thank goodness it's friday. welcome to worldwide exchange. >> these are your headlines from around the world. >> head in the clouds. microsoft shares are spiking in after hours on a solid revenue beat and an optimistic outlook for its cloud products. >> out of the jungle for amazon. shares soar on a surprise profit after the e-commerce titan gets a boost. >> we're learning the alphabet today. investors are cheering a share buy back and profit beat sending shares in alphabet up to an all time high.

so here we are at the end of a long week here. >> it was a very long week. >> so you were of course -- >> i was in switzerland. >> i was covering xi jinping but let's talk about the markets since we are hooking at a big rally yesterday with the dow jones industrial up 29 points. the implied open is telling us the s&p 500 is up 9 points. dow jones is higher by 30 and the nasdaq called up by 80 points. let's talk earnings and so many of them and big names coming out after the bell. that includes amazon. amazon.com surprising investors with an earnings beat thanks to stronger sales when it comes to the cloud services unit. the stock was up some 12% in after hours beating it's all

time high from late july. we take a closer look at the numbers. >> amazon turned in earnings results that really blew past analyst expectations sending the stock up after hours. they turned in revenue of $25.4 billion. that's better than 24.9 billion expected and wall street was looking for a loss of 13 cents. got a profit of about 17 cents. the guide was also relatively strong. amazon tends to be a bit conservative on its guidance range guided to q-4. that's the holiday quarter revenue above the $35.1 billion that the street was looking for. at least at the high end. 36.75 at the high end of amazon's guide. operating income was also at the high end of their guide. a little better than what analysts were looking for. that was enough to send the stock higher when combined with the fact that the cloud piz, a major growth business we found out last care and treatment was more profitable than a lot of

people expected. that also experienced strong growth. analysts were looking for that to clock in just under $2 billion in the quarter. it was over 2 beside clocking in at $2.1 billion. management said to be careful about assuming that the exact same clip would continue in that cloud business saying the progress would be lumpy but they expect the growth generally to continue. also highlighting areas in india and china where they're experiencing strong growth and saying that third party sellers on their platform now constitute 46% of overall sales and it's growing because of prime and fulfillment by amazon. they actually take the third party products into their own warehouses and delivers them. costs are higher as amazon continues to invest in that delivery infrastructure but growth is high too so investors don't seem to mind. >> now the letter b, it's for

buy backs and beats. alphabet beat earnings projections and announced a 5.1 beside buy back. the first time google has returned cash to shareholders in it's 11 year history as a public company. clash a shares surged more than 9% in after hours to an new all time high. >> this was the first time alphabet reported results since it's announcement in august revealing this new corporate structure and this was one for the bulls. the stock shooting higher in the after hours. that as the company reported q-3 eps of 735 on revenue of $18.7 billion and that was a beat on the bottom and the top drilling down cost per click or what advertisers pay the company did drop 11% but paid clicks or overall clicks climbed 23% and that was way more than analysts predicted. the big news wasn't what they had to say about the bottom or

the top. it was capital return. they plan to buy back $5.1 billion in class c stock and q-4. remember when the new cfo came to her role at the company the street applauded in part because it was thought she would put in place a new capital return program and now they have it and turning ahead in q-4 saying that the company will break out revenue and profitability of google separately from the companies moon shots or big other ambitious projects and that should give analysts and investors more clarity into the business as something bulls have been clamoring for. >> we saw a couple of upgrades coming for alphabet. jeffreyss raising the price target to $900 from $800. jp morgan raising the price target to 900. nomura also raising the price target and so was rbc. >> surprising share buy back but this is also financial

engineering to make earnings per share look bigger on the balance sheet when they report in their next report card but alphabet, yeah, the knock on them was can they monetize on mobile? can they boost up mobile search revenue and can they cut down on costs? so they're doing pretty well. let's talk about softy and microsoft shares are popping after the tech company soared past projections with adjusted earnings because you have to look at adjusted here. 67 cents a share on $21.6 billion in revenue. the companies cloud unit is seeing an 8% gains in sales last quarter compared to the same period last year. however they announced more job cuts. a thousand of them in addition to 6700 already announced in late july. shares were up some 8% in after hours trade and we're talking about a 15 year high there for new york trade when they open up at these levels. meantime in frankfurt yeah that's where microsoft also

