mal wear is said to be targeting iphones and ipads. it's thursday, november 6th, 20 is 14. "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. if you missed it last night, it was a big one for country music and for miranda lambert. she took home for trophies from the cmas in nashville, including album of the year. luke brian took title of entertainer of the career. but the awards were not without some controversy. we'll have that party of the story a little later this morning. >> the bulls off and start running after this week's midterm elections. the s&p and the dow both closing at record highs. get this, the utilities and the transports closing at new highs,

all closing at a record high on the same day for the first time in about 16 years. the big winners were energy and utility stocks. the nasdaq isn't taking part in the party at this point. if he check out the futures this morning, right now you see there are some red arrows. these are modest declines at this point. the dow futures down by 1.5 points, dow down by 9.5 points and the nasdaq down by 3.5 points. policymakers in europe are expected to stick with current plans keeps rates at record loys. but there is growing disagreement between ecb members and mario draghi. here at home, two big economic reports to watch this morning. both of them set to be released at 8:30 eastern time. we have weekly jobless claims seen at dipping at 285,000. we'll be getting a first read on third quarter productivity and,

andrew, i'll send it over to you. >> let's talk about some corporate news this morning. tesla posted better than expected third quarter results. those results driven by record deliveries, but they carmaker is lowering its current quarter guidance. here is what's happening. they're blaming fewer than planned model s deliveries to the hardware changes to the vehicle and ceo elon musk now saying the production of the new model x crossover, the next generation sort of -- it's a cross over will be delayed again by several months. they are noting the company wants to get in his word, get the details right. they're sold out on that vehicle, so that's not the issue, but it does raise questions about what's going to happen next. also, in other auto news, takata skipping its dividend for the first time. the company's potentially defective air bags have been linked to four deaths in the united states and as part of a control of 17 million cars

worldwide. the air bags are being used by many consumers here. takata apologized to customers affected by the really. >> i don't know where to buy a tesla. i drive around, see all the dealdeal dealer shipss. they're all there and i can't find a tesla showroom anywhere. if i can't find a showroom, i don't know how i'd buy one or look at a car. >> but otherwise, you'd be in there buying one? >> do you order it online? >> you go to the showroom and order it. >> oh, you go to the showroom, but you don't have the dealerships that i need? >> they're inside malls sometimes in different places. >> where is the dealer? >> the showroom is a -- >> where is the salesman that's going to courteously and -- >> they will do everything for

you except press -- >> i need a guy that -- >> the guy is going to courte s courteously deal with you? oh, yeah, you're a man. i forgot. >> i'm sure a i need a $400 undercoating, don't i? >> no. >> i need to talk to the manager to get a deal on that. let's take a look at the morning's other movers. higher defendant bugz revenue from licensing its television show. i did see that gentleman, but not at -- last night at micha michael's, the arts and crafts store. no, it was the restaurant. >> it was the 25th anniversary or 30th anniversary? >> so crowded that -- anyway, news corp. beating the street on the topic -- he was in there. is there some lazaar thing? anyway, top and bottom lines helped by better sales.

and financials profit falling short of estimates and that was blamed on lows tied to the insurers derivative's programs. qualcomm's earnings and revenue are going to miss wall street's mark. the chipmaker warning of more trouble in china, saying an anti-trust investigation and problems collecting royalties could harm its business there. qualcomm discussing some new regulatory probes in the united states and europe. >> there was a move in -- big trouble in little china, was that the -- >> you're looking at the wrong guy for that. whole foods -- >> what movie? when? >> curt russell? >> how many years ago? >> not that long ago. >> before i was born? >> you should know about it. >> whole food shares getting a big boost. grocery store topping analyst consensus. we were at a thing where this was this comedian known to people not in your generation. i'm not going to tell you his name. >> who? >> jerry seinfeld. you never saw any seinfeld?

>> every thursday night at 8:00 p.m. nbc, eastern time. >> he has not -- >> actually, i went and saw him live. he is unbelievable. >> he's so smart. he's got every -- everything that -- he's amazing and he can talk about a chair for 15 minutes. >> so can clint eastwood. >> yeah, so can clint eastwood. >> different chair? >> yeah. >> let's check on the markets this morning. we showed you the futures. they're a little bit undervalue this morning, under fair value. you can see right now, those dow futures look like they're moving back at this point. dow futures down by 3.5 points. s&p futures down by less than a point. this is coming after both of those indexes and the dow transports all closed at record levels. they did it on the same day for the first time in 16 years. unusual to see all of them moving together. it was the nasdaq that was out of sorts, but we'll see what happens as we get closer to the opening bell. if you take a look at some of the broader markets this

morning, let's start with oil prices. that's been a huge focus for the markets. you'll see right now oil prices are down, but only by about 13 cents after gaining ground yesterday. right now, trading wti at 78.54 a barrel. take a look at what's happening with the ten-year note. the yield is at 2.335%. if you're watching the dollar, it is down against both the yen and the euro. the euro is trading at 1.2519. the yen is trading at 114.62. if you've been checking out gold prices, gold prices are down slightly, 1,143.80. joe. >> we're going beyond the u.s. markets this morning. joining us now with his thoughts on the best places around the world to park your money, what a great time to talk to mark mobius, templeton emerging markets group executive chairman. very rarely, mark, do we try to talk you into the u.s. being the best house in the neighborhood. but are we wrong on that this

time? do you have to just go around the world because that's your job or can it be that the u.s. is the best place to put money right now? >> the u.s. could be the best place to put money right now. what we are finding is that we go into these emerging frontier markets in particular and the euro leaders of this world and the multi nationals that are listed locally are so expensive. but then, to give you an example, it's very, very cheap in the uk. so we buy unilever instead of unilever in nigeria or india. so, yes, there are plenty of opportunities in the u.s. to get the growth as well as the stability. so i wouldn't count it out. >> but you're still -- you have other penal at your firm that might do that. they still want you to go and

find other opportunities around the world. is that fair to say? >> oh, yeah, definitely. i was in china this last week and we were looking at companies there. there are many, many opportunities. it's just incredible. it's mind boggling to see what's happening in china. then the week before that, i was in dubai again. it's not just multi nationals. the other companies are doing very well. the local companies are now beginning to buy assets in america and all over developed countries. so you're getting this kind of synergy. the best example is tata motors for jaguar and land rover. they've got their own car in india. you have these types of things taking place. >> can you just comment, i don't know how much it matters, but just on the monetary. the central bank environment around the world, we've seen -- you know, we had a big move here on japan's move, we think europe

still needs more easing. wv exited qe over here. how does all that play into which parts of the world you decide to prioritize? >> overall, we see an incredible amount of liquidity sitting in banks around the world. you see in japan and the u.s. is and europe, in china in particular, so liquidity, there's no problems. the problem is for them to get out and actually lend because they're all running scared. so if you look at the big picture, i would say china has been the big printing press, bigger than the u.s. in the sensd of getting liquidity into the system. so you've got to watch china and what's happening to chinaing stocks. after that, you probably want to look at southeast asia because this liquidity that the japanese are creating will find its way some degree into china. but, you know, they're not that welcome in china. it will be more into thailand, malaysia, indonesia, those

countries and india, by the way, because the new leaders very much in favor of working with japan. so that is really what's happening and that's the reason why we have to emphasize those places where the liquidity is going to fall. >> i see a case that you make that if the u.s. economy is growing a little bit faster than previously, and it's on a firmer footing, and then you've got easing -- >> the accounts. >> yeah. and you've got easing and -- oh, you lost the sound? how about now, mark? that's it? we don't -- >> no. >> i've got one more -- >> why is this so difficult? >> i've got one more good one. i just wonder -- he makes a case. let's say that the u.s. is growing better and let's say that europe and japan are easing. it seems like emerging markets would benefit from both of those things. but i just think that emerging markets, you have to be ready to accept a little bit -- you know, the risk/reward, the rewards

might be higher, but i think you need to be ready. >> for things to move more rapidly? >> i think you need to be -- >> when lazry was on the other day, remember what he said, the risk free rate is this. if you're going to get 40 times a risk rerate, it's only 7% or whatever it is. if you're into stressed debt, you know pretty much what your downside, but you know you're accepting lower returns. but year after year, you're not going to have to come back from down 40% from year. so i mean, around the world, mark i think has -- he loves -- if the u.s. was going to be the best place, i think he would still be over. >> actually, i tweeted what you asked him and what his reply was. i never expected mark mobius of templeton emerging markets to say something like yes, the u.s. might be the best place. >> oh, we've got him. >> i think we do have him back. >> i answered all the questions for you, mark, since i know you so well. so don't make me look -- no, but

my question was if the u.s. is getting a little bit better in terms of a higher rate of growth and you've got easing in europe and japan, it seems like both of those things, all three of those things would be good for emerging market. >> yeah, definitely. there's no question. the health of the u.s. is great for emerging markets and, of course, many of these emerging markets have very strong financials. lots of foreign exchange rese e reserves, low debt to gdp levels. so those are the countries that we want to focus on. a lot of dead beats, as well, as you know. a lot of these countries are in trouble financially. but there's a substantial number. the big one in particular is doing quite well. but a healthy u.s. is going to be very good for emerging markets. >> but you're ready for -- you're -- you will accept more risk for higher rewards. there is more risk in emerging and frontier markets, is there not? >> there's no question. there's lots of risk in many, many directions, political,

economic and just plain volatility, if you define risk and volatility, you have lots of volatility. and, of course, that's where the reward is. because if you're strong enough to go in when things are bottomed out, you can do very well. which is why i think emerging markets have done so well over the years, because, you know, you've seen the volatility. >> and then last night i was thinking, if you knew over the next five years that by far the u.s. would be the best place, would you come back here and go state to state and, you know, be down in alabama or something and county by county or would you still be over in these exotic places finding, you know esoteric -- i think you would still be over there because that's what you do, isn't it? >> yeah, but i would be in the u.s. more probably. >> oh, all right. >> you have to look at all places. you can't just concentrate on one. if things are great in the u.s., we want to be there. but you still have to look at

these other countries growing at a pretty fast pace. >> i think you would hire someone over here and still be on china beach with leo dicaprio and -- anyway, mark, thanks so much. appreciate it. your time today, glad we got you back. we can put a machine on the moon but can't talk to mark mobius for eight minutes. >> we did. we got him back. >> everyone, watch your iphones because this next story is worrisome. a new worry for iphone, imac and mac users today. pal alto says it's discovered malware that can reportedly install third party applications on devices. the viruses can get transferred from infected maces on to iphones on to ipads through usb cables. most of the users were hit in china thus par.

