dollars a year for "call of duty." ultimately the game sells in excess of 20 million units. >> 20 million units. how much will it be selling three months from now? baptist, almost like a movie. the game still has accident legs, but your big one throughout the year is the game can do well for six to nine months. >> so there is -- there is additional con places to go. >> starting in september and

january, updates happen three to four months apart. friends play with other friends. >> do you know all about the gaming days? >> my best gaming days piqued 20 years ago. it is tough when you can't get beyond the first 10 to 15 minutes at my age. >> did you play alien? who makes alien and who plays it. i hear that it's better than watching the first movie. "aliens," i have just came that out. >> how many are there?

what is the total universe now and which ones do you like the best? >> among the publicly traded publishers, there's activersion with a buy on, take two and lek tropic arts with a neutral on. the industry is really shrinking over the last couple of years because what you have done is the middle gains, the low-budget games have gone by the waistside and it's a go big or go home right now. we need big event games to attract huge audiences. if you don't have the money to pay for the budget like that, you have gone out of business for the acclaims and the british. >> will you play that if you're going to come? buy alien and play it for me.

because i hear aliens -- it returns you to the first original movie. >> all right, i'll check it out. thank you. >> thanks. investors seeing green and many companies calling ireland to the emerald aisle. we'll have a debate going on. also, our guest host this morning, you're not going to want to miss this. check out the latest stocks right now. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops,

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welcome back. i'm joe kernan along with becky quick and andrew ross sorkin. in case you missed it, the steelers destroyed the ravens. 43-23. roethlisberger threw six touchdowns and now has 12 tds in two games. >> that's kind of unbelievable. >> i don't know if i want to say the patriots destroyed the brop coast but they beat them, they spanked them. >> who are you a fan of these days? >> i actually watch carson palmer. i'm being talked into watching

the cardinals and they looked really good yesterday in arizona. they beat dallas. i like dallas and the cardinals. i like the patriots. i do like the redskins. i watched the end of that game. >> everybody but the bengals. >> r.t. got sacked there. >> you like everybody but the bengals? >> what's the other name of the team? they're gone. no, they are dead to me. >> i hope they win the super bowl. >> they're not going to. don't worry. making headlines, small business borrowing hitting the smallest level in seven years. according to a lending index from thompson reuters, this is correlated with gdp growth two to five months ahead. and malaysia airlines receiving the first lawsuit on the missing flight mh270. and apple is reportedly holding an investor call today ahead of the potential bond sale.

a banker is working on the deal and the paper is considering issuing bonds in euros. that makes sense. i think the 100-year issue is in order. >> too bad they don't have cash on the balance sheet. >> yeah. i don't know. >> maybe they are going to be buying back more stock for uncle carl? i don't know. >> now i'm hearing that i'm the lost leader. two straight losses for the cowboys. the bandwagon jumping -- >> they don't want you as a fan, you bring the plague with you. we'll check on the markets. as we told you, october was a pretty good month for stocks. you never would have guessed that a few weeks ago, but watching the comeback from october's lows to the end of the month represented the biggest snap-back within a single month since march 2009. that was to the dow and nasdaq. at this point, dow futures down by 27 points below fair value.

s&p 500 down two points. in european markets in early trading there, there are also declines of a third of a percentage point across the board. and if you watched what happened in asia overnight, this is what happened on thursday. investors seeing green overseas. forbes is naming ireland the best country for doing business and having the best year ever for foreign direct investment. plus, a number of top two businesses making a home in ireland thanks to big tax breaks and a highly pro-business environment. joe is here to tell us what he's seeing, martin shanahan is here from ireland. let me just ask you this, we're going negative before positive because there's been recent n s

news -- we don't know what it is, but there's an announcement that they have to pay big taxes on stuff that they ran through ireland. this is the, quote, double irish loophole. google's under the same issue. how is that going to affect direct investment to the country? >> i don't think it's going to affect direct investment into the country. as you've already said, we have an extremely strong pipeline of some of the top tier names into ireland. you're away we have made recent changes to the tax residency rules, which will prevent companies and future ones from being registered in the island. as you're aware, the eu has an investigation ongoing, but it is just that, an investigation. and both ireland and the company

are happy and will stay here. >> but you are changing the policy? >> we are changing the policy. we have introduced a number of things in the recent budget. we have set up a road map and changed the residency rules and changed the number of pro-further business. some people are calling this a loophole, is it a loophole? >> no, a number of countries have the equivalent boxes. we have signaled to introduce a knowledge development box. we said it will be alined to best international practice, but it also will attract lower corporation tax. and we are unapologetic about completing a corporation tax. every country the us that.

there are a lot of other things that matter with countries coming into ireland. people say they are entrustedal ebt. they are interesting in the broad -- >> what do you think of the change that has undergone convergence deals? >> i think we have to see what the outcome will be in a change to regulations. i think it may give some companies pause to -- >> are they against you or no? >> i think the u.s. treasury has to do what it feels it has to do. not for me to really comment. i think that companyies make god decisions on where they can drive value. >> do you think ireland has

benefited from the u.s. tax laws for separate corporations. we have not changed since 1986 but when we changed the laws in 1986 it put us on par with the rest of the world. now we are now. >> i think countries protect on the future praises of a future tax in ireland. having said that, you have lower personal tax. so i think each country has decided. we complete in tax and a lot of other things. i think there's probably a disproportionate focus on taxes and on ireland, in particular. this is about the real economy. it's about real jobs. it's about real companies making real products. >> let me ask you one more tax question before we get to the -- which is this, i if a company

has a new competitor, they have to be focused on the product and how to adjust ahead of time. do you as the investor sit around to say, you know what? these guys over here may actually change their structure which could impact us or they will never get there. >> not just on tax but on every part of the offering. our objective and my objective is to be as larry as -- >> is there a company for them to look at and say, yeah, i think they have things figured out? >> ibm global reported last week showing we were number one other than fdi, but there are a lot of countries are on heels. our nearest neighbor and singapore, israel, all doing good stuff. >> let me ask you about

ireland's economy. i know you recently raised the gdp expectations. >> i know the factors are really strong. so we are likely to pose the strongest gdp is down 11% from a high of 15%. that's feeding true to the day to day. and companies are very happy with the environment in ireland and we are seeing a very strong flow. >> did you surprise mcllroy when playing? >> he's had a good year so far. >> nip has just stopped to prepare for it. only i think he's doing the

right thing. i wouldn't second guess him. >> how does a string of this work, is this another tax? >> i think it's -- what has the weaker euro meant in weeks of tourism? >> so, i think parts of the globalized economy, we look to what's happening here as much as we do to what's happening in europe. >> you have pounds anyway, don't you? >> we have euros, which. has a less recovery. >> i would use the pound. >> we are very happy with it. >> what about scotland? i was using scottish pounds.

>> then you were starting or using sterling. but we use zero. >> why would you do that? >> why wouldn't we do that? >> why in scotland? we are not. >> aren't you right next to -- >> we are elsewhere in the same island, isn't it? >> on the northern ireland they have started to sail along. >> that's just cop fusing. >> it will draw people over with a weaker euro. i think of how extraordinarily strong north america is. >> northern ireland is the pound. >> northern ireland is the pound. >> oh, my god, you guys have to get it together over there. >> i have to come over to hang out. >> i was in scotland. >> that's right. i would encourage you to visit.

we can show you berms, in particular. >> they want to go with them. >> i don't know. that's confusing. northern ireland should be the one not using the pound. >> i'm not sure i follow your logic. >> i don't know. okay. the good golfer is from northern ireland, right? >> i'm on both sides. we have good slides for both. that's probably one of the reasons we have such strong golfers. >> use the euro, you should have never done that. thank you. up next, the storyline that could become a script for "law & order." a murder mystery involving a banker. and a quick check of what's happening in the european markets at this moment. you'll see red arrows across the board. [ hoof beats ]

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welcome back to "squawk box" a british banker appearing in hong kong today to face murder charges. they found two women dead in rory jordan's apartment. he was an employee of bank of america merrill lynch. and one of the bodies with us found in a suitcase on the apartment's balcony. there you do have a "law & order" script. coming up this morning, not that we need an excuse to have food on the set, but today is national sandwich day. the ceo of jersey mike's will tell us how to take a bite out of the $30 billion industry. "squawk box" will be right back.

