hi, everyone. good thursday morning. >> these are your headlines from around the world. >> ebay enjoys life after paypal. shares jumped in extended trade after the online retailer beat estimates and raised it's guidance. >> but it's bad news from american express. shares sink after hours following a third quarter earnings miss and cuts eps targets. >> simply not good enough says the ceo of publicis. shares sink after it cuts the sales target on poor u.s. performance. >> targeting inversions. carl icahn sets up a $150

million super pac to push congress to reform corporate tax. >> let's check in on u.s. futures. on this thursday morning we have a higher call from markets. the s&p 500 the implied open is telling us we'll be up maybe two points. dow jones industrials should be gaining by 20 points. we're pricing in close to 10.5 points. it's a mixed picture out there. the ftse 100 here in the u.k. we're down .5%. meantime the german dax minimal games. the cac 40 in france not going anywhere and the ftse mib pretty flat. the follow through thate saw from the asia session. let's take a look at individual stock movers and strg demand, yes, strong demand in europe and

china boosting profits at daimler. logging record sales in the third quarter driven by new model launches. we also have swiss pharma giant roche in the news after beating targets on the first nine months of this year. the ceo said he was positive on the company's drug pipeline in the future and publicis, the ad company is cutting it's 2016 sales target after third quarter revenues took a hit of weakness in the u.s. market where the ceo says the performance was simply not as good as it needed to be and then we got a mixed set of output figures from anglo american. they would delay a major platinum investment and also cut diamond production because there isn't enough demand, believe it or not, carolyn, for a woman's best friend. >> that's disappointing, isn't it? let's move on to ebay. ebay proving it is on solid ground after it's split from paypal. stock surged about 9% in after

hours trading after topping wall street earnings projections and raising it's outlook for the year. the auction site continues to grow without paypal. there were 2 million new active buyers on the site in the third quarter. still profits are shrinking after they face more rivals such as amazon or etsy. it's profits fell to $539 million. now american express shares sank 3% in extended trading after missing on the top and the bottom line. the company said it's third quarter earnings fell due to foreign exchange head winds and a rise in marketing spending. revenue from international operations fl 11%. >> let's talk about hedge fund activist investor bill ackman. he's building up his stake in valeant pharmaceuticals with an additional 2 million shares and his hedge fund is already one of the largest holders in valeant. his move comes as more than 39% on a negative

research report from citron accusing valeant of fraud and channel stuffing. they called the report erroneous saying it contains misleading statements. ackman still believes in the company despite these claims. this report looks back to a specialty pharmacy and basically they're saying that valeant has an option to buy up more of this specialist pharmacy. i'm going to try to pronounce it. hopefully i get it right. but it's filadore i think is the name of the company. ackman himself had a long standing relationship with valeant. part of that attempt to buy up allergan with that takeover offer rejected in the end. >> they lost 9.4% so far this year. ackman lost $500 million in yesterday's sell off in the stock and so far this year he is

down, i believe, $1.4 billion in terms of his bet on valeant but he's not the only hedge fund that's doing really poorly this year. other high profile hedgefunds like green light capital are down 13.3% in the third quarter. i mentioned others. glenn view capital management is up 13% and yesterday greenlight capital, susan, you pointed out that letter to me. they say they want it a little less hard and they have been hit so hard by some of their biggest positions out there. console energy, sun edison, microntech. it has to be hard right now. many of them are are doing poorly. >> i was taking a look at that investor note and the partnerships involved with greenlight capital returned some -- they're down 14% in fees and expenses but it's

interesting there's different plays on energy because on one hand they have oil and gas and they're going solar and wind. so, you know, i guess you have to hedge that portfolio, don't you? >> still a pretty tough environment from any of these. but should we feel sorry for them? probably not. i don't know. let's have a look at the euro dollar, the euro is trading lower in anticipation that mario draghi will only hint at further stimulus stopping short of any further action. euro dollar currently at 1.1308 off by a quarter of 1%. inflation data continues to disappoint to the down side. a reuters poll shows 70% of respondents expect the ecb to extend it's asset purchase program beyond september of 2016. >> let's talk about billionaire investor carl icahn. he has an interesting move and comments as well. we'll be talk about inversions in just a bit but carl icahn weighing into the fed rate

