it is wednesday, november 5th. that's the day after tuesday, november 4th, 2014. "squawk box" begins right now. ♪ >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. a lot of interesting races to talk about this morning. speculation about what the republican agenda will be in january's gop-controlled congress. a special "squawk box" newsmaker this morning, former house leader eric cantor will join us on set since his stunning primary loss a few months ago. as for what investors should make about these results, check out sam stovall. midterm years are historically good ones for stocks. since 1946, there have been 17 midterms and every year following, the s&p has produced positive returns. on average, the index has risen nearly 18% after the following

12 months. check things out this morning, if you want to see the knee jerk reaction to some of these things, you'll see already the futures are indicated higher. we knew the republicans were likely to whip, but if you take a look, there were some -- this was what you would absolutely call a wave with some races that hadn't been expected to go their way going their way, as well. dow futures are indicated higher. s&p futures up by close to 7 points. nasdaq up by 16 points. as for the bottom, we've been watching oil closely once again. it is down again this morning, down by about 31 cents. 76.88. that's about where we were yesterday at this time. this morning, the ten-year looks like it is yielding. i can't see it because there's a line over the one place where it says 2.35%. the dollar this morning at this point looks like it is up against the yen, up against the euro, up against the pound. euro is trading at 1.2484. dollar slrn yen, 1114 and change. gold prices look like they are

down, as well. $1,444.80. a republican wave did sweep the midterm elections. let's get you to some of the highlights. the gop netting seven senate races. the party only needed to win six -- or rather needed six to win control of the senate. notably three of the contests were in the presidential palths ground states of colorado, north carolina. as for the house, republicans are on track to pick up double digit seats there. >> scott walker. >> a little history lesson there, too. >> scott walker, rick scott, as well. and early on, you saw something with gillespie and -- but i didn't see the ads. did you see the ads? you guys are both redskins fans. you saw the ad that he bought? >> yeah. >> that almost did it. >> that helped him. >> it was in virginia, always.

let's get to -- oh, are you guys ready for this? >> born ready, man. >> speaking of experts, you will notice, joe, that republicans are at 52 seats, which is the number that i told you yesterday. >> yeah. you were right. you were right. >> now it will probably going to 54. >> john, i've been giving you just slight -- just little pushes about maybe it's going to be a wave and you kept pushing back at me and i kept giving you the chance because it felt wavy as you were getting closer and closer. the thing that got me, and i try to watch a lot of different news outlets, there are two narratives. one was it was a lot of the mainstream media was anti-incumbentsy. people are just mad at washington. they want to throw the bums out. and those outlets would not say anything about unhappy ps with

the president's policies or just with progressive rule of growing government, never said a word. and then the other side, it was all anti-obama all the time. >> i was surprised by some of the polls, though, that showed the economy was the number one issue and that they -- >> it should be. isn't that what people feel? >> yeah. i think that's what this was about. but look, you can see this was health care. in 78% -- >> sorry, i didn't mean to interrupt, but ben white and megan -- john harwood -- are you from cnbc? >> i'm here. >> okay. >> i thought becky makes a good point. 78% of voters in the last night's exit polls said they were very concerned about this economy, but they broke heavily to the republicans. >> it's the economy, stupid. isn't that the saying? >> it always is the economy. >> it's almost like it is both

things, both anti-incumbentsy and -- >> they were re-elected, though. >> the economy was clearly a repudiation of president obama. you can't have republicans winning in his home state of illinois, the governorship in maryland, a lot of blue states and sweeping to possibly nine seats. this is a repudiation of this president, no question. >> there is a reason that every time in the last 100 years, except two, with a second termer or -- in no. that president obamas have lost seats in the midterm reaction. the reason is the president of the united states is the most conspicuous -- in the country and people take out their unhappiness on that person. >> there's a lot of things that were different this time. >> he was taking it to new levels with the number of seats that he's given up. >> that's not the point. the point is we knew that was going to happen. it was a bad map for democrats

and the president is low. he's at 40%. that has consequences for members of the party. >> but we should not underscore what a big victory this was for republicans. republicans within governship in maryland and massachusetts and here is where i disagree a little bit partnership thought and said often that this was going to be an anti-incumbent year. republican incumbents did much better and governors particularly. >> that's the combination that ben was talking about. >> double digits. >> he won by a wide margin. >> it was almost like the left knew a party and no one came. >> i watched again on the nightly news. i saw more still shots of her. looks like she was already governing very effectively on the shots i saw on the mainstream media. they did it and they worked -- they spent so much time prop her up and it never happened. >> wendy davis in texas early on was supposed to be there --

>> they lost by a million votes. >> one more thing that i remember talking about. >> one more thing? >> no, no, this is not bugging me. >> with the huffington post there was -- >> i talked about it here. it was they were air -- a huge win for obama, a huge endorsement. and i looked to see, who you, who said it? and it was mark pryor, a democrat that voted for obamacare, admitted that finally -- finally admitted that he had voted for obamacare, but he didn't call it obamacare. >> i got an e-mail from "the nation" last night. their hell was the democrats lost big, why obama should double down. and the neat is now republican, here is why that sucks. what i wonder about this, the left is not going to let up on the president. does he respond by saying we have to compromise or does he --

>> that's a big choice for him to make. >> he's going to dig in. >> you made the argument by this morning that he was digging in by going to asia approximately. >> is he going to do that? >> yes, he is. that will be a stick in the eye for a republican congress and it will sour relations for the last two years. he will get nothing. >> remember at the white house, i think he's mad, he's probably madder now than he was. >> i'm sure he is. >> and do what he wants to do. look, i agree with ben. he's going the take the action on immigration. although with his -- he takes his sir couple scribe by this reven majority. the opportunity and the potential for republicans to push back effectively is much bigger because of this win, not only on immigration, but also on the environmental protection agency and the rules on carbon. >> i like that.

>> yes. >> but remember, the core disagreement between the two parties is what happens to the size of government and do you close the gap between our obligations and the money coming in by producing more money? i don't think he's going to bend on that. so the question is, social security and medicare, for example, do they get smaller? how much smaller do they get? if you don't have any revenue, they have to get a lot smaller. he'll fight on that and they're probably win. >> immigration is right. nobody is going to work -- dead here. >> yeah. the question is not -- the question is what can the republican party do? >> is there a waiver with -- >> no. >> but there should be consequences from elections. this is the public saying they would like to see some sort of compromise on issues. >> i don't think that -- >> right. but i think it's the opposite of

that. i think republicans are going to be in this wave election to say we don'tny to compromise with you on anything. we just blew you away and -- >> but this is the -- >> but we're not -- this is the danger of both parties. it is unfortunately probably the fact, but this is a huge opportunity for the republican party and if we don't seize it, we will have no chance of winning in 2016 elections. it is coming together and passing legislation. the president can -- tax reform, economic growth, social security reform. >> but that gets to the core question. tax reform, republicans want to cut tax rates and cut revenue. okay? >> i think corporate -- >> better -- corporate tax reform will grow the economy, which will give something for republicans to run on. look at what -- >> yeah, but republicans haven't been willing to move on corporate tax reform without personal tax reform. if they don't disconnect those two, not happening. >> look at what gillespie did in

virginia. it is still too close to call. he ran on his own health care plan, on his own economic plan. he ran on policy. and yes, he had a really great ad in the football game, but i think he did well last night because he is one of the few people who actually ran on something. and voters rewarded him on that. >> but there will not be a republican health care alternative to obamacare that is enacted into law. that's not happening. >> i agree with that. but then we can have an intelligent debate in the presidential rate about what policies we're moving forward as opposed to a race to the bottom and to which party is worse at governing. >> don't we need to have a debate on some of these things before the presidential race and don't republicans have to demonstrate before the presidential rate race that they can govern with a majority? and i think they'll be able to demonstrate that for some of the reasons john said. >> what's going to get done trade deals, maybe? >> yeah. >> so two trade deals. maybe a little bit on infrastructure because i think that republics are going to want

to show an interest in delivering on that. very, very little. >> this is -- i know you disagree with me, but there are big swings in the u.s. politics, sort of the -- in the way the public views overall directions for the country. and there have been times in the past where you've seen the pendulum swing. my point was if both parties have a chance to screw this up over the next two years, but if the republicans don't screw it up, i would say it wasn't just anti-obama rhetoric. it wasn't just anti-incumbentsy. it was anti-progressive policy backlash that could swing the country even in 2016. >> what is -- >> the republicans don't -- because if the republicans zaupder this, we're going to go back to smaller government. lower taxes, less regulation. more -- >> i think it was. >> more disagreement between the drn. >> i think you're right -- >> both parties in the country. >> except for social issues.

>> i agree with you. we are center right. but the core disagreement between the parties is really about social security, medicare and medicaid. >> size of government. >> that's where the size is. >> and last night -- >> and do you want to address those at some point. maybe even the republicans -- >> but that's -- did any republican run last night on cutting social security and medicare? no. >> but i think the country -- >> social security is different than cutting it. >> yes. >> they can make an agreement on those issues if republicans put some revenue on the table. >> but you -- >> the party that the country wants to try to jump start the economy in the exit polls is now the republicans. and that wasn't the case for the past couple of years. they thought, hey, let's try some of these things. let's try this $800 billion stimulus. let's try infrastructure. >> with the counterfactual. i think this economy is much more tepid than it should be. >> markets up, unemployment --

>> markets up. look at the fed. there's a lot of -- we can both argue about that. >> i agree. but i think at this point we're back to trying some version -- not of trickle down, but of making business to allow job creation to come down from the private sector instead of a government sector solution to everything. that's what this election is. and if they don't lessen up -- >> that's one thing you won't see the last two years is president obama making a deal with republicans on some version -- >> no. i don't expect him to get any friendlier with the private sector, i don't. >> it's obviously true that there's a -- republicans were given the keys to the economy saying you can do some things -- >> they had a key before. they ran it into a ditch. remember that? >> what do they do with those? >> that's what i mean. >> they can make the economy get better and -- >> and in two years they can squander this in two years by being bad winners, by being sore winners, they could squander it. they've done it before.