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who's this guy? oh that's charlie. you ever put pepper spray on your burrito? i like it spicy but not like uggggh spicy. he always like this? you have no idea. at&t. the nation's most reliable 4g lte network. who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*?

if you are a sub lover, then today is the day for you. it is national sandwich day. the food category generates a lot of dough to the tune of $30 billion a year. one of the sandwich companies looking to take a bite out of those profits is jersey mike's. the ceo is with us this morning.

pet peter, thanks for being here. so you're peter. who's mike? >> the original owner. >> since you joined us just over two years ago. i think the last time you were on "squawk box" was august of 2012. you've gone to 830 locations. and according to the nation's restaurant news, you are the fastest growing chain out there. how are you sustaining that pace? >> that's what they said. yes, it's -- we have a good crew across the country. when you only have 800-something stores, the percentage is strong. so it's easier to keep up. >> i'm guessing franchises? >> yes. >> and what are the difficulties you're facing right now? what are some of the things really playing into your favor? >> things now, the economy is at a good state. the money is more available now an it has been in quite a while. i remember the recession of '91

when that was hard times for our company. where the availability of capital was not there. but now it's been the best in quite a few years. >> meaning your franchisees are able to get loans. when we look at things like food costs, there has been a lot of inflation in. how does that affect you. >> we're good. swre so many different varieties, it never really hits everything at once. so through the years we go against it but come up pretty well. >> i would guess you are pretty tightly connected with the jobs market. if people are going to work and getting lunch, your shops might be a place they wind up. >> that's right. >> how would you gauge the american economy in terms of lunchtime sales? >> it's very strong. again, the available money to buy the product, we're a little bit more expensive than most sandwich shops. maybe on the level of chipotle

where lunch is about $10. so people want the higher quality and now looking for that as much as the cheaper products. >> it smells really good. i can't imagine if you had a subway sub in here it would smell the same way. what's the difference? >> sub sandwiches, they've got some 30,000 locations. we have 850. so we have a long way to go. so the numbers, you know, i would say that's the difference. >> i was going to ask about the health story. that is what we were talking about during the break. you were saying five guys you think of as a competitor. they're in the burger business. mcdonald's has suffered because of the health issue out there. chipotle is doing just fine i assume because they're doing salads and other things. maybe they say that's a huge calorie -- i don't know. what's the thought? how do you think about it? >> just the health with ours fresh made, fresh sliced. and red wine vinegar and olive oil. same with chipotle.

the chicken grilled. it's here to stay. the health people -- you know, the health is what people want. >> how many calories on a sandwich like that? >> it depends what you get on it. so 500 or under. >> if i put lettuce and tomato on it? >> yes. and oil and vinegar. >> hold on. that sandwich is 500 calories. it's going to feed a lot of people. so you get a slice of that. >> you think of your competitors as chipotle and such. we've seen some stumble recently. what do you think has happened there? >> again, the people want the better quality product and are paying the money to get it. >> so you have not seen any of your sales suffer. >> no. >> peter, thank you very much for coming in today. thanks for bringing sandwiches too. it smells good. >> great. coming up, a man who needs no introduction. jack welch joins us as our guest

host. the economy, the markets, and tomorrow's key midterm elections. no topic off the table when "squawk box" comes right back. t

your money, your vote. the last hours of campaigning for the midterms with the senate up for grabs. countdown to the november jobs report. the new month bringing another lightning round of data. and straight from the gut. jack welch is today's guest host. the second hour of "squawk box" begins right now.

welcome back to "squawk box" here on cnbc, first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. our guest today is jack welch. he is in the house. great to see you. >> great to be here. >> we have a lot to talk about with jack. we're going to get to that, but quickly we'll give you today's market agenda. the s&p and dow coming off two weeks of gains. check out the futures this morning. you'll see some red arrows. ace this point still modest declines. s&p futures off by three points and the nasdaq down by three points as well. it is a busy week for economic numbers leading up to the october jobs report. we've got october u.s. auto sales. ford has seen a slight decline. general motors and toyota are expected to post increases. let's tell you about mergers. two billion-dollar takeover deals.

publicist is buying sapient. that's a 40% premium for sapient shareholders. and medical lab operator labcorp buying covance. 32% above friday's close for covance. by the way, it seemed to jump on friday. i wonder if people were getting word of that. also investigators finding more clues as to why virgin galactic aircraft crashed. they say a key function that allows for a safe landing deployed too early. at this point pilot error can't be ruled out. the crash killed one pilot and badly injured another. founder richard branson says he's grieving over the incident, but he's determined to move forward. >> we've always known that commercial space travel is an incredibly hard project. we've been undertaking a comprehensive testing program for many years and safety has

always been our number one priority. this is the biggest test program ever carried out in commercial aviation history. precisely to ensure that this never happens to the public. >> and we're going to have more from jane wells reporting live from the crash this morning. richard branson said he and his family were hoping to be on one of the first flights and thought it could happen in a year. >> you were going to go at some point. >> little henry and max sorkin, they want to be spacemen. so they need to go. we've got to get this thing up in the air. >> got some time. with one day left until the midterms, let's get a check on the state of the economy and foreign policy and everything in between. our guest host is jack welch chairman of the jack welch management institute. you were ceo at ge, i'm told. >> yes, i was, several years ago. >> for how long? >> 20 years, 21 years.

>> 21 years. did well. >> we all did, didn't we? >> we all did well. that's true. and then two books. >> another one coming out in april. >> co-authored with susie. what's that about? >> the real life mba. >> and you love your mba program. >> up to 800 students right now. growing 40% a year. love it. love the whole concept. we don't have the typical tenure and all typical problems with education. we've got aggressive students doing well. couldn't be more exciting. we love it. >> what state are you a resident of now? >> florida. >> there's a shock. so you're not voting in the massachusetts election or the new york election. >> the new york, my vote wouldn't count. in massachusetts i might have some impact because i hope

charlie baker can beat martha coakley. >> here's the quote and i wonder whether you agree. it's that the gop heads into tuesday's balloting with a breeze but not a strong wind at its back. what do you think? it seems like things have started breaking -- >> i don't know any more than you all know. i love the joni ernst poll in iowa by the des moines register. but if the republicans don't win, we ought to get new pollsters. >> that would be a huge upset at this point if they don't take the senate. >> i've seen 95% somewhere. but i think both that they'll take the senate. but i think both t"the huffingtn post" and "new york times" are at 75%. that means it's at least 150% chances. >> i don't trust anything at this point. i was excited about romney and i

missed by a mile. the get out and vote thing is so important. >> you know what's great -- i love mainstream media. i can't pick which one i like the best in terms of the networks. i love them all equally. the thing they keep telling me again and again and again and again is that people are just mad at both parties. >> they like to say that. >> they just want to throw everybody in congress. i never hear they're mad at obamacare or obama policies. i never hear that. >> the whole idea of the republicans, as soon as this get the house and senate, we'll see who the blocker is. we'll get a transparent view of policies. do you like them, you don't. we'll get a clear view of the playing field. now we don't have it. harry reid has stuffed every bill possible under the rug.

