good morning. 11:00 a.m. on wall street and "squawk alley" is live. ♪ welcome to "squawk alley" for a thursday. i'm carl quintanilla with jon

fortt. and joining us this morning, rick santelli. joining us from one market is rico's executive editor, kara swisher. good to see you today. >> good to see you. >> especially because shares of twitter are falling hard this morning on heavy volume on your report the stock on pace for its worst day since april. of course if you don't know already, kara is reporting that alphabet, disney and apple will not move ahead with any bid to acquire twitter. david faber reporting there are still other potential bidders looking at twitter. let's back up and try to explain to viewer what is the last couple of weeks, what the last week has truly been about. >> well, a lot of market turmoil, really. there's been a lot of speculation, a lot of conflicting reports and everything else. so we decided to go in and find out what really was happening. and it's not to say these companies didn't look at twitter, and obviously everybody has to look at twitter. it's one of the few platforms left that is of that size and is a huge distribution platform. so i think these companies

considered it, they were in talks with them, you know, preliminary talks before this process -- sort of in the middle of the process, actually, and then decided this wasn't the right way to go. so it's pretty simple. not that complicated. >> strategically misplaced? just too expensive? >> everybody has different reasons, i think. i think for disney it's a big stretch, it's a big -- a huge, enormous expense and all kind of issues. bob iger is in his last few years as ceo. this would define his ceo-ship, i think. it's a big move. they're super interested in technology platforms and distribution platforms and they've been active in that space. so i guess that was the reason. i think with google they've got other things. they had an announcement last week of all kinds of other things and i think their commitment to the cloud is a smart one. they're in all kinds of other arias, and this is somewhat of a

distraction, i would imagine. with apple i think, again, they're doing other things, and i don't think social networks is their focus or somewhere they want to put all that powder behind. it's pretty simple. it's not that complicated. >> how much do you see jack dorsey's ambivalence and the history of instability at the top of twitter playing into that? if you're looking to acquire this, i would imagine you would want it to be across the board friendly, no hint of hostility. and if jack dorsey isn't sure he's ready to sell right now, how does that play? >> mm-hmm. >> i don't think that's as big a deal. i think all kinds of companies -- i think one of the bigger deals is who would run it? i've heard that from a lot of possible buyers is they don't have people to run it, who would run it, obviously, they have some great executives like adam bain and others, but that's a concern, is what happens once you get it, once you catch this thing, what -- how do you run

it, how do you integrate it, who's in charge of it. that's a concern. jack dorsey has another job again at square so, that's another complicating factor. i don't think that is the biggest issue here. >> kara, as far as what you've learned, is this a determined sale process? in other words, are they viewing this as we want a buyer, obviously, assuming one emerges, or is it just kind of still feeling around on the twitter end of things? >> i think there's possibility it would stay independent too. i think it's just a process as they got this interest from sales force, and i call it loudly noncommenting about wanting to buy it. and i think that they had this thing in place and they have to respond to it. once it starts, obviously, everybody has to look at this thing. i don't think that it's not an attractive property. i think it's a problematic property. i think mark said that yesterday. there's a lot of challenges. at the same time, there's very few big properties like this available on the internet. and so at some price this is a very attractive asset to someone

and at the same time they could stay depth, there could be a private equity move here. there's all kinds of things that could happen. >> a lot of viewers obviously have been taken for a wild ride, up 20%, today down almost 20%. and they're curious, kara, how much of the guidance give on the journalists at large was truly insincere, either trying to jack up the price for their competition or try to lower the price by feigning disinterest so they could get a bargain? >> oh, you know, this is -- this is ridiculous what's happening with all these things. i mean, you know, bankers try to make an exciting process go on so they can have a lot of buyers. and obviously everyone's going to look at this. i think what happens is it gets into this ridiculous hype cycle that is not what reality is like. so, you know, i know they'd like to blame me for -- i had one that i brought down the party. i'm, like, it's not a party. this is a company with employees

and everything else. this particular company is not looking. these things can change, by the way. like everything changes all the time. and if another opportunity comes it doesn't mean that at some point google might not think it's attractive or disney at some point might say actuallitis that kind of thing. but in this moment, in this process, that's what's happening. >> that's the best we have. thanks for bringing more clarity to it on top of your reporting. let's get a check on the broader markets. trading down across the board, although definitely off the lows. the s&p 500 down just about a quarter of a percent, dow down a similar percentage. oil, wti crossing above $50 a barrel earlier, a lot of concern about production perhaps as this hurricane bears down. and shares of tesla falling on a downgrade from goldman sachs, goldman downgrading the stock from neutral to buy and lowering the price target. goldman flagging issues over the