>> we saw ted cruz last night. he would not pledge his support to mitch mcconnell. >> mitch mcconnell doesn't need ted cruz right now. >> welch, all his friends are calling him, he's jumped the shark, they're calling him, what are you, a wing nut now? the republican has to run ted cruz. he's folding on things to go with -- >> go with -- >> you say that. i know that. >> and i think i would agree with you. it goes back to your social issues. >> yeah, right. >> when he was here, he said if the states decide to do these social things, he has no problem with it. >> i think for the vast majority of voters who think about a president who gets to select people who are on the supreme court, for example, and those -- look, then -- >> all i know is changes in dynamics -- >> how does it -- >> into learning another -- you're lowering me into running another romney or mccain, you're making me think, yeah, you're

right. but why should i listen to you? >> i don't want the other side to win. i want the -- >> there you go again with that. if you guys want to win, you should run a moderate. run someone right in the middle. >> there you go again. >> there you go again. >> that's how you -- >> we had the same coloring, too. >> becky made a point earlier, which is a secular problem, okay? the problem is that the american economy is not delivering rising living standards to average families. that has been true for a long time. >> who do we believe can fix it? that's the question. >> a couple of years ago when we were just moving into the 2010 cycle, i talked to bob leischauer, former director of the congressional budget office, a democrat. he said we were in for a long period of voter discontent and of turbulence with one party getting in, getting kicked out, another party getting in, getting kicked out. why is that? because we are now in competition with hence of millions of people around the world with lower living standards than we have and

others are not rising. >> right. >> that is a problem and the age old question. >> do you solve that with redistributing a smaller pie or do you solve it with growing the pie and hoping that everybody -- >> you saw the growing the pie. >> the question is, how do you grow the pie? by getting out of the wait of the private sector. you don't incumbent the private sector and redistribute more and put more regulation. >> and that's why the bush economic record ended so successfully? >> that's why the reagan economic record ended so successfully. >> we're going to continue this conversation. >> we're going to continue this conversation for the next two years, actually. >> up next, why equity futures are indicating a bullish investor reaction to the election results. and then later, adam richman will join us to talk about why they're hanging out with tech

and foodies and how he's recovering from an inextra gram battle. we'll tell you what that was all about in just a moment. for access to one of the top wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more. it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement.

welcome back, everybody. what impact the midterms could have on the markets? this from jm morgan may give you a bit of an idea. the stock market rarely embraces change, regardless of which party is in power. stocks traditionally rally in the year after the midterms. take a look at that. you see the average incumbents

gain seats versus the average when incumbents lose seats. >> i thought the one thing that always holds true is you get a republican and democrats in both houses and it's always good, right? >> it's like twitch, right? >> yonl about that. >> this is a very small number of cases. >> stocks go up these days. when we go through an appointment -- >> it does matter. joining us now to talk more about it is drew mattes. james lew is the global market strategist at jpmorgan funds. james, why don't we start with you. we saw what happened with the election. this was bigger for the republicans than some had been anticipating heading into this. what does that mean for the market? >> i think it is good for the markets.

>> it's more turned out the way we expected i. i would think the energy policy, it has increased. which coincidently, we also pushed down energy prices to an extent. i think immigration reform is slightly more likely, although finally, i think corporate tax reform is slightly more likely. also no terribly optimistic. it would be great if it does happen. >> there were some things this morning, ben white pointed this out in this morning's money notes, that house majority leader kevin mccarthy has been saying things like we're going to dry and govern differently. we don't want to be lurching from crisis to crisis. we don't want to be dealing with the fiscal cliff issues. is that something that you think fits? if that's the case, what does that mean? >> i'm optimistic about this. you look at last year. those events hurt markets. from my perspective, the best

situation for government is to kind of get out of the way of markets. we're still up. that's the markets over the in fact couple of years. >> how does this change your forecast, if at all? >> it really doesn't. our guys in washington called it. everyone is worried about investment. but from our point of view -- >> investment in the energy sector? >> investment in the energy sector going forward. but from my point of view, we're in that sweet spot still where energy prices have come down enough. the consumer is going to have more money to spend heading into the holiday season.

>> it's a sliding scale, right? so there's a continuum. and some people are basically priced out of the market when the oil drops below 80 and they don't want to make further investments below that level. other people are at 75. some people will be at 70. so it's a gradual move as constantly erodes the investment cycle. but once again, also, we should bear in mind that it has to be sustained, right? you and i go into the gas station one week, two weeks. that makes more of a difference than someone who is out planning what their investment profile is going to look like for the next 12 years. >> let me get your idea of what would be the perfect washington scenario over the next couple of years. something gets done or nothing gets done? >> i would just caution that usually the people who get things done and solve long-term perhaps pay for it in the end. that's part of the reason why you see in washington not a lot gets done. if you solve a problem by raising taxes or cutting benefits or doing whatever, you get blamed for it in the end

before ungz the benefits and before people understand that in the long-term you did the right thing. and that's part of the reason why it seems to me like washington has much more of a short-term focus because you get to get re-elected. >> james, joe mentioned this. a lot of times lately it's been central banks and international headlines that have moved the markets more. is this something that you look at and you think, okay, this matters, but not that much? >> yeah. i think u.s. investors should continue to focus on u.s. events. despite the midterm elections, despite the uncertainty. we're having a record earnings season right now, about 10% year on year growth. and they are into guidance for the fourth quarter. but broadly speaking, especially with low energy prices, consumer discretionary could see a bounce. i think earnings are what we should watch and we have the

labor -- >> we -- >> in between 9,000 and 17,000, how many points for the fed? >> i think with the fed, we're going to see short-term volatility. >> how many points were if he fed? >> how many points for qe? >> i think very little. >> really? >> i think qe -- >> but even if you say it just helped the economy? >> you would have to -- >> i don't believe it helped the economy. >> it didn't help the economy at all? that's an interesting -- so it's not passing the baton, all along -- they are start to get better when the fed pulled back. when they start tapering, that's when the xhp economy began to accelerate. i don't think it's a coincidence. >> so all of this talk that this is build up on -- >> when you tell people -- >> these guys are not going to -- >> they're supposed to do it all here. >> very strong in the u.s.

that's not cheaper, but -- >> forget about anything else. nothing to do with it. >> thank you, guys. >> james -- >> he's just happy the republicans are back in to just go crazy again, whatever it wants to do. right, james? >> sure. >> i said that before, you know the ceo like the president. liked the president. >> which one? >> jamie? >> yes. >> oh, jamie, long ago, said i'm -- he said five years ago, i'm barely a democrat any more. >> did you ignore him when he said that? >> i was there. i interviewed him. i remember that. >> that was five years already. >> it would be interesting -- >> they put a hit out on him. >> coming up, the french government gives the green light for the ge option deal. we'll have those details next.

shares of tesla more than 50% this year, but they're down more than 5% last month. elon musk's company, is it slowing down? that's next. and as we head to break, a look at yesterday's s&p winners and losers. act i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access.

install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm. an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov sometimes they just drop in. always obvious.

cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*?

♪ good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky

quick and andrew ross sorkin. taylor swift, selling 1.3 million copies of her new album, 1989 in the last week. the data out from nielsen sound scan, it's the first album released this year to sell a million copies overall. it's the year's second highest seller overall and the top selling was was "frozen." >> these are real albums. we were talking about this yesterday during the commercial break. there was a great article. remember she wrote that piece in the "wall street journal," and said that she didn't want to sell on spotify. her manager has a -- it might be that he doesn't want to put it on spotify because he wants to get a higher valuation for his company. it doesn't seem to be hurting her. >> but i would argue what she's done cannot be replicated by most artists.

probably not. >> on the "saturday night live" of a week ago, they did the -- that for people that admit they like taylor swift, there's like a drug that -- a new medicine for those affected by the vertigo after they discover their love forte lore swift. they had a bunch of people going, oh, my god, i like this song. i'm getting dezzy. after they find out it's her and they like it, they get vertigo. >> were ow "saturday night live" this week? >> was i on? >> did you go there? >> i went there. >> with chris rock? >> yeah. >> that was the -- that was probably the best "saturday night live" in quite some time. it was something. >> he was at the after party, yeah. >> i don't understand why you're keeping this from us. >> i'm not keeping it from you. it was a saturday night. i just tell you what happens during the week, usually. >> it was literally one of the greatest "saturday night lives" i've seen if a long time.

>> i agree. >> and chris rock telling jokes that were completely -- >> you knew somebody? >> i mean, i know everybody. in corporate news, the french government, the french government, i know them, giving the green light for ge's planned acquisition of the power business, shares of ge at this hour. let's take a quick look up. there's a one-year chart, up and unchanged. for more than 40 years, lauren has been doing -- tried to connect the dots between the biggest stars of hollywood and where they came from. unbelievable. >> oh, lauren is the -- >> and is a businessman. >> everything. >> unlike most other tv producers. >> huge fan of his. that's my idol. we know each other from working here for 20 yearsing on together. let's get behind the wheel and talk about tesla.

it's a huge focus. it will be on u.s. sales figures after controversy that happened in late october when ceo elon musk called out "the wall street journal" on twitter saying, quote, article in the "wall street journal" regarding tesla sales is incorrect. it was a record high worldwide and up 65% year over year in north america. joining us now to talk about it, george gallo with isi group. what are we going to hear? >> yes, good morning. we think the -- for the quarter will be on global delivery number and also on the growth margin. with respect to the global deliveries for the quarter, the company are gooit guiding around 7,800 units. we are looking for just under 8,000 units. and with respect to gross margin, we're looking for 27% in this quarter. >> george, the thing that i don't understand, "the wall

street journal" has been sent after them on all sorts of fronts. what do they have to tell us about, for example, the x model to make investors truly happy? >> well, i don't think the investment cases resolving around the x. but, of course, the x will be a key model when it comes out for tesla, given the global growth we're seeing in the s&p demand. with respect to the x, at the moment, we're looking for delivery data towards the middle of next year, maybe q3. it's the x actually ends up coming out a bit later than that for whatever reason, could it be the price restraints just by a decision by tesla to bring its market later? that doesn't really change the investment case here. this is a long-term strategic play and we like them telling us. >> george, i have a question for you. it's the headline of a forbes

story that ran, i believe, yesterday and it said is it time to admit defeat on franchising independent dealers? effectively, should they start franchising deepe ining serials opposed to trying to do it on their own? >> we could see an argument for that if we felt that it was preventing them from selling the volumes they were producing. but clearly, its production where you have the constraints and not on the sales distribution. we like the direct sale models. for us, it's advantages, not only the margin on selling the vehicle, but greater control of the customer and, of course, the direct feedback. >> okay. george, we're going to leave it there. they do make beautiful cars. i don't know about their valuation. but thank you so much for your time this morning. >> all right. we should tell you about some news just in from goldman sachs.

goldman sachs has been named a defendant. the suit allegations misstatements and omissions in connection with the 2013 bond offering. this occurred last month after gt files for bankruptcy. >> a time of people on the street mentioned that to me because they thought with the new iphone they were going to be the ones to provide all the glass. >> gorilla glass. >> it was heavily shorted. a lot of people said how come you never talk about that? it's the next big -- it didn't work out. >> we'll see what happens with those shares today. up next, food is on the menu this morning. the man who has made a living georging on monster burgeres and spicy peppers will join us right after this.