>> out saying on three of the sunday talk shows that republicans could very well be looking at corporate tax policy as one of the first top three initiatives that they'd be pushing. is that a good thing? >> i think energy policy, tax policy which hopefully is not way out here. but something that the president can grab. i think we may be able to have the parties come together. there's enough common interest here, the environment might be the toughest problem of all. >> some people are postulating he may move. >> we see where he doesn't move and where he moves. >> when you say on the tax policy you hope it's not way out here. what does way out here mean to you? >> favoring too much the well to do. and i don't think it will. i don't think it will. but i'm more interested in whether or not we can slow the regulation train down and as epa

and labor and -- so mccarthy and perez are probably the two people that are -- >> just to be clear, you'd like to reverse a little bit. >> i think slowing it down would be very nice. i think that would be better because this guy if he's left to his own devices after this election, by the door as to what might happen on carbon, what might happen on a whole mess of things. but this election is about competence. it truly is about competence. and it's a philosophy. and when you have liberals and i'll call them liberals for the conversation, not progressives. when you have liberals running the government, you've got to tie with the public unions. and you have this issue going on all the time. let me give you a classic example of why we don't have

competence. take new york city. the chancellor of the school system, she just appointed 15 superintendents. seven from failing schools, five from disasters. 10% passing tests, et cetera. as superintendents. okay? now, when you have a philosophy of putting people in place without differentiation, you get incompeten incompetency. you couldn't run any company if you took 7 of your 15 appointments and made them flunkies, hacks. you can't do it. if that system of no

differentiation -- he couldn't run ever corps if he took the seven worst investment bankers he could find and stuck them in there. you can't do it. you just can't do it. >> roger has written -- you know, i go back and forth with him. he's close. he's close to joining the good guys. >> i bet you and roger see eye to eye. >> yeah. and on taxes they could get there in ten seconds. environment, maybe not. >> you know, i see both -- >> you don't see both sides. you can't see both sides on competence. >> no, i don't mean that. i mean getting something done. i think some people say it's going to become clear to president obama that there's enough people -- you can't -- you know, it was his quote. elections have consequences. that's his famous quote.

and he will see that in some respects this has to do with repudiation of some of the stuff he has said. to get things done. >> but you really see this competence issue come into play -- >> you're just calling all these guys incompetent? >> i'm calling the system incompetent when you put leaders in there who don't have a differentiating approach. >> all you're talking about is there's no ameritocracy. >> it comes to roost when you have things like ebola, the irs. you don't normally have this pile of things altogether. it really highlights itself when we get these crises. and you see what happens. the va, can't fire anybody. now they have a bill to fire

people. i mean, it is -- you just have to differentiate in life. i tried to give the union -- because i -- and this isn't about other people either. because i loved the unions, but i tried desperately to give them stock options. and they would say to me, jack, you can't pick who gets what. if we give everybody the same, you can give stock options. i said i don't want to give everybody the same. i want to differentiate. there are people better than others in their performance. not as human beings, in performance. they wouldn't allow me. we had thousands of ge workers miss out on that huge stock run we had because the union leaders and my friends philosophically believe everybody gets the same. you can't run an organization if

everybody is the same. >> right. >> and that's what they're doing in government. republican or democrat. that's what they're doing. so when these leaders come in and the leaders aren't uniquely competent, you can't get the place to work. >> big the irs, pick the dmv. pick a place where you need to find someone to say this is what's happening beneath you, can you be accountable for what's happening here. there's no one anywhere that's accountable. there's no one minding the store. that's why 90 cents of every dollar falls through the cracks. we know that. >> take the new york city school system. we just had the perfect example. 15 superintendents picked. it's overwhelming. and then from failing schools. five disaster schools. and we make them superintendents. philosophically, you can't do it. you just can't do it. andrew? >> i'm not going to debate that.

>> you need to talk to him. >> i'm not debating that at all. i happen to agree with him on that point. i happen to, by the way, think that the mayor i was worried about taking office isn't as bad as he might be. i don't know if you consider that high or low praise, but nonetheless there we are. i had worries about certain issues. i actually think that most democrats and republicans in new york city were probably more worried going into it than they have thus far with how well he's done on a relative basis. >> we had a skirmish this weekend when one resigned. >> all right. that's everywhere in the papers today. all right, we'll have more jack welch on the program. when we come back, a fresh week for the markets.

and we're looking forward to friday because we have a big number coming up. is there anything investors should focus on as november kicks off? job numbers on friday. see what happened at the end of the week. another 200-point gain for the dow. also walking the tightrope. we're going to check out nik wallenda's walk in the windy city. (shouting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do, and you gotta do it fast. before the competition does. it's tough out here; you better be on the right cloud. today there's a new way to work. and it's made with ibm.

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welcome back to "squawk box," everyone. we've been watching the futures. they've been a little bit weaker this morning. you could see the dow futures down 35.5 points. s&p off 3.5 as well. in our headlines this morning, argentina is suspending procter & gamble in the country. accusing the company of billing over $138 million in imports to get money out of the country. and nik wallenda completing chicago's skyscraper walk. the daredevil feat giving wallenda two records. did you watch this? >> yeah. >> was this unbelievable? my heart was pounding the whole time. i wouldn't even watch. one for performing the world's highest walk wearing a blindfold. the other for the steepest incline. i couldn't believe what was happeni happening.

he's talking the whole time he's walking. but the high wire wasn't broadcast live. there was no net. he claimed he could grab the thing. i was worried. he was so calm. >> kissing up to the big boss while you're on, that takes -- >> giving a shoutout. >> that is really calm. yeah. >> i'm going to see him wednesday night. his made may be this big, he may not get through the door. >> jack, how much would you pay nik wallenda? what do you think he gets for something like that? >> i have no idea what he gets for that. that's a great question. i have no idea. >> it's a two-hour primetime thing. >> depends on how much they make. >> doesn't do well in repeats because you the he already made it. >> don't you think he should get half? what if you went up to discovery and took a shot of the tightrope and for two hours just for two hours showed the tightrope.

you need someone to walk across it. he's a big part of -- >> what is that? >> i don't know. >> what do you think the economics of those two hours are? >> i really don't -- i haven't thought about it. >> we've got to figure it out. >> if i had a little -- >> let's ask him. he watches this show all the time. >> call in. we'd love to know. we were all mesmerized. >> i might have watched it on a little black and white tv maybe. but on a high def, no way. i was too afraid. i was too afraid. >> it was scary looking. >> maybe on a little black and white tv. >> he was up against 60 minutes in a football game and i bet he knocked them out of the park. >> we'll see. >> they dragged it out, though, too. >> they should. >> they should, i know.

all right. let's check out today's market action with just two hours before the opening bell. contributor jim iurio joining us now. jim, we saw a phenomenal set of action over the last several weeks rebounding from those lows and then some. what do you expect from the first week of november? >> no doubt about it. two weeks almost 11%, the story has to be last week where we nudge towards hawkish. so the story is dollar strength particularly against the yen and euro. yes it could be bad for some big multi-national exporters. but this has been telegraphed for careers. it's a big week. we have pmi today. we have an election today that's a reference on business friendly or not business friendly.

but as you said earlier, the biggest jewel is what was done on friday. if it can consolidate here for a second and then head higher, i'm all for it. after a move like this, there might be a tendency to whip lower. >> is it fair to say the market at this point wants only good news. no more of this hoping there's a little bit of good, little bit of bad in there. >> i believe what you are saying is true. i think they want good news. i think they're conditioned for that particularly out of the labor market. i think what could really hurt this rally is that we know that things aren't that great in europe. so far there's been no real contagion. our numbers are still getting better. if we feel that starts to pull us down, that could be a problem. and the market, we have to start losing confidence in central bank. and japan, i heard someone say they're all in friday. like the last hundred times. if at first it doesn't succeed, keep trying. it's idiotic and will not work. all it does is transfer money

into my stock account. >> jim, thank you. >> thank you. we're going to go to break but i'm still thinking about the competency thing. are you surprised we have to relearn every 20 years that the private sector is where you get accountability? i mean, adam smith, wasn't that 1776? >> yeah. but i think it was highlighted with all the crises that came up this time. i think this changed the game when you had the irs, the va. >> the isis. >> exactly. when we ignored them as a jv organization. did you read this week in "the new york times" magazine story of that guy who was a prisoner for two years. was a freelance journalist. i mean, these people want to kill you. >> they do. >> it's not a jv. >> no, it certainly isn't. anyway, we'll take a break.

we'll revisit a lot of this with jack. coming up, the battle of the sexes. women versus men when it comes to making business investments. find out which side is winning next. tread carefully on that one. and check out the price of crude. "squawk box" will be back in a moment. (receptionist) gunderman group.

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you want to achieve financial success? a new study suggests that you should invest like a girl. or like a woman. the female gender is said to benefit from being more patient and trading less often. research by vanguard finds that during the financial crisis, men were 10% more likely than women to sell stocks at market lows. and that turned out to be a mistake. when we return, what happens after the midterms? will congress and president obama be able to work together once all the mud slinging is done? rob jirald is going to join us. take a look at equity futures at this hour. red arrows across the board.