trades looking at gains pretty much in line with the rally that we saw in after hours in the u.s. and, you know, it's interesting what they're doing because they're also going to the cloud as well since they made their office software now free for download. so how they get recurring revenue is they get to their -- they basically boost their cloud services. apparently they're running revenue at an annual rate of 8.2 billion and then they want to target $20 billion in the future. apparently they are on track to do just that. >> it seems like the new strategy is really paying off and investors in microsoft, they have to be paced for such a long time. who would have thought this big strategy shift pays off now that the focus is on software and cloud services but don't forget hardware because the real big test some analysts say is still going to be the launch of the new lum i cania phones and the e pro. we see that windows 10 is having

a little bit of a positive impact but windows sales to computers makers still fell 6% but the slow down, that has been improving a little bit. >> the interconnected world in the systems microsoft is trying to build. i also want to touch on amazon since we do have analyst upgrades as well for amazon shares. they keep knocking the fact that amazon is basically, it's a spender. they don't produce profit. you know, guys, we've seen profit from amazon 9 out of the last 15 quarters since 2012. so again another profit somehow. $79 million worth in those three months. we have jp morgan, evercore raising price targets on amazon shares and tech doing pretty well but i think it's also reduced expectations and, you know, the analyst expectations and forecasts for earnings because we're looking and forecasting to 5% for eps.

we did that last quarter as well. are we setting the bar too low i think sometimes for these corporate report cards. >> we always do. every single quarter it seems. shouldn't really be a surprise. >> we're going to continue with this earnings roll out because a lot also reporting including one of the world's largest shipping lines. maersk is at sea after a downgrade to its forecast. we're joined with a first on cnbc after this.

good friday morning. u.s. futures are pointing higher as the big three look to post hair fourth week of gains. amazon and alphabet hitting all time highs after stellar third quarter results and paul ryan officially enters the race for house speaker. quick check of european markets and they're still in rally mode. this is the draghi rally which started yesterday. up by 2% yesterday as mr. draghi hinted at more stimulus as early as december. the stoxx 600 jumped by 2% and xetra dax this morning tacking on 1.3%.

lots of corporate news out. ericson missed on operating profit and sales as brazil and russia hamper growth. operating profit came in at $604 million below expectations for $639 million with india and southeast asia the bright spots. it's mobile broadband business in the u.s. remains stable but did grow slower than the year prior. the company saw a slow down in 4g deployment in mainland china and later on the show, be a little more patient we'll be speaking to the ceo of ericsson at 5:30 eastern and that will be a first on cnbc. >> shares of maersk trading lower after it downgraded by more than half a billion dollars. the shipping and oil group says market conditions were weaker

than expected and also neals anderson is the ceo of moller-maersk. thank you for joining us on the program today. i want to talk to you about global conditions right now. you guided for $4 billion in revenue. you're still pricing at 3 to 4 billion for 2015. but you're talking about global conditions. global head winds. can you geographically point to where the biggest concerns are coming from? >> yeah. the profit guidance is down by 600 million which correspondents more or less to hundreds and the bid for container transported so it's a big sum but in relation to turnovers not huge. but the thing is that we see very weak development in the trade between asia and europe and because there's a lot of capacity coming into that trade we've seen pressure on rates. what effects us is more the

rates than the volume but that trade looks particularly weak. but in general redon't see great, great positive news on the trading front. most trading areas are very quite and possibly also our expectation for, you can say up or downgrades from the international institutions on growth expectations from the year is probably more to the down side than through the upside. >> it's probably your most important, i would say, important trading lane. what does that say about the slow down in china? maybe it's worse than expected? >> yeah. i think what is happening in this trade, we need to analyze it further but what we think is happening is that it has depreciated a lot versus the euro. so we have seen first a reduction in stocks and then a disappointing peak season trade from asia to europe and currency