debate and he said the central bank is harming the u.s. economy by failing to hike. >> we don't have limited government in this country. what you really have done is put all the power with the federal reserve. federal reserve can't do it themselves and they admit it. they are single handedly holding our economy up with zero interest rate. >> something he said many times before. let's talk to the chief investment officer joining us very early from new york. good to have you on the program, rob, thank you so much. what do you think? should the fed be hiking interest rates? are they late in the game? >> i think they should be hiking interest rates. i think they were going to do it really earlier but of course we had the market volatility, stock market volatility, the correction. so i think they held off for that. i think they should hike and by december we'll see the first hike which they pretty much said

is going to happen. >> they said this for a long time but have they actually moved yet. >> true. >> i want to talk to you about hedgefund performance. something is wrong. the famous guys and those that have performed had a good track record over the years. they aren't having a good 2015. greenlight capital for one. >> yeah, well it's kind of interesting. usually hedge funds if the stock market is having a great year that's the time when hedge funds struggle but it does seem like with this year with the market basically just treading water that they have struggled and it's hard to explain except perhaps most or many hedge fund managers thought we would see a rising market. a rising stock market this year and we just haven't really seen it. >> and rob, greenlight capital, for example, they got hit hard by the energy names. i wonder how you feel about the industry and industrial names. do you want to touch anything remotely related to energy right

now? caterpillar is reporting later on today. they previously cut their revenue forecast. they'll be slashing a lot of jobs. at what point do we see the bottom? >> yeah, well, let's start with industrials because i actually have an underweight on the sector because i think the dollar is going to continue to rise. that's going to hurt multinationals like caterpillar so even though they could have a great earnings report today i still have some what of a dim outlook and then as far as energy goes i'm neutral on the space. we have started to see a -- we've seen rig counts come down dramatically. we've seen oil prices rise a little bit but at the same time production hasn't kept up or drop in production hasn't kept up with the rig count drop so i'm still going to be neutral on the energy stocks. >> we have to talk about apple. you're overweight technology, traders are pricing in a 10% chance of an apple earnings

plunge for the quarter. what are you seeing? >> well, i think long-term -- first of all i'll say long-term i like apple. their long-term growth prospects look great and the stock is attractively priced. at the same time, its hard to predict on a quarter by quarter basis what we'll see out of them. they normally have been pretty good but yes i've heard the whisper numbers that this is not going to be a pretty quarter. for holders of am, buckle your seat belts for earnings this go around but for long-term investors should still be a good place to be. >> what should investors do with their asset allocation. there's no visibility on whether the fed is going to hike or not. we're seeing treasury yields close to 205% and that's a far cry from roughly two months ago. are you still a buyer of treasuries versus a buyer of stocks? >> i would be overweight stocks here. most of the technical damage particularly in the u.s. has been corrected.

u.s. stocks are still cheap. the economy is going to muddle along. it's a terrible earnings season but it is growing. the retail investor hasn't gotten back in. i would continue to overweight stocks but when they do raise rates that will start to spell the beginning of the end of the equity bull market. not that it's going to end the day the fed hikes rate but i would start to take some chips off the table but we're not there yet. >> we're not there quite yet. thank you for your time this morning. >> okay. let's give you a run down of what to watch for this thursday. at 8:00 a.m. eastern time we're going to get the weekly jobless claims and then we get a read on september existing home sales and leading indicators coming your way at 10:00. three dow stocks reporting earns before the bell, 3m, mcdonald's and caterpillar and google's parent alphabet, microsoft,

