good morning. your money, your vote. in the final faceoff before the election, donald trump does something no candidate in modern times has ever done before. hands off hardware. tesla's ceo says his new vehicles will be fully autonomous. and the wells fargo fallout continues. the account scandal prompts a criminal investigation in california. details straight ahead. it's thursday october 20, 2016. "worldwide exchange" begins right now. ♪ good morning. welcome to "worldwide exchange"

on cnbc. i'm sara eisen. >> i'm wilfred frost. good morning. it's throwback thursday. throwing it back with some throwback cover songs. this sounds like the original to me. >> it's not. >> obviously. there we go. our top story, the presidential debate, the final faceoff between republican candidate donald trump and democratic candidate hillary clinton. once again pushing the boundaries of political norms. the take away is the headline. trump's refusal to commit to accepting the outcome of this election. >> chris, she should never have been allowed ed ted to run for presidency based on what she did with e-mails and so many things. >> there's a tradition in the country, one of the prides of this country is the peaceful transition of power and no matter how hard-fought a campaign is, at the end of the campaign the loser concedes to the winner. not saying that you're necessarily going to be the loser or winner.

but that the loser concedes to the winner and that the country comes together in part for the good of the country. are you saying you're not prepared now to commit to that principle? >> what i'm saying is i'll tell you at the time. i'll keep you in suspense. that's the top story in every major newspaper, trump will not commit to accepting the vote if he loses the outcome. before the debate yesterday, his daughter and his running mate both said that he would accept the outcome. we'll have much more highlights from last night's debate in a few minutes. we got some tough debating and talking about issues that we care about. the economy. the debt problem. immigration. a lot of other issues that companies would care about. i do want to check quickly on the dollar versus the mexican peso. that's been the barometer tracking the trump factor and the impact. the peso has been strong.

>> we had a bit upstairs. of course, this is the first thing you look at after the third and final presidential debate. you can see the dollar is a bit stronger versus the peso, but it's holding some gains, near a six-week high. it pretty much fluctuated around the debate time but stayed near the higher level as the trump odds have receded. >> the peso made a good bounce back in the last ten days or so clearly a lot of focus on it, fallout from that last night, it's on the front page of all the papers. yes, ivanka trim and mike pence said they will stand by the result, but trump is not one to just stand by, maybe she have done, but i'm not surprised he didn't. i'm surprised at the level of interest and fallout. >> i think on such a major stage, in front of millions of

americans, he will not accept the vote, our democratic process which makes us the envy of the entire world is something to pause and think about. it puts the republicans themselves in a tough position to maintain control of congress. all sorts of fallout. we'll be on top of it. we have guests, john harwood, tracie potts in las vegas and more to digest those comments and others. first market action this morning. yesterday fraction aal gains fo the nasdaq. today we are higher, but again, very, very small gains in the premarket. dow up 30 points, s&p 1, nasdaq 3 points. the ten-year treasury note an important risk gauge of recent times. 1.75 is the yield on that this morning. let's check out the early trade in europe. european equities ahead of the ecb decision, no change expected

in terms of policy but all attention focused on the ecb policy statement and mario draghi's press conference. mixed picture in europe. slight gains in germany and france. ftse 100 in the uk is off fractionally as is italy and spain higher. overnight in asia. you got that big surge in the price of oil yesterday, the u.s. session helping some energy shares. the nikkei was the big outperformer in asia overnight. hong kong closed higher. off the highs from a month or two ago. shanghai closing flat. still digesting that batch of economic data which shows slow, steady growth in china. 6.7% is their gdp. >> it follows last week disappointing export data but decent inflation data. let's look at the broader markets. oil prices are slipping today after a decent gain yesterday. we're pretty much on $51 a

barrel for wti and $52 a barrel for brent. down a percent or so after a couple percent gain yesterday. the dollar not doing too much today. recent strength has abated this week. below 104 again for the dollar/yen. 103.63. no move whatsoever in the euro ahead of the ecb meeting that sara mentioned today. and the pound getting a little bit of reprieve in terms of volatility. it's down, but only 0.1%. 122.68. gold prices are higher today, only fractionally. new york fed president bill dudley said the fed will likely raise rates this year if the economy remains on track. he was speaking last night in new york. dudley saying a quarter point hike is not that big of a deal. as the economy is close to the fed's goals of 2% inflation, and maximum employment.