and competitiveness is surely playing a role but we need to understand the underlying conditions better. >> so how quickly do you think, can you adapt your capacity to the new environment that you're seeing? how much of a lag can we expect to see here? >> we already have taken initiatives here in october so we have caught capacity. so our capacity is more or less in line with what we need. and what we now hope for is of course that the rates will go up and that's all we can say. it's not unusual that you have these ups and downs in hshippin and we still make $1.6 million this year so the company is doing well but we would like the rates to pick up a bit. >> also want to talk to you about oil prices. obviously your business benefitted from that but on the other hand you also have sizable production. now you have said to my

colleague louisa not too long agatha you're not looking at reigning in activity there. at what point would you reconsider that? >> well, i think now the oil price is very low. of course we don't know whether it will stay low or whether it will go up but actually for us, looking to grow our oil price it gives us some topportunities to buy into fields and what we're also doing, new large projects at lower costs so it's an irritant in the short-term but also brings some benefits but the combination of low oil and very, very low rates is of course putting some pressure on us. but having said all of that, we still deliver 3$3.4 billion profits in a year like that and that's a good result. >> thank you for your time. really appreciate it. >> still to come on the program,

a is for alphabet. b is for beat. find out how googles new parent company is impressing investors in the market. that comes your way, next. (vo) what does the world run on? it runs on optimism. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world.

marathon testimony for hillary clinton on capitol hill yesterday. successfully surviving the 11 hour congressional hearing on her handling of the 2011 benghazi attack during her time as u.s. secretary of state. clinton calmly denying that she ignored requests to close a u.s. diplomatic mission in libya. >> i was the boss of ambassadors in 270 countries. i was the boss of ambassadors in places like afghanistan where shortly before i visited one time the embassy had been under brutal assault by the taliban for hours. i am very well aware of the dangers faced by our diplomats and development professionals. there was never a recommendation from chris stevens or anyone else to close benghazi. >> okay. let's get straight to washington d.c. nbc news tracie potts joins us.

an 11 hour congressional grilling and some are still calling this a political witch hunt. >> well, democrats say that it was really just a big show by republicans because she has been here before and answered all of these questions before. there had been 8 other investigations but this special committee set up to deal with benghazi had not had their chance to question hillary clinton and now they have all day and late into the night. you heard her there talking about the danger. they spent quite a bit of time talking about the fact that the diplomats and other people working there knew it was a dangerous situation. they were going in to get information. they knew there was not military installations close by. the cia was and two of their people among those killed but they knew this was a dangerous situation and well aware of that. a lot of the questioning centered around why security requests from benghazi went unheated including from ambassador chris stevens. hundreds of them in the month

leading up to this attack. >> this was about protecting the lead. she has it after winning the democratic debate and joe biden dropping out of the race but another story emerging this morning is paul ryan finally officially entering the race for house speaker. >> exactly. despite the fact that one of his demands wasn't quite met. he wanted the endorsement of the three larges caucuses within the republican party. he got two of them. the other he got 70% just shy of the 80% but they did have what they called a super majority to support him. this is the very conservative freedom caucus going for another candidate. 70% versus 80%. he decided to go with that. so he has decided to go ahead and formally throw his hat in the ring as house speaker as a consensus candidate from all of these republicans that are on different pages and we're expecting the internal vote and the full house vote to happen.

>> thank you so much. >> b stands for buy back beating earnings projections and announcing a buy back. this is the first time google has returned cash to shareholders in it's 11 year hisself r history as a public company. let's talk about all the earnings. joining us from the big apple, new york, principle analyst at forester research. great to have you. let's start with alphabet since it was a surprise that they returned $5 billion but also a bit of financial engineering because it benefits them too when you have less dilutionary shares and makes it look bigger. >> well, certainly, that's the key story with alphabet is the

buy back. revenues were strong but what was still obscure is what they're doing from a cloud business. that is a small part of their business but of course cloud is in many ways the big story coming out of the earnings with microsoft and alphabet and with amazon all emphasizing cloud. but google not really emphasizing that much. so the buy back was the big story. >> also, monetizing off mobile clicks was a knock on alphabet and also cutting on costs and some say thank you to the cfo because shares have been up some 25% since late july. she has been doing a good job when it comes to keeping the balance sheet in check. >> that's definitely been a good move for alphabet. it certainly has created a lot of credibility for them on the street and i think that the spin off of their businesses would help give more clarity. business right now has a lot of obscurity as to where the revenues are coming from.