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. welcome back to "squawk box" here on cnbc. let's get you morning headlines. apple planning an investor call today. potential bond set. working on the deal. the company considering issues bonds in euros. trying to figure what that's about. also gaining revenues many macau. looking for a decline of about 20% year on year. among the reasons, fewer tourists, slowing economic growth, and china fighting corruption. also we should tell you about the high at the box office over halloween weekend. i don't know what you guys were watching over the weekend. i'm never going to get the pronunciation of this. >> you don't know what a ouija board is? >> i do. but that's how you spell ouija? universal's horror ouija -- >> universal has got like six

syllabl syllables. >> ticket sales matched by "night crawler." that's about the news business. >> and he lost a lot of weight for that. looks really weird. they don't really tell you what it's about. he's just a guy that wants to get really scary stuff on -- he's a cameraman for a news organization. >> and he's trying to get the best inside stuff. and the question is how he's getting that stuff. whether he's setting it up. >> do you remember network? their camera crew is kind of in line with the terrorist attacks. and a bout of bad weather. climate change weather hitting the east coast over the weekend. check out the snowfall. 21 inches falling in parts of maine. power outages still a problem in new england. unprecedented early snow in parts of south carolina on the first day of november. and charleston saw its earliest

snow on record. but records not that old. 100 years or something. republicans and democrats struggling for control of the senate and tomorrow's elections are to be the most expensive in history. here to talk about what's at state roger altman. he joins us now with more from new york. good morning to you, roger. >> morning, everybody. >> do you want to just go at it right now? is that what upd toot jack? >> first of all, i want to say -- i would just like to say it's a pleasure to be on with jack. i admire jack. i'm here in our mutual hometown of boston. so i'm happy to be here with you. >> i thought you were going to have an announcement. are you coming out as republican? you are close. we have talked through e-mail. you're close, aren't you? are you going to -- you have an announcement for us? >> well, look. let's just hope that if, indeed, it is a republican night tomorrow night and it looks that way, even though there are a

couple of races that involve runoffs and we may not know official officially until later, if it is a republican night that the next two years are different than the last two and that there's actually some bipartisan pro-growth agreements. i don't think president obama should want two more years like the last two. and on the other hand the republicans will need an agenda. nothing or obstruction won't be good enough if that's really what they do. because we don't know what that agenda will be. they've been careful not to put one forward. but if there isn't -- but if there isn't one, everything will go the other way in 2017. >> let me ask you a question. when jack sat down at the beginning of the top of the 7:00, he made the argument that if is the republicans win as we suspect they will, that this

argument about obstruction and being obstinant we will learn it was not the republicans who with obstinate and obstructionist. do you believe that? >> i think there's plenty of blame on both sides. i don't think you can say it's all the democrats, no. i think, for example, the house of representatives has been a paragon of ineffectiveness the last couple years. and one of the questions i'm interested in is if, indeed, the republicans take the senate. whether the republican house on the one hand and the republican senate on the other can reach agreement between themselves on issues, for example, like a budget, like immigration, like infrastructure, like energy exports. those are four pro-growth areas of possible bipartisan agreement. >> did you really just single

out the house -- in the two houses of congress, the house -- you don't think the senate has been a paragon of doing things? i mean, you can really single the house out as worse than the senate for the past two years honestly with a straight face? >> i think so. but my point really is we need two types of agreement here. one is that the white house and the republican leadership can agree on some of these bipartisan pro-growth measures. i hope they can. and the second is whether -- and it won't be as easy as you may think -- whether the republican senate and the republican house themselves can agree, for example, on a budget. i'm not sure that's going to be so simple. >> it's just -- i keep hearing that the republicans have no agenda and they're obstruction. but obstructing the obama agenda is what those guys were elected to do in 2010. that's why it was such a wave in 2010. so that doesn't mean there's no

agenda. they had plenty of agenda. they had an agenda on terms of -- what's that? >> 300 bills. >> and in the senate as well. harry reid hasn't introduced a single bill. there hasn't been one thing that's come up for a vote. >> let's not worry about the past. because there's plenty of blame. >> i can't let you do revisionist history and then say don't worry about it. >> look, i'm perfectly happy to say that the democrats are equally guilty in terms of all this dysfunction. i'm just saying we don't know what the republican congressional agenda will be if, indeed, they control both houses as i think they will. and it will be important to see what that is. and, in fact, there is a constructive agenda. >> that is the point. we will get transparency. if in fact this happens, we will get transparency. we will be able to see -- we'll be able to answer this argument you and joe are having. because we'll see what the

republican congress puts in front of the president if they can put something in front of him. and we'll see whether we get a veto or movement forward on the economy, on energy, on all these things. we know we need to get pro-growth employment policies. >> well, it'll be very unfortunately, i want to agree with joe on this. it will be unfortunate if all we see are vee es to. we saw under president reagan and clinton that the last two years of an eight-year presidency can be productive if there is bipartisanship. and so it's in the interest of the obama administration to want to see some of these pro-growth, bipartisan graem agreements. if it's just vetoes, that would be unfortunate. >> it could be executive action. >> there's very little, though, that you can do on executive action. i know there's a great deal of talk about it in the

administration. >> in your heart of hearts and you're on tv right now and you're a democrat so i don't know what you can really say, but do you expect the president to be more conciliatory or do you expect him to just dig in his heels? >> i don't know, joe. including that i'm sure there are still hopes on the democratic side that tomorrow will turn out differently and the republicans won't end up controlling the senate. hope springs eternal. i don't know. i don't know if the white house knows. i think it will depend on the scale of the election result. and i think it will depend on what the republican congress if indeed there is one puts forward for the president to deal with. but i just hope it's a productive or even semiproductive next two years. because reagan and clinton showed that can be possible. and i don't think it's in the administration's interest to just have two years of vetoes. >> if you are looking at something where you don't see some sort of compromise, who does that benefit in 2016?

>> there's a lot of irony in this, becky. some think if we have two more years of straight dysfunction, the public will be so unhappy again and by the way we have a very unhappa happy electorate t that it will flip in 2016. keep in mind that more republicans will be up in the senate, more republican seats will be up in the senate in two years an democratic seats. that the senate will flip. that the democrats will retain the white house and that actually two more years of dysfunction will produce another throw the bums out mentality which will at that time favor the democrats. some people think that. if i were in the how's or the senate or in some sort of position in the administration, i'd want to see some productivity, some positive results. because i wouldn't want to take the risk of an even more unhappy

electorate. >> before you go, you saw hillary clinton's comments a week ago that says i love watching elizabeth warren giving it to those who deserve it. i assume those are people on finance, wall street, you. she stood up to the national banks and tried to trick and trap own streets. and later said the corporations don't create jobs. she then sort of rolled that back. what do you make of that? >> i don't make very much of it. i have a lot of confidence in secretary clinton. and have had the prif ledge of working with her in the past. and i think she's a very practical, very experienced and generally speaking a centrist political leader. i saw those comments like everybody else did. i saw her expanded version of them a couple days later. and i have a lot of confidence

in her. >> just, you know, but there's only really two ways to look at it, roger. number one, it's complete lunacy to say it. and two, it's just saying what needs to be said to the audience you're speaking to. and both of those -- >> she was in boston. >> i know. >> she was with elizabeth warren. it's politics in the primary. i mean -- >> and we shouldn't expect anybody to be above politics, you're right. because they're politicians. >> you can't -- these comments are part of the political process. >> this one's going to ring -- those words are going to be in bold print for 2016. >> i'm with roger in terms of that. >> roger, we've got to leave it there. thank you, sir. >> thanks a lot. >> the other thing we hear is that it's just -- people don't like congress. people don't like washington. i think there's some repudiation of the president's policies here too. that's why in two years i don't know if we really change. >> i mean, joe, you're right.