when asked about the risk of rising rates in december, as banks trim bans shelance sheets diddley said he is not worried about the timing that they smoothed rates from near zero last december. there was speculation last december that they wouldn't move in december because of the funky end of year things for banks and liquidity, clearly he says it is a go. hinting december is strong. as long as the economic data keeps up. >> probability around two-thirds. >> less than 70% but above 60%. not fully priced in. to today's agenda. ecb decision due at 7:45 a.m. eastern time. here in the u.s., weekly jobless claims and philly fed existing home sales. the fed's william dudley will speak this morning. in earnings, we have travelers, union pacific, verizon among the

companies reporting earnings before the bell. after the close, we hear from microsoft and paypal. landon has three things to watch. >> the street is looking for earnings of 71 cents a share. here's what three things to watch. the intelligent cloud segment making up 30% of total revenue in fiscal 2016. investors expect continued success with the cloud, specifically from azur. the office. the productivity business will grow 4%. watch to see whether that growth can offset continued weakness in the pc market. the third thing to watch, the stock reaction, even if microsoft beats t might not be enough to prevent some investors from selling if the cloud business disappoints.

back in april, shares suffering their worst one-day drop. however the stock jumped in july when it beat estimates. just another example, ibm reported better than expected results earlier this week. but investors were disappointed with margin declines in its core business. all about the cloud. back over to you. >> thank you very much. the california attorney general's office has launched a criminal investigation into wells fargo over the fraudulent account scandal. the office has authorized a see shire warrant against the bank that seeks customer records and other documents saying there's probable cause to believe the bank committed felonies this would be a significant step further if they were condemned to have done criminal wrongdoing. the stock down 0.6% in the premarket. tesla making that announcement that elon muss hack been teasing on twitter. the company says all of the cars in its factory, including the upcoming model 3, will have the

hardware needed for full self-driving capability at a safety level substantially greater than that of a human driver. musk said it will take time to complete validation of the soft wear and get regulatory approval but the foundation is there. phil lebeau will join us in a few moments with more on this. tesla shares continue to be under pressure. they've been losers. all sorts of questions about the solarcity merger, safety questions around tesla's semiautonomous driving. it will be good to talk to phil. more stocks to watch today. american express's third quarter profit fell 10% but beat forecasts on strong revenue. the company is raising its full-year outlook and plans an extensive ad campaign during the fourth quarter which includes the holiday shopping season. shares up 5%. ebay's third quarter results beat forecasts as sales rose. shares are lower today, however, as the fourth quarter outlook is below analysts estimates.

shares down 7% in the premarket. mattel's third quarter earnings topped forecasts on surging sales of barbie and american girl dolls. in january they announced three new body types and seven new skin tones for barbie. shares are up 6%. >> look at that chart. hopeful for a comeback. now to politics, hillary clinton and donald trump squaring off last night in the final presidential debate. here is tracie potts with the highlights. >> reporter: trump who has repeatedly called this election rigged declined twice to accept the results if he loses. >> i will tell you at the time. i'll keep you in suspense. >> that's horrifying. >> you are serious? you think that if someone is committing fraud, they should accept results? >> reporter: his team hinting this could be a long, drawn out fight. >> remember al gore in 2000? >> if the vote is fair, i'm confident we'll accept. >> reporter: it started as the

most substantive debate yet on issues like guns, and abortion, overturning roe versus wade. >> that will happen automatically in my opinion, i'm putting pro life justices on the court. >> i do not think the united states government should be stepping in. >> reporter: there were moments of confusion. >> russia, china or anybody else. >> i'm not quoting -- >> reporter: and contention. on russia's president. >> well, that's because he'd rather have a puppet. >> no puppet. >> reporter: besides debt, the economy, immigration, they hit sensitive subjects like leaked e-mails. >> the russian government has engaged in espionage against americans. >> reporter: and sexual assault allegations. >> i didn't do anything. i think they want either fame or her campaign did it. >> reporter: trump claimed the latest defensive against isis is political. >> the only reason they did it is because she's running for the office of president. they want to look tough. >> reporter: clinton brought up trump's unreleased tax returns. >> we have undocumented