first of all, it's not really here yet in the u.s. in a major way. but you can only get it if you connect your iphone to your computer, which i don't think joe has ever done in his life. >> you know i have. >> you plug in for your pictures. >> i've done it with an ipod, too. >> don't plug it in for now. >> you know what i do? i pull out the ipod without doing what i'm supposed to do with the keyboard and i always get -- i always get in trouble. you just pull out -- >> i suppose you have to eject first? >> yes. and i don't and it's like, oh, no. but nothing pas bad has ever -- it's like something bad needs to happen for me to listen because nothing bad has ever happened. >> you're eating a doughnut. >> i was. for ten minutes talked about how in the modern era, none of us can leave our house without a stiff rectangle in our pockets. >> you said this for about ten years now. >> right. but he made it funny. and he went on and on about how

when it's dying, you feel like you -- oh, i might be able to talk to you tomorrow. i don't know if i'm going to last much longer here. and then if you get mad at someone, you can't slam the phone down. you have to yell at them on your iphone and then you go -- like that. and just slide it over. that is how you hang up. he is unbelievable what he can talk about. >> with nothing. >> with nothing, yeah. >> he should do a show about nothing. >> that's a really good idea. >> are we going to talk about -- we're going to talk about tesla. did you watch the president yesterday? >> i did. in the afternoon. is that what you're referring to? he didn't talk about much, either, by the way. >> does he leave the white house much any more? do you think he gets out much? >> no, but -- >> the same reason why the newspapers -- >> the reason why the newspapers, do you think it's mostly salon, mother jones and maybe he glances at the "new york times"? is that -- >> you're saying because he wasn't willing to back down or

say that he -- >> no, i just realized that we have the nation and -- what was that from yesterday? did new republic. >> i just realized if we were hopeful, we signed on for eight years and we're going to do -- that's the time that there's going to be no early release. >> did you notice the polling on minimum wage? a lot of red states. >> andrew, that was my problem. that is what he learned from this election, keep pushing minimum wage? we think alooip like. it's unbelievable. >> there's always something out there that -- >> harwood talked about that yesterday. that's the one silver lining you get out of the whole election? >> we're going to continue this debate as we head to a break. when we come back, we'll be talking about tesla shares swinging wildly in the last couple of weeks. we're talking deliveries, production delays and whether now is the time to buy the stock.

plus, pasta fans won't like this story. why prices for the italian food staple are soaring. "squawk box" will be right back.

welcome back to "squawk box." the country music awards last night, there was an interesting moment in the open iing monolog. they said good-bye to taylor

swift who has gone pop. >> she crossed over. some of her songs still sound like country music songs. >> you think her new song? >> some of her songs. >> and -- >> it was just a joke. >> social media buzzing this morning about paisley because he apologized to viewers who tuned in to watch abc's new comedy series, blackish, to find the cma series instead, telling viewers to, quote, enjoy whitish. some critical tweets followed calling paisley and the cmas and the country music awards racist. there you have it. >> we talked about miranda yesterday, didn't we? >> yeah. she won four different trophies. >> she is great. >> luke brian, i liked a couple years ago. he's gotten -- he's gotten a little bit -- >> you don't like any of his new -- >> i don't like that one stupid it's my kind of night. it's really a dumb -- >> that's just one song. >> i like some of the others. >> he took home entertainer of

the year last night. >> i didn't see any of that, obviously. >> but tonight, a much bigger night than the cma awards. this is a -- we would call it economyish, businessish is what we're going to be doing. it's a big night for cnbc in honor of our 25th anniversary. we're celebrating the biggest names of our times and looking ahead to the leaders of tomorrow. and we are going to be as diverse as the entire world with what we do. looking forward and forth, the gala event will be hold tonight at jazz at lincoln center. among our headline guests, the ceo of mastercard, that stock has been hot. citigroup ceo sandy weill, we'll see whether he thinks we should grow or shrinking the banks at this appointment. we never know. starbucks chief howard schultz, who i don't even think is 60 years old yet and created starbucks. >> and then recreated it. >> to be that successful that young. and that is young.

60, the best decade of his life, just so you know. you've got that to look forward to, appeared rue. ariel investments with melody hobson. along with her husband, george loose yak. and nyse boss tom farley, who walked out of an audition for a hunk on a soap opera. have you seen this guy? >> i have. >> he's like 6'4", strong chin, smart. >> another annoying -- >> what is he, 36, 37? >> another annoying young overachiever. don't like andrew. >> there's more names coming. >> i was just reading. i was having a conversation with barely diller and martha stewart. >> jack welsh will be here. >> put me on the red carpet. i've been studying the career and life of joan, which is great. i don't think anyone remembers all the stuff she -- i'm not

sure i can say some of the stuff she said. >> joan rivers? >> yeah. >> i think you can't. >> i cannot? >> you should not. >> can i ask what people are wearing? >> andrew, who are you wearing? >> i'm afraid you're going to get a lot of -- are you going to get a lot of brooks brothers? >> you're going to say i'm wearing a tie. >> kevin plank is going to be there from under armour. >> yeah. >> do you know what i might wear? >> some good tom ford suits. >> you know what i might ware? >> i might wear some necru. it probably shouldn't tell anyone. i might wear some span xw to tuck my gut in. they make those t-shirts. >> for men. >> yeah. so if i look really tall and thin tonight and time talking like this -- >> kyle dressed up as spider-man. >> do you have those, the things that have muscles? >> my kids, we have that spider-man suit, everyone has the spider-man suit, the batman

suit. >> i'm wearing it now. >> i'll be looking tall and thin, as you are. i'm going to try. >> going to try and stand up straight tonight. andrew, we're looking forward to that at 6:00 p.m. if there's a web cast, too. >> there's a web cast. >> i think we're on in the 5:00 hour, too, with some hits from the red carpet. >> i thought that was a 6:00 hour. >> the web cast. but i think at 5:20, we'll be on. >> you'll be on the air for a little bit, then online for a little bit. it's all merging. >> will there be any dancing later? >> you can only hope. there is alcohol. >> there is dinner. >> there is a band, too. >> now, they know we get up at 3:30. until 10:00. >> let me call ari about this. >> i'm excited. we get to do this once every 25 years. >> i already made the call. that's the other thing. we have both signed on. >> we are. >> no, to do the red carpet 25 years from now. >> that's right.

we'll we back. >> we're going to be back to do this. don't do the math. >> i was just trying. >> singulairty is coming. i'll be fine. i might have some spare parts. >> we were talking about tesla. tesla shares jumping after earnings and the revenues did beat expectations. topping premarket trading. take a look. despite cutting guidance for the year and pushing back deliveries of the model xsuv to the third quarter of next year. joining us on the squawk line, theodore o'neal. the first analyst has a triple digit price target on tesla. theo, good morning to you. >> good morning to you. >> explain this to me. everybody thought x model wag coming in originally q1 of 2015. now it's pushed out and nobody seems to care. why? >> i don't know if you remember what the model s was like when it first came out in july 2012. but it could have been used to push back, too. the fit and finish on the

interior wasn't quite right. and they had to go back and redo the entire interior as they were trying to produce the product. if they have to push out the x a little bit longer to make sure that it's all right inside, i'm totally fine with that. not an issue at all. the customers are still there. it's not like the demand hasn't change. but they do need to make sure that it is all right on the inside. >> so but how does this change your model? i agree with you, the demand is still there. this thing is sold out. nonetheless, if they were able to get those cars to people in q1, they would be able to get more cars to people later than they can now. >> so it just pushes -- it makes it more of a hockey stick in terms of model x sales in next year. but overall, it doesn't really move the needle on the financial model because -- because we've got -- if several multibillion dollar markets to address. and this is just, you know, another billion dollar car. >> what's the price point of the x going to be?

>> it will be, really, the same as the model s. >> so we're still -- how far are we from actually -- that mass market view, what do we talk about? >> well, you want to look for the giga factory. they can't do the model until the gigga factory is up and running opinion. >> and when people talk about mass market in gen 3, how much is that? >> they've been targeting $30,000, $35,000. >> would you buy that car, joe? >> potentially. but the problem is, i don't think it fits three kids. >> that's always a problem. no, you want the model x for the three kids and all the gear. >> hey, theo, we asked an analyst this question yesterday. do you think that they should move towards having real deepershdeep e dealersh dealerships, franchise? >> no.

why buy wholesale when you can buy retail? >> i can questions. >> there is someone to tell me. >> these cars, they'll be selling these on amazon at some point. >> that's my problem. i go into best buy to find out what's going on. i need help. >> theo, what's your new price target? >> the same as before, $320. >> we'll keep our eye on that. when we come back, one lucky new yorker picks the winning mega millions ticket. but the winner doesn't get to keep it all. nearly 9% goes to new york state taxes. the winner can take the lump sum in cash getting about $120 million or payments of $7 million a year for 30 years. the total of $212 million. it's the smart choice. we'll ask bob doll right after the break. thank you for being my hero and my dad. military families are uniquely thankful for many things,

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multibillion dollar deal this morning, maker of generic drugs perrigo buying ireland's omega pharma for $3.1 billion. markets experiencing some post reform euphoria. since 1930, the s&p 500 performed significantly better on average in the last quarter of a midterm election year than it did earlier in the year. joining us right now is bob doll, chief equity strategist. bob, we saw four different indexes hit highs yesterday. it was the dow industrials, the s&p 500, the dow utilities and the dow transports. this is the first time in 16 years they've hit record highs

and this comes the day after the midterms. no, we were building toward this. we all talked about the horrible sell-off a month ago. and, of course, the reaction to the upside has been very pleasant and a business surprising how strong it has been, becky. but a lot of the internal damage that was done has been repaired. i'm not convinced we aren't going to do some testing. that doesn't mean back to 1820, but i think the path over the next 12 months would be up for the reasons you mentioned. seasonally as well as earnings are pretty good. >> bob, i think this is the biggest question. we just got through this period where there was so much investeder unease, we saw stocks down almost 10%. can we shake it off that quickly and move on? is there another potential job dropped just around the corner? >> i don't think we get another 10% drop but, you know, when you hit somebody over the head with a baseball bat, as we did with the market, you don't expect them to get up the next morning and act like life is normal and this market has generally done

that. i do think it's going to take some more time to repair, get back into the 1900s and fool around there for a while. but if the fundamentals stay good, we're just finishing a quarter where earnings are up almost 10%. we have an economy that's good, but not great, as you know. >> which areas of the market do you like the best? >> i still lean towards free cash flow is the predominant way to choose stocks. in a slow growth world, you need free cash flow. i want companies to get their earnings from the u.s. or geography is the shot selection broadcast. on the view that the economy is doing a bit better and the cycles are cheap. that would include technologies, selected industrial, selected consumer stocks, becky. >> bob with you, did you watch mcconnell and/or president obama yesterday? did you tune into those conversations? >> i saw mcconnell. i didn't get a chance to see the president, but i heard some clips. >> okay. the market has done pretty well.

