good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. 7 million people are under winter storm warnings throughout the upper midwest in the united states today. the frigid temperatures are expected to reach the east coast later this week. we'll have a live report from the weather channel in just a few minutes. first, bad news out of hawaii. that river of molten lava has finally consumed its first home. there's never been any doubt about how hot lava is, but check out these pictures. the lava completely incinerating this home. plumes of smoke could be seen for miles. corporate news for you this morning, this one surprising me, joe. microsoft announcing its first lumina smartphone without the nokia name.

now the tech giant is dropping the nokia brand title months after it completed that transaction in its hand set business. so there goes the beginning of the end of nokia. separately, ford will begin production of its resigned f-150 today. the vehicle now has an aluminum body and the f-150 has been the nation's best selling vehicle for 32 straight years. we'll see whether they can keep that up. fill lebeau will join us with mark field at 7:30 eastern time to talk about it. and june per network's ceo is out. he quit following a board review of its conduct and negotiation of a customer. the network gearmaker says they won't impact the company's finances. shares of juneiper up 13% in the last month. you haven't looked into that? what are they talking about >> i cannot give you can explicit details. i have done a little bit of work, but i don't have enough. >> is it explicit? >> there's things that were said

to this customer, but i don't know enough -- >> but it's not explicit? >> i don't believe so. >> okay. why the nice music today? >> it went from scary music when you were talking to nice music when i was talking. >> we need the scary music. no, put it on. we've got obamacare for the internet going for us today. andrew, other than the 90% -- what was the other thing we talked about that you were so happy about? the other day when -- oh, that was -- never mind. never mind. but this is big for you. this is big. >> net knew translaneutrality. let's regulate another federal power grab. >> here is what i don't understand about that. i thought the fcc was stoved to be an independent agency. isn't this akin to the president telling the federal reserve what

to do? >> kind of. three democrats and two republicans. so -- >> wheeler has already been -- they've walked him back big time. i was like full on, you know -- but honestly, that confuses me. isn't this the akin to telling janet yellen what she needs to do with the federal reserve? this is supposed to be a free agency. it has three democrats on it. >> and he can give tom wheeler to give political cover. >> but the s.e.c. role is supposed to be independent. i'm not saying it's right or wrong. >> this seemed to me, when i tried to put it in the context of saying something like this for the federal reserve, i thought, wow, people go crazy over this. this is an independent agency. >> and the journal has a great piece. not only that, but the rules that we're talking about implementing here under the act of 1934 were obsolete in 1930. they were written in 1887, too, for the framework for the

railroads. the interstate commerce. it's going to be like water. >> can i ask you a question? >> no. i've -- you ought to be able to figure out -- >> why did the "new york times" is for it and if it's the anti-private sector. let the markets work. let the markets work. >> you know what? i don't care what you think, andrew, on this. i don't. you have your opinion. on 100 percent of what we talk about, i disagree with you. >> i would like to deregulate the entire piece -- >> no, no, you can't -- >> yes, i can. >> no, you can't.

>> you argue with other people like this. i'm exhausted. >> you just -- on national television -- >> i'm going to make the to you. >> i don't want to hear it. >> okay. you don't lisp. i'll listen. >> okay. you listen. >> this is a discussion we had in the makeup room this morning. >> i'm exhausted. the -- there is a one-man wrecking crew. >> the market is not currently free. it's absolutely free. appeared rue, this is going to make it -- >> for the most part -- >> monopolies, because the municipality and the government has given them that monopoly. so as long as you decide -- all i'm saying is if you were willing to have every municipality in the country open up their lines and saying, you know what? whether comcast or charter or whoever, you can have any --

those providers with that right now. if they build something out and spend billions of dollars, they build it out, they're allowed to charge what they need. >> andrew, this is not even a utility at this point. right now, for my water, if i use more water during the summer months, i pay more for it. what you're talking about is everybody can have a plate rate fee. if you were to compare it to a utility, just like the phone, you can no longer sell a flat rate per month. you're going to have to pay for what you download. but that is part of what this is. you should be able to -- >> so they -- >> the plan would treat cable, telephone and wireless, common carriers, subject of federal price controls, a myriad of other -- >> like telephone companies, broadband providers will be able to file a tariff for the commission so that mountains of paperwork ask the government to improve the prices they intend to charge for the services.

>> so hold on. what i just said to you is different. >> then the federal -- >> they would consider. >> the bureaucrats -- >> but let the competitors come in. >> but it's too much for the ones who end up paying for it. if you are a consumer, you are no longer going to get a flat rate fee. >> so more paperwork, then you ask the bureaucrats -- >> you're argument is you're making things better for consumers. i don't think you're going to. >> i'm sorry to do this on a cable network on a network that's owned by a cable company. >> wait, wait, not necessarily -- >> how is it possible that cable in this country costs so much more, multiples more than it does in most country necessary europe and most countries in asia? >> prices. >> excuse me? >> why do gun prices cost more in this country? >> because there's controls on them. look, there's competition in those other places. that's why it's cheaper there. >> so i don't think any

technology is expensive. i don't think long distance is expensive. i don't think what i do in the smartphone is expensive because comcast pays for it and i don't get any own bills. but the bureaucrats, would they consider which prices are fair? so you're going to submit all this paperwork. i'm saying whether you can expand to build the digital network. >> open it up, allow other competitors to come into the marketplace. >> you're arguing the existing cable companies should have to carry google or everyone else and say build your own line. you don't agree with anything these other guys wanted to do, which is use the existing infrastructure. >> no. google fiber and others are

build it themselves. >> they want to use the exiting telephone lines that are there. >> do not use the line. they want to have the -- no, they want to have the same rights of way. given the same rights of way -- >> that's not what it comes down to. >> and you're paving -- >> for a set price? >> a reasonable price that the government sets, let them -- gave them the roadway to begin with for free in most cases. >> i don't think anybody here is arguing that you shouldn't -- >> no, i'm -- >> it's going to create a huge -- >> i'm saying open it up. >> you never argued to open it up. >> i'm not even listening to that part of the argument. >> a bipartisan consensus has

allowed the internet to grow unobstructed. now you want to create a huge bureaucracy to consider every single move that these companies make and file paperwork and tariffs and set prices and give the go ahead or not the go ahead on building out digital. >> all i'm saying is you open up the markets or you decide there's some form of regulation. you can't pretend that you're not regulating it when you are. everybody who is in this business right now effectively is a government sponsored monopoly. >> what can we do for you to not -- >> that's what it is. >> to not allow a government to basically obamacare for the internet? what can we do to satisfy this small piece of the competition that you want? >> create some form of competition. >> and then leave everything else. >> they can pay whatever they want to pay, what everybody pays. it doesn't matter.

>> that specifically is what president obama has said he does not want. >> and i'm agreeing. i'm saying you can do this as long as there's more competition in the space. >> i think everybody is arguing different points here. everybody is talking over each other's head. i don't know how that matches you against -- >> no, i don't. >> i told you i wasn't going to be involved. by definition, you're on the wrong side of this issue. the "new york times," the left wing government, look at who you're keeping company with to decide what is going to be pro business and what is not going to be pro business. >> i would think you would think business should be pro competition. >> think about china which is now more capitalistic than we are. >> we'll see about that. singles day in china is the biggest day for retail online.

eunice yoon joins us with more on this t traffic. >> having a very passionate day about the internet. i think over here, people are just generally in consensus about what's going on right here with alibaba. generally, everybody is excited. for the past 24 hours, they've been keeping an eye on the clock to see how the sales are doing. you know, we've got five hours to go before everything sets down and pretty much we're at $7.5 billion in sales already. that already exceeds last year's 5.8 billion and it shows that the company is either going to meet or beat the expectation that it's going to clock about $8 billion in sales on this day alone. now, this day, singles day, wasn't always commercial. it's generated by the fact that a bunch of college guys got together and decided that they

wanted to celebrate single life on november 11th, which is 1 1-11. so you've got four singles together and it's become somewhat of an anti-valentine's day. people started to buy gifts for themselves and then it became a big consumer holiday. so now the company like alibaba has helped to make the commercials, they've been pushing a lot of discounts. everybody today has been pushing about the great starts, bargains, from the retailers. in fact, jack ma himself has said thank you to all the shop aholics for contributing to china gdp. he's made some other comments through a chinese state broadcaster where he said ali beside pay is definitely going to go public, but that he hopes it's going to happen on the mainland. he didn't give any details on the timing. he did say that he was a little regretful of the fact that

alibaba had to list in new york instead of in china. however, if there is enough states in alipay's business, there's probably going to be quite the bit of demand for that company. guys. >> thank you for that, eunice. we should tell you, as we did before, tune in to "squawk on the street." david faber has an exclusive interview with alibaba's founder, executive chairman jack ma. that's happening this morning at 10:00 a.m. eastern time. all right. bond market is dark in observance of veterans day, but the stock market is open for trading. stocks open modestly to kick off the trading week. but that was enough for the dow and the s&p to close at record highs. joining us is richard steinberg, officer of steinberg global management and steve freedman at ubs wealth management service. it was kind of a -- we're still making advances, rich, but they seem more strange at this point

and almost seem like more fewer issues are helping us set newer highs. is that fair to say and do you expect that to accelerate? >> yeah. i think, you know, we've had the swoon and then the rebounds, joe. now that earnings season is pretty much done for the third quarter, 77% of companies beat estimates. 60% beat revenue growth. and that is higher than the trend of 73%. and i think now the risk/reward is pretty much baked into this market being somewhat even. we've gotten to an equilibrium. the only way that we can really start to move forward is if earnings start to reaccelerate again above the $130 for this year. and so we think that the market probably needs a rest again before we go higher. >> where are you right now? >> i tend to agree. like now, it's going to be more of a grind higher, driven by the general trajectory of earnings. our view is that overall over the next six to 12 months, we will have enough earnings growth

to post high single digits capital gains in the stock markets. but not the type of continued rebound that we've seen since mid october. >> what could be -- what could be a negative? could it be that either europe or china or a general unexpected slowdown in the u.s. economy? can we just write it in the books that we're a 3% economy now? >> that's our baseline. the expectation, you can always be surprised there. the wild card really is europe at this point. that's the single biggest uncertainty, i think, in terms of the global economic growth trajectory. our view is that you're seeing within a slow growth context, you're seeing little shocks creating these scares in the eurozone that obviously you won't fall back into a recession. >> rich, what do you think went right for the u.s. economy this time around and there's not going to be a swoon? the unemployment rate got down to the point where we can reach -- we're no longer at stall speed where people are

