"squawk box" starts right now. live from new york, this is "squawk box." >> good morning, welcome to "squawk box" right here on cnbc. take a look at the futures at this hour. after a big day on monday, the dow looks like it's going to open up about 9 points higher. s&p up about a point. overnight in asia, let's take a look at what's going on there. a bit of a mixed picture. nikkei is up nearly a percent. shanghai composite is up as well. let's fly over to europe real quick as well. there again, dax is up. italy and spain both off as well. a quick look at crew right now

landing at 50.79. >> visa reporting a better than expected increase in earnings. higher payments and the acquisition of visa europe helping results. trading was choppy after the bell. visa's full year growth outlook was light of estimates. stock lower by a quarter of a percent. >> twitter planning job cuts that could be announced this week. the social network could terminate about 300 people. that's the same percentage it cut last year when co-founder jack dorsey took over as choef. the news comes amid-questions about what's next for twitter. bill miller was on halftime report yesterday. what twitters needs is an activist. >> i think an activist could make a difference there with respect to being on the board. that kind of thing. >> you have done a lot in your career. maybe it's time for that. >> no, not me.

>> twitter announcing it will change the release time of results to before the market opens on thursday. originally it was scheduled to report after the bell on thursday. it wants to avoid conflicting with announcements by other internet companies. >> what do employees do at twitter now? >> they code. >> it seems like it's there. >> they are changing the interface. >> that would be the idea. >> i always say they have a bunch of stuff i don't want to see. do you want to see more of this? no. then they still do it again. here's some people you may know. i looked at who they had. i go, no, i don't want to e see that either. just give me the neews feed. they just need a custodian to

lock up. how many employees do they have? >> they give live feeds of certain football games. >> that's new. that's good. >> the election. >> in the vein of watching tv on your phone. >> then you can tweet at the same time. >> so there's still code being written. >> dupont is out. they need a lot. 21 cents was the estimate. and like last quarter, the quarter before that up $1.26. this is a a quarter where they typically don't have the same type of earnings powers in the other quarters. 34 cents is what the company earns. it's well above those expectations. and third quarter sales was 4.92

billion, which was above the estimate that people were looking for. third quarter volume rose 3%. look at how many different eps numbers there are. you got without the adjusted earnings they would break even. from continuing operations, it was 1 cent. then earnings per share, you can compare to expectations. u.s. and canada sales, $1.6 billion. ema sales, 1.13. and they see 2016 earnings of $2.71. so they are talking by earning 34, that seems louk they are coming down. i don't think that's adjusted. because the streak is looking for $3.19. i don't know if you can compare

that. >> because if it is, it's a big miss. >> i don't think. all these things, you got to know so many things before you say anything. i would say that's not the adjusted number because they are almost there already by a 13 cents. >> that's just the beginning. a lot more to come. busy earnings season just getting started. five more set to report before the opening bell this morning. here's the list. united technologies, proctor & gamble, 334 and caterpillar. the ceo of proctor & gamble is going to join us. the earnings don't stop there. we're going to hear from pharmaceutical company ceo eli lilly and talk to the ceo and results from general motors and talk to the cfo. you got to keep watching for up to the minute earnings news and analysis all morning. kicking off the week with a

a strong showing in keeping with jeffrey's model, which he now says is turning bullets. the chief investment strategist at raymond james. i feel bad for david. this big introof what he's thinking. we also have this other guy. david, we'll have you on together next time. i'm going to start with you and have a long list of things you think and then just interest out. you were -- have i got that right? >> yeah, the model turned negative look iing for a a smal window of vulnerability between mid-september and late september. we said it was probably going to be nothing more than a 3 to 6% pullback. we had a 3.7% pullback.

the models now saying that the window is closing this week. it has raised its 2016 view to an adjusted 325 and the street is at 319. >> they raised. >> they earned an additional 13 cents this quarter. so they are only going 6 cents higher on the full year. so i u don't e know if that means the 48 cents in the fourth quarter. they already just got 13 extra cents. >> always crazy to figure this out. so david, you made me feel like it's really simple in looking at some of your comments.

