"squawk box" begins right now. ♪ >> live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernen, and becky is off today. hasn't had the baby yesterday. hasn't had the baby, but she is not here. i don't know if we'll see her before the big day. >> no. >> probably not. melissa lee is here. >> in the house. >> hanging out with us. >> that's the point. she's at a point where doctors said --. ne >> needs rest. >> we are here more nervous and -- we don't need this. >> you were more aious than everyone else. >> i was more anxious. she has done this before. i have never done it. >> really? >> traffic, new york, think about what could happen. it's just better where you're

ready. you have all your ducks in a row. go here, do this. yeah. this is good. though she'll be gone for two, three months. >> going to miss her. >> yeah. >> we have each other. >> we have each other. >> we have melissa and our own to-go bags. u.s. equity futures at this hour. look at what's going on overnight. when you look at what's happening, the markets will open down 34 points. s&p 500 looking to open down about 5.5 points. the nasdaq looking down about 10 points. in asia, the nikkei up, and the hang seng up as well. finally flying over quick to europe. show you what's going on there. that's a bit of a red picture across the board. finally wti crude at this hour, 49.89. kind of -- 83 rather. moving back up again. moving back up again. >> yeah. almost 50. >> hurricane matthew is slamming

the bahamas right now. its track is bringing grave concerns along the u.s. coast. the storm is responsible for 26 deaths. while it has weakened some, as it moves north it is expected to intensify. we'll get a live report from daytona beach in a couple minutes. a couple of corporate stories. twitter shares plummeted overnight following a report by re/code that google and disney will not be moving forward with bids for twitter and that apple is also unlikely to bid. twitter says it wants to conclude the talks by the time it reports third quarter results. they want to know results by the end of this month. though report on the 27th. salesforce is still in the running as a possible buyer, but marc benioff wouldn't specifically on firm that report when he spoke to jim cramer yesterday. >> when it comes to twitter, you have to look at it like this. number one, we look at everything. it's in our interest to look at everything.

we have go deep on everything. we have to understand what is possible for shareholders, what isn't. in the scheme of things, if you look back at my track record as ceo, you'll find while i look at a lot of things, i pass on most things. >> a lot of people focused on that particular comment. that last sentence. i pass on most things. if you add google to the list and disney to the list and -- we'll see what salesforce says. >> watching this play out was weird for me. it got to 14 bucks, right? i figured that's all it's worth, right? then you read the articles about don't ever bring back your founder, it doesn't work. he's been unable to do any of the things he was supposedly going to do. suddenly it's 10 points higher, then it looked like, you know, that benioff doesn't really -- it would be more money for him to pay than google which is half a trillion dollars. is this going to be like gulf

oil, 30, 35, i'll give you 40. n no, now it's back to 21. >> what is so amazing about this, a few months ago nobody was interested, now that it's declining, all these bidders are out there and want the property. >> we were going to pay off apple's ta bill with the 14 billion that twitter was -- suddenly it's worth 25 billion? it's going up from there? >> at 14 billion, maybe not a bad deal. >> you have not really -- >> 20 billion is another story. >> you have not weighed in on this. is it worth 14 or 22? >> i thought marc benioff might -- i didn't know how disciplined he would be. only because he lost linkedin. he's hankering for a deal. i didn't understand the full comb nation myself. i understand the data strategy -- >> but the stock is down 10%

since the leak came out that people were interested. do you think they'll say go at it mark? >> we'll move on. theranos. >> we have to talk about therano theranos. >> now this, samsung, a new scare involving samsung's galaxy note 7. firefighters responded to a southwest airlines flight -- not a delta. >> i was on a plane and they do make the announcement. power it down. >> that was not your incident specifically. >> no. i didn't have any phone related incidents. >> just plane related incidents. >> a southwest airlines plane happened after another galaxy note 7 caught fire. this is the weird part. the owner says this was the replacement phone that he has gotten. >> that's even worse. >> passenger brian green.

wow. not brian austin green, probably. you know who that is? >> 90210. >> bingo. >> you knew. you knew. >> 90210. >> he's married to someone? >> yes. >> other are they divorcing? >> no, i think they're together. it's a good marriage, too. >> thank you for the music. hold on. hold on. our audience is faster than we are. megan fox. >> whoa. >> megan fox? >> wow. good for him. brian green -- she's a very smart, nice -- >> okay, joe. >> brian green said he turned the phone off and put it back in his pocket. then he heard a loud pop, and smoke poured out of the phone. he threw it on the floor. unb unbelievable. the carpet was burned straight through and the flight was canceled. green said he got the

replacement phone two weeks ago after he turned in his recalled phone. nothing funny about this incident. at least it didn't end badly. hopefully it doesn't. frightening. roughly 1 million galaxy note 7s in the u.s. were recalled last month after a series of fires. the serial number on this phone indicates it should be safe. the faa is investigating that incident. you have more on -- >> just wanted to let you know, our partners at e! news, e! a unit of nbc universal. there was a divorce paper filed, however there was a reconciliation. and a third child. everybody is good. >> good for them. >> the family is back together. >> that's the same show that featured ian zering. >> yes. >> who stars in all the new nbc shark nnat sharknatos. you just did e!

>> i'm doing shark nate tnatosh. i don't know how we'll get to h theranos. >> theranos announced they will start closing labs and start testing blood on site. in a letter posted publicly, the goal is to commercialize the mini labs that are capable of testing a small volume of samples with an emphases on oncology, pediatrics and intensive care. this comb comes a year after d about theranos's technology. >> i don't want to go ahead forward five years, time is already going too quickly. i wish we actually knew, knew what they had. at the peak of their popularity and the claims of what they could supposedly do, what did

they actually have at that point? do you know? >> i don't think they had the technology. >> i don't think people think they have the technology now in the mini lab. they said the technology is not a new technology. >> didn't they think someone would eventually -- that this would happen? >> they probably thought the technology would catch up before it caught on. >> i think it's like a ponzi scheme mentality. they got a little behind. i'll make it up. we'll get there. we'll get there. just give us mor time. that's my general view. >> at this point the situation -- you don't want false positives. we talked about this before. i don't want false positives or false negatives. if i have something, i want to know. if i don't have something, i don't wanted to think i have it. get it right. markets and bond yields gaining ground as we close in on friday's job report. one of the biggest pieces of data going into the fed's decision on whether or not to boost rates a quarter point

maybe in december. joining us for some market insight, jim o'sullivan from high frequency economics. and on the chemical engineering aspect of the fed's decision, jason pride, director of investment strategy at -- >> i don't know where he's going. >> we just talked, dual major at m.i.t., you started out as a chemicals analyst. >> figured out how to invest in companies that lose money. >> exactly. but you ended up here. both of you have different views on the number tomorrow, right? some people -- where are you on the number tomorrow? >> 165. >> is that good enough? >> you have to put it together with the whole package. you have to recognize in recent years there's been a trend to underreport the august send september number, so maybe the risk is on the sof side

tomorrotomorro soft side, then the revision, . >> i could careless about the report. it is one of the most heavily revised economic stats that the government puts out. when you look at jobless claims, actual filings, what you see is a relatively tight labor market and wage inflation creep into the system. you put those two together, the mandate is being met. it still feels like this is a soft economy, people are spending time getting into the labor force, but at 9 same time we hear businesses are having a hard time finding qualified employees. the wage rate is going up, the inflation numbers are ticking up. we're sitting at a quarter point? this feels like a no-brainer to put another quarter point on the table a year later. >> in the specialized economy we have now, isn't it possible to

have a shortage in these positions but still have a glut in the average -- >> easily. people have a hard time moving from one place to another. >> we call it a tight labor market based on not having enough engineers does that mean it's a tight labor market across the board? >> the 4.9% labor economy is -- >> you look at other measures and it's not -- >> you look at the other measures, the fibc survey, i would say if unemployment stopped falling at 4.9, it's a tight economy but not a big overheated economy. the question is is the unemployment rate going to resume the downturn. if you get anything north of 150,000 a month in unemployment, it's unambiguous that unemployment keeps falling. the fed chair made it clear that the reason they have paused is because unemployment has paused. >> the key here is the openings

per actual job applicant is down to 1.4. that's a very, very low level. all the businesses when you see the surveys, they're all feeling the pressure of not filling spots and raising wages. that tells you what's going on. when you see it start creeping into the wage numbers, that is the sign. tends to be the important component of what people tend to refer to as sticky inflation, inflation that creeps in and stays in the system for a while. it ends up rolling to other parts of the business. a quarter point, the fed is at a point where they have to do that next quarter point. >> is it -- jim, i keep making the point that japan and europe are both still in their -- they're headed that way. still loosening. they're still priming the pump. we've all said that you look at where rates are, there are negative rates. is it really the right thing now that we're going to diverge from what they're doing? shouldn't we wait until they stop easing? >> even europe seems to be

getting ose to the end of their easing process. there's a story this week about tapering of the qe program. the dollar has been flat to down slightly over the past year. >> all right. this our last employment report this week? one more? >> one more before the election. >> jason, did you see the beaver on his ring? >> what does he got? >> an m.i.t. ring. >> you were there yesterday. >> yes. i got a business card from a professor who wants you to come lecture at a class. about. >> what? >> economic -- it's sloan, a sloan class. >> really? >> yes. i'm not joking. >> you said yesterday that you were in the joseph r. kernen atrium that they had unbeknownst named after me. >> the development office wanted me -- >> i went home and told my kids, i told them all there's an

atrium named after me. >> when you send the check. >> and add a couple zeros before you send it. >> that's a big check. >> do you think for that -- at the end, bubba was charging 600,000 for a speech. can i get that -- >> up at m.i.t.? i don't know. >> you didn't talk money? >> we didn't talk money. no. no. i think they might offer a train ticket and-- >> bus ticket. >> on the regular train, not the acela. >> i have to come back at the same day. >> maybe put you up at a dorm. >> okay, davos. he lectures constantly. breaking news that happened yesterday, the federal contractor suspected in the leak of an nsa hacking tools has been charged with stealing classified information. eamon javers joins us this morn. he's back in washington. >> fascinating story.