immigrants in america who are pieing more federal income tax than a billionaire. >> reporter: final arguments with three weeks left to win voters. tracie potts, nbc news, las vegas. heated once again. are we going miss these debates? >> i don't know if we'll miss them. i think a lot of americans are sick of the back and forth. >> talking over each other. >> the ugly nature of this campaign. the insults. it was refreshing to get some policy talk, on economic issues and debt. >> i wonder whether people will be disappointed with their candidate's performance or not. trump started well, on some issues he had ground, but he always goes for the bait. he doesn't come off that well. >> i've been reading some of the takeaways from the major papers. "wall street journal" saying that neither of them did anything to drastically alter in

the journal's approximation, the polls. neither of them did anything to reach out to bigger bases. that's potentially what was behind trump's big statement that he'll leave america in suspense about whether he will i ultimately accept the result. donald trump dominating the conversation on twitter during and after last night's debate. leading the list, trump and clinton fighting over the treatment of women. followed by trump's refusal to say if he will accept election results. >> and then third, the conversation about russia and nuclear weapons. >> google searches spiking after the debate after donald trump used one of his favorite go-to words. >> president obama has moved millions of people out. nobody knows about it. nobody talks about it. but under obama, millions of people have been moved out of

this country. they've been deported. she doesn't want to say that. that's what's happened. that's what happened bigley. >> there's some confusion whether trump is saying bigley or big league. i think it's big league. bigly is now the top trending search on all of google. he is using this in every single debate. >> it's a word, though. >> is it? i think he's saying big league. >> i never thought bigly was a word, i thought it was in a big way. apparently it is a word. maybe he has gotten one over all of us. >> the other interesting thing here, white we're talking about social media, is that facebook live streamed this. donald trump streamed this on his own facebook live page. got more than 100,000 viewers. people saying that's a preview

of what is to come if he doesn't win the election. that he might get into some trump tv. he may be in talks with bankers about that. >> which is a fascinating side story. particularly for our type of business channel. i can't believe it's the right time to launch a flu ch new cha. >> he's created quite an audience. the ecb meeting today, expected to hold the line on monetary policy we'll get a preview of what mario draghi has in find. which potential words he could say to move the markets. simon derrick joins us. you're watching "worldwide exchange." if you're going to make a statement... make sure it's an intelligent one. ♪ the highly advanced audi a4, with available virtual cockpit.

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welcome back to "worldwide exchange." the euro holding to a three-month low versus the dollar today ahead of the european central bank's rate decision at 7:45 a.m. eastern time. and mario draghi's news conference at 8:30 a.m. eastern time. ecb widely expected to keep rates unchanged but set the course for more easing in december. joining us is simon derrick. thank you for joining us. what's the key thing to look out for today? not expecting a change in rates. could we see a big move in the euro based on the press conference? >> you can always see a big move. if you look over the course of the last three years, biggest one-day moves of the euro come

on the back of disappointment from the ecb. never say never. that said, the expectation today is that we'll get very, very little. if we go back to the last press conference, mario draghi spent his entire time speaking as slowly as possible to pass on as little information as possible. i think that's a strategy today as well. he has nothing to tell that is new. there will be questions. one of the key questions is whether they've been talking about tapering of bond purchases. questions about that floating around. that's a big issue. >> simon what is his biggest obstacle now to doing potential more easing? is it a political one or the lack of tools left in the ecb toolbox? >> if you break it down different ways, the first thing you can say is negative interest rates, the jury is still out there. i certainly think to go further,

negative territory causes significant political problems. you have also more political problems if you go down the route to expending out qe or easing the process, what they can buy and can't buy. the good news from that perspective is because bond yields have risen over the course of the last month. it's made the job easier at least until march. to me, this is a political story, really it's a battle between germany and the ecb. i think they have their work cut out. that's why mr. draghi will want to say as little as possible today. >> can you bring us up to date on the time frame for the quantitative easing program? isn't december a key deadline? >> the process is that it's technically supposed to run out by march of next year. this is 80 billion euros a month of purchases. of course within his promises of

qe, mr. draghi always said or beyond. he could, technically, just allow the program to continue should he so wish. however the fact that people are focusing so clearly on what happens in march, the concerns a month ago is whether they would run out or not, people will want clearer guidance about whether we will continue on with the program, whether we will start pulling back from that. my own guess is i think it's almost certain we'll start hearing words -- back in december or in december about extending out. i think you probably will get a loosening of the restraints. in particular they will started looking more easily at what countries they buy those bonds from. >> simon, just very quickly. the pound, has it found a short-term flaw? >> short-term, yeah. sterling also bounces mid trend.