worrying about losing their job, worrying about not being able to pay their bills so that -- you know, we've had two or three periods where all of a sudden we just went back into a slowdown. you don't think that is going to happen this time? why not? >> i don't think so. a couple reasons, joe. with borrowed oil, $30 from its highs in june is creating about a trillion dollar stimulus for the global economy. so i think the real key in terms of job growth has been good, but wage growth hasn't really picked up. so we're in this period of kind of limp along growth with rates as low as they are. you're now going to get into i think a new debate, joe, which is have oil prices fallen enough and gas prices to help stimulate the consumer, will that outweigh the strong dollar risk to overseas earnings for large multi task cap companies? when you have those kinds of push me/pull me kind of situations, you end up in a grind higher because rates are

low or you could have a little bit of a set back here. so if we do move higher going into the end of the year because people get -- robbing peter to pay paul for next year's return. >> all right. so where do you have for next year, the end of the year on the s&p, rich? >> right now -- and i always tend to be pretty conservative in these numbers, joe. right now at $130 in earnings, i am at a 16-year multiple. i am concerned about europe. i am concerned about the capital crazy characters in the world. so i'm still at 2100, which only gives you about 3% plus plus 3% in dividends amid 5% return for next year. so i'm hoping to get a 3% back so people can redeploy some cash on the sidelines to have a better total return going into next year. >> did you miss the last pullback? >> no, actually, the last time i was on we just -- >> you want another one? we just had nine.

you're trading too much. >> i think it's healthy. no, no, actually, we're not. i think the key, though, is that investors, it's not healthy to have a straight up line because then when you have a shock, you get these swoons like we had in october. >> where are you next year? 5%? i'm going to stay home. >> we're seeing 7% to 8% earnings growth. we think that's going to dictate the pace of capital gains. >> and no multiple schangzs? >> no multiple expansions. >> we'll find action in some other markets maybe. steve, rich, thank you. i want more. i want more. but why would we get -- >> you can't always have more. >> i know that. i know that. we need some cooperation with the other powers that be to unfeter, unregulate -- >> by the way, joe, you won that last debate with andrew, i'm just telling you. >> oh, geez. >> i don't see how picking one -- i don't know. >> so you take the whole

industry under government watch because -- >> no, i don't want to put anything under watch. >> that's where i don't even understand. i think you guys are talking over each other. i got lost over what the debate is between. >> i'm saying open up the market. that's all i'm saying. i'm saying you want true competition, you want a marketplace, open up the market. the reason our cable cost res higher is a function of the fact that there's not competition. >> build it yourself and spend whatever you want here or by saying that these existing businesses that have built up business on this need to share or allow you -- >> no. you need to effectively provide what's called franchise rights and rights of way and other things which traditionally most -- have not and, of course, the companies that are already there have fought against. that's what happens. it's -- it is what it is. >> that's not even -- that's a totally different issue than what we're talking about here. someone in one of your meetings at the time told you this?

>> coming up, president obama in china today meeting with world leaders. we're going to tell you about the exchange with russia's vl vladimir putin. next, the pot debate, why new york city plans to stop making arrests for minor marijuana possessions. "squawk box" returns in just a moment.

president obama and chinese president xi jinping meeting today. susan joins us. good morning. >> hey, becky. this is what happens when you lock leaders into a compound 50 kilometers away from beijing. you have a group discussion and hopefully you get things done. we did have president xi jinping having a walk around, kind of like what happened in california with the u.s. president barack obama. the most significant meeting that we can confirm, in fact, both sides have confirmed today here in china is that the russian president, vladimir putin, did, in fact, speak to u.s. president barack obama. both sides not giving us much details. we don't even know what they talked about. but there is speculation that maybe this has to do with the ukrainian crisis and the sanctions. in china, talking about maybe trying to ease tension some say is the second coming of the cold war. again, we don't have specific details on what the two had to

say. but there was a sigh of relief here this year at apec with the falling of tensions between the two largest economies in the asia pacific, between japan, with shinzo abe in attendance and chinese president xi jinping finally shaking hands for the first times since both went into office in 2012. even the japanese prime minister in his closing comments saying china and japan, they need each other and hopefully they can put hostilities between the two behind in the past. hopefully they can move together in the future. trade is a big topic here. there are two competing trade pacts on the table. u.s. president barack obama is trying to push the pint point his pivot to the asia pacific. but it looks like china is claiming victory with chinese president xi jinping saying they

are going to stress this two-year negotiation in the trade pact. back to you guys. >> i know this was a thawing of relations on both those counts. but if you look at the photo-ops, no one looks particularly pleased to be in this position. i guess these are baby steps. >> yeah, these are baby steps. you are absolutely right. they've shaken hands three times and each time, neither shinzo abe or xi jinping are smiling. when you take a look at what the analysts are saying about this, they're both playing to their populist, with both riding on these national campaigns. there is deep mistrust between the two, so they have to stick to the line to the status quo. as you see, some unhappiness there between the two. but let me show you the highlight of apec, if i can, becky. you have all 21 apec members

donning the gash of the representative host country and the monday morning quarterbacks is about the mouths that all 21 leaders had to wear. some are saying it's a bit too star trekky. why don't you guys take a look. >> i have to say, i kind of like it. and it's good to see everybody in the same garb. susan, thank you very much. >> that's right. there you go, unified. >> i've got some t-shirts that people have sent me with -- >> there he is. >> he's already in the garb in the past. i know. but in some of the t-shirt that's people have sent out in the past -- >> i have to say, i kind of like it. it's nice to see everybody -- >> the right wing has sent out photo shop pictures of the president. >> wasn't he chewing gum today or yesterday? >> the great thing is icy and frosty and uncomfortable as it is over there, he's so glad to

be there rather than back here. anyway, people carrying small amounts of marijuana will no longer face criminal charges in new york city. the mayor de blasio and police xhish 234er making the new policy, people are under 25 grams of pot will get summons and face noncriminal violations. i think -- >> that's a big bag. >> my friends told me that i think 28 grams back in college was -- >> that's a lot. look at this bag. >> do you know what an ounce of pot is? >> no. >> do you remember -- >> no. >> any of your friends ever buying -- >> no. i never -- >> an ounce of pot is 28 grams. basically, you're allowed to have an ounce of pot. an ounce of pot will last, if it's good, it will last a while, right? sorkin, you've definitely smoked some this morning. no, huh?

>> not this morning, not this morning. maybe a little from last night is wafting through. you dropped the matches, actually, rather than just -- anyway -- >> we're calling this mushroom day. >> mushroom day. >> i don't know if we all agree on our drug of choice this morning and have a sip of coffee. >> you think things aren't free enough yet, so you want to just make them totally regulated. so every aspect -- >> no. i want to open them totally up. >> you're reducing -- at this point, haven't we seen a lot of competition between phone and cable and wireless companies that have driven speeds faster, driven prices down? hasn't it all been on a relative basis for the comp decision? >> move to europe if you love it over there. it's a little bit cheaper cable over there, do you know? >> cable is better. >> what is it about -- go over there if you want to live there. i don't know. you like rich, creamy sauces?

>> i like it here better, where i can sit next to you every morning. >> we're going to continue this conversation. when we come back, it is the nation's largest online retailer of home furnishesing. what can wayfair tell us about the u.s. consumer, the housing industry and the broader economy? we'll have the ceo right after this. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind.

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good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. among the buzz stories of the morning, the nation's richest oil man has been ordered to pair nearly $1 billion to his ex-wife. continental's harold hamm on weeks ago. this finalizes the split. it could make her one of the wealthiest women in the united states. but the amount is smaller, believe it or not, than her lawyers had been seeking. and the divorce won't force harold hamm to actually sell any shares of the continental. >> i think the first payment is something north of $350 million at the end of the year and then he pays $7 million a month for quite a while. >> no, that wouldn't -- because he pays $995 total. 700 and what? >> $700 a month.

>> not a year, a mop. >> $360 million -- it was north of $350 million due at the end of the year, and then he pays $7 million a month. harold hamm, who was just on the program recently, you look at oil prices, all the oil company stocks have dropped because of a decline in oil prices, too. >> it doesn't really affect business news or anything we do. it's just the personal lives get fun when there's billions involved? >> no. it would have gotten into it if he was forced the sell shares of continental. then you're looking at a business story. >> how much do you think they fought over the last $5 million just so he didn't have to have the headline to say that he was paying $1 billion? >> how much does the lawyer -- >> take? >> yeah. >> ooh, that's a good question. it depends on if they're working on a contingency basis. >> i would guess hourly. >> no. >> yeah, if you've got the money, you pay hourly.

you don't pay on a contingency basis. >> yeah, but he wants more than -- right now, we are getting to the point writ doesn't matter with business new. >> no, that's the only part that's interesting. i mean, what, do you want to find out why they got divorced? >> no. >> it's the personal life of some guy. the only thing interesting is the money involved. >> i guess we can look and find out what the lawyer made. anyway, why don't we take a look at the morning's stocks to watch. shares of see czesar's getting hit hard. cutting about half of the rigs that it planned to operate next year. they cite the slide in oil prices and hertz says it will delay its quarterly reports. also, take a look at rackspace.