i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn. ♪ introducing synchrony financial. bringing new meaning to the word, partnership.

banking. loyalty. analytics. synchrony financial. engage with us. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪

taking place this week, it's the dublin webb summit. one of the bits that the techkies are biting on is the intersection of food and technology. our next guest knows a lot about both subjects who has made a living out of eating everything from 72 ounce steaks, he's learned the hard way that technology, specifically social media can give your brand. the major indigestion sometimes. good morning to you. >> good morning. >> we have a bit of au delay, bt

i have about a million things i want to talk to you about. adam has gone up and down in weight over the years. because he has to eat all this stuff over the years. >> i want to talk about social media just for one second before we get into the future of media and food and everything, which is this. a lot ofviewers, both individually and in business, are trying to figure out how to react with social media. you had your own kerr flulel to put it mildly over the summer with some remarks when you put out this hashtag inspiration and that came back to bite you with all sort of haters saying lots of things. and then you hated them back and that created its own firestorm. i don't know if you want to talk about that experience, but how did that impact you and what was the lesson for everybody who is watching this kind of thing? >> you know, that's the exchange

you make. if you're in the public eye, there is a degree of expectation there is an expectation put upon you. like it or not, there is no sense in engaging in any twitter or instagram altercation. also, recycle something larger than yourself. the network, your brand as a whole. and, you know, the thing is, the ramifications that were greater than myself, this was my judgment, but then my crew lost work, over 50 people and every restaurant i've ever shown has been an independent business but got 100% to 300% more business because of being on my show. there is a trickle down effect. i guess if there is a lesson learned, simply there is no person and you just have to swallow it and move on. there is no upside to engaging

with hatred. >> and the show got pulled at the time. how much time to you spend on social media? >> i mean, i check it daily. i check it daily. i'm on facebook, i twitter, instagram. i have my own website that i'm building. but i love it because it's actually -- it's right where the rubber meets the road with fans, with foodies, with restaurants. you know, when i hit a new city, i'll ask for new recommendations. if i have a recipe, i'll share it. if someone has one, i'll share it. that is a beautiful thing with social media and the way the internet is intersectioning with food. the flow through of ideas happens in realtime so you can gauge reaction to what do you think of this recipe? or i'm about to judge this or which one do you think would win when i judge the vending awards for the vending trucks and push cart vendors in new york. that's what's beautiful about it. but i'm on social media daily.

>> adam, is there a way to turn criticism? meaning to the extent that there is criticism, and as you're saying the haters online who, you know, can make these awful comments, sometimes very hurtful comments, is there a way -- you suggested perhaps to ignore them, but is there a way to take it head on in a way that actually works? >> you know something that i've found, regardless of whether or not it's intellectual discourse or lashing out, obviously, is a poor idea. but jimmy kimmel has been very supportive and he said at the end of the day, people can say what they want and we can't respond. more eyes are on us than on them. so regardless if you're very articulate and very forthright and very well thought in your response devoid of any profanity or intense thought, at the enof the day, by you responding, you are laying credence to these faceless keyboard warriors. again, it sort of slows you down. when people want to know great places to eat, great meals, i've

had experiences through this summit, any sort of acknowledgement of hatred or dissent steals your shine and i've got no time for that. >> awesome. adam richman, thank you for joining us this morning, man versus food, we appreciate it. coming up, attention, road warriors. the hotel counter is about to be the thing of the past. how hotels are putting you in charge with a simple scan of your smartphone. the company's ceo will explain when "squawk box" comes right back.

what if we finally had a back yard? that would be amazing. hey, what if we took down this wall? what if this was my art studio? what if we were pre-approved? shut up! from finding to financing, how'd you do that? zillow. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and 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. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision,

or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.

starting today, guests will be ail to use their smart phones as room keys in ten hotels around the world with. the plan is for the technology to go company wide next year, but investors have not been cheering the other recent moves by the companies especially when you look at starwood's performance with marriott over the that's year. joining us now, the president and ceo of starwood resorts. thank you for letting us now though it works, it's a smart phone. you check on yourself to get into the room, and the staff can, i don't know, give people massages or something, frees them up for other service orient thin things, right? >> that's rights.

you book a room, a few hours before you check in, a text say your room is ready, click on the green number, you see your room number, come to the hotel, put your device right up against the lock, and you're in your room. >> wow. >> other people have some type of wireless stuff going. the industry is moving this way. right? is this -- is your system better or sort of a me too? >> well, i don't know. we have not seen our competitors actually do this. for us, though, what we do with keyless is enable ourselves to begin a dialogue with the guests on the way to the hotel and when they are on the property. like the mobile is your remote for how you live, it's the way you interact with us and get better service, and so as you said, going keyless takes a pain out of the travel process, and it frees up the people in the hotels to take even better care

of the guests. >> so in the most recent report, earnings report, there's -- you know, come of the analysts scratch their heads, others wonder about the forecast. there's issues as well as some other things people do not understand in terms of asset sales, hotels converted to franchise hotels. what's happening at the company? why were people surprised things were not going as well as they had hope? >> well, there were a few surprises to the upside, first of all, the third straight quarter this year, we beat earnings expectations, and the other thing is in agate, the hotels out perform their direct competitor. because we are are more global than any other hotel company with 80% of the growth and 60% of the rooms outside the u.s., when the u.s. gets stronger, our business is relatively less strong, so what's been a tail

wind for us the last four years as the world's economy grew faster than the u.s., this year, right now, it's a bit of a head wind, but it's minor. we'll continue the growth, not only in the emerging markets, but as occupancy now is at the sixth straight quarter high in the u.s., we see growth coming to the u.s. as well. >> how long is it -- is it a new cfo? >> yes. so we have a new cfo as of september, on his first call with us, and he's a quick study. he came to us with someone with global brand experience, understanding how to operate, was president of a division after having been a public company cfo, so he's a great add to the team. >> we have been having a lot of conversations about buy backs, and there's been talk about some of the buy backs that starwood has done and the stock is down from the timing issues on the

buy backs which we wonder, should a company always buy back stock other only when the stock is cheap? >> so here's the thing, joe, and you eluded to it earlier. we are in the process of making an asset like company. today, 65% of the earnings come from the management and franchise fees. the others is from earned realize. we said by the enof 2016, we'll be at least 80% fee driven, a more pure play in the asset light return of capital side of business. what that means is we're going to be selling hotels and as we increasingly are fee based in the business, we get cash from that as well, and as we got into this year, we were very under lev ramged, so this gives us the opportunity either to buy back stocks or invest back in the business if there's an opportunity, but what we're doing next year is evaluating both options.

>> as you sell more hotels and move to the fee-based revenue model setup, how do you make sure you control the brand? star woo's be starwood's a good brand and name consumers rely on. how can you continue to control the brand? >> the key for us is to find the right partners to work with. in fact, today, already, 97% of the hotels are owned by real estate developers, investors around the world. the business is built on making sure when we manage a property, we deliver branded experience, or when we franchise, work with partners who know exactly how to manage the hotels and deliver the experiences we know our travelers expect. >> all right, thank you. we looked at long term charts, looks great. at the end, there's an illustration of what analysts thought was not great communication. maybe the new cfo, maybe back on track, we'll watch and have you on in the next few quarters if

possible. >> thank you. >> okay, coming up, former house leader eric cantor first interview since the loss months ago, and we return with mr. cantor in a moment.

how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. and often even more. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business.

big shift of power in washington, the senate turns red. what is the g.o.p.'s next move, expect gridlock or more action? cantor sits down with us in the first tv interview since leaving congress. >> it's time to go in a new direction. >> the other power struggle. crude prices keep falling. good news for consumers. the bad news for the oil patch. is the nation's energy boom in

jeopardy? >> the world's power players from putin to the pope, who has the most influence over the globe? second hour of "squawk box" begins right now. >> welcome back to "squawk box" on cnbc, capitol hill waking up to a new republican majority in the senate and more power in the house. i'm becky quick, and our guest host this morning, eric cantor, with us for two hours to cover a lot of ground. first, the market's reaction to the news. the futures are higher, dow up a 1 points above fair value, and s&p up 7 points, and nasdaq up 16 points. we have to take a look at the price of crude oil. it's down this morning, but has picked up some steam from where it was yesterday at this time.

it's down by 5 cents. >> let's get the midterm highlights this morning from cnbc's washington chief correspondent. how late were you up? >> it was late, let's not talk about it. >> you don't want talk about anything -- >> no, no, no, we're about to talk about it. we have the difference between the ordinary election and wave election. what defines that happening is when the race is on your side that you think are going to be close turn into to be blow outs. the races at the other side to win easily become very close. look at mitch mcconnell, for example, that was a race that polls shown was close throughout the fall. mitch mcconnell won by 15 percentage points. that's what happens in a wave election. look what happened in the state of virginia. this is a state, mark warner is the incumbent democrat, and he had been expect the to win easily over the former

republican national chairman, and look what happened. one point difference, could have a recount. mark warner is not the apparent winner, but that's what happens in a wave election. the governor's race, totally out of nowhere in maryland. a very blue state, martin o malley a popular governor, and brown was nominated to be the standard bear, and he was crushes by hogan, and lair hogan won the election easily. here's another surprise on policy level. we had in five states, four are blue states, minimum wage on the ballot, and what we saw in states like nebraska, in arkansas, in alaska, illinois,

that test, on policy, there's some issues where even though democratic incumbents were defeated last night, even though president obama was smacked down hard by the electorat where his position is prevailing, guys. >> wow, okay. i guess that's -- that's sort of a silver lining, a bright spot. for 13 years, eric cantor, our guest host, served in the house of representatives, and after a primary defeat this summer, returned to the sector, and vice chair, eric, joining us now for the first tv interview since resigning as majority leader in august, and great to have you, eric, and we got to get it out of the way from the start. what's the target for the s&p by the end of -- are you a banker

now? do we have a whole new set of questions for you? who are you? >> it is great to be here, be back on, and, yeah, i'm newly vice chairman, a great opportunity for me, and i've been on the show for years, and very focused on the intersection of policy and business, so, really, have been doing a lot of travel since i first started, not domestically, but internationally, and, you know, it's amazing to see the focus own clients have what's going on in america, and everyone pining to see america's return to leadership. again, last night, i think, is an example that hopefully the world takes stock, sees decisive moves by the voters of our country, and now it'll be up to washington to step up and deliver so we can see the return to the growth engine we've all been longing for. >> you talked a little bit off