any of these big moves overtime. ultimately we'll cut rates, we still have the uncertainty. sterling will head lower against the dollar. i think 110, 115 by early next year. >> the mexican peso at a six-week high against the u.s. dollar. has it priced out the possibility of a trump victory in november? i keep flashing back to that night of brexit where the pound ran up to 150 and priced out the possibility and that tanked when we got the results. >> well, i think you're absolutely -- clearly you should never ask a britt about political uncertainties after what's happened over the last six months here. the key here is the relatively modest moves you saw in the mexican peso and the yen overnight on the back of the debate, to me that suggests really a hillary clinton victory is all but completely priced in by the market.

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good morning. economic date a and an ecb decision coming up for you this morning. and tesla saying all new vehicles will be produced with self-driving hardware. and the gloves come off in vegas. hillary clinton and donald trump square off in their final presidential debate. it's thursday october 20, 2016. you're watching "worldwide exchange" on cnbc. ♪ good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen. >> a girl who just wants to have fun. >> i did not realize this song was a cover. throwing it back with cover songs.

cyndi lauper made it famous. >> the original song by a gentleman. >> robert hazard. >> good morning. i'm wilfred frost. i, too, just want to have fun. fun for us means checking in on the global markets. futures a bit higher. yesterday we saw fractional gains, 0.2% of gains for the s&p and the dow. looking at similar moves in the premarket. just 35 points of gains for the dow. 2 1/2 for the s&p, 5 1/2 for the nasdaq. european trade, gains yesterday, slight gains. slight gains this morning. the dax up a quarter percent. the ftse 100 just below flat. european markets waiting on the words, the tones of draghi expected at 8:30 a.m. eastern time after the decision at 7:45 a.m. eastern time. asian trade, let's check in on that. more decent than european. nice move for the nikkei.

the tones of draghi, sounds like something that i would say. >> quantitative easing. >> always moves markets. >> interesting to hear simon derrick say the last press conference mario draghi spoke as slowly as he could trying to give little information. >> unlike the boj and the boe which can just go. >> still the best central banker in the world. >> with the best skinny ties. 2.6% gain in oil prices helped to fuel stocks yesterday. giving a bit back this morning. potentially some profit taking. wti sitting just below the $51 a barrel level. brent down about 1%. gas prices down as well. ten-year treasury note yields hovering around the 175 level on the ten-year. we have backed off of those

highs on the ten-year yield of 180 or so last week. there we are at 175. as for the u.s. dollar, it's also sort of had a quiet week so far. holding its recent gains. giving some back. the euro weaker, absolutely flat ahead of mario draghi's dolcid tones. dollar stronger against the yen that propelled the nikkei. that weaker yen helping exporters. the pound down to 122.66. >> i think it's time to here some dolcit photones from someb else. on the political front. >> hillary clinton? >> no. >> donald trump? >> no. john harwood? >> there you go. >> john harwood joining us from vegas this morning. hillary clinton was more aggressive than we've seen her. but that trump statement, refusing to say he will accept

the final outcome of this election takes the cake, that takes the headline this morning. it did dominate the headlines. you know, the tones were few and far between in that debate last night. started out in a calm and measured way. chris wallace put the issue on the supreme court, talked about abortion, second amendment and gun rights. pretty soon it devolved into a personal back and forth exchange over who was a puppet or not a puppet for vladimir putin. this was an example where donald trump refused to accept the verdict of intelligence agencies that russia has hacked the computers of american political figures, including hillary clinton's campaign chairman and the democratic national committee. they got very rough back and forth, all of that swallowed up by this exchange with chris