we learned that an nsa contractor had been secretly arrested back in august, the documents not unsealed until just yesterday. we learned a little bit but not everything about what is going on here in this spy case. not necessarily clear it's a spy versus spy case. let me tell you what we know as of right now. the man's name is harold t. martin iii, of glen burnie, maryland. 51 years old. he worked at boos allen hamilton, a big contractor that does a lot of intelligence work. is he charged with theft of government property and the unauthorized removal or retention of classified documents that fbi ayegents fou inside his home when they raided his home. not clear what he intended to do

with the documents, whether he was working with a foreign intelligence service or anybody else. but the assistant attorney general for national security, john carlin, told you yesterday that there's a lesson here for businesses that have to protect their own secrets. >> for businesses watching today, the threat of insiders is real. what can happen is that you have amazing defenses to protect your intellectual property, other secrets from those who are trying to obtain them outside the company walls, but you forget to have a program where you watch those who you trust. those -- the abuse of that trust is within of the most serious threats a company could face. >> the "new york times" reports that martin is suspected of taking the highly classified computer code developed by the nsa to break into the systems of adversaries like iran, north korea and others, but it's not clear what he did with that

data. they said they found it in his house. did he pass it on to a wikileaks or a shadow broker entity? was he working with a foreign intelligence service. all of that still to come. we had a lot of nsa officials in the room yesterday in cambridge, massachusetts as this story broke. i talked to a number of them. they wouldn't comment for the record, but you get the sense there's a bit more nuance to this story that we'll discover in the days and weeks to come. >> do you have any sense given your reporting over the last 24 hours -- it was interesting to be with eamon while the news was breaking, also around all of these nsa officials, any sense that there's a chance that this information was passed to anyone or that there was contact about it being passed? that was the one piece that seems to be up in the air. >> it does. it is still up in the air. authorities are trying to figure out his motivations what his politics are, what his ideology is, if there was a financial

incentive or if this was just a guy taking some stuff home from work. we've seen that in the past. even very high ranking intelligence officials taking classified stuff home to work on on their home computers. people can be sloppy and lax. there's at least a possibility here that that's what was going on. when we talked to the officials yesterday, they say the thing to remember is they have clearly come to the conclusion this was an intentional act by mr. martin. so they think something is going on, and it's evident that even after they arrested him in august, it is october and they still don't know what's going on here. >> as you stuff it in your sock and pull the pants down over the sock, that's probably not just taking it home from work. >> that's right. we've seen a case like that before. >> i know. i remember that. oh, that? how did that get there 12346789. >> what was that doing in there? >> it could happen to anybody. >> wasn't thinking.

and -- all right. thank you. coming up, nearly 2 million americans near the atlantic coast are being urged to evacuate their homes. one of the biggest evacuations ever as hurricane matthew approaches. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. and it's got the spring and bounce of a traditional mattress. you sink into it, but you can still move around. and now that i have a tempur-flex, i can finally get a good night's sleep. buy the most highly recommended bed in america for as low as $25 per month and a 90 night free trial. i am benedict arnold, the infamous traitor. and i know a thing or two about trading.

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welcome back. hurricane matthew is slamming the bahamas right now. nearly 2 million people are being urged to evacuate. morgan brennan joins us live

from daytona beach, florida. hi, morgan. >> reporter: hi, melissa. this hurricane is regaining strength, that's according to the most recent update from the national hurricane center. we have the hurricane warning extended further up the coast as well. in light of that fact, look at this. this marathon gas station here in daytona beach is out of gas. it's expecting to be refueled a bit later this morning, but these bagged pumps is a common sight from west palm beach to daytona peach. it's already pushing gas prices higher. the average price has ticked up a few cents since tuesday. depending on how this storm affects infrastructure, that price could spike much more dramatically in the short-term. now we're seeing similar situation with people stocking you up at retailers throughout the region as well. we have store shelves picked clean of batteries, bread, water, generators. that's one of the biggest worries here is power. florida power and light expects

outages for 1.2 million people on its 10 million customer network. the utilities telling me it has staging sites prepped and 12,000 workers, many from out of state, on stand by. it's a similar situation for the insurance companies down here as well with thousands of adjusters on standby. we have the ports shutting down, canaveral, ft. lauderdale, miami are closing or closed. crudessh sh kriz cruise shapes have been rerour rerouted. many hotels are being shut down to the general public starting today. the hurricane has not even gotten her, but this is the worst one that we will see in a decade in florida. >> are there damage estimates yet. i've seen $15 billion estimated.

>> a lot of insurance companies are not willing to give those numbers yet. the expectation is damages in the billions of dollars. the impact alone just from more than 1 million people not going to work right now is estimated to be more than $100 million a day. >> wow. that's a figure. morgan, thank you. switching gears on the campaign trail yesterday, donald trump taking on a controversial issue that has come up many times on this show, how to pronounce nevada. >> meth overdoses in nevada -- nevada. you know what i said? you know what i said? i said when i came out here, i said nobody says it the other way. it has to be nevada, right? if you don't say it correctly, it didn't happen to me, but it happened to a friend of mine, he was killed. >> actually it's nevada. >> nevada. >> it is nevada.

they get mad if you don't call it nevada. they do. i heard him say nevada before. it's -- you can look at -- google it. brian williams got in all kinds of -- >> not a tomato tomato situation. >> where it could be either. >> one way. >> trump was speaking at a rally in reno, nevada. when we come back, the breakfast bounce, it's been a year since mcdonald's rolled out all day breakfast. what has it meant for the stock and we'll talk to the newly top rated analyst covering the restaurant sector. back in a moment.

now that fedex has helped us simplify our e-commerce, we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce. ♪jake reese, "day to feel alive"♪

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welcome back to "squawk box" on cnbc. u.s. equity features at this hour after a decent session yesterday, down 30 indicated on the dow jones. the s&p indicated down five. the nasdaq off about nine. >> our top corporate story, twitter shares plummeting overnight following a report by re/code that disney and google will not be bidding for twitter, an apple also said not to bid. twitter says it wants to

conclude sales talks by the time they conclude third quarter results, had is october 27th. >> it seems like it was just yesterday, and i thiit has been since mcdonald's launched all day breakfast. so far the strategy is paying off. susan lee has more on the breakfast bounce. >> it's been 12 months, 12 months since mcdonald's started offering breakfast all day long. that proved to be an inflection point, ending fears of falling sales and igniting a recovery in the stock price. breakfast accounts for a quarter of mcdonald's sales so it makes sense that they're expanding the menu. they're adding mcgriddles and testing breakfast happy meals. that would be the first new happy meal since 1983.

but the breakfast boost may be plateauing for mcdonald's. the shares are down for a year despite a dividend hike earlier this month by 5%. the golden arches also trying to sell off some restaurants in asian markets and moving to a franchising model like here in the u.s. reuters says maybe they will get $2 billion for china, hong kong and korea. the u.s. still accounts for the bulk of mcdonald's businesses. last year comparable sames in the u.s. came in at half the rate which hit the share price. >> wow, it was on a roll until it got to 130. it was in the 90s a year and a half ago, 80s before that. it ran up to 131. >> the prospect of the tougher comps put a damper on the stock. >> the twins like breakfast? >> yeah.

i like breakfast. >> that's what i mean. don't put the twins under the bus, i like it. >> have you done breakfast for bin e. d dinner? >> have not. >> waffles, pancakes -- >> we do that at home. >> yeah, that's what i mean. >> i thought you meant at mcdonald's. >> we've done cereal for dinner. >> with whole milk. >> love cereal. susan, stick around. we'll talk more about the restaurant sector, we'll find out whether this gentleman likes to have breakfast for dinner, john voss joining us, named top analyst on the institutional investor all american research team. want to congratulate him. john is a restaurant analyst at morgan stanley. good morning. >> good morning. >> breakfast for dinner?

>> breakfast for lunch. >> breakfast for lunch. >> egg mcmuffin for luh, fantastic. >> let's walk through some of your top stocks. before we get there, i don't believe mcdonald's is on your top stocks list at this point, before where do you put mcdonald's? >> it's third after starbucks and yum. same-store sales have slowed in the second quarter. third quarter may be weaker than that. and the first quarter of next year could be negative. i think that's an overhang on the stock. i think investors want them to go further on cost cuts, and the dividend pay-out ratio has been high. they raised the dividend growth, so that's an overhang. fantastic long-term business. but that takes longer. >> make the case for starbucks. i'm drinking an iced coffee now with a green straw. >> starbucks is probably -- i

following starbucks for nearly all of its 25 years of being public, probably the singular best growth stock in all of consumer. still growses global square footage at 8%. same store comp sales are slower than last quarter or two quarters ago, but they're outcome ing the industry. you have a lot of white space they have not entered. this is a fantastic business. it's interesting, 25 years on, starbucks is still about 25 times larger than the next biggest direct competitor in the u.s. it's a fantastic business with a nice mote around it. and 15% earnings growth in a world with not a lot of growth. >> you like wing stop, but i want to ask about a competitor, buffalo wild wings. what is seen as the value there is forcing the store to go more the franchise route. i'm wondering if you see that same potential upside for a name

like buffalo wild wings. >> wing stop is an all franchise business. i call it the subway of wings. it's an asset-light business. th attracts investors to . buffalo wild wings is a different business. largely a dine-in business. sports bar. refranchising is more difficult. having said that, i think directionally the point is correct. as you begin to mature, returns decline, selling restaurants to franchisees is the right move. the question is rate of change and pace of re-franchising. i think that's an ongoing discussion. >> john, you mentioned yum. that was a pick ahead of mcdonald's, yesterday with disappointi ining results and same-store sales in china disappointing. i'm wondering if you think yum is still a buy. >> we've taken a slightly more step back approach in yum.

it's going through a lot of changes this month alone. earnings last night and this morning. next week a big analyst day. of course they'll spin off china on november 1st. the core business, the ongoing business is asset light business, a lot like dunkin or dominos. that got investors attracted, and that will mitigate the risk. i think china could be an interesting business after it gets spun off. in part because you often get these spinoffs as orphan stocks. you're right. those china sales last night were not what they hoped for going into a spinoff. they cited some idiosyncratic geopolitical reasons why, but yum china has had problems reigniting same-store sales. it will be an important stock in china. over $10 billion market cap. it's going to be a revant stock

relevant stock. >> panera bread company. you have a huge expectation on that in terms of the multiple. >> so, i think that panera is a great example of a company where it has underearned for the last three years. so the current earnings base doesn't reflect the to tent initipotential. now you have ineitiatives to drive sales. sales going up, margins going down, that is a good outlook for long-term performance. i think the market has rerated the stock near term on those fears. relative to others where you don't have the margin and sales opportunity, looks attractive to us. >> carbs. carbs are tough. >> the name -- >> panera bread. >> they should rename themselves to just panera. >> exactly. >> not a safe zone. john, congratulations on making

the big list. appreciate your time. >> thank you. >> people kay it's called brinner breakfast for dinner. >> really? what if you have dinner for breakfast. >> ham and eggs, something like that. you guys remember the seven meals of the hobbit? >> no. >> seven. >> breakfast at 7:00. second breakfast at 9:00. at 11, 11 zs. lunch at 1, afternoon tea at 4:00. dinner at 6:00, supper at 8:00. seven meals. >> right. >> angioplasty at 10:00. >> right. >> not bad. not bad. >> little humor in the morning. >> you get some sleep last night. >> i don't know what happened. maybe not. maybe that explains it. >> i did not prepare you for that either, right? >> impressive. impressive. >> susan, thank you.

