business, that doesn't make me feel good, but it's a reality of the fact that people are -- a lot of our high-end customers are more comfortable flying to las vegas and spending a few days there than going to europe. that's happening. >> jim murren, thank you. it's been a pleasure to have you the last two hours. appreciate it. >> make sure you join us tomorrow. "squawk on the street" is coming up right now. good tuesday morning, welcome to "squawk on the street." futures are steady as the world reacts to last night's presidential debate. we're going to bring you all the highlights as well as how some markets and polls have reacted. europe largely in the red this morning. oil is down more than a dollar today amid some reports out of opec that iran is unwilling to freeze at these levels. the latest home price number is out as well, up 5.1 in july. our road map begins with the

most heated moments from last night's debate, the good, the bad and the ugly. we'll break down the most important comments. some new hats thrown in the ring for twitter. we'll give you the latest on the various suitors for that company. iconic hedge fund perry capital shutting down its flag ship fund after nearly a decade. is it a sign of broader problems on wall street. first up, the gloves came off at last night's presidential debate. donald trump and hillary clinton going after each other on many issues, including jobs, trade and taxes. the candidates were at odds on the best way to grow the economy. take a listen. >> under my plan, i'll be reducing taxes tremendously from 35% to 15% for companies, small and big businesses. that's going to be a job creator like we haven't seen since ronald reagan. it's going to be a beautiful thing to watch. companies will come, they will build, they will expand, new companies will start and i look very, very much forward to doing

it. we have to renegotiate our trade deals and we have to stop these countries from stealing our companies and our jobs. >> the kind of plan that donald has put forth would be trickledown economics all over again. in fact it would be the most extreme version, the biggest tax cuts for the top percents of the people in this country than we've ever had. i call it trumped up trickledown because that's exactly what it would be. that is not how we grow the economy. >> the first 15 minutes tried to have a policy discussion, but it quickly turned into a discussion of taxes and birther controversy. no health care, no immigration. very little homeland security discussion. >> i'm not a political guy, i'm a stock guy. in the old days when it was obama against romney, i used to just tweet, i'd buy this stock over this, this over that. nothing.

it wasn't one of those debates. >> somebody was buying the peso because that moved a little bit. >> that's really important. the peso is a referendum on nafta. i've got to tell you, i will offer one slight criticism. we've got to move -- if i were donald trump, i'd move past the ford thing and move past the greg hayes carrier technology thing. i have a list of known companies that have indeed not moved to the united states that could have that i could add to the list. >> that moved -- >> that could have chosen to move to the united states that chose in all cases to go to mexico because it's so much cheaper and now with the peso -- initially they did it because it was as cheap as china but now it's much cheaper than china. >> ford and carrier got mentioned in the first five minutes. >> i know. >> then ford tweeted a response. there is no impact on u.s. jobs. >> mark fields said that over and over again. i'm not saying i feel bad for mark fields. i never feel bad for any ceo because that's something you cannot be allowed to do on tv.

but i have to tell you, it's not. it's mercedes benz, it's jaguar, it's mazda, it's toyota, it's bmw. these are all companies that could have built here. because of nafta they say, listen, it's just better to build there. 71% of auto parts go to the u.s. and mexico. >> so you'd be supporting trump's view? >> no. i am saying that the real issue is not jobs leaving our country, but the prospect of where to put your next plant. and any one of those companies i think would have -- i'm not -- am i in favor or against nafta. i'm just saying that here's some things that would have happened if nafta didn't exist. you could argue that they're the fourth largest exporter, seventh largest vehicle maker. i'm saying that's what i would have done is talked about not necessarily trying to keep ford here. i'm trying to be objective about ford. i think ford is being picked on unnecessarily. that's all i'm saying. and the way i would have approached it is here's companies that would have

logically built plants in our country, 3.5 million cars are now made in mexico that didn't used to be made in mexico. they always had some presence before nafta. now it's 3.5 million cars and a large part of them are put here. the issue is not whether ford moved or united technologietech carrier, but these plants would have come to our company if not for nafta. it's not about an american company taking jobs away, it's about companies from around the world who would logically put their plants in the united states. >> so when he says it's the worst trade dole not just in american history but world history, you don't agree? >> every one of those car companies we get cheaper cars from, so i don't know. that's the other side. bmw costs more, mercedes benz would cost more, nissan would cost more, honda would cost more. they would all cost more, so it's a trade-off. where i'm going here with this is not trump-clinton, but the idea is, is when you get rid of

nafta, you get rid of cheaper cars. cars would be more expensive. but you get jobs that would have come here. and that that's really the discussion i keep hoping for. he says listen, we've got to make the cars here. she would say but the cars might be too expensive so the working person gets hurt. that's the substantive discussion i would like to see happen. but it doesn't. instead it talks about mark fields and small cars. mark fields is not determining the policy. >> no, we didn't get a lot of substantive discussion in terms of any of the economic issues. mr. trump kept mentioning $20 trillion of the national debt but there was no discussion of what that number means or how we got there. and she kept talking about how his tax policies are going to add $5 trillion to that national debt but not connecting the two. nobody seemed to talk about infrastructure spending. he mentioned how our airports are terrible but no one went into detail on it or what their plan is even though both of them

apparently do have a plan for spending here in the states, although very differently. >> by the last third, we were talking about how mean the ads are and rosie o'donnell. >> the 400-pound comment was the one -- i'm thinking, geez, maybe i've got to go to that atlanta-saints game i've don't care about. then the 400-pound thing. the gif was very funny on twitter. so i'm following it on disney microsoft, sales force.com. google/twitter, thinking always of you about the real story here is who am i watching? am i watching microsoft, am i watching disney? and i knew you would provide me with that. >> i will, a little later in this show too. >> all right. >> in the meantime let's talk about how this is being seen through a political prism. our john harwood is here with more on last night's debate. >> good morning, carl. last night both candidates played to type. donald trump was the outsider,

the change agent, trying to cast hillary clinton as the voice of the establishment. hillary clinton tried to rebut that by questioning donald trump's business practices, his views on race and his failure to release his own taxes. >> maybe he doesn't want the american people, all of you watching tonight, to know that he's paid nothing in federal taxes, because the only years that anybody has ever seen were a couple of years when we had to turn them over to state authorities when he was trying to get a casino license and they showed he didn't pay any federal income tax. >> that makes me smart. >> cue donald trump's response, which was to say, hillary clinton, our economy is a mess and you haven't done anything about it. >> we're a debtor nation, we're a serious debtor nation, and we have a country that needs new roads, new tunnels, new bridges, new airports, new schools, new hospitals. and we don't have the money because it's been squandered on

so many of your ideas. >> and because you haven't paid any federal income tax for a lot of years. and the other thing i think is important -- >> it would be squandered too, believe me. >> the key question is what effect did that encounter have on the voters that both candidates most need to get? hillary clinton needs to firm up her base, especially with young people, and donald trump needs to attract more of the college educated white voters, especially women, that hillary clinton has been doing surprisingly well with for a democrat. it does not appear to me that he did anything to expand his appeal, but we're going to have to watch the poll its over the next couple of weeks and see if he did. >> and for those who argue, john, although the cnbc poll this morning says trump won, but you can read online a lot of discussion of clinton's supposed victory last night. does that sway anyone? and what happens in debate number two? >> well, history tells us that

voters interpret the debate in part influenced by what the news media describes. it was pretty widely viewed in most quarters of the news media that hillary clinton had a better night. and in my own sampling of democratic and republican political operatives and pollsters this morning, they share that consensus. better night for hillary clinton than for donald trump. but what we don't know is whether or not in the current media environment so influenced by social media, more polarized than we were in the past, whether that impact still holds. whether in fact there is going to be an echo effect from the news media coverage. the debate next week by the vice presidential nominees, mike pence and tim kaine, that may be an opportunity for the republican ticket to try to reset the narrative, try to come back at the democrats. we'll see if they can do that. that typically is not a high wattage event, the vice

presidential debate, and then of course there are two more encounters by donald trump and hillary clinton. rudy giuliani, one of the surrogates for donald trump, came into the spin room last night and suggested that he might advise donald trump not to participate in the last two because moderators are not fair. donald trump has not indicated he's not going to show up, so we'll see. i would think that he would show up because he is the one who's behind in this race. he needs to move votes more than she does. and those are big opportunities. not as big as the first one. that's the one that makes the deepest impression, but he's still got two more. >> indeed. a lot of people are being introduced to the race even at this late stage, john. we'll talk later this morning, john. thanks. >> i'm still trying to figure out the tax return thing. i'm audited every year. i just got my 2014, found out the results of 2014. i don't know why not show people what you put in? that's more important. they're not going to be like,

wow, he showed the return before the audit. there's no reason. i mean now if i were hillary clinton i would have said, well, there's no reason. i'm audited every year. here. i'm not running for president. but if you had to see my tax return, i would say it doesn't really matter. it's what i claim, not what they claim. >> right. >> it's a battle of the wills. i'll put in something. i'm very simple. i got the no investment thing. i just got our paychecks and i know he's got more complicated, but the fact is, is that it really doesn't matter what you put in is what the people would want to see, not what the government tells you. if you're trying to claim a lot of exemptions, that's more important than whether the government disallows the exemptions. >> as trump said last night it makes me smart, the degree too much he's able to work the tax system. >> the government does say you're allowed to avoid, you're not allowed to evade. every citizen has the right to try to avoid. david, i'm not by that list of car companies, i am just suggesting, does he have a tie from offshore?