camera about all the things that were written about how you handled what was kind of an adverse situation that happens -- >> had a lousy introe -- >> i don't know about that, but we all have things that happen in our lives, and that depends on how you handle it, and almost universal acclaim, and you say even a lot of people, even democrats, suddenly, they like you. they do not call you that eric cantor anymore, right? >> it was amazing. it's amazing what happens when you -- >> and you went to wall street. >> right. >> you cashed in. they are still not -- bizarre. you did, kudos on the class you showed. i think you -- what the hell happened? at the wrong place at the wrong time. bittersweet at all you're not there to enjoy this? >> listen, you know, i think in life, you know, and if you have kids, you know what you're always telling them that a lot of times you don't understand what happens and may not seem fair at the time, and all of us

know as one door closes, others open, and, you know, i feel i have a great opportunity now to bring to bear the experience i that had as majority leader, so, again, at the intersection of a lot of very complex problems and personalities, business and policy and politics, and now be able to take that experience and the judgment, hopefully that came from that, and bring it to work for our clients, and to be able to do so in the way that the firm has, there's a real mission to do it in an i want mat passion in a nonconflicting way. very excited. look, you never know. you never know why things happen. i'm always one to look forward, not look back. >> eric, what do you think happens now that the republicans have the victory? we have been talking about it all morning long. the question is can they make something of it and get it done or does it turn into what we've seen for the hast six years, every party that wins squanders the win and gives it up in two

years. >> part of that, it's a game of expectations. you have a resounding win and wave-like effect last night, and people begin on the republican side, saying, hey, now we can do that which we have been wanting the last six years, but the problem is the president's still in the white house. that's measuring expectations is probably some good advice from former friends and colleagues in the house. i know that leadership, boehner, mccarthy, and others want to get something done. the majority of my former colleagues want to deliver, but as we saw over the last several years is as audiotaoftentimes a minority gets in the way to bring about things we saw prior, whether it was a fiscal cliff or a shut down or the near approach of a debt default. those are things that i don't think the majority of members

want and hopefully we can steer clear of that. >> did you hear from president obama? >> actually, i did not. >> not a word? >> not a word. i did from the vice president several times, and several of the members on both sides, obviously, have a lot of friendships there. >> huh. >> you know -- >> that's -- well, because you know him, and you had your moments with him, and i was thinking if he had contacted you and sort of -- you'd have a better idea of what we can expect now on which way he moves. i mean, since there was no love lost back then, you'll say you don't expect him to attack the center, but be on his heels or -- you know him, do you think we should be optimistic how she reacts to the election? >> i think we'll be able to tell not only from his stand point but from the republican stand point in six weeks about what

2015 looks like. there's two things that are telling. one, the president has continued to say he's going to continue with his mission on immigration reform with or without the congress, and if he goes ahead and yunilaterally signs an executive order to do what he's talking about, my sense is that that will light a fuse, and we don't want to light a fuse. i don't think that the american people want to right now. i think they want to see folks work together. that's number one. number two, on the republican side, again, i think that leadership is firmly committed to trying to address the spending question to get the kinds of things that still are left undone off the table. as we know, we have a spending package that continues resolution expirie ining decemb 11th, and if that is addressed and able to see spending bills completed, signed into law to get on to the next year and look at the new issues that are

confronting the country, most likely, hopefully the pro-growth issues we've been wanting to get across the table, if that happens, i think you're going to see a great 2015. if, on the other hand, you see some folks say, hey, wait a minute, we want to make sure we kick the can so we deal only with republicans in the senate, and we can deal with the republican congress, then that -- that gets complicated. >> eric, here's the question. joe biden, a friend of yours, does he have enough sway to persuade the president on something like immigration? to hold back or to find a way to do something that feels a lot more like compromise? >> i would hope now the signal that the president takes from last night is you have got to end -- >> but who is around him that you think, if you don't think he, on his own, will make that decision, who would have the influence to do that? >> andrew, i've seen articles

written that gibbs, they a all out of favor. more isolation. >> that's what i'm trying to understand. put us in the room to explain how -- >> who is advising -- >> vice president biden knows capitol hill. as we know, he's been in that town for -- i bet almost 40 years now. he understands people, knows how to make a deal, and 23 the president is intent on trying to change the response to last night, i think he'd be well put to say that vice president this morning, go, let's see way we can do to work together, bring both sides together. >> i mean, in the tax deal that finally got done -- >> biden's the guy who makes stuff happen. >> decided that gay marriage was okay, and the administration takes it. talk social issues with you, you're not running for election now. we can see how you feel about this stuff. >> you know, joe, i have said on this set before that the mission for the conservatives and the

republican party is to make sure we broaden our appeal. >> yeah. it helps to be able to get elected so that you can govern. i mean, if you stand by your principles and, you know, i don't know -- and then you're not elected -- >> it helps to get things done. i think that's the critical piece. >> don't abandon the principles, but move with society and look around. can't be in the 18th century as a republican for the rest of your life. >> you have to be tolerant of diversity of others on both sides. on both sides. >> republicans have to decide who they are in 2016, you know? >> the next two years gives us the ability to put out there and see what we stand for. last night was a repudiation of what's going on. >> a repudiation of incumbency or the president? progressive policies, it was all of those. >> all of the above. >> i think you're right. much more with leader cantor,

and you're going to be there -- >> i have told you that i've -- years ago -- >> back then. you say don't, you say, yeah, yeah, call me that. >> well, thank you, eric. we'll continue with eric in a bit. when we come back, though, the senate turns red and gop picks up more seats in the house. will this just mean more gridlock, though, on capitol hill? ford, jr., the democratic response, and power for men and women. the most power. that's next." squawk box" returns in a moment. (receptionist) gunderman group.

gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics.

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. and often even more.

it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business. watching the futures, and after the midterm, things picked up more, and dow futures up 71 points above fair value, and s&p up 10 points, and nasdaq up by 19 points. among the stocks to watch today, time warner reporting adjusted third quarter profits at the 7 cents a shear, three better than the street expected, and strong revenue growth for turner broadcaster and hbo. >> talking about the fallout from the midterm elections this morning. the big turn, republicans grab the control of the senate, and joining us now to discuss this and balance of power and potential field for 2016 as a result of all of this, harold

ford, guest host, eric cantor, giving us a bipartisan version, but, anyway, the democrats this morning can't be too happy. do you look at this as a repudiation, if you will, of the president? >> first of all, good morning, and good morning to my old pal, eric. i think it's hard to disagree with the way that eric described what happened last night, and there's going to be a lot of autopsy and appraisals. main thing is do what you are doing this morning, look ahead. if i were to advise the president, and he'll give remarks later this morning or early afternoon, he has to take responsibility and say all of washington understands the resounding message sent by voters across the country. this is not unusual for voters in midterm and presidential elections to send big, big messages to washington. hopefully they get it. i think the country wants republicans and democrats it

work tailgate on all of the issues you have touched on this morning. i was pleased to see mcconnell's message and reid's message last night, different tones, but both interpreted last night's results as the country urging them to get to washington, work together, get things done. i hope, if, indeed, if the president disagrees with the republican congress on energy, trade, taxes or any spending or defense spending on changes to defense policy, he offers acceptable alternatives to the congress in which they pass or find compromise on. >> hey, harold, it's eric, good morning. >> good morning. >> i would ask you -- good to see you always -- whether you think the president and white house are willing to take your advice? i would say specifically, you know, what has gotten a lot of republicans upset is the unilateral moves by the

executive branch and president, and there's reports he's doing that on immigration shortly, and you can imagine that gets tempers flairing in wash. will he refrain himself and the pen and phone route? >> i hope he does on a variety of matters. i hope there's compromise. i think one of the things we have to watch for in the senate, and i know eric has not been in the senate, but ran the house, but i hope and i said on the network yesterday that the leader of the republicans is not the cruz wing of the party, but the portman wing of the party. if that's the case, eric, there's room for agreement and compromise to be found, and, you know, certainly hear voices like mine, moderate democrats. it's harder if cruz's voice or wing of the party is a dominant

force, for that matter, the negotiating wing of the republican party. >> harold, you know, this is cnbc, not some other network. if you were -- that's a joke -- if you were -- answer me honestly here, you're on a continu continuum. portman here, president obama here, where are you? in the middle? leaning towards the president in terms of economic policy and private sector? morgan stanley as well, don't forget, i know you know that, but closer portman or obama? seriously? >> depends on the issue. joe, i'm a democrat. >> you're from the south. you're morgan stanley. you're -- i think you're -- that's equal distance, my friend. >> i'm a believer that markets and business are critical to creating jobs and creating growth. >> okay. you said portman then. you said portman then. you just said portman.

i heard you. >> the president's done a good job -- he didn't stop it, but the market has grown. >> he didn't stop it. >> i would agree, joe, but let's look, there's good things that happen. now, to your question. i know where you are going. we need compromise. portman is one of the voices, representing the most important factions in politics this morning. if the president and white housements compromise, it's portman and that wing of the republican party in the senate that gets it. eric asked a question, do you believe the portman voice, wing, and used rob as a metaphor for an approach that i think he file many times in the congress, do you think that's the wing that leads? or cruz? alarmed it hear cruz not publicly saying he would support mcconnell for leader. i don't know if he's running or leading a renegade effort. that's a critically important question as well.

>> where are you? >> you know as well as i do, i try to affect results. i was there pleading with a small minority in the caucus and house saying a government shut down is not a good thing, to sit here and play with the debt ceiling in our country was not a good thing, so i think you know that i'm much more about trying to advocate for results. i think that is what the electoratemen electoratements. >> i agree. >> our republican brand needs to be focused and to say, look, we are about trying to be there for the working middle class and for the pro-growth advocates in the country. work with us. >> one question -- >> yes, sir? >> about the democrats. so becky raise the issue of the magazine "the nation" this morning and the position they've taken. the new republic this morning, headline, obama lost the battle for the senate, time he waged war for rio, they say.

just two weeks ago, you had hillary clinton out campaigning, making observations and comments clearly antibusiness, clearly more to the left and more progressive. does this really change things for them? >> well, fortunately, the nation magazine and new republic are not innocent. i heard that e-mail this morning. i do not align or resemile -- my politics do not resemble those remarks when he speaks whether this state or washington or the capital, and you grow the economy and make the country safer. no doubt that ebola and isis contributed to what voter -- >> the democratic base is now being led to some degree by sort of the elizabeth warren regressive -- that's where --

you don't think that's where the base is now? >> i have not hear the case that the new republican and nation -- those editors write magazine editorials, and where i come from, bless their hearts. we have people now charged with leading the country. i think this president, we'll learn a lot today from the tone and from the substance. this morning, i'm a believer. we have to find ways to work together to find compromise in trade and taxes and energy and immigration. if, and, again, 23 the portman wing of the republican party is leading, i think we have a real opportunity, and i'm one of the democrats critical of democrats if they choose not to. >> okay. we look forward to seeing you again. >> bless their hearts, we know that what means. >> yeah. >> coming up -- i like you guys out of the politics and in the private sector, but sometimes i think we need guys like you. i don't know. how do stocks perform after the midterms? we'll have the numbers and that could mean more records

frustrate s&p 500. we'll be back in a moment. i'm new ensure active clear protein drink. clear huh? my nutritional standards are high. i'm not juice or fancy water. i've got 8 grams of protein. twist my lid! that's three times more than me. 17 vitamins and minerals. and zero fat! hmmmm. you bring a lot to the party! yay! new ensure active clear protein. 8 grams protein. zero fat. 17 vitamins and minerals. in delicious blueberry pomegranate and mixed fruit.