>> it may not flip back. it may be progressive policies don't worry. we're reaping the benefits of a lot of the things he's been able to do and it hasn't worked out and we may need to reject him again like in 1980. >> that may be. i'm not going to disagree with you that if tomorrow is a republican night that there's -- i'm not going to disagree that there's some repudiation of the past two years and the president inherent in that result. i mean, that's absolutely clear if that's the way it comes out. >> okay. thank you. >> okay. >> you're close, roger. as you say, hope springs eternal. there will be a time you come on here and say joe you're right. you're never too old to learn. >> i agree with jack almost all the time. >> okay, good. >> thanks, roger. nice to see you. >> i'll see you later. when we come back this morning, we will have more from our guest host jack welch. plus automakers set to rofrt

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in auto news, consumers are feeling less pain at the pump. you know this if you've been filling up your gas tank. but now selling regular unleaded for less than $3. total of 35 states are now saying the cheapest prices this year. oil price information's head sees the nationwide average hitting a bottom of $2.90 a gallon. they are releasing monthly sales today. and phil lebeau joins us with what to expect from those numbers. >> we've already gotten the first numbers of the day. nissan reporting an increase of 13% last month. peeking of expectations, when you look at october sales, most believe that the sales rate -- not actual sales but the rate -- is going to come in between $16.3 million and $16.4 million.

a very solid month. the transaction prices expected to be up less than 1%. they're still seeing growth there. and incentives saw moderate growth, not a big spike and that's what you want to see at this time of year. and one area that a lot of people are going to be focusing on today. what sales strength will we be seeing when it comes to large suvs. we've seen considerably large interest in suvs. year to date sales for large suvs up 17.2%. and they're being helped by these lower gas prices especially with gas averaging under $3 a gallon nationwide. keep in mind ford announcing it will be showing a new explorer at the l.a. auto show. the first numbers will be coming out probably chrysler within the next half hour. $16.3 million $16.4 million that's a solid month. again, not spectacular, but solid. back to you. >> thanks, phil.

do you remember -- we got welch here. do you remember the last time you, like, paid for gas with a car or pumped it or even gave a credit card to someone to pay for a tank of gas? was it -- do you remember? do you have any recollection? >> yes, in nantucket this summer. >> you did it with your -- >> with my own car. i was driving. i pulled up and got the receipt. >> i thought it would be -- the last commercial airlines flight, when was that? >> that was 1968. >> hold on. this is a car or a golf cart? >> thank you, andrew. >> it was my jeep. >> the in-flight movie on that commercial -- the last one you were on was "sound of music," right? and it had just come out. >> why am i getting picked on? the dow rising 2% for the month. seeing if that trend can

continue in november. and ron johnson talks the economy, ebola, and the middle east. but before we head to break, a nascar brawl at texas motor speedway. jeff gordon trying to have some words with brad keselowski. look at the left of the screen. that's kevin harvick instigating it. now it's on. gordon came away with a bloody lip. keselowski had a cut over his eye. not the first time that keselowski has gotten into trouble. he was fined $50,000 just three weeks ago for a fight at charlotte motor speedway. "squawk box" coming back in just a moment. hopefully no black eyes for us. tigers, both of you. tigers?

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welcome back, everybody. let's get a check on the state of the economy with our guest host jack welch. the -- we haven't had a take on the economy at this point. you have a very good idea about what's happening. what do you think? >> more of the same. poised to do better. i mean, there's no question that we are seeing an uptick in orders. still not booming. but somewhere in the 2.5% to 3.5% range. if we can get a right election this time and get some

regulation fear off the table, i think we can get an energy policy. get some movement on taxes. some discussion. i think there's a real chance to get to that 4% economy that. >> i think it's been a couple of years since you said you thought energy was really going to be the thing that drove us out of the recession this time around. i think jobs have been there. they've been created. there's a story on the front of "the wall street journal" today that says big oil is now in position where they think they need to shrink. but the question is they're drilling less. they're exploring less because it's a lot more expensive to drill oil out of the ground than it was just ten years ago. >> i know you're not an export fan. and there's a huge opportunity for exports if we get the right policies to support that. we could go on public lands and

do more drilling. we could -- the opportunities are enormous for this country and its technology to drive a whole renaissance the next step. >> do you think we can come back like we did before? you think that's possible? >> yeah. >> really? >> absolutely. >> there is a point of no return. i don't know when we get there. >> why? >> because carter had four years and they could only do so much then. then came back and you saw the '80s. andrew, is it morning in america? is the american dream alive? >> i've always said -- there's two american dreams. one of them is very much alive. the idea anyone can start from nothing and get to somewhere is still very much alive. >> what's not alive? >> what's not alive and i still think it's an aberration in history is this sort of paint by numbers leave it to beaver american dream which was if you just went to school, you got a -- you know, you got a skrob, a house, a kid.

that's sort of the 1950s type of dream. >> the whole country has people going to work every day, still going to football games. you know -- >> but you don't see that. when you get the labor report and the participation is awful, you say it's not so. >> i think it is difficult at this point to -- i mean, we have to explain where the income disparity is? >> there is a mourning in america. . we get a president with a positive view of the country who loves the country, who talks about what a great place it is, who has a strong defense policy, who has a strong military, who has a strong economic program, we'll have an america. look, we -- you forget, you're too young, whatever. you forget how ugly it was with jimmy carter. how impossible it was.

he was talking about malaise. this current president doesn't think america is exceptional. it is exceptional. it allows growth for everybody as you point out. it does allow us to come from nothing to something. and we got to get everybody feeling that again. you get the right policies, you get the right president, and you'll see it happen. and then a rising tide will carry all boats. this is the greatest game in town, the greatest country in the world. we've got to talk about it that way. not all the problems, issues. >> how do you handle inequality? >> you get rid of inequality not by handouts and dependency but by growing jobs. giving more jobs. that's how you get rid of dependency. you will not fix inequality by handing people a handout that's already poverty. stop it. you won't do it. but we can have the greatest game in the world.

just -- you have no idea what it felt like in '78 and '79. it was ugly. >> right. >> never thought we'd get back again. now we're talking about -- and he's talking about a house on a hill and these wonderful things. all of a sudden it unleashed it and it happened. >> shining city. yep. all right. thank you, jack welch. we should replay that. i think we should make a commercial like that. i do. okay. we got more from jack and mourning in america when we come back.

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welcome back to "squawk box" here on cnbc, first in business worldwide. i'm becky quick along with andrew ross sorkin and joe kernen. he did it again. high wire artist nik wallenda defied death not once but twice walking between two skyscrapers in chicago wasn't enough. after the first successful run, he walked back across the river on the ground for a second attempt starting at the same skyscraper and ending at a

different one. >> it's hard to watch it now. >> i don't like heights. >> and to mix things up, he was blindfolded. no net, no harness, and no fear either. afterwards he said he felt incredible and that his only concern during the stunt were strong winds. >> i'll say. >> you know, the wind was definitely on that first walk the reason why i didn't take my time. i was ready to take a selfie. i had every intention. i'm bummed i didn't. but strong winds hit me in the face. i tried to lean in as i'm walking uphill. and it stood me up straight. >> yeah. that'll get your attention. strong winds when standing on a 3/4 inch -- >> how was he going to stop and take the selfie? >> what happens if the wind's blowing, you're leaning into it, and it stops for a second and you're leaning? >> apparently his mother was unhappy that he wasn't going to go down on a knee in the middle of it to make it more

interesting. >> i avoided this and here i am. i'm not looking. >> it's unbelievable. >> discovery hosted this event airing it on a ten second delay. >> the ratings for that has to be -- we will see. labcorp buying covance for $5.6 million. and also publicis is buying sapient for $3.7 billion. this coming after the failed omnicom merger earlier this year. we'll see whether this impacts other companies. the other big question this morning, are investors ready to kick off another bull run? november historically the second-best performing month with an average return of just

over 2%. dominic chu joins us on whether there will be thanks this month. >> what it come douns to, is those investors who like to play by numbers, they look over the long-term. they specialize in crunching these custom numbers and they looked over the past 20 years at the month of november specifically and every other month to see what the president return is over that span of 20 years. you can see here in november like you said, 2% on average return. that's second place only to the month of april which has nearly a 3% return. this is over the last 20 years. this is the number they came up with. in terms of batting average it's positive, 60% of the time november is positive. not only is it up 2% on average, but it's positive 65% of the time. that's a big deal. now, if you look at where the best-performing sectors are, since october 15th since those

