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 that it was russia that broke into the dnc.

she's saying russia, russia, russia. maybe it was. it could also be somebody sitting on their bed that weighs 400 pounds, okay? you don't know who broke in to dnc. we're in a double right now. 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. welcome to "squawk alley." john ford. kayla taushi is off today. seema moody, good to have you. >> good to be here. >> first up, ad week is under way in new york. digital advertising is in focus. julia bornsten joins us with one of the biggest players in the game, sheryl sandberg. >> thank you so much. thanks for taking time for us at

ad week. you're about to go off and meet with procter & gamble and gm. how do you explain to investors that you inflated measurement for how long people are watching video on facebook? >> what happened in this case is about a month ago, we realized there was a mistake in how we were calculating one of our video viewing metric. it wasn't how we were charging advertisers. it wasn't the metric we were billing on. still we take any mistake seriously and trust it so important. as soon as we found the mistake, about a month ago, we went to all our clients, explained it and fixed the problem. we also believe very strongly in third-party measurement. we're not just grading our own homework but other people. we work with a broad variety of partners. >> what are you doing to reassuring investors that this won't happen again? >> well, we can't promise that

there will never be another mistake again but we certainly do all we can to get all our metrics right and really work on measurement. the most important thing to our clients is that we measure all the way through sales. when you think about what advertisers have looked for and measured, what they've always looked for is who sees their ads, how are they spending their ad budgets and is that moving products off shelves, driving cars off lots? so what we're working on is all of that measurement so that we can go all the way through from what someone sees to their purchases. and that's where we're really focused. >> yesterday, the ceo of one of the major ad conglomerates thinks it needs to be more transparent do you think there's a trust snish. >> any time there's a shift in platform you need to establish new metrics and new ways of working with that platform. a company like p & g is a great example. they're 175 years old. they've watched advertising more

from platform to platform to platform. the first tv ads, people literally standing at microphones reading their radio ads wasn't shifting a platform. best ads on social media are really created for the social media, for the social media environment. >> this measurement issue comes at a time where competition is increasing from all sides. what are you doing about this pressure to maintain this very fast growth rate? >> people are marketing on facebook because people are spending so much time on facebook and instagram. three years ago, the lines crossed for the first time. the average american consumer is now spending four hours on tv and 5 3/4 on mobile, digital largely driven by mobile. of the time people spent on mobile, we get 20% between facebook and instagram. by far, more than the next several combined. and it's our opportunity to take

that time and attention from people and work with marketers to show the right ad to the right person with the right format so that it sells their product and moves them off shelves. >> do you have anything specific that you could say you're doing to stay ahead of the competition? >> most important thing we do is continue toi ito iterate on our product. marketers know people are on mobile much average american consumer is checking his or her smart phone 150 times a day. if you need to reach people, you need to be where they are. the best place to do that is facebook and instagram. >> you're investing a lot in live videos. how will you make money from the live streaming people are doing? >> video is exploding across facebook, across all mobile phones. that makes sense, right? a few years ago, you had a phone. it would buffer. you couldn't really watch a video, take a video of such high quality easily. now all of us can take video. all of us can share video. what's happening with live on

facebook is really exciting. we're not yet focused on monitization. we're really focused on -- last night in the debates alone over 55 million facebook live shares of some kind of another, people watching part of the debate or journalists or just everyday citizens commenting on the debate but in a live format, which we think is an incredibly strong social experience. >> a lot of attention on twitter live streaming football games. are you interested in buying any sports rights? >> i think you're seeing broad experimentation. people like the nfl are going to keep experimenting with different forms of distribution. we are watching carefully to what our users do. we're not working on the nfl games but are seeing experimentation across the platforms. >> rumors for buying twitter, is