we'll be okay, right? are you expecting any actual pro growth things to be enacted or will we just have to continue to do what we've been doing in the private sector? >> well, i think it's mainly the private sector, sadly, joe. there's a lot of posturing going on. they're all point to go 2016 sadly already. having said that, i don't know that we could have a more divided devicive and fractured congress than the last one. i think now we're going to get a republican congress that will pass some bills, so maybe we get some constructive dialogue. maybe the president vetoes it all. i don't know. but i'm really more hopeful about this next conthans the last one. >> bob, we were joking earlier, should the lottery winner do the

lump sum or take this in payments over 30 years? and what do they do with that money? >> you know me, becky, i'm going to take the money now and invest in because i think the stock market can do better than the rate of return suggested by that differential. having said that, with an old guy like me, maybe you take the money now knowing you're not going to be around for 30 more years. >> you've got 30 years, definitely 30 good years, bob. >> thank you, becky. >> thank you for joining us today. it's great talking to you and we'll see you soon. coming up, a coup at the ecb. why president mario draghi is under fire and why the global markets can feel the effects. as we head to break, a quick check on what's happening in the european markets right now. as you can see there, people are working five-hour days and taking long summer vacations.

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this year's wheat harvest set records, but the crop of the type of wheat used for pasta was the smallest in 13 years. so expect the italian food staple to cost a little bit more. i love pasta. you're not supposed to love pasta. >> i cut out pasta. >> aye you're a tough mudder, so you're constantly carting calories. >> you were doing protein, not the carbs. >> that's the latest thinking, going all protein all the time. >> protein all the time. >> i have a snack for you. >> what's that? >> salami with cheddar cheese.

it's a form or -- >> ooh. >> what's wrong with that? >> sounds delicious. >> with some mustard. what's your snack? let's say you need a snack and you can't have any carbs. >> if i can't have carbs -- >> apple. i don't know. hard boiled egg. >> grapes. >> grapes are great. >> i need a snack. you know what they told me? pork rinds with cheddar cheese. i ate about three pork rinds and said, i don't think so. >> are you on add kins? >> i'm on a constant try to not eat carbs diet. there's so much pasta, for example, and -- >> speaking of italian. >> yeah. and a lot of european countries. i'm not focusing on anyone in general. there's pasta everywhere. there's a meeting in the ecb and it says here it's not one big happy family. michelle caruso cabrera joins us

now, as you know, because we already took a shot at you. >> this is pure gossip reasons. reuters had an exclusive earlier this week where they say at a working dinner that occurred last night mario draghi was going to be confronted about his erratic and secretive style, that he is less congenial than the previous head of the ecb, jean-claude trichet. that moo meetings, he has three cell phones out in front of him and smed of listening to the other governors as they talk, that he texts and sends e-mails during the meeting. he is not releasing policy papers because he fierce they're being released by the bundes bank and individuals are angry because they had all exclusively agreed that they were never going to say what the target was on increasing the size of the balance sheet and what did mario draghi do? he roughly announced the target

when he said we're going to try to get the balance sheet back to where it was back in 2012. so by default, a target. and then, deep within the reuters exclusive, they have it that they've had at least seven out of the 20 24 members of the governing council, perhaps as many as ten are against quantitative easiing which suggestsite going toe about difficult to get it done. >> do you need a simple majority to do that? >> you do. but the bank of japan just did something incredibly controversial. they dramatically increased quantitative easing. they say to do that in europe would be potentially explosive. >> because if you're ignoring entire countries -- >> absolutely. >> do have tho their -- >> what's controversial here? >> oh, no. it's the greatest thing i've ever seen. it was like 300 dow points. we can do it again this week.

today. it should be christmas every day. there had been previous reports put out by reuters who are considered close to the bundes bank where they said the germans could go as far as the special clause that would say votes of extreme importance, sent them oversimplifying. they could vote based on size of the country. >> so they would get a much better -- the austrians, etcetera. so when the press conference has the announcement, nothing exciting, right? >> quantitative easing, etcetera. so when the press conference starts, you can be sure. it will be interesting to see how brave the european reporters are to ask exclusively, are you errat erratic, are you secretive? do you have three cell phones on? >> we've always talk to the best, even the u.s. central bank about the consensus. you can have a few votes go against you, i would guess it's

even more important when you're dealing with sovereign nations sitting at the same table. >> absolutely. with a currency that exists without a political union only with the economic union. it's incredibly tough. i would highlight that there are so many people who assume the ecb that mario draghi will do whatever it takes. it is not clear that he can do it. >> that is interesting. that is where the market was -- exactly. >> michelle, thank you. >> we've got to go. >> we'll be watching. >> okay. when we come back, can google find the cure for autism? what the tech giant is doing to help 10,000 people affected by the disease. there should be a truck leaving now. i got it. now jump off the bridge. what? in 3...2...1... are you kidding me? go. right on time. right now, over 20,000 trains are running reliably. we call that predictable. thrillingly predictable.

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and suzanne, his wife and others to build the world's largest genetic information database on the disorder. reporter doug cunnqua has been covering this story for cnbc.com. and a lot of research that has been done recently has sort of

cleared up some misconceptions about what's happening. i mean, i think there is a lot more diagnosis, obviously, for what's happening. that doesn't explain everything, bit seems to be a genetic predisposition and there have been certain genes that seem to be implicated. we all know now it's a really broad spectrum. a lot of disorders have similar characteristics and yet there are significant sdirchbs s are significant sdirchbignifica well. >> yeah. it's hard for pharmaceutical companies because they don't know what to go after, what is the target. there hasn't been as much pharmaceutical development on autism as there should be. so now you have collecting geno patients and their families for 15 years now and they teamed up with google which has the computing capacity to handle all that information. they're going to get together. they're already doing it and they're going to upload these

genomes and play out the biological blueprint of all these people and their families and hopefully figure out which genes are implicated, whether it's mutations or copy number variants and hopefully find some companies for google to go after. >> the questions that come up are there you try to do something at a very early stage or even prenatal or whether there would actually be a therapeutic drug. you wonder whether the whole neurosystem being set up by the genes, when the kid is 12, 8, whatever, there thought there could be therapeutic remedies? because the development seems

like it's already played. there's something called pdd, right? >> a big question will be at what age, is this for future, kids living with it now. it's really going to answer a lot of questions, but we don't know that. >> how many genes have been implicated? there are some guys that might win the nobel prize based on some research. there have been some genes? >> dr. steven shearer who's leading this for autism speaks, he was named as a nobel prize nominee the last time around because he discovered the copy number variance. this form of genetic mutation and he made a lot of head way into understanding autism. >> any idea of what the gene product of those genes are? >> no. >> if it's genetic and there are genes being targeted for the cause of this, how do you explain the rise in how

prevalent it's become, one in 68 at this point? >> it's a great question. i think what a jeannette cyst would say is don't discount environmental factors. environment and genes work together. >> you can't find any hot spots based on that. people are marrying older, having kids older. there seems to be some prevalence that people are older. >> what does the chart look like? >> we already had the chart. it's one in -- >> if you said autism years ago, you thought about maybe a nonverbal child that has a lot of stiming or whatever it's

called, you might not have -- obviously the spectrum has gotten larger. it's called an asd, it's not even called autism, right? >> the better diagnosis is one of the reasons that the rate has gone up. people are being diagnosed before -- >> some think too many are but i don't think there can be too many. >> that's hard to say, yeah. >> the thing we want to emphasize is that google instead of a 25-year process and we've seen how quickly the genome, if google gets behind this. >> they have the research power nobody really has, they have the freedom to run ahead with this so their thought is they're going to have a whole cloud platform up and running in about a year or they're going to have the genomes up and around. >> nobody knows how many as

perger guys are working in silicone valley right now. anyway, thank you and god speed. you can read doug's full piece on the story on cnbc.com. >> we're going to ask a veteran investor about his take on the market and whether it's going to go even higher. back in a moment. [ male announcer ] your love for trading never stops.

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industrials, utilities and transport all closing at all-time highs on the same day. the s&p also breaking records. should investor expect the bulls to keep going? >> riding the republican wave, what's the first order of business on capitol hill? setting the g.o.p. agenda.

>> aol about to roll out quarterly results. the second hour of squawk box begins right now. >> welcome back to squawk box right here on cnbc. let's take a quick check on the markets right now. the ecb announcement coming out around 7:45 a.m. bank of england keeping its key rate unchanged. the dow six and a half points off, the s&p 500 close to two points and the nasdaq about three points. if you own an apple product this morning, a big warning for iphone, ipad and mac users this morning. palo alto networks has

discovered malware that can effect desktop and mobile systems. the so-called wire lurker, that's the name of the malware, can reportedly install third party applications op the devices. the virus can then get transferred onto iphones through a usb connector cable. this only happens if you connect your phone to your computer. they think the attackers were chinese. most of the users were hit in china. tesla posting better than expected third quarter results driven by record deliveries. but the electric car maker is lower it's current quarter guidance. ceo elon musk says that production of the new crossover will be delayed again by several months, noting that the company

wants to get, in his words, get all the details right. shares are moving higher this morning, that stock is up more than 60% year to day. time to check out the dow trifecta. if you are a dow theorist, you had a great day yesterday. the industrials, utilities and transport finished at a new all-time high yesterday. dom, was it you a couple months ago, the transports had broken down and we had a segment on that as a problem for dow theorists and now we're backfiring on all cylinders and that usually means there's life left. >> reporter: it does. those stocks are important for a lot of investors because they're a leading indicator of where the market and the economy are headed. just take a look at the dow industrials right now. again, this is a big, big deal.