>> reporting third quarter results after the bell. they beat street expect ages on both the top and bottom line. this is the first quarterly report since going public in early october, wayfair is the country's largest online marketplace for couches, lamps, you name it, they sell it. company shares are down about 557%. joining us now is the ceo and cochairman and co-founder of wayfair. thank you for joining us this morning. >> morning. thanks, andrew. excited to be here. >> this is your first outing, if you will, in terms of earnings reporting to the street. you did beat. but the company is still losing money. so the question becomes at what point does that number reverse? meaning when are you going to start making money? >> sure. the thing we're focused on right

now, the homegoods market is such a large market and it's just shifting online right now. so despite our scale with over $1 billion in sales, the direct retail business is growing, this quarter it grew over 57% year on year. we're up to 2.9 million active customers. we think that's great investment. >> do you think that sha shareholders and investors are going to give you the same respect and maybe leash that je jeff besos has at amazon? he doesn't always make money early on, but pushing on revenues and customers as you are. >> amazon has done an incredible job. i think they earn the support that they've been given. the way we think about it is we're in a big market, we've been at it 12 years. and there is a huge runway.

so i think what investors get excited about is the focus we have, the excuse we've provided and basically the vision we have and a belief that we're going to get there. and so i think as long as they believe in it, i think we'll have a lot of good support. >> you consolidated some 230 websites recently to create what now is this wayfair brand. how much money did you have to spend in terms of marketing so that people know that wayfair is around, it exists and what it stands for? >> you know, what is interesting is we only finish consolidating the sites into wayfair two years ago. we launched the wayfair brand three years ago. it's two years ago this september that we actually started the brand building for wayfair. despite that, inside two years, we got to over 52% aided awareness. we believe that still has a lot of room to grow and it's growing really fast. so i think the strategy is working well and i think that's why, you know, frankly, because a lot of people are excited about what we're doing. >> in terms of the competition, why would i buy from you as

opposed to, for example, amazon? >> so the trick in home goods is that you want to own something unique relative to what everyone else you know owns. you don't want to have the same sofas, the same pillows, the same mirror. you need a big selection, but at the same time, you don't know the brand names. there you need visual browsing, you need someone to provide merchandising. what we provide is a huge selection, 7 million items, and we provide that with great imagery and merchandising and we do it for the mass market at prices that are affordable. that is what is pretty unique about what we're doing and the reason we can grow to quickly. >> when you sit around in a strategy meeting and talk about your competitors, what company do you mention? >> home is super fragmented. there's a lot of different folks to focus on when you get online. obviously, amazon comes up because they're in e-commerce. they're an absolutely huge

player. but what we've realized is that our customers are so underserved by the different market participants in terms of the mass price points backed by great election and great merchandising, we can get it simply by focusing on what else we can do for her. >> thank you for joining us this morning, nijah. >> have you ever used wayfair? >> i have not. >> i have. and after using it a couple of times, i've trusted that what i see is what i'm going to get. >> what have you bought? >> i bought something a week ago that i haven't gotten yet. so i can't tell you yet because it's a surprise. i've bought rugs there. >> thanks very much. coming up, a small success story. one entrepreneur sold mark cuban on a retail idea and got a big investment on return. and a quick check off what's happening in the european

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woish welcome back to "squawk box." it is time for the "squawk box" planner. the stock market is open. in economic news, the nfiv will release its monthly read of small about it business sentiment. on the corporate front, groupon is holding an investor and analyst day. shares are down more than 30% this year, but up 25% in the last month. that is your "squawk box" planner this morning. we wanted to bring your attention now to a worthy cause. we are auctioning off a chance to come to our set, watch

"squawk box" live, take a tour of nbc and have breakfast with us. and i've also offered -- we'll interview you, i think, we'll even talk, put you on camera. talk about where are you from, likes, dislikes, favorite drinks. >> we'll quiz you. we'll play rapid fire. >> do whatever you want to do. and you'll be the -- you know, the envy of everyone in your neighborhood at that point, i would think. it's all to benefit the lulu & leo fund, helping children and families foster kreefbivety and is build resilient. enter your bid at charitybus.com/lulu&leo. >> this is a cause that's near and dear to all of our hearts. we hope you'll give it a shot and take a look at it. when we come back this morning, a businesswoman who traded in a cooperate cubical for a chance to fool her dreams. a shark tank success story backed by mark cuban.

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welcome back, everybody. this morning shark tank comes to "squawk box." one of the success stories from the show is an online retailer called red dress boutique. it sells outfits for women at a low price point. it was founded by a husband and wife team. the business has more than doubled since their appearance on "shark tank" a month ago. they closed their deal with mark cuban. joining us now are the cofounders of red dress boutique. thank you for being here today. >> thank you for having us. >> thank you. >> tell us a little bit about the business for people who aren't familiar with it. >> the red dress boutique is for the woman on the go. it's -- we try to simplify the shopping experience for them. because as women our lives are so busy now and we're so -- we have so little time to shop for ourselves. we either have kids or, you know, we have five minutes to get ready in the morning. >> right. i wish i had my catholic school

girl uniform because that made life easy. >> didn't it? i tried to make my own issues i had getting ready in the morning trying to feed a toddler his breakfast and trying to figure out what i was going to wear. and to simplify it for the modern woman. and so i curate a full look and we market it that way. you can shop the entire outfit. of course you can buy the single piece as it is, but i know the way i get up in the morning and get ready, i have the outfit laid out. that's how our customers shop. and they want the full outfit so that they don't have to -- that's one less thing they have to think about in the morning. that is what i think has made red dress so successful. >> how did you lure in mark cuban? >> i'm sorry. say that again? >> when you went on "shark tank," how did you lure in mark cuban? >> i think he saw we're not starting from scratch. we're not in desperate need for

somebody to hold our hand on everything. but we are seeking his guidance. the reason we went on the show is because we wanted really a partner who could help us get through some high-level decisions to get through the massive growth that's coming. >> is it true it was $600,000 for a 15% stake in the company? >> it is, yes. >> what has he done to help you out along the way? >> my gosh. mark started probably a week after we finished taping. and we taped in june. and he jumped right in. and he's so hands on. i mean, i don't think a lot of people know that about him. but he truly is and has been a great mentor. and even from the minute we walked off, he started e-mailing going, this is the plan we're going forward with. this is what i think you need to do. he immediately sent us tech guys for help because we didn't have a tech team at the time in house. and they've already been to athens. so everything he's done has been exactly what i wanted and needed.

and, you know, we've got a process going forward on how to, you know, in stages how to help the website and get it a lot better moving forward eventually to a brand new website. and all of that has to come in stages. >> what's it meant for traffic? when you're on "shark tank," that is a huge ad kind of announcing your business to the world. >> traffic has been huge. i mean, even with everything we did, of course the site promptly crashed. it went, like, a hundred times higher than anything we've ever had in the past. >> and that was after you'd already hired like 25 or 30 people to beef up for it, right? >> right. we have 75 employees now and we're still hiring more. they were all excited. the site went down until 3:00 p.m. saturday afternoon. because, you know, it air s on the east coast before the west coast. when it did come back up, we had close to 10 million page views just in that short amount of

time. >> what's it meant for sales? >> we did a little over a million dollars in less than six days when it came back up. >> wow. everybody is wondering what comes in the box when it arrives. we have some of the clothes on the set with us. what will people see when they order from you? >> you get it wrapped up like a present to yourself. women being busy, we're taking care of other people, our significant others, our children. so when we shop, it should be a present to yourself. they're few and far between. so we wrap it in tissue paper. we put a handwritten thank you note in it. we have now stay-at-home moms and we have a leukemia patient that write our thank you notes for us. and those go in our boxes. we try to package it so it's merchandise the way it's supposed to be. and it comes in a box that has our logo on it. it's just beautifully packaged. so you're getting that high-end

shopping experience at a fraction of the price. >> diana and josh, thank you both for being with us today. >> thank you for having us. >> we appreciate it. be sure to watch cnbc tonight. six hours of deals kick off at 8:00 p.m. eastern time with back-to-back episodes of "shank tank" followed by "the profit." coming up, alibaba's record-breaking day but first ford's aluminum f-150 ready to roll off the lines. one of the biggest changes the automaker has gone through. we'll talk to mark fields first on cnbc at 7:30 eastern time. we're back in a moment. will that be all, sir?

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

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investor reaction straight ahead. behind the wheel with ford. the new aluminum f-series pickup truck. the ceo joins us live from the assembly line. from wall street to sesame street. the iconic children's television show celebrating 45 years on the air. how the sesame street gang keeps up in the digital age. >> it's grover! >> and elmo! >> we are so excited to be on cnbc. >> "squawk box" begins right now. ♪ no, it's not sesame street. this is "squawk box." welcome back, everybody. i'm becky quick along with joe kernen and andrew ross sorkin.

elmo and grover are here in the building. they made it all the way from sesame street to celebrate their anniversary with us. and you never know what these two are going to say, but we have a list of questions ready to go. check these two out. they are upstairs in the cnbc board room. we are so excited to have them here. they're going to be joining us in about half an hour's time. meantime the singles day shopping frenzy is breaking records for alibaba. with just a few hours later, the site has registered over $7.5 billion in sales. that's right. $7.5 billion in a single day. last year it took an hour to hit the $1 billion. this year it took just 18 minutes. let's check out alibaba's shares. they were down by about 2%. $117.16 was the last trade.

quick programming note for you, david faber will have an interview with the chairman jack ma. president obama opening up what will be in-depth talks with the chinese president. joining for a walk and talk on the summit in beijing. the white house saying the president also spoke to russian president vladimir putin three times at the summit. they talked about some tough issues including ukraine, support of syria, and nuclear talks with iran. also hertz is delaying its quarterly earnings. they are in the process of reviewing their internal process for the past three years. doesn't know how the view will look at their results. former ceo stepped down. the bond markets closed today. but the action picks up again

tomorrow with the second of three treasury markets. here with us to break down the bond market action is john beinner. he is cio and head of global fixed income at goldman sachs. he oversees more than $600 billion in assets. you're feeling a little better, maybe, at where we are now. how high to rates have to go to be where you thought they'd be at this point? i hate to keep harping on this. >> that's all right. last time i was on, we said we were going to hit 3% before we hit 2%. we're not admitting defeat yet. >> no. but the reality is the u.s. economy is on pretty strong footing. we've accelerated and we continue to see that.

jobs tonight to be added if anything at an accelerating space. the fed is seeing this and they're going to start to raise interest rates next year. and we just think the market is not up for that. >> is the bond market big enough what would be an arbitrage trade. where you have the rest of the world at lower rates than us. why should we go up? who's going to buy? >> that's the thing. first of all, it's not arbitrage. right? so there are real differences from a fundamental perspective. inflation here is obviously not going out of control. but inflation is looking like it's accelerating. the rest of the world it looks like inflation is decelerating. so it's not an arbitrage. yes, there's higher yields here. but you're talking about buying into taking on currency risk. if it's not your domestic markets. yes, we think the dollar will continue to appreciate. but it's not riskless. if you're sitting in germany and

all your assets are in euro, it's a risk for you to go out of the home market. yes, there's going to be capital flows into the u.s. but if the fed is starting to normalize rates because we're starting to see some froth in the economy and even more so in the capital markets. then are you going to be buying ten-year notes at 2:35 when the cash rate is going to hit 2% in not long a period. >> it seems we continue to attract funds here with higher rates. and the more we attract, the more demand there is. and that bolsters prices here. >> there's no question. i think there will be flows into the u.s. market and i think that means the term premium will probably stay low for some period of time. >> don't you make money on that too? >> you do. but it's not arbitrage. it's still a risk, but it's one, i think, we do think the dollar will continue to appreciate.