>> susan li. coming up, the biggest mover stocks to watch, and america's biggest mall will stay closed on thanksgiving. details straight ahead. a quick check of what's happening in the european markets now. red arrows across the board. "squawk box" will be right back.

it's time for the executive edge. starting with a few stocks to watch. a alnylam pharmaceuticals dropping 40% after stopping a drug that was supposed to help heart failure. that is amazing. >> i saw that last night. what was i doing? >> probably something much better. >> 5:00. where was i? i do have some things. not an unbelievable life, but i have certain things that happen. >> you're having breakfast. >> yeah. i was having breakfast. >> breakfast for dinner. >> mixing some pancake batter. a late stage study shows patients given the drug were

more likely to die than even those treated with the placebo. that's definitely bad. when it's not -- >> when you're better off taking the placebo. >> yum brands missing forecasts. i don't know which order to put these in. pizza hut, taco bell, kfc, same-store sales fell for its china business by 1%. yum is spinning off that operation next month. walmart is nearly doubling its sake in jd.com to 10.8%, this after they bought stake in the site as part of a deal under which it sold its chinese online retail business to jd. >> leon cooperman's omega advisers will no longer manage

goldman sachs. they were charged with insider trading. cooperman maintains he and his fund did not do anything improper. cooperman a former goldman sachs man. the nation's largest shopping mall will be closed on thanksgiving day. mall of america in minnesota has been open on turkey day since 2012, this year it wants to offer workers time with families. the mall says some tenants will choose to be open so it will have security and other key personnel on site, but the mall expects most stores to be closed. the mall will resume full operations at 5:00 a.m. on black friday. coming up, exploring the mysteries of the universe. astronaut michael massimino is here. we'll ask him about the mission to mars and a new discovery on one of jupiter's moons. "squawk box" will be right back. coming up, new yorker editor david remnick will join us on

set. we'll talk politics and geopolitical hot spots. at 8:00 a.m. eastern, a read on the markets from glenn hutchins. "squawk box" will be right back. this car is traveling over 200 miles per hour. to w, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.

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late last month we got word nasa that the hubble space telescope may have spotted plumes of water vapor shooting up from a moon europa. a former astronaut is joining us that knows something about hubble. you fixed it twice and i assume it wasn't in a warehouse here on earth. >> no. we had to make a house call for this one. >> let me finish this and then drill down on this. mike's new book is called "spaceman: an astronaut's unlikely journey to unlock the universe." welcome. >> pleasure. >> you had toe leave the place where you were to go out to fix this thing? >> yeah. we had to get outside. it's really big. you couldn't get it inside the

spacecraft. it was easier to send us out to do it. both my missions to the hubble had five space walks. we spent a lot of time outside. we set records for both of those missions, a team record for the amount of space walking time. >> you're not tethered are you? >> no. you always have your safety tether on just in case you happen to for whatever reason forget and let go or not be safe or hooked up locally. you always have the safety tether to pull you back in. >> it's a good idea to be careful? >> it's really important to be careful. you really want to be careful and you don't want to -- your safety tether should work, but you don't want to invoke that. you don't want to go out 85 feet and come back in like a fishing reel. >> is that how far it goes out? >> yeah. you have to translate a long time then you're at the end of the leash and hook up another safety tether and actake that o out further.

you always want to be tethered. >> what about the movie "gravity"? >> worry about what happens. >> did you see that movie? >> i did. >> and? >> i thought george clooney was a cool astronaut. when i watch the space movies -- so you're not going to get an education. there were a lot of things that could never happen. you can't go from hubble to the international space station. it's impossible. you can't do that. but i thought george clooney was cool. so i liked it. >> like the other space stations were, like, i don't know. 2500 meters away from the others. >> they're in different orbits. you can raise your orbit up and down. because that's how you lower it. but you can't go to another inclination. impossible. but it's still a good movie. >> before you saw that you had seen "2001." >> probably when i was in high school or something. >> it's still going like this. >> he's a permanent monument to the make believe space program.

>> he's probably looking at jupiter right now. >> he's gone a long way. if he had a gopro on his head, you'd want really good batteries you could bring -- we had some. we had one of the star trek movies that had just come out at that time. they gave us an advanced copy of it. we didn't get a chance to watch it because we were busy. but at the very end of our mission, we got to watch it and we watched it in chunks. but we got to stay up late to watch it. >> mike, all the renaissance man billionaires are now rediscovering space for some reason and mars. >> they like it, yeah. >> they do. >> which is good. >> it is. but obviously we have to do this eventually. i want somebody else to do it, but we have to do it eventually. it's going to take a long time to get there. what really valuable things would we find out? i mean, is it worth the expense, the time? >> well, yeah.

i think it is. >> just to do it? or to help us here? >> i think what -- there's -- i think there's a few things going on. for the government program, we're not trying to make money. with the program we're involved with, we're trying to answer questions and keep our understanding going. and if you look -- i talk in the book there's many hundreds of thousands of years ago we didn't understand things. like we didn't know where volcanoes, why they erupted. so they made up things to try to explain it. some god up in heaven. whatever it is. we're getting mysterious things happening. now we understand why a lot of these things happen. and that's what we're doing with the space program. we are starting to increase our understanding of where we came from or how did we get here. where did we go afterwards and so on. a lot of these answers don't exist here on earth. these answers exist outward. understanding how our solar system was formed. and what is going on out there. i think that's what the government program does.

with the entrepreneurs like jeff bezos and elon musk. what i think is exciting is they see a way to make money off of this. >> well, there are materials that we may not know about that can substitute for things here on earth. >> correct. what the apollo program did in the '60s was make so many advancements with computers and materials and fuel pumps and a variety of things that influenced our world and the research that went into it, the dollars that went into e the research program, there's no way too to quantify that benefit. but it was huge in the '60s. we had such an effort in research and development going on at that time. i think a lot of that was because of the apollo program, the space program. i look at our basic understanding of exploring where we came from, who we are. that's one thing. then we get into our economy and the advances of technology and other things. what these see a possible golden

age of the possible howard hughes. >> if you had to work for one of them, which one would it be? >> offering me a job? >> i'm just curious which you think is the most viable. >> i think they're all trying to do different things. i think that elon musk is -- has a vision of trying to go not only to low earth orbit which he's doing helping with nasa to get us flying to the space station but now further. i really like what jeff bezos is doing with his program. he's developing new engines that are really going to help lots of people. our country and other countries. i think they're all great. i really do. i couldn't pick one. >> mike, thank you. our guest host for the next hour. when we come back, david remnick from the new yorker. we'll talk more when we return. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now.

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counting down to the jobs friday. ♪ it's the final countdown >> what the number could say about where interest rates are headed and where the markets might go. plus it's walmart's investor day with the nation's largest retailer. whap is the next move against amazon? that is moments away. cyber security and russian relations front and center. we're going to hear from the editor of "the new yorker" david remnick on both of those issues. he joins us for the hour as our special guest. and the search for a buyer continues. google and disney say they'll p pass on buying twitter. so who's next? that and more on "squawk box" right now.

live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin and joe kernen and melissa lee is in for becky quick who is now officially off. baby coming. not re yet, but almost. we're getting close. take a look at the futures right now. see how the market is setting itself up for the morning. we do have some red arrows. dow looks it would open down if it was right now. the nasdaq off about 7.5 points. here's what's making headlines this morning. twitter shares are under some pressure. rico reporting that disney and google will not move ahead with a bid for twitter. one economic report due out this morning with a look at initial jobless claims. that due out at 8:30 eastern time. investors are looking to tomorrow morning when the september jobs report will be released. and hurricane matthew is now

responsible for 26 deaths. it's slammed the bahamas and is taking aim at florida and the carolinas where officials have already evacuated a number of areas. a new scare involving samsung's galaxy note 7 which is under recall. hundreds of reports of the smartphones spontaneously catching fire. anyway, firefighters in louisville yesterday responded to a southwest airlines plane after another galaxy note 7 caught fire. here's the twist which is really kind of unsettling. this was the replacement phone that the owner had already gotten for the one that might spontaneously come bust. the guy's name, we talked about it -- it's not brian austin green from 90210 who knew ian ziering. >> recap of the conversation we had. >> you're totally with us. you're following exactly where

we are. >> new phone is not supposed to explode. >> what about the replacement phone? >> that's a bad feature. >> negative feature. anyway, brian green said he had turned the phone off and he had put it in his pocket which is even worse. especially your front pocket. ouch. then he heard a loud pop and smoke pour out of the pocket, of the phone. >> the pants are burned. >> then he threw it on the floor and then the carpet was burned through. now, the flight was canceled and green said he got the replacement phone two weeks ago after he turned in his recalled phone. they were recalled last month after these happened, a series of fires. but the serial number on these phones indicate it should be one of the safe ones and the faa is investigating the accident. couple of other news items. yum brands, the parent of pizza hut taco bell said its china

business fell 1%. yum is spinning off that operation next month. walmart is doubling its stake in jd.com to 10.8%. part of a deal under which it sold to jd. much more on walmart in the investor meeting taking place in just a little while. and suspicion he stole computer codes. spoke to u.s. assistant attorney journal john carlin at a cambridge cyber summit shortly after the news broke. >> the threat of insiders is real. and what can happen is you have amazing defenses to protect your intellectual property and secrets from those who are trying to obtain them from outside your company's walls. but you have a program where you're watching those who you trust. those -- the abuse of that trust is one of the most serious

threats a company can face. >> for more on the importance of updated security and much more, we'll bring in our guest host for the next hour. david remnick. he is the editor of "the new yorker." and this weekend is the 17th annual new yorker festival. tech fest as well tomorrow. and you're interviewing -- >> reed hastings. >> and bruce springsteen. >> he's not a technology guy. he uses microphones. but the day-long tech fest at which we have reed hastings the ceo of slack, all kinds of people, david chang. and then we have a weekend long new yorker festival which has been going on for 17, 18 years. it kicks off tomorrow night. i'm introducing bruce springsteen and louis c.k. >> you are not supposed to call him the boss. >> you are not. if you're from new jersey like i am, you know that. >> why is that? >> he gets a little grumpy about it. i think if you're a working

class hero you don't want to be called -- >> oh. >> that's deep. that's one of -- >> that's the kind of insight you get there. >> you don't need any microaggression coming from you, i don't think, does he? >> here we go. >> one of the topics i imagine might come up tomorrow is the issue of security. >> it's got to. >> and the news yesterday. some people are calling this the second edward snowden. >> i don't think we know enough. you know the story better than anybody, i think. but it is clear that there's a problem. journalists have to think hard about how they deal with this kind of information. it's a complex of enigmas that are -- >> but how much do you worry that -- now, we don't know exactly the story. >> we don't. >> nobody knows whether this data, whether he was selling this data. whether someone was trying to pay him to get this data.