i know that clothes got cheaper because of offshore. cars got cheaper because of offshore. i just think that the trade-off that i was hoping to hear is hillary saying, hey listen, you know, things would get very expensive in this country if we did not allow competition, if we did not allow stuff to come from overseas. and that's what matters. it's always that debate. i wanting the working people to not have to pay a fortune for ties, for clothes, for shirts. the way you do that is trade. i don't want us to get beaten by trade but that's the substance of any debate. why are our cars cheaper than they might be otherwise, is because of nafta, but nafta took the jobs. don't you think that's a -- do you think that's an elect trump stance? >> no. i'm thinking it's time to go to break. >> when we come back, the latest on this potential sale of twitter. some big names in the mix as possible bidders. the dow has had back-to-back triple-digit losses for the first time since brexit. more "squawk on the street" in a minute.

♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

we'll keep an eye on shares of twitter this morning. this after late yesterday we reported that things are moving at a quicker pace. of course not unexpected given the fact that this is now in the public realm, this being of course the fact that a number of

companies have expressed interest in buying twitter. and while sources close to the situation indicate there has not been a process yet set up, meaning a formal process, they are getting fairly close to doing that. >> we reported on friday of sales forces that continues to be the most aggressive company, i'm told, joined by google, disney as well. certainly we had anticipated that would have been a possibility. and microsoft also seen as potentially willing to take a look. interestingly, sources indicate facebook not interested at this point in twitter. >> that makes sense. >> the price has moved up. it moved up again yesterday after our report that the timeline for trying to get something done is now between 30 and 45 days. certainly moved in from what has been a deal prior to year end

but that's not atypical, guys, because when you do have stuff out there now, you want to try to wrap it up one way or the other as quickly as possible. the question, jim, becomes the price itself. you know, how much is disney confined by the four walls of eps and the fact that taking on that stock-based compensation could be very dilutive to its overall earnings. where is salesforce willing to go in terms of a bid and would google allow a salesforce to come in when it's seen as having a key potential property for its growing. >> it is fascinating because there have been a punch of notes, bob peck today they see a big downside. disney wants it for an entirely different reason. disney wants it to, i believe, not like anyone is saying, this is what i am saying, but it makes a ton of sense to merge it with their baseball technology because it works already.

>> and what happens to other content providers who don't want to be on a platform owned by a rival? >> well, that's why i think they have to really think this through, because it would -- it may not be as additive to earnings. facebook doesn't need it, they already offer you what a client wants. >> by the way, that is not to say -- we've confirmed disney, potentially microsoft, salesforce and google, it does not mean there may not be others that come to the fore, particularly as this moves -- >> how many? how many? >> i don't know. >> how could this be down four when everyone walks away. everyone is kicking the tires like some lemon? >> a lot of people kick the tires, take a look. we don't have a formal bid as yet so we don't have full price discovery. that's the question, jim, because many analysts say fundamentally it's hard to argue for a price up here. at the same time, if you have two companies that want to own this, all bets are off. >> you can't look at this as what it is, which is a couple of

people putting in funny things during a debate. what they know about you, facebook is so available, so great, they don't need it. they know a ton about you. they know too much about you. twitter knows a lot about you, provided what you tell them. and so, therefore, as a customer tool of retention, twitter is ideal. that's why salesforce is most interested. it's great customer retention. great to know what a customer really wants. great to direct a message to the customer and know that it's that person because it's verified. not like bozo 6532 but actual names. >> i have seen some of bozo -- >> that's me actually. >> oh, good. >> does that negate twitter's big push which is it's all about live and what's happening at this exact moment? >> i think that you want to keep people active so that they stay with it in order to be able to tell you other things. that's a good draw. but the real -- that's ancillary to the main mission if you're a

sales force, which is to be able to say to a procter & gamble, look, i know all these people are really interested in x. using einstein, the people who are interested in x might buy head & shoulders. the people interested in y might buy gillette blades. got me? >> got you. i do. i've got you. are knows gillette blades made in mexico? >> we're going to get cramer's mad dash, count down to the opening bell, take a look at the premarket. more straight ahead. romantic, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. 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,

or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. stop taking cialis and get medical help right away. so i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices. the market's hot. sync your platform on any device with thinkorswim. only at td ameritrade. man: ♪ you're beautiful [click] ♪ i'm coming back to you [click]

in six minutes we'll get an opening bell here. fang, it's a term you actually coined. >> i did create that but i don't get enough credit. you know what, i don't get enough credit. my mother was a saint but they'll never write a book about her. who said that? nixon. >> thank you. >> oh, my god, look at this. f, a, n. g, eagles! get this, david. all these raising price targets. david, they are raising price targets. and it never ends. it never ends. just when you think that

f.a.n.g. is on the canvas, knocked out, it becomes once again g.o.a.t. what's g.o.a.t.? >> what is g.o.a.t.? >> greatest of all time. the great muhammed ali did patent g.o.a.t. he trade marked it. now, this group has been under pressure. netflix has been selling every day. amazon people feel has moved already. facebook, we're still worried about the media overage and google to me -- >> to me this feels like the name that doesn't belong. i don't know. that's fa, a note that follows doe. >> this will bring us back to -- >> jam and bread, yeah. >> sound of music. the hills are alive with fa. >> julie andrews. what a beautiful voice he had. >> anyway, f.a. we are taking netflix out. ever since you interviewed joe

sie and it sounded like the greatest story ever told, right? it was like the hills are alive with the sound of ali baba. >> we've got the opening bell. i don't know where we're going today. we're in some weird territory here on "squawk on the street," but stay with us.

i grtook a job o a toughi didn't love. i wanted a flexible and rewarding job, and i was always interested in web development, so i joined coursera. coursera offers affordable online courses from the world's best universities. advance your career in fields like business, computer science, data science and more. in less than a year, and for just a few hundred dollars, i learned to design and build websites. now i have a successful career as a freelance web developer. join coursera.org for free, and start your future today.

you're watching cnbc's "squawk on the street" live from the financial capital of the world. the opening bell in about 60 seconds. four sessions left in september and the third quarter. of course we're all reacting to the presidential debate last night, trying to find ways in which various assets responded. already people are watching index options that expire november 11th, which imply 2% moves in the market around election day. >> these things are so hard. i try to go individual stocks and it's been very difficult to try to figure out which ones could really win. just focus on companies, focus on companies. >> let's get to the opening bell here at the s&p at the bottom of

your screen. at the big board it's jm morgan asset management celebrating it's diverse niified alternativ atf. a loud crowd here from the jpm today. >> they have got a lot of people. bank stocks are under tremendous pressure. just gave up the ghosts. >> they really have. it's funny, we've had a lot of people come on and talk about john stumpf's future. it is decidedly negative. >> i thought someone would mention that last night in the debate. i thought wells fargo would come up. >> he's appearing later this week. mr. stumpf, the ceo of wells fargo, before the house. we haven't talked about it in a couple of days. >> i think that the board should have -- they hired a law firm to look, but i had thought by this point they would have already suggested some pay cuts and some call backs in order to be able

to blunt what i think is a very populist charge against wells fargo. i don't say whether that's right or wrong, but i just think that would have been a smart move by the company. they have got to get past this. this is a little different. this is not deutsche bank where we're worried about financing. >> no. >> but it is an embarrassment and i think that you have to take action in order to not be embarrassed yet. >> yeah, you're right. deutsche bank is still worth talking about, but it is interesting to note. jpmorgan has a larger market cap than does wells fargo and is the best in a bad bunch of down a little more than 1% for the year. given that recent sell-off from wells fargo, we're talking about shares down almost 18% this year. >> it's interesting that donald trump did say there would be a crash if they raise rates dramatically. that was the only real reference to the stock market is that it's a bubble and we'd crash. you know, i think that -- i always hate to hear the term