but the offset to that, remember, is qe is over. and we like to think of it as we don't have quantitative easing now. we started quantitative tightening. >> you would concede that fortunes around the world make it unlikely that the fed needs to act really quickly to play catch-up. there are other forces. >> there are always other forces. and yes, the fact that the rest of the world is not going -- is not at above trend in terms of its growth does mean that the fed probably has to do less. but the reality is that the u.s. economy is still a relatively secluded economy. very important trading partner to our partners. but we had a very important domestic economy which is going very well. so the fed is going to see that. while wages haven't started -- you know, they started at the margin to accelerate a little bit. it's been like watching paint dry for wages to go up.

but we think once you get into that 5.5% unemployment rate which now we're close to, that's generally the time you see wages accelerate. that's what the fed expects. so all the things you're mentioning are in some sense helping the fed do their job. but if you get too much capital flows, you get capital markets appreciating too much. that actually could be -- that could create a bubble that the fed would want to avoid. >> so do you think the moves in the dollar have already discounted rates headed higher? the first of that anyway. is the dollar trade still good? >> we think it is. it's both what we're doing here and what's happening elsewhere. so you think about the yen. yen's moved a long way. we think it will continue to weaken. you have both the combination of very easy and becoming easier policies in japan and as we've been talking about, more likely

than not, more tighter policies in the u.s. so you could see that as a double whammy. and obviously the markets have already moved to price allow that in. we think there's probably more. >> all right. thanks. we'll be back again and we'll talk. becky what exactly is the 10-year today? >> wait until it pops up again. >> 235. >> so what's the bet? >> i just want to know -- i'm going to watch it. you said 3% -- >> by year end. >> it's good advice. >> that's a tight range, but i'll take that. >> pick direction. >> i do want to know that.

>> i'm an interviewer. >> so am i. you had to pick -- >> i always thought they should go up. be going up. but i totally didn't take it into account that everything is local now. >> now you can claim you're right no matter which direction it goes. >> pretty smart, isn't it? no, i don't think anybody anticipated that even italy and spain would be competitive. >> no, this year has stunned me. >> and you realize the pressures from abroad didn't affect as much in year's past. >> certainly the economy and particularly the financial markets have become more global. so they're more linked. and yes, there are abilities certainly banks if they want to own other currencies. obviously the dollar is the dominant. but in prior years they've been moving away from the dollar. now starting to come back with the higher yields.

>> i don't know whether it's the globalization or information or the importance of central bankers in all of our lives around the world now. >> joe, pick a side. >> pick a side. >> i'm just -- did you hear all the things i just said? it's impossible to pick. do i think rates from here are going up or down? i'd be an idiot to say -- >> they're going go up, but the question is when. >> to go to 3%? i'd rather pose questions. >> 3.0% by the end of the year that's a bold call. >> by the end of this year is look k like a heroic estimate. i think we will hit 3% within a year from now. it wasn't that long ago we had a 3% 10-year note. we're going to talk weather now. the first major winter storm of the season hitting the midwest hard and the rest of the nation bracing for more of the same. the weather channel's mike seidel joins us now from forest

lake, minnesota. good morning to you, mike. >> good morning. the one thing the rest of the country will not get is the snow. we're getting the tail end of the storm. north of here they've had as much as 16.5 inches of snow. temperatures the big story too. for the next two weeks at least it will not get above freezing nap will be the second largest stretch in november. the average high here is still 44, 45 degrees. we have a light coating of snow, a little slush out here because they were heavily salted yesterday and plowed. temperatures this morning around 20, 22. the windchills are running in the high single numbers. but as we go towards the weekend and early next week, we'll see lows dropping maybe below zero for the first time in november in the twin cities in 17 years. and highs will stay in the teens to near 20, more like the depths of january. rest of the country the cold air is driving south. it's now through the arctic

front. it's now through dallas. temperatures have dumped about 30 degrees in a few hours. yesterday we found one town that saw their temperature drop 22 degrees in 6 minutes. a big drop of the temperature for 2/3 of the country. back here, snow's going to stick around. i was reading about 1940 they had a blizzard on this day, november 11th, and the ground was covered with snow for the next 144 days into april. we're not sure if we'll see the grass here for a long, long time. andrew, becky, and joe, back to you. >> thank you, mike. >> 144 days? >> hopefully that doesn't come here. coming up next, this veterans' day how one organization is helping those who served our country find jobs and launch tech start-ups. and ford's big gamble with its top-selling vehicle. the aluminum f-150 rolling off the assembly line. we're going to be joined by ceo

mark fields at 7:30 a.m. eastern time. phil lebeau has that interview. and check out the futures right now. dow looks like it would open up 17 points higher. s&p 500 up about 3 points. and the nasdaq 5 points. we are back in a moment. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. e financial noise financial noise financial noise

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welcome back to "squawk box," everyone. let's take a look at the futures this morning. you're going to see that right now things are looking slightly higher with the dow futures up by about 15 points above fair value. the nasdaq up by 6. microsoft announcing its first lumia smartphone without the nokia name. dropping the title just months after it bought the company's handset business. it is veterans' day. right now we want to take a moment to remember those who have served and sacrificed for this nation. we also want to highlight companies that are helping veterans ease the transition back home. we're looking at veterans in the technology industry. >> good morning. forget the stuffy job fairs we usually associate with hiring veterans. i spoke with vets in tech who are puts vets' tech b skills to work.

it was founded and hepping vets with reintegration services. the group focuses on the three e's. education, entrepreneurship, and employment. vets in tech has near 4,000 members nationwide who want to be their own bosses. >> about 45% of veterans would prefer to start their own business. they are not afraid of risk because, you know, they've already faced the biggest risks out there. >> donald coolidge is one who started his own. he said his time serving helped to prep him for the start-up world. >> technology is a great space to be in. it's growing fast and it's a good paying job. but it's looking for critical

thinking skills, ability to make quick decisions, work under pressure, and being part of a team. >> last year the overall unemployment rate for vets was at 6.6% and that's down from 7% in 2012. back to you guys. >> thank you. coming up next, a giant-size robot. i always so robot. it's brought to you by google. we have some details of this big hunk of metal and software. saw a preview for a movie coming out where you fall in love with this artificial intelligence. >> a new one? >> yeah. and new pot laws for new york city. "squawk" will return in just a moment unless we forget. unless we space. (receptionist) gunderman group.

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welcome back. google's robotic division is very busy with its latest creation. meet atlas. this is a 6'2," 330 pound robot built by google's boston dynamics. check that out. he's doing the crane position from karate kitd. it even has software to drive a car. it's strong enough to climb and also includes cameras and a laser range finder to see where it's going. still unclear if he can catch a fly with chop sticks, but he's working on it. >> it's unbelievable. in other google news, the tech giant signing a 60-year nasa lease. going to bay a billion dollars in rent over the period for a historic navy air base. the company plans to renovate one of the huge hangars and use them for space exploration aviation and robotics. and people carrying small amounts of marijuana u in new

york city will no longer face arrests. under the new policy people under -- people with under 25 grams of pot will get summons and face non-criminal violations. coming up, ford goes tough. tough aluminum, that is. the first f-series trucks rolling uf the assembly line. phil lebeau is there with mark fields. we'll see how this will impact sales. and then next, sesame street comes to "squawk box." so ally bank really has no hidden fees on savings accounts?

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welcome back to "squawk box" this morning. among the stories front and center right now, best buy announcing to open at 5:00 p.m.

on thanksgiving. they plan to offer door busters including a 55 samsung l.e.d. smart tv. also mcdonald's recalling a happy meal toy for a choking risk. parts of a hello kitty themes whistle can detach and be inhaled. and the protection bureau plans to unveil new rules for prepaid debit cards. and the new york doctor who has been receiving treatment for ebola is getting out of the hospital today. that's great news. dr. craig spencer had been working in west africa treating patients infected with the virus. he returned home and was monitoring his own health when he came down with that fever. spencer was treated at bellevue hospital center which announced he is now ebola free. >> so no one else that he's come into contact with -- >> remember the girlfriend, all the -- he went to the bowling alley, subway, uber, none of it.

>> have we passed 21 days? >> i don't know. i assume it is close if he's gone through the worst of it. >> the nurse who was in maine is now passed her 21-day period. >> right. and she's leaving maine. >> through the virus. he went through the worst of it. he already got it. 21 days is whether anyone else -- >> if anyone would have come down with it. i think it's close to that 21-day time period. that's good news all the way around. >> in hindsight now we think it's maybe not as easy. and maybe the level of panic and hysteria right at the peak where both governors decided we've got to take it into our own hands in the state. i don't necessarily blame them for that because they're thinking about their own state. but at that point we were all envisioning sneeze droplets at that point. and then you look at the way we deliver health here and dispose

of unfortunately corpses and waste and everything else. >> can i make trouble for one second? so is the cdc okay? >> no. >> remember, everybody was very unhappy with the cdc because they said it's so hard to get. we know how to handle it. i told you i was going to make trouble by saying this. >> you know the expression just because you're paranoid doesn't mean people don't hate you. >> i always thought the cdc was dustin hoffman and outbreak and everything that happened there. and i thought these guys would parachute in and everything would be okay. it concerned me to see some of the mistakes. i didn't want to see how the sausage was made in that process. that's what concerned me. let's look at the futures this morning. we have been watching the markets and it looks like the futures at least at this point are higher. dow up by 23 points. nasdaq up by 7. s&p up by 3.5.

if you watch what's been happening with the 10-year, that's the market we've been watching closely. the yield is sitting above 2.35%. i still want to go back to this issue. would yo go to 2.5% or 2%? where is the next move? >> what are my choices? >> 2% or 2.5? >> i think 2.5%. did you really think i was going to say -- >> we usually disagree, but i agree. >> all right. 2.5%. >> we hope. >> i don't know if i'd say 2.2%. okay. people at home are going, i don't care what you think anyway, joe. ford will start shipping the new f-series pickup truck. phil lebeau joins us with a special guest. i love trucks, phil. don't you? i'm like tim allen sort of.