or whether he brought it home and was going to use it for himself. >> there's a history of people in government taking stuff home. i mean, john deutsch. these are people at high levels. so it's always fun to speculate because it just is. but we don't really know enough about this particular guy that he's a clone of snowden in some way. >> how much was it? what was it about? >> it was a ton of material. >> a ton. >> roughly speaking. >> but this was code that you could use to break into other foreign -- to surveil other foreign governments. >> that's right. so it's pretty -- >> it's -- i mean, on the surface it seems worse that he took code that can be used to surveil as opposed to just data. >> he doesn't sound like an idealist. this doesn't sound like a snowden style. >> so far there's no evidence so far this is a politically or ideologically motivated crime. with the word alleged next to all of it.

so far there's no evidence yet that he was, you know, in the service of a foreign government. there's just not this information yet. and yet this arrest was made with great drama in august, in fact. and until "the new york times" declared that they were going to publish this information, the government was going to keep it secret. >> i want to talk politics with you. >> where are we on snowden? my view has changed on -- i softened a little bit. is that the prevailing thing? >> i think people's point of view has to do with where they sit. >> must be sitting somewhere else because initially -- >> you know, i'm a journalist. and i am not going to over time have all my information come from official sanction sources. right? i mean, the notion that somehow journalism -- i've gotten yelled at as you probably have by people in government that somehow we journalists are committing a crime, committing a

crime by publishing information that's not sanctioned by whatever surface level information. now, on the other hand, the governments are going to argue in order to function, in order to have security on levels we need a degree of secrecy. the promise from them is that the snowden revelations revealed things that are extremely telling about way business interacts with government, for example. the nature of surveil and state if you want to call it that. we learned quite a lot. and so the cliche now, the kind of middle ground cliche is snowden started a conversation that was essential. >> as a society, it's tough for me to get out. we may have benefitted from snowden. you know the president. pardon? would he doefr that? could this guy ever come sfwhak if he comes back, does he need to go to jail? >> the now ex-attorney general

eric holder hinted he was for that. i don't know anybody in the administration that's closer to the president than holder. would i be surprised if on the last day he pardoned snowden sitting in russia? i would. this makes it difficult. >> have you seen the movie? >> i have not seen the new movie. but it's oliver stone's movie. you have, i'm sure. >> i did. >> see. >> he's got nothing but time. >> but i think i told you this. maybe off air. i watched it for the first hour and i walked out. i really didn't -- >> it's just too relaxing. it's like being o an airplane. >> was it just bad? >> with apologies to the -- >> did you see "gili"? >> of course. >> you didn't walk ut? >> no. >> "beaches." >> okay. that is bad.

>> i found one. >> why would i walk out. ? >> you can always have popcorn. that's kind of why i go. because it's the real butter instead of the fake microwave stuff. >> related to all this, the yahoo news. >> how did we get on that? >> i don't know if you've been following the yahoo news the last couple of days. >> this is precisely the story we might not have gotten, we were not aware of enough had there not been a snowden moment. and so i think, you know, it's -- i think it's difficult for a lot of americans seeing edward snowden sitting in moscow to be completely forgiving of him. at the same time we now know that corporations like yahoo and others in silicon valley were cooperating -- >> but what's politically pal e palatab palatable. if they were searching for the word terrorist, orlando, and club, would you think that's fine or maybe not?

it would be one thing if they were looking for trump or tl clinton supporter? but where do you think the public is on this? >> what is the public? i mean, the public has got a range of knowledge levels and opinions. i couldn't say where the demarcation level is. and i think it's only a very few people on one side of the political spectrum who have no interest in security whatsoever. and there's probably only a very few number of people who are absolutists about this and think that the government should have all -- >> where did you -- >> -- made "the washington post" and "the new york times" they are in reporting. would we rather live without that? that came from an illegal government leak. >> where do you think the public stood on apple and unlocking the phone for san bernardino? >> very polarized. >> that's the same thing. it's the same case. exactly the same case. and this is much more. >> but i would argue actually

the folks he's going to be talking to tomorrow especially in silicon valley have a very almost like a libertarian view. right? some of them would like to, you know, take the laws back that you can wiretap phones. >> so there's nothing to try to get anyway. >> is yahoo a black sheep in tech now at this point? for cooperating? >> i don't know if it's a black sheep in tech. but in political terms, that level of cooperation with the government makes a lot of people very uncomfortable. >> was it the acting? or was it the script? what was the -- >> cinemaing tographcinematogra? >> it was tough. >> did you see "salvador"? >> it was tough. >> it's a great movie. and oliver stone's not always bad. >> in fairness, the movie started late and i wanted to be on my game on "squawk" the next morning. so i sort of -- for you. >> it's all for joe. >> it was a couple of thought

processes. >> and his phone exploded. >> and he had finished the popcorn and the goobers. i want to talk all sorts of stuff with you. so when we return, we'll talk marktss ahead of the jobs report tomorrow. take a look at the futures before we take a quick break. back in a moment. and later we should tell you walmart's investor day is coming up. we return in a moment. ♪ we're drowning in information. 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.

we're talking here. oh. can you believe that? they interrupted me. rude. the market's getting ready for tomorrow's jobs report. let's talk more about the challenges facing investors right now. joining us is rob martin senior u.s. economist at barclays and paul hickey cofounder of bespoke investment group. i'm kind of an a rant the last couple of days, guys. it has to do with the whole reason that we've gone so slow in terms of the tightening cycle is because the rest of the world is moving -- we could always say look at 10-years, look at where these are. how can we go up? i mean, the bank of japan, the ecb, they're still moving that way. why shouldn't we be going the other way? why won't that be the wrong

move? >> i'll tell you. you've got to kind of move on the tightening cycle here. you've got to get moving along. the jobs picture in the u.s., the economy overall looks -- >> suddenly we're not global anymore. suddenly they're domestic -- the economy's different, we're divorced from the rest of the globe all of a sudden? >> that's right. to a large extent. it's not there aren't linkages. it's not it doesn't matter what else happens in the world. but the european debt crisis, the u.s. has kind of steadily gone on gdp growth 2% to 2.5% job growth around 200,000. over the last year, we've been running about a pace of 1.8 million private sector service jobs when you kind of strip out the manufacturing effect of that. that's actually a record high for the united states. the u.s. economy is good. and those jobs are spread across the economy. it's not that we're just adding a lot of crappy retail jobs. we're adding nice jobs across

the board. >> rob, i guarantee something between now, so you think december? >> i do. >> something that happens between now and december whether it's a bad jobs number, it could be -- these guys on the fed now can look at three data points and decide not to do something. or cyprus gets a monetary crisis and we don't do something. right? >> because of the split on the committee. so you've got a committee who is split by who would not raise after seeing obvious harm near zero. and other guys who want to raise rates today. you get to that table and the power balance swings toward the dovish side. >> these guys have gotten more -- it's like they're starting i think to be affected by the criticism for staying at zero. they're starting to think, wow, we have lost credibility. they want to do december. you can hear it more. >> i think so and to your point, you know, december seems on the table. if something happens, it's going to be later.

there's always something. but the governors are more do dovish on the fed side. that's one reason i think the market is doing well here. we have all the problems outside of the u.s., we have slow steady growth in the u.s., and that's causing a premium on assets. when you see those kind of events happening in developed safe markets, it causes a capital to flow to more stable economies like the u.s. >> in terms of december or not, the markets are assuming right now that there is going to be a rate hike and it's around the corner. you've seen the decline in utilities. nine straight sessions of declines. the biggest losing streak since 2002. they're already rotating out and maybe exacerbated by low vol funds out there. but you see that move away in anticipation of that hike. >> also in anticipation of seeing stronger economic data, stronger economic growth, and

stronger earnings data. so you're shifting out at defensive into more growth orientated growth sectors of the market. look at what tech's done over the last month, two months here. >> last quarter. >> it's been very strong. and growth orientated sectors are seeing the growth. as earnings and the economy grow, those are the sectors that are going to do better here. >> that's one of the problems we've had with the fed. we're going to hike, we're going to hike. so when markets whether it's guys like me or people actually trading in the market, you kind of start anticipating that rate hike and then something comes up at the last second and the you push it off and you have to start to cycle over again. we could use certainty in policy and more steadiness at the helm. >> all right, gentlemen. thank you. >> thanks. >> thank you. coming up when we return, david malpass, president of

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welcome back to "squawk box." here's the answer to the trivia estion. what is the top apple producing state in the u.s.? with apologies to tim cook, the answer washington harvesting nearly 133 million boxes a year. we want to get back to our guest david remnick. during one of the early commercial breaks i said i wanted to talk about how you create a cover. i don't know the answer. >> i even brought one along. >> you brought one along and we have here donald trump as -- >> as a fat beauty queen. >> so here's what happened. donald trump i think you may have heard this was in a debate. and he thought the best issue to double down on would be his fat shaming of miss universe, of course. and we had a money issue coming up. this is the money issue and it has some great things. we have great new writers in it. and barry blit is an amazing

political cartoonist. he's able to pluck elements out of the air and come up with an idea. and this time he's got donald trump in a bathing suit looking, you know, a bit overweight and the sash across that says miss congeniality and he's weeping. you know, it does what political cartooning -- which is a very old art, a very old fashioned art can do. it can make a point, make you laugh. you know, maybe even have a little political effect. >> how does it -- does he -- >> it was done within two hours. >> do you call him? how does this work? every week do you sit around and commission an artist to do it? >> we have covers that have been sitting around for a long time. sometimes they're just beautiful. a seasonal cover or a holiday or a special issue. but barry blit and a couple of

others are able to, you know, read the culture in some way, the pop culture, political culture, things that are happening now and narrow in on it and come up with an image. sometimes it happens like that. when prince died, i was in a meeting. i get this text, prince has died. terrible tragedy. unbelievable artist, i think. prince is amazing. and within an hour i had sketches on my desk from our covers artist. and we pick one and within an hour and a half, we had a cover image. so this is part of our identity as a magazine and as a part of "the netwo" "the new yorker." not only words but images. but these kind of images and not photographs. that's part of what distinguishes "the new yorker."