>> but the theme for both amazon and alphabet andrew is the fact that they're growth companies on the one hand side given that we're seeing huge growth specifically in cloud and that pertains to amazon. now on the other hand they're value companies as we discussed returning so much in capital. can they actually be both? >> good question. for companies like amazon there's no question that they have been a growth company and not an earnings company. the interesting thing about the amazon web services though is that it actually is a profit center. it generated more than half of their operating income this quarter. very profitable business and i think it's important to note that that's why they split it out. the other part of the business still is going very well but not nearly as well as the aws and not nearly as profitably. so for amazon they're emphasizing this aws visit

because of both profitable and high growth. >> thank you so much. you have a good weekend okay. vice president and principle analyst at forrester research. we'll stay with the technology theme. still to come on the program, slow network growth hurting e c ericssons earnings when we speak to the ceo right after this short break.

happy friday and welcome to worldwide exchange. >> these are your headlines from around the world. >> let's talk softy. microsoft has their heads in the clouds. shares are spiking in after hours on a solid revenue beat and optimistic outlook for its cloud products. >> out of the jungle for amazon. shares soar on a surprise profit as the e-commerce tie ttan gets boost from its home market. >> investors are cheering a share buy back and profit beat sending shares in alphabet up to

an all time high. >> getting disconnected, ericsson disappoints on the top and the bottom line as brazil and russia weigh in on earnings. we speak first to the ceo in just a few minutes. >> tgif folks. thank you for tuning in and for joining us on the program today. let's check in on the markets as we have earnings from europe and the u.s. here's a look at futures after that 320 point bounce for the dow just yesterday. the dow and the s&p are seeing their best month since 2011. the implied open is telling us we'll be up again above fair value. the s&p 500 calls higher by 12 points. dow jones industrials should be higher by 44 and the tech heavy nasdaq should be seeing gains of 85 points or so it's been a

winning streak of sorts. we have been up four out of the last five trading sessions. meantime the ftse 100 joining in on gains on from friday. >> let's get back attorneyings and mixed picture from at&t. topping earnings expectations but fell shy of revenue forecasts. the company continues to work through the integration of activity which at&t acquired for $48 billion in july. reporting a net loss of 66,000 video subscribers in the third quarter although they added 26,000 subscribers. the company is raising it's full year earnings forecast on the expectation that they will be more cost savings from its acquisition. now shares in cable and wireless are sharply higher as the company confirms it is in talks with john malone owned liberty global. they already own virgin media in the u.k. and has a stake in broadcaster itv but is looking to expand it's reach in the

caribbean where cable and wireless has a strong foothold. this comes after talks of european asset swaps broke down. and i'm not surprised at all to see more acquisition interest by liberty global because we know that they have always been very creative in their financing and always on the acquisition spree. this is a key part of the business. unfortunately though this didn't workout because there's concerns about valuation. >> and in this environment because john malone has been very inquisitive. he has been going after a lot of the cable and telecom assets but in this environment are they trying to front run maybe higher interest rates in the future? higher costs for them in order to of course raise the cash, raise the debt in order to fulfill these acquisitions and go through these deals. >> fair point. let's get back to eric is on. the company missed on operating profit and sales in the third quarter as weaker macro

conditions hamper growth. operating profit came in at $604 million below expectations for $639 million with india and southeast asia the bright spots. it's mobile broadband business in the u.s. remains stable but did grow at a slower pace than the year prior. the company also said it saw a slow down in 4-g deployment in mainland china. joining us now is the ceo at ericsson. thank you for joining us here. i want to talk to you about china and the 4-g deploilt because it seems that's where your company saw a lot of weakness. are you actively losing market share? >> no, it's deployment on 4-g.