earnings have been better than the previous five quarters. and the fed in all likelihood wants to raise rates and will. maybe worry about interest rate sensitive stuff, but stay with cyclicals and it might be a a good market. >> i think that's right. the economy is getting better. we had a lult bit of a soft patch in august. but the economy has rebounded in september. we're also seeing some improvement economically overseas. the one area they would say keep an eye on that might be a problem that's a $. it's been getting stronger. but the fed is going to raise probably in december. maybe just one time for awhile. so i don't think the dollar is going to run away from us here. so if you get better earnings, you get better top line growth, which is also a big story. we haven't had revenue growth in a long time as well. i think that's enough to at least support valuation where is they are. to the point where i think the market brought forward some of

these gains in the third quarter. and we need this earnings growth to come through simply to support these levels. i think we can move a little higher, but i don't think we're off to the races here. it was baked into a large extent. >> part of the dollar index is the pound. that's why it's breaking out. but it's kind of back where it was with the euro when we were really worried about the head winds. but like you, if it's a quarter point in december and it finally happens and it's like pulling teeth with these guys, i wouldn't be surprised if the dollar weakened after they did that because it's already discounted anything the fed is going to do. do you think -- that's what you're saying? you think u it stays where it is? >> i think a lot of it also depends on what the european central bank does. that's it the far more important meeting coming up in early december. they need to do something about

their program. it runs out of bonds. they are going to extend it. if they do, i think that probably lends a little bit of strength to the dollar here as well. not in a huge way, but the tendency is far the dollar to continue to strengthen at least a little bit here. >> neither one of you gentlemen have mentioned the other e. the election is two weeks from today. do you care what happens there? i think i'll get to what david said because i don't know if 1.1% is a selloff. we're going sbo that s it going to affect the market? >> i think there will be winners and losers by industry basis. information over the past 100 years, primary elections and presidential elections are not primary to portfolio. what david said is really key. i think the markets are transitioning from an interest

rate market to an earnings driven bull market. i think it's going to become evident of that and this is the first shot across the ballot with the third quarter earnings. >> there's this guy that depends on what side of the aisle you're on. i see it on conservative websites. he's some guy that's looked at the election and says trump is going to win. i think it has to do with how solid you were in the primary or something. but you say that if the market is down between july and october, the opposition candidate wins. i guess you mean the opposition in terms of the party that's in power. so it's only down 1.1%. so that's small. we have never had an opposition candidate like donald trump either. i'm not saying that in a bad way. we have never had an opposition candidate like him. he's not your typical republican

or democrat. >> that's right. that's part of the point i was trying to make. this election season seems to be defying history a a little bit. those data comes from s&p. they say that the three-month performance is indicative. but this time it's not happening. the other thing that's not happening this time is market volumety uty is not moving. >> you're all the zero. nothing works. that's why no hedge fund guys can make any money. everything is sort of massaged to be where it is. it's much more difficult. >> i also think part of it is the market is looking at the polls and at least saying we're probably not going to have dramatic change in washington. >> no dramatic change. that makes me feel much better. that's a joyless.

thank you. i miss the mustache. any thought about having that come back? >> i have a side bar for it. i don't know if you saw peggy's comments this morning. a sane donald trump could have won but he's a nut. >> that was yesterday or over the weekend. i saw that. >> this election is over. >> he said that person doesn't exist. that was the last line of her column. we'll see. we'll see. br brexit, we were definitely staying. won't mention any names. >> all of them? that's what everybody said. >> people in this room. thank you. that guy over there. when we return, the big report after the bell today. it's going to be apple. we're going to tell you which products are helping or hurting

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welcome back to "squawk box." the big story of the week, a trt and t buying time warner for $85 billion. you see the cover of the "the wall street journal." it's almost the same exact story. the deal faces a barrage of criticism from regulators. weighing in netflix ceo shared his thoughts on the deal. e he sat down yesterday at the conference. >> we didn't know anything about it. we're just sorting through it. for sure we want to make it so we want to require for at&t customers that hbo and flix are treated the same. now that they are going to own hbo, we think any special treatment would be inappropriate. but i think that's pretty basic. >> hastings was also asked if he might consider going after time warner himself to which he responded, next question. later he said that was not a no. hastings said one reason netflix has been successful is because

of his stayed out and they don't do banker meetings. stock is up 27% in the last year. more of that interview throughout the morning. >> $54 billion company. it's a reverse pacman. that would be hard to do. >> if you're going to take it at that kind of premium. that would have been interesting. the new talk is whether if you're disney and you have to figure out what you u do next. >> do you buy u next flit? >> there's a great strategic rational. all of a sudden you could pipe through all the disney stuff, all of the espn stuff, create premium tiers of netflix. you could do a lot with that. >> if you believe net neutrality

is real, that randall has to take your stuff any way, you don't need it. but you do need the direct relationship. >> with the consumer. >> acquisition for this. >> it would be a massive acquisition. >> based on their market capital. people were talking about that yesterday. >> that would be a big deal. >> would it ever happen? day two and the font page is the same exact story. >> i think it's possible they get the deal done. but i tis it's so difficult to make the strategic rational of it actually work very well that it becomes challenging.