17,044 record highs. this is a big deal because we've recovered all the losses from mid-october so that's big. look at the next step of that dow trifecttrifecta. step two, the dow transport which are a leading indicating of sentiment in the overall market. then you look at the utilitieut. people like the utilities that aren't subject to the ups and downs of the economy. some view this as a defensive play on the market. they don't want all that volatility so they go towards companies like utilities. but this is the first time since 2007 all three of those have been again at record highs and it's only the 26th time in history so it's a big deal. tack onto it what is happening with the s&p 500 closing at a record high, the last time all four of those things closed at a record high together was 16 years ago, over 16 years ago,

that's according to the folks at market watch. if you look at the dow to put it in perspective, over the course of the last couple of months we saw a huge dip in october with those lows. the dow rallied back to get all those losses back. this market has been resilient. the question becomes whether or not it still has legs for that next move higher or maybe we're due for a regression. >> don, thank you. joining us is co-founder of highland capital. our guest host is gary kaminsky. we're going to talk about a lot of stuff in a moment but first, what happens next? are we due for a correction or done with that business? gary? >> let's think about what don said. obviously you had the transport move higher since october 15th in line with the markets but also because of what's happened with the energy commodity space.

utilities and interest rates, when you think about one thing that i've spoken about close to 25 years on cnbc it's about closet indexes, those people that get paid to actively manage money on the long side and they benchmark the s&p 500. >> they're getting astronomical fees for what you can do for 20 basis points? >> or even less. there's no official tracking of closet indexes. it's an unofficial shadow tracking. the people that track it have said to me that as a result of what happened between october 15th and yesterday you have the largest percentage in the history -- lets awe put that in perspective -- in the last say 20 years, those that actively manage money at a benchmark in the s&p 500 are trailing. there's no way you can have a major correction when you have

that many people at the benchmark. we can talk about many things, ebola, interest rates, but at the end of the day, i know a lot of people are going to write blogs and news letters and don't believe in this theory, this is all they're thinking about. >> you said 25 years but did not mention a promo for our 25-year thing tonight. you know that's tonight, right? >> we didn't get to that yet. >> but you said 25 years. that was a perfect time to mention this huge thing we have tonight. >> absolutely. >> i'm going to be asking who are you wearing. >> who the hell are you wearing? >> the last 25 years but this is mo-vember, joe. >> for beards. >> no. beards do not start

conversations, but mush tashs. >> is that what that is? i thought you were a little groggy. >> i'm actually doing this on purpose. i brought you some mush tashs. >> i'm challenged. insta instant mustache. >> that's becky, come. >> over four million people are involved and it's mental health. it's prostate cancer, testicular cancer, it's a great, great thing. we're going to raise a bunch of money in highland. we have our own team called the

miagi dojo and we're going to match the money given up to 25 grand. we're going to keep it going in highland. good stuff. let me talk about the markets. i agree that active management has been just a pain for a long time. qe is a tough thing to deal with. the market is flipping with a lot of liquidity back and forth. chasing it makes sense, et cetera, et cetera. but you have to think about where we're at and where we're going. qe is over. maybe we're back to something called the old normal a that's what i'm calling it. >> forget about the new normal. >> yeah. you don't have this tailwind behind you of massive injection of liquidity but it's not necessarily a headwind either. it's just not there anymore. what's going to move markets, that's the old normal, that's what we're all used to. active managers i think do much

better in that scenario. going forward, yes, it's been tough for active managers and they have to chase it a little bit because this has been an awful year but looking forward from here i think it gets better. i think the old normal comes back and things -- earnings drive things more and you have to be a stock picker. >> if you think back to 1999 but for the tech bubble everybody threw in the towel. i don't know if we're there yet but the question was, are we ready for another correction and the answer is, when you look at the calendar date and think about what has happened from january through yesterday, the answer is not now. >> not now, between now and january 31st? >> based on close to 27 years of experience -- >> say 25, would you, so we can bring up the thing again.

>> i cannot see giving up the performance. >> what about january 31st, are all bets off because you're restarting the clock? >> there's always the tendency for the calendar change to have an impact on the short term, but unless you really believe -- and i talked about the balance approach now for the better part of two years. the balanced approach has been working great. that means part of having fixed income in a portfolio despite the fact that this was supposed to be the bond bubble and fixed income was supposed to add no value. i think active management will outperform index next year but balanced approach with fixed income will be important. what are you calling it, the old normal? >> yeah. >> the way it used to be. the street doesn't have a bunch of capital for us to fight. that means that things do move when you have a story, when you have a miss or a beat. they're not in there with that absorber. it used to be the street didn't have big capital.

>> should i get out of all my bonds now? >> no. >> so then we are the new normal. >> what's been the best asset class this year? >> bond. >> which part. >> junk. >> municipal bonds. >> how about junk? >> well, yes. don't even get me -- it's 7:12, andy. do you want to start on that now? >> we're still trying to figure out how many vice chairmen morgan stanley has. >> he looks very presidential. >> what's with you though? who's the real vice chairman? can i be one? do you want to do that or whitney? >> we got to take a break. we can be here for two hours. >> mark went on for two hours. >> so the elections are over.

i think what the president said yesterday tells us that we're going to have more gridlock. i think the governorer's races are interesting because the senate is not going to get anywhere. >> it will be fun to watch. >> it will be fun to watch but as far as real fiscal policy and things changing, if you're going to push the presidential veto or if you're going to push the presidential rights to go ahead and change immigration, i don't think see a lot -- >> we got this far. did you see all the credit people were taking for the oil boom, the ones that tried the hardest to stop it. >> and that's going to continue but the governor's races actually matter because we have had an expansion of medicaid and i think they're going to push back on that. >> this one is called the titan.

>> you look like you just tied a damsel in distress. >> they have one called the anchorman. they have tattoos you put on your finger. it's a little more stealthy and they have one called the anchorman. >> i'm going to put it on the small of my back where i have my other tattoo. >> that's way too much information. >> you haven't seen it? it says ronald reagan. more tycoons along the way. aol rolling out results. we have ceo tim armstrong and then tonight the cnbc next 25 special live from lincoln center, some of the guests, martha stewart, howard schultz, 6:00 p.m. eastern time. and then joe and becky will be live streaming from the red

carpet asking everybody what they're wearing, tonight's main event. check that out on cnbc.com. i'll be inside. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. ing u.s. is now voya. changing the way you think of retirement.

? aol matching on the bottom and beating on the top and saw a jump in revenue. joining us from new york tim armstrong, chairman and ceo, doesn't have a mustache.

otherwise he's looking good. >> andrew, how are you doing? >> good, thank you. let's talk about the earnings. you beat on revenue again. you keep beating on revenue which is great thing but i have an earnings question which is does it translate on the earnings side? >> first, andrew, taking a step back as this is our 7th consecutive quarter of revenue and earnings growth and the second piece is the consumer growth. we have had really strong consumer growth with the fastest growing multi-platform user base. when you look at the transformation the industry is going through, you're seeing revenue jump because advertising is getting mechanized by machines and i think that earnings growth is happening but will continue to happen in the future. there's going to be a structural change in the industry over the next couple of years which will push a lot more revenue towards companies like aol. >> when you say structural

change, that's the programatic trend? >> yes. just as banking and other industries have gone through the mechanism of digital, madison avenue is going through that same change. we've been investing in that change in the last four years and that's why you're seeing our revenue up double digits and our consumer profit is doing well. our ad pricing is up. i think some of the industry is announcing down ad pricing. we've been able to make the technological transition and keep our pricing up over all. so we're very happy with the results. >> should you be in the consumer business? for example, "huffington post," great site, joe loves to go to it all the time as you know -- >> i wasn't going to answer that, tim, but it does become harder to -- fewer people might be rubbing it all over themselves day in and out after that election and i know how you feel about things. you're just a business guy, but

am i right, is there a little bit of an issue that we could be swinging back a little bit. you should have bought druj a while ago? too expensive? >> you know what happens in that the next cycle becomes even more important. the news information, the economy, traffic is going to go up on your properties, our properties and "huffington post" is the largest server of global news in the united states, over 100 million multi-platform users. we're also in the online cable channel business with the "huffington post" live. >> probably have at least ten republican candidates that totally undercut between now and 2016 but only one probably democrat that could prop up at this point, right? >> joe, here's what we're rooting for. we're rooting for a very contentious election where all the issues get put on the table and you have to go to the aol and the "huffington post."

>> i said the election season started yesterday. it was 8:16 and i said we have an election coming up. >> i think it was 7:16. >> i'm signing you up for a 30% page view growth individually so i'm going to be checking you out individually, joe. >> my daughter blogs, it's a great property. that was smart to buy it. >> here's my business question. this is where i was going. they're killing it on this programatic stuff, almost on a b to b stuff. has "huffington post" made money yet, tim? >> andrew, "huffington post," we've invested in video and international, if you took international out of the equation the "huffington post" would be profitable. the bigger news across, aol is five growing company in the united states.

"huffington post" has had explosive growth. i look at the industry and the valuation of our company and it's different than the asset value because if you look at the large properties, very few have been able to make the transition. "huffington post" able to do it on the content side, tech crunch. we've made the leap for advertising. the bottom line is we're investing in those businesses because it's very difficult to be successful there. we've been successful there. people questioned us when we did the "huffington post" acquisition but looking back on it, looking at the evaluations of some of the private companies, you have to say we made a very smart move getting into video and programatic advertising. >> before you go, speak to yahoo! and marissa meyer and your friends at starboard who would like to see a deal between both of your companies. you have talked about consolidation over the years. >> andrew, what i've talked about specifically is the fact

that our strategy is at the center piece and the reason you're seeing aol mixed in those conversations is because we have one of the best culture and code companies for the future of the internet. if you looked two or three years ago it's hard to see the end of the movie in the industry. everybody as investing in different places. you look forward you know there's going to be five or ten big systems on the internet. programatic, video, mobile are going to be big and aol is a leader in those categories. >> doesn't it make sense to merge? >> i wouldn't comment on that. we're focused on operations. if you look at our results today, very few companies have been able to put up the results that we've put with the technological changes and the switching in terms of o.t.t. and content changes and those things. we're very happy with our results. our best path forward is possible in 2015 to change our company faster than the industry

changes. >> we're going to leave it there. tim, thank you so much. up next, real life dirty deeds -- i just saw this story. acdc, the drummer in this case, that story next. they're coming. what do i do? you need to catch the 4:10 huh? the equipment tracking system will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge. what? in 3...2...1... are you kidding me? go. right on time. right now, over 20,000 trains are running reliably. we call that predictable. thrillingly predictable. in a we believe outshining the competition tomorrow requires challenging your business inside and out today.

at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. husband every time. i don't care if they're interviewing him. >> or the wife. >> it's either the husband or the wife, i'm just telling you. you can watch for two hours but it's going to be the husband. when we come back, before the october jobs r we get fresh data on layoffs and job cuts off the break. and now that the republican wave has crossed the nation, what will be on the g.o.p. agenda? senator john ba harass sew is our special guest right after this. new york state is jump-starting business with startup-ny.