that's not strange. our customers offer a high pace of roll out. consolidate themselves in order to continue. the underlying demand for china in 4-g is still high. it's happening with 4-g. consumers is coming on and there's many consumers in china that doesn't have 4-g. i don't see a lack of demand or something like that so it's more this quarter what we see a little bit slower, china when it comes to networks. >> you say the china issue is a temporary issue when it comes to the 4-g deployment. do you have any visibility on when that might actually bounce back? >> no. i wouldn't speculate it with my customers decision when if they're going to speed up or something like that. they're all already on a high pace in china on roll out and it could be tactically that they're spending less any moment. we also had reorganization on the chinese operators in this

quarter so it's not so strange i would say. >> can i also get some visibility and updates on your court lawsuits with apple at this point? you're counter suing over mobile patents. do we have any visibility on when the lawsuits will clear up? >> no, we are in the litigation as we said since the beginning of the year where basically apple is using our patents and we have not found a reasonable license agreement with them and we are trying of course to see that we can settle that outside. we will do so. right now we haven't come there. so we need to wait for the court rulings and we're going to take stocks in the next year. so we wait for that but at the same time we're trying to set the outside quarter that's possible. >> can you confirm to us that you are now he negotiating with apple to negotiate and get some sort of out of court settlement.

>> my ambition is to constantly try to resolve this outside court. i would say yes any time you would ask me that question. i would constantly try to negotiate with apple but right now we are not coming to a resolution so the court proceedings are continuing. >> can you give us an estimate as to what sort of dollar amount you would be happy with? >> no. this is a very complex negotiation where you need to wage the patterns on both sides. the vols. you need to be following it. and it's a much broader discussion on that. but of course we need to understand that apple is a big player in the mobile hand set market. we would have agreements with all others in the market at the moment. so this is of course one we need to settle and agree on. but we will come back when we have more visibility on that. >> let's talk about some brighter spots. let's talk about the u.s. you said the business there was

pretty solid still and u.s. wireless capex akounlts for 25% of your sales. what's your visibility there. do you expect that positive momentum to continue? >> no. i've seen stabilization in north america when it comes to infrastructure investments in the second and third quarter. so that's good. we see still a good demand for 4-g and applications and things happening in the u.s. as well. this is a tremendously important market when it comes to noble technology. at the same time a good momentum in our media solutions for the market. we announced a deal with at&t in the quarter and we're also doing a hot of transformation with our customers there as well. we're working on many in the u. s. market which is a very important market to us. >> thank you for your time. appreciate it. the ceo at ericsson and susan the stock is down. down 6% today. >> yeah. okay. disappointment there. let's talk about sports and

something to look forward to this weekend in london but before that let's talk about the thursday night nfl game. running back marshawn lynch powering his way to 144 rushing yards. total beast mode last night and the seattle seahawks shutdown the san francisco 49ers, 22-3. the defense held the 49ers to only 142 total yards of offense and they sacked the quarterback, kaepernick six times. now also the nfl announced it will extend -- it has extended it's agreement to play regular season games in london's wimbley stadium through the year 2020. so this year the jaguars are in town and will be playing on sunday and they also committed to play one home game per season in london for another five years. earlier this year the nfl agreed to play a minimum of two games

per year at tottenham hot spurs new stadium starting in 2018. i can't tell you how good those tailgate parties are because i don't know. let's talk about a spectacular play in college football. georgia southern trailing 3-0 when eagles quarterback soars like an eagle and flips over the defender for a touchdown. we'll give it ten seconds for both difficulty and execution. okay. tens. it probably only took ten seconds. two schools play in the sunbelt conference and now you know why the conference trends on twitter as get this, #funbelt. >> now we know. >> let's show you some sound and let's hear some sound bites from one unlikely market punter that doesn't stop the party and he's managing to tap the stock market at the same time. michelle caught up with american rapper pitbull on cnbc.