meaning it could just live in its own silo. it could produce some cash and be a nice business. the question is what you can do after. >> they would have some cost savings. i don't know if it's a billion. i was surprised at it. >> i understand why he wants to do it. the strategic merits i think the government is going to really chain the l hands. i u imagine will try to chain the hands to the point where the sort of national synergistic. >> i'm just shocked at how everybody in washington is talking about how this is

standard oil all over again. big is bad. >> the notion that somehow they went easy on comcast, have we seen comcast do so well with these things they are able to do now? has that happened? they weren't tough enough on restrictions? >> it's been a great asset for comcast. >> the regulators went soft and didn't get the gauarantees they needed and they are going to do it this time around. >> if they allow it to happen at all. >> buyers remorse they let it go through because the restrictions weren't tough enough. >> i don't see it. >> these guys are straight shooters.

nothing happening in that regard. just want to be on the record saying that. >> do you agree with me or not? >> i always agree with you. >> apple out with fourth quarter fiscal results after the bell today. the company's annual revenue expected to drop for the first time since 2001. that's according to "the wall street journal." let's talk apple and expectations. >> i was off camera. >> it's very reasonable. >> i remember there was a big temper tantrum in the morning. and the stock was in the mid-u 90s. it's up 22%. >> first time you did it had a $750 billion market cap. i was saying it's going to double from there.

then it went to 90 from 130. so let's remember that on the way down you didn't look so smart. >> so it had a down tick. >> the key here is tim cook make apple grow again. that's what people want to e see. they want to see this company return to growth. the profit the sales cycle bottomed out in the june quarter. >> mauk america great again? >> you can run in 2020. that's what we're looking for. again if we take a step back here, what was the big surprise? the iphone 6 in september 2014

was too big of an upgrade. you had 37% unit growth. the market grew at 12. fiscal '16 units come down 9%. over that two-year period, iphone grew 14%. this is why china grew 84% in first call '15 but it's going to fall 18% ending in september. this is all comps. we're going to start to return. >> apple had no answer for that. and finally with the the iphone 6, that drove the camp. we're getting caught up in that company doesn't innovate. it's absolutely ridiculous. >> i hear it all the time from competing analysts, portfolio

managers. you heard this in the summer of 2013. so i think you and i had a little bashing session in april 2013. the stock bolted out and doubled within 20 months. i feel like that bloom and doom that we saw in that summer is very similar to this summer. >> my argument has always been about numbers. bomber was in this week. >> it was going to be worth 1.2 trillion. it gets harder and harder. you know so much about it. you're looking at the trees like this. then the forest is the law of large numbers. it's hard to double from $750 billion. >> i agree. the big difference is microsoft had 90% share. any company, they have all been

to $600 billion. they go back down. microsoft has clawed its way back. >> what about the reports that apple looked at time warner? do you believe those? >> i believe it. because i think -- i don't think they should make a bid, but apple has a fiduciary responsibility to look at everything. especially when they they have ambitions in the media/tv world. if they do that -- i don't think they are going to. >> they lost their way with what they know how to do. >> they are disciplined. >> is there anything on the horizon? >> we're getting a a mac book pro. what we have in the future wearables, i hope one day a car. and i see which is not out in the press robotics. this is a big opportunity in personal robots. >> can't wait. >> hope you're right about the

robots. coming up, prepare iing -- think of it in this context. preparing for the risk of cyber attacks. we'll take a closer look at the ways companies secure your data and protect against hackers. "squawk box" will be right back. still to come, a flood of quarterly results. all set to report in the next hour. we'll bring you the numbers and reaction from wall street. keep watching "squawk box" for up to the minute earnings news and analysis, right here on cnbc.

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

welcome back to "squawk box" on cnbc. futures are adding to some of the gains that we saw yesterday. although they are muted 23 points on the dow as indicated so far. that was 8 cents short of estimates and revenue was also just below. we'll talk about the quarter. this will be the last time as the ceo.