"crash" thrown about. i think you've got to be careful with that. if they don't raise the rates a lot there will be no crash. i was trying to come up with direct references to the stock market. trump put that out there. i thought that stumpf's pay would come up, i thought that the issues of bank indiscretion. >> i thought a lot of things would come up. the clinton foundation, benghazi, a host of issues never mentioned once. and yellen did get a shoutout in a bad way for being hyperpolitical. >> right. that was something. >> if you've been listening to both candidates, you really didn't hear anything you haven't heard before. >> no. that's why i thought -- that's why i mentioned that ford thing at the beginning and carrier. i was hoping for new examples but didn't get that. i was just hoping for that, just to mang it a little more exciting. how about a 600 navy ship, like reagan did. like reagan did this -- he had a speech and he had a debate where he said he's going to build 600 ships. the next day, you saw these ship

companies just, boom. it's not like that this time. >> we do have some research, though. we've got some calls on auto zone. morgan stanley takes it to an overweight on a generation of older vehicles on the road. >> i love that call. the average call is 12 years. they're talking about a seven-year inflection point. the buy-back is back. it's aggressive. this is a company that i think should be bought and bought aggressively because the buy back comes right underneath it. i thought the piece made a lot of sense. >> smucker, goes to neutral. this is going to be the lowest since -- >> this is that price war. >> to june. >> the price war involving pet food is extraordinary. >> i didn't know that. >> it's online, at petsmart, it's everywhere and they're caught up in the price war. i did not see -- i did not see there would be a radical price war but there's radical price wars in every aisle of the supermarket. every aisle there's price wars. every aisle. if you ever went to the supermarket, you'd know that. >> i was at a supermarket a

couple of weeks back. >> a couple of weeks back? i go to the supermarket three days a week. >> i don't know how you do it. >> it's called life. >> jim cramer shopping in the supermark supermarket? >> they were out of chickens. i said where's the rotisserie chickens? they know me. hey, we had six of them and they went like that. i tried to reserve a chicken. i called ahead and they said, sorry, we don't do them. i ended up having sushi. >> this is a story out looking at egg prices. eight cents. 12 eggs for 99 cents. a year ago you would have paid three times that price. >> it is -- there are bargains. but you still don't get the buy one, get one that i used to like for cereal. you just don't get that anymore. there's like a million different kinds of cereal. i happen to like granola. a particular brand. do you know which brand? >> my wife's. >> that is the best. i have it every morning. >> she stole danny meyer's

recipe. >> it's better than anything he has. i love your wife's granola. and i have a little bit every morning. >> there has been food deflation. we've heard walmart talk about it and others talk about it. >> we didn't mention target, new merchandiser. target has a bit of a revolving door philosophy there in management lately. >> we mentioned the banks at the outset. it is worth taking a look at deutsche bank again. it's actually coming back a bit. >> oh, look at that. >> if you are a deutsche bank employee being compensated in stock or you're here in the states and they still do have -- to your point yesterday, it's not a huge workforce, it's sizeable. they had a significant presence in the fixed income markets here for many years. >> huge. >> you've got to be suffering right near the 52-week low. >> no one ever wants to hear anyone complain about a banker's paycheck, david. >> i know they don't. but what i guess i'm trying to express is that it's difficult to retain talent. >> yes, it really is.

>> and you've had a number of banks in our market, the foreign banks, whether it be deutsche bank certainly or even barclays or a credit suisse that are perhaps not the competitors they once were with some of our formidable competitors, jpmor n jpmorgan, morgan stanley and the boutiques that focus on m & a. >> i asked would anyone buy lloyd's? the world bank of scotland? these are just out there kind of the way we were when tim geithner was saying everyone has got to raise equity. >> what have you got? >> deutsche bank is up on the day. >> did you say something? >> i didn't. >> it's not like twitter? >> speaking of compensation that people don't care to hear about, hedge funds, of course, the most highly compensated of all, still trying to cling to 2 and 20. worth noting, one of the bigger ones, certainly one of the early

ones, perry capital more or less closing down in a lot of ways. a letter out yesterday. it's not a big surprise, by the way, to many people who are sort of familiar with it. mr. perry had stopped putting on any new positions. the size of the firm has dramatically decreased in terms of assets under management, and its performance, there it is, the key to the part of the letter. although i continue to believe very strongly in our investments, process and team, the industry and market headwinds against us have been strong, mr. perry wrote, and the timing for success in our positions too unpredict al. they hold a large stake in barney's. but they were up nicely in '12 and '13, but '14 down 3, '15 down 12. this year has been a somewhat difficult one. and that's what happens. i'm not sure it's indicative of anything beyond just a lack of performance. money follows it. >> ritchie perry was my future at goldman, one of my oldest friends, terrific guy. you know what, i feel like this is very unfortunate what have

you done for me lately business because this is a man who had a track record 30 years long, we were in a tough business, they are in a tough business. but ritchie is a genius. he's fabulous, he's a giving guy, fantastic. and i think that -- >> no, i know. >> look, i have friends, i can't help it. ritchie taught me. i sat next to him. he didn't ask me to go get coffee or anything of those things that i ask. i like the interns. but i just sat next to him and he taught me. and i saw him this summer. i don't know, i just like him. and he'll do great. >> he's going to be just fine. >> he's a terrific guy. >> so i'm not sure there's a broader lesson here in terms of hedge funds. though there certainly is fee comprehension when -- compressi when it comes to the industry. you've got to generate some alpha. >> delivering danger? how did some of the companies that we -- solar city, we talked

about that being short. that's not necessarily being a great stock. but amazon, bill miller has been great about that. there's been some alpha delivered, david. >> so far. >> ali baba delivered morale fa. that was not our panel necessarily, but there was so much alpha delivery that we're changing f.a.n.g. to f.a. that's how much alpha there was. >> there's amex news. this appeals court tossing out an antitrust case. >> that was a big win for them and a lot of people felt they took a lot of risk there and it turned out to be good. i'm surprised the stock is only up 52 cents, but we're in a tough market. i think the stock is probably an interesting buy here. that was one of my biggest fears. interesting. >> and then caesar's striking a deal to end the bankruptcy of the company's main unit, striking a deal with most of the

unit's creditors. >> that's been a disaster. >> it really has. >> wow, nothing good there. >> but you know what's good? kite, fantastic news. any time that there's success on these drugs, i always get very excited because it means that people's lives have -- you know, there's extension, they're doing great things. but amgen, amgen has a drug that i thought would have done better. amgen is down, but you'll see kite up and i think that this is just one of those situations where there's just great science being done on immunotherapy. what we ought to be focused on is the endless number of underwritings. they issued millions of units. rice buys vantage, that's marcellus natural gas. they sell 40 million shares. this remains a theme coming right to the market. nor dick american tankers completely pans every single

shareholder and issues 11 million shares. i don't know, there's a lot of equequity being offered and it' in these particular areas. >> the dow is not doing a whole lot although the ten-year is down. let's get over to dominic chu. >> you hit a lot of those points and we want to emphasize the ten-year yields at 1.55%. they are at least giving a little bit of pauop and strengt to certain parts of the market. remember, we are -- now we're positive, 25 points to the upside for the dow. nasdaq showing 12 points and the s&p up about 2. the leaders so far in early trading had been utilities and staples so those interest rates proxies, the bond-like stocks. it was energy and it was financials that were lagging, but it looks like we're getting at least a little bit of a tick up. energy prices dipping of course

there. david mentioned deutsche bank. we want to revisit that because the european markets, we did see them trying to kind of show a little bit of strength in the early part of their sessions. they gave some of that back. those major european markets still in the red right now trying to move back to positive territory. if we look at the footsie 100 and the uk, they're starting to get a little bit more. deutsche bank near historic lows again in session today and of course commerce bank, they're a huge german lender as well saying they're going to cut 9,000 jobs. certainly those financials in focus for many parts of the market here in the united states. we'll watch our money center banks and the regionals as well. also want to point out what's happening with oil, oil prices. we saw big gains yesterday and the last couple of days. now we're not seeing as much optimism. iran is not going to do very much. saudi arabia, they can't agree. those oil prices down, taking energy shares along with them.