wallace over whether the basic legitimacy of the american election would be honored. >> chris, she should never have been allowed to run for the presidency based on what she did with e-mails and so many things. >> there's a tradition in the country, one of the prides of this country is the peaceful transition of power and no matter how hard-fought a campaign is, at the end of the campaign the loser concedes to the winner. not saying that you're necessarily going to be the loser or winner. but that the loser concedes to the winner and that the country comes together in part for the good of the country. are you saying you're not prepared now to commit to that principle? >> what i'm saying is i'll tell you at the time. i'll keep you in suspense. >> let me respond to that that's horrifying. >> so, keep you in suspense. this is something that is bigger than an ideological divide. bigger than a partisan divide. you saw it after the debate when republicans who had tried to

lead donald trump to saying he would accept the election results, his own daughter said that yesterday afternoon. his running mate, mike pence, his campaign hahnemamanager all they'll accept the election results themselves. he's talking about media bias, that sort of thing. then donald trump himself on stage repeated the statements that he has been making, that he thinks the election might be rigged and he may not accept it. this is something that drew the bottom line for the debate, which is that like the previous debates, donald trump who needed to move miles closer to hillary clinton, given her deficit in the polls and his inability to far to expand constituency didn't move an inch. he talked to his base. we saw that in post-debate polls. the cnn post debate poll, 52% said clinton was the winner. 39% said trump was the winner. that's pretty much the side of their base, when you do a poll

about what is the election preference. donald trump did not move forward to winning the presidency last night. three weeks left to go. we'll see if anything else can happen. if you're a republican, hoping that donald trump made a comeback last night, you have to be discouraged. >> we have to talk about what it means for the rest of the ticket. john, stay with us. we also want to welcome stan colander to the show, national director of communications at corbus group. good morning to you, stan. >> good morning. >> what are the implications and ramifications of donald trump telling america that he will keep them in suspense as to whether he'll accept the outcome of this election? >> are two things. john, eloquently talked about the impact on the trump candidacy. he didn't mention that every down-ballot republican over the next couple of days will be forced to respond to that exact same question, do you think trump was right? do you think the leader of your party, the top of your ticket

was correct in not accepting the results of the election? we already had prominent republicans come out and say he's wrong. we should dispute what he says. let me say, the most important thing about what he said wasn't that the election might be rigged, but that clinton's candidacy should have never been allowed. that gives him room to dispute the election results, whether he's a small loser or big loser. >> john. >> are we overreacting on the rest of this down the ticket? it's easy for die-hard republican supporters to vote republican down the ticket but then abstain or vote differently at the top of the ticket. >> first, i do think you're right. i think that we can overreact to any particular statement made in the debate and when donald trump says he refuses to accept the results of the election, this is one person. other republicans indicated they won't go along with the line. the republicans who win, and

there will be a lot of republicans who win on november 8th, they won't go along with that line and say i was the victor in the product of a rigged election. i'm not sure in terms of civil unrest and that sort of thing, i'm not sure there's that much potential for that. i think republicans are increasingly going to distance themselves from donald trump and draw a line between the unique candidacy of donald trump and the broader republican ticket. are they going to be able to limit the damage down ballot? if you tell supporters the election is rigged, that's not encouraging to supporters to turn out and vote. their potential down ballot effects, if that's widely believed. a lot of other republicans will be pushing back against that idea, encouraging voters to come out, saying their votes will count. and i think that will mitigate some of the impact, as you

suggested. >> stan, you are the budget guy. you pay a lot of attention to our nation's debt which has been missing in the debate this fus . we did hear a bit about it last night an a different stance on the markets. what was the impact to you? >> donald trump said his -- the costing out, the $6 trillion, $20 trillion, an increase in the debt of his plan was wrong because he would be able to grow the economy in the way that even conservative economists think is impossible. it was noteworthy at the end, with two minutes, three minutes to go in the debate, they first got to talking about social security and medicare and other entitlements, and had very, very little time to talk about. what you did come away with was that a budget deal will be very, very difficult given where each