it going to be facebook? >> we never comment on rumors. >> capturing a lot more live video. does that make snap chat a bigger competitor to facebook? >> i think what you're seeing is people are moving to mobile. so, we are more people using facebook, using instagram, very strong in terms of our time spent in metrics. you're also seeing people use other mobile apps because all of this is part of a shift from what people were doing before with their time to mobile. >> you have so many different apps now. instagram. messenger. does it make sense to split up facebook? is it going to get too big? >> well, i think we're focused on having separate teams that have real product autonomy. you're seeing that in our growth. what's app hit a billion users. instagram growth has been really strong both on the user front but also on the advertiser front. instagram just hit 500,000 advertisers. >> you also hit a new milestone

with those facebook advertisers as well. >> we did. facebook hit 4 million advertisers up to 3 million advertisers in march. that's because businesses know that consumers are spending time on mobile and they need to be there. everything from our largest clients to the smallest mom and pop business are trying to reach people on mobile. >> can you tell us anything about making money from what's app and messenger? how soon do you think they'll be a big part of your business? >> we're focused for what's app and messenger on user growth, how much time people spend, how many messages they send. we're doing a little experimentation in messenger. we're looking what's happening organically. businesses and people are using messenger to connect together and we are continuing to see that growth. >> i know you're very tight on time. i have to ask you about this op-ed you wrote about the need for gender equality in the workforce. this is an area you've been really focused on. at facebook the numbers have

barely budged. third female in terms of your workforce at facebook and only 27% of your management team are female. why aren't the numbers changing faster even at facebook? >> the largest, most comprehensive study that's done of women in the american workforce every year. this is our second year. what it shows is that women remain underrepresented at every stage in the corporate pipeline a and, importantly, men are 30% more likely to get that first critical promotion to manager. people think it's a problem that happens later on. it's not. it happens early. the numbers are worse for women of color. it's encumbent on facebook and all of us to hire more women in underrepresented minorities, salary reviews, promotion reviews, paying women fairly and promoting at the same rate and

uncovering unconscious buy as so that we can deal with it in the workplace. >> is it unfair for facebook not to have higher percentages of women? >> we need to do better. every company in america needs to do better. that's what this study shows. >> i'm so sorry that i understand you have to go. i wish we had more time. i could keep talking to you about all these topics for much longer. sheryl sandberg, thank you for taking the time to talk to us today. guys, back to you. >> julia bornsten, thank you for that. covered a lot of ground in a short amount of time. talking about taking every mistake seriously regarding the video metric. 150 times a day we check our phones on mobile, facebook and insta. 4 million advertisers up from 3 million in march. >> yeah.

that's a million in roughly six months. really fast growth. no matter what type of executive you talk to at facebook, they are very focused on scale and driving engagement and then monotizing second. that's very different from what we've seen at twitter, which for a long time was talking about their ability to monotize. snap chat a different balance. we don't have the same kind of metrics on them. their monotization ideas have been moving at a different pace, faster than facebook tends to. how much powder are they keeping dry? much younger company so room to run. >> nearly 5 million people watch videos on facebook. it will be profitability for facebook. when does virtual reality enter the equation? >> indeed, one of the few things they didn't much touch on. they are monotizing oculus. that's out in the market.

we expect it to be the first big holiday season -- or the first holiday season at all for virtual reality against htc and sony what with playstation. at facebook, holding quite a bit of video back from monotization. sheryl sandberg talked about moving a bit into messenger, which has gone into video but not what's app yet either even though they spent $18 19 billion plus on that. >> and became a conglomerate of sorts. all the deals that twitter has signed from chatter, nfl, epspn and wimbledon and snap chat with spectacles. they will dominate the conversation, certainly today. >> they certainly will. she avoided talking about twitter. though julia did ask. kudos on that. not going to comment on rumor

speculation around acquisition. on snap chat she said yeah, people are going to utilize other things as well and touted facebook's growth. >> ad revenue for snapchat expected to hit $1 billion by the end of 2017. clearly a big threat they have to continue to fend off. >> wall street's take on last night's debate. who investors think came out ahead and who is best for your portfolio. they are very, very upset with what their politicians have told them and what their politicians have done. >> i think that -- i think donald just criticized me for preparing for this debate. and, yes, i did. and you know what else i prepared for? i prepared to be president, and i think that's a good thing. guys, what's happening here? hey nicole, this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts

for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up. like cologne.y things you don't want in industrial strength- morning! but there's one thing you do. (gags) it's called predix from ge. the cloud-based development platform that's industrial-strength strength!