goldman sachs is coming out saying their q4 target price for crude oil, wti $43 a barrel. those supply/demand imbalances not working out the way they thought they were going to earlier on this year. more supply coming to market. those prices going lower. so oil prices a big focus in trading today, but everything else that we're talking about today is going to be about those financials and everything else that's happening. we'll keep an eye on yields, carl, back over to you. >> thanks. lets get over to rick santelli and check in with him at the cme. >> good morning, carl. we are watching the german deals really change the complexion of the market. you'll see the charts really say it all. look at the chart of our ten-year and you can see it started to drift. what started to drift in a much more aggressive fashion was the 24-hour bund chart. look at year to date. and remember the all-time low

closing yield was minus 17.9, 18.9 so minus 19 on july 8th. you can see it on the year-to-date chart. we are getting very close. and of course what does that do? it widens the distance between our yield on tens, even though it's going down, because bunds are going down faster. if you look at the differential on a year-to-date basis, we're flirting with the top of the range at 170. this is very critical because theoretically if we are going to stay attached at the hip, because all central bank policy is -- if they do something good or something bad with policy in the eurozone or the bank of japan, it has just as dramatic effect on the global economy and the united states as well, so we want to watch if this breaks the mold and it starts to get above 170 or if the ten-year knuckles under and starts to move back into that 155 to 165 differential range. now, it wasn't only limited to what's going on in the bund.

the japanese government bonds paying attention as well, trading around 7, minus seven basis points. we could comp it back to august, but it isn't the comp here, it's the fact of how they're all moving together. that's what we want to pay close attention to. even though the dollar index is up today, if you look at one chart that puts it in better perspective, the foreign exchange markets are going to be moving a lot. whether they move us on the interest rate differential or vice versa, there's a lot of out of bounds trading going on here in the foreign exchange market, so we look especially towards the euro and the yen given the moves in the fixed income market. carl, back to you. >> rick, we'll talk to you in a bit. rick santelli in chicago. coming up, lots on the internet ad front with facebook's coo sheryl sandberg this morning. coming up tomorrow, an exclusive interview with christine lagarde. that's going to be right here only on cnbc. a mild start to the morning, the dow is up about 15 points. don't go away. the pursuit of healthier.

it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen.

believe me, we're in a bubble right now. and the only thing that looks good is the stock market, but if you raise interest rates even a little bit, that's going to come crashing down. we are in a big, fat, ugly bubble. and we better be awfully careful. and we have a fed that's doing political things. this janet yellen of the fed, the fed is doing political by keeping the interest rates at this level and, believe me, the day obama goes off and he leaves and he goes out to the golf course for the rest of his life to play golf, when they raise interest rates, you're going to see some very bad things happen because the fed is not doing their job. the fed is being more political than secretary clinton. >> you will see some very bad things happen. that sounds like a tantrum, temper tantrum of sorts.

>> i don't know, look, everybody kind of knows that every time we have one of these fed meetings, yes, if they do raise rates dramatically, there would be a fundamental shift in the market. i think that no one is talking about doing that, but he may feel that janet yellen is playing political, but i think that what are they doing around the world? around the world we've got pretty low rates. >> listen, trump has -- mr. trump has been saying this for a while, so, again, he said this on our network any number of times in interviews he's done on "squawk box." and i do think people tend to be focused on interest rates. >> why not. you have a lot of companies -- you want to own the medical trust that just issued medical properties trust, 50 million shares at 14.50. you don't own that for the yield. there's a lot of real estate investment trusts for the yield. >> i don't like when you get quiet, it makes me uncomfortable. >> i don't want to -- i hate politics. i have hated politics all my life. >> it's glaringly obvious.

>> i grew up in a house where my mom said you don't talk politics, period. i want to talk about that debate about workers versus -- no, i cringe. i don't like politics. i admit it. >> it's a tough cycle on everyone, that's for sure. >> i just don't like it. >> after a short break, the dow is up 15 points. don't go too far. narrator: the best place to find adventure... kubo: come on, this way. narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: it's beautiful. narrator: visit discovertheforest.org to find the closest forest or park to you.

(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store.

it's time for cramer and stop trading. >> i debated going back to f.a.n.g. because ali baba is moving up well but forget the hepc franchise. i said gilead has a lot of capital. may i suggest they buy gw pharma. vivitrol is an anti-opiate. i believe the long run hope for gw pharma is to get our country off the hook of opiates, which remains to me the hidden and secret epidemic that no one is talking about. both candidates should address

it. it is happening all over this country. people are dying from black tar heroin and opiate addiction. the only companies doing about it is richard pops and gw pharma if the company lets them. >> the gilead, which did a bond offering and which we pointed out recently so many times has more balance sheet capacity than any pharma company, period. >> including the pfizers of the world. >> it goes the route of allergan and we might assume it goes the bigger route. >> i think gilead is a very conservative company. they did one big acquisition for $11 billion. if they can find more $11 billions, i think they would do that. gw pharma is about $3.5 billion. they should do that. i think they're a great company. >> it has been a -- >> i will not -- there's a book called "dreamland." people have to read it. people have to understand what's going on in our country.

between black tar and opiates, there's people all over the country, epidemic. never gets talked about except from richard pops. >> there's an explosion this morning in the new york area that appears to be some sort of meth lab. >> really? >> it's everywhere. jim, what's on "mad" tonight? >> one of the hottest stocks in this market and a company that i really love is thor industries, which is the largest maker of trailers, motor homes. it's the way millennials travel and i sure want to. i want to see the country in one of these. we're going to talk about that. they had a great quarter last night. i'm very excited about that. fah, a long, long way to go, right? >> yes. >> facebook, amazon, ali baba and f.a.a. that's because there's a reluctant to put in netflix. they changed the name google. we've got to start calling them f.a.a. t, a drink with verizon, t-mobile and sprint.

>> "mad money" at 6:00 p.m. when we come back, more reaction to last night's debate. we'll talk to austan goolsbee and larry kudlow. the dowes up 38. es up 38. ♪jake reese, "day to feel alive"♪ies u. ♪jake reese, "day to feel alive"♪ announcer: don't let salmonella get funky with your chicken. on average, one in 6 americans will get a foodborne illness this year. so, learn the right temperature to cook each type of meat. keep your family safe at foodsafety.gov.

♪ good tuesday morning, welcome back to "squawk on the street." sara eisen is off today. pretty mild start to the morning. the dow is up about 50 points or so. we're watching oil closely on some of these conflicting headlines out of algiers. also some economic data crossing the tape and for that we'll go to rick santelli. rick. >> wow, we have a big number for the september read on consumer confidence from the conference board. we're looking for a number a little south of 100. we ended up way north, head north! 104.1. that's the new high of the year. boy, i have to go back quite a ways to get a higher number, but i'm going to because i think context is important in this instance. so it looks to me like we're going back towards about 19 -- excuse me, just kidding. 2007.