solar city takeover and the model 3 delays. when we come back, live in the imf world bank meeting in washington. former federal reserve chairman alan greenspan, we'll get his take on the global economy, rates, the ecb and deutsch. then a state of emergency in florida as it prepares to face the full force of hurricane matthew. we'll take you there live. later on, coupa making its debut at the nasdaq today. a first on cnbc interview with that ceo. announcer: don't let e. coli

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back to the imf world bank meeting in washington. sarah sizen is joined by a special guest. >> i am here in our annual tradition with the former chairman of the federal reserve, alan greenspan. always nice to see you. last time we spoke, it was the day after brexit and you told me you had never seen anything worse in all of your time in public service, and that includes the 1987 stock market crash. are you still feeling as negative about the global outlook? >> it wasn't the global outlook i was concerned about. i'd never seen a system break down that badly and the structural breakdown that brexit

has done if it spills over, as i was fearful it would, into, for example, scotland trying to get another vote or any number of which would become disassociate pd. >> so far the british economy has remained resilient. >> so faritis fine. we have yet to see what the actual implementation that prime minister may is going to say and do with respect to it. it's still -- i must admit, i'm somewhat surprised that it hasn't created a negative effect so far that i can see. but i think it's too soon to make that -- >> is that what the precipitous fall in the british pound is telling us, now down to 1.26? >> i don't know, but obviously to a certain extent it's got to be a factor. but be careful with exchange rates. there are always a lot of forces affecting those. >> you know that much better than i know that. you've been warning about slow growth in the united states,

productivity problems and now you're introducing a new word to your diagnosis, stagflation. >> that's not a new word. >> we don't hear about it that much. it comes out of the 1970s. all the keynesian models have high unemployment and high inflation. or at least partial unemployment. and in the 1970s it did, and everyone scrambled far new explanation, and that's where the term came from. at the moment i t looks as thouh obviously you've got a stagnation throughout the developed world and the developed world is aging rapidly. and the ratio of entitlements as we call them in the united states and social benefits, which is what they call it elsewhere, as a percent of gdp

has been moving up. and the result of that is a crowding out across the board virtually every developed country in gross domestic savings. and that with borrowing from abroad finances all of capital investment and capital investment is the key to output. >> how does that take you to stagflation, this idea of prolonged slow growth with inflation? >> stagnation stays there. we haven't had -- we don't have enough evidence of what actually occurs, but we know that prices are beginning to move up in the united states. we have to be very careful about interpreting that because they're not moving up very much, and the reason is that costs are

moving up, but profit margins have been going down sharply. and so that it is masking the cost increases we're seeing. and once profit margins flatten out, the costs come through and into prices. i have no idea when that's going to happen. but that it's going to happen, a high probability. >> hidden risk of higher inflation than we think. >> i think that once inflation starts -- remember, we've got -- at the end of the day, it's always what i call unit money supply, which determines inflation rate. and that's been true for 100 years, more than 100 years. but not on a day-by-day basis. nonetheless, money supply is now beginning to accelerate. it was going up at a constant 6%

annual rate for quite a while and in the last six to nine months it's up to 8.5% to 9%. now, toez are the early signs of inflation. we haven't seen it. i'm not sayingitis around the corner, but i'm saying it's over the horizon somewhere, and i don't think we have the tools to determine when it takes hold. >> that poses a problem and an issue for the central bank, janet yellin. i know you don't like the go into monetary policy, but on the other side, the slow growth, do you think the current election uncertain is weighing on growth in this country? >> i think the issue more generally, it's fiscal policy that's involved. what we have to do and nobody wants to touch is rise if entitlements in the united states. and i would presume similar pretty much throughout the

developed world. and unless and until we come to grips with, that we're going to get a continuous downward pressure -- >> in productivity. >> well, first capital investment and then in productivity. productivity until two-thirds of all of developed countries and the developing countries, two-thirds of those countries have a five-year productivity increase of 1% or less. the u.s. had a long-term productivity increase of 2.2%. it's now the last five years 0.4%. this is an unprecedented -- >> but nobody's going there. you said it yourself. nobody's talking about entit entitlements. we're talk infrastructure spending. a lot of your problems that you diagnosed in europe are not being addressed. so what is going to be the upshot? what is the call to action?