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. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

still to come this morning, crude oil hitting a three year low. prices could keep falling. how much pain can the oil patch take? plus, the price of gold trending lower. how this plays out for investors. talking about that next in the trading box, and "squawk box" will be right back. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn.

welcome back to "squawk box," among the stories front and center this morning, president obama holds a news conference at the white house this afternoon, after the republican party swept the midterm elections to control both the house of congress and the senate. pimco reporting a record, and the firm comentinues to see mon pulled after the surprise departure of bill gross. 98% of drivers say they know about the dangers of texting and driving, but try quarters of them admit to doing it anyway. findings released as part of at&t's antitexting and driving.

>> use the dictation, and, in fact, you can use it where you talk into your radio, and it comes out. >> can i make a quick observation? >> yeah. >> doing that and talking on the phone while you're driving is supposed by the equivalent of driving drunk, they say. >> should you talk to people in the car if you have other people in the car? is there a line anywhere? >> you talk to other people in the car is different than talking even on the headset on the phone. it does something cogtively different. >> i believe that. >> you have to change the crazy words the phone comes up with, like, what? some of the easiest words, and that's what you come up with? find out how stocks perform following midterm elections. chu has the number, and it looks like things are strong, and that's okay, dom, whatever happens, that's good when stock

prices go up. can we expect that? >> we can. here's why. the distractions for investors for cell phones and cars are whatnot are slowing economies, geopolitical risks and whatnot, but certainty of elections every four years, we know they happen. s&p 500 all the way back to 1946, sam stovall said he crunched all the numbers, went to every single midterm election going back to 1946, there was 17 them, and on average, the s&p 5 00 goes up by an average of 17.5% in the months between october and november. if you bought in object on the s&p for the years, you would be up. here's the interesting part, not once has the market been negative in the 12 month span between october and october. it's batting a 1,000. 100% of the time you make money in the s&p all the way back to 1946. that's why investers are bullish

regardless whether republicans won or democrats won. that's why they say sometimes the best strategy is to just buy the s&p 500 around midterms and hold for a year. you're always going to make money. you have in the past, and, remember, joe, past performance no indicator of future performance, but, still, the bulls say history's on their side for 70 years. back to you. >> yep, all right. thank you. this still me? that's becky. >> yep. crude prices sink to the three year low, and gold at a four year low, and stocks at record highs. time for the trading block. joining us on oil, matt smith, commodity analyst, we have frank holmes, and on the markets, we have jim, director and cnbc cricketer, and, gentlemen, start off talking a little bit about oil. that's what i want to go to first. matt, where do you think the bleeding stops? >> oh, my gosh, yeah, we're

going to have a few more weeks, really, of up certainty. we got three weeks one day to go to the opec meeting, and that shows weaknd we're seeing considering we had two days of the crude market getting clobbered, and we really can't manage to crawl into positive territory yet today, and so we are really going to continue to be volatile ahead of this opec meeting, but probably airing to the downside somewhat begin all messages we got from the cartel members are bearish. >> what if we break below 75, then what? >> well, i think we'll probably gravitate around the area. i don't think we'll move below 70. i think that's just going to be too much buying interest. there's so much talk around at the moment about the break evens for shale. you know, the secretary general of opec said that 50% comes offline if prices stay at 85. the irea is saying that number s lower than that, but consensus

seems to be we would see the impact if prices are sustained in the $70 area, and that puts a flaw in the market. >> go ahead. >> just looking at it in a falling knife, not -- not below 9 o, won't go below 80, won't go below 75. >> he said 70, though. >> i heard 70, gave himself breathing room. the matt, there's no way that that is no way this is the enof some megasuper cycle. you know for a long time, oil was where everybody was trying to make money because they couldn't make it. it was financial. it was not necessary global supply and demand, but financial types in there. what is the true value of a barrel of oil? do we -- we were convince ed it was hundred eight or nine months ago. absolutely convinced that was the value. any way the value is $60? >> by all means is, it could

well be higher than that, joe. what we had -- >> higher than what? >> higher than 60. >> any way it could be lower than 77? >> the thing was, joe, back six months ago, $100 was defended by opec. you know, you have venezuela, iran, saudi, russia, all the countries that need the high oil price, and even in the last three weeks, sau drdi we're not defending prices, but market share instead. >> that's what i mean. defending a price is different than what something is worth? maybe we'll never get to the actual, you know -- with everything else being equal, the supply/demand, what the thing is worth. >> we still need a million barrels a day. next year, the year after that, the year after that, higher each year to keep up with demand, and so, we're going to see production come offline because

of the lower prices. >> i know, we keep hearing that at 85 and 90, so i'm wondering. >> hold in there, joe, have the faith. >> i don't want it to go up, but down to 30. >> joe, what do you think of the domestic outlook? >> it's great. >> that really goes to the point. what is the value? what is, though, my question would be, i mean, the impacts of all the increase in production here, this congress may very well look to certainly engage in policies on say, gas imports, but what about oil exports, lift the ban on that, what's that do to pricing? >> what happens with a tail wind rather than a mild head wind which we have with obama? we're all in on public lands, keystone, what happens? >> unfortunately, though, it costs more to get a barrel of oil out of the ground here, between $6 and $65. so there is a point wells are

shut in. >> you say that, but -- >> part of the problem now in the tight formations, you have trapped crude because you don't have the transportation ability to get it out to the population, and the congress may very well look at the possibility of lifting the ban on oil exports. refind r refineries here may have a problem with that, but lifts the problem fdomestic producers. >> crude is at 400,000 barrels a day shipped up to canada on special waivers, but we see 4 million a day leaving the u.s. in terms of products, and so we are likely to see more being exported. this sort of lightly refined oil that the well has, that then turns it from a crude product you can't export to an actual product that you can export.

we are exporting 4.5 million barrels a day now. >> talk gold quickly, what happens? is the hay day for gold over? >> well, i don't think it's over for a couple reasons, and two is right now what's driving gold down now is the strong dollar. that's the fear trade. any time you had a strong dollar, gold comes off. the other key component, the love trade, is the gdp growth. the real growth takes place in china, india, southeast asia, and the middle east. that is then slowing down, has the impact, and we go back to the peak at 1100 -- sorry, in 2011, gold hit 1900, you had both factors, strong global gdp growth, real growth, and you had the fear of the u.s. dollar being downgraded, and you had gold all the sudden spike to $19 00. >> but -- is that -- is that a scenario you see replaying? that's the aftermath of 2008 and

2009. is gold more likely to wind up in this trading range somewhere between -- >> or lower. >> a thousand and 1200 or do you see it ever getting back? >> yeah, what's important to realize is gold goes up or down 17% with a notary publnevent. there was a big rally in june when the u.s. dollar was weakened and negative real interest rates. now you have positive real interest rates again on the 10-year government, the five year still slightly negative, and that impacts the price of gold. it is an incredible arbitrage trade between governments here. >> bet it never hits 800 or not? >> i don't know. i don't bet that way. you know, i -- >> you've been staying long. you've. staying long. we've been busting on you for a year now staying long. we've been, you know, giving you grief about staying long, going lower and lower. >> yeah, but it has also a

spectacular rally, joe, and i advocate a balanced fog tor and motion money in the stokt, but in 2007, gold was not a thousand dollars and paid 35 times for gold mining companies. today they pay five. emotional sentiment is so bearish on gold stocks. i think that's where there's incredible values on companies like nevada, a royalty company with 70% gross margins, there's a yield higher than a five-year government. i think stocks like that are important in portfolios. >> jim, stocks quickly. the futures are indicated higher after the midterm elections shows gain for republicans. what do stocks want to see over the next two years? >> more of a pro-growth policy here. i think that dom said stocks are up after the midterm elections. people run to the dollar, sell

g gold, buying stocks. they tell us today that's a good sign. this is in the shadow of unemployment numbers friday. if they are a disaster, all bets are off. we're talking about possibly the fed coming back. i don't think that's going to happen, by the way, and the dollar trade swings and got is higher. we're not giving credit, and someone else said the dollar trade was the fear trade. no dollar trade is delivered by policy because things are better heen, and if the ecb goes dovish. this, this morning, is more fuel to push a trade going in that direction, but this is good for stocks. >> all right, gentlemen, thank you, all. >> thank you. still to come, oil and -- we just talked about this -- oil and natural gas from shale bases are a a boom for u.s. energy and falling prices. jobs in jeopardy? an in-depth look at that at the top of the hour. next, check out these faces, the world's most well-known leaders. how would you rank them by influence?

who is the most powerful? we'll give you forbes magazine's top four after the break. location. location. (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. dad,thank you mom for said this oftprotecting my future.you. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote

and see why 92% of our members plan to stay for life.

alriwe need to do somethinguble widifferent. ranch. callahan's? ehh, i mean get away, like, away away. road trip? double wings, extra ranch. feels good to mix it up. the all-new, fuel-efficient volkswagen golf tdi clean diesel. up to 594 miles of adventure in every tank.

before the break, we showed you six of the most powerful people in the world, the pope, putin, president obama, mark zuckerberg, and four of the people made the cut according to fobs ranking. here with the list the executive editor of forbes, let's start with the top four in order. >> number one is vladimir putin, the president of russia. number two is barak obama. number three is ping, and number four is pope frap sis. that order is unchanged from last year. this list is compiled by we have a panel of seven forbes editors including forbes china, forbes russia, here in the u.s., vote on four elements. it's complicated, but that's the ranking. >> so i could -- if i could vote, and i think -- you couldn't have waited to the election for obama? >> you know, the results --

>> if i could vote, i put jrg i jinping at number one, and putin is one because he's crazy doing crazy things now so we're aware -- >> lost ta lot of power. >> i suppose -- if he decides to go completely crazying you would think he's the most powerful person. >> i have to say the chinese political system is such he's not going to go completely crazy while the russia's political system is such that he has, in fact, done that. one of the things that we asked the editors to look at in addition to financial resources and things like that is scope of action. the fact of the matter is we look at putin world until 2024, and he's pretty much proven. you know, last year, we got a lot of heat for putting putin in

his place. i had to defend him in a couple -- >> why the president? he's not powerful in his party anymore, seriously. >> europe is still -- world's largest economy. >> can't get his party to stick with him. >> amazing the president of the united states is number two. >> that is shocking. let me ask you, two people off the list were yellen and zuckerberg. >> just number six -- >> politics trump business? >> if you look, there's 72 people on the list. one for every hundred million people on the planet. it's a small world. there's actually a lot more business people on the list because forbes, you expect only ak sieve business guys, gates in the top ten. >> what's the highest a fed chief has been? >> i think they've never cracked the top five. yellen's six. the ecb draghi was ahead.