2007 around august. now, we look at richmond fed and we're looking for a number lightly negative. this one went the other direction, minus 8, minus 8. the last number was minus 11 so there's your context. this is the fourth negative read of the year for the richmond fed. but yes, consumer confidence a bit of a blowout. my guess is there's many that were paying attention to sort of the helium side effects of the stock market, but of course we're going to have to see -- this proves to be a bit of a lagging indicator, but nonetheless it's very significant to get in the psyche of investors. carl and the gang, back to you. >> thank you very much, rick santelli. it is one for the history books, donald trump facing off against hillary clinton in their first presidential debate last night, an event which offered clear contrasts in both personality and policy. the candidates at odds on issues like jobs, trade, taxes, and how best to grow the economy. here's clinton trying to take a swipe at trump's plans. >> independent experts have

looked at what i've proposed and looked at what donald has proposed and basically they have said this. that if his tax plan which would blow up the debt by over $5 trillion and would in some instances disadvantage middle class families compared to the wealthy were to go into eechffe we would lose 3.5 million jobs and maybe have another recession. >> for more let's bring in cnbc senior contributor larry kudlow and formal economic advisor to the trump campaign and former white house counsel of economic advisers chair austan goolsbee, an informal advisor to the clinton campaign. guys, good morning to you both. larry, let's get you to respond to the tuesday morning quarterbacks, as it were. what did you think of last night? >> you know, i don't think there are any knockdown blows, i'm not sure much changed. it's funny, i was in the hall. i didn't think mr. trump did very well but there was a sound

system problem through his mike. i came back home and watched the replay on the tape, he looked much better to me. i just have to take great exception to what mrs. clinton said on the economy. she's using mark zandy's estimates. i just don't buy it. the tax foundation has her tax hike. she's got across the board tax hikes. austan is going to agree with me but i'm going to stay with it. the foundation says they lose 1% on gdp, 3% on capital investment, the wage rate goes down 1% and she loses 300,000 jobs. trump's, on the other hand, with across-the-board tax cuts, particularly large and small business, his gdp is up 7%, capital investment 24, wages up 6, full-time equivalent jobs 2 million. i mean i believe that he has a recovery prosperity plan based on the jfk/reagan model of lower tax rates. i believe mrs. clinton with her

tax hikes really has a recession austerity plan. >> austan, if larry is right, did that come through last night? >> no, of course not. poor larry, i knew it was going to be a tough spot for me but i knew he would be honest. a, donald trump is in the cup cushi -- concussion protocol this morning. the monday night football was not very kind to him. he did not describe his tax plan in any level of detail the way that larry is trying to describe it. he was, i thought, basically out of his league. i mean he was mixing up -- he couldn't tell the difference between vat taxes and tariffs. all he kept saying was it's the biggest tax cut since reagan. and when hillary clinton went after him and said, well, wait a minute, your tax plan is going to raise taxes on a bunch of people in the middle class and be the biggest tax cut for high income people ever, his answer was, well, those high-income

people are going to do great things for this country. i thought it was really not his finest moment. >> but i will say this, it may not have been his finest moment. i'm not sure i want to disagree with you about that. i think he could have hammered home a lot of interesting points on the growth story. but you look at his middle class stuff. first of all, the individual rates go down to 12 and 25. that's a big plus for the middle. >> but there's some who pay 10 now. that's the problem. some people's taxes are going up and they're low to middle income workers. >> he's giving a much bigger standard deduction to middle income people, that's very important. he's also got good child care policies in there to help middle income people. finally, austan, you and i don't agree on this, but i'm going to argue as i always do that the best way to raise middle income wages is to slash business tax rates for large and small companies. and that's what this tax foundation study shows.

that is a tried and true. we haven't had -- we're not competitive around the world. mrs. clinton wants to raise taxes on individuals. she wants to raise taxes on corporations, capital gains, stock market transactions. >> high income people. >> that is not a prescription for economic growth. >> larry is having the debate that he wishes donald trump were talking about, but it wasn't. that's not donald trump's program. >> both sides are trying. >> he is breaking larry's heart. there was donald trump condemning trade, condemning internationalism. >> speaking of trade, i thought one of the better exchanges happened early on with regard to nafta. this is donald trump and hillary clinton going around the table on that trade deal. >> your husband signed nafta, which was one of the worst things that ever happened. >> well, that's your opinion. that is your opinion. >> you go to new england, you go to ohio, pennsylvania, you go anywhere you want, secretary clinton, and you will see

devastation where manufacturing is down 30, 40, sometimes 50%. nafta is the worst trade deal maybe ever signed anywhere, but certainly ever signed in this country. >> if he ever had her on the ropes, it was regarding that and tpp and the gold standard comment, which in fact she did make early on, although she tried to deny it last night. >> he had her on the ropes, i agree. i think he had her on the ropes on a lot of places but wasn't able to deliver a knockout punch, including taxes. i want to add regulations. he's got a deregulation program. she has a re-regulation program. financials, energy, she wants to end fracking. you know, trump on obamacare, i think he made a mistake not talking about obamacare. it's the second or third most important issue after the economy in every single poll. obamacare is a massive government regulation. she wants to nationalize health care. obamacare is a job killer. he should have gone there but i will say in honesty to you and my friend, austan and others, i don't think nafta was the worst

thing we've ever done. i must disagree respectfully, mr. trump. you know i've worked with him on some things. he knows we disagree. i think the border adjustment tax should be evened out. our goods are tariffed in mexico but there's no duty on mexico goods coming here. we can fix that. but on the whole, i think nafta is a good thing, not a bad thing. i think china is the real culprit on breaking trade deals. >> austan, just on a pure economics perspective, we had one candidate who is decrying the loss of manufacturing jobs, which has been going on for 50 years, and blaming a couple of trade deals. the other candidate using trickledown economics, 19 191980s-era villain, saying that's going to implode the economy again. both sides trying to find villains for a 2% economy, which is what we have. is anything out there in terms of real policy proposals going to change the normal pace of what this economy is capable of? >> well, over what time period i guess i'd ask. i think that the stuff that secretary clinton was talking

about, investing in our own workforce that she classified it under the we've got to unite and have growth that is shared prosperity, i think investing in human capital is a huge payoff and that is the kind of thing that will increase your productivity, increase your growth rate, but that's not a three-month type of thing. >> but austan, look, you know this for heaven's sakes. you want better productivity, which is absolutely essential for standards of living and wages and so forth. we have got to invest heavily, businesses have got to make the capital investments. we've got to have favorable repatriation for the $2, $3 trillion overseas. that's essential. mrs. clinton doesn't have that. trump is for school choice, he's for charters and school choice in education. that's a great investment in human capital. mrs. clinton is opposed to that because the teachers union won't let her have it. >> guys, larry, i'm sorry to

stop you for a minute. we've got some breaking news that we want to get to will fred frost on. wells fargo, i believe. take it away. >> dow jones reporting that wells fargo's board actively considering executive call backs. they're citing a source saying this involves the former retail banking head and ceo, john stumpf. the story saying they're planning to announce a new executive compensation decision. we have the house hearing this week. i've spoken to the company. they have no comment on this but just for some general scene setting, as we approach the second hearing following the rather poor performance in the first hearing, we are expecting a more gracious tone of apology from the bank and one of the topics that came up repeatedly in the first hearing was the

issue of claw backs so if we did get a big decision ahead of the hearing on thursday it would be a sign that the bank is willing to go a step further in terms of the apologies they wish to make for this recent scandal. >> okay, wilfred, thank you. we'll be monitoring and looking forward to mr. stumpf's return to capitol hill a couple of days from now. >> he was terrible. i thought he was terrible. >> he did not do a particularly strong job, i think that's true. >> and they waited, they waited so long. he knew this stuff a couple of years back. i mean you're the expert, not me, but i just think he blew the hearing. i think he's blown the whole thing. i don't want to sound too much like elizabeth warren. >> i don't think there's any danger of that. >> on this one, she may have it a quarter right. >> on the debate, do you expect him to outline his policies in the detail you just did? >> i think he'll get stronger as the debates go on. i think this debate was, frankly, inconclusive. i mean trump didn't have any big

stumbles, he survived okay. >> but you said missed opportunities. >> i think so. i think he had her on the ropes, particularly on the economy. he didn't make the final hammer punch. he didn't talk about obamacare. he should have hammered away on energy. he mentioned it but she wants to blow up the whole fossil fuel system. that would be horrible for the united states. foreign policy, i didn't hear much from either of them if you want to know the truth. it's about the economy. it's about the economy. >> i thought he made a couple of potentially serious gaffes in that, a, he ranted about things he doesn't like but he again demonstrated virtually no content of his own other than just saying i have a huge tax cut. when they press him on any details, he didn't have them. second, he opened up so many fronts of this mixture of his personal business and his personality with what he would do as president. so hillary clinton started on him about, well, you don't pay any taxes and then he said,