>> donald trump taking on hillary clinton in what could be one of the most watched presidential debates in recent memory. back with the highlights, john harwood. >> donald trump tried to take advantage by going after hillary clinton on public policy. but he didn't rattle her. she did rattle trump, by provoking him to interrupt her several times on his racial attitudes and finances. >> donald was very fortunate in his life, all to his benefit,

started with $14 million borrowed from his father. >> my father gave me a very small loan in 1975. >> you've taken business bankruptcy six times. >> on occasion, four times, we used certain laws that are there. i take advantage of the laws of the nation. >> you wouldn't pay what the man needed to be paid, what he was charging you. >> maybe he didn't do a good job and i was unsatisfied with his work. >> and they showed he didn't pay any federal income tax. >> that makes me smart. >> donald started his career back in 1973, being sued by the justice department for racial discrimination because he would not rent apartments in one of his developments to african-americans. >> we settled the suit with zero, with no admission of guilt. >> donald thinks that climate change is a hoax, perpetrated by the chinese. i think it's real. >> i did not -- i did not -- i do not say that. >> i think it's real and i think

it's important -- >> i do not say that. >> this last denial by donald trump was easily rebutted. a tweet from him is still on his feed, saying that china did make up climate change. trump's other responses were also not very strong. for example, on racial discrimination, he didn't say he didn't do it. he said we didn't admit guilt. on taxes, he said that makes me smart for not paying taxes. what you have to wonder is when voters are hearing this information that's very personal and very vivid, was donald trump effective in convincing people, no, i am the kind of person you want to be president. that's his challenge. he needs to add votes that he doesn't have right now. we'll have to watch the polls over the next few weeks to see if he's going to be able to add them. >> thanks to you, john harwood. veteran political strategists this morning. steve mcmahon and former romney, rubio and kasich adviser. good morning to you both. >> good morning. >> good morning.

>> if you're explaining, you're losing. is that being too harsh? >> no, probably not being harsh enough. one guy said to me it's clear that donald trump thinks debate prep is a boarding school. there was no preparation done for this. he lost on just about every issue. she was clearly on offense. she was clearly well prepared. she kept him on defensive from beginning till the end. in contrast to what he has been saying about her, by the end she showed great stamina and he looked tired and worn out. having said that, he did get a central message across throughout, which is she is the "in" person, he's the outsider. she's the politician. he's not. he's for change. she is for more of the same that. did come through in what otherwise was a night dominated by hillary clinton. >> a lot of democrats trying to take victory laps this morning. but there were no knockout punches that i saw. no major gaffes. might people be reading too much

into a possible hillary victory at this debate? >> well, i mean, they might be reading too much into what it means. we'll have to wait and see what the polls suggest on that. there were a lot of knockout punches that were landed. unfortunately for donald trump, he was punching himself in the head repeatedly. hillary clinton, of course, would throw the red meat out there. he would take the bait. it was a disaster for him. no other way to put it. it was a great night for her. she looked disciplined, prepared, ready. she looked like she had the stamina and strength to be president. she sent a message to our allies that we're going to keep our word. she reassured the street. if you look at the markets today, they're up. the reason they're up is because she had a good night. because people can see her as president and because they can finally see that donald trump probably inflicted some wounds that are going to be difficult to recover from. >> it's not hard to understand the appeal of simplicity in this complex world. on the topic of foreign policy, trump had no plan on how to