>> hey, guys. how you doing? >> we're hanging in there. how are you? >> we're good. i've got a special guest for you. mark fields. ceo of the ford motor company joining us here along the assembly line which they're going to fire up in a moment here. huge day for ford with the new f-series. these start heading into showrooms. >> it doesn't get bigger than this for our company. it's the production launch of the f-150. ground-breaking new truck. i'm happy for the employees, the dealers, and getting these trucks in the hands of our customers. >> big question because you have the aluminum panels now, you've retooled this plant and the kansas city plant. the early question is, will it be a clean launch? what are you seeing so far in the term of your rate and where the vehicle is? >> we are absolutely where we expected to be on the launch. it's going smoothly. you can see the trucks rolling down the line here. we have a lot of innovation in this plan.

innovation around 500 new robots, new joining technologies. complete what we call close cycle recycling. so every piece of scrap of aluminum here gets recycled. >> is it going faster than you thought it would in terms of the learning curve? >> actually, the installation of the body shop went a lot smoother than i expected. and we're exactly where we expected to be on that rampup curve of production. >> we get fuel economy standards for this vehicle within the next couple of weeks, by the end of the month. everybody is saying it could be up in the 29 miles per hour highway spp that still going to be a difference maker as fuel prices have dropping, gas prices have dropped. >> well, first and foremost, what you get by having 700 pounds out of the vehicle is more capability. that's what the truck customers want. they want more payload, more towing, and more fuel efficiency. phil, if you go back 20 years, the biggest customer unmet need is fuel efficiency. so even at $1.50 a gallon 20

years ago that's what customers told us. and even today we did research. it's the biggest dissatisfier. when you combine the capability and fuel efficiency, it's going to do well. >> let's transition to large suvs. we're seeing the demand is there as much as it ever has been. we know that people back away from large suvs when gas prices spike. what happens as they're falling right now? when it's below $3 a gallon. does it bring people back into the large suv? >> i think what brings people back into the showroom on larger suvs is new product. we're launching our new versions. people are smarter these days. they know just as fast as oil prices can go up, they can go down. so they want good fuel economy. so you'll see some migration as prices go up and down. but i think customers are a lot smarter these days. >> you can't forecast where gas

is going to be 12 months from now. you do look ahead in terms of your own planning. if somebody said to you, where do you think you'll be a year from now? what would you say? >> it's a crystal ball. our view, our long-term view is over time the price of a barrel of oil is going to continue to go up. it's a non-renewable resource. now, we've seen more availability here in the u.s. in fracking, et cetera, which has changed the supply and demand dynamics. but we expect the price of fuel to continue to go up but it will go through peaks and valleys. >> we are looking at auto sales maybe going over $17 million next year do you look at this saying that's peak autos. the year after is the peak of this cycle? >> well, we could see next year 17 million. we've guided somewhere between 16.8 and 17.2 next year. when you look at the elements driving demand, you're seeing replacement demand. vehicles, 50% of the vehicles in the nation these days are ten years or older.

when you look at confidence levels, how people feel about the confidence of their employment, it's getting better. when you look at interest rates, they're relatively low. we feel the market could have the potential to go a little lower next year. even if it peaks next year, keep in mind it's a very healthy level and could go on for a number of years. >> so much of auto sales is tied in with consumer confidence. it's extremely high right now. if you've been through this business so many years, so many cycles, when do you get the feeling we're near the end of the current cycle. >> i think when you look at the current pace of economic development, it is very supportive for very healthy levels of autos. and when you look at the age of the autos, you know, the replacement demand, it bodes well. but as we look at that, we know we go through cycles as an industry. and from a ford standpoint, we're going to run a responsible business, keep our costs in line. drive growth and revenue and manage appropriately. >> mark fields, ceo of the ford

motor company. on the line as the first of the new f-series are rolling out. >> phil, thank you very much. mark, thank you too. up next, sesame street comes to "squawk box." elmo and grover are making the big trip to celebrate the show's 45th anniversary. stick around. >> "a" is for assets. >> "b" is for -- >> "c" is for cookie. >> good enough for me. >> we can't wait to talk to the "squawk box" on cnbc. >> yeah! do solemnly swear that i will support and defend the constitution of the united states against all enemies foreign and domestic... ♪ ♪

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because at scottrade, our passion is to power yours. welcome back to "squawk box." a shot of our nation's capitol right there. the futures now take a look. dow jones looks like it would open up 22 points higher. nasdaq up about 7 points. and the s&p 500 up a little over 3.5 points. it's a big day today. sesame street is celebrating 45 years.

it is the longest running children's show in u.s. television history. today it is a fixture for kids in more than 150 countries around the world. beyond that, a of the viewers watch it in digital formats and its youtube channel has a million-plus subscribers and over 1.5 billion views. that's right. 1.5 billion views. joining us now to celebrate with special guests is nadine who has brought elmo and grover along with her. >> good morning! >> hi, "squawk box." >> it is great to have you guys here. i just have to ask you. 45 years, over 4300 episodes we've seen already. how does sesame street remain not just relevant by even beloved? >> every year we're asking what is it that kids need to learn this year and what we heard this year from educators was we need to teach kids how to be ready

for school. the academics they could take care of but teach kids how to put up their hand when they want to ask a question. so we think about that problem and think about what are all the ways in which we can help kids learn the things they need to learn today. so there's so many things in our tool box these days. there's the broadcast show. there's every touch point possible. and we, you know, make a plan that lets us touch every one of those. >> grover, i have to ask you. i grew up watching you. i love you. you look fantastic. >> oh, thank you. >> how do you do it 45 years later. how does it feel to turn 45? >> me? i would not know. i would not know. no, no, no. monsters age differently than tv shows. >> like dogs? >> elmo's three and a half if that gives you a starting off point. >> you've been three and a half forever. >> it's reverse dog? >> lots of moisturizer. >> yeah. that's enough blue dye. >> and a good brush. >> guys, we should ask you for a few tips though.

grover, you know you've been doing this is long time. i just wonder if you have fashion tips, wardrobe tips. >> fashion tips. look at me. look at me. i'm not wearing anything. >> but you sometimes put your super grover -- >> well, sure. >> -- outfit on. right? >> sure. if you want to be a superhero, a cape is a good start. you know? you got to look the part. absolutely. >> dress for the job you would like. that's right. >> can you guys -- is oscar around? where is he? >> he's in his trash can. >> i know. why -- >> i can smell him. >> why is he so grouchgrouchy? is it living in a trash can? >> that doesn't help. everybody' got their thing. >> you have that nice room with the closet and everything, right? >> yeah. elmo has a nice and clean bedroom. oscar would hate it. >> but i just don't see why he's always -- i identify with oscar.

i guess that's it. >> you live in a trash can too? >> no, i don't live in a trash can. my area upstairs is a little bit did sh. >> mess y i? >> i have a question for you. in the sorkin family, we have other versions of you if you can actually believe that. we have -- there are elmos that look like you in our house. including one that moves around. how do you feel about so many elmos all over the place? >> and are you ticklish really? >> elmo is very ticklish. oh, nadine! that never gets old. >> this is a global brand at this point. have you expanded in every country you could? what are the plans for the next 45 years? >> this is an exciting week. we launched our newest co-production in the uk. and for the first time the whole series is premiering on youtube

this friday. it's an exciting week for us. >> honestly what do you see happening over the next 45 years? >> i really think we're in an incredibly exciting time in media. i think digital and particularly for kids, touch is going to fundamentally transform the way kids connect with their content. and we're really excited about turning that on and taking it to the next level. >> how much of what you bring in comes from the television aspect of it? how much of it comes from the international part of it? how much of it comes from online and how much of it is from what you make off all of us buying elmo and grover dolls? >> i mean, really, i think the business models are evolving and as digital shifts we all have to be thinking about how we adapt with that. and i think it's a really exciting time. i mean, for now it's a lot of change. and i feel there's lots of industries that have seen that change. the music industry's been through that already and we look to those kinds of industries to kind of weather the storm. >> how much of it becomes digital long-term?

>> i mean, especially for our kids because touch is as i said so fundamental to shifting their experience, i think it's going to be a powerful force. >> elmo, you guys use ipads and stuff now? >> elmo's used apps, yes. >> apps. >> apps. yes. >> do you use a tablet? a phablet? >> what do you like to play with? >> you know, i do not have a lot of time for all that. because i'm always going outside and playing with my friends. >> and grover's got like 14 jobs. >> i was going to ask you that, grover. over the years you've been a waiter, salesman, elevator operator, astronaut, superhero. which job is your favorite? >> you really did your research. >> that's a good resume. >> i just love the service industry. i just love the service industry. i love helping people. so anything in there, yeah. >> true entrepreneur. >> i heard that wasabi is your

favorite food. >> that's why elmo has no eyelids. >> it's hot stuff. are you a fan of japan? >> elmo loves japan. it's a cool place. >> what do you think of shinzo abe? >> about what now? >> shinzo abe. >> what about the massive qe recently -- >> are we going to sing? why are we here? >> hey, guys. i have to ask you. you've been working together for a long time. and obviously you are both stars in your own right. what's it like to work together and how do you make sure that relationships don't ever get frayed just because you're -- >> elmo's frayed right now. well, we have a good time. we're good friends. >> yeah. we're good friends. >> there's no arguments or anything. >> they learn about that this year. about taking turns, about how to be good friends, how to share. >> we seem to learn that every year. >> isn't that funny?

>> we've been teaching them for 45 years but we're still learning how to share. >> there is a theory that everything you needed to learn about life you learned in kindergarten. you would go with that theory. >> sure. that sounds good. >> share, cooperate, have a snack. >> smarter, stronger, kinder. those are some things we learned. how to be stronger, smarter, and kinder to each other. >> i like that. that should be a slogan for somebody. >> you would think, right? >> yeah. >> i know that the very first celebrity you had on air was james earl jones. big fan of him too. who are the favorite people you met over the years? >> we had some fun people this year. we had one direction. we had the first lady miss michelle obama. we had lupita nyong'o. >> we had gandalf the wizard. >> we had sir ian mckellen. >> i don't know who that is but gandalf was there. >> i know literacy is huge for

sesame street and that is your goal. how do you think you've changed things over the last years? >> we do research studies to check in on how much impact we've been able to have. and we recently published some of the study that really showed we had fundamentally shifted particularly in some of those countries literacy rate by, like, 30%. really powerful numbers. >> i guess that speaks broadly to what the brand does. but also just getting into children's homes, being able to meet with them. >> and i think particularly in some of those developing countries where there are kids who are not in any kind of formal learning environment that media becomes incredibly powerful. >> so here's a question for all the parents at home. how much screen time should kids have? grover, do you have a view? >> no. >> how much tv should kids watch this days or play with an ipad?