well, that just makes me smart. and then she said you stiffed small businesses and he said, well, i'm just looking out for myself and my family and that's what the laws allow me to do. and then the whole thing at the end about the beauty contestant, i thought all three of those, plus him interrupting her over and over and making faces and moaning and sighing, i thought all of that is going to come back. we're now going to talk about all of those things for two weeks until we go to the next debate and he's going to be on the defensive about it. >> you know, i'll concede, ausstan, one point. when mrs. clinton had trump talking about his business, he was not playing on the ground he wants to play on. and i think he should have been faster and come back on that and summarized his position. but i did think he had a great repost. he basically said, you know, i'll release my tax forms if you release the 30,000 missing e-mails. i think that was a line to remember. she didn't have a response to

that. i think he should have hammered more on the e-mail issue. i'm surprised that the moderator didn't hammer more on that. i think trump spent too much time on the birther issue. i think he should have dismissed that. you know, i've been debating so many years, i almost do it for a living. the kudlow rule on debates, very simple. it's not what you ask me, carl, it's what my message is going to be, no matter what you ask me. >> yes. >> if you say, larry, i think it's going to be 70 degrees average for the month of october. i said, you know, that's nice, carl, you may be right, but much more importantly i'm cutting corporate tax rates across the board. i think mr. trump has to be more effective in learning the kudlow rule. >> is the lesson there, larry, that winging it, so to speak, which got him farther than anybody ever thought, doesn't work now? >> i don't want to say he was winging it last night. look, i've spent time with him. he knows a lot about these things. did he get it all out last night? probably not. did mrs. clinton get it all?

i mean mrs. clinton is blaming george bush's small tax cuts on the financial meltdown. i'm not sure either of them really shined 1 00%. >> i think there's people saying -- >> austan, no knockdown. >> it wasn't a knockout but there's people saying that this was a sign that donald trump didn't prepare. but i really don't agree with that. i think it's hard work making yourself look as hard as he looked and he did it. >> oh, stop it, austan. if i could get you and hereto sit down, honest to goodness, you may disagree on some things, but you'd agree on some things. but you'd like him. you'd say, you know what, this is a smart guy that's very engaged. you're giving him a big rap. >> i absolutely do not want him as the president. >> i understand. >> i think he's very dangerous. but he may be a nice guy. >> i don't want mrs. clinton because i don't think she has a

prosperity plan. i think her tax hikes and re-regulation of a recession plan. >> it's only on the rich folks like yourself, larry, it's not across the board. >> austan, you get yourself here in the city, i'm buying you dinner. that's my promise. >> it would be good seeing you again. >> i like that. we'll close it on that note. austan goolsbee and sir larry kudlow. >> thanks for having us. coming up we'll have a lot more on the debate. we'll break down the candidates' stances on taxes with bill george next. later on "squawk alley" at 11:00 a.m. eastern time, facebook coo, sheryl sandberg. stay with us, "squawk on the street" coming right back. what's happening here? this is my new alert system for whenever anything happens in the market.

but thinkorswim already lets you create custom alerts for all the things that are important to you. i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade.

pg&i help customerss, how with their bills.day? there's different rates to fit different needs, so listening is a huge part of my job. because customers want to know that you hear them. they have kids, they have families, they have priorities. i definitely understand that. i have three children, i was a stay at home mom, i didn't have money to pay the bills, and so i put myself in their shoes. and i'm going to do all that i can to lower their bills

and to help their situation. to choose the rate plan that works best for your family, visit pge.com/rates. together, we're building a better california. corporate taxes, one of the many issues brought up in last night's presidential debate. donald trump likening his plan to one of the ronald reagan era. take a listen. >> under my plan, i'll be reducing taxes tremendously from 35% to 15% for companies, small and big businesses. that's going to be a job creator like we haven't seen since ronald reagan. it's going to be a beautiful thing to watch. companies will come, they will build, they will expand. new companies will start and i look very, very much forward to

doing it. we have to renegotiate our trade deals and we have to stop these countries from stealing our companies and our jobs. >> hillary clinton later referred to the plan as trumped up, trickledown economics. joining us now is cnbc contributor bill george. bill, where do you come down on there in terms of -- it's a global marketplace for corporations, as we well know. in fact your former company, medtronic, made that very move to invert. you know, getting a lower tax rate is part of what you want to do, it would seem to me as a ceo. does trump have a point here? where do you see this playing out? >> that's about the only point i think i agree with donald on. i think clearly we need to reform the corporate tax system. we need to stop -- the only way to stop inversion, frankly, is to either go to a territorial tax in the u.s., as mike porter recommended on cnbc a couple of weeks ago, and really clean it up so that global companies are

on level playing fields to compete across the globe. there's where the big jobs are. you talk about small business. big business is one that's creating the contracts for small business, so these things do go hand in hand. i totally disagree with trump on trade and hillary, by the way, and i think business people need to speak out because trade -- going against trade is a huge issue. he's created 3.5 million jobs over the last ten years. i think we need to get back to a growth economy. our best opportunities are the fact that we have vibrant global companies in america who can compete across the globe. an i think we want to encourage that with an equitable tax system. we're not going to 15%. that will never get 60 votes in the senate. but i think something down in the mid to low 20s and i think eliminating some of the loopholes and trying to equalize things. frankly a territorial tax would be the best way to do that, to clean up some of the issues. but until we get to the real issues underlying trade, such as

education of our workforce, we're not going to correct the problems. it's not about trade, it's about globalization -- it's about technology and how that's changed our workforce. >> you know, that's a great point, of course. i found myself wondering, the discussion of future issues that i think you're referring to, bill, for example the rise of automation even more so and simply the displacement of jobs that may take place. think about the autonomous automobile, for example. you're not hearing anything in the debate about what those challenges are going to represent, it would seem. >> yeah. let me give you an example. ford has done an amazing job under allen malalli and mark fields and really brought the company back and made them very competitive dploeglobally. they're exporting all over the world and very competitive in the u.s. but it takes 10% has many workers to produce an automobile today as it did 20 years ago. we create more jobs for those

people by being more vibrant. but that's not about trade, that's not about nafta. and the ford plant in mexico, they're expanding jobs in michigan. they needed more production capacity of their large vehicles and the small vehicles in mexico. this is called global manufacturing plan. all the global companies i know do that. i do not know one company that is going to bring jobs back, as trump has talked about. i feel sorry for those workers in many states where they haven't had any advanced education in the last 40 years and no additional training. we need to give them that. finally after eight years of trying, paul ryan and obama agreed on a job retraining plan but we need a lot more of that. that's what germany has done and we need to get more people going to vo-tech schools. it's not just about college, it's about having the skills to do tomorrow's workforce and that's where the emphasis has got to be if we're going to be competitive in the global world.

i don't see either candidate talk about that. i'd like to see a lot more ceos talking about it. i think they're all holding back, they're scared, but they need to speak out. >> maybe the jobs aren't going to be coming back but one of the few areas of apparent agreement between the two candidates was trying to find a way to have some of the overseas profits big companies are holding come back to the u.s., find some mechanism to have that cash repatriated here, perhaps with some strings attached. is that something that you think big companies will be making a big push for here? >> yes, and i think we should. i've spoken on this show about that. there's two ways to do it. have a repatriation holiday and say cut taxes in half, say 17.5% for a period of six months. but i think they would have to presenting a plan to the secretary of the treasury that they will reinvest that in hard assets, in r & d, in capital equipment and training of their workforce. if they could do that, i'd be all for it. but inevitably, we've got to fix

the core problem. the 35% rate is just too high. we've got to bring that down so it's more competitive with other developed nations. we're at the top end of all developed nations. we've got to be competitive. then the global manufacturing picture would look much better, because we have the technology. we have the technology in this country and we should be producing against that technology if we have the trained workforce. there's 5.4 million jobs we can't fill today. unfortunately, can't fill them with a lot of workers that don't have the skills, so we need to build the skills for the workforce of the future, stop worrying about the workforce of the past. i feel sorry for those people, but it's not going to happen until people have the skills. >> bill, quick turn here to end things. you wrote an op-ed i think today or very recently about mylan, a name we've talked about in the past. heather bresch testifying last week about the epipen and those price increases. you say her testimony was a huge blow to the entire pharma industry.

why? >> well, she led with her chin and she said -- she misled everyone on profits as "the wall street journal" showed. it was really $166, that's a 60% profit, that's huge. that's not the real issue. the issue is there's going to be a huge -- there is a huge public outcry. she's going to have tho come back to capitol hill. and the problem is that's going to affect the whole pharmaceutical industry. those companies are investing in research, johnson & johnson, l lilly and merck. they have life-saving drugs. they need the high profit margins to justify a $2 billion investment in a new drug. i get that. and all the biotechs do too. and so i'm concerned that this is going to result in kind of across-the-board policy to either slash prices or really go after the heart of the pharmaceutical industry or even have price controls, which would be a disaster. i want a market-based solution.