defend isis or how to defend the united states against isis whereas clinton actually had an outline and was able to articulate what she would actually do. was that a missed moment for trump? >> if you promisedn to knock the hell out of isis, or whatever words donald trump uses, then no specific plan on how to do it, people are properly afraid you might lash out and do something dangerous with a great backlash. i think it was a missed moment for trump but more importantly it was a good moment for secretary clinton. i want to underscore what steve said a moment ago. her reassurance of our allies was tremendously important around the world. i don't know if it resonates with american voters. i traveled a lot. you know what's going on around the rest of the world. the rest of the world is scared about donald trump trashing our alliances. i thought that was an important moment for the world. i also thought that the exchange on trade -- although i'm disappointed that both the

candidates are against tpp. hillary clinton showed she is not a reflexive protectionist. for people who still believe in liberal trading order, that was an important moment for investors as well. >> taxes, of course, central topic last night. this is a bite of trump and clinton discussing his tax returns and what we may learn later. >> maybe he doesn't want the american people, all of you watching tonight, to know that he has paid nothing in federal taxes. because the only years that anybody has ever seen were a couple of years when he 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. >> so if he's paid -- >> how effective was that comment, vin? that makes me smart. and to follow on that, what adjustments would you make, going into debate number two, which is more of a townhall setting? >> well, the -- it was a

throwaway line. i don't think that the notion that he didn't pay a lot of taxes, unless he evaded them illegally, is a big argument. most people don't think you get applauded for paying high amounts of tacks. there may be other things in his tax returns that secretary clinton alluded to that are more damaging. i've been involved in debate prep. so has steve. i think that you've got to figure out how to prepare every given candidate. everybody is different. it was clear to me that his advisers have not figured out how to properly prepare donald trump for a debate. the town hall will be quite a bit different. it might be stronger for him, where he can react to a number of different people, as he did in the republican debates. but they've got to figure out how to get him to prepare. they clearly haven't done that yet. >> steve to the extent that hillary clinton may have blunted donald trump's momentum with her performance in the debate last night, how does she capitalize on that over the next few weeks?

>> i think she keeps on doing what she's doing. of course, donald trump, who spent the evening punching himself in the head ultimately -- >> that hasn't worked up till now. >> well, it hasn't worked as well as perhaps some of us would have liked. however, she does continue to hold leads in just about every battleground state. so, she was doing something right going into the debate. she had a wonderful evening last night. donald trump did not. and i suspect that in the next debate, he is not going to be better. he's going to be more desperate. he's going to over-rev and is going to be even more irritable and off the wall. and i suspect make an even worse impression on the voters he needs to attract. last night was about donald trump trying to add to his vote total. because he is behind hillary in nearly every measure. he needs college educated women and minority voters in increasing numbers to come over to him in order for him to be successful. i didn't see anything that would

cause any of those voters to feel better about him or support him in november. he made the hill steeper and she had a very good night. >> all that said, vin, ted cruz, of course, did come around. are you on that train? >> no, i'm not on that train yet. you're accurately describing what's happening. republican party is largely c l coalescing around donald trump. i'm not persuaded, one thing, donald trump's taxes, tax policy did not help hillary clinton attract republican votes last night. donald trump has an argument to republicans on the tax issue. he doesn't make it very often. he doesn't make it very well. there's no history of showing he believes in or understands supply-side economics which is what his tax plan is based on. >> we'll see if that changes in the subsequent debates.

thank you. >> thank you. still to come on "squawk alley," markets reacting to last night's first presidential debate. you would try to negotiate down -- >> wrong. >> -- the national debt of the united states. >> you're wrong. you're wrong. >> no, i'm not. donald supported the invasion of iraq. >> wrong. >> that is absolutely proved over and over again. >> wrong. wrong. you know what, guys? there's a lot of tree branches and dry brush over here. we should probably move the bonfire over there.