the obama administration says premiums for plans under the affordable care act will go up sharply next year. and many people will be down to just one insurer. the department of health and human services says the average premium for a mid-level plan will go up 25%. officials do note that about 85% of obamacare customers qualify for financial aid, which can cut their costs. however, republicans including donald trump are jumping on the numbers as a warning that the insurance markets created by the law are petering towards a death spiral. >> it's over for obama care. they it want to make it more expensive and it's not going to work. i called it when it first came out. it's only getting worse. a kocountry can't afford it. you can't afford it. we're going to have great health

care at a fraction of the cost. you watch. it will happen. >> insurers have pulled out of most state exchanges for 2017. as a result, customers will have fewer plans to choose from. in five states there will be offerings from only one insurance company. and a normal election year, this would probably be a big deal. we might be. talking about this. but you won't see this on the big three nets. >> tonight cnbc hosting the first ever net net summit. it looks at the ways the top companies and executives are promoting and managing innovation and using technology to accelerate growth. one of the topics that's going to be covered is how to deal with risk. risk with cyber attacks, global unstability and the risk of

terrorism. joining us is one of tonight's speakers on those topics, a a former cia deputy director of intelligence and contributor to the global security website. we welcome her this morning. >> thank you. >> so help us with this. you think about cyber attacks as being the most dangerous right now or traditional physical attacks. what are you worried about more these days? >> i think we're probably less prepared for cyber attacks in the events of last week. what makes cyber attacks dangerous is the fact that just about anybody with a decent computer literacy can pull something off like that. attacks last week we're still trying to figure out who carried them out. it could be disaffected gamers that used the code. >> what's the worst thing that you could imagine? >> the worst thing i could imagine in terms of cyber?

let's just for a moment. i think that you could have a series of cyber attacks that let's say on election night denial of service attacks on state election boards. and major news outlets that would make it impossible for people to access returns. would cast this sort of uncertainty, distrust about the election process. so i think immediately that's something that -- >> maybe i shouldn't have asked this question. >> if i were a state election board or major news outlet having seen what happened with the denial of attacks last week, service attacks last week, i would be looking at how do i u protect myself from something like that on election night. >> but the question is can you? is there a way to meaningful

protect yourself? it means that a computer is sending just millions of messages. >> there's a benefit to age actually u. but i think it's very difficult. it's very difficult to protect yourself against distributed denial. >> what about the power grid? >> that is more likely to be an intrusive attack. the attacks last week were bombarding a company so that they could not process their normal business u. that's what could happen to a content provider. to bring down the power grid, you actually need to drop some kind of malicious code through an open portal into the software

system of the utility. >> how would you do that again? >> drop it in? >> it is possible. >> he's not telling them anything they don't already know. is it just a guy with a laptop in a basement? >> it could be a gal. >> then you go and do that. >> it can be individuals. what happened last week as i understand it is some malicious individual or groups of individuals actually publicize the code that the people who launched the nooul of service attack used. that's a clever way. so you're the bad guy. you put out for anyone to use this code that you have developed and then it's very difficult to track down who used

it. it can be individuals. i think they are thinking about last week's attack is it was not state sponsored. we know from what people have publically declared about the effects on the national committee that it can also be groups associated with governments if not governments themselves. >> final question for you. one of the issues you're going to talk about tonight is just the idea of how you tell this information, describe this information to ceos and other executives that you brief. >> so my experience is when we brief senior officials at cia two things i would tell you. first, you have to understand how that person absorbs information. if that personal is e emotional, you have to brief with emotion. that person is facts and figures, you have to go that way. the second is bad news, you got to deliver bad news early and often. i think a lot of people when they are briefing their superior

try to sugar coat and in today's world that's a a mistake. >> gooded ed advice. we appreciate that. you gave us all the news. good luck tonight. we look forward to seeing you. >> the net summit is at the new york stock exchange. i'm going down there for cocktails. >> were you invited? >> i think we could probably go. >> we'd get you a ticket. we'd get you in this. >> they don't give you a bill. hence the cocktails. >> speaking of cnbc proprietary content, cnbc is unveiling a new index today. how it works, show you how it stacks up to the broader s&p 500, right after the break. let's get a a quick check on

what's happening in european markets. higher across the board. but not a super strong session. "squawk box" will be right back. p

today cnbc is unveiling a new index. it's our own iq 100. it's powered by our new partner research firm. dominic joins with us a first lock at this new index. >> so fundamentally the cnbc is an index of what we're calling innovation leaders. everyone has got their own definition of what innovation is and what leadership is there in that context, but we're defining that index as companies that derive a central part of their sales. thaer trademarks and brand equities. they are doing it across a wide range of businesses. they are challenging conventional classifications in single business lines. e we look at consumer staples or energy as a sector. . unlike many other indexes, there's no human bias. selections are made by a system. it's a screen that screens all

public documents from companies within the russell 1,000. tr those nerds and geeks out there, the complete methodology is on cnbc.com. within this index, you'll see many companies you'd expect and some you might not. we didn't make the cut overall for some of these company pchs we're going to show you some of those that made the cut and didn't make the cut later on today. the best spriesz of all. though it wasn't -- it does correlate to it. you can see it tracking there. it outperforms the s&p. so michelle, wait for this to kind of roll out. you'll see a lot of the companies we talk about are innovation leaders and we'll see whether or not some of these e rebalancings that happen from time to time move some companies in and kick a a lot of them out.