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welcome back to squawk box. richard branson's virgin galactic says it could resume test flights as early as next

summer. the experimental rocket exploded over the california desert last week. charles schwab, raymond james all dropping pimco after the surprise departure of bill gross. g.m. says it should not be libel for claims. the company filing a brief in a manhattan court. we're counting down to the october jobs report. a new survey out this morning says job cuts are surging. the nation's employers plan to slash more than 50,000 jobs this october, up nearly 70% from the month before. john challenger breaks down the new report from chicago. i wonder what is happening here, although it's probably worth pointing out that we are coming off the lowest number in 14 years from the month before. >> we did have a very low september. this is the second time in the last 22 months with job cuts

over 50,000 for the month, so in this period of robust employment growth, we haven't seen much of this downsizing that occurred in the month of october. >> it would be easy to look back and say october was a volatile time for the markets. it would be ease to point and say that's the reason but it would be too soon for companies to get their plans together. this must have been in the works earlier than that. >> i think you're right, no question. we often see companies as you get near the end of the fourth, the fourth quarter is often a heavy time for layoffs. they get these job cuts announced and put into place before the year ends to take advantage those cuts. >> what's your sense of the overall jobs market at this point? >> it's a strong job market, continues to be. what's interesting is the kinds of cuts that are occurring from,

for example, regulatory pressures, a couple medical companies cut jobs because they had fda problems. we had a bank that is investing more to manage regulation and compliance and so they're cutting expenses elsewhere. some companies are restructuring, moving out of areas that aren't as successful so they can invest in others. it seems like the kind of job cutting you see in not only this kind of regulatory environment but also in a strong economy. >> john, good morning. on that shot we showed the various sectors we didn't have energy on there at all because that's one place where we have had huge job growth. any terms with what's happening that you're going to see that change starting in november? >> we'll see. certainly companies react to their environment. the companies often often often, that are having the hardest times when significant changes

occur to their input costs, you see change on the other side. >> john, thank you very much for joining us. >> thanks. the g.o.p. wasting no time putting together an agenda in the hopes of turning around what some are calling a do-nothing congress. joining us with his thoughts on his parties agenda, wyoming senator john barrasso. we're all exhausted, senator. just reading the way that intro was written exhausts me. some people blame the house republicans. on the other side you hear about harry reid shelving 370 bills. it's exhausting. at this point i'm not sure what to expect for the next two years but we're doing fine here in the business world and corporations are doing pretty well, the oil boom continues. i'm ready to write off washington and say stay out of the way. how about you? >> well, i'm optimistic about

our opportunities to actually get some things done. you're right, most people don't care about politics but they care about their own lives. for families all across the country, that involves job security, financial security, economic security, so they're concerned. i want to actually get things done in congress to get people back to work, focus on jobs, the economy, opportunities in energy, opportunities with actually helping people get healthcare rather than what they're dealing with now. we have lots of opportunities on trade. i'm looking forward to having lunch tomorrow with the president at the white house to talk about these issues in ways that we can then in a bipartisan way move forward with bills that have passed the house with bipartisan support but have been blocked in harry reid's senate. we're going to have votes on those bills, get them to the president and then make him decide what he's willing to sign and not sign. >> you're on national tv, did you watch the president yesterday? did it look to you like he had

changed at all or was digging in his heels, honestly? >> well, i think we're going to hear a lot more when we actually sit down with the president tomorrow at lunch. he's going to have the leaders of both parties there. the only way you can really tell is to put something on the president's desk where he has to then decide something that's popular with the american people, that has had bipartisan support in the house and the senate. >> he doesn't give credence to any republican idea. you saw that. here's what he wants to talk about. minimum wage, infrastructure, student loans and early education. those are the only -- again and again and it's the same from six months ago and six months before that. as far as reading tea leaves, he read a lot of tea leaves in his re-election but didn't read any tea leaves about what this election meant on tuesday. i hate to be cynical but i think

you're on your own here again. have a nice lunch. is it breakfast or lunch tomorrow? >> we're going to break through the gridlock in congress. we're going to put bills that pass committees in bipartisan ways on the president's desk in terms of exporting liquefied natural gas, in terms of the keystone excel pipeline, in terms of stripping out the most harmful parts of the president's healthcare law that's hurting healthcare as well as the economy and then he's going to have to decide. these are going to be bipartisan bills. >> we'll get transparency but nothing will get done. >> let me follow up on joe's question because i think the issue is this. you had some thoughts about this lunch tomorrow probably at 2:00 eastern time yesterday. at 4:00 eastern time yesterday after this press conference were you still as optimistic and hopeful about this lunch? there had to have been some change in terms of what your thinking was after that hour and 15 minutes, no? >> well, i'm expecting that the

president is going to need some time for the impact of the full election to really sink in to see what this means for him and for the country. i'm still optimistic to get things done. we're going to break through the gridlock, put pills on his desk that has bipartisan support that will get people back to work, focus on jobs, the economy, energy, trade. is that a polite way of saying that you are a little less optimistic at 4:30 eastern time yesterday? is that a nice way of saying the same thing? >> i'm going to continue to maintain my optimism -- >> you're nice. >> the american public needs for us to break through the gridlock and i'm ready to do it. >> think about what it's like to be president though. it's not just president obama. you're surrounded by yes men. he doesn't watch cable tv. if you just read the "new york

times," it's an echo chamber. i don't know why you think as time passes things are going to change. six years have passed. >> the president has said that his policies were on the ballot and his policies lost on tuesday. i think we have seen a collapse of confidence in the president. he has lost considerable amounts of credibility with the american people, and if he is committed to the future of this country in the way that i believe he is, then he needs to work with us and in a bipartisan way to get people back to work and focus on jobs and energy. we have a great opportunity to do it. the newly elected republicans are committed to it, committed to focus on the issues that they've heard about in the campaign trail and they're not often the issues that the president was talking about. they're issues of jobs, the economy and affordable healthcare. >> senator, hope springs eternal. smile, walk in there, bouncing in your step.

we're all trying to help the american people grow in prosperity and create more high-paying jobs and be exceptional. be exceptional again in the united states. we thank you. thank for your time. >> you're right, it is exhausting because it almost feels like the twilight zone. >> it's going to be a two-term presidency. >> some of the questioning yesterday i was surprised from the press corps, weren't you? >> there was some that you would say why in the middle-middle. but there were some from some of the other networks that you would not have expected to come in that direction. andrew is totally silent on all this. how are you doing? >> i'm good. how are you? >> i'm good. lovely. up next, medical device firm

rolling out results, the stock up 20% in a year. the ceo is going to answer the squawk call. and the democrats picking up the pieces of the mid-terms. does this spell trouble for the party's attempt to retain the white house in 2016. former clinton chief of staff bill daily is going to join us at the top of the hour. we're on ecv watch, an announcement expected. we'll that and instant reaction when squawk box returns. 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.

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don't mess with the eggnog latte. starbucks bringing back the beverage. the coffee chain dropped the drink to simplify the menu. the complaints started on november 1st. starbucks says it now made a mistake and it's very sorry. >> power to the people. you get what you want. >> they give the people what they want. >> there you go. hologic fourth quarter results beating on the top and bottom lines. shares of the medical device

maker -- now why were we talking about medical devices recently. they've climbed 16% since the beginning of the year. joining us steve mcmillan, president and ceo of hologic. you know what i'm talking about. >> quickly, the ecb is leaving rates unchanged. >> specifically yesterday the president was asked about keystone, but specifically asked what will you do if both houses now pass and rescind the tax on medical devices that's part of the affordable care act. he didn't answer. but in your view, would he sign that bill if it was rescinded? >> we think there's a lot of bipartisan support actually for that exact bill and that's been one -- as you know it's been one of those wacky taxes that's been implemented years ago. i think there's a real chance.

we have a lot of democratic support to possibly overturn that. >> there's only a couple of issues that i think where his party would actually -- enough would break away to do that and this is one of them maybe. >> everybody has realized that tax got thrown in there. it's a horrible tax on the united states and businesses in the u.s. you remember years ago we talked about some of the unintended consequences. >> can you quantify job losses based on that tax in the industry. have they moved facilities off shore? >> you have seen a number of companies move jobs off shore because of that. think about it, it's a 2.3% sales tax which is very unusual for this country to have taxing sales, not profits, and it's only in the united states. so it encourages all the wrong

behaviors to move. we're not taxed on offshore sales and people aren't taxed on offshore manufacturing and everything else. it has all the wrong incentives for trying to nurture industry. think about bringing 3-d mammography to the united states and we're a high tech industry with a lot of r and d going on. >> theoretically it could actually be beneficial in terms of cost containment which is what obamacare was trying to do in the first place? >> but if you think about it, it's another one of those unintended consequences. it's not bringing costs down because it's added costs. >> you guys have the potential to actually be a positive for what we're trying to do. >> think about the paradigm in so much of medical devices, us as a company but i'll speak for other companies as well. over the last five to ten years so much energy has gone to how

can you come up with things that will take costs out of the system. you think about our 3-d mammography. it's having a huge decrease on women having to go back that had false positives and having to go back and have expensive biopsies. you take those things out of the healthcare system and we just got a very positive reimbursement from cms. it was announced last friday on our 3-d mammography. it's an incremental payment. they base that on we're reducing the cost to the healthcare system by reducing a lot of unnecessary tests and followups. >> steve, you're running a business. a lot of politicians that talk about this, they never run a business. if this happens, speak to the politicians out there, what actually happens? what do you do as a ceo in your business in terms of new spending that would exist if it was changed? >> in most cases, in our particular case, we would probably invest more in r and d. right now that's for us over $20