[smokey whistling a tune] i'm guessing smokey liked that idea.

singed

good morning, everyone. i'm sue herrera. wells fargo's board is actively considering whether to claw backpay from ceo john stumpf as well as carrie holstead. it wants to take action before thursday, because that is when stumpf returns to capitol hill to testify before the finance

committee. one killed and six others were injured when a house in the bronx exploded. after reports of a gas smell, investigators went to the house and found a drug lab insight home. 15 current and former air france workers went on trial during a union protest last october at the headquarters. a new report from euro monitor finds credit card payments have surpassed cash worldwide for the first time. analysts say the shift has happened gradually over the past 0 years due to advanced technology such as mobile payments. that's the news update this hour. back doll downdown to "squawk alley." john? >> thanks, sue. strong words from donald trump, calling janet yellin and the fed more political than hillary clinton and also warning of a crash. >> 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. >> well, let's bring in traders kenny and gordon to talk about that. what do you make of market reaction to the debate last night? premarket looked like a surge, tempered a bit at the open. what's going on? >> i think the market has always expected a clinton przy. i think even after last night's debate is no less concerned it's going to end up being a clinton presidency. if they thought there was a change of heart you would have more violent reaction in the market and you're not seeing it. i think the market is telling you that they favor her performance last night. >> gordon, on those remarks on the fed, trump has made some headway, going up against institutions like the media. can he fight the fed from a political perspective and gain points, do you think? >> first off, the debate yesterday was -- you have to tip your hat to lester holt who did a great job of staying out of the way.

the guys on the floor were hoping carl would make a return appearance over there. that being said, look, donald trump scored some points. you guys are from new york. we know what laguardia airport looks like. he talk about these infrastructure issues. >> joe biden has mentioned it before, yes. >> democrats, republicans can all agree. but the one thing he trumpeted his own cause on was his temperament. i think that's where he failed. he seemed to get agitated. did he lash out at janet yellin, made a comment when hillary clinton started talking about women, he got involved there and a couple of other things. i think that he did himself a disservice. truth be told, wall street is republican populated -- republican populous here. i don't think wall street really wants donald trump. they think he's too volatile, doesn't have a real solid economic plan and there could be a lot of global instability with him. the fact that the markets

settled down today speaks to the fact that wall street is more comfortable with clinton, wants clinton to win. >> international reaction to the peso now up 2% against the u.s. dollar on hillary clinton perhaps being seen as the winner of the first presidential debate, kenny. dominant role in driving gas price. will politics be the bigger player here? >> over the next five weeks certainly will be the bigger player. that's how much time we have left till the election. and we all know what was said. we all know where we're going with that. to john's point, i think that the federal bank has -- he was spot on last night when he said what he said about the central bank, they're playing politics and are they favoring one side over the other versus doing what's right for the nation and the country. we all know we've been on this program before. we've had this conversation. the fed has missed numerous opportunities over the last year and a half to adjust, raise and start to normalize. he's not necessarily wrong when

he talk about them playing politics and he's not wrong about the market being in a little bit of a bubble. every time they talk about raising rates, what happens to the market? >> we'll see if the vix gets above 15 before the election actually happens. kenny, gordon, thanks so much. markets closing across the global market. for that we go to seema moody. >> and i'm right here. focus remains on the banks with the sell-off accelerating. wall street journal reporting that the uk lender is under investigation by the u.s. justice department over allegations that an indonesian power company controlled by the bank paid bribes to win contracts. deutsche bank falling once again, how it will deal with that doj fine. oil sector also in focus. among today's big losers after saudi arabia downplayed

concerns. meantime, italy is set to hold a constitutional referendum, december 4th, matteo renzi, aimed at bringing political stability to italy. renzi has backtracked from a pledge to resign if the referendum is not approved. on a programming note "squawk alley," watch sarah eisen's interview with imf director christine lagarde on everything from brexit, the economy. i hope that the political narrative, of course, in europe is changing. it's something that could definitely change the talk at brussels. >> we'll watch that and see what lagarde has to say about that and more. seema, thanks. trade policy, cyber security took center stage last night. we'll get to that when "squawk alley" comes right back.

where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. narrator:kubo: est place come on, this way.e... 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.