>> we're going to dig deeper into that index with david martin, founder and chairman of mcr mcam. this is about intellectual property. you focus in on that. >> anything that's part of that general intangible universe. patent, trademarks, brands, anything that's a right granted by a government that gives you market advantage. >> so i think people will be surprised to see that facebook and google are not in this index. whereas johnson & johnson are. but facebook and google to me seem very innovative. >> just because you use technology, doesn't mean you make it. and the fact of the matter is if you look at the financial segments of both of those companies, they are 90% advertisers. it's an old human phenomenon. that's not innovation. and just having a shiny gimmick

at the front end doesn't make it innovation. it has to be something where across multiple laterals you can control price and cost and those things are what makes innovation work in a company. the fact that you have a bunch of eyeballs that go to your site does not make you innovative. that's the big, big distinction. we're looking for companies that are driving their profitability based on their creativity. >> yahoo! is in this index. why is yahoo!? you say that with such conviction. >> the funny thing is yahoo! the company measured by its assets is innovative. yahoo! measured by its management, not so much. but that's a very important point to make. a lot of companies because of their previous activity have a ton of intellectual property. they have things like analysis, social media, things that yahoo! was first in market many times to develop the core technology.

the fact that they didn't use it and the fact that they didn't deploy it effectively doesn't mean they don't have it. and by the way, when yahoo! needs to make up earnings traction, what do they do? they throw their intellectual property out. it's the gift that keeps on giving. >> is that being that @ company is remarkably undervalued? >> no question. gap accounting doesn't have any treatment for internally developed ip. if you have patents or copyrights and developed in-house and cannot give you treatment for that. so a company very infrequently is really understood if you look at the gap statement. the only treatment we get is for acquisitions. even then, it's dodgy to say we have good gap treatment. >> verizon trying to buy that company s that a great deal. >> it's phenomenal because what they don't know is what's free inside. >> i think of tim armstrong and aol. >> no question.

if you think about it, one of the points that i love to make is if e we look at a company that is a total sleeper and have never even understood it or really a company like bla blackberry. there were people that knew how to deal with pay at the pump technologies. they could take a phone and allow it to be used as a pay at the pump technology. they had a technology that's critic critical. that would be more valuable to someone who sells gas pumps than push e-mail servers would have been. so all the conversation is about blackberry denied looking at the ideas that are inside of that company. so what we're looking for in the index is getting inside the company and saying what price control do you have on a market that matters. >> how should this perform over time? you think it's going to perform better over time? >> we have been trading around the strategy for a long time. we have run a fund and been trading around the strategy for

a a long time. what e we find is that as you look over time, companies that have robust innovation that they deploy effectively typically bounce back faster than the companies that are largely commodity players. so we should see over time a secular outperform. >> great to have you on. >> great to be here. >> we look forward to use iing s it index. you can go to our website and check out all the companies in it that. based on what he just said, it's going to make a lot more sense where we see old line companies within this index who have a lot of innovation. thank you. looking at merck. the stock is going to trade higher. we had to go through all that again because the gap number was 78. it was 8 cents above estimates of 99 cents. the revenue estimate was 10.17

billion. the company managed $10.54. and we also have an adjusted earnings per share full year forecast from the company. company. now 371 to 378. it's almost identical to what we were talking about with dupont. the number for the year is 375 and they say 371 to 378. already beat it by eight. what they do would be speculation. it would be above it. if you ad add 8 cents on, it would be 383. but a lot of times they're conservative. gross margin 75%. full year revenue of 3.97 to $40.2 billion which that's not

bad. $39.7 billion is what people are looking at. and one of the interesting things i saw was that remicade sales down. most of the other like vitorin was down 7%. then you got one glaringly down 30. it has something to do with exclusivity. all right. so there's merck. coming up, how new numbers show a construction boom in new york city is occurring. we'll tell you what's behind the record-spending levels. that's coming up next.

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construction spending in new york city is on track to surpass the record set just before the financial crisis. an all-time high for city jobs is driving a need for construction space. a 26% increase from last year. check this out. an anheuser-busch delivery truck in colorado made the first autonomous drive commercial shipment ever in the u.s. last week. the beer company worked with oto, an uber subsidiary. the company said it was a

one-time demonstration from the brewery in ft. collins, colorado, to another location in the state. and uber bought self-driving trucks, start-up otto back in august. i would have liked -- i think they should have done coors. i don't get it. golden, colorado, you know. but they did anheuser-busch. and i know my way around -- are you going to have a beer tonight? >> the good news is no drinking and driving. >> right. >> you think your truck guys are, like, because they're delivering beer? >> it's association. >> just going back to their cargo. >> it's free associating. >> is this a vertical association or horizontal? >> in colorado nobody's going to be like stoned out of their mind driving a truck. when we come back, home depot's ken langone. his take on the election, the economy, the climate for business and much, much more.