>> political debates are supposed to be discussing. the word entitlements is not discussed by anybody. why? because in the united states the rate of increase in entitlements has been 9% a year since 1965 equally between democrats and republicans. it into me entitlements in this country was the third rail of politics. you were running for office, you mention it, you lose. the word entitlements has not appeared in any of the transcripts -- >> no, in the debates. instead we're hearing that janet yellin from donald trump is being political, she was more political than hillary clinton, he said, and keeping interest rates low to help president obama. >> i've been through that routine for a long time

periodically. you have to grin and bear it, i guess. the only thing you can do. >> it must be tricky timing. she is on the brink and hinting at an interest rate increase going into an election. >> yes. >> does that become a factor in the discussions? >> i think -- well, it could be a factor, but it's not involved in the decisionmaking. in mir experience, 18 1/2 years and so at the fed, two years with the council of economic advisers, people are aware that there's an election out there. they would prefer not to do something during election, but if it is called for, it is done. and so the real question essentially is will the federal reserve hold back when it should be moving, i would say. >> the ceo of ubs just told us

that negative interest rate policies in europe and in switzerland where he's feeling are creating all sorts of unintended consequences in the banking system, in pension funds. he talked about a global stock market bubble. do you see these risks as rying from this monetary policy? negative rates? >> negative rates in general? it's not good. well, first of all, the whole financial intermediary system is based upon interest rates we're seeing. and a negative interest rate is what you pay to get claims on, for example, swiss liabilities. >> backfires. >> that means your interest rate on intermediation, which is all financed in general, an a very important part of a capitalist system as it develops. so if you have negative interest

rates and they stay too long, a number of the financial intermediaries drop out. they're on the edge. >> yeah. it does raise questions, though, about -- >> money market funds. what do you do? >> right. there's big problems. so if we go into another down nurn this country with zero -- interest rates at almost zero and the fed having done its q/e, what's next, buying stocks? they don't seem to be in the mood for negative rates. >> you're asking me what monetary policy. >> i know. you cannot go there. >> well, it's not i can't go there, but not everything is related to monetary policy pip think monetary policy is doing as much as it can, and to expect it to come in in the event that there's a downturn, and there may be. it would be consistent with either stagflation or just stagnation.

that could happen. so what the policy, is it's got to be fiscal. the root of the problem is entitlements. >> joining the course of many policymakers saying that call for fiscal action. chairman greenspan, always a pleasure. alan greenspan, that is the former chairman of the federal reserve, carl, talking everything from negative interest rates to rising inflation, productivity problems, and using the word stagflation. back to you. >> sarah eisen in washington. thanks for bringing that to us. when we come back, forecasters expecting historic winds, flooding, and rainfall. some say matthew could be the strongest storm to hit the continental u.s. since katrina. a live report from daytona beach in a moment. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods?

the value of capital is to create, not just wealth, but things that matter. morgan stanley

a state of emergency in florida as it prepares to face the full force of hurricane matthew, that storm expected to make landfall in less than 12 hours. morgan brennan is in daytona

beach with a live report. morgan? >> matthew upgraded to a category 4 storm. we've seen the hurricane warning extend into south carolina as well. more than 1.5 million people have been urged to evacuate in the state, more than 2 million throughout the region, the most since superstorm sandy. rick scott urging residents to take this very, very seriously. >> if you're watching and living in an evacuation zone, you need to leave now. so if you're in an evacuation zone, get out. this is not something you should take a chance with. time is running out. leave. there's no excuses. the roads are open. you should get out. evacuate, evacuate, evacuate. >> reporter: so we're seeing runs on gas stations and stores including this home depot since yesterday. another area that's poised to take a big hit is the $89

billion tourism industry in florida. that is the state's largest. as we head into columbus day weekend, we have theme parks like orlando seaworld suspending operations as is daytona international speedway, which just finished a $400 million renovation just a short way down the road from here. the ports from miami to canaveral have closed down with cruise ships not to mention container ships being rerouted. some 2,700 flights have been canceled according to flight aware. here in daytona, we're seeing many hotels closed to the public and governor scott in florida saying a short while ago that air b&b is looking to make more rooms available, not to mention an increase in shelters for all the folks that are essentially going to be displaced throughout the area. guys? >> morgan, we'll come back to you. turning into a big story for the east-southea east-southeast. thank you. when we come back, shares of coupa soaring in its nasdaq debut. an interview with the ceo is next. later, facebook's oculus