(smash!) like an administrativeyou don't assistant.dustrial strength- your 3 o'clock is here. but there's one thing you do. it's called predix from ge. the cloud-based development platform that's industrial-strength strength! - i was diagnosed with parin early 2013.lly it took awhile to sink in. we had to think a little more seriously about saving money for the future and for the kids. - the income of airbnb really helped to mitigate the stress. - but we have that flexibility of knowing that if you know things get worse, we have this to help keep us afloat. - so that's very, very important for us.

also could be somebody sitting on their bed that weighs 400 pounds, okay? >> the chairman of go pac.

thank you for joining us today. >> good morning. >> good morning. >> one of the more difficult parts of the discussion. if you're listening for good policy here. who had a better handle on the cyber stuff? >> there is no question that hillary clinton came off as strong on policy last night. at this point, if you're not for hillary clinton, you're looking for a reason to vote for donald trump. and trump, in many ways last night, said things that people wanted to hear, particularly when you talk about economic policy, when you talk about -- even on the cyber security. look, we don't know exactly who this is. are we going to trust someone to have a handle on cyber security who broke the laws at the state department and had her own server? is that someone we want to trust national security with? and also talking about our national security, do we want to allow someone who had much impact on the policies for the last couple of years that led our foreign policy when she was secretary of state? and the point he didn't make last night was she -- and she

pointed out many of his problems. he never talked about and should have talked about the fact that she allowed four americans to die in ben gauze. >> i benghazi was not mentioned. missed opportunity, you're saying? >> missed opportunity on trump's part, yeah. >> he did mention the fact that china should perhaps invade north carolina and defended russia. what do you have to say about that? >> those are his policies. ultimately he will have to come out and lay out why he wants to do that. if you're donald trump and his campaign, you're feeling pretty good about where you are. all the momentum is with you right now. hillary clinton and her allies have spent $200 million attacking him on things he has said, policies he hasn't maybe exactly given all the details on. and yet he's still in this game. and there is a wealth of information that says people who haven't made a decision by now go with the person they think is going to be the winner. these polls are showing him up in many of the swing states or

closing the gap means he's still in this game. >> immigration has been a key issue for your organization. it came up in a couple of ways last night. what were the key moments in last night's debate for you? any quotable moments you're going to use to drive your message from here? >> we actually didn't see a lot on immigration last night, which was disappointing. we have one candidate who has made it pretty clear he wants to round up and deport 11 million undocumented immigrants, 4 million u.s. citizens and another candidate who has looked to -- we would like to see her flush out what that means a little bit more. i agree, hillary clinton came out much stronger on foreign policy and i don't think it's funny that mr. trump has made a joke about russians interfering in our immigration system and i appreciate him not trying to defend that right here, right now. we want to see a robust debate on immigration reform and settle the question. are we a nation that sees immigration and immigrants as a

source of strength? are we going to close ourselves off to the world, which will have a devastating economic impact? >> immigration, homeland security, labor. i mean, it was like a vacuum of those policies in terms of the discussion. >> still have two more debate. >> what do you think the second debate brings? townhall setting which some argue will make it a little more difficult to go on the attack. you have to deal with voters there in the room more directly. >> go pac because, for donald trump, he has policies that many americans favor. we did a focus group and surveys in the state of ohio talking with women voters about what they saw as important. border security was very important to them, as was deporting illegal immigrants who were here, committing crimes, as is defunding sanctuary cities, three things that donald trump talks about that helps him win voters, amongst women voters, particularly in the state of ohio. that's where we did our focus group work. to suggest that he can't --