"squawk" return bs in a moment. tell me, how do you like to learn?

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a big morning for investors. earnings are in focus with dupont, merck, caterpillar, united technologies all out with quarterly results this morning. a rundown of the numbers and what you can expect straight ahead. plus the ceo of eli lilly and the cfo of general motors joins us in first on cnbc interviews. two weeks from today, america elects a new president. >> you've got to get out and vote. this is our last chance. >> both candidates are in must-win florida today. new numbers showing just how close or not this race actually is. guest host ken langone is here to talk about the race for the white house and what it means for your money.

plus what netflix ceo reed hastings thinks of the at&t/time warner deal. his comments straight ahead as the second hour of "squawk box" begins right now. live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i'm joe kernen along with andrew ross sorkin and michelle caruso-cabrera. ken langone is here. ken langone alert, alert, he's here. futures at this hour, this has nothing to do with ken but they were up over 20 earlier. now up only eight on the dow. actually down now on the s&p. up five now on the nasdaq. merck was okay. i'm not sure -- it's 20 points. so who knows. it's come about 16 points or so. we never know. the regular session is much more important than what happens in the morning.

anyway, we just get an idea where things might open. we'll talk to ken after we get through some of this other stuff. >> as soon as we get through the headlines at this hour. we're about two hours away from fresh housing industry data. we're going to get the k.sh sh p shiller report. expected to show a rise in august home prices compared to a year ago. how the new iphone 7 may or may not have helped the bottom line. earnings out from united technologies. the industrial conglomerate earning $1.76 per share. that was 10 cents above estimates. revenues also beat forecasts. we see 8 cents higher in extended hours trading in the premarket. and visa reporting better than expected results after the bell. higher payments in visa europe helping the firm. full year revenue growth, the

results come just a week after its ceo charlie scharf said he would step down. speculation he would -- reports say twitter could terminate about 8% of its workforce or about 300 people. that's the same percentage it cut last year when jack dorsey took over as chief. the news comes amid questions about what's next for twitter. bill miller was on cnbc's half-time report yesterday. he said what he thinks twitter needs is an activist. >> i do. i think an activist, somebody like carl icahn could make a difference there. >> you've done a lot in your career. maybe it's time for that. >> no, not me. >> to be an activist you've got to have a certain makeup. bill miller doesn't want to be one. it's just not in him. twitter will also change the release time of its third quarter results to before the markets open on thursday.

twitter says it wants to avoid conflicting with andings announcements by other companies. procter & gamble is reporting earnings right now. we're going to talk to the cfo first. number one, it's first quarter. so it's not like all these other things. where you got three quarters under your belt. and the company reported $1.03 adjusted which is 5 cents ahead of expectations. the sales number was $16.52 billion. and that is above the $16.486 billion. then we're going to talk to john muller about this. what's important is our sales growth as one of the metrics that people decide whether the company is making progress or not. joining us to break down the quarter, john muller cfo of procter & gamble. more importantly than that,

member of the cnbc global council. if you're going to try and brag on yourself, that's what you say usually, john, right? >> you got it. >> yeah. you got it. here's the thing. are you doing anything with organic sales growth that was different from before? it's still seeing about 2%. is that where you were? are you guiding up? guiding down? are things good or bad? >> so the first quarter was very good from an organic sales growth standpoint. fueled by reductions in costs. we grew organic sales 3% on volume growth of 3%. we grew in every segment in ten out of our ten categories in every region. then on the bottom line carried through with m currency shares per growth. >> all right. you still got some head winds. so for the year you're not going to do as well.