take a listen. >> i don't spend. i vinnest. i don't buy planes, i don't buy boats. i don't buy cars. the only thing that i do spend and splurge on is helping my family. making sure that they get to enjoy the fruits of our labor. >> to help maintain that lifestyle, he dabbles in the markets. >> what stocks have you invested in? >> gopro and obviously apple. invested in facebook. i'm a big believer in biotech. it's different. it's already growing but five years from now it's going to be something that's not only growing. it's visual and tangible. i'm not trying to make money here and make money there. i leave it there and maybe 15 years from now it grows into something phenomenal. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit?

can a business have a soul? can a business be...alive?

the turn around plan is hitting the right cord with investors. let's get the details at cnbc headquaters. he is a u.k. ceo. i'm just saying. >> good morning to you. that's right. investors are loving it at the golden arches. mcdonald's soared past earnings projections delivering adjusted quarterly profit of $1.40 a share. the biggest contributor to the index. shares of the stock gross more than 8% and hit a record all

time high. that's much needed relief for the chain that struggled to stay relevant in the quickly evolving consumer landscape the past few years. many investors saying the ceo is to thank for what could be a major turn around since taking the reigns just 7 months ago. they implemented several initial tifs such as antibiotics in it's chicken supply. this is helping refresh mcdonald's image. same store sales jumping nearly 27%. a huge reversal after sales plummeted 23% last year on a food safety scandal revealing a supplier sold expired meat to american fast food companies including mcdonald's. revenue was 5.3% during the quarter. that's still an improvement compared to the drop in q-2. investors will be watching for the results from mcdonald establish all daybreak fast. it's the biggest operational change at the brand in years and guys overall the company expects this momentum to continue into

the next quarter. >> i'm a little jealous. we still don't have all daybreak fast here in london but maybe they'll get on it. landon have a good weekend. >> you're missing out. >> cnbc headquaters. let's show you some long lost film footage because it is a fried and let's have some fun. throw in some animals. people love it. so this is some lost film footage from the 1950s. it has resurfaced and it shows a little known animal relocation effort that took place back then. it involved trapping and air dropping live beavers. these poor beavers. the idaho department of fish and game packed them into boxes and dropped them from a plane into the wilderness. animal lovers they can breathe a seeing of relief. all right. here are the headlines on this

friday. beavers aside. u.s. futures are pointing higher as a big 3 look to post their fourth week of gains. amazon and alphabet hitting all time highs after stellar third quarter results and paul ryan officially enters the race for house speaker. want bladder leak underwear that moves like you do?

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european markets are still in rally mode and that's the draghi rally we're talking about. dax up by 1.6%. cac 40 showing gains of 1.6. ftse 100 lagging but still a nice gain of 0.9%. this is on the back of the two plus percent rise we saw in yesterday's trading session. all this in hopes for more stimulus. >> let's see how that leads into the u.s. futures are pricing in a higher

start after the rally with the dow gaining 320 points. they're looking for the best month since 2011. the implied open for the s&p recalled higher above fair value. up some 14.5 points. dow jones industrials should be trading higher by 63 and the nasdaq looking at gains possibly at the open of 89 points but it's all about earnings. especially the tech names that came out after the bell. amazon is a surprising investor with an earnings beat and yes a second straight profit. that's thanks to stronger sales and cloud services that jumped up from a year ago. the stock was up more than 12% in after hours beating it's all time high set in late july. >> b is for buy back and it's also beat. alphabet parent of google beat earnings projections and announced a $5.1 billion buy back. the first time google returned cash to shareholders in it's 11

year history as a public company. shares urged 9% in after hours to a new all time high. >> also microsoft. let's check in on softy. shares up 7% after the company soared past projections and adjusted earnings. 67 cents a share on $21.6 billion in revenue which is a beat. the companies cloud unit seeing an 8% gain in sales last quarter compared to the same period last year however the company did announce more job cuts. a thousand more jobs to go in addition to the 6700 layoffs in late july. shares off nearly 8% in after hours and trading higher in frankfurt trade and microsoft, cloud seems to be paying off for them since they moved away from their office software making it free for downloads. when you have recurring revenues of 8.2 billion it looks like they're on course and narrowing