factually not right. an area that the democrats are weak on. they're not talking about it in the way that many americans want to see our border become more secure and know who is coming into our country. >> would you expect her to be more on the defensive in the subsequent debate? >> david brought up two excellent points. we think that people should, who are here, and violent criminals, should be deported. what david didn't say and what donald trump didn't say last night, because it is a political disaster, is his belief we are going to be in the business of rounding up 11 million people. that's not conservative. that is terrible economic policy, would cost $620 billion here. that is a huge political problem here. i'm not surprised that people don't want to defend that policy. i hope we do get to have a real conversation over the next debate in st. louis. >> well, maybe getting through some of these birther tax return issues means we don't have to resist that in the second debate. we'll find out, guys.

todd, david, thank you for your time. appreciate it. >> debate over cyber security does not end on the trail. it continues at the cnbc cambridge cyber summit october 5th. stay tuned for details. >> a billion more may be brewing for twitter. neil doshi joins us to discuss. , allowing them to handle the recent popularity boom in fanny packs. it's pretty fly. unless being '90s is your thing. well, cdw and hpe services gave them the flexibility they needed to scale up their scale up their cloud resources, making sure supply meets demand. poser! [ classic ringtone ] what's crack-a-lackin'? hey, did you remember to set the vcr? increased flexibiilty by hpe services. i.t. orchestration by cdw. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses,

i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare...

and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel - and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is.

what happens if no one buys twitter? even amid news of new suitors. is your best bet to sell today? we'll ask bob peck, who joins us with his take. we'll debate whether there's still room to watch for the closely watched group. nike is down 12% year to date. will today's earnings turn the tide? we'll get ahead of that. carl, we'll see you in less than ten minutes. >> sounds good. thanks. big boost for the stock over the past week, obviously. our own david faber saying more suitors have emerged, including names like microsoft and disney. neil doshi, analyst at mizuno securities joins us. a prospect of a deal ordeal ate significant premium from here? >> i am pretty surprised. i'm more surprised that there are, you know, a lot of suitors

that are potentially out there at this price and premiums of this price. the company whose fundamentals have been down very significantly. revenue is growing at about 20%, well below what it was about a year ago. user base has stalled. there's definitely concerns around, you know, privacy and other issues that are going on at twitter. so, it is quite surprising to me that there's a number of potential suitors ut there at premiums to where the stock is today. >> neil, correct me if i'm wrong. recently you had a $15 price target on twitter. it's now trading about 50% higher than that. given the skepticism around what twitter is worth -- of course, yes, a lot of analysts have justified their price targets saying it's not worth this much. given that you've gotten microsoft, which paid a billion dollars for minecraft, disney that paid for lucas film. might you be wrong? might the smart money be on, at

this point, some deal happening? because these companies have the money to do it. >> yeah. look, we're not saying that we're 100% right here. but the numbers speak for themselves. linkedin is still a great asset. user base is growing. revenue is growing significantly faster. that's definitely a positive. lucas films has ip. now i'm a little concerned. disney -- for disney to pay $20 billion plus for twitter, mickey mouse would have to love twit r twitter. it's a pretty significant deal for this to happen. >> from twitter to facebook, we just talked to sheryl sandberg a few moments ago and asked her about this controversy on how they measure those video views. take a listen to this. >> about a month ago we realized there was a mistake in how we were calculating one of our

video viewing metric. it wasn't how we were charging advertisers. it wasn't the metric we were billing on. still, we take any mistake really seriously and trust is so important. as soon as we found the mistake, which was about a month ago, we went to all of our clients, fix. >> neil, it was said when that news broke it would be a test as to whether or not facebook was bulletproof or not. do you think it is? >> i think there's a long-term growth opportunity and we do think video is a massive opportunity for facebook. you know, this -- as sheryl indicated this was not the way they were charging advertisers. there's no revenue -- it's a little bit of a black eye in terms of, you know, their measurement capabilities, but, you know, at the end of the day they did go back and try to clean things up so i think that's positive and think about instagram, messenger, a lot of big opportunities as well as oculus we think there is a big opportunity for them to continue to dominate and take share in