>> for the year we're we've got tougher comps ahead of us. we're managing a lot of geopolitical issues with argentina. even now the philippines. and of course our competition doesn't stand still. but 2% will be a significant improvement versus last year. we hope by the end of the year will be improving beyond that. >> so 3% negative impact on first quarter sales. the dollar's probably gotten stronger as the quarter has gone on, hasn't it? will that go up from 3% in the second quarter? >> the comp should actually get easier as we start lapping some of the big moves that occurred last year. but it still is a head wind. >> on the innovation front, i always like that -- how many

products does p&g have globally? i like when you tell me that. >> we market 65 brands. we significantly focus our portfolio over the last two years into ten categories where we're market leaders globally. these are categories that are used frequently by consumers. and most times daily. they're categories where we've historically grown faster and have had higher margins. so we're a little bit smaller from a number of product standpoint. but we're much stronger. >> we just launched a new innovation index at cnbc. and i don't know -- you'd think that p&g is in there. >> it is. >> you go in a lab and try to -- is that your idea for pods of detergent? >> they keep me far away from the labs but there's a lot going on in the labs. we are the innovation leader in our industry and most of our

categories. and that's very important at this time of relatively slow market growth. innovation drives market. we need to keep leading in that area. >> at this point as you said, you've got rid of some stuff. you don't even have pringles. just the shape of the pringles is cool. it's like a physicist would take awhile -- you don't have those. is the products that you have now, john, is this the final deal? are you still selling stuff? would you -- you have made big acquisitions in the past. think gillette in the past or something like that. but is this the company you want for the future, the way it looks right now? >> this is a company we want for the future. we spent two years undertaking the most significant transformation of this company's portfolio. and we're happy where we stand. having said that, we are very active managers of our portfolio. we look to grow both organically

when the right opportunities present themselves. >> yeah. you? >> i was just going to say you see this no makeup movement? maybe they got rid of cover girl at just the right time. >> what no makeup? hasn't come to this place. hasn't come to this set. >> i'm in makeup as we speak. >> there's a no makeup movement. yeah. kim kardashian blah blah blah. >> i listened to john say about the economy. >> yeah. >> growth. he didn't sound very excited. >> globally. >> well, we're part of the globe. >> yes, we are. i think that's true, john. and that's just where we are. >> market growth has been slowing. that's the bad news. there's still significant growth 3% to 4% per year. also in some of the developing markets, consumers with moving

up the price ladder. so there is still significant opportunities. if we think longer term, we're going to see more population growth, more middle income household formation in the next five, ten-year periods than we've seen in our 177-year history as our company. while i'm cautious about today's rate of market growth. i'm bullish on the longer term. >> okay, jon. other than the musketeers. anything else good you see? >> you didn't see a.j. green's catches this weekend. >> i heard. remember that odell catch? i was there. i think it was against the cowboys. no. i got to see the a.j. -- it wasn't on tv here. the one game they put on tv here, it was -- i was watching andy dalton just going, why, why. where's a.j.?

a.j. mccarron. >> there's still hope, joe. >> no, there's not. there's never been hope not since the '70s. there's never, ever been hope. thank you. >> thanks. >> i say that hopefully because if i distance myself, they'll do better. >> you've got to like cleveland though. >> no. oh, the indians. >> of course. >> i don't like the browns. bengals just beat the browns. >> most exciting world series in history of baseball. >> did you see the tickets? only guys like you can. >> i can't afford the tickets. i just gave away all my land. >> we've got to talk about this. i don't want to get on a rant, you'll call me a reactionary. >> you are. >> i'm not a reactionary. >> but in a loving way. >> all right. then i'm not going to do the rant. >> what is he? >> he's a communist. >> and it starts. and it starts. >> i told andy yesterday i'm

going to go see that group of sell people over there that call themselves capitalists. jon left -- is jon gone? >> jon who? >> from procter & gamble. >> yeah. >> because i don't know what people are seeing about prosperity in e the world. i don't see it. i don't see it. i think we got real problems. >> speaking of which -- >> this is the thing. i think we've become very divided in this nation and people don't believe this but a lot had to do with the way obamacare was rammed down our throats. okay? and then you lost two mid-terms. you saw what happened there. now we're looking back on this eight years which is supposedly great. and the thing that poisoned the wealth is imploding. the obama administration says that premiums for plans under the affordable care act will go up sharply next year and many people will be down to just one insurer. it took two years to pass this

thing by bribing even democrats to vote for it. now, the department -- then i'm just going to let you go until all the way to 8:00. the department of health and human services says the average premium for a mid-level plan is going to go up 25%. officials do note that the majority of obamacare customers qualify for financial aid that can cut costs. however, a lot of republicans including donald trump are jumping on the numbers as a warning that the insurance markets created by the law is teetering towards a death spiral. here's mr. trump. >> it's over for obamacare. and hillary clinton wants to double down and make it more expensive and it's not going to work. i called it when it first came out. it's only getting worse. and not only for you, for the country. because our country can't afford it. you can't afford it. we're going to have great health care at a fraction of the cost. and you watch. it'll happen. >> about 85% of current