lows, they have put money in the -- industrials are up 10% and health care's up 11%. as we look towards november and the second part of the santa clause rally, november into december, right now tech industrials and health care are where investors are putting money just in case the bull run continues. back over to you guys. >> thank you. we do have some breaking news right now. chrysler sales just crossing the wires. let's get to phil lebeau with more. >> chrysler coming in with a gain of 22% last month. october sales up 22% for chrysler. that is in line with the edmonds.com estimate. haven't gotten the exact number for jeep. but that's been the engine driving chrysler. again, chrysler up 22% for the month of october. back to you. >> thank you. let's pick up where we left off with dom. wondering what we're doing with is the pace. are we on pace to see a bull run into 2015? joining us now is deutsche

bank's chief executive str strategi strategizer. good morning. >> good morning. >> what do you think? that was a wild right. are we done at this point or is there more ahead? >> october is certainly inspiring and confidence building. we're going into strong months for the s&p 500. but don't take too much assurance from that. while it's true the market usually climbs in november and december, that doesn't always happen. there are plenty of years outside of recessions as well. 1994, '86, '87, '88. what we need to stay focused on is the profit outlook for next year. i think the u.s. economy is doing very well, but we have our concerns about china. europe's inability to get traction on growth. and we're watching this dynamic with currencies and commodity prices because a strong dollar, weak oil prices, it's a challenge for the industrial

sector. so i am overweight health care, overweight technology. that's 35% of the s&p. i see a good 15% upside at those two sectors. but it pains me, it's a seconder i usually love, industrials i'm underweight. >> when japan does a qe shock and awe and we go up 250 points on the open because of that, is that okay? >> the knee jerk reaction to qe has become a positive -- >> even in japan? >> right. even in japan where it has yet to show any benefits. but the point is we've seen the yen weaken. >> but that making our dollars stronger which is one of the problems we're talking about. >> it's a challenge for u.s. exporters and commodity prices. if you look at the gdp data and non-residential construction, it's still very weak. the only thing that's keeping it decent is energy cap x.

oil production. that's what's keeping non-construction high single digits. >> the strong dollar, you think that's the biggest reason we're seeing such weak oil prices? a demand picture? >> it's mostly u.s. supply. saudi arabia saying they're not going to be the only ones to defend the price. it's mostly supply, a little bit of dmantd growth with the currency over the major region supply. >> jack, how surprised have you been to see oil prices at $80? how does that change the dynamics? >> europe has gone in the tank. i mean, let's face it. we're talking about we argue about .3, .4. europe is going nowhere. back to our argument on policies again. we're 50% of europe's gd is spent in government. we're at 38%. we're already gone from 30% to 38%. but europe's at 50%. if all that money is being sucked out of the economy to feed the government, you're just

going to have slow growth. you got no fundamental support. >> that's why i want to ask you if it's reversible. >> we're at 38 and we did well at 30. and we can fight our way back. with the right leadership we can fight our way back. >> we do have an important election and usually the market does well after midterm elections. i would say we don't have the big selloff. but i want to see. there's things we're looking for. there's things like that. and at least have more facility and moving it around the country. >> keep going, keep going. >> and maybe just put the financial blame game behind us for good. >> if you were one of our investors -- >> give it more time.

>> taking away your time. >> that's right. >> if you were one of those investors who has been waiting and waiting for a 10% pullback -- >> we got it. no. that counted. 9.9. that's it. i'm writing it down. >> did you miss it? is it gone? >> i don't believe -- we did not have a correction. >> oh! >> so there's certainly parts of the market did, but not the overall market. i'm not a slave to the correction clock. i did not expect a correction. we did not have one. i don't expect a correction. i would say next year waef watch this dynamic of global growth, investment spending, what it means for profits up against what is clearly a tightening u.s. labor market in part because the demographics. and that kind of creates the possibility of fed hiking with profits being very anemic in terms of growth. that could be a challenge. that could cause a correction. but i don't see it yet. >> thank you for coming in.

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welcome back to "squawk box," everyone. let's take a quick look at the futures this morning. they've been under water all morning long. dow futures down 36.5 points. s&p off by 3. the nasdaq off by 2 points. we're going to get back to our guest host jack welch. we haven't talked about a couple things in corporate america. one is activism. but i want to start with buybacks. you guys did buybacks when you were at ge. >> yes. >> we talked about ibm a lot in

the last few weeks because of their buybacks. how are we supposed to think about that? it's a perennial issue, but back at the forefront? >> our buybacks were aimed at not having more dilution. so we were trying to balance stock options with the buybacks. we had 10 billion shares out there. so the idea of buying it back to solve our problem was not to solve an eps issue. >> when you look at ibm, what do you think of the issues they're facing now? >> i'm not sure i understand what is stopping their growth right now. what took them off the track. forget eps. because sam had taken that thing through a very tough period and came out all right. she inherited that hand and the question would be what she does

with it. i thought -- by the way, i tweeted that. her performance on cnbc the other morning was a ten. she was straightforward. she was to the point. and she was clear as could be. so i'm a fan of hers. let's give her some time to get this track thing going. >> wouldn't be easy. >> it's a tough job. she's in that brutal, big behemoth fast-moving technology sector. i mean, big, brutal behemoth and fast-moving don't quite go together. now, ge can be a big behemoth because it's not in engines, health care. that's not fast-move pg. >> right. it still has 10 billion shares outstanding. >> i know it. >> so you bought some back. but then it was -- >> we were trying to break even. that's all we were trying to do. that's all i was saying. we were trying to break even. because we wanted to give stock to the employees.

we had 65,000 people getting stock. >> here's what i would say. we keep having the argument about buybacks. there are times it makes sense and times it doesn't. when a ceo says i buy it back, you know, when i think the stock is cheap, that doesn't do it for me. a lot of ceos, you see insider selling. you don't even know whether a ceo always thinks his stock is -- what kind of ceo thinks -- maybe tesla and when you're at 400 times earnings. but in general as a ceo, you're trying to do the right things for the company. you would always think it's cheap. >> buybacks are not -- >> for ge, let me ask you this. ge has redeployed a lot of its cash with acquisitions. do you think ge would have been better served by buying back more stock? you talk about other companies. >> i am not going there. >> i retired 14 years ago. stop it. >> let's get to the idea of

whether you borrow money to do the buybacks or whether you have a business that kicks off a lot of cash. does it matter? >> that's worked well for home depot, for example. it's worked very well for them. they manage a nice portfolio of businesses. they have judiciously borrowed to buy back. it can be right. >> but not when you're borrowing and the revenue is going down. >> if you look at big multinational giants, they have struggled or at least not done as well as those that have been, frankly, here. so look at a coca-cola. you look at a mcdonald's. ibm to some extent. you could argue ge to some degree. is there a way to fix that? is that just the way it's going to -- how are we supposed to think about this over the next couple of years? >> companies have to think one word.

agility. movement. faster cycles. they got to bring products out faster. they got to have a much quicker pace. they can't be bureaucracies. they've got to fight bureaucracy relentlessly. >> what do you think of those companies like coca-cola or mcdonald's? >> i don't know enough about them. they're big. they've got a tough road. people are coming in whether it be panera or the next guy and the next guy with a new formulation. so they've got to be faster. they haven't had enough introduction. when they brought out breakfast. they changed the game. have you got a new product from mcdonald's to talk about? >> i can't think of one. >> that's the problem. they were a huge hit with breakfast. >> coffee too. >> we didn't even get a touch on activism. we'll tease it. we'll come back. >> i like activism when you got a horse's ass for a ceo not

doing the job. i love activism. and i hate it when you've got to good company and a guy bashing it to try to make a buck on the side. >> we're going to come back with jack. he's going to differentiate when the ceo is a horse's ass or brilliant. which is hard to figure out in certain cases. thank you. up next, though, space flight suffers a setback after a virgin galactic space test flight goes awry. then a big day for the big apple. the freedom tower is ready to open today. we have the details just ahead. check out the futures right now. still under water at this point. dow futures down by 31.5 points. "squawk box" will be right back. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets.