one of these candidates are. and increasingly where the republican party might be torn apart and have to fight out, relitigate the donald trump moves over the next couple of years. i'm not expecting anything to happen on the budget through the next election based on everything we heard last night, the debt going up, deficit going up, not much will change. >> nobody has a plan to deal with the debt. >> let me make a couple points on that. first of all, hillary clinton made the point, and she's been backed up by analysts who evaluate these plans, that her budget proposals are pretty much paid for dollar for dollar. not exactly, but pretty much dollar for dollar. donald trump's are not. hillary clinton indicated on one side of the grand mar gabargain. if the two sides are tax increases, the other side benefit cuts, hillary clinton is

on board for the tax increase side of it. not the benefit cuts. donald trump is not in favor of either one. he wants to reduce revenues, but he also wants to leave benefits untouched. he didn't say that last night, but he made no indication that he would move towards a grand bargain. >> he was talking about 5%, 6% economic growth, which he says is realistic and would end up paying for the whole thing. >> which is not realistic. >> that's what most economists would say. >> stan, quickly on trade. that is an area where some people think mr. trump has some ammunition to attack secretary clinton on given that she may have flip-flopped on the topic and changed her mind. did he score points on that topic last night? >> no, i don't think so. it's not the kind of issue that will move big segments of the population, or voter population. where he did score points is on

hillary clinton's 30 years in office, what has she done and why is she waiting until now to make changes. >> that was the best thing that donald trump did last night, repeatedly go back to 30 years time for a change. that's what he did well in the first debate for a bit. did it most last night. >> she did have that line that he was hosting "the apprentice" at the time she was trying to take down osama bin laden. we'll leave it there. thank you. stan colander and john harwood. elon musk announcing that all new tesla models will come built with self-driving hardware. phil lebeau joins us with the details. good morning. >> good morning. this was an announcement that elon musk said was not going to be expected by many, and he's correct in terms of how

ambitious he and tesla are in terms of rolling out self-driving hardware in their vehicles. here's the announcement, the details. this next generation of hardware, which they call hardware 2 is being built into every vehicle being shipped. it will be in the new model three when those vehicles are built next year. it will allow the vehicles to be level five autonomous drooifling by the end of next year. perhaps well into 2018. that exact rollout remains to be seen. the hardware will be in place by all the vehicles. here's the catch. it will cost you about $8,000, right now that's the pricing, for that hardware to be activated so these vehicles can drive themselves. for elon musk, this is him doubling down on the idea that it's time for us to take that next step when it comes to autonomous driving.

the current autopilot systems, this is level two autonomous driving. this is advanced cruise control. it can keep you in your lane, assist in certain areas, but the vehicle is not making those decisions. musk is saying by the end of next year, once this system has been validated and certain aspects of the software are updated, they will demonstrate a completely autonomous drive from l.a. to new york. by completely autonomous we're talking about nobody touching the steering wheel. the vehicle completely controlling itself. some of this raised questions, as they add this new hardware, what about mobileye? tesla broke with mobileye in terms of this autonomous drive technology. rcb capital last night saying in a note that there's been concern as tesla develops this tesla vision, if you will, that it might impact shares of mobileye, might prompt other automakers to develop their own hardware,

which could hurt mobileye. they believe that for now mobileye will be able to continue to demonstrate a proficiency in this area. as you look at shares of tesla and mobileye over the last year, the question will come up how quickly will we see this out on the street. they're saying they will demonstrate this by the end of next year. >> phil, just very quickly, why shares off on the become of this? sounds like it increased optionality for the company moving forward. >> i think there's still a lot of questions out there. first of all, remember, their system is under federal investigation. ntsa has not closed the investigation into the current autopilot system. that's one issue out there. also remember they have earnings next week. we have seen this from time to time where shares of tesla will trade down ahead of the earnings report as people hedge a bit in terms of looking at, well, will they be able to meet expectations? will guidance change?

what can we expect in the fourth quarter? all of those are likely to be factors in the shares trading. >> and can they actually deliver the cars? that's the question throughout. he's not short of ideas and plans. thanks for jumping on. when we come back, the stories most likely to drive the trading day. we'll talk about market implications of last night's third and final presidential debate.

coming up, earnings,

economic data and ecb decision -- i just said data. >> data. you never know with you. >> no. >> busy day for markets. we'll get you ready with jack caffrey. stay tuned. this man creates software, used by this bank, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this vice president, this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured.