amazon, and much more. plus lots of interviews today. on squawk box we have the ceos of southwest, hess, caterpillar, eli lily. let's talk about the ipo and the debut that everybody was talking about. ferrari making a quick start out of the grid yesterday as it debuted on the nasdaq. shares of the italian super car maker opened up 15% higher even though the company priced it's ipo already at the top of the marketed price range. cnbc spoke to the ceo of ferrari's parent company fiat-chrysler. he said there was still plenty of scope for global expansion. >> for simple geographic coverage of the rest of the world it's a big world. we only have 204 points of sales. we only have 180 salesmen that

cover that network. the potential is much larger. high network individual. the population keeps on going up. >> there you go. now we also asked him for his view on the rumors that apple should start building it's own car. >> are they going to get a car made or build a car? those are two separate questions. i doubt it very much that they'll set up infrastructure to manufacturer cars. they have not approached this. this industry in general needs to open up to disruptors. whether it's the google car, the apple car, this notion that we're seeing now with autonomous driving, assisted driving, it's going to change the traditional nature of car making. it's going to change the nature of cars in the marketplace. >> creeping up on congress, find out how activist investor carl icahn is setting his sights on capitol hill with financial

backing from none other than himself.

welcome back to the show. ebay beats earnings expectations in after hours trade and ferrari closes up higher on its stock

market debut. >> here was a political shocker yesterday. u.s. vice president joe biden ended weeks of speculation saying he will not be running for president in 2016 after all. in an impromptu address in the white house rose garden he was flanked by barrack obama and his wife. biden saying he believed that time had run out to mount a winning campaign. the former senator outlined the issues he thought the successful democratic candidate needed to address. that includes cancer research. >> thank you for all being so gracious to jill and me for the last six or eight months and for our whole career for that matter. i'm telling you, we can do so much more. i'm looking forward to continuing to work with this man. thank you all very much.

>> biden's exit will likely boost hillary clinton's nomination chances while tension also returns to the republican race. cnpc has revealed t cnbc revealed the line-up for the upcoming debate. john harwood has the details. >> the line-up is set a week from today in boulder, colorado. in the opening session at 6:00 p.m. eastern time, former senator rick santorum of pennsylvania, current senator lindsey graham of south carolina, former governor george pataki of new york, current governor bobby jindal of louisiana. and shortly after 8:00 p.m. there will be 10. you'll see them arranged this way on the stage. with the poll position in the center of the stage, donald trump and retired neurosurgeon ben carson.

flanking them, marco rubio of florida, carly fiorina. moving out from there, jeb bush of florida and senator ted cruz of texas. then former governor mike huckabee of arkansas and chris christie of the state of new jersey. finally on the wings, john kasich of ohio and rand paul of kentucky, once again, october 28th, boulder, colorado. be there. >> be there. someone that doesn't mince his words when it comes to politics, carl icahn is forming a super pac with $150 million of his own money. he'll use it to push for corporate tax reforms to end the rise of inversions. he didn't specify how the money will be used other than to say

that congress will be held accountable. he also said americans are not fully aware of the great dangers of more and more u.s. companies leaving the country for lower tax rates offshore. he believed the change could come through congressional legislation. >> i'm putting a pac together and committing 150 million of my own money to that pac and that money is going to be used to make congress accountable instead of just doing nothing. to say, well, we can't compromise because we have to stick to our principles. i don't think they understand their principles. >> and he said congress is completely dysfunctional right now. we're going to go for a break but still to come on the show, from rags to riches our next guess is a tech ceo that made six figure sums through t-shirts. find out how, next.

youtube is launching a ad free subscription service called youtube red. subscribers will be able to save videos to watch off line and play videos on their phone or tablet and gain exclusive access to new original programs and movies. sounds like a netflix subscription. $9.99 a month. on netflix you already avoid the

ads. i don't know how this is different. but how much would you pay to avoid ads? is $9.99 a month fair? you can find us via twitter as well. >> teespring allows users to design a shirt and sell it with a company shipping directly to buyers. users are making six figure sums from the sight with some famous campaigns on board as well. they were founded in 2012 and raised about 56 million from backers. joining us bright and early from san francisco is walker williams, co-founder at teespring. good morning or good evening for that matter. how exactly does this model work? >> sure, so teespring allows anyone to design and sell custom apparel without any risk or up front cost. we handle the manufacturing, the