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that investigation into the cause of virgin galactic's experimental spaceship continues. ntsb officials still trying to figure out what caused the spacecraft to break apart in flight over the mojave desert. jane wells joins us with more. what's the latest? >> it now appears the braking

system deployed early. they're calling that a statement of fact, not a statement of cause at least not yet. a feathers device meant to stop the descent back to earth was unlocked early by the ko pilot. then a second step happened seemingly on its own where the rudders pull up. shortly after that the craft broke apart. what does not appear to be any part of the cause is the new fuel being used. the fuel tanks were found intact. richard branson spoke on the "today" show. his reaction to the news that the early deployment of this feathering system may have been involved. >> if that ends up to be the case, that is something which is easy to fix. we can be certain to not have it be done again many the future.

it is a grand program which has had a horrible setback. i don't think anybody watching this program would want us to abandon it at this stage. >> well, the accident killed 39-year-old test pilot michael als zb alsbury. virgin galactic said it has continued to work on a second spacecraft which is 2/3 of the way through. but ten years and a half billion dollars have been spent trying to get it off the ground. mostly from the company itself but also from an investment fund in abu dhabi. a taxpayer funded facility where virgin galactic hopes to send its paying customers. one local politician they have yet to see any return on their investment there in new mexico. >> all right.

we appreciate it. thank you. usually we can banter and kid around. this is a serious story. thanks. got to see jane a couple of times last week in the studio. when we return, midterms and the market. senator ron johnson on the possibility of republicans winning the senate. whether washington's economic divide, resolved. from tax inversion to immigration reform. talk about the issues that matter. equity futures are still indicated down a little bit. 35 points. here's a look at european markets at this hour. "squawk box" will be right back. (vo) watching. waiting. for that moment, where right place meets right time. and when i find it- i go for it.

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welcome back to "squawk box," everyone. this is cnbc. let's get to your morning headlines. chrysler saw october u.s. sales jump 22% matching estimates. sales of its jeep brand surged

by 52%. argentina has suspended procter & gambles in that company. and a tie at the weekend box office. you had "night crawlers" and "ouija." and it is official. one world trade center opens today. you're looking a at live shot. conde nast are moving first into the building into the 1776-foot skyscraper. they will have offices. the freedom tower is the tallest building in the western hemisphere. cost $3.9 billion to build. three times what they estimate snd right? >> i don't think that needle counts. >> it does officially. there's a ruling on it.

1776. >> kuala lumpur took it far long time. >> we are less than a day away -- see. 1776, man. that was an important time -- that's when adam smith wrote that book. >> yes. >> anyway, we are less than a day away from the midterm elections and washington's balance of power is up for grabs. joining us now from wisconsin, republican senator ron johnson who -- i don't know, we got to get this guy out of his shell. have you seen him before? he never says what he means. senator, good morning. tell us what -- >> morning kwb guys. >> tell us what you're expecting. "the wall street journal" -- i read this to jack earlier today. that was there's a breeze behind republicans' back. not a strong wind. is that how you see it? >> well, if i were a betting man, i bet on the fact they pick up a majority.

we've got three seats in west virginia and south dakota that are looking pretty good. and then we've got nine other competitive races. two of those are republican seats, hold onto those. we only need three additional pickups. the point i want to make is i think america would be pleasantly surprised if republicans get the majority that they're going to find out we're not the party of no. we're going to be looking for areas of agreement. on those issues that jack was talking about. how do you keep energy prices low, some regulatory reform. how do you taxes more competitive. i think americans would be pleasantly surprised when we get that majority. >> i would like to get your thoughts on what jack has to say. we were talking about hillary earlier, and i think she is at least -- i know she's running. i don't know whether she gets the nomination. you think we should run a jeb bush or a chris christie or do you think we've tried that and we need a ted cruz or a rand

paul? >> you're putting words in my mouth. >> i'm wondering what you think. >> i think we have to give a hard look to a rand paul and to ted cruz. i saw ted cruz on your show the other morning. i thought he was fabulous. i've watched him over the last year. he hasn't done anything wrong in my view. look, we have had middle of the road-type candidates. candidates that democrats say it's okay to like them. john mccain, mitt romney who would have been a great president if he could have gotten elected. but the idea of us going to the middle so that we appease new new yorkers, i was on a show on saturday and i said we've got to look at ted cruz hard. but ronald reagan was attacked for the same things ted cruz is being attacked on.

he would be following obama. i like hillary. i think she's a valid candidate. . the clintons are capable people. but i would love to see the republicans. i mean, i was at a black tie party on saturday -- >> i can imagine the response you got. >> i got a, jack, what's going on with you. you used to be sensible. you used to be a sensible republican. screw new york. you're going to lose new york. forget it. go to the country. this wonderful country and present your ideas with an optimistic view of a guy like cruz, a paul. somebody over there that's clear in their views. not somebody who's trying to appease democrats. steve rattner tweeted me the other day, jack once used to be a sensible republican. what's wrong with him.

he mentioned ted cruz's name. he's gone around the bend. what's wrong with this guy, jack. >> around the bend and off the deep end. senator johnson, what's your thoughts on that? >> well, what we need is somebody who can analyze the problem facing this country. you know, internationally and domestically. understand what's keeping our economy from moving forward is the fact we have regulatory overburden. that driving up the cost of energy. they can communicate that clearly. also someone that understands that as you continue to grow government, government becoming more incompetent. so we do need somebody who's run something, that understands how to run large organizations and has a vision. how do you rein in this government that has grown totally out of control. but also recognize the fact that the more it grows, the more incompetent it's going to become. so somebody who is dedicated to limiting the growth of federal government, devolving that power

back to the states, our government is more competent because it's closely governed. >> amen. amen. >> but senator, i guess you don't want to necessarily endorse anyone, but what are your thoughts on what the gop has done the last few elections. they've done exactly what jack describes. we don't want to ruffle any feathers. mainstream republicans really do respect you because you're good at getting rid of the heretics but they think you need someone to bring in the converts. >> we haven't had an agenda. we haven't told the american people what we're for. and it's actually pretty simple. again, jack has the main elements. keep energy prices low. president obama got elected saying that electricity rates are going to skyrocket because

of his policies. we need to point that out. that's crazy. if you ought to manufacture things, you need power. cheap power is better than expensive power. that understands how the regulatory burden is crushing businesses. and then also understands how crushing our tax burden is and how uncompetitive it is. again, this isn't rocket science, what we have to do. if you look at the american economy as the hull of a ship. we've had decades of barnacles get up on the hull. the solution is easy. scrape the barnacles off. >> senator, you're kind of at least associated with tea party mentality. i think that you recruited to run. then you ended up winning. >> i just got so disgusted i figured something with some common sense ought to join this process. >> are you willing to say that -- is it possible for the establishment gop to nominate

someone like cruz or rand paul? that possible that could be the end result? >> if they put forth a positive agenda and if they're willing to reach out and figure out what we agree on. that's what my main point -- if we get a majority, my approach as chairman of the homeland security, i'm going to reach from the other side and figure what can we agree on. what kind of rel tour burden is crushing businesses. let's find those areas of agreement. what harry reid has been doing is just putting divisive legislation on the floor, no chance of passage, and is doing nothing to help our economy move forward. it's also about what's keeping our economy from growing. that's how you increase people's wages. people competing for labor. again, it's not hard. see somebody who operated a business because then they understand the burden government

places on the businesses and makes it gift for businesses and economy to growth. >> you wouldn't be saying this if you didn't think it was possible for somebody like that to get the nomination. >> i think we need a hard look at people with just exactly what senator johnson said. a clear vision of how you become more competitive. how you get more people in the game. how you raise everybody with good jobs. how you get away from this competitiveness. he calls them barnacles. i love that metaphor, if you will. i think it's perfect to describe what we're doing here. we're slowing down this great country's engine of growth. and growth is what is the fixture of life. >> joe, here's the main point of the tea party. are you going to grow government? or are you going to grow the private sector? that's why i'm happy to associate myself with the tea

party movement. americans are finding out that growing government does not make us more secure. and that's the main point we have to make. quit growing government. >> i'm not on a this wasn't a regular cable network that uses the saying. i don't know how it's conflated with the very far right. it's low -- it's small government, low taxes, and individual freedom. but that's not the way the left pror trays it. >> that's what made this country great. we've got to return to those founding principles. >> okay. >> i just see it happening. we've had a divided country and there's going to be talk about a uniter and someone who's ready to compromise and it's not those guys that's going to be the problem. the country's going to say -- you know that's going to happen. >> i feel that way.