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good morning once again, everybody. i'm sue herera. here is your cnbc news update that the hour. hurricane matthew bearing down on florida after striking the bahamas. it's strengthened to a category 4 storm. hurricane watches and warnings have been issued along the state's entire east coast. almost 2 million people from

florida to south carolina are being encouraged to head inland. a bomb placed on a motorcycle exploded near a police station in istanbul wounding at least five people. several parked cars were damaged along with the nearby buildings. police are searching for one person who was spotted leaving the area on a motorbike. more than 1,250 migrants and refugees arriving on the tiny island of sardinha. they were rescued monday and tuesday. the robot pepper began its first formal job outside japan at taiwan's first commercial bank. pepper was handed a formal i.d. card by the bank's ceo before interacting with employees and some very cute little customers. you're up to date. that's the news update the hour. back downtown carl to you. >> sue herera, thanks so much. europe is closing across the continent and in the uk, a mixed picture.

seema mody. >> hi, carl. stocks falling for a second straight day, as you point out coming back a bit at the end of trade after snapping a six-session winning streak on the economic front. factory orders in august jumping 1% from the july levels helped mostly by stronger domestic demand. also in focus is the ecb meeting minutes for september playing a very important role in squashing those rumors that the central bank is looking to taper its bond-buying program. the governing council confirming their commitment to the monthly asset purchase of 80 billion euros in light of those ecb minutes, looking at european bond yields initially spiking on chatter they were tapering their program, but as you can see, coming off those levels in today's trade. as we continue to keep an eye on deutsche bank, the ceo of ubs is calling the german lender's troubles an idiosyncratic situation. here's what he said to "squawk on the street" about the

european banking sector. >> in general, it's stronger than before. i would argue the same kind of story seven or eight years ago would have triggered much more volatility and uncertainty in the markets than we are seeing today. >> easyjet weighing on the airline sector, the british discount carrier issuing a profit warning saying it has been hurt by terror attacks, impacting bookings, and the brexit vote sparking a slide in the pound. remember, jet fuel is priced in dollars so the falling pound has made it more expensive for easyjet to operate its aircraft. now, while the depreciating pound may be hurting airlines, it is helping deal flow. according to a consulting firm, the uk has become the second most popular country in the world for inbound m&a overtaking switzerland. something to watch. jon, back to you. >> thank you, seema. shares of twitter sinking today on kara swisher's report that google, disney, not even am

interested in buying the company at least for now. but the first head of growth at facebook says twitter's problems go deeper. kate kelly is live at cnbc's one market with more. kate? >> good morning, i had an interesting talk yesterday at the san francisco conference with social capital's founder. he dismissed the idea of a twitter purchase as insane and not making any sense. he noted it would involve spending a huge hunk of sale force's market cap to acquire something worth a small fraction of that that is also not growing well. then he ran through some of the ways which twitter, in his view, is a broken business model. some of his ideas for what they should do better, one, have a better growth framework, two, better technology implementation, and three, look at how much money they're spending on infrastructure all for a product that he calls subscale in many respects. he thinks in fact that m&a is probably the wrong approach overall. >> i think it's probably best to be taken private. i think that a class of investor

may be quasiactivist but if you marry some activist shoulders with people with deep product technology and insights i think off chance of rebuilding that company in a really interesting way. >> there was a contrast with twitter. chiefly at facebook, a focus on looking unemotionally at mistakes and instead of framing them as right and wrong, fraping them as right and learning. for the full interview, head to cnbc.com\pro. >> interesting spins growth is a bit of a religion at facebook, their opening salvo trying to acquire companies like instagram and whatsapp, we can help you grow. i wonder to what extent do you get the sense that he expects potential and to what degree is

he dispassionate about its prospects as a product. >> and he's not one to mince words. i think if he thought the twitter business model were dead in the water he would have said so. in this case, it sounds to me like boiling it down. he thinks this's a lot of potential but needs to be rebuilt. he thinks they're spending too much money, obviously not growing as fast. he thinks ty need to be privatized, removing the pressure on a quarterly basis. as you know in general he thinks a lot of us suffer from short termism as we follow the markets, certainly hedge funds do and probably some companies too. my sense reading between the lines is he thinks that would be the right solution for them to take some of that pressure away and then rebuild the company in a way that's more scaleable, that perhaps has a stronger culture, and again as he said with better technology. these are some pretty scathing critiques, but he did stop short of saying that the whole thing is no longer a going concern or it's sort of beyond salvation. >> well, i guess that's a silver