>> dunlack is on. >> isn't that interesting? 69, he's at the bottom, a future about him in the magazine. he's the new -- and we're just watching -- i saw the pimco outflows, and he's undoubtedly the most powerful man in the bond market. >> you took the google guys -- apple, the biggest company. >> we are looking at what we call an innovator entrepreneur premium. jeff cook is a hired hand. >> hired hand? >> yeah. >> bieber? >> 74 out of 72. >> beieber is? >> 74 out of 72. >> there's no pop stars. [ laughter ] >> joe? >> who? >> bono? >> no. >> thank you very much.

>> i know it's fono, i know, i know. i'm speaking to myself. that's what's it's come to. talking to myself. more from eric cantor including live from the private sector, and don't forget about jobs in america. the adp employment report coming up at 8:15 eastern time. as we head to break, here's a look at the senate, how it lookings a day after the midterms, more races yet to be decided." "sidewalk box" will be right back. in this accident... because there was no accident.

volvo's most advanced accident avoidance systems ever. the future of safety, from the company that has always brought you the future of safety. give the gift of volvo this season and we'll give you your first month's payment on us. 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*? it's in this spirit that ingu u.s. is becoming a new kind of company. ing u.s. is now voya.

changing the way you think of retirement.

welcome back, everybody, turning to our guest host this morning, the former majority leader, eric cantor, and we've talked off camera a lot what to expect. some say gridlock, others say compromise, but we spent time talking about the worst case scenario. what is the worst case scenario? >> well, the worst case scenario is if the president goes ahead and signs the executive order on the immigration move he's been talking about. that will light a fuse, i'd think, and will really ag strait on capitol hill. republicans said, did you to the hear the election? we have to work together. not unilaterally act. i think if the republicans, and i know my former colleagues in leadership and most of the members of congressment to complete the spending bills this year, but there may be a small

group, a minority to thwart that saying we don't want to complete anything, just kick the can in the next congress so we don't negotiate with reid one last time. if that happens, i think equally there could be trouble signs about what to expect in 2015. >> this is a vote that has to be decided before december 11th, just in terms of government funding the next time around. you're right, i see people saying forget about it, deal with it in january. >> again, you got unfinished business from congress, and typically, you come to the election time, that's what happens. continuing resolutions have passed. temporary spending bill, and then it expires on december 11 th. the question will be, can congress complete this year's business? there's a lot to do in 2015, plus things i think people want to see happen in terms of progrowth policy. are we going to see some

movement on energy, on trade? are we going to see some movement that get the economy going again? if we can't finish the business this year, i think you're going to have a lot in the wincluding progress people want to see. coming up, lower oil and gas prices good for the wallet, but disastrous on jobs in america? speaking of jobs, the impact of jobs and oil at the same time. back in a moment. (receptionist) gunderman group.

gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics. ye- yes! we have the new iphone. cause everyone's coming in for the new iphone. wh-what... kind of service plan can you get? well right now if you select the 15 gig plan we'll double your data and make it 30 gigs for the same price. well that - great! you'll take it. are you inside my mind right now? nope where was i... albuquerque who was the porcupine what is my fave- hollandaise sauce no way... the new iphone is here. and now you get 30 gigs of data to share starting at $160 dollars a month.

an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov

midterms and money, how markets react to republicans' victories. >> price of oil slides to three year lows, but how low does to go before it takes its toll? >> speaking of job growth, an early read on hiring in object with the adp private payroll report. third hour of "squawk box" comecome begins right now. welcome back to "squawk box" here on cnbc.

i'm andrew with joe and becky, and guest host is eric cantor, now, of course, vice chairman of the investment bank, and thrilled to have him the day after the midterm elections. >> let's get you a road map of what to expect. this is a big hour ahead on "squawk box" bringing you a run down of midterm election results and key senate races you might have miss. oil prices hitting the three year low, and that could mean problems for the energy sector. at 8:15 a.m. eastern time, adp payroll numbers expecting a gain of 220,000 private sector jobs for october. also, michael dell own why he was happy to leave wall street's influence behind taking the name sake company private. >> okay. let's get to the midterms. chief washington correspondent joining us now with a break down of the results from overnight. john? >> well, andrew, the short story is it was a great night for republican party, all across the country, and senate races and gubernatorial races, but the thing we were foes kused on was

the battle for the senate. where it stands now, you got republicans at 52 seats given what happened last night. democrats at 44. there are two outstanding -- if you believe in miracles as a democrat, get up to 46, but those are also where mark has been trailing significantly, and louisiana, very conservative states where mary faces a one-on-one runoff with the republican challenger compared to having it multiple conservatives dividing the vote yesterday. how do they do it? what were the pickups? arkansas, mark pryor down, colorado, a state obama carried, mark udall was defeated. iowa, another obama state in two presidential elections, joni beat bruce braley, montana, of course, that was exacted, and north carolina, a lot of hope

here, she could not hold on, and two others, you got south dakota, of course, a very red state. you got a brief flurry when you had larry running as an independent, and west virginia where shelly wins the seat from rockefeller, the retiring democrat. she wins that handedly. i say that because we were in college together and she dated one of my fraternity brothers. you have the house at 250 seats at this moment, the largest majority they've had since the 1920s. democrats are at 185. you still have some give in those projections because not all races are decided, but what you got is a strength in john boehner as the house speaker, microphone mcconnell with more votes than x.ed going in the election with a majority, giving both leaders more flexibility to push back on some of the renegade members of congress, although, the renegades will be

emboldened by the size of the victories. >> thank you for that. president obama holds a news conference today at 2:50 p.m., eastern time, we have full reactions of the elections, and we'll see which way he seems to go with all this. >> oil prices, one of the big business stories in the past six months in terms of the price of crude and energy renaissance in the country, but the crude prices plummet to the three year low, good news for consumers at the gas pamp, obviously, and concerns mount about when the sharp drop in prices impact the boom seen in america in the jobs in that sector. meantime, there's evidence this morning that a long standing federal ban on crude exports is a thing of the past with the lead story in the "wall street journal," set to be the first company to ship oil from the u.s., and without formal permission, actually, from washington. joins us now is the former

governor of pennsylvania. his state boasts close to 2 00,000 jobs have been created as a result of fracking and the industry's needed to support it, and, you know, our own becky quick is one -- you know, as far as -- i think we have her now able to export -- we have enough now, right? >> that's the agreement made with ukraine -- >> can't horde it. >> i don't know. charlie says you can. he wants to use every else's and be the only one left with it. >> governor, you're definitely -- there are people in the party who look at you and must say, what are you thinking, at times about your advocacy here, no? >> you should see my twitter feed. i get pounded from the left all the time. first, it's important to make the distinction between shale gas and shale oil. shale gas has multiple uses. just doesn't go in automobiles.

it is stock for the chemical industry and produces electricity. i don't think there's a problem with continued shale gas exploration. there's just so many using for that that -- and ill we can start exporting shale gas as well, and certainly crude oil, the time has come to lift the ban, but i think we want to focus on more than the short run. i think prices will continue to flux wait, but as energy and populations grow, as more and more countries become developed, there's an increasing demand for energy of all sorts. i think this downward trend is a blip, and i think we've got to be dead set and determined to create energy independence here. that means continued use of shale oil, shale gas, as well as alternatives. we can be an energy exporter. we can make money off of that. we can do something about the balance of trade. we shouldn't let the temporary

blip, you know, discourage us. as more people come on board, as more nations develop the need for energy is going to increase. >> watch how i do this, ed, because, i mean, you're here. we might talk about other things besides energy after yesterday, i think, but starting it this way, so the house in the senate, this new senate, passes a keystone pipeline bill. what's obama do? >> well, what i would rem to the president is before they pass the bill, bring them in and say aisle sign the keystone pipeline if you pair it with the production tax credit for alternative and renewables. i think we need an all-in energy bill. we got to sit down, do this matu maturely, and keystone pipeline, i'm for it -- >> maturely? woah, that might be a problem.

i don't know. seriously? >> we have an opportunity for an all-in energy bill, guaranteeing american energy independence for five or six decades. >> okay. i want to broad p en is out wit eric cantor, and i don't know you know governor rendell. there was a time, i thought back then, republicans thought it ushers in 20 years, maybe 50 years of conservative dominance. when president obama was elected, finally, progressive era would be here, 25 years -- finally saw the light of how to help the people in the country. is there something about where we are in -- you mentioned twitter in this world, instantaneous world, is it a two year siegle all we'll ever have again? two years, say, what we were thinking legislating all the republicans, and in 20 14, that's what we said in 2008, then 2010, then 2012, and it seems like, you know, either these parties shoot themselves

in the foot, or, you know, our mentality is short term at this point. >> well, you're right. the incredible state of our communications makes it much more difficult than 40 or 50 years ago. no question about that. but the republicans have a real opportunity here. they now are in a position to govern. they are now in the a position to act maturely. that's important. if they do that, i think they have the opportunity to at least hold the congress for a long time to come. >> you think hillary clinton's a shoe-in in 2016, don't you? >> for the nomination, but if you run a candidate like a jeb bush, it's going to be a close election. >> why would you tell republicans that they have the right thing to do, not like saying, hey, you have to run

mccain, run romeny. how do we know -- i know what you want, why tell them the right thing to do? i don't believe you. >> i permly am from ted cruz. >> ha-ha! you're yanking my -- >> i will send him a check. all he has to do is ask me. >> governor, i say there's republicans who would say we're for elizabeth wairp. >> yeah, exactly. >> yeah, absolutely. i happied warren raise money, a good person, and there's a need for elizabeth warp in washington. if she were our nominee, you could say law professor, in the senate for less than ten years, that sounds vaguely familiar. >> well, governor, i don't know, i just think that, you know, some of the kinds of things that she's about when she talks about business the way she does and condemns those who are in the

investing world saying, hey, we don't need any of that. i don't think that's where the american people are. i think the center right and left of the country does not want this kind of divisiveness anymore, and i think partly that's what last night was about, how can we be in this together? >> yeah, there's something to that there, eric, but i think elizabeth warren raises issues that ought to be raised in the country. i think what happened in the wall street, you know, it was disgraceful. i don't think there's been people paying for it the way they should, and in equality, i heard you speak. you're troubled by income inequality too. there's a place where warren with a body of a hundred people, no question about that in my mind. i don't agree with what she

says, but there's a place for her. >> all right, governor rendell, eagles are doing great. >> thanks, guys. >> a look at jobs from adp. stick around. the conference call.