the online advertising space. >> well, with 4 million advertisers we're going to definitely pay attention to what q3 revenue growth looks like. neil, appreciate your time, thanks. >> thanks. >> neil doshi at mizuho. >> what people are saying about last night's debate and check out shares of amazon hitting another high. "squawk alley" will be back. like coffee. but there's one thing you do. you guys okay?! it's called predix from ge. the cloud-based development platform that's industrial-strength strength!

we can't go back to the years of devastating cuts to public education. exactly why i urge you to vote yes on prop 55. prop 55 prevents $4 billion in new education cuts without raising taxes on anyone. and there's strict accountability in prop 55. with local control over school funding decisions. and mandatory annual audits guaranteeing the money goes directly to our classrooms. not to bureaucracy, not to administration. so vote yes on 55. because it helps our children thrive. dow awfully close to session

highs up almost 85. s&p up about 8 points although oil remains troublesome down a buck and a half. we' we're back in a minute. ♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you.

that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you.

these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ so where does the street stand on last night's debate?

eric has some answers this morning. >> how are you doing. first the newspaper, four different paper has a boxing analogy for what happened at the debate last night and when we talk to people down here on wall street, we sort of got the same thing, people were watching for the entertainment value and nobody that we talked to said this was going to change their vote. >> that was a dumpster fire full of hilarity and prove, oh, dear, this election was pretty much a reality show. >> i watched it for the entertainment value. i didn't think it would change my vote. >> i don't think the debate changed anything. >> i think the rain is god crying for america. i thinks horrible. i think everybody will fold back into what they originally believed. >> did it change your mind. >> no, i know who i'm voting for. >> and so what we're seeing on certainly media in particular with this campaign over the last few month, everybody is getting

much more negative, instead of talking about the candidate that you like, people are talking much more about how bad the other candidate is and when we talk to people on wall street we saw the same thing in real life. >> i personally think that donald trump has no clue. >> i don't think he knows what he's talking about and she has obviously the ties to wall street. >> two parties against the people. >> unfortunately, this is what we have to choose from. i think they were both well spoken. both intelligence people, however, i don't think that our federal government especially the press and his level look after the common folk. >> using e-mails from private servers at home, you wonder if a government would do something like, would lose a job. >> obviously there are two more debates, maybe one of those will have a little more information. maybe one of those will actually change somebody's minds. back to you, guys. >> eric chemi, thanks.

always hard to get a broad swath of america in lower manhattan. but that's the neighborhood we're in at least right here. >> you know, trump did steal the social media spotlight. a lot of hashtags including #trumpsniffle was trending for some time. >> on the up side and down side trump never one to miss the spotlight. >> indeed. with a minute left until we get to the judge, keep an eye on the markets. futures did go green during the debate last night. came off the highs at the opening bell, we were roughly flat. we're about 500 points or so below the all-time high of 18668 and watch for nike tonight and just three more days before we close up the third quarter. >> a lot of tech stocks on the smaller side with hopes for growth. doing well this morning. twitter up better than 2%, of course, on this take over rumors, netflix up nearly 3%. groupon, remember that up 4%. >> politics behind us, the opec meeting all eyes on oil as it

moves lower, goldman sachs reducing its feidin santana feidin santana cast. >> forecast. >> it's down more than $1.50. it's down 1-7. s&p down and on track for a losing month. wapner and the "half." >> welcome to "the half time report." suitors emerge for the social media company. with it surging what if a deal never happens? is your best bet to sell now or stand pat and wait? with us for the hour, joe terranova, stefanie link and the brothers najarian. bob peck who covers that company for sun trust. welcome. what do you make of the move? i'm wondering if the market in some respects is getting ahead of