>> david remnick is going to stick around the for the hour. when we come back, david malpass is going to be here. also walmart holding its annual investor day today. one of the top topics expected to be addressed, the next move against amazon. we'll find out what's in the works after the break. as we head to that break, look at u.s. equity futures. in the red at the moment. back in a bit.

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among the stories front and center we are watching shares of retailer costco this morning. the company reported same store sales increase of 1% for the month of september. that is double the consensus estimate of analysts surveyed by thompson reuters. that stock up fractionally right now. lamb research and kla-tencor deal is off. they've mutually decided to end the deal because of the justice department's opposition on antitrust grounds. and blackberry will be out with a new keyboard based model out in six months. that's according to their executive. they would outsource all hardware development. the nation's largest shopping mall will be closed on thanksgiving day this year. mall of america in bloomington,

minnesota, has been open on that day. turkey day since 2012. but this year says it wants to offer workers time with their families. the mall says that some tenants may choose to be open, but mall officials expect most stores to stay closed. and it will resume full operations at 5:00 a.m. on black friday. we may sent courtney out there. i don't know. >> 5:00 a.m. is late. >> midnight. >> yeah. exactly. >> and we'll give you a proper introduction now. courtney is here. she joins us with the details. >> good morning to you. ahead of walmart's investor meeting, the retailer announcing key financial guidance. walmart reiterating its fiscal 2017 earnings guidance given in mid-august earnings report. that's $4.15 to $4.35. consensus for up 30. and walmart is looking for flat

earnings in fiscal 2018. analysts were looking for growth there. looking for consensus of $4.46. now they're forecasting earnings growth in fiscal 2019. analysts looking for $4.79. so that guidance is also a little shy. i spoke to walmart cfo bret biggs and he tells me they are expecting e-commerce losses to peak in 2018. but biggs says walmart is strong financially. those were his words. which gives us flexibility and options that other companies don't have. thousand, walmart's also going to detail its plan to slow store growth particularly in the u.s. today when it meets with investors. biggs tells me the retailer wants returns to go up over time but says that walmart hasn't always been as efficient as it could be with the cost structure. walmart will talk to analysts today about being more disciplined with that metric

going forward. now, s.e.c. filings revealed yesterday that walmart increased the stake in chinese jd.com to 10.8%. but bret biggs wouldn't disclose any further details of that relationship when i spoke to him other than saying it's good for walmart long-term. china is a critical market for us as a retailer. walmart also will not be talking about anything holiday related this meeting. they're not going to give any more insight into that small pilot program with uber and lyft that they announced at the shareholder meeting in june. strictly sounds like mainly numbers here. >> bret biggs. >> bret biggs. >> okay. and the ceo has been on a few times. >> yes. >> he refuses to take my advice. mcmillion. one letter. he could go from mcmillon to

mcmillion. one other person suggested that to doug. trump. and that cover, wow. countdown to jobs report is on. joining us now to talk about the state of the economy, trump's senior economic ood visor david malpass is also the president of encima global. i'm going to ask one question because i've got a coanchor over here that is ready to hammer you. he is so ready to talk to you about the $5 trillion that i don't even -- just give me one -- let me ask just one question. then i'll unleash you. >> i'm going under the table. >> david, during the debate, here's where i got a little bit irritated. i was told this narrative that

supply side economics and lower taxes and less regulation and not bringing money back from abroad, i was told that's what caused the financial crisis. and that the way we're doing it now, more redistribution, bigger government, higher taxes was actually the way to go forward from here. and i didn't see your candidate, i didn't see donald trump challenge that assertion at all. i don't think the financial crisis had much to do with supply side policies. and i don't know if that's what drove the car into the ditch and we're not giving the keys back to the people who want to drive it further into the ditch. why not? did you talk to him about this? >> so you're right that there was a giant financial crisis and people have long lists of reasons for it. some are attributed to republicans and some to democrats. andrew's written a famous book on the situation. i think it's more important for us now -- >> can you say the name of the book, please? >> "too big to fail."

>> ding. >> so what we should be talking about is the going forward. we just heard the walmart report. great report by your reporter, but a gloomy report for the outlook. walmart is saying earnings are going to be flat in 2018 and barely grow in 2019. the federal reserve last week said growth was only going to be 1.8% in 2019. so the election presents a choice. do you want the current policies which walmart has given us a clear forecast they're going to stop investing, reduce their investment -- excuse me. they'll reduce their investment in the u.s. and increase it in china. and have slow growth. or do you want a different future for the u.s.? >> we know it's a global malaise. what does he call it savings glut? too much supply? >> that's very frustrating to me that clinton's campaign doesn't want to change that. it's leaving most all of those

policies the same and basically saying that's all we're good for. we can't do better than that. trump is saying that's definitely not good enough for workers in america, for small businesses, for minorities. this system that they're doing simply is failing. that's the whole point of the campaign to say we're going to change taxes, regulatory -- >> you use the walmart example. so let's use the walmart example. how would trump's policies specifically help walmart? i mean, it's investing in china because it's investing in e-commerce in china because it's seen as the next big growth market. its margins here are pressured because it's got to keep costs for consumers down. if the costs rise, it's thinner margins for them. i'm curious if you could just walk through generally how that helps. >> think of all that comes from faster growth. we're growing right now 2% or likely ls per year. it's been 2% per year average.

now in 2016 it's been even less than that. so we're deteriorating. as you grow faster, walmart does better. everyone does better. >> just an overall growth -- >> think of the also benefits for those people worried about the fiscal deficit, faster growth really makes our fiscal strength more powerful. walmart is saying they are strong enough fiscally or financially to withstand the really slow growth that's being presented by the u.s. economy. we have to create a world where we have peace through strength. u.s. peace gives us -- through strength, we can have a safer world environment and a safer city environment in the u.s. and that's just not being offered in the clinton campaign. >> david, i want to try one thing out on you. this is from "the wall street journal." specifically about the trade gap. he says slinking the deficit by rewriting trade deals is now the corner stone of the trump platform. he says this economic pitch if

enacted would likely accomplish the opposite. a bigger, not smaller trade gap. explain to the extent that you think he's wrong why? >> so as you have faster, much faster growth, you're going to be importing more but you're also going to be investing more in your country. so if you have better trade deals, the deals are better negotiated, they're abroad. one of the failings of the u.s. trade deals is it's not working for mexico either. you go to mexico and say how is nafta working for you? they don't like it either. sop renegotiating the deals in a way that works better for the u.s. and it ends up working better for mexico. they haven't done the reforms. within a trade deal, countries were supposed to do structural reforms. korea was supposed to do that. mexico was. china obviously was supposed to do a lot more than it has. so if that can be negotiated within trade deals, you're going to have faster world growth. the imf was just out this week

lowering -- they've been lowering their world growth forecast now for three years i think in a row. down to the point where it's basically a global recession. so don't you want to break out of that? >> that's a good leading question. that's like a salesman. >> did a very good job with that. >> we do want faster -- andrew, you have to say yes you want faster growth, don't you? >> i do want faster growth. >> then you must agree with him. >> i think this is a question maybe the business audience won't be asking as quickly as average people watching the debate. what gives you the confidence that donald trump has the intellectual wherewithal and business wherewithal in light of what we've learned from the tax reports, what he refuses to tell us about his business life, and his mastery or lack of mastery of the detail of policy. what gives you the confidence given the complexity of the world economy that he is a better bet than barack obama was

and hillary clinton might be? >> one of the confidence is just that what he's done with his business. i go into trump tower and there's lots of activity. here's somebody who's created a very viable presidential campaign out of a very small starting point. so that's pretty successful as a politician. >> a lot of activity in trump tower. that's not a master of the economy. >> you get a mastery through having activity and you get it around new york city through building buildings. so everywhere you go, you see trump buildings that were put up successfully. meaning in time, on schedule. which the government can't do. and then -- >> this is a marketing mastery. nobody doubts his marketing genius. >> but the decisions that he made -- look at mike pence on tv. where did mike pence come from? it was a careful interview process by donald trump. his family went to breakfast with mike pence in indiana. that's a brilliant way to choose personnel. >> breakfast.

i'm not quite sure what you mean. >> well, i don't know if you know how they picked mike pence. he had been carefully vetted. they get together and they see mike pence in his home and like what they see. this is a guy from roots in indiana. so that's a -- that's one of the biggest decisions a president makes. at least as a nominee. and it was a great decision. the convention went well. so you've got -- when there are decisions being made, they're being made well. a point i wanted to make is you were contrasting with obama and clinton. we've had had a total disaster over the last eight years of economic policy and foreign policy. you can't imagine if you go back, run the clock back eight years and say we are going to be in this situation on the foreign policy today. you couldn't have imagined anything going worse than what's happened with crimea, with syria, with libya on down through the middle east with the

distance between the u.s. and ifz israel one of our major allies. we can barely talk with them. this shows you policies that i think have been utter failures. my current comment in "forbes" talks about the outrages of the obama and clinton administration. one after another from the e-mails to one scandal to another, pay for play. and so trump offers an alternative. do you want things to be the same like walmart is giving us a really weak forecast? >> i think local -- i mean, any private sector experience, a local hardware store would be probably preferable to zero private sector. if i just had trump tower, i'd be proud of myself. then there's golf courses in scotland and west palm beach and jersey. >> one of the biggest losers over the last eight years has been small businesses. and trump's policies -- tomorrow on "squawk box," it's the most important number of the month. the september jobs report.

will the data sway the fed? what do the numbers say about the strength of the economy? and how will it play into next month's presidential election? a full lineup of market pros are ready to guide you through the morning. that's tomorrow right here on "squawk box." starting at 6:00 a.m. eastern time. profit from it. you want your nes to be understood no matter where you go. you want an experience that feels highly personalized. with watson on the ibm cloud, travel companies like wayblazer can apply cognitive analytics to social data to understand what a destination is really like. and who exactly, it will appeal to. today watson is helping businesses create experiences that revolve around you. because that's what the ibm cloud is built for.