the best solution to this problem is the fda has got to get moving on generic drugs. they have done it on biosimilars and done it on cancer drugs but they have not done it on generics and that's where they need to get moving. if you had a gentlemeric epipen this problem would go away very quickly. >> another issue that was not touched on at all at the debate. bill george, thank you as always for weighing in. >> thank you. >> for more on the candidates' comments on the economy and taxes in last night's debate, we go to steve liesmanliesman. that special corporate tax you were talking about, a repatriation tax, motivate companies to bring back trillions of dollars they have held overseas in part for tax reasons. here's what hillary clinton said about donald trump's plan. >> i don't see changes in the corporate tax rates or the kinds of proposals you're referring to that would cause a repatriation, bringing back of money that's stranded overseas.

i happen to -- >> then you didn't read it. >> so here's what's on trump's website. the trump plan will provide a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10%. so interesting that apparently hillary clinton believes in that. so both sides moving towards this notion of a repatriation tax. trump has been fairly detailed about his corporate tax plan, although he's changed it quite substantially. he eliminated the cuts for pass-through businesses. clinton has not detailed whether she supports the corporate tax cuts supported by president obama. and then the big debate is on this comment from donald trump. >> we are in a big, fat, ugly bubble. and we better be awfully careful. and we have a fed that's doing political things. this janet yellen of the fed, the fed is doing political by keeping the interest rates at this level. >> the idea that we're in a fed-induced bubble widely debated on wall street. even some fed officials worry

policies created overvaluations. others think the policy just right for a weak economy. few on wall street see the fed being political, though, and question how does trump believe the economy is in shambles but the fed is keeping rates low for political reasons, carl. always a good turn politically to beat up on the fed a little bit, right? >> everyone's favorite punching bag, steve. thanks for that. steve liesman back at hq. when we come back, the possible takeover of twitter front and center as it adds more possible bidders into the mix. later on "squawk alley" we'll sit down with sheryl sandberg's, facebook's coo. do not miss that at 11:00 a.m. eastern time. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it.

so while the world keeps searching for healthier we're here to make healthier happen.

it's been over 100 years since the first stock index was created, as a benchmark for average. ♪ yet a lot of people still build portfolios with strategies that just track the benchmarks. ♪ but investing isn't about achieving average. it's about achieving goals. ♪ and invesco believes doing that today requires the art and expertise of high-conviction investing. ♪

translation? why invest in average? the potential sale of twitter has -- well, could take place in the next 30 to 45 days. that according to people familiar with the continued expressions of interest that are coming into the company. and it's moved towards a more formal process for potentially selling itself. while it has yet to set up specific bidding deadlines and things that would typically be associated with a formal process, we are moving towards that, it would seem at this

point, given the number of potential suitors. those of course include salesforce and google, which we reported on on friday, the likes of disney which we confirmed yesterday and the possibility at least of microsoft taking a closer look at whether it too would like to own twitter. now, that does not mean that any bids will be forthcoming. as we reported friday, of course, things were not imminent. they do tend to move faster once made public and that is what's behind this new timeline for trying to determine if and when the company will be sold and to whom at what price. of course price a key consideration here with the stock iin inhabiting a price around 23.50. some wonder what would it look like. there are many analysts who are coming out and saying it creates a good deal of downside should there not be a deal. but if you have more bidders, you can argue that

it will set up an opportunity for shareholders to still receive potentially a premium. disney's presence, some would say that seems a little bit odd. perhaps. at the same time twitter is a media company, one that relies on advertising, although not seeing the increases in advertising it would like. barclays weighs in with a piece discussing disney's interest saying combinations such as disney and twitter are less about cost synergies and more about the ability to acquire capabilities to compete in a world where internet-based delivery and consumption become increasingly important. the potential disney-twitter deal would essentially provide scale, technological capabilities and a unique global platform to build a video centric solution for the future. you know, it always becomes tough to sort of figure out where price is going to come in here. >> sure. >> especially because there's no formal bid. i haven't gotten the granularity on that but many look at

stock-based compensation being so large. >> very hard to get a fix on valuation because it really won't necessarily be about the financials. it's not about what twitter has demonstrated an ability to earn over time. it's some kind of strategic fit of what you think this platform can be in the future. also to me the tactical issue is interesting. the stock traded between 14 and the low 30s in the last year alone, so you have to wonder if 25 might seem high if there's no bid, but is 25 high enough if you're on the board and you say, hey, the stock traded at 31 11 months ago. >> to your point, it's certainly been a lot higher than that. carl. >> let's get over to sue herera and get a market check. >> hi, carl. a busy morning. thank you, everybody. here's your news update for this hour. iraqi officials say a suicide bomber blew himself up in a busy commercial area of baghdad killing 11 civilians.

another 28 were injured as the explosion also damaged nearby shops and cars. typhoon megi struck taiwan, causing destruction across the island. it had top land speeds of 123 miles per hour. a police station was hit hard cautions the ceiling to crumble on that building. california fire crews aggressively fighting a wildfire in the santa cruz mountains overnight. that fire is threatening at least 300 structures, causing the homeowners to be evacuated. about a thousand acres have been charred. the fire is only about 5% contained. and dozens of personal items but longing to marilyn monroe went on display in beijing for a private viewing by chinese collectors. it's coming ahead of the november auction in los angeles. among the items featured, dresses that the actress wore in "some like it hot" and "bus stop." we'll keep you posted on the price tags. that's our news update this hour. carl, pack to you.

>> sue, thanks so much. as we go to break, take a look at where stocks are. the dow is up 45 points or so. which candidate will be best for the markets? we'll discuss that when "squawk on the street" continues. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

the market somewhat muted after last night's debate. eequitiey -- >> believe me, we're in a bubble right now and the only thing that looks good is the stock market. if you raise interest rates even a little bit, that's going to come crashing down. we are in a big, fat, ugly bubble. and we better be awfully careful. and we have a fed that's doing political things. this janet yellen of the fed, the fed is doing political by keeping the interest rates at this level and, believe me, the day obama goes off and he leaves and he goes out to the golf course for the rest of his life to play golf, when they raise interest rates, you're going to

see some very bad things happen because the fed is not doing their job. the fed is being more political than secretary clinton. >> joining us this morning, bob landry, portfolio manager at usaa along with edward mills at fbr capital markets. guys, good morning to you both. >> good morning. >> good morning. >> bob, some people tried to read the action in the futures last night as another clue that markets want clinton. is that fair or not? >> you know, i think both candidates make wall street a bit nervous here. i think this election is about growth. the economy has been mired in this subpar pace of economic growth in recent years. what candidate with help lead us out of that through better policy. when it comes to tax policy, i think trump certainly has the better plan. but a lot of that is offset by his belligerence on trade. and the one policy that both

candidates really haven't touched on too much is monetary policy. we did see donald trump's clip there and he's right about interest rate manipulation but i'm like larry kudlow, i believe in king dollar, a strong, stable dollar, and neither candidate is talking about that. >> edward, did you hear anything last night or have you heard anything so far that sort of answers the questions bob has? >> yeah, i think that you kind of look at the debate last night and there's not a lot new we learned from a policy perspective and it was certainly very lively. in terms of what we did learn, we got more information about tax policy, we got more information about the fed and more information about trade. and i do think that the markets would be more accommodative to a hillary clinton presidency if just for the fed alone. you know, that is going to kind of keep that consistency, keep yellen at the helm, keep kind of that accommodative monetary

policy going. i think there is real concern about the unknown factor of a trump presidency, especially on monetary policy and especially on kind of picking up what has been a growing sentiment on the republican side that they have real issues in the way in which the fed has conducted themselves since the financial crisis. >> edward, do you actually think that i've we're handicapping out a potential trump win, people enthusiastic th think that there would be a replacement of janet yell enwith somebody with starkly different views, not from within the mainstream of fed thinking? >> well, i think everything with the fed is kind of we don't know, and if we don't know, people kind of don't like that uncertain uncertainty. i do think that the one takeaway i had from his statements last night is it seemed to me that he was endorsing kind of a low for longer interest rate policy, which i think is a net positive. as you mentioned, it's going to be kind of more than a year before he'd get that appointment. it would be sometime late in

2018 before that would be changed. and i absolutely think that he would change it. he's not someone who would kind of as bombastic as he is against janet yellen now and keep her on later. >> bob, you mentioned manipulation of interest rates. i'm just curious to get a little more insight on that comment. >> sure. i mean i always wonder how a small group of governors can really determine what the equilibrium rate is between savers and borrowers. i think if the fed would allow that rate to float based on market supply and demand for credit. so you free that rate, you produce a stable dollar, i think that would provide the most prosperity. again, that's something that's just not in the fed's thinking these days. >> now, this mention of a bubble by mr. trump, i don't actually know exactly what he was referring to, whether it's a stock market bubble or what other bubble, except that it's big and fat.