>> i think our feeling is it all depends on the quality of that experience. like if you're busy watching television with your parent and your parent can be there to say, to kind of reinforce the learning, then it's a totally different number. then it's, go for it. it's going to be awesome. if it's just the kid dialing out, i think one wants to be more conservative. >> but with elmo, you can do hours. >> honestly, take the day. >> elmo would be happy to have a play date with people. >> he's pretty entertaining, i have to say. >> could we have a play date? >> sure. what's your friday like? elmo will pencil you in. >> thank you. >> elmo, grover, you guys don't look it. you have aged phenomenally. we all wish we had monster blood in us. but we want to thank you for being here today. nadine, thank you. >> thank you so much. >> thank you. >> and happy 45th anniversary, everybody. >> thank you. >> we met grover before. we didn't get to meet -- >> totally spaced on that, i

think. >> we didn't get to meet elmo. >> it's very early in the morning. >> he meets a lot of people too. >> make sure you say hello to oscar. whatever you'd like to say. >> are you bringing cookies? who's that guy? >> what are you new? that's cookie monsters. >> it's his name. >> who's that guy? >> who's the monster that likes cookies? >> can you bring the count with you next time? we have a lot of numbers. >> before we leave quickly, can you look at the camera for a second and say good morning, kyle? >> good morning, kyle. who's kyle? >> my son. thank you. >> okay. well, good morning. >> nobody? no? >> thank you so much. happy anniversary. >> thank you. >> can we go to vegas after this? it just seems -- i guess we can't. coming up, what happened in vegas usually stays in vegas. unless your quarter results are below expectations. investors bet against you. find out how much of a hit

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welcome back to "squawk box." we want to bring your attention to a worthy cause. we're auctioning off a chance to come to our set and hang out on our set with all of us you can watch "squawk box" live, take a tour of cnbc and have breakfast with us. it's to benefit the lulu & leo

fund. building resilience through programs that provide meaningful relationships. you can enter your bid at charity buzz.com/lulu& leo. there are stocks to watch this morning. caesars getting hit after the company announced a loss. and vodafone raises its forecast. zynga up to buy. and the popularity of words with friends and goldman sachs upgraded time warner to buy. hbo is an underappreciated asset, it says. >> yeah. i'm still caught up in elmo. >> dealing with elmo, yeah. why don't we check out this

video? there's a daredevil caught on camera. reaching speeds on 220 miles an hour on his rocket propelled bicycle. the bike has pedals he uses to ride onto the track. then he ignite this pack. it took him 4.8 seconds to reach his record speed. and an emergency landing caught on camera in texas. nose gear failed to descend. the pilot made a bouncing pass on the runway. the pilot made a successful landing nose down. good news, no injuries were reported. coming up when we return, singles day shopping frenzy in china. it's almost over. and alibaba has scored big. we've got a big report from david faber from alibaba's headquarters. plus look at the stock that has nearly doubled since going public. "squawk box" returns with that and more after this. when change is in the air you see things in a whole new way.

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comcast. judith rhoden is here to talk about being strong. and a record-setting day for alibaba. david faber joins us live from china with the massive sales numbers from singles day. the third hour of "squawk box" begins right now. ♪ welcome back to "squawk box" here on cnbc. first in business worldwide. i'm joe kernen along with becky quick and andrew ross sorkin. a deer has been fried. i'm sorry. freed. after at least six days with its head stuck in a plastic pumpkin. >> oh, no. >> the deer had been spotted for nearly a week in mentor, ohio. volunteers from a nearby bird sanctuary brought nets to catch it. it was wrestled down and the bucket safely removed.

>> poor thing. >> you can imagine when you get something stuck in your teeth. popcorn or something and what that feels like. just awful. trying to drink, why did i do this. alibaba breaking records for the singles day online shopping frenzy. the e-commerce site has registered over $7.5 billion in sales. that is well above last year. $5.8 billion. david faber will join us at 8:30 we the big numbers. he's also going to interview jack ma at 10:00 a.m. eastern time. 7 million people are under winter storm warnings throughout the upper midwest. and the frigid temperatures are expected to reach the east coast later this week. we will keep you updated on the storm's progress throughout the morning. also elon musk confirming his company spacex is developing to deliver web connectivity. the development is there for

microsatellites to be used for unfettered and low cost internet access. he said there'd be an announcement in two or three months. our next guest says investors are complacent and should remain cautious in the intermediate term. continue to rise to record levels as you know. last time you were on, we had just emerged mostly from that correction. i'm calling it a correction. it was 9.9 on the s&p. there were indicators you used to measure complacency that hadn't gotten to a new place that was necessary to call a firm bottom. it was two or three weeks later. >> yeah. well, i think we're kind of back to where we were when the market first went through 2000 in mid-september before the correction. you know, you're back to where

multiples about 18 times trailing earnings, higher end of normal. i think you had about one hour of fear in that correction where on the day when it was collapsing to 1820 it was getting scary. but it didn't last long. and i -- you have -- because it came back fast, investors feel confident. i think you could argue they're more calm and confident than any other time in this recovery. it didn't solve the big elephant in the room and that is we are facing the resetting interest rates here pretty soon. and finally reconnecting them with an economic cycle rather than them being priced on the fear. i think with high valuations, sort of calm outlook about the future and facing higher rates that we probably have more turbulence. yet i think we'll get through it. i still think that both the economic recovery and the stock

market probably have much further to go and a lot longer go to over the next few years. over the next several months, it can still get a bit more turbulent. i would have a more cautious approach to this market right now. >> so, at this point, you'd be waiting for a little bit of weakness to buy more, or would you be waiting for a little bit of strength to maybe free up some dry powder for what you see coming? >> well, you know, it's been so strong. and i'm nervous it's going to keep melding up. there's a goldilocks outlook right now. which suggests we've got good growth but no inflationary consequence. feels like the late '90s in that regard. but i think we do have inflationary consequence. when we were growing at 2% with 7% or 8% unemployment, you can have a 0% short rate structure and 2% long rate structure and

get away with it. i don't think we're there. we're at 3% growth-plus. unemployment headed to the mid-5s. that's inconsistent if it continues with the rate structure we have in place. ending qe i don't think was that big a deal, but i do think resetting the rate structure is going to be more problematic for more bonds and stocks. because the long-term outlook for stocks remains good, i wouldn't pull away from the stock market. but i would diversify differently than i've done. i'd be just in more defensive sectors in the united states. like consumer staples, utilities, energy stocks. i'd still overweight materials which had been beat up. but i would put more away from the united states as well. i think there's really three strong themes in the investment community today. one is the u.s. is the place to be. another one is the dollar's only going to go up. and the other one is rates are going to stay lower for longer.

i think every one of those big, strong themes have a chance of being disappointed over the next year. and i kind of tilled against those themes. i put more offshore outside the united states. and i'd be prepared for a rate starting to rise sooner. and by more the people appreciate here over the next year. >> you're kind of this weird combination of fundamental and technical analysis. and i'm not talking about you sitting there with charts looking for support and resistance. but fundamentally, other than inflation, there's not a lot that's bothering you. you're just worried about the way people are approaching the market. and that's been one of your things for awhile. you have stages of -- you know, the depth of the financial crisis allowed us to build up a lot of fear that it was going to

take years to counteract, generations to get over. as long as they're not embracing it, it's time to buy. you're seeing that as we get to the end of that cycle. sentimentwise. >> i do, joe. i'm not saying confidence doesn't have further to go up. it does. but it's -- i feel it's just -- this is the first time it feels different. up until now, this whole recovery has been about people fearing another armageddon and way underpricing securities on the basis of the end of the world is just around the corner. and we were trading most the time at low modables. so we had investors with cheap stocks most of the time. i think that's different today. i'm not saying peak levels or anything, but it's different than it was. >> right. but because you have also been someone whenever we complained about the economy, you've been steadfastly saying that's pretty good. there are things that are -- there's a lot of positives that people are missing.

i would think at this point, it's even better than why you were bullish a year, two years ago. that has even gotten better. you're basing this totally on sentiment. >> well, sentiment, i think it's a product of where values are. if we had to face the resetting of interest rates in this country and we were still at 14 or 15 times earnings when we started to do that and we had a different investor mind set out there right now, that would be a different situation. but we're at 18 times earnings. we probably have the calmest sentiment about the future we've had in this entire recovery. and now we've got to reset rates. there's this idea that's going to be a smooth process and the fed will do it slow. in a linear fashion. it hardly ever works out that way. i think the fed's made pretty clear that they are not going to raise rates until they absolutely have to do it. and what that tells me is when

they have to do it is when there's panic in the air. and they won't do it until there's panic forcing them to do it. and that's -- when they do a panicky rate hike, that's never good for stocks or bonds at least for a period of time. i just think we're going to get maybe better opportunities to go back towards cyclical stocks. a better opportunity to come back to the united states in a bigger way. if i'm wrong, at least i'll be overweight stocks in defensive areas. i'll probably underperform, but if i'm right i think we've got a better opportunity to load it up again for another buy and hold period which i still think is coming over the next few years. so i just think we're at a different place in this recovery than we've been in the entire time. and the economy is certainly doing better, but we're getting to the point to where good news is going to start to become bad news, i think, on wall street. >> okay. what would you do for movember. would you save? how would you -- grow your ear

hair? >> i should just dye it so somebody can see it. >> how do you even keep it that length? how do you do the hipster -- and what is a hipster in minnesota? it's like some bizarre -- i mean, i don't know what a hipster in minnesota means. >> we got a foot of snow on the ground and blowing right in my face this morning coming down to the studio, i never every bit of hair i got on this face. and this is as good as i can do. >> i never heard a hipster say you bet ya or something like that either. >> not very brooklynish. >> no. do you have club there is -- where's the dark shirts? he's a displaced hipster without a home. okay. thanks, jim. thank you. gave us a lot of good -- you know what? >> he's been right. >> been pretty right. >> i follow a lot of guests on this show, but this is the toughest follow.

to follow elmo is, it's just really hard to beat that, i think. i just can't imagine beating the likability factor after elmo was on. >> i don't look at twitter. i don't like it. but i'm seeing now they're inundating my actual e-mail stuff. you get twitter. when i said that oscar was my -- kind of like my inspiration. they all think that that's i don't know oscar the grouch. they think that's funny. sort of said i was empathetic. although i don't live in a garbage can. jim, thanks. >> his best friend is a worm named slimy. he's cute though. >> i have a friend named andrew. >> ooh, wow. >> oh, boy. when we come back this morning, two power players in the world of media and finance. judith rhoden is on the boards of comcast and citi group. they'll join us after this.