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the u.s. pulled out of talks with russia this week aimed at reducing violence in war torn syria. two of the biggest challenges the next u.s. president will face. for more on this let's bring in the professor of international affairs at the new school and author of "the lost khrushchev." and also david remnick is here from "the new yorker." he was also the moscow correspondent for "the washington post." a lot of russian knowledge here on set with us. and they were just speaking russian to each other, by the way. we'll try to keep it in english. professor, if there is a president donald trump who has already expressed his admiration of putin, how does this change the dynamic? >> i think president donald trump just walked back his

admiration for putin. he said he doesn't admire him. he doesn't love him. he doesn't hate him. he'll see how putin responds dooetss strength. i think that's the beginning of a not beautiful friendship. because they -- if president trump becomes president and has all the american might behind him and putin always wants to show that he's the mighty one, that's going to be a great -- in front of the world's eyes right there. >> i mean, the russian people have said that they wanted a president trump for a long time. that should tell people here in the u.s. that that's maybe not what we would want. right? >> it's very important to distinguish this notion of what the russian people want. remember the media in russia is absolutely controlled by the russian government. it's extremely sophisticated. when we hear about the popularity of vladimir putin, yes he has a lot of nationalist

popularity. but it's on saddam hussein levels. it's near the high 80s. this is not a democratic society or semi-democratic society. when it comes to syria, it's very important to take into account what is donald trump exactly saying. on the one hand he thinks our military is a disaster. on the other hand we're going to lead through strength. on the other hand he's a neoisolationist who doesn't want to be involved. it has no coherence involved. there is no doubt that russia is a terrible actor in syria. malicious and pernicious in every way. ask any child and man and woman on the streets of aleppo. the bigger more complex question that president obama has had to wrestle with and you can argue with him is what to do about it.

what the united states should do about it. is donald trump suggesting we stay at home and do nothing and be friends with putin? in a shooting war with russia? there's no coherence i can discern. and it's dangerous. >> what do you make of it, professor? >> i think a shooting war with russia is not a good idea for any president. i think the conversation with russia needs to continue. and i think the french president, french foreign minister now is already in moscow going to moscow to continue conversations. it does seem that it is a russian appeasement, but russia is a very big country. it's seven time zones. you can't just exclude that country from the conversation. and putin gets worse when you threaten him or he thinks bully him or confront him. he actually does not get better. so the way to go with it is to continue conversations on very many different levels.

and continue to balance russia's sticks towards russia. for example, that is, try to deal with ukrainian crisis in a different way saying fine we understand that it cannot be -- crimea, for example. russia's annexation, it will remain in slaush hands for now. but now we can have other sticks. because i think putin is the person who doesn't react well to threats. but may possibly react well to a conversation. or better to a conversation. i don't know well or not. >> it's a long tradition of this. this is not something new. we had a policy during the era of that great left winger richard nixon called detaunt in which we were making -- on one hand we were in tnthe depths of the cold war but having negotiations with the soviet

union. it's not beautiful low pressure it's not purely moral. it's ugly and often tragic. but it's -- its complexity has to be grasped. and donald trump as far as i can see has no grasp of this whatsoever. what he has are remarks. what he has are emotions. what he has are -- >> sound bite. >> so you're on the same page with david. >> absolutely. it's difficult not to be if you're a downtown new yorker for sure. but also david just pointed out one of the worse crisis of the relationship between the united states and the soviet union during jimmy carter when he withdrew from the relationship. then the americans had had to walk it back. as horrible as that war was on the soviet part, americans have to walk it back. >> good point. professor, thank you. >> thank you. okay.

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we want to thank david remnick for being here the past hour. come on back. this was fun. >> any time. >> and we should tell you the new yorker festival. tech fest tomorrow and the new yorker festival through the

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countdown to jobs friday. we're one day away from the report that could weigh on the fed's decision to hike rates. glenn hutchins is here. we're going to get his take on the economy. trouble in the twitter verse. shares of the social media company slumping after reports that the biggest rumored buyers will not make a bid. plus a big call in the media sector. one of the top analysts on the street has a bold prediction. we'll tell you what it is as the final hour of "squawk box" begins right now. ♪ lye from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i'm joe kernen along with andrew

ross sorkin and melissa lee. and becky is off says today. she's off. she is -- nothing's happened yet. for those that weren't watching earlier. but something's going to happen. you know it always does. >> it does. but maybe not today. >> no, no. maybe not today. but it's like -- when is it? eight days is it. last time it was early. so better to not be here for everybody. >> yes. >> can you imagine? it would be like six nervous -- >> you probably would be the most nervous. >> i would be nervous. i would be nervous. with us for the next half hour -- you're not a doctor. you can't help. but you're here. glenn hutchins is here. we'll hear from him in the next hour. you would be nervous, wouldn't you? >> i would be. send our best to becky if she's watching. >> and as soon as we do know, probably be in the next week, i would think. but we don't know. >> you never know. >> it's out of our hands.

we are less than 90 minutes from the opening bell on wall street. the futures right now have been red most of the morning. dow down 24 points. s&p down four. nasdaq indicated down six. europe is part of the problem. red arrows all morning long over there. but not really big red arrows. just sort of a little bit lower through most of the continent. among top stories today, hurricane matthew expected to regain strength as it barrels toward florida. officials have already ordered evacuations in the state in the carolinas. the storm is now responsible for at least 26 deaths. and the pool of potential twitter bidders is apparently dwindling fast. shares of the social media giant under pressure after rico reported that google and disney will not move ahead with a bid for twitter. apple also unlikely to pursue the company. and we will get initial jobless claims in about 30

minutes. all right. a few stocks on the move this morning. releasing financial guidance ahead of its investor meeting day at walmart. reiterating 2017 earnings guidance and saying it expects profit to be flat the following year. not great. like growth. it's also playing slow new store growth. and also doubling its stake in chinese e-commerce company jd.com. it's doubling the stake to 10.8%. why do i have to say it? it's right there. you can mute me and know what's happening. but don't. and at&t with amazon will collaborate on cloud and networking capable abilitiecapa. and more trouble for mylan. mylan overcharged medicaid by millions of dollars over five years for the epipen. according to a letter from the

centers for medicare and medicaid services mylan incorrectly classified the device as a generic instead of a name brand product. that allowed for mylan to pay a smaller rebate. >> meantime let's get to our special guest on the markets and trade and politics. you have an op-ed i read in "the washington post" that was fascinating. we're joined now by north island chairman glenn hutchins. good morning to you. >> good morning. >> we can talk jobs. because the jobs picture is so i would argue related to trade that even though that seems to be a disconnect for the american public, you wrote a piece recently in "the washington post" -- and this is where i want to go with this just to start. were you saying the deal on offer tost working in middle classes from globalization is in tatters. and you try to make the case for why trade matters. but it seems that both sides of the aisle have effectively given up. >> well, i think the main point of that article was that this

has been one of the most information rich elections in our lifetime. and we have a very big complicated dynamic country rapidly changing. every four years we learn something from our elections. every generation we learn something really important. and what we've learned now is that the deal on offer from globalization which is -- which has many benefits but one of which is a very small reduction in the price of goods we get across many, many people in our society which has a huge welfare benefit. while larger does not throw off in jobs. and small but important parts of our country. smaller but important parts of our country. so we have to -- it is very clear that things like trade, tax reform, regulatory reform, and a series of pro-business growth policies are important to pursue. but i don't think we have the political consensus on either

left or right. these are trump and sanders voters. we don't have the -- >> interesting you said trump and sanders voters. not trump and clinton voters. explain that. >> remember in the democratic party, the mainstream candidate won. and in the republican party, the person on the fringe won. so trp's voters are -- and sanders voters are people who were expressing significant concerns about globalization. >> come out against tpp. >> she said in the debate we have to trade with the other 95% of the population. i am not part of the clinton campaign. i don't want to be put in a position of advocated said policies. but my personal -- so i'm telling you my point of view. i'm not -- unlike your prior guess malpass who works in the campaign, i'm not part of that. >> now that we got that straight. >> so i have a personal set of

views which i'm articulating. >> but you're a big supporter. >> i am a supporter. >> you're not part of the campaign but are a supporter. okay. >> i believe that -- i think she's prepared to be president. i believe like barack obama said, she's one of the best prepared people. i think she'd be a terrific president. yes, i support her. >> in terms of -- going back to the trade policy -- >> and by the way, i think she'd be better for business than trump would be. >> because? >> so if you look for markets especially and for business because the main thing that markets don't like is uncertainty. if you look at the data around the performance of markets around elections, there's nothing that suggests one party is better than the other. what the markets don't like is uncertainty. right now we're in a very uncertain time with the u.s. expansions, the asset prices are fully valued and some are over extended and we're on the cusp

of fed tightening. this is an uncertain moment. >> are you frustrated we have not seen a specific tax policy from hillary clinton on corporate taxes? >> i haven't studied that directly, but i didn't think that the -- my personal view is that we should have corporate tax reform consistent with an opportunity to bring the cash back. i think those two things should come together. >> go ahead. >> does it really make a difference? i'm just putting this out there. i believe it does. hillary versus donald if you don't have congress, if you don't have congress aren't the markets exactly where we are right now? they're still the same uncertainties we have now and there's the uncertainty of gridlock in congress which won't accomplish either of the two agendas. >> i think there's far more uncertainty if you have a trump

because you would have a big concern on the part of the markets. america stands towards the world for holders of emerging market debt. he's very hawkish on the fed which means that you would expect to see tightening. and that's bad for markets. and he's proposing a set of policies that are -- have a financing of the government. so it's a lot like america's brexit. and the result of that would be the business community that would deter investment in hiring. just the way it's happened in the uk. in my personal view. >> it would take our market to new highs like it did with brexit? >> a lot of that is -- you're looking at equity markets. a lot of that had to do with the pound. >>nd y. >> and that's very a very short-term thing. >> the -- obviously the abyss we were looking into with brexit,

we turned the lights on and it was not an abyss so far. we'll see how it plays out. but the counterfactual didn't happen yet since the market is 10% higher than pre-brexit. so you may be right, but we don't know yet. >> the economy is stalled and -- >> some of the economic numbers were pretty good over there too but resulting from the lower pound. but they're back in -- they're growing after not growing. so we'll see how it finally goes. >> how good or terrible do you think the u.s. economy is? we're talking about jobs and the numbers we're going to get. the reason i ask is part of this whole election is this idea that this economy is terrible. you tell people it's good, they get upset with you. >> right. >> i was in des moines last week, headed to columbus tomorrow for the squawk the vote sessions. but the reason i mention that is iowa is a booming, great -- but if you talk to people there -- and their life is good but they'll tell you the rest of the country is going to hell in a hand basket. there seems to be a strange

disconnect to me at least. >> we have to understand that there's good and bad sides to our economic situation. you mentioned jobs earlier. best example is jobs. we're at a level of unemployment that economists would tell you is approaching full employment. that's supposed to be good. we have a very low employment to population ratio. which means that a lot of people are out of the workforce. and the jobs that have replaced the ones that were lost are lower quality, lower wage, lower certainty jobs. so that's -- you have to see both sides of that equation. and i think you look at that across different dimensions. coming up, glenn will be making a big change at harvard university with a multimillion dollar donation to the school's african-american studies program. harvard professor bill wilson will stop to talk to us. we'll get his take on the racial wage gap in the united states after this break.