the ultimate arena for business. hour after hour of diving deep, touching base,

and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voiceedge mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions. i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business.

welcome back, everybody, watching the futures, indicated higher this morning, and the futures for doubt indicated by 84 points, s&p up by ten, and if you watch the note this morning, at least right now, the yield is sitting at 2.36%. we have private payroll data out, and steve leaseman has the numbers. >> ahead of expectations, 220,000, and in line with the estimate for the friday jobs with we were at 233,000, and the reason we are not adjusting these days because government employment is not declining. it's flat, slightly up, call it up, 5,000. if the adp is correct, then the bls number friday should be around this number. september reviced up 12,000 to 25,000, and good sector up 48,000, services strong at 181,000. let's look at the places where there have been job growth. small business serging ahead, 10

2, great month for medium size. look at the screen there, construction, that was a good number. up 28,000. manufacturing half of what it was, up 15, and transport utilities, and broad based business, but if you look by business size, which you see is up 122 on medium business, a good month for that particular size, 50 to 500 small business up 102,000, large, not carrying its weight, large greater than 500,000 workers, up 5,000. adp has been doing well. the three month average absolute difference. you can see if it's lower to the right, that means they are closer together, and it's been doing a good job, down into, like, a 20, 25,000 monthly absolute difference, so -- >> when did she take over? >> a year ago, had the spike there, but it look like it's improved a bit in terms of the

-- >> i agree that he has, you know, can concern himself with doing all of these things like this, and people away from the policymaking side of things with the stimulus designed, but spent a lot of time just crunching numbers and getting -- >> what i need to ask here, one thing -- >> one thing. >> am i going to shave my head? >> no, you know -- no, no, no, you know there's app election coming up. >> which just had it yesterday. >> no, i'm talking about 2016. >> you're already in the throat. >> i've started. you're done christmas shopping right? >> did you mark the time? >> no. there's a theme coming. what do they want in job growth in the economy? >> ask this guy. >> does hillary clinton have to be relegislated -- >> oh, my god. >> kill me. kill me, someone put a gun -- no. does she -- not really. will the democrats win the white house again if the economy

continues at 250 or 300? >> just an asterisk on the question, due at 300, 250, the numbers at the polls, and the notion of economic expansion not getting down to the middle class -- >> say it does. -- >> remarkable. >> we moved into higher growth. >> it's higher growth. >> it's the wage issue, right? this whole concept of why are people upset? real wages have not started to accelerate the way they ought to. there's been some evidence in the last coupling months that we've seen wage. >> a little bit. >> that could help spur consumer demands, that could bring about a more robust economy. yes, i think that if you get the middle class feeling more confident -- >> how does the republican party react to results at the polls when it comes to the minimum

wage? i note all of them were less than what the president asked for, all by a state level rather than federal level. >> states do it. >> the interesting piece is, right, the state ballot questions. you may see a lot of initiatives on the part of the democratic party saying, hey, we get to go put this on the ballot. now, you've seen republican senate candidates say it's a state issue. >> there's broproof to that. >> i agree. >> whether they hurt businesses or not, higher wages in the state -- >> it's different everywhere. never made sense to me. >> border states that you create complicated issues there. >> that's right. >> you have -- since gn cincinnati, across from kentucky, all those places, where you have issues. that's a region for federal, but maybe not enough of a reason to do it that way. >> i think states have been competitive with one another about attracting business and creating, you know, competition

for economic growth, and that's going to be the trend, and that ballot initiative, i suspect you'll see more of that. >> that issue you wanted to raise. >> yeah, you think i prefer -- >> prefer what? >> the election coming up -- >> you were darn close, you're darn close. it was 8 -- it was after the adp report in october. >> mentioned it earlier today saying there's an election coming up 37. >> i didn't know what you requester talking about. >> i want to be first, though. >> talk about the new senate dynamic of the republicans. there's been several prominent senators critical of the federal reserve that obama has two new appointe appointees, nominations, put you on the fed, and they wanted to strip the fed, and rand paul me mentes a bill to audit the fed. is it an issue? if it is, does president obama

veto the bill? >> i think it's a good question and broader from the judicial and executive appointments' calend calendar, reid may kick in full gear now to dispense as much as he can before he exits in december. i do think that there is some ability now for a republican senate to start to influence not just monitory policy but regulatory policy. >> how much influence do they have over the fed, though? >> well, that's what i'm getting ready to say that the fed is one thing, but the regulatory -- i think that's where you may begin to see some agencies react to the new senate prominence as far as republicans are concerned, as far as approving additional appointments and the rest. there's a lot of folks upset about the loose money policy. you know, if we can see, you know, continued course that

we're on in about, you know, getting rid of qe and trying to go in and being more con receivertive on mop tear policy, i don't know how that's going to play out. >> when you say "regulatory" do you expect some efforts to roll back or ease restrictions right now? >> well, i would hope so, honestly, and i think there's many house bills that passed over the past year that ened up in the cul-de-sac in the senate. a lot of dodd frank tweaks, if you will, have to do with distinctions between end users and the use of the financial instruments, but it said to smaller businesses, why saddle the smaller banks and the smaller financial interests with these huge burdens dodd frank places on them. the interesting piece is what about cfpb? right? >> with consumer financial protection board, inside the fed, bitterly opposed by the

republicans. >> republicans didn't want to fund it. >> interesting question inside the fed. there's no oversight right now as far as congress is concerned, and what will the senate do? what does the house do to pull that in under some accountability? taxpayers want to see that as well. >> elements of dodd frank in ways -- >> what do you mean? what needs rewritten? it's a tough thing to rewrite it legislatively. >> for example, the whole question about metlife and whether insurance companies -- >> that's a bill the senate already approved, the house, i bet in lame duck, the issue will be addressed on the question about metlife, and that is something -- >> systemically important -- >> abbreviations. sifi is the foreign investment in the u.s. >> okay. steve, thank you. >> my pleasure. >> mr. cantor sticks around.

>> when we come back, sticker shock, sour grapes about a wipe bill in the atlantic city restaurant. the battle for pc dominance, michael dell joins us on the first year since going private and happy to be done with wall street's influence. stick around. we'll be right back. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪

you can bring back from a trip around the world. but you can't always bring back customer data. because many customers don't like it when their data moves around. can i go now? if you're going to do business globally, you need a cloud that can keep your data where it needs to be. today, there's a new way to work and it's made with ibm. today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today.

>> case of severe sticker shock. wow, that was close. in atlantic -- that was very close. sticker shock. it was almost sh -- yeah. okay, pieces. a dinner at bobby flay's steak hotel and casino asked the waitress for a wine recommendation. the customer says the waitress suggested a bottle for $37.50. >> andrew knows what they means. >> when the bill approved, the price, meant 3750. the restaurant gave him a discount negotiating the battle down to 00. how was the wine? he said it was not great, it was not terrible. it was fine. that could happen. >> 3750. >> you know what?

i don't know whether they sell wine at a restaurant for 37.oo honestly. >> a half bottle. >> not a full bottle. do you assume it means 3,750? depends on where you were and who you are. i would have. i would have just had a cup from yesterday. >> coming up, what the election means for your money. the s&p in the 12 months of the year following a midterm is on average up 15%, should investors continue to speak with republicans in charge of congress? we'll debate that when we come back.

welcome back to "squawk box," everyone, stocks on this move this morning, time warner beating top and bottom lines. it's a strong growth and revenue for the hbo and turner

broadcasting units. beating estimates, revenue fell short, but the snap maker raises earnings guidance for the full year, stock up 6% this morning, a little above that. new skins earnings and revenue better than expected, but the current quarter forecast below estimate, and that stock is down 2 1% in the frpremarket. >> a former bank ceo says he led a double life as a cia agent. >> crazy story. >> in an interu view, ed hale found himself in the hunt for bin laden, a former chief of first mariner bank suggests the day job of a perfect cover for the cia. he was all over the world. whether in vessels and trucks. >> why do they say that? it was the perfect. you now have people sus pecking every banker out there is a cia double operative. >> working with joe nacho.

wasn't he for a while? >> no. they were -- no, he was working with the government because of the lines they were using. >> this guy too? >> i don't know. >> again, why do you say something like that? >> not suggesting he was a spy. >> you put every banker out there at risk. they look like they a are an operative. >> that picture. he has the cool secret agent look going. >> desperate for attention. >> looks like michael keane or something, doesn't he? >> anybody wearing a turtle network, the good air. >> that is a dead give away. i believe the guy. >> on a baltimore tv channel? >> what's wrong with that? >> first of all, people who do this keep it silent for the reason for the safety of the other people out there doing it, and seg of all, you have operatives all over the place looking and calling americans -- >> very emotional response. passionate. >> someone could get killed,

somebody not in that position because of saying something like this. >> according to the producer, he has a book coming out. >> oh, that makes much more sense. >> explaning it. >> do you remember secret agent? >> i do. >> people put their life on their line and it's a selfless thankless task. >> how do you feel about mark seal, the fellow who wrote the book about the bin laden -- >> at least that was not an undercover position you're coming out to talk about. >> how do you feel about it? >> look, i think there's a lot of interest in the -- >> you just the leader of the house? was that all you were? you sure? was that a cover? this new role, going around the world -- >> with vessels and trucks. >> yeah. watch yourself. >> sweeping win for the republicans in the midterm elections, but how do the markets react? joining us now, chuck gabriel, good morning to you.