million. >> that's more people? >> yes. most of our r and d is in the united states. frankly, a lot of this city's r and d is in the united states. you might see it a little more in other commercialization. i'm not sure. i wouldn't want to overcommit and say there's going to be a whole bunch of manufacturing jobs necessarily. >> how quickly does that ramp up? how quickly can you have that ramped up if this happens? >> as you know it's probably not going to be in the first quarter or two but i think a lot of people would start to say there's clear opportunity and within a year i think you would start to see some hiring. is it going to dramatically move the needle, no. but does it send a signal and take away the uncertainty. the uncertainty is the hardest thing for us business leaders to deal with and the additional regulation and taxes, those are the hard things when you want to be spending your time on r and d, not tax policies, inversions,

all the things you guys have been talking about and dealing with over the last couple of years. >> in terms of utilization, the economy is improved. are you seeing people do stuff now that they were putting off a couple of years ago? >> marginally. certainly you saw it in the '08 time frame when things pulled back. i think we've even utilizations gradually improvinmproving. not a dramatic change but a low steady growth. we're certainly feeling that in our business and part of our turnaround has been buoyed by a lot of positive demand and products. >> you saw barrasso. we'll find out how the lunch goes tomorrow. >> we'll just going to focus on our business. >> i would do that. >> one more question quickly. where and how available are these 3-d mammograms? if women are thinking about that, because the idea of a

false negative, false positive, any of those things -- >> it's a huge difference. there's about 1200 installed in the u.s. now so you've got them in all the cities. we have a huge ramp-up going right now. basically in every key city, most of the key hospitals are installing our systems and getting there. >> will this eventually replace the traditional mammogram? >> yes. traditional ma traditional mammography you took a one slice today. today you're effectively getting a book of the images that the radiologist can look at. it will completely replace the 2-d over time. >> over the next ten years? >> probably over the next five, probably five to six because of the installed base and the turnout but we're seeing a huge increase, especially since the jamma study came out this summer that talked about the great results. we're trying to get there as quickly as we can everywhere.

>> thank you. thank you. >> the ecb deciding to keep rates at record lows. let's check out the market since we heard that and look at what is happening with the euro. it's trading at 1252. also easteuropean stocks are mi at this point. we're waiting for the president mario drag go to be speaking. he'll be taking questions from reporting at 8:30 eastern time and we'll bring you the headlines coming out of that. we still have stocks to watch. squawk box will be right back. ...for the year. hi. sorry. just want to say, i bundled home and auto with state farm, saved 760 bucks. love this guy. so sorry. okay, does it bother anybody else that the mime is talking? frrreeeeaky!

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welcome back. our guest host gary kaminsky is always on the run. when he isn't consulting clients he's pounding the payment. he yan the new york city marathon on saturday, his 6th marathon and you just had surgery on your acl in july? >> look at that. i had a partial acl tear that i had repaired, dr. barry fisher, the new jersey devils team doctor. and then i ran the marathon which is in itself amazing. >> wow, gary, i'm amazed. is that a selfie you took when you were about to go under? >> it was. on the actual picture of the race though, that was mile 18.

i looked very good at mile 18. it was all downhill after that. those who were in new york this weekend know the wind was massive in the bronx. >> congratulations, gary. that's fantastic. >> not everyone looks good in one of those hats. >> did i look good? >> most people do not and you confirmed it. >> it's a do rag. >> no. andrew is asking about in the race. >> in the race that was a do rag. >> yes. >> at the hospital it was the -- >> i don't know. i don't even have any hair. i don't know why they put that on. >> do you remember taking this picture? >> i honestly don't. good question. i honestly don't. >> you should not be allowed to have a camera phone in your hands at that point. when we come back, stick around, we'll be talking with bill daily.

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i'm becky quick. the bulls off and running following this week's mid-term elections. the s&p and the dow closing at record highs. the biggest winners, the energy and utility stocks. we saw record highs looking for the transport and the utilities, too. the nasdaq fell short. the index pushing back and posting its first back-to-back declines in over three weeks. the bank of england and the ecb leaving key interest rates unchanged. we're waiting for ecb president mario draghi to be speaking today and taking questions from reporters. that's coming up in about 30 minutes. ahead of that the futures are trading a little lower. dow futures down 24 points. s&p by four and the nasdaq by nine. headlines at this hour, the number of planned layoffs surging about 70% last month. that's coming off a 14-year low. we should tell you that palo alto networks says it's

discovered malware that can affect apple desktop and mobile operating systems. the so-called wire lurker can reportedly install third party applications on devices and get transferred from infected macs through your usb cables. supposedly at the moment only in china. tesla posted better than expected third quarter results driven by record deliveries but they're lower third quarter guidance and ceo elon musk says the crossover suv will be delayed again by several months. the company wants to get it, in his words, get all the details right. let's get some perspective on the mid-term election results from a former white house insider. joining us is bill daley. he is the head of u.s. operations at arg tier capital

and the former commerce secretary under former president bill clinton. >> congratulations on your 25th anniversary. >> thank you very much. tonight we have a big party coming up. we'll take a look back and alook ahead. bill, you're somebody who can look back and look ahead, too. you've been there in the past and seen what happens in mid-term elections. with the senate taking control -- the republicans taking control of the senate, are we going to get anything done in the next two years? >> i'm an eternity optimist. in the last two years nothing got done because the democrats wanted to protect their numbers. the republicans i think rightfully so felt, look, we're in the lead here, let's just don't do anything and try to manage this thing through and they managed through their primaries very well. so we have a situation for the first time in a while, the house and senate are at least in one party. they have major differences in

between those houses. take immigration, the senate passed the bill bipartisan, the house wouldn't bring it up. they have got to within the republican party secoreconcile because they still need 60 votes. they need another 7 to get to 60 to avoid a filibuster. but i'm optimistic that i think listening to mitch mcconnell. his career has been about legislating. he's not running for president. maybe a bunch of his members will. but he wants to get something done obviously for his own legacy and his party's legacy. i'm optimistic. i know it's a cynical town but i think there is a window between now and probably the fall before the presidential campaign really takes over to get something done. i hope they're all going to move together. maybe in small bites, not major things done at once because of the political system that we have but at least get something

done and begin to give faith to the american people who are very, very upset. >> i'd say part of that has to come from the president, a huge part of that. it's going to be how he reacts to this. president obama said in the past that elections have consequences. will he bend or reach out an olive branch and try and work with these new leaders? >> if you just take their language, they're all reaching out. obviously there's a meeting tomorrow of the leadership, but that's just a nice gathering maybe for the media but the beginning of a process. i don't think there's any question the president is going to have to reach out and he's going to have to compromise. democrats in the senate, beyond just the president obviously, are going to have to make judgments. but the question is whether the majority with some votes, they have to get a majority in the senate, 60 to get something done, whether they're going to present something to the president to kind of jam him, or before they pass something are they going to work with him so that what is passed, no doubt

the president is going to have to move further towards their position because they've got two-thirds of this three-card game here, so he's going to have to move and he's going to have to bring some democrats with him. >> you just mentioned are they going to work with him before they jam him. the question is also is obama going to jam through immigration without working with them? this is a two-way street. >> on immigration, i think the president was fairly clear yesterday what he's going to do. this is not on issue that just came up. the senate dealt with it. they passed the bill with republicans -- remember all those hearings that everyone was following them. there was a bipartisan agreement. so you've had immigration dealt with at least in the senate in a bipartisan way. it was not an all democratic jam at the republicans. so at least you've got a starting point on immigration. i think the president was very clear that he's going to do something that he would be very happy to repeal immediately, and there's a question whether or not the republican leadership

both the house and senate can put something together quickly. everyone knows what the issues are. listen to the business leaders in this country. >> i wanted to ask you about this lunch tomorrow. take us inside the lunch, but it sounds like you sort of said earlier you don't expect much out of it, that it's a photo op and an opportunity for the media. so this lunch that all these senators are talking about, what's going to happen inside? >> optics mean something in politics. i think the american people seeing -- whether something actually happens in the hour or two they're in the room, i don't think they're going to sign a document of some sort of manifesto here, but at least we have a process beginning. i would strongly encourage the president to reestablish a weekly leader's meeting with the president, a breakfast, a lunch, whatever, a dinner, so that the six of them, including the vice-president, get in a room once a week, talk through before these things blow up and try to

come to an agreement. >> he's never done that before. why would he do it now? >> two out of the three cards are held by the republicans, so you better sit down. >> is he getting that advice this morning? >> he doesn't need to get it from me or anyone else. >> but is he getting that advice from somebody in the white house? do you think that's going to happen? >> i don't know if it's going to happen. i hope so. he's got a colleague, the vice-president, who spent 30 years on the hill. nobody knows the capital better than joe biden. he has cut deals with mitch mcconnell repeatedly over his 30 years. he's a big asset. >> how much influence do you think joe biden has had on the president thus far given what you just said? >> i think he's been a strong partner. in the year i was chief of staff i saw joe, there wasn't one major decision, one major meeting that the vice-president wasn't there and the president didn't turn to him and say, joe, what do you think? as you remember in the first couple of years, he was very

much central in cutting deals with mitch mcconnell and the republicans, sometimes to the chagrin of some of his former senate democratic colleagues. but he was there and knows the game and knows the hill. lindsey graham, senator graham obviously won a big election in south carolina. he spent an hour on the phone with joe biden. and others on the republican side have said they have a very good relationship with him. so in addition to the president reaching out as i think he will, using the vice-president in conjunction with the president i think could move the ball. i'm not polly anish about things. i'm realistic about them. but if they don't do anything, this feeling that the american people, that the system doesn't work, they may have to start small things like give the president trade promotion authority. when i was there i strongly believed that one of the things

the president asked kcongress fr was reorganization authority. i think this government shows repeatedly it doesn't function well. reorganize it. there's not a major business or industry in america that hasn't reorganized in the last 50 years except the government. >> will you look at me in the eye and tell me the american people were just mad at gridlock in washington, there was no sort of a chafing at big government in progressive policies that the president has been -- you don't think -- or had enough with the war on women, the war on this, the war on that, the divisiveness? there were a lot of republicans elected, governors, senators. it's just that they're mad that the house wouldn't go along on his policies? >> i'm not saying that. >> a lot of democrats are. >> i'm not. >> only elections he wins have

consequences apparently. >> every election has consequences. >> not every one. >> trust me, to the president, the face of republican majority of 53 possibly -- >> i want you back there because i think it's an echo chamber. i think there's three people left there just nodding. >> i thought you liked me. >> i do. >> you're right, stay where you are. i do like you. we always have a moment like that. i want to have a drink and really talk. >> stop by the set some day. we're here every morning at 6:00. >> i will. if you invited me to the party tonight i would have shown up. >> you weren't invited? >> that's all right. i'm here in chicago. >> that was a massive oversight. we wish you were able to make

it. >> send your plane. >> honestly, will you stop by the set the next time you're here? we would love to see you in person? >> i will, becky. thank you very much. >> you know who else. or -- >> i don't fly those jets, are you kidding. >> but you know a guy who might be able to send a plane for him. coming up, amazon's taxi cab confession and home away stock being slammed. we'll hear from the ceo with that and his fight with san francisco coming up next. dow jones looks like it opened up 23 points. nasdaq down about 8.5 points. we are back in a moment. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell.