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smart provisions to safeguard our families. learn more about the safeguards at yeson64.org. welcome back to "squawk box." announcing today the next step of a $25 million donation to harvard university. a $10 million to the hutchinson

center to african-american studies. julius wilson joins us now. professor, thanks for being here. tell us about this exciting new project to raise class and cumulative adversity. what do you aim to study? >> well, it's a study of what we call race class and cumulative adversity as you said. by cumulative adversity, i mean people who have been exposed to multiple andeinforcing racial hardships, economic hardships. and what we will help to do is to analyze these problems at once. simultaneously. instead of treating joblessness, poverty, crime, economic hardships. for example, housing,

homelessness. in isolation we see how they are interrelated and build upon one another. >> how much of the study is going to be historical and how much is going to be a study of how people are living out their lives currently? >> we will have graduate students collecting historical records to put our findings in context. but the research really will be empirical in the sense of longitudinal studies highlights first of all longitudinal surveys. second of all, intensive and repeated interviews with subjects. field experience -- experiments. and the use of big data. administrative records, taking advantage of the incredible kompbational power that exists. >> it's a very generous gift to

my alma mater. >> thank you. >> we're excited about it. tell me what has -- there's some fascinating stats out there. policy studies somehow it would take in terms of the wealth gap black americans 228 years to have as much wealth as white americans. i would imagine this goes towards this -- bolsters the reason why we need to study this. >> so these are questions you should address to bill, but let me tell you about the center a bit. what we've done together with bill's colleague henry lewis skip gates jr., we have built the world's leading center for african-american research. we did a global search for a name. decided that hutchins was the right one so we called it the hutchins center. and we brought together the greatest scholars in the world under one roof to work on things. today in cambridge we have -- we're giving -- we have an honor ceremony. we give the dubois medal to those who made important contributions in the

african-american community. the groups out here watching might be interested one of our recipients is -- and we also have members of the texas western miners 1966 national championship basketball team coming today. pat riley who was on the losing team is coming to give them the award. >> very practical question for you. you were on a number of boards and private equity for a long time. how do we fix this problem? meaning -- people talk about hiring and how you could approach this. we have a lot of people who hire a lot of people hopefully watching the show. what would you do? >> let me just say that you can't make wise decisions if you don't have good information. policy makers who want to make

wise decisions. not only policy makers but nonpolicy makers as well. people in the private sector, for example. if they have the information they can decide how to attack the problem. but we are doing something else. we are hoping to craft some policy recommendations based on our findings. and we will get some assistance from think tanks that engage in policy analysis. they will interact with us reflecting on our findings saying how we might address certain problems. and we hope we can use that information plus our findings to come up with some pragmatic solutions to address policy. >> i was just wondering, can you fix the schools -- urban schools without fixing the urban area? or can you fix the urban area without fixing the schools? it just seems like it's interconnected. it's a chicken egg thing. i don't know.

>> i agree it's interconnected. and you should not isolate the two. and i think we should approach both problems in the inner city and problems in the schools simultaneously. >> does charter make sense to you? does it not make sense? >> charter schools? >> yeah. >> let me just say this. there are some very, very good charter schools in this country. in new york city the charter schools are out-performing traditional public schools. and these charter schools are overwhelmingly disadvantaged. i mean are populated with overwhelmingly disadvantaged students. and they're doing extremely well. the same is true in boston. so i think the blanket criticism of charter schools should take into consideration some of those schools that are performing quite well and asking fundamental questions why are these schools doing so well. and what we take from these

schools -- >> can i spend more of your money? how much you got? i don't think 25 is a lot. how about a charter? glenn hutchins charter school. how about a couple of those? >> sounds good. >> let me tell you how i think about this, joe. which is that we have the opportunity to do really non-ideological policy. bill has been a leader in this for decades. he's instrumentalizing a group of younger scholars. both people who are tenured professors right now, the next generation of them, and graduate students. to create a whole ability at the center to gather the information and do the policies to get at this complex problem. >> you didn't really answer it. do you have your checkbook on you today? >> i only do electronic payments. >> i'm not surprised. >> surprised? >> i wasn't surprised. because there's so much dissent

about whether charter schools take away from -- there's not enough of them. we need to fix the publicchool system first. because you can't help everyone with charter schools. >> listen. until we come up with comprehensive reforms, public school reforms, i am not going to rule out good charter schools. it's not fair to the kids. >> okay. >> professor wilson, thank you. i think you're leaving to catch a plane. >> got a few more minutes. >> all right. stick around. coming up when we return, we're going to talk about theranos throwing in the towel. the embattled start-up is retreating from its blood test. we'll get the details after a short break. back in a moment. tomorrow on "squawk box," full coverage of the most important number of the month. the september employment report. our panel of experts will be standing by with instant reaction. tomorrow starting at 6:00 a.m. eastern. "squawk box" will be right back. guess what guys, i switched to sprint. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50%

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welcome back to "squawk box." theranos announcing it will be closing labs and centers laying off 340 workers. elizabeth holmes says the company will focus instead on new technology. a so-called mini lab to test blood on site. the move comes a year after holmes was banned from operating blood testing labs. and time for a final word from our special guest glenn hutchins. if you were on the board of

theranos, what would you do? >> i would have done a lot of due diligence before i joined the board. i mean, you guys talked about it in the opening of your show today. you suggested that there might be no there there. and i think the directors suggest that the directors of this company should have spent some time figuring that out. >> one question for you. you're on the board of at&t. you saw the yahoo news. a lot of things going on today and just generally around security and also what the government may be asking telecom and technology companies to do or not to do. what to the extent we have 30 seconds. what's the right answer here? >> well, look, in 30 seconds i would say let's not lose sight of the fact that the mobile internet is the biggest investment in commercial opportunity of our lifetimes. and what at&t is doing around that is incredibly exciting. i've seen some early demonstrations of 5g technology which is going to be 500 times

the speed of 4g. >> does it up end cable? >> it'll be as fast as your cable into your house today. you'll be able to do that wirelessly. there'll still be an important role for wired broad band because that will be bigger too. and the applications that will be invented to go with that are going to be exciting. tremendous. >> and he's on at&t's board. >> i know. >> thank you, glenn. coming up, minutes away from initial jobless claims. and take a look at crude. "squawk box" will be right back. voiceover: sitting at a desk all day can cause neck and back pain high blood pressure, it even slows your ability to burn calories and lose weight. man #1 on camera: fortunately, there's a solution inmovement, the affordable, standing desk. woman #1 on camera: an inmovement standing desk lets you move effortlessly

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welcome back to "squawk box." rick santelli here live on the cme floor. breaking news. a drop of 5,000 initial claims from an unrevised 254,000 to whisker below 250,000 at 249,000. continuing claims moved a bit lower from 2.064 million to 2.058 million. but maybe the big story continues to be trading a 1.26 handle on the pound versus the dollar.

jumping over 96. solid area. dollar denominated commodities, of course, aren't going to do well with the stronger dollar. backing off a bit not to say variety of fundamentals but of course people are paying attention to grains and gold. gold in particular. and of course what's going on with the equity markets. you know, i find it fascinating that normalization really seems to be coming. we're probably going to get one tightening after the election. but along with it, the notion maybe janet's going to buy stocks. so maybe she actually has found a way to thread the needle on holding. financial asset appreciation due to the fed and normalization. her rate cake and eat it too. back to you. >> thank you, rick. right now we are joined by the number one ranked analyst on this year's list.

todd younger. good morning. >> good morning. >> congratulations on hitting the list. not just that. you've hit it before. but getting to the top of the list. >> it's a huge honor for our team. something we're grateful and humble for. it's great to give us the opportunity to get out here and chat a bit. >> tell us what's at the top of your list. >> well, so i cover big media. right? so the core companies in my universe are, you know, companies that make most of their money in the business of television, specific television networks. the sad news is actually what's at the top of my list is actually more opportunity to the downside, i'm afraid, than the upside. my view is the future is actually fairly bleak for most of my companies.

the good news is television companies have made extraordinary returns for decades now. 30%, 40% return on capital. those are types of financial returns rarely seen in any business. the bad news is my view is the conditions which made that possible are not there anymore. i also believe the stocks are not positioned there. >> there is one stock at the top of your list. i think it's the only one on the list at all which is nielsen. is that right? >> yes, it is. is in that space is like nielsen. i cover it. it's central to the business of media. and our argument there is really in the state of such profound change in the way that consumers

are watching television and we should call it video with such profound consequences for these businesses that a company like nielsen which is in the business of providing information about what consumers do, we think what nielsen does is more valuable and urgently needed than ever. we think nielsen is not perfect, but they do what they do far better than anybody else and we think that will serve them well. we think, hey, it's a growing company. we think it's going to continue to stably grow. and we think it's going to compound nicely for investors in that it's not all z fully in. >> you have a sell on viacom. if you could game out what's going to happen to viacom. a lot of chatter about cbs potentially buying that. i'm curious why you still have a sell on it. >> yeah. absolutely. i have a sell on -- or underperform rating on a couple of stocks.

viacom and discovery. which is really just an expression of those two companies being the worst victims in my view of the overall sector change. with viacom and the whole cbs situation, you know, our view is that it's really for any company to fix. that are causing viacom's main issues which is the fact that we don't believe anybody including cbs can compel teens and people to put down the ipads -- >> that implies there is no value in the brand. this is what it sounds like you're saying. that it's an asset declining into the ground if you say no company out there can fix its problems. >> yeah, well, there's a difference between no value and less value that's implied in the

stock prices. if were successful in revitalizing viacom's storied portfolio brands. we're talking about things i grew up with. even if they're successful in that, our view is that in the sort of digital consumption environment, that the economic returns for a success in that business are far inferior when a hundred million households paid. we think viacom is going to earn a lot less advertising revenue. even if somebody is able to do the very tough task of keeping their brands relevant. >> real quick because we have to go but there's all this news about twitter or no news about twitter in that others don't want to buy it.