lining. thank you, kate kelly. and speaking of growth moving on, billion-dollar cloud software company coupa opening for trade today at the nasdaq and doing quite well, up better than 100%. joining us now in a first on cnbc interview is the ceo of coupa, rob bernstein. rob, great to see you. congratulations. >> thank you. >> so your valuation now well higher than the valuation where you last raised money. some people were concerned about that. give than backdrop, given your sense of the discipline and mood in silicon valley among companies that are at your stage perhaps just now ipo'ing or along that path, is there a sense there's a storm that's passed valuation-wise or are people still worried? >> i'm not sure what the sentiment is in silicon valley at the moment being in new york, but i can tell you the sentiment here is positive. we were pleased with the investors and how much they they

appreciated our story and the business we're building. we're excited to get back to work tomorrow and continue to drive value for our customers. >> when sap bought concur a few years ago, you wrote, "running simple and remaining laser focused on customer success becomes much harder when you're integrating acquired companies and trying to launch initiatives at the same time. i can't help but feel this move clears the field for coupa." big companies like oracle have doubled down on that cloud consolidation strategy. do you feel like that opens up the field for you when they do that? because they think they're getting stronger. >> we don't really think about those competitors. we think about the value we can create for companies around the world. we have amazing trusted bands from nike to barclays, to toyota, they're deploying our solution, optimizing their spending and they're driving profitability. profitability never goes out of style. that's what we're doing for our

customers. we're looking forward to doing that for more and more organizations around the world. that's our focus. >> rob, you know, let's talk a little about the ipo itself. i know there's a little of art as well as science in how these deals get executed. when you see your shares double on day one instantly, does that imply you thought maybe you miscalculated how much demand would be out there and you could have got an better price for the company? >> there are better people than i that try to tie demand to supply, andup sure over time things will settle to where they need to be. again, value and valuation is one story. the value that we care about is the value we're driving for customers. we managed more than hundreds of billions of dollars for our customers, saved them over $8 billion on the coupa platform. that's real value. that's what we care about. i say that on behalf of myself and all my coupa colleagues around the world. >> rob, we asked new tanix and others about the importance for investors about profitability

given the successful ipos and lack of profitability. is it a clear green light to go ahead and continue to burn cash at least in the cloud? >> i think it really depends on the markets you're going after. we're going after a huge total addressable market, managing our growth very carefully. every dollar -- for every investment dollar we've earned we've created more than a dollar of recurring vef knew. that's how we look at this business. we're getting going in terms of the opportunity set and i think every ceo has to make those decisions for himself. >> that dollar you're creating in recurring revenue, recuring a key word there, quite a debut you've had so far, but we won't be short term about it. we'll continue to follow you. ceo of coupa. thank you so much. >> thank you. >> let's check out shares of walmart under pressure after the company reiterated a lackluster forecast. earnings expected to be flat year over year. that's in the coming year as it

expands online operations. the company's investor day is happening right now in arkansas. looks like the street wasn't quite ready for it, down a little more than 3%, although i guess the broader story not that different from what it's been. >> it's also colliding with hurricane matthew, which is maybe not as big a story for investors today but is part of it, the disruption you'll get in retail, at least for the month of october. >> mike, how do you think walmart is doing at managing investor expectations? because they seem not to be overpromising at least. every time people get a bit excited they seem to be tamping things down, perhaps overdelivering after. is this a signal for management on how they're trying to manage the street? >> i think walmart has been sober and careful about saying, look, we have to spend, this is not going to be some kind of a quick reversal to an accelerated growth story. i think that walmart, though, for investors stand in for lots of other things. sometimes when people say, oh, you know what, the mainstream consumer low-wage jobs are more

in demand, that's got to be good for walmart. i think the macro gets infected into walmart's story sometimes. when we come back, big news expected in the world of vr today. from the oculus developer conference. first, rick santelli, what are you watching? >> i'm going to be talking about walls. i'm going to be talking about recess. but not necessarily in the political sense. we have rebecca corbin here from corbin perception. walls, bubbles, resets, it's all part of the outlook for q-3, is it not? >> absolutely. >> and we won't tell them all the details because you have to come back from the break to learn them. esigned here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. they all have insurance crafted personally for them. not just coverage, craftsmanship.