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your next amazon purchase could be delivered to your door by taxi cab. they've been testing in san francisco and los angeles. paying about $5 a package for

one hour delivery. this would be part of their efforts to find alternatives to the post office. it's trying to compete with brick and mortar retailers which offer same day delivery. a homeowner filing a lawsuit in san francisco to block the so-called air b and b law, that law officially legalizing short-term rentals in private homes, but you have to be a permanent resident. home away says it's unfairly benefitting its rival. meanwhile the company's stock falling about 16% after issuing weak guidance. joining us is the co-founder and co-ceo of home away. we can talk about the earnings but i want to start with san francisco and try to explain to the audience what that lawsuit is all about. i will give you the floor because i think there's a little wrinkle that makes it a little tough to understand.

>> yeah, so there are a few things about it. there's a law that was recently passed in san francisco. we believe the law was actually crafted with company, air b and b and that does make short-term rentals legal in san francisco but for people who are permanent residents. if you look at the vacation rental industry that we're in, people own second homes, they often live in other places. there are people who own let's say apartments in san francisco. they may use them a few times a year but when they're not there they rent them out. that's a thriving economy in san francisco. now that this lhas passed, essentially somebody who owns a home from out of town can't rent it but the person who's renting it from them can rent it because that person is a resident of san francisco. air b and b is typically renting out the primary apartment that somebody lives in, whereas

homeaway's customer base is people with second homes. the discriminates against two classes of people, whether you're a resident or not, in terms of what you can do with your rate estate. it's highly unusual and we believe unconstitutional. >> the other side is that effectively a lot of your clients who own these homes but don't live there are effectively running hotels in the city but they aren't really called hotels. >> yeah, it actually turns out not to be true. there's a very thriving vacation rental economy all over the world and it's simply people who invest in real estate assets typically for their own personal use who don't have the ability to rent them long term because they use those properties themselves. by renting them short term the gives them the ability to hold those assets and be part-time residents of a place like san francisco. if you take that away it's going to hurt san francisco because it's going to hurt tourism which

is something san francisco has always done in a great fashion is welcoming people in from out of town. >> how much do you worry that this law in san francisco is going to be adopted in other cities? >> well, that's a great question. to be clear, san francisco is not a huge market for us. we have over 1 million vacation rental listings around the world and we only have 1200 in san francisco. this isn't a material impact to the business issue but it is a point of principle for us where we want to make sure that san francisco doesn't stand up as a model for other cities around the world because i think in total if cities all over the world adopted a law like this, it would be very unfair to the owners who, for 30, 50, 70 years, have been doing this. it would put them out of business. our business tends to be more in vacation destinations, but we're doing this really on behalf of all owners everywhere. and i don't think we're going to see this adopted in other places because this one has come a bit out of left field.

i think in part because air b and b is a san francisco resident and so the law was practiced specifically to help them and we believe that is anti-competitive. >> real quick, the stock did take a hit this week. you reported what can arguably be considered solid third quarter results but they were weaker than the guidance. >> you know what, we beat on top line. we have about 45% of our business in europe and so foreign exchange has a big impact on us. we did restate revenue for the year but 100% of that was simply a foreign exchange calculation. the dollar has gotten strong and that's true of priceline and other companies. we guided our revenue down $3 million for the year. we took it down $4 million for foreign exchange and bumped it up a million for overperformance. the business is performing extremely well but when it comes to a calculation we have to deal with whatever the market gives

us. >> we have to leave the conversation there. we'll watch to see what happens in san francisco. appreciate it. >> thank you. coming up, the battle against mcmansions, a quaint little neighborhood turned upside down by enormous houses that barely fit on the lot. a look at how los angeles is taking steps to stop the mcmansion expansion. and then breaking economic news, jobless claims ahead. plus ecb president mario draghi's news conference. i think we should have done the nice music. what if they changed it? >> you heard about the battle. michelle told us earlier about the big battle behind the scenes at the ecb. >> no. let's calm down. the ecb was unchanged. it's very calming. >> wait until 8:30 when he starts talking and gets to the questions from reporters. >> that's when we need to pay much more attention. we are monitoring that as you can tell from the music. we'll bring you the highlights. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops,

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los angeles lawmakers are making a move that may mean the end of mcmansions. holly jackson has more on that. >> reporter: l.a. council members are closing a loophole

to track down on a number of mcmansions. they're voting to restrict the size of homes in more than a address l.a. communities. when you drive through certain neighborhoods you see older, smaller houses right next to those new huge ones like that picture you just saw there. opponents say they just destroy the character of the neighborhood. >> the threat is to the neighbors who have been living in a place for a long time, all of a sudden one day they lose their light. when they used to be able to look at some sort of an expanse, now they're looking at a black wall. >> developers not thrilled with the new rules. they argue there's a robust industry of people who make a living constructing these houses and the law that threatens those jobs is a concern. >> i think the people will suffer locally from that move and everything is just going to

stop. >> economic development study in l.a. found people don't want to live in mcmansions as much as they used to and that's a trend that we are seeing nationally. a recent survey by the national association of realtors showed most people would sacrifice some square footage to live in a neighborhood with smaller houses where they could walk to shops and restaurants. we're seeing this in california and across the country. >> is the biggest restriction just square footage alone? a lot of the pictures showed houses that were very different styles. is this an exterior thing or simply a size thing? >> it's mostly a size thing and also about being in scale with the neighborhood and in character with the development. you're seeing hot neighborhoods in l.a. like miracle mile where there are older bungalows and then huge modern mon strosties popping up next to them and that's what city council wants

to limit. >> nobody has any land. what's the average lot size? it's like two-tenths of an acre? probably not even? >> it's small so people are trying to maximize the square footage that they have, but when you talk to these opponents, it's a privacy issue. if you move into a house and you heard this guy talk about light or you have a little bit of privacy and somebody builds a massive mansion next to you, you lose out on what little privacy you have. >> you can always go and take that nice drive from pasadena to brentwood, that four-hour drive six miles. see you later. thank you. coming up, jobless claims, mario draghi and more and the incoming ceo of jet blue talks airline expansion, the company's new terminal at jfk. we're back in a moment.

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breaking news, jobless claims move from a slightly revised 288 town 10,000 to 278,000. 2.348, just shy of 2.35 million on continuing claims.

third quarter preliminary productivity, two percent, up two percent. now, that is good news. productivity, the magic bullet, has been lacking. last look moved from 2.3 to 2.9. it's all about productivity. we're expecting 1.5%. when productivity gets better you want to see unit labor costs seize up and they did. three-tenths of one percent versus half a percent because we're looking for less productivity. in the rearview mirror not necessarily -- pretty big. we move to down five-tenths. mario draghi and the press conference, i'm not sure what he's saying but as i look at the euro currency it's given up some ground in futures but it's positive onay which means no qe surprises going on. i'm pretty confident i'm interpreting the market right even though we're running blind. of course remember we have ongoing issues with mario draghi

supposedly losing support. even if it's that or maybe they're actually doing some cost benefit analysis or other countries that 'embarked on thi treacherous road. what really do you get back from it, and i think that's what the europeans are trying to debate at this very second possibly. >> what would you be looking for out of this mario draghi press conference that's happening right now? anything that you think might push the markets in one direction or another? >> you have to look for specifics. at this point glossing over the potential, the possibility, the maybes down the road aren't going to cut it as aggressively as they have and i think japan becomes the new model, not the u.s. you could argue that the first round had some benefits. we can debate that another day. the japanese smaller economy and now i like to say conventional

and quantitative easing. we've gotten to used to it. >> for more on the numbers. steve reeseman is here as well. i saw you looking through those numbers and saying wow a couple of times. >> 2.348 million on continuing claims if i'm looking at nye charts correctly is the lowest number since december 2000. so that's helpful. the 278 not the lowest but the second lowest i believe we have had. i'm going to double-check that. plug it into the computer here. second lowest since the recession began on the weekly claims. >> we had the challenger numbers earlier. they were up something like 70%, the job cuts. granted that was working off a 14-year low. we spoke with john challenger and he was surprised to see that uptick. what would you attribute that to? >> the level matters a lot. when they say it's off a 14-year

low, that's significant. we did see in the adp report if you noticed yesterday very little job creation at the big business level. they had a big ramp-up. they were the ones who were driving it. we talked for how many years about the lack of job creation in the small business world. i come back to something that gary kaminsky said three years ago, four years ago. he said we'll have job creation in this country when stock investors reward companies for hiring and expanding. i feel like we're in that zone on cap-ex but i don't think we're in that zone when it comes the to job creation at the big business level. if big company xyz says we're hiring 20,000 people, i'm not sure that's a drive. but when they say we're expanding into x and we're going to spend $5 billion on equipment, that's a buy today. >> it's great that you remember

that, steve. >> i'll never forget it. >> what's changed in the three years, there are certain companies probably in the technology space, sort of like in andrew's wheel house, that those companies when they announced that they're going to expand with a human capital standpoint, they get rewarded because they're valued in certain metrics. we have moved from that direction where three years ago nobody was rewarded for it. it's happening now. >> i just want to say one thing. this productivity number is interesting, one of the better we have had. the second quarter revised from 2.3 to 2.9. productivity as rick correctly said was lagging. it suggests a little bit stronger private sector gdp. we don't really appreciate that in government. some think that very statement is an oxy more on. the private sector being 2.9 and now a little lower suggests a

little ramp-up. it's good stuff out there. >> futures are up. what did you say? >> i said that the claims numbers are very, very healthy, as good as they've been. >> did mario say anything? >> that i don't know. as i understand mario, and you can ask michelle about this, the expectation in the market is that mario figures out that the things that he's doing now are not enough, won't get him back to his 2012 level, and ends up doing outright qe in the first quarter of next year. >> was it dramatic or as expected? >> the numbers? >> no. what draghi was saying. >> i haven't looked at what mario is saying. >> in general how do you feel about what he's saying, dramatic or expected? what kind of music should we play? >> i see what you're asking. i think it's dramatic because i like that dramatic music [ dramatic music playing ] >> is that like monday night football music? >> almost like that. >> these two met one last time

on a snowy -- >> exactly. you could do that for a living. that's pretty good, joe. >> i have a job for now. opec just releasing its world oil outputs. jackie joins us now. there's been a lot going on in oil. >> that's right, joe. good morning. >> good morning. >> this report coming out at a very critical time. oil prices beaten down 20% in the last three months. you have saudi arabia recently cutting prices making a lot of headlines about that. of course what opec is saying in this report is it does expect that oil will continue to play a major role satisfying the demand outlook in -- global demand outlook over the next 25 years. opec is expecting prices to stay around $100 a barrel mark in the long run. avoid these sort of price fluctuations they're saying we're seeing right now. world energy demand expected to increase by 60% by 2040.