shipping, the customer service. our goal is to make starting a business, building a brand about the idea more than who you know, where you were born, your connections. >> but you would think that you as a company would have to be a lot more selective if you're actually backing these individuals. don't you have to look at their ideas first? you can't just have anyone designing t-shirts and trying to sell them. >> the amazing thing about what we do is we develop technology and manufacturing processes that allow us to back everyone. anyone can go on to teespring today, launch their idea, put it on social media, in front of friends, family, advertise, audience, however they can reach folks and regardless of how many they sell, whether it's 1, 10, or 10s of thousands we can handle that manufacturing on demand. so we actually scale to any level regardless. so we don't have to do any

prevetting. >> we have a rule on this show. no t-shirt, no interview. what have you got for us today, walker? >> so i'm actually wearing a podcast t-shirt. one of the amazing things we're seeing is you talked about youtube introducing this new subscription service. it's a fantastic way to have youtube channels, podcasts, bloggers, authors to go out there and give fans great product and add another revenue stream for themselves. >> i'm so disappointed. you didn't make anything specifically for us. we have to take actions into our own hands and apparently we made some kncnbc sweatshirts. what is that? first in business worldwide. you get it in different colors and cuts. walker, just wondering about

your business model. wex-ers doing it in the morning. who came up with that? anyway, $140 million is how much you paid out in the last 18 months. that's i guess costs to those t-shirt makers. how do you make money? do you make money? >> wryeah. so we take a small cut on every t-shirt that's sold. we put such a deep investment into our infrastructure that even with our small cut folks are still able to get out there and get the same pricing they could get if they went to manufacturers themselves. we paid out over $140 million to entrepreneurs to business owners that use teespring. we shipped more than 15 million products all around the world. >> your competitors, etsy, they already ipo. does that tempt you walker? >> well, carey wrreators are ma

more than 20% more on average per year than etsy creators. so etsy is focused on folks that have products and they're looking for a way to sell them. with teespring we focus on the entrepreneur with the great creative spark and great idea but they don't necessarily know how to manufacture, how to fulfill, how to actually get the product into customers hands. >> didn't really answer my question. ipo or not? >> you know, i have a philosophy that, you know, i don't try to focus on the exit or the outcome. we're here to change this industry. we want to make e-commerce and about that idea not about who you know and where you were born. how much money you have. if you know anything about manufacturing and we believe that the financial outcome will be a result of us changing this industry as opposed to the goal. >> thank you so much for your time. really appreciate it. walker williams, co-founder at

teespring. >> we'll stay on the theme of apparel. what analysts are thinking about under armour. are they overweight? we'll take a look at the leisure industry ahead of the third quarter earnings results. we'll leave you with a look at the futures trading just ahead of the wall street open.

hello, everybody and welcome to worldwide exchange. >> these are your headlines from around the world. >> ebay enjoys a life after paypal. shares jump after the online retailer beat estimates and raised it's guidance. >> but it's bad news from american express. shares sink after hours following a third quarter earnings miss and cut to eps targets. >> simply not good enough says the ceo of publicis. shares are sinking after it cuts it's sales target on poor u.s. performance. >> carl icahn sets up a $150 million super pac to push congress to reform corporate tax. >> good thursday morning everyone. thank you for tuning in. the week has just flown by. >> has it really? >> just one more day until the

weekend. let's check in on the markets and how we're fair aing ahead o the u.s. open so far. this is off two straight sessions of losses. the implied open is telling us we're going to be higher. the s&p 500 called up by 2 points. dow jones industrial by 23. here's the lead you're getting from the european session. it's a mixed bag out there. like what we saw in the asia pacific last night. ftse mib with gains of 10%. same thing with the dax as welseying an advance of .2%. the ftse 100 not going anywhere today. >> michael j. fox received what can only be described as a back to the future present from nike. nike landed the first pair of self-tying mags to the back to the future star. they were asked to collaborate