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welcome back to "squawk box" this morning. take a look at futures right now. see how the market is setting itself up this morning. dow jones looks like it would be up 20 points higher. nasdaq opening up about 6.5 points higher. president obama urging the fcc to adopt strict rules on net neutrality. his take is the consumer broad band service should be treated similar to telephone and power companies. our guest host for the hour is juden rhoden. she's on the board of citi group as well as comcast. rhode season also the author of the new book, the resilience dividend. being strong in a world where things go wrong. we're also joined by dick parsons. he is the former time warner chairman and ceo as well as former citigroup chairman.

welcome to both of you. thank you for being here today. you two happen to be here on a day that we have this big news coming about what president obama has directed the fcc. judith, i know you're a member of the comcast board. we have to ask what you think about this situation in particular. >> with so much in flux and policy being debated and decided and large merger also being considered, i probably shouldn't comment. >> dick, you are here and i know that you can be a little more vocal about some of these things. >> because i'm not on anybody's anything anymore. >> right. >> you're on my board. >> well, i'm on judy's board. >> if you answer this wrong, you could be on my blank list. if you want to get on that list. >> something to aspire to. i get it, i just don't agree with it. i don't think the administration

has fully or a lot of people who are behind this net neutrality are open access initiative sort of understand how the capital markets work. they want free internet. right? but it costs money to provide these services. it costs money to have broadband infrastructure put in and made higher and higher performing. and if investors don't get a return on their money, they're not going to invest. i think it's an unintended consequence. the advocates of open access concerned, we're going to slow down the deployment around the country. >> you're absolutely right. that would necessitate -- >> i'd like to make a note of this. >> these guys are agreeing on something. >> that would necessitate the

individuals promoting this understanding that the profit incentive actually says something positive that allocates capital and to return investors as something that is essential. and the idea that another brs with tariffs and paper work and deciding prices and deciding where you can build out, this is unbelievable the idea that -- but they always have a better idea with the ten smartest people they can bring on how to do this. instead of the markets themselves. >> i'm probably not as exercised about it as you, joe. but i do agree with the fundamental terms. i mean, why do you have regulation in a market-based capitalist economy. either there are clear abuses which we don't have yet, or there's no competition. so the government has to move in. >> i think i'm probably where joe, you were where -- >> then i'm going to have to

change. stay where you are. >> i'm more where you are than you think. >> stay where you are. >> however, when people say it's a market-based economy, when you think about, for example, cable to the home, i would argue what i want to see is more competition to the home. the reason why internet is -- and cable is cheaper and faster in europe, a place where we talk about socialism is because actually they have more competition. would you be open for municipalities to say we're going give them the right-of-way to get there. if somebody wants to spend the money there. >> i watch your show. we were just talking about elon musk and they're going to have these satellites up there and have internet beaming from more and more satellites. i think there's plenty of competition. and what will bring competition, what will bring more competition is the opportunity for more return. for more investor return. right now this is not the cable business or the isp business when i first went to time warner

where basically cable was effectively a monopoly. now you've got competition coming from the sky in terms -- i'm forgetting. dish. so it's not -- are people really unhappy with requiring a level of service? not really. are there really obvious abuses? i don't see them. so notion of saying we need to treat this like a utility because it has to be available to all. how do you do that? you don't do that by taking out the opportunity for investors to put money -- >> do you think we're behind on a relative basis? >> behind korea? yeah. some european countries? yeah. are we ahead of uganda? yeah. behind is a relative concept.

>> my thought on this is -- >> i thought i saw judith nod. the camera was not on her. but i busted you. were you nodding for andrew? >> my thought was if it's a utility, i pay based on how much water i use. i pay based on how much electricity i use. does that mean eventually the way we bill consumers is going to have to change. that you don't get this all you can eat free plan that to this point a lot of cable companies have provided? >> here's what it means in gross terms. it means that the government's going to become a bigger player in terms of deciding how much to charge for whatever it is you get. >> but margins in the cable business are close to 90%. right? you do recognize that just the truth in numbers. by the way, i work for nbc.

we're a unit of comcast. i'm a shareholder in the company. i want them to succeed. but i'm just laying out the basics. >> the other place he works, "the new york times." >> however, the point is actually cable and now the telcos and the satellites have done a good job of deploying broadband access nationwide across the country. lots of money. billions and billions of dollars have been invested in this. and why? because investors see it's a place where they can get a return. and the question i would ask you, where is the massive abuse that requires further intervention by the government in terms of sorting out how this

resource gets allocated? it's crazy to not let the providers segment -- we got to talk about judy's book in a minute. but segment the way the service is. imagine if you lived in a country where there were no interstate highways and you had to go from new york to los angeles on, you know, old route 66. you had to pass through 150 different towns on your way to the coast instead of just being able to get on the highway and go. that's in part -- that's just market segmentation. >> i don't disagree with you at all. >> i have to say, this is a red letter day for me. joe and andrew. >> i don't disagree with that premise at all. all i vie for is more competition on the actual pipe. because the pipe can transmit more data than satellite or lt ever will. >> at great cost to the providers. >> okay. >> now that we've resolved that

issue, judith, what is the resilience dividend? >> if you take the premise that crisis is the new normal, that there isn't a week that goes by somewhere in the world that we don't see a cyber attack or a new outbreak of an epidemic blow, then we can't keep to the paradigm of disaster recovery and response. it's too expensive. we spend hundreds of billions of dollars every year in the u.s. on disaster recovery from natural and manmade disasters. we've got to move to a stock that is prepared. assess your vulnerabilities and make the assessment early. and we demonstrate over and over again in the book businesses or cities or people who make those investments actually yield a dividend of let's take walmart is actually preparing quite a lot now. and their plan is by 2020 that

they will increase 600% the amount of on-site energy renewable energy that they'll have. because they don't know what the next natural disaster or the next kind of terrorist shock is going to be. they want to keep their stores going. and so they're investing now getting a triple win because they're lowering their energy costs at the same time they're preparing for whatever the shock is. we don't know what the next shock's going to be, so we can't prepare for a specific one. because then we're always looking in the rearview mirror. in new york after 9/11, businesses put their generators in the basement. and then after sandy, they were all flooded. so it's not about the last thing. it's about preparing for anything. that's resilience. >> dick, how did you consider something like this when you were running time warner? or is this a much newer theory? a newer way of looking at it? >> i think and i give judy credit for this. they have gotten in front of a

ball that's coming down the lane. right? because all of the talk for so long has been, you know, what are we going to do about global warming? what are we going to do about global warming. well, one of the things you've got to do is get prepared. because it's coming. right? and a bunch of other things are coming. and so thinking about how you insulate and protect and enhance your ability to be resilient to come back from stress to come back from being knocked down is just the smart thing to do. and so in business they call it rusk assessment now. risk is all the new thing. everybody's going around not just in financial services, not just looking at credit risk but all kinds. >> black swan events. >> i.t. risks, business risks, reputational risks. people are beginning to do this.

i just think judy has captured a phrase that puts it all together in one place in terms of what people are thinking about doing. >> the evidence shows it's not a black swan event anymore. in flooding we're preparing for the hundred-year storm. but the hundred-year storm is coming every year or every five years. so that's what we want to get ahead of. the mentality that says these are random events that only happen every once in awhile. they're not. maybe any single type is still a 25-year or a 50-year, but with globalization and with the kind of supply chains that we have, lululemon, we probably use those workout pants. you remember what happened. they relied on a single -- i won't presume. >> he's wearing them now. >> they relied on a single supplier for a single source of

fiber. and when there was a problem in that fiber, they lost $2 billion of market gap, tremendous lawsuits. we know that 80% of suppliers now in 2014 say that their global supply chain is their biggest risk. that's up 50% since 2009. so if you don't diversify, build redundancy into your supply chain, this is more than just the awareness and preparation. there are actually things companies can do. >> judith is with us for the rest of the hour. we're going to talk about this. dick, thank you for joining us today. >> been my pleasure. >> thank you for telling -- for setting some things straight. >> thank you. it's very smart. >> thank you. coming up, how much would you pay for this roth co painting? a million, 10 million, 25 million. we'll tell you how much it brought at auction next.

maybe r maybe i can't see it next. it looks like a smear of red and green or something. and then david faber is in china reporting on alibaba's record sales day. and attending singles week there. we'll be right back. do solemnly swear that i will support and defend the constitution of the united states against all enemies foreign and domestic... ♪ ♪ this guy could take down your entire company.h? stay with me. on thursday a hamster video goes online.