>> it's finding areas of agreement. you don't have to compromise your principles, but isn't that how you did negotiations, jack? you didn't argue right away. you said what is everything we agree on before you figure out the areas of disagreement. >> absolutely. >> that's the approach. >> i would like to see somebody who will work with the other side. it's not about compromising your beliefs or changing them. it is about finding common areas. that's very well put. >> i'm glad you agree. >> the two parties have totally different opinions on how to go forward. can you agree with anything the obama administration is proposing right now? >> right now? >> yeah. >> i think immigration reform. i think we need immigration reform. health care for everybody. i think that's a way of doing that. all these things are not wrong. they're just implemented in a way that has no way for product ift.

productivity is the key to a country's competitiveness. >> i call him senator ron john but that's taken by a surf shop so i can't. senator, thank you. when we come back this morning, we'll talk about why apple wants to talk to investors. plus gamers get ready for warfare. check out this video. aurora borealis over sweden. one of the larnlest sun spots in 20 years releasing strong solar flares. it's been dazzling in the arctic for the last several weeks. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com.

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welcome back to "squawk box," everyone. the futures this morning have been under a little bit of pressure. you'll see right now that they are down. dow futures down by about 23.5 points below fair value. but the nasdaq futures have just turned positive. s&p down but only by about a point and a half. in our headlines this morning, apple is reportedly holding a call with investors today ahead of a potential bond sale. deutsche bank and goldman sachs are arranging this discussion. a bond offer could come as soon as this week and might possibly be at least partially in euros. the company has never issued debt in anything other than dollars. american companies have been pushing bond sales in europe this year in an attempt to try to take advantage of the continent's record-low borrowing costs. video game fans lining up at walmart stores for the midnight

release of call of duty. the franchise has been one of the biggest titles in the industry but recent sales have been declining. up next, jim cramer breaks down a new month of trading from the new york stock exchange. and wouldn't you know it. jets, man. mark sanchez, the hero. somewhere else. just makes sense, doesn't it? fitting. but your erectile dysfunction-that could be a question of blood flow. cialis for daily use helps you be ready anytime the moment is right. you can be more confident in your ability to be ready. and the same cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache.

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let's get down to the new york stock exchange. jim cramer joins us now. on the other side of the earnings season, i feel like, jim. we haven't had a lot going on. what are we going to key off of from here? maybe some other part of the world will do some quantitative easing to get us another 300 points. >> that could be. i'm focused on the fact there's deals again. there was a period where the deal market was frozen. covance gets a nice bid today. these are companies that are not at the top of their game that are being bought because people -- wants the sister company covance suddenly comes in there. if we can get the deal market going, then we won't need the qe, whatever, of whatever

country. that's what's important is confidence. i think confidence may be building if we're getting these acquisitions. >> all right. mark sanchez? >> well, i mean, he never had a running game when he was with the jets. he's got the best running game in the n if l. so i don't know. all you need is handoff. i think he can hand off just like everybody else. >> is it weird, jim? what is it about super bowl teams? we just assume next year they're really good. what happens, do you think? >> i just think you lose a lot to free agency, you lose a lot to injuries. last night we had the afc championship game on, that was an odd one. then we had two championships. we had ben roethlisberger. thank heaven b that the eagles are -- philadelphia is in the nfc. coming out of the afc is going to be impossible. way too hard. >> the patriots have done it before, obviously. but then they always -- you know, the last couple years there's been something missing. do you see that catch gronkowski

made? >> gronk. if gronk stays healthy -- you can't tackle gronk. it takes, like, seven guys to tackle gronk. >> and brady. >> brady. >> how do they -- i don't know why you draft that guy. he was nobody. nobody. how did that happen? >> michigan. smart guy. drafted brains. >> amazing. all right. thank you, jim. we'll see you later. when we come back, jack welch on the global markets and his take on what's happening in europe and bill gates says he wants to end malaria in his lifetime. he says he'll give more money toward that goal. this is part of his broader fight against tropical diseases getting more attention because of the ebola epidemic. "squawk box" will be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets

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>> let's get back to our guest host today. jack welch. earlier today andrea was asking you about corporate activists. you said if the ceo is a horse's ass you like corporate activism and if you have a terrible ceo you hate it. how do you tell the difference between the two? >> no energy. dead stock price. all of these things are killer.

you have to have somebody who e rejuvenates the place to get it growing. if you're not getting it and you're not driving it, somebody is going to shake it up. like, for example, i don't like activism when they're not successful. i don't like thousands of people -- when you're wrong as an activist, you should get hammered. you shouldn't invest somewhere else and get rich and do other things. if you're wrong as an activist, you have injured armies of people for no purpose. that is a bad idea. >> how do you think about someone like bill ackman. you mentioned jcpenney and target. he's in that trail deal he's on well on. >> he's done well on a number of bets. >> right. so he'll be right sometimes,

wrong sometimes. what's the answer then? if you're the board of a company that's, you know -- >> you have to be right more than you're wrong and when you're wrong, you can't destroy an asset. karl icahn has been right most of the time. i would have to go back to twa when he wasn't. he's been right. >> motorola. it worked out fine. so in previous appearances, there's been many times when i tried to get you to really go off. you said you don't want to look like a cranky old goper. you have said a lot about the obama administration. you have been unrelenting. talking about ted cruz, that wasn't on national tv that you said it. >> yes, i did. on national tv on saturday.

>> you're going to hear about it now. >> i am. >> what i worry about, you live in new york now. you know all of your liberal friends that you hang out with your little thing finger up in air, are you going to get invited? >> i got blasted on saturday. >> what about wednesday? are you going to go -- >> i may not be invited. >> are you going to grow a beard or something? >> the facts are we need a republican position that is clear. ron johnson said it perfectly. we need a position with policies that are voted on. now, if we win the senate now, the transparency issue will be enormous. people will get a chance to see who is for growth? who is really going to make this country become the shining light on the hill. who is going to do this?

>> who thinks america is exceptional and our best days are ahead. >> who is going to give us defense against isis which is a big deal. you look around every corner and all you see is threats. isis is a big deal. isis is not a small -- isis to me is much more important than ebola. much more important. much. we'll deal with ebola. we'll get that under control. >> biggest threat facing mankind? >> that was an insane comment. >> john kerry, secretary of state. >> i love john kerry as a guy. >> do you wind surf together or something? >> i'm not good enough. he's a better athlete. i'll beat him in golf. >> he was at the patriots game last night. >> i saw him. i saw that. climate change is not the biggest issue facing this country. it's insane to think that. >> insane. it makes me worry. seriously with isis and -- >> isis is a real threat.

when you see people marching around with signs, kill every american, kill them. this is a big deal. >> if you're in the wrong sect, you deserve to lose your head. >> this is a very dangerous thing and this threat is real. we let them build up and we had a chance to get them when they were across the desert. >> we got played by assad. >> we got handled. >> how about with israel? how about that stuff? >> i think we'll have a great, great election if hillary is here and i like mrs. clinton. i think she's a good person. i like her policies. we'll see them. i like to see a real clear articulation of the other side's policies. and you're not crazy. i haven't gone around the bend. i'm not crazy because i happen to think we got to look at ted cruz and we got to look at rand paul. thoughtful people.

>> you think that's what happens in 2016? >> i don't think -- i think it's unlikely the republicans will have the courage to put somebody out there. >> if not jeb bush and not rand paul and ted cruz, who? if you decide these two were too far over and jeb doesn't want to do it for whatever reason -- >> i think jeb and chris christie and those sorts of people are too middle of the road to win the country. they'll be liked in new york. they'll be liked -- they won't win. you have to give up on new york. you have to give up on california. >> it's weird though. romney said 47%. there's some truth. there's 45 here. there's 45 here. it's the ten that you need in the middle to go your way. >> i think there's 60 in the middle for somebody who wants to think america is great, who wants to grow it. i think there's 60 there. i think there's 60. >> do you think mitt comes back? >> i don't think he will. why would you want to do this a

third time? >> i hope if he does, he gets a different staff. that's all i'm saying. >> he has to get a tougher staff. more edgy staff. >> thank you for doing this another time. we want you to come back. jack welch, thank you for being here. great two hours. make sure you join us tomorrow. "squawk on the street" begins right now. ♪ >> good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber. futures are relatively steady as we enter a week with a lot of data. ten-year yields above 23. we begin with a new map for the markets starting w