growth is going to come from indiana and china. energy supply side forecasted to grow proportionately as well. oil will grow about 22%. the middle east is going to continue as the leader and the report recognizes the fact that the u.s. is increasing supply but they also say logistically getting that supply around dm domestically is going to continue to be a challenge which is something we've discussed a lot. the bottom line is that we have an even keel tone coming out of opec. some of the influential members have said don't panic and it is going to be an issue to watch the key members like saudi arab arabia. they have a lot of influence and they're going to try to hold onto that market share and cut price at least for the time being. again, opec, even keel tone. back to you. >> we hope they're going to be

okay over there, jackie, the saudis and all. it hurts us deeply seeing this thank you. thank you. michelle, you have some stuff for us. >> the euro is $1.24 a low for the year. mario draghi just came out and one of the first things he said was they were committed to increasing the balance sheet in a sizable way, getting it back to the levels that they had at the beginning of 2012. why this is significant and that he said this is because remember going into this meeting we heard reports that a lot of the other governors were upset that he had announced a target at one point and this time he came out and reiterated that target again almost to those people who may have been complaining about him announcing the target. >> i'm not backing down or afraid of the disconnect and i'm not afraid of the u.s. telling me i can't do what i want. >> exactly. >> you pointed out the euro. the futures turned positive at the same time. i wasn't sure if it was the u.s. data or what is happening with

the euro. >> my guess is probably mario draghi saying there's you anonymous commitment to unconventional measures. we know there's not universal commitment to quantitative easing but he did reiterate doing unconventional things in case there isn't enough done so far to fight off the expectations of low inflation. he also said something that there was increasing differences in the different performances of the different economies within europe and in the past that's been code for saying the transmission mechanism isn't quite working to different countries and therefore has been a sign that they were going to do more. >> the tools we've used to this point haven't worked so look out, there's something new. >> they're still committed to doing that. we'll see if that turns out to be the reason. >> do they have any major announcements between now and year end? >> there's another meeting in december. they meet once a month. they're different than the u.s.

central bank. they do a press conference every single time and if there was going to be -- we've seen expectations from analysts that if there was going to be an announcement about quantitative easing it was more likely december. >> that's the big meeting? >> yes. early december? >> roughly a month from now. >> we're all pitching in, that's nice. japan 300 points, now europe. >> not europe yet. >> we did it for a while and we're all helping. >> we should add that the securities purchases that they're going to do. the qe lights and the bonds, it's going to go for at least two years. >> you're a chief investment strategic and i wish all trades were as predictable as the euro. we all talked about it at 138. we're exiting.

europe is entering. you could have done it at 138 and stayed where you are and you wouldn't have to do anything else. when does that work where consensus is absolutely true? >> not quite yet actually. we don't publish precise forecasts on currency but we think there's going to be much more action in the currency impacts than you've seen in the past. we think 120 is not unlikely in the near to medium term. >> the market has been okay but what if you put every schwab client short the euro at 140? >> we're unlikely to put $2.4 trillion in a single currency trade. >> i know that. >> i'll talk to chuck. >> if you had done that you wouldn't be on tv. you would be on a very large boat. >> on my g-5. >> your g-6 probably. the mid-terms, what we just

heard from draghi, stay long, the utilities are hitting highs, the transport. >> i think we could have more bounce of what we saw in october but it's in the context of a secular bull market that's far from dead here. when you're at this phase in the monetary sicycle you send to ge sporadic phases but i think the bull market has a ways to go. >> the three percent gdp economy in the united states, can i put that in the bank? >> i think steve was talking before about private sector growth. since the recession ended you've had about a one percentage point spread between real overall gdp growth and private sector gdp. you're likely to narrow that with the overall economy moving up to that pace that the private sector has been enjoying.

>> you meant dragging -- it's been a drag and it has been a drag. >> good morning, it's gary. >> hi, gary. how are you? >> i'm good, you? >> good. >> get that out of the way. >> exactly. you're in denver right now, speaking to clients. there's a perception out there that retail is not engaged in the stock market. i know what we see in morgan stanley in terms of our clients and the activity. what are you seeing in terms of the schwab client base and what are they doing? while it's not 1999, how active are they? >> they're fairly active. one of the interesting things we have found is the more disciplined approach our investors have been taking, whether they have an advisor associated with them or they've at least taken a very disciplined, long-term planning approach involving diversification and asset allocation, they have come through this entire period and i'm going all the way back to

the financial crises period much more so than, say, the investors that are kind of winging it on a day-to-day basis. i will say that although there's a tone of optimism there's still that muscle memory of the crises, that skepticism but in particular back in october when we saw the pick-up in volatility there was virtually no panic by the retail investor. >> there are some interesting things. you look at oil, look at the euro, all these things happening and you have to think how powerful the u.s. fed is because you can trace it all back to central bankers, a lot of these moves, but they're much further and faster than people thought. thank you, we'll talk to you soon again. coming up next, jet blue ready too take off from the terminal at jfk. how will the company try to lure new business travelers? a new interview and where they're putting screaming brats

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welcome back to "squawk box." i'm live at jfk in the new expanded fifth terminal where jet blue's operations will be

expanding. i'm joined for a first on cnbc interview with the incoming ceo robin hayes. thank you for joining us. this is a nice facility and one that you guys plan to put to use immediately. >> we do, phil. good morning and thank so much for being here this morning. it's a very exciting day for us at jet blue. next wednesday we open up the new international facility in terminal five. everybody knows t-5 is the best terminal to fly in and out of. the ability to land our international customers coming in from our nearly 40 flights a day flying from international destinations into here, land them, allow them customs under the same roof is exciting for all of us. >> they're testing the intercome system as we speak. let me ask you about the concern a lot of investors have with jet blue and that's that you are essentially in a corner. you need to increase your

ancillary fee revenues, yet at the same time part of the reason that you have the incredible loyalty that you do is that you are not perceived to be nickel and diming people. will you add a second bag fee? will you increase your ancillary revenues? >> first of all, we're a company that's built -- our mission is to inspire humanity. we're a company that's built with a great culture, our crew members love to give that's where we want to be. we heard the feedback from investors. we are committed to grow our returns. as our product evolves, there will be new things we are planning to do. success for us, great companies, they find a way of delighting their crew members, customers and shareholders. >> mint, you had success so far. what are early returns showing

you on cross country flights? >> mint is a great example. it's a product that was new. our customers are enjoying it. almost every seat is full with somebody enjoying the mint experience. crew members are loving offering the customers that service. it's making a significant difference to our profitability on the l.a.x. market. >> do you expand it to boston, san francisco? >> at the moment, we've got san francisco just rolled out. i'm confident we'll see mint on new markets in the coming years. personally, i think boston, san francisco, boston, l.a.x. that, has great potential. >> robin hayes, he takes over february 16th. by then, i know they'll have the intercom system working here in the expanded fifth terminal. back to you. >> thank you for that. when we return, we'll talk to jim cramer from the floor of the new york stock exchange. it is a big night in honor of our 25th anniversary. celebrating the biggest names of

our time and looking ahead to the leaders of tomorrow. cnbc's gala event will be held tonight at lincoln center. ceo of mastercard, sandy weill, tom farley, we'll be on the red carpet. watch us talk to all the business celebrities, ceos and others. you can watch it all on cnbc.com starting at 5:30 eastern time. then we roll on to the air at 6:00 p.m.

welcome back. mario draghi making those comments. michelle told you how it was whip sawing some of the markets. euro at 1.2412. fell below 1.24 the first time since august 2012. keep an eye on this market today. >> let's get down to new york stock exchange where jim cramer joins us. yesterday, you said we were going to unleash the private sector. you watched both press conferences. you think that's going to happen? >> i love gridlock.

you guys were tough this morning. there is no keystone. there is no spirit. what i like is nobody will get anything done. they are even more irrelevant. that is a huge win for stocks. >> the private sector is not going to get early release friday. we have two more years. there is no parole or probation. we got it. we're in here and set for the duration. that's what we voted for. we'll do okay. we've been doing all right. let's hope it continues. >> you and i are on the exact same page. i don't know how to complement that. i agree with you. >> no early release fridays. no tacking to the center. >> congratulations 25. >> we'll see you tonight. we'll be on your show. up next, nothing like christmas in new york city. nbc is getting ready to mark the beginning of the holiday season. it's really nice and beautiful in the city. here are the futures at this

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the rockefeller center christmas tree is heading to new york city. workers cut down the 85-foot

tall norway spruce in central pennsylvania. a crane that hoisted the 13 ton tree on to the truck for the trek to midtown manhattan. tree will be lit december 3rd. you will be able to see all the festivities only on the network known as nbc. >> it's been great having you here today. >> qe is alive and well. you might not like the way it looks or smells, but it's here. >> check out the futures this morning. dow futures up almost 70 points. all what we heard out of the ecb. continue to follow this on "squawk on the street." have a great night. see you here, everybody. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim

cramer and david faber at new york stock exchange. utilities and transports, futures steady here. nice morning shaping up on what is truly a mixed bag of earnings today. tesla, whole foods and cvs. jobless claims nice and low at 278. crude oil giving back some of the gains up