30 years ago with the brand challenged to imagine sneakers that would suit the inhabitants of the era. they would go on sale next spring with proceeds going to the m.j. fox foundation for parkinsons disease. we still don't have the flying car. >> no nike, october 21st, 2015. self-tying shoes finally. now, under armour reiterated it's strong outlook saying it expects revenue to more than double by the year 2018. the athletic apparel company is due to release it's third quarter earnings this morning before the bell. let's get analysis. joining us on the line is the managing director at citi. consensus is calling for under armour to report 44 cents a share and 1.17 billion in revenue. is that your expectation? >> we're ahead of that. 45 cents, a penny ahead of

consensus for when they report today. >> tell me about under armour. seems like they can do no wrong. they have a great host of shining stars. what about the strength in under armour right now? >> i think what is supporting the strength in under armour is not just the ability for them to become a global secular brand which we're still in the very early innings of that beginning but the on going consistent strength of their business in the u.s. they have consistently performed above expectations with regards to the top line and that's been driven by their entire portfolio whether it be apparel or footwear accessories. >> powerful growth. 40% growth in foot ware. you know, i'm just wondering if the stock has already priced all the strength in. >> well, the valuation is always something that we hear from investors that is a little tricky for people to get their

hands around and i think under armour is one of those names that we're in unchartered territory with. you have a very strong brand. you have a very strong athletic cycle where there seems to be a global phenomenon where fitness and health is becoming more important which is driving apparel and footwear sales and you have global growth for under armour so i think the potential here is still pretty exciting and there's the potential i think to surprise on the upside with growth. >> there's also some negatives. some caveats. very few people talk about them because they're so excited by what the stock has been doing. it's up 50% year to date but the cfo recently left. those are going to be tough shoes to fill. excuse the pun. >> yeah. he is very well regarded i think both by under armour management and the street.

but, you know, he had been elevated to coo. they were in the search for cfo anyway and they have great leadership. they are -- as it is. and the founder of the company and ceo, it's been his vision and his plan for how they have been able to succeed so far and he is still there. so that's the positive. >> kate, the problem with under armour is they have such ambitious targets and that's backed up by the community. you have to wonder what could trip up the company. is there anything that could go wrong and something that we're not seeing right now? >> we don't really believe that. i mean, there's risk with every story of course but again, you know, their blueprint is pretty exciting. we have a brand that is an authentic sports brand so although they're selling some of their product for fashion there's not this huge fashion

risk in our opinion like this is with other brands. there's so much opportunity for white space. even here in the u.s., they are barely in foot locker which is the biggest sporting goods chain in the world that we really think there's a lot of low hanging fruit still when it comes to the opportunity for growth. >> kate, we'll leave it here. managing director at citi. still pretty bullish on under armour. >> a lot of people are. let's talk about sports and i'm sure there are a lot of under armour wearers. last night, dale murphy may have been earned the right to be called the new mr. october. he hit a home run for the 6th consecutive game setting a new post season record and the neme completed their sweep of the chicago cubs. the mets advance to their first world series since 2000. meantime, we have the toronto blue jays starter shutting down

the kansas city royals for seven innings as they survived another day with a 7-1 victory. he had a solo homer and tulowitzki extended the lead with a bases clearing double. venture range ventura will start on friday in game six against david price who is the game two loser. we'll head to break.

>> vice president joe biden ending weeks of speculation saying he will not be running for president 2016. an address in the rose garden flanked by president obama and his wife. he believed time ran out to mount a winning campaign. tracie potts joining us. and that was quite surprising. >> it was interesting and obviously long awaited. he also said he's not going to be silent which raises a lot of question about what his role might be in this campaign. he took a few jabs at hillary clinton although not by name talking about upholding the

obama legacy. she has departed from the president on some issues like trade and immigration. he says we need to stick with what president obama has started and he also talked about republicans not being the enemy which is a comment that she made in the last debate. clinton did call the vice president after his statement. she tweeted she was inspired by his optimism and commitment. this opened the door for her with her numbers growing after the last debate. our latest poll shows her 25 points ahead of bernie sanders. so certainly she has a fairly strong lead there right now but the question remains what about all of those people out there, the biden campaign, the international firefighters who were holding out for vice president biden to run? are they going to be reluctant or enthusiastic supporters of hillary clinton or might they just stay out of it all together and what effect will that have on the democratic party? that remains to be seen.