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today on "the halftime report," if there are no bidders for twitter, how far does the stock call? bob peck, an analyst, and jim cramer as well. we'll weigh in. and hedge fund manager and activist/investor the back with his top picks. and the top-ranked apple analyst makes his case on why he thinks that stock is about to soar, all at the top of the hour. carl, see you in about 15. >> sound good, scott. thanks. let's get over to the cme group in chicago, rick santelli, and kw get "the santelli exchange." >> good morning, carl. it's earnings season it's time for corbin projection. what is the third quarter saying to investors or reflecting what investors said to you? >> sure.

you know, it's very interesting what's going on this quarter. investors are feeling pretty good about lowered expectations heading into third quarter. north of 70% are expecting in line to better than consensus results, and the number expecting misses has been cut in half since last quarter. >> it wasn't long ago you were telling me investors were worried about climbing the wall of worry, all the issues and headwinds with stocks. the wall's gone? >> the wall was broken down in december and we are entering a new normal. expectations have been reset. the sell side has reset consensus. i think it will be interesting. investors say management tone, even though they're a little more bull niche terps of investors, management tone is more cautious. and we know that the third quarter, we see the most guidance revisions happening downward. >> okay. even though if you look historically and sequentially, whether profits or earnings, it's not the optimistic chart. so where does the optimism come from? >> i'm really -- i'm not seeing a lot of optimism outside of the

market value weight, which there's a big disconnect between markets, no place to put your money, and economic fundamentals. i will say one of the surprising elements of this survey is that folks are a little bit more bullish on emerging markets, specifically southeast asia, india, and brazil. >> what about china? >> china is a mixed bag. more people think the economy is going to worsen and in the comments, the unaided comments, there are a lot of asia-based investors concerned about a hard landing. >> i was just going to ask you because most of the guests that come on our shows and programs don't seem to be looking at half empty. they seem to be looking at half full. this is the view from within. >> yes, exactly. a lot more dire. and we saw that also last year before the china markets inploelded in august. >> what about the eurozone? >> the eurozone is getting a little more warmth and people are feeling better about that. european-based investors are the only ones that are really expecting better than expectations there. and we're -- you know, the

brexit, although it's a nonissue, only 20% of investors globally say that they're very concerned to concerned about the fallout. >> you know, many of you out there that listen to many of our programs about high valuations for alternative investments, whether it's certain parts of the world in terms of housing, collectibles, cars, you notice the same thing, but you look at it a little different. >> yeah. well, i would say that, again, 90% of investors that we surveyed look at the markets as fairly to overvalued, okay? they've been pulling cash off the market. they're holding. there is an underlying concern, and i think another surprising trend that we saw was the amount of concern around private debt levels, student loans, cars, mortgages, as well as the term used as bubbles. >> so why would -- you're seeing maybe more interest in investments, in other words, outside of stocks, and that's why when you hear housing, cars, investors thinking they're going to be to use some of their proceeds, you were sayingitis because those proceeds may not be ultimately going to the --

>> yeah, i think that at the end of the day investors still believe we're going into a recession in 2017 and 2018. >> real quickly, politics. which candidate in your word of the survey are the least negative for equity market ps. >> 75% of investors believe donald trump is negive to very negative for equity markets. >> considering what he says about the fed and the game, maybe it's status quo. rebecca corbin, thanks so much. carl quintanilla, back to you. >> rick santelli, thanks. when we come back, facebook's oculus hosting its developers conference today. our own julia boorstin is there live. jon fortt has his hands on another hot item, this from sony's playstation. he'll gives us a live demo at post 9. close to session highs here. cdw brought i.t. orchestration to growing businesses across the city, increasing productivity like never before, which is amazing, unless you're a barista.