this morning, we brought a lot of statistics this morning, chuck, about what happens post election midterms to the market. we have suggested that the math demonstrates the market goes up, in some cases materially. do you buy that? >> yeah, andrew, if nothing else, negative ads cease. you know, we are headed into -- by definition, heading into the third and fourth year of what we call the presidential monetary cycle. it's the best two years of the four year of any presidency anyway. there's truth to it, for sure. >> when you say some truth, that's the question about these numbers and how they relate to election cycles, how much do you put on that versus if you actually were to spend time looking at the different periods that these numbers are calcul e calculated from, and what's going on in the economy at large? >> i think that's much more important. i agree. the fact that we had such an unexpected and very sharp recovery rally in october, means

that we're -- we're going to be somewhat testing the envelope here near term. if nothing else, look back, this market rally sense 2009, is a wall of worry from another. we just removed a wall of worry, and the ebola strains are fading, and it's interesting to see what feeds the market. >> amazing the ebola stuff is straight off the front page until it comes back, if it does at all. >> being in the business, when does the 2016 election season start? i started already, chuck. am i jumping the gun? i said at 8:16, we have an election coming up, therefore this. have you used the terms yet, "we have an election coming up, so -- "whether do you do that? >> it's not too early to start. >> i agree. >> we're already basically, you know, giving grades to christie with recruiting gubernatorial

candidates. >> how it affects hillary, going to arkansas, not attracting candidates, it's in the prism of the election. >> i think hillary clinton ben fi fits here because of the wipeout for the democratsment i think she has range of movement rather than being pressed by progressives in the party, the bash banks and student loans, i think she'll have a little bit more flexibility to move to the center. that should be helpful to her. >> interesting point. we're talking about it. >> ask the question about whether it's too soon. we're taking it as a serious question now. >> real quick, though, chuck, in terms of your sense what happens next that the congress and how that achgts what happens in the market, is there anything on the table that takes place? >> i think the cast of usual suspects held out in all shows this morning, trade, taxes, immigration reform, taxes is

interesting because you have a nice alliance merged between senator hatch and wyden, and congressman cantor, former friend, paul ryan takes over the house ways and means committee to add star power there, and you could move a bill with a 51 votes, and the president has to back off demands of territoriality and pushing any savings back into a stimulus bill, and republicans have to reduce the scope. >> chuck, thank you so much this morning. >> cheers. >> we'll talk about 2016 with you -- well, we already did. >> say we're going to because it's embarrassing, but we are, and we are going to. coming up, taking the name sake company private, michael dell was happy to leave wall street behind. he will join all the clowns in cable business tv to talk about his dpaen's plan. the take on hp. was that the word? clowns? on ibm.

>> circus clowns that we are. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪

welcome back, orbital science holding a conference call as we speak on the explosion of the rocket last month that was to bring supplies to the international space station. the company says ef suggests one of the refurbished engines was theexplosion.

>> the dell convention in full swing taking over in downtown austin. as a private company for a year now, dell is set to be on the attack taking on hewlett-packard and ibm. we have the chairman and ceo of dell, michael, great to see you this morning. >> great to be with you again. >> so i know it's been a year that you've been able as a privately held company, away from the publicly held, away from the trappings of wall street, how does it feel? >> it feels great, you know, we are demonstrating here the broadest range of solutions we've ever been able to create, pouring tremendous amounts of innovation in the course over the past year, just in the last quarter. our unit shipments here in the united states grew 19.7% compared to industry growth of 4.3%. that industry growth includes dell. take dell out of it, the rest of

the industry grew .2% to the 19 preponderate 7. we are growing across all businesses, across all geographies, energized with new customers, partners, the turmoil out there in the industry with the other firms creates great opportunity for us. >> talk about some of the turmoil. i assume you're referring to ibm and hp, the issues they had to deal with. how does that create opportunities for you? >> we've seen a tremendous influx of new partners, channel partners. the channel now represents 40% of the business, a fast growing part of the revenue stream, and as, you know, these companies are splitting off and splitting up, and dividing themselves every which way, this is worrying and troublesome to the customers, and that creates

chaos and confuse, and that, for us, is opportunity. we created a dell very broad set of end-to-end solutions, and we believe fundamentally you need both ends of the solution to be able to create those solutions, so we're excited about our positioning and, you know, thrilled with the progress over the course of the first year as a private company. >> what does it mean to not have public investers, to not have conference calls, not deal with the stock price trading on a day by day basis? >> becky, it really means that we have the freedom and the flex the to focus 100% on the success of the customers and partners, and that is really a liberating feeling. we feel unleashed, energized, all about the customers. >> michael, i -- i want you to ask -- you want me to ask? i asked you to ask him. >> okay. >> michael, things are going so

well, i mean -- >> you do it. >> what about all the people, oh, wow, this is rough, worth this month, and now you're kicking ass, what do you say to them? suckers? sold for the price you bought it, you got a good deal or -- >> you know, i think as you all well documented and many others did as well, there was an extensive process that our independent board of directors went through to find the highest price possible for public shareholders. that's well documented. that's well documented. >> it's clear, yeah. >> i think there's also a plague of short term thinking that exists in our country. in many sectors. in education. in finance. in politics. i'm sure there's other guests who can speak more eloquently about those other topics. you know, we firmly believe in

the long term future of the business. it requires investment. we're making the investment. we're seeing results. i'm quite proud of the progress we've made as a private company. being able to innovate without a 90-day shot clock we had for 25 years as a public company. >> michael, is there a way to such the dynamics in the market in a way that you could have dope what you're doing now with public investors, or do you think that's just impossible? >> i think we could have done many things as public companies. we were certainly doing many things. it was slower. certainly, you know, you all document and have many guests that come on and talk about how certain companies should, you know, have a share of buybacks or dividends or combined with this company or submplit off th

company. these actions are not necessarily motivated by the long term interest of the health of the business. and as a founder of a company, as, really, a long term steward of a business, i think about the outcomes over a lifetime. and so just a different perspecti perspective. >> go ahead. you're afraid to ask now. >> what? >> go ahead. >> here's what they've been talking about. there were times you called them circus -- >> which of the competing business networks were you referring to when you called them circus clowns? >> you know i'm not talking about you, joe. >> i resemble that remark. i'm going to assume you're talking -- >> i'm talking about -- i'm talking about some of your occasional guests who will remain unnamed.

>> oh, okay, i see. all right. i lake that answer. >> you guys know who i'm talking about. i'm not talking about you. i'm not talking about you. >> no, i know exactly who you are talking about. >> whisper it to me. >> i'm not going to whisper it. i know who you are talking about. >> joe, great to see you. >> all that's missing is the red nose. >> what's the last thing you said, michael? the only thing missing? >> is the red nose. >> okay. >> oh, boy. >> i know who he's talking about. >> mr. tough journalist, i had to do it all. you did it. see, i have to keep my job, but not actually -- >> i like the answer. >> now that he says it, i know who he is talking about. >> let's go to break, you tell me, and coming up, the sweeping election win, what it means for the markets, and first cbnc interview with alex gorsky at 2:30 p.m. on "street signs". that's great. we'll be right back. hey matt, what's up?

i'm just looking over the company bills. is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business. a tax on sugary drink approved in berkeley, california, vote with about 75% of residents saying yes. the city becomes the first in the nation to approve such a levee on soda drinks.

a similar measure fell short in san francisco. >> everything in moderation. >> there was a gmo ballot question in colorado and oregon that were defeated. that was a huge win for the food industry. >> that means people -- a lot of times the public is a lot smarter than the elites that are telling them how to think. >> alaska approved pot. third state now. >> and you can also -- >> not a lot to do up there. >> one of the other ballot questions was a reduction in penalties and sentencing. rand paul has been big on. obama as well. all these sort of state ballot questions may play out. >> i love alaska. it's beautiful. you can hike, hunt, fish. >> six months out of the year. >> let's get down to the new york stock exchange. jim cramer joins us now.

jim, as long as you've been doing this, you've been through i don't know how many elections. even if you talk the ones every two years. any words of wisdom that work all the time for investors right now? >> high water mark for taxes, high water mark for the government intrusion into business. we have now seen it. monday was the high water mark. we had a new world. >> wow. so i always ask that question, jim. can government do -- can it be active in its assistance to the private sector, or a lot of times all it has to do is just be passive and just not be part of the problem. are there active things we can do? >> no, we just want them nowhere near. that makes us more confident. we pick up the paper, find they're not in our faces. corporate taxes, great. but small business people don't care about corporate taxes. small business people generate the jobs. small business people could go a day without worrying about

something coming from washington. i think they'd do some hiring. i think banks would be willing to do some lending. this is the beginning. it's the beginning of a sense that maybe the government is not against you every single minute while you're trying to build a business. >> someone i saw, it was a mckenzie study that said redefining capitalism. i thought, oh, lord, let me read this. i thought it was going to be one of these ways of changing capitalism. i didn't know what it was going to be. what it said is don't explain it as a way to build wealth and shareholder value. explain it as the most effective way that society solves problems. if you look at the way the private sector and entrepreneurs and people, they address issues. they address health issues. they address problems here. they address getting from one place. they address all these things, and it ends up benefitting not from wealth accumulation but from solving the problems of society an making life better. i think that capitalists need to start e planing it that way. >> i think that's right. look, let's just go a little off

topic because i'm not -- this was not a social issue, i think, for me. it was interesting to see that tim cook revered rfk and mlk. you know what? there's the logical extension of the people who a lot of us idolize is now a ceo. i don't hear a lot about rfk and mlk last night. i do hear the ceos being more responsible than the politicians. maybe the ceos can have a bigger role now that they're not going to be -- i think they'll be less afraid of washington. a lot more friends down there now. >> all right, jim. see you in a couple minutes. >> when we return, more from eric kantcan karan -- cantor. ♪ there's confidence...

then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪ there was no question she reminds you every day. 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. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.

beware, techies. google glass may be causing a little more harm than meets the eye. an eye doctor conducted a study on three people, so not exactly the biggest study, but he compared a range of vision between regular eyeglasses and google's wearables. the doctor found that the tech

giant's device may actually cause a blind spot on the right side. >> last night when new hampshire first opened and it said 60/40, it was 3-2. i think. and it was there for a while. it was like, wow. then it said 3-2. i really think it meant 3-2. i think, i think. >> i hear we have a doctor conducting a study with three people. >> that matters. two out of three. all right. let's get back to our guest host, eric cantor. we have about 60 seconds or so. you have a positive outlook for the future for this country? >> you know, being here in the private sector now, you know, and talking to so many of our clients, i do think that there is frustration about the pent-up demand for growth. with the election last night, i do sense that we're going to see continued growth in the m&a markets. this is where they've been so focused and giving clients the

advice on their strategic decision making. you know, i think there's just a lot of confidence going on with sellers. given what we've heard from some of the guests today about prices, stock prices, yeah, i do think we're going to continue to see growth. so let's see if washington can step up and join that. >> thanks for coming here today. great to have you. >> that does it for us today. right now it's time for "squawk on the street." ♪ good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange at the market prepares to trade on the outcome of the election. the gop taking the senate, expanding its majority in the house to some historic levels. futures are higher. the dollar is higher. the nikkei is up about 10% in four days. the ten-year yield meantime back to 235. it's the highest in about a month. then crude oil, some