is there any media company out there you think would be a good suitor for twitter and does it make sense to somebody? >> well, i have to stay a little away from the specifics on that, but i will make a general comment which is this. the history of big media companies acquiring what i'll call digital companies is not good. i can't help but keep thinking about the mid-2000s when news corps acquiring myspace. i guess call me a very big skeptic in terms of some media company being able to somehow run twitter better or unlock value there. if you like what twitter does, why not just work with them to do what you need them to do? >> fair enough. todd, appreciate your time and your perspective. congratulations on making the top of the list today. >> thank you so much. thank you for having me on in this busy morning. appreciate it. hedge fund power players

lying out their top stock bets in san francisco. our own kate kelly joins us now with the highlights. hey, kate. >> hey there, melissa. we heard a number of compelling situations at san francisco yesterday evening. perhaps the most rousing, though, was palihapitiya the founder of social capital who started a hedge fund and recently opened up to new investor. providing it could have a market value of $100 billion in ten years. i asked him what three things he liked best about the stock. >> it has an absolutely fantastic product nature. it's the best in class product. it's used by 25% of fortune 500. it's growing by leaps and bounds. and they've leveraged that good will to build now an inherent

acquisition for their next big product. now what they're able to do is vertically integrate and drive revenue. when you look at this trajectory and paint it forward, it's pretty obvious, actually, from our perspective that this isn't going to be anything but a juggernaut. >> this of course was a follow-up to the idea that he shared last may at the new york stone conference which was amazon. there he predicted a $10 trillion company in years. and they're up since the call. carson block was down yesterday. he says it had a cash flow problem, an ego. driven ceo and potential problems with its bank revolver. >> constituter perini, what we see happening is that we think that it's being particularly aggressive with its billing practices and there a"fast" boo

recent amount of revenue that disputes with its customers. a lot of the disputes have to be litigated and the percentage of revenue that consists of these disputes has grown significantly year over year. >> talking to some of the audience members yesterday, i gathered that block may had been the most anticipated speaker at the event. you can see why. his recent calls for example on st. jude and the bank of the ozarks have had immediate impact on those stocks. he's also famous for rooting out accounting issues. for the full interviews, head to cnbc.com/pro where you can see the uncut discussions i had with both of those investors. >> you've got a heavy hitter today in terms of talking about his top investment pick. mick maguire. >> that's right. he's joining us for the "half-time report." his presentation was about buffalo wild wings and why he sees potential there. he's got a couple of other long

activist situations that we'll no doubt touch on. that should be an interesting discussion. >> kate, thank you. kate kelly joining us from san francisco. >> thank you. coming up, your money your vote. congressman sean duffy is here. we'll hear what he wants to hear from candidate trump. next. ♪

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welcome back to "squawk box." let's take a look at futures right now. in just the past 40 minutes or so we did get -- actually past

13 minutes we got initial jobless claims. 249,000 is where it came in. s&p futures look like they're indicated for a lower open. so is dow and the nasdaq. take a look at wti because of course oil the big story with wti hitting $50 for the first time in some time. this sunday night donald trump and hillary clinton will go head to head in their second presidential debate. this time the candidates will be answering questions from the audience. jobs and the economy are the top issue for americans says our next guest. congressman sean duffy. it's great to see you. >> thanks for having me on. >> how are you? >> well. >> before we move on to the next one, let's talk about the one from earlier this week. did it mean anything? >> the vice presidential debate? >> yes. >> i do think it is helpful that you had mr. pence out with great poise talking about issues,

remained calm, was able to give some hits to hillary clinton but really i think stayed on his mark where you had mr. kaine who was i thought seemed a little bit erratic, was punching a little bit too hard. he seemed too rehearsed. didn't do damage to trump. i think people will look to the next debate on sunday night. >> how close are you to the trump campaign at this point? >> do i sit in meetings? no, i don't. >> do you have any idea what the prep is like this time around? >> no idea. i will tell you this. i think if you look at how he prepped for the last debate, he wanted to come out and be real, but he missed opportunities with hillary clinton. i think he's going to learn from those mistakes. i think he's going to be better prepared coming into this debate. you've seen the poll numbers. they're falling. i think it's been about the greater conversation. what's been taking place with miss universe, that's been the problem he's had. if you can get that behind him

and start talking about issues that americans talk about, he'll be fine. >> does he talk about issues in reference to hillary clinton's record and try to tie the shortfalls that we are -- there's a reason we're 70% wrong direction. there's things that you can talk about there. or does he talk about remedies and specifics as to how he would address this? does he continue to hammer hillary clinton for what's happening or does he try to say this is how we're going to fix it? >> i think he has to do both. talk about what kind of leader hillary clinton has been. what she brings to the table. if you look at all that's come from dodd/frank and other obama administration initiatives, if you think the economy is better off for that style of government and regulation, vote for hillary. if you want to actually lighten the load, if you want to reform our tax code and kick start our economy, donald trump is a guy who fundamentally understands that being a business guy from new york who's built a huge enterprise, understands

regulation, understands taxes, understands banking. he sticks to those issues. again, they want someone who's authentic. also someone who's honest with them. when you drive into hillary clinton's e-mails, the server, the pay for play between the clinton foundation and the clinton state department. if you look at what she and obama did with the four men in benghazi who died and did not -- >> you think there's an honesty/trust deficit with donald trump. >> no. i think donald trump has been honest with them. i'm sure you played the clip from bill. bill clinton comes out and for once -- >> if you look at these fact checking reports, i mean, he is -- you know, with respect, a serial liar. >> so i would tell you that middle america looks at the media and they don't think they're as fair and partial as they analyze the candidates. from television to newspapers, they're analyzing and looking at candidates for themselves saying who's telling the truth. bill clinton finally said

obamacare is a disaster. >> we've been watching hillary for 30 years. >> i'm not saying that she's not -- >> but just give he an honest answer. when she's talking, do you ever, ever really believe -- do you believe much when she's talking? >> i think that most of the things she says are accurate. >> i've got to switch gears. i want to ask him a question. >> go ahead. >> i want to switch gears and ask you about wells fargo. you're on the house financial services committee. if we had to pick a bunch of sound bites from that day, probably yours would come up where you accused the company of basically stealing. >> yeah. >> and i'm wondering -- because since then a lot has happened with the story. a lot of counties, states are stepping back and doing business with wells fargo. congress people like yourself have taken in a lot of money from wells fargo. i think you took in $12,500 according to open secrets. do you think that money should be given back? >> open secrets is wrong. >> all right. good. i'm glad we clarified.

>> it was $15,000. >> but here's the deal. you look at wells fargo and i think obviously banking is for people. if you're stealing from your customers which there's no doubt that the board and i believe mr. stumpf knew about. when you have a thousand people getting fired a year and it gets up to the board and they don't take aggressive action. if you had people stealing out of the till a year, that would be stopped. but from customers, they let the system continue because they were making money off of it. i think it's appropriate congress call them out. >> i agree. i think that's your job. but i was just wondering if congress people should give money back? >> i don't think so. >> do you think the federal government should make more responsibility for -- >> if you watch my clip, do you think that wells fargo contributing to my campaign has done anything for me -- >> no. that's not the accusation. i'm just saying it's money -- >> i'm a wells fargo customer.

i was there when they were nor west in minnesota. >> did you have any extra credit cards? >> i'm not sure of any other accounts. >> the accusation is not of being . i'm just wondering if there's a line in the sand where you draw where you say you're accusing this company of basically being a thief and yet you're taking money from them. i'm wondering if it's money you shouldn't take because it's dealing with a company you're publicly condemning. >> i'm publicly condemning the company, i'm fighting back for the customers, i'm one of them. i think that's the appropriate line to draw. we've seen some of my colleagues come out and say, you know, congress should demand that the ceo, mr. stumpf, step down. that's not our role. that's for the board, the shareholders. it's our job to do oversight. one of our issues, and i don't know if this was driven in the hearings, but the cfpb came in at the very end of the game. and they packaged -- they had this whole case packaged for

them. they got a $189 million fine. and the cfpb wants to stand up like great defender of consumers when it was actually "los angeles times," the occ, the self-reporting of wells fargo, that was a rub for us because the copb knew about this years before and did nothing -- >> are there going to be investigations into the regulators? >> there will be. >> should they be held just as accountable as wells fargo? >> no. they weren't the bad actor. >> but your job is to protect the consumer and you're in the corner for the american consumer. >> when you're the cop on the beat and you miss the signs, and then you come out and go, wow, didn't i do a great job as an investigator, listen, you didn't do a great job. you missed everything. don't come to the american people saying how great i am keeping you safe when it was "los angeles times," the l.a. city attorney and the occ, that was our rub with the rub and fine. >> i couldn't find anything more current, this is september. >> okay. >> but as of september for trustworthy, 50% -- >> oh, i know.

>> serial liar? >> i'm saying you can watch back-to-back -- he says things and then -- >> it was 50 to 35 -- trump was more -- >> i know, i know. >> that's how pathetic -- >> i know. i'm not saying that hillary clinton is a bastian of trust. but 50-35. >> but also hillary has been a government figure as a first lady, senator and then at the state department. and those lies have a direct impact on the american people. where, you know, trump has been a private citizen for a majority of his life. and i think that's where the rub has come for a lot i would say. >> it's a longer debate. come on back next time you're in town. >> thank you. appreciate it. >> when we return, we're going to head out west. our good friend jim cramer hanging out in san francisco. going to talk to him about twitter and a lot more just a moment.

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let's get over to cnbc at one market. jim cramer joins us live from san francisco. that's a pretty cool gig, jim. i hope you're seeing the sights and great restaurants and everything else. i'm sure you're getting around.

>> yeah, well, it is two different lifestyles here. it does seem that a lot of people quit work when you guys quit work. and then therefore you'd be able to get a lot done much more. a lot of people seem to stop here at 3:00 p.m. >> exactly. so what do we yesterday it's just more of the same. tomorrow will be important, i guess. but then we got to move onto something else next week, i guess earnings. >> yeah. look, i mean, i think we can all focus on twitter. i think that this deal that broke down part of this new antitrust initiative of not letting companies merge. i think you're seeing it with a bunch of other companies. this was a deal when announced was thought to be a slam dunk. and as it built, the customers didn't like it. i think customers are playing a bigger role these days in takeovers. >> all right. we got to go. jim, i want to hear twit herter we'll wait to the nine to do that. >> okay. no problem.

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i think you've said that. japan's transport ministry will require all new quiet cars that have automatic noise making device by 2017.

citing pedestrians may not know a vehicle approaching noiselessly. noise making gadgets are standard but can be switched off manually. the new regulation will make it impossible to disengage the noise maker which will be louder and more recognizable. i like that one. >> good noise. >> thank you, melissa. >> my pleasure. fun being here. >> see you "power lunch," later in the afternoon. make sure you join us tomorrow. "squawk on the street" starts right now. ♪ good thursday morning. welcome to "squawk on the street." ais i'm carl quintanilla with david faber at -- jim cramer at one market. a lot to get to today. imf meeting, hurricane matthew strengthens overnight, more pain for the pound in the uk. jobless claims 249 and oil hits