>> tracy, thank you so much. >> all right. our other top story leading activist shareholder and billionaire investor carl icahn is setting his sights on capitol hill funded by himself. let's get out to landon at cnbc headquaters. what is he up to? >> that's right. best known for going head to head against some of the largest corporations now has a new activist target, congress. the billionaire sent a letter to top leaders in congress saying he is building a super pac with $150 million of his own money. he's pushing for legislation to block tax inversions which is when a company relocates to a different company to take advantage of lower tax rates. 15 companies struck them in 2014 and 2015 despite tightening rules to discourage such deals but change is possible through congressional legislation and icahn says as long as someone holds congress's feet to the

fire. >> i'm committing $150 million of my own money to the pac and that's going to be used to make congress accountable instead of doing nothing and to say, to say, well we can't compromise because we have to stick to our principles, i really don't think they understand their principles. >> icahn adding americans are not aware of the great danger of companies heading offshore issuing the call to action for fellow investors to step up as well. >> guys like me, and i've said this before, should be doing much more to get involved in the political arena. because the mipolitical arena today is completely dysfunctional. >> he plans to raise additional third party funds for the super pac but has yet to specify how the dollars will be spent. >> thank you so much. landon dowdy at cnbc headquaters. joe biden's decision not to run will likely boost hillary

clinton's nomination chances so the attention returns to the republican race because cnbc has revealed the line-up for the upcoming gop debate which it is hosting next week and john harwood has the details for us. now the stage is set literally. with all the polls calculated so is the line-up for the republican presidential debate a week from today in boulder colorado. at 6:00 p.m. eastern time, four candidates, former senator rick santorum of pennsylvania. current senator lindsey graham of south carolina, george pataki of noew york and bobby jindal o louisiana. at 8:00 p.m. there will be ten. with a poll position at the center of the stage, donald trump, retired neurosurgeon ben carson. flanking them, marco rubio of

florida and carly fiorina. jeb bush of florida and senator ted cruz of texas. then former governor mike huckabee of arkansas, current governor chris christie of the state of new jersey and on the wings john kaisch of ohio and rand paul of kentucky. i cannot tell you what's going to happen in the debate but we have a lot to talk about with the candidates. october 28th, boulder, colorado. be there. >> be there. i'm so excited. october 28th is the day. let's talk about one of the biggest movers on wall street and that's valeant. the pharmaceutical maker bill ackman engaged with to try to buyout valeant. they might be in danger while it's balance sheets might be in question because of the option

they have taken to buy up the specialty pharmaceutical. bill ackman is doubling down with the price decline in the stock. he added more shares so he has a $2.5 billion stake holding in valeant and he is saying he's sticking with it. it's interesting. >> so far this year, his bet on valeant means he's down by $1.4 billion and one of the commentators said this is a guy that eats nails for breakfast. double down on that stock. anyway, these are your headlines this morning. ebay beats earnings expectation sending shares higher in after hours trade. carl icahn setting up a super pac and ferrari closes up higher on its stock market debut. we'll be back in two. care of my heart.

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welcome back. markets looking a little mixed this thursday in anticipation of the ecb, the xetra dax up and cac 40 is down by 0.1. the euro is trading lower in expectation that mario draghi will will only hint at further stimulus according to a broad range of analysts. central bank is under a lot of pressure to act as inflation data continues to disappoint to the down side. route reuters poll show 70% of respondents expect the ecb to extend beyond september 2016. >> and we're only seven months in to this trillion dollar bond buying program. >> seven months in. >> billionaire investor carl icahn weighing into the fed rate debate. the central bank is harming the u.s. economy by failing to hike interest rates.