>> yeah. >> have you seen any bubbles? >> no. i don't agree with the bubble terminology. i mean clearly stocks are relatively expensive. and i think there are good reasons why stocks have done really well since the market low in 2009 based on corporate earnings growth. you know, there's this thinking that the fed has provided a lot of the fuel for stock price appreciation, but i think a lot of it is driven by just really solid corporate fundamentals in recent years. >> but earnings growth has been negative for six quarters. >> it has been negative for six quarters. that's very true. again, i think a lot of that has been driven by what we've seen in the energy materials sectors, where we saw big declines in commodity prices. but generally across most sectors, you know, companies

continue to find ways to churn out relatively good earnings growth. i just think that it gets harder and harder to do that, particularly as top line growth has been so minimal. you can always squeeze expenses so much. >> and why margins are such a big story this year. edward, we're mystified by this consumer confidence number today, 104.1 is the highest since '07, although spending intentions for houses and cars and appliances is down. would you expect that to have an effect on the election in 42 days? if so, what? >> well, i think that the other part of the conversation here is absolutely kind of beyond monetary policy, what sort of fiscal policy can occur. i think that the repatriation conversation that kind of took place last night kind of goes very much into what do you do with that money so those consumer sentiment numbers absolutely play into a push on the hill to say is there a way in which we can get

infrastructure spending, get people back to work, kind of that quote make america great again kind of agenda that will occur regardless of who's elected and that fiscal stimulus will help those consumer confidence numbers go up, help the economy generally and that's good for kind of any incumbent going forward and so they're absolutely going to want to do that. >> as we're talking, hillary clinton making some comments after the debate last night. >> well, we had a great time last night and i have to say i was thrilled that i got a chance to lay out some of the middle class economic policies and pro-family policies that i've been talking about throughout this campaign to all the viewers who tuned in. i felt so positive about it and, you know, one of the thoughts that popped in my head was one of my favorite baseball players growing up, ernie banks, used to get so excited about going to

play that he'd say let's play too. and so i'm looking forward to the next debate and then the one after that. >> secretary clinton, what do you think were the most critical moments last night? >> i think viewers got a real chance to begin to compare us on policy. you know, policy gets lost a lot of the time and coverage with the back and forth that goes on. and laying out my plan for stronger growth and fair growth and dealing with family economic issues like affordable child care and paid family leave and debt-free college with no real response, no real offer coming from my opponent. the tax plans that we've put forth are so different, and his would explode the deficit and debt and it would be a huge gift to the wealthiest of americans, including him and his own family. i think that all began to come into focus for people. >> what about the way he kept

interrupting and the way he answered the question about gender. do you think women would react to that? >> well, i think his -- his demeanor, his temperament, his behavior on the stage could be seen by everybody and people can draw their own conclusions. i thought on several occasions he was making charges and claims that were demonstrably untrue, offering opinions that i think a lot of people would find offensive and off putting. he can run his campaign and present himself however he chooses. but the real point is about temperament and fitness and qualification to hold the most important, hardest job in the world. and i think people saw last night some very clear differences between us.

>> are you concerned that donald trump will not show up for the next debate? are you concerned that he won't show up? >> well, i'm going to show up. he gets to decide what he's going to do, but i will be there at wash u. in st. louis and then after that in las vegas. if i'm the only person on stage, well, you know, i'm the only person on stage. >> donald trump says he actually showed great restraint last night and he could have gone after you and your husband for personal matters. >> as i say, he can run his campaign however he chooses. and, you know, i will continue to talk about what i want to do for the american people, lay out specific plans with very clear goals in mind to help us deal with all the challenges we face. i'm excited about where we are in this country. he talks down america every chance he gets. he calls us names, he calls us a third world country, he talks in such dire and dark terms.

that's not who america is. you know, we are the best problem solvers in the world. our diversity is a strength. i am excited about helping to pull our country together, to o infrastructure and advanced manufacturing and clean energy, to take on climate change which, by the way, is not a hoax made up by the chinese. and do everything that i talked about. and you should know by now when i set my mind on something, i keep going. i don't quit. whatever the static, whatever the incoming is. and that's what i'll do for the american people. and i am looking forward to it. thank you. >> what about his stamina? what about his stamina? >> anybody that complained about the microphone is not having a good night. >> hillary clinton to reporters on her plane in white plains, today, as she begins her day. our thanks to bob landry at

usaa. meanwhile we'll take a short break. when a moment turns romantic, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night.

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, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card.

stop taking cialis and get medical help right away. we've been hearing so much about how you're a digital company, so you can see our confusion. ge is an industrial company that actually builds world-changing machines. machines that can also communicate digitally.

like robots. did you build that robot? that's not a robot, that's my coworker earl. he builds jet engines with his human hands. what about that robot? that is a vending machine, ricky. john, give him a dollar. welcome back to "squawk on the street." restale stocks among morning's best performers after confidence numbers hit a nine-year high. latest index finding, consumers are becoming more optimistic about the job market and prospects. wall street had been expecting a modest decline to the consumer dreks discretionary index, getting a boost on the upswing surprise, netflix, best buy, target leading the pack.

mike? rick santelli from the santelli exchange. good morning, rick. >> mike, thank you. the boom market, german tenure, quality credit of the euro zone started to trade up in price, down in yield. do keep in mind, from july the all-time low closing yield is roughly -- loetslets not split bases points here -- around minus 19. today we traded around minus 16, currently around minus 14. a boon swoon. why is it important? because of policy. all central bankers are in reverse mode. but the u.s. central bank has talked about shifting into drive. now, as you look at the chart, a year-to-date chart there's a difference between ten years in bunds. you'll see the all-time

difference, outside of a brief period in 1989 has been in the low 170s, 173, 1746789 open the chart up to 20 years, you'll see what i mean. this current little crop at the far right side of the chart are the extremes. why is this important? because if we blow the top off of this 174 area, what it means is that the market and investors, for whatever reason, truly believe that our central bank is going to be in a different gear than all the other central banks, and this is huge! i personally don't know if janet yellin and company have the nerve to do that. but they should do that. but the point is, we need to monitor this. because either the ten-year is going to start coming down quickly or the bund yields are leading something new, especially foreign exchange. david faber, back to you. >> rick santelli, thank you very much. let's send it over to john ford, with a look at what's coming up

on "squawk alley." john? >> sheryl sandberg will join us. we'll continue to track the market's reaction after last night's debates. all that and more coming up on "squawk alley." the pursuit of healthier. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it.

so while the world keeps searching for healthier we're here to make healthier happen. bacteria can hide in food and make you ill. wow! announcer: but you can keep bacteria from ruining your day with 4 simple steps: clean. i'm ready for the rinse cycle! announcer: separate. all: woah! announcer: cook. fire in the hole! announcer: and chill. chipmunk: we chipmunks are notoriously tidy. announcer: check your steps-- the roadchip to food safety starts at foodsafety.gov. chipmunk: whoo! this is awesome!

good tuesday morning. fireworks at hofstra university last night in the first presidential debate of the election. "squawk alley" is live. >> inclusive growth is what we need in america, not more advantages for people at the very top. >> typical politician. all talk, no action. sounds good. doesn't work. never gonna happen. our country is suffering because people like secretary clinton have made such bad decisions in terms of our jobs, in terms of what's going on. >> whether it's russia, china, iran or anybody else, the united states has much greater capacity. and we are not going to sit idly by and permit state actors to go after our information. >> i don't think anybody knows th