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welcome back to "squawk box." here's what's making headlines this morning. small business sentiment is on the rise. the monthly index rising more than expected. 96.1 in october. that compares to 95.2. apple ramping up to get into the work place. hired a dedicated sales force just for that purpose trying to outdo companies like hewlett-packard and dell. and best buy is now the latest retailer to announce its thanksgiving day hours. it will be open at 5:00 p.m. local time and stay open until 1:00 a.m. many major retailers have announced at either 5:00 p.m. or 6:00 p.m. local time. of course then the employees have to work on thanksgiving. so that makes it that much more complicated.

take another look at these two roth co paintings. selling for more than expected at an auction. both paintings are -- oh, i'm shocked. they're untitled. a black cat in a darkroom. i don't know. let's look at the first one. the first one sold for $40 million. >> sunrise. >> two strips of color separated by another color. anyway, that was double the presale. the one yoour you're looking at now was sold for $35.6 million. another for sail today. and it's expected to bring in more than $50 million. i guarantee you if this guy was still alive, it wouldn't be selling for -- would it, sorkin? >> i only have a couple of those hanging in my place. so i have to think about what the price -- what the value of that would be. >> someone was here and i love

acting like what would you call, someone that doesn't understand just a -- >> a philistine. >> yeah. i love acting like one. that's what you were over there thinking. she was pointing at me. i love acting like that. someone did make a case for what they felt when they -- i can't remember the way they did it. they said they tied it to feeling brought in by society. i don't know. some ridiculous analysis of what he was saying by painting some red here. can you explain it to me? >> not at all. >> you can start. no idea? to each his own? >> this a warshak. it's a way to read into it whatever you see. >> i don't see a spider. i don't see anything there. i don't see genitals. i see nothing. what do you see there? >> i see a creamsicle. >> good. >> are you hungry? >> yeah. >> sorkin, come on.

you'll go to a cocktail party in the city soon and don't want to say anything embarrassing. what do you see there? >> some squares. looks like my kids did that. >> i know. do you remember when you used to go to the -- we had carnivals and stuff. but where you squirt the stuff on the thing spinning around. how much do those go for? how about a tie-dye t-shirt? how much do those go for? >> herd mentality. the wisdom of the crowd. >> singles day. this i understand. singles day in china. it's the biggest online retail day in the world. this year's event already setting records. alibaba will reap the benefits. david faber, probably exhausted, he's in china. he's going to interview alibaba ceo jack ma later this morning. but he joins us first. so many singles, so little time, faber. >> well, yeah. i know.

that was the case for us about 25 years ago. no longer, joe, as i reminded you yesterday. >> yes, you did. >> but there are a lot of single people here in china. there's a delay -- so i'll just keep talking. and in fact an answer to your question yesterday which was a good one, we found out there's about 250 million single people above the age of 18 in china. and there's a lot of men. more men than women. which, again, perhaps goes to why this day is so celebrated. but they're all buying themselves a gift, not necessarily buying them for somebody they see as a perspective made. but, man, they're buying a lot of stuff today. as we told you yesterday, $5.8 billion worth of goods were purchased on the alibaba platforms being the taobao

markets they run. today they marked $8.1 billion. i think it may already be $8.2 billion. and perhaps more extraordinary, they are now on track to have to ship at least 250 million packages in essentially a day. if you can imagine that. put that into comparison, they do about 16 million packages a day normally. they do represent about 54 or more percent of the overall packages sent in china. so that does give you some sense here, again, as they try to take this so-called holiday global. they are also talking about over 200 countries they have received orders from on both of those platforms of having grown enormously since 2009 when they started it as a way to at least draw some attention to taobao which was their market place. i remain not single, though, joe. and probably will remain that

way for quite some time, i hope. >> all right. david faber, thank you. 25 -- was it 25? it wasn't 25, david. let's go to 20. 25 makes us sound a little bit too old. doesn't it? >> 20. you're right. i was just being safe. >> you were. i know. you keep emphasizing that. like jenny watches. she's not watching, i don't think. she's got more important things to do. >> no. no idea. >> exactly. >> she's at work she doesn't care. >> yeah. she's at work. and has a kid. i'm looking at some rothkos stuff. we're going to talk about this. he changed as he got older. he had a lot of influences. a lot of these names i love. he went from surrealism to mythic abstractionism. and finally settled on

multiforms. which one guy looked at one of those we just saw and called it nothing short of a revelation. i can think of a lot of things short of a revelation i would call it. >> we will discuss it. >> can i go back to andrew's chop line. you talked about best buy and small business. do you know that 25% of small businesses never recover after disaster? it is the single largest problems small businesses have. and best buy came out of a tornado a crisis. they were called sound of music, a little box store. >> it's an amazing thing. people thought they were the amazon library. zblo they took all of the damaged products and set them up. they knocked down the prices to virtually nothing. and two years later they were best buy and the largest electronic retailers. you know, that mind-set that adaptive capacity, a they've gone through a lot of stuff.

amazon, all kinds of competit s competitors, some internal management problems. but they keep rebounding because they have this resilience mentality. and it's right in their dna. that's how they were founded. >> we're going to continue this conversation in just a moment. much more from our guest host today judith rodin. plus an '80s christmas classic getting a reboot. as we head to break, look at the equity futures. looks like the dow futures up by 11 points. "squawk box" will be right back.

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♪ we've got some news for you this morning. an '80s christmas standard is getting a reboot. do they know it's christmas is getting rerecorded to fight ebola in west africa. some new artist who is weren't there last time around like one direction, ed sheeran, coldplay. coming up, retailers not learning from their millions of orders that missed the guaranteed christmas delivery

deadline last year. we've got details of a new survey when "squawk box" returns in just a moment. tomorrow on "squawk box," retail detail meets earnings central. a closer look at the sector and quarterly results from jcpenney. plus 'tis the season for beer. the head of a brewery talks hole i d -- holiday brews that bring cheer. only on cnbc.

welcome back to "squawk box." shipping wars are heating up ahead of the holiday shopping season. but guaranteed on-i'm deliveries isn't to turn this time of year. according to a new survey, 20% will guarantee christmas delivery for orders placed one to three days ahead of time. that's up from 17% last year. nearly half of major retailers surveyed will guarantee orders placed by december 20th. that's up from 37% last year. what does it mean to guarantee the delivery? warned against such 11th hour delivery promises. >> yeah, i was thinking about that. there was a "seinfeld" about that too. at the rental car place. we don't have a car for you. but i made a reservation. but we don't have one. he's like, it's not making the reservation that's important. it's holding the reservation. >> it's odd that rental cars

don't -- there's no penalty. they don't take your credit card. there's no penalty involved. they don't seem to care. i never understood that whole business. >> and you are a renter. >> and i do rent cars. but you can just make the reservation and not show up. it's not like a hotel. it's very strange. banks are fighting for profits against increasing regulations and fines. more now from our guest host on what it will take to get the financial industry back on track. judith rodin is president of the rockefeller foundation. she also sits on the board of citigroup and comcast. i haven't read the book yet. one thing that always seems to happen is trying to prevent, you know, too much. when something happens, our response to it usually overshoots and we end up hurting ourselves. cutting off our noses to spite our face. >> i think that's right. 2008 was about a lot of things. but it was about a non-resilient financial system globally.

so if one thing goes wrong, it can take down everything. and that's the opposite of what we're trying to promote in resilience trat jis. when that happens, of course over-regulation is one of the responses as people get sanction. using a variety of other potential responses like de-linking the system somewhat and putting in redundancies. it wasn't about e regulations on how much cash you stockpile. it's how you build adaptive, flexible, responsive, self-regulating systems. that's what it's going to take. >> and you alluded to it earlier, it's not preparing for the same crisis to happen again. that's what we always do. what's the expression? the horses left the barn or the gates. it's already happened. but it's hard to anticipate the next one. and then you feel like you're preparing against things that

may or may not ever happen which is also costly. >> well, you have to prepare for everything. and i would argue that if you do that and you make investments that can yield benefit in the good times, that it isn't costly. that's where it is. but that's what the resilience dividend is. let me give you an example from s.a.b. miller. they were finding the cost of their water going up exponentially. they talked to the water utility and they said it was because of the dairy farmers up stream. they were clearing lands for grazing and the sediment was getting in the river and it was costing them so much more. so s.a.b. led a coalition, invested money to buy new kinds of herds that are higher producing cows so they need smaller herds. they graze differently. the water utility is saving millions, s.a.b. miller is saving millions, and dairy farmers have a better cow.

that's the resilience div depd. >> thank you. more from jew did rodin. because you're not a philistine. i'm going to call you rodan. is that good? ip next, wall street firms hiring wounded war veterans. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪

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the drexel people. good. i like these guys. drexel hamilton helping veterans make the transition from life on the battlefield to a career in finance. dom chou joins us with more. we initially had a gentleman on who was an analyst. that takes nerve leaving drexel in your name, then i found out how great. >> it's a feel-good one and one about good business. people talk about hiring veterans or training them pr. drexel hamilton is a full service broker dealer. they made a huge commitment to wall street and veterans because their firm tries to target 40% of their employment population as military veterans. they want at least 20% of their

total employees to be service disabled. that means wounded, in service to their country. we spoke to a number of folks here about what is going on with their firm and why they have such a huge commitment to veterans. they told us it's about trying to get them jobs, trying to get them reorganized and reacclimated to civilian life. captain john martinco runs the syndicated group there. >> the big challenge returning veterans have from being in iraq and afghanistan coming home and now having to self-promote themselves. these guys are everyday heroes doing what they say is just their job, but the reality is, they need to come home and splai explain to come home aacross th

what they've done overseas. >> he was a career military man, went to west point, went to the army. served in iraq and afghanistan. came out as a captain for the u.s. army. he talked about those challenges. it's about whether or not you can get veterans to be a bigger part of society, get them to contribute to what's going on here at home after their service. james cahill is the president of the firm at drexel hamilton. he talks about the dreams veterans have when they come back to america. take a listen. >> greatest gift we can give these people is an opportunity to have an advancement in business and put them back with their families. when you do that, it solves a lot of wounds. we saved three lives. we had people who said, jim, if it wasn't for drexel hamilton, we would not be here today. >> james cahill makes a great point. he says it's about putting these veterans back in stable situations, sometimes that involves family, sometimes that involves professionals, colleagues around them. the more you put those people

together, the more these guys can actually acclimate to life post their military service. it was a great story. we are going to have more on this throughout the day. "power lunch" will take a deep dive to what this company does and why it hires veterans and makes the commitment. >> a perfect story on veterans day. we appreciate that. more from our guest host on resilience. could be a question of blood flow. cialis for daily use helps you be ready anytime the moment is right. you can be more confident in your ability to be ready. and the same cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache.

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let's get back to our guest host judist rodin, author of "the resilience dividend." and how much i should worry about my nightmare waking up one morning finding my balance have zero in it. >> we should be worried. verizon enterprise solutions just showed that only 31% of companies can self-identify a breach and only 5% of retailers. so the next time you're asked to open a credit card with your social security number, keep that in mind. that will make you more resilient, around holiday season with the shopping going on, change your password foreoften. think carefully about where and how you use your credit card and

believe something bad may happen. >> do you think is there a chance to win this fight? >> definitely. it will take the kind of investment that i talk about yielding resilience dividend. better work in the good time, then protection when it's bad. >> thanks to judith rodin. >> join us tomorrow. "squawk on the street" begins right now. good tuesday morning. welcome to "squawk on the street," i'm carl quintanilla with sara eisen and simon hobbs. cramer is off and david faber is at alibaba headquarters in china where he'll speak with jack ma in about an hour. futures look set to push us toward new record highs. the dow going for its first six-day winning streak since june. see if stocks are able