>> we don't have limited government in this country. what you have really done is put all the power with the federal reserve. federal reserve can't do it themselves and they admit it. they are single handedly holding our economy up with zero interest rate. >> meantime, we're looking at two straight sessions of losses at wall street. so let's check in on u.s. futures in the implied open telling us we'll be up today. s&p 500 higher by 4 points. dow jones industrial with a higher start of 18 points and nasdaq with gains of 12. let's show you what's happening today. a run down of what to watch for on this trading session on this thursday. at 8:00 a.m. we'll get to the weekly jobless claims and then a read on september existing home sales and indicators coming your way at 10:00 a.m. three dow stocks reporting earns before the bell, that includes 3m, golden arches, caterpillar,

google's parent called alphabet, microsoft, amazon and more. big named interviews coming your way. we have the ceo of southwest, hess, caterpillar and ceo of dunkin brands will be on. >> i want one right now. >> we didn't get t-shirts. >> how about a donut? we heard from american express, shares sinking in extending trading after missing on the top and the bottom line. third quarter earnings fell 13% into foreign exchange head winds and a rise in marketing spending. revenue fell 11%. >> ebay beats on the bottom line as reported after the bell yesterday. josh lipton has all the details for you. >> ebay stock moving higher in the after hours. the online shopping marketplace

reporting better than expected results. reporting earnings per share of 43 cents that beat analyst expectations by 3 cents. revenue clocking in basically in line for 2$2.1 billion. this is the first report where investors are getting a clear look at ebay as a stand alone company. the retailer said it had 159 million active users on the site. also in line with what analyst forecast. gross merchandise volume reporting in at 19.6 billion. that was up 6%. from here analysts want to see ebay accelerate growth and also find out how the company plans to keep competing with rivals and not just amazon but smaller players like etsy. i'm josh lipton in san francisco. >> now shares of valeant

plunging on a negative report accusing valeant of fraud and channel stuffing. >> well, late morning midday today a short seller comes out with a report essentially alleging fraud at valeant. it has to do with revenue coming through the specialty pharma channel. essentially saying there's a phantom network and valeant is booking revenue that doesn't exist. that sent the stock down as much as 40% during the day. just down about 19%. now valeant did come out and respond around 1:30 and about an hour later with a stronger response saying it denies the allegations and calls them false and misleading statements designed to drive down stock. it properly counts for sales at its specialty pharmacies and is in full compliance with all accounting rules, regulations

and laws. interestingly the afternoon today scott broke the news that one of the top holders said he was buying 2 million shares of valeant. that helped the stock recover from being down on the lows of almost 40% today but interesting to see everything going on here at valeant. it doesn't seem to stop coming. >> strong words. it's debt fuels acquisitions and deal making boosting their bottom line and not actual sales of drugs. >> bill ackman still believes in the story. what does he know that other investors don't know? that's what i wonder. >> and does he have the right call? it's his largest holding now. interesting. bill ackman not one to shy away, is he? >> that's it for today's show. >> next up, u.s. squawk box. want moves like you do?

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>> good morning. forget about the fed for a couple of minutes. it's all about the ecb. more stimulus from europe. more earnings out, dow components like american express. the shares are down right now. the latest major company hit by the stronger dollar and valeant defending itself from a harsh report. slashed as much as $20 billion from its value in one day. new this morning, congressman paul ryan one step closer to becoming house speaker after getting a key backing from the freedom caucus and it's truly amazing, the mets are on their

way to the world series for the first time in 15 years. everybody around here is jumping on the band wagon. new york sweeping the cubs to win the nlcs. it's thursday, october 22nd, sorry back to the future, cubs did not win the series. and squawk box begins right now. ♪ >> live from new york where business never sleeps, this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. it looks like the futures are indicated higher. dow futures up by 22 points. s&p futures up by 3.5. the nasdaq up by 13. markets were down yesterday. check out oil