the cost by unfortunate job cuts but all around the tech companies beat expectations. >> they did and who would have thought that the strategy is paying off because as a microsoft investor what you needed was a lot of patience but finally it seems like this plan is actually showing some fruits of labor but we still got to wait for some of the hardware releases. that could be a big task for the company. the lumia phones and laptop and surface pro. >> interconnectivity among the devices. amazon, by the way, also come out way beat. let's give you a rundown of what to watch for on this trading day. no major economic at a atdata d. the company is reporting before the bell. p and g, procter & gamble, state

street, whirlpool and so much more. muscle catch the earnings interviews coming your way. cfo john muller. john stevens on squawk box this morning and royal caribbean ceo on closing bell but let's talk through it and joining us so early on this friday, todd is joining us from cme in chicago. good to see you. we were talking about all the earnings beats and we were looking for a 5% eps declines. similar to last quarter but when you set the barlow and this has happened the last few quarters it makes it easier to come out with stellar report cards seemingly. >> good morning, if you can say financial engineering and currency wars and you set the bar so low so you're expecting a ramen noodle and get a hamburger you're excited and pushing it up. we're still at the average chase for yield because there is no

place else to go. so with draghi's speech saying he's going to do whatever it takes and we'll have more easing it makes it easier but you have been talking about the b for buy back. if we're going to continue to build our earnings on buying back stock and taking advantage of the cheap money that doesn't do a lot for the overall company. it doesn't help growth and doesn't do a lot for the shareholders either. >> but big question going into the end of the year, maybe that is working for investors. maybe we'll be seeing the rally, todd. a lot of people pointed to the fact that short interest is pretty high. if the bears see the need to unwind those positions that could add fuel to the rally as well. that and the ecb's pledge to do more in december. do you think that could get us to that santa rally? >> you know, i think typically even in 2008 we did have a santa rally. it's kind of tradition. i think that we may see the rally. i certainly wouldn't tell

anybody to short this market as it's going straight up but what you want to look for is you look forward and say are we being built on solid fundamentals. the answer is no. but you have to watch the tape and look at what you're buying but if you look around the globe, look at stocks, walmart down 40%, caterpillar down 30%. other companies are showing deep discounts. you have to be careful and cautious as you see people piling in because of the cheap money, high margin debt, all of these things could create a problem but in the short-term could you see a santa claus rally, sure you could. >> we're just away from all time high with the s&p on track for the best month since 2011. are you putting money into the stock market and are you betting on higher returns at the end of this year? >> as an investor i always have money in the stock market but as a trader i'm looking to buy into the commodity space and beaten down sectors.

i want to be short the overall stock market. we're way overdone and overvalued but i'm looking at cheaper investments. it's a great space to be looking at. gold looks good here. so that's where i'm looking to be as an investor and trader. it's way overdone and a big air balloon or asset bubble that's been built by the artificial and financial engineering that we've seen for the last five or six years. >> just for the record, i like ramen noodles. so don't knock it okay. >> i'll never do it again. >> never. never. okay. todd. >> don't you like his tie today. >> i didn't notice it. >> it's very colorful. >> was it? >> you'll have to watch it back. that's it for today's show. >> that does it for us on a friday. u.s. squawk box is coming your way next.

microsoft, alphabet, and amazon, they hit the trifecta for investors, shares soaring to new heights. also facebook shares hitting a triple digit milestone for the first time and giving it away. jack dorsey back in the corner office. how he's giving back to employees in a big way and it's more than 140 characters. it's friday, october 23rd and squawk box begins right now.

good morning, everyone. welcome to squawk box here on cnbc. i'm becky quick with andrew ross sorkin and brian sullivan. joe is off today. paul ryan running for house speaker. announcing his bid in a letter saying he is ready and eager to be speaker. we'll talk more about this with john harwood coming up later in the hour. right now though a check of the markets. after yesterday's 320 point jump in the dow mario draghi lighting the fuse with his dovish comments about extending europe's quantitative easing program. that's what kicked things off. the idea that the central banks are here and here to stay for quite awhile. you saw the euro under quite a bit of pressure. this morning you can see green arrows for the equity futures. the s&p futures are up by 15 and sd