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oculus gathering developers at its conference. our julia boorstin is there. >> reporter: key insights as the company faces growing competition. oculus touch controllers are expected to be a big focus of this event with pricing and release details to come, and facebook's ceo mark zuckerberg posted this picture saying he's, quote, getting ready to demo something new. building in virtual reality.

asking people to tune in at 10:00 a.m. pacific to hear more about the future of vr and oculus. potential headlines watching for include news of lower cost headset or more accessories like those touch controllers as well as new experiences and content partnerships brought to the headset. now this all comes on the heels of google announcingers daydream doigoggles which will work withw phones and just ahead of sony's launch of the playstation vr next week that will cost $399. though oculus powers the $100 gear vr headset, the crown jewel is its oculus goggles that cost $600 but closer to $2,000 when you factor in the necessary computer. until now oculus' main competition is the ed 800 vive. virtual reality is expected to be a $20 million market, there

are still questions but the amount of consumer demand for the high-end head sets. after the keynote i'll have an exclusive interview. we hope they have some very big news to discuss. carl, back over to you. >> we can't wait for that, julia, julia boorstin. speaking of vr, jon is trying out the new sony playstation vr. what do you think? >> the playstation vr is only $400 more bucks. i have to reload here. if you already have a ps4 and that is just a different value proposition for the gamers who are likely to be the first buyers of these systems. when you look at that, $400 plus if you don't have a playstation 4 already, it's another $300 -- i'm getting killed here, man. when is "squawk alley" over? that's an interesting proposition. a the lot of people i talked to say they expect to see a lot of

the first action centering on that. also, sony knows games better than the likes of oculus right out of the gate but, of course, as julia mentioned it's not just sony versus oculus. you also have htc in the game with the vibe. some are hard to set up and require at least $1,000 computer just to get started. i'm coming back. >> i don't know how you're playing and talking at the same time. that's truly impressive. >> it's like talking and tweeting at the same time, carl, which you are an expert at. >> mike, i have seen, though, some estimates of unit sales for oculus and vive come way down from where they were upon launch. >> that $30 billion figure for the out years, i don't know what the makeup is supposed to be and how fast you have to move to get there. it seems like one of those things you have the curse of being an early adopter perhaps in terms of what you're buying for the value you get. >> all that said, jon, it's certainly one of several rivers google is going to try to bring together, right, with this pixel, for instance.

>> absolutely. you have that whole different class of virtual reality when you're talking about smart phones coming out. in a way it's simpler. lots of people have smart phones with high-resolution screens. there's an experience there, too. but the quality of the controller will be key there as well, so we'll see how that's adopted once google gets that off the ground. >> we'll take turns with that in a few minutes. thanks. meanwhile, florida on hurricane watch today. forecasters expecting matthew to be the strongest storm to hit the continental u.s. since katrina. we'll get the latest. s&p has gone into the green. the dow is not that far away. s. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen.

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florida is in a state of emergency today. the storm is strengthening into a category 4 now, 140-mile-an-hour sustained winds, gusts up to 165 forcing more than 2 million across three states to evacuate. that's the largest mappedtory evacuation since sandy back in 2012. ma matthew has already pummeled the bahamas, expected to make landfall here in the u.s. in less than 12 hours. theme parks like orlando's seaworld, daytona international speedway are suspending

operations. nearly 2,700 flights have already been canceled. that's according to flight aware. we know it's caused several deaths in haiti. we're hoping that is not the case when it makes landfall but a lot is going to depend on people's willingness to abide by the recommendations of the state. that is to evacuate, get more than 100 miles away from the coast. >> i keep hearing the comparisons to andrew and you think how much greater the population is than it was 24, 25 years ago. >> generac is where we normally turn to for better or worse, you never want to see destruction of any kind. it is 3% to the high side today. depot has not reacted the way some might expect. >> no. you have heard some of the economists say, you know what, depending on how this goes, it could cloud fourth quarter gdp numbers because of the extra spending and maybe some of the destruction. >> yeah. there are always folks who disregard the warnings. i think they will ride this one

out. we do hope people do what is safe in this sort of situation. we don't want to see people get hurt, of course. >> we'll keep you -- did he hef a story we'll be covering in the morning. that does it for "squawk alley." back to headquarters and wapner and "the half." all right, carl, thanks so much. welcome to "the halftime report." i'm scott wapner. the twitter takedown, shares are plunging today after reports of google, disney and most likely apple now are unlikely to bid for the company. where does this it leave the social media company, and what should you do it if you own the stock today? with us for the hour joe terranova, stephanie link, jon and pete najarian. we begin with twitter. the first day for shares on that report eliminating several prospective buyers. jim cramer joining us now from one market in san francisco. so, jim, we said the other day when you were w