the market has improved. the markets have improved for these companies. they're not where i would expect them to be when good results and when growth and higher pace of growth is established. but we're directionally heading towards that. >> that was goldman sachs ceo lloyd blankfein yesterday. joining us now is jack caffrey. thanks for joining us. >> thanks, pleasure being here. >> what about the levels of uncertainty and the direction it will go? >> what we've seen is a minor

disconnect, if you will you're seeing economic data which has been okay. but not quite as good as people were expecting. i think that's why you are seeing pressure on valuations. but at the same time the corporate sector continues to do what it's been good at. controlling costs, been able to try to provide reasonable guidance and managed to exceed that guidance. that's why we've been seeing rallies over the past few days and hopefully can continue today. >> there's a feeling on the floor, you hear traders talking about it, increasingly in the markets that while a hillary clinton status quo sort of result would be the best-case scenario for the markets, not a democratic sweep. that would scare off healthcare investors, in terms of getting that democratic agenda passed, that would be negative for the markets. do you feel that way? do you feel that's holding the markets back as she continues to maintain her lead in the polls? >> i don't know that it holds the markets back. markets prefer certainty to uncertainty. as we go into election you have

to handicap how much, how deep, how the compromises are aligned. there's a perception that a divided government has been less likely to take less dramatic action, which means more incremental and more incremental is easier to model. that said we wind up in interesting times. interesting times present opportunities for us. >> are you seeing that anywhere now? >> i've been adding to positions, adding to positions in the industrial sectors, looking for companies to restructure themselves to be less dependent on gobel growth. >> what about the banks? all of them really beat earnings expectations, particularly morgan stanley and goldman sachs. >> you have to slip between

banks and investment banks. where we have seen strength is in trading results. trying to model trading is beyond most people's skill set. it's something that people tend to almost -- you know, we benefit from it when we're right. it's a struggle to get your hands around when volumes are low. certainly fixed income markets were exciting early in the quarter. that carried through to more trading centric banks and to the extent you look at more traditional lenders, you've seen a slow pace of cni activity. with that you've seen some split between the regional banks. >> curious on your take on technology. we've had mixed performance from intel. we'll get microsoft later. netflix was a disappointment. last quarter was positive for tech stocks. are you expecting earnings to pick up here in the next few weeks as we get results? do you want to be a buyer of that group? >> that group has had a great third quarter.

momentum has been continuing into the more consumer centric you are, generally the better off you have been within the technology space. the consumer has been the driver. the enterprise is not quite sitting on their hands but much less active. >> ecb meeting today. the dollar's march higher has just paused for breath a bit. could we see something on the ecb front that reignite there's a dollar strength? >> i think the question will be what are the ecb's intentions in terms of will they talk about taper? will they talk about extending plans? to the extent that my ability to handicap bank trading results is challenged, the ecb is more outside my area of expertise. when there is chatter and fear about it, that's a bit more of a challenge for us to handicap what's going on. >> jack, caffrey, thank you. netflix had a great quarter and surged 20%.

watch microsoft after the bell and the mexican peso. >> travelers, american airlines, lots more earnings to focus on today. that's it for "worldwide exchange." "squawk box" is next. at now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com.

good morning. crude oil retreating from yesterday's 15-month high. we'll bring you a full market rundown as we await today's ecb decision. isn't it great central banks are everything in our life? a busy morning for quarterly results. driven by tesla. elon musk says the company's new vehicles will be fully autonomous. and a master of suspense at last night's debate. donald trump refusing to say whether he would accept the outcome of the election if he loses. more highlights are straight ahead. it's thursday, october 20, 2016.

"squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" on cnbc. andrew and becky are off today. look at where u.s. equity futures are at this hour after a strong day yesterday. look at the dow. it would open up about 38 points, the s&p up by 2. nasdaq up by 6. overnight in asia, strength in japan is notable. 1.4% is the gain on the nikkei in japan. that's a six-month high. that index touched intraday largely on weakness in the yen. hong kong for its part is up by a third of a percent. shanghai closing flat. european equities ahead of the ecb meeting or decision that happens around