obamacare customers qualify for financial aid. 85% in the form of federal tax credits. now, andrew -- >> let's get to ken langone. the floor is yours, sir. >> i wish we could take partisan politics out of all this just for a reasonable, objective discussion on where we are and what we need to do. >> okay. >> we've had low interest rates for how long? ten years? whatever? >> coming up on it, yeah. >> whenever in the past the economy slowed up or you slipped into a recession, one of the primary ways the fed got involved was lowering interest rates. the simple logic being people borrow more money, they hire more people, we get the economy going. there's nothing more we can do with interest rates. and to bump them up a quarter of a point. and a quarter of a point is done. it'll go up a quarter of a point

in december. we're still in terms of interest rates we've got not much left in the magazine. we do not have a strong economy. the world does not have a strong economy. we're barely moving along and as time goes on, you're going to see more and more innovation. by the way, this innovation index, it's over my head. i don't know what the hell it means. >> low bar. >> whatever. to me. oh you mean for me. oh that's fine. >> i was kidding. you're a kazillionaire. in your lifetime you created a $150 billion company. >> and we gave back $100 billion on top of that. >> and all your employees pay taxes and they all -- >> they pay taxes and own stock and many of them -- >> you're my idol. go ahead. >> the fact is we have serious

problems that are not being addressed in this country. they will only get worse. they won't get better. as we take 10,000 more people into the age of 65 and over every day, these people need health care. these people need food. they need heat to live. these people have great needs. they're being forced to now eat into their principal because the returns on what money they put aside are going down. the economy -- i don't care what any of these geniuses say -- is not strong. used truck prices. down. daily rental of our truck leasing company. down. truck manufacturers -- you get a truck next week if you want one. no waiting list. no backup. no backlog. where is all this robust economy? we've got to get away from arguing from political side to political side and look at it

objectively. obamacare, whatever it was whether it was good or bad, we know now that it's like the guy that eats like too much and keeps telling his friends he's on a diet and every time he gets on the scale, the number goes up. okay? this is what we are right now with obamacare. >> uh-huh. >> the guy's on the scale. it's going in the opposite direction. we're heading to a single payer. which, by the way, is exactly what they want. i can't say they want. which they may want. i don't know what they want. they being the other side. >> you have any doubt? of course that's what they want. we know that from her first run at it. >> please. because i can't prove it -- i believe they want it, but i can't prove it. i can tell you right now this does not have a happy ending. >> that's in next week's e-mails that get released. >> but again, we've got issues that need to be dealt with in america. and as long as we're screaming at each other from political ends, we're not going to address

the problems. the economy is at best tepid and as time goes on, technology is going to take more entry-level jobs out. i'll give you a for instance. >> your truck jobs. >> every once in awhile i go and get the miracle grow and see my great research firm in cleveland. i want to see jimmy who i consider to be a visionary. he's nuts like i am, but he's also a visionary. they have a grass there developing that doesn't need to be cut but once every six weeks. >> wow. >> think of the number of immigrants prayfully all legal that won't have a job cutting lawns because the grass only needs to be cut one-third of the time it used to be needed before. the grass is spectacular. it's beautiful.

>> can i ask you a question. if that's true and that's directionally where we're going and i've been very anxious about sort of what technology will ultimately do to jobs. what do you do about it? and we could say education. we all agree that education is important. but at some point, there's always going to be a little bit of a curve, i hate to say it. and then what do you do to protect those people? >> there's got to be a curve. but right now i'm in new york. if i want to go to california and i'm going to walk to california, unless i take the first step i ain't going nowhere. i can't -- there's no way we're going to solve these problems overnight. but if we don't get started on that journey, they're only going to get worse. we can sidestep education. the fact of the matter is obama's been president for eight years. why am i partisan? public education has gotten worse in eight years, not better. if i -- if eight years ago i was in grand park and he was

president elect, i'd say i want to be remembered for one thing. that i'm the president that started education in the right direction. okay? >> fair enough. ken's going to be sticking around for the rest of the show. we're going to continue this conversation in a bit. up next, the earnings parade. eli lilly's johnli likchlichtli joins up.

eli lilly out with quarterly results. the drug maker earned 88 cents a share missing by 8 cents. revenue also short of estimates. joining us john lechleiter. this is his last earnings report before retiring. the wires services, everybody analyzing -- and we have talked about it again and again when you've come on. you've dealt with patent operations guiding the company through these. and it looked like that was mostly finished. maybe that's one of the reasons you feel comfortable retiring. but in this most recent quarter i don't know whether you call it a little bump in the road. but it was sales of certain drugs abroad that were below, i guess, analyst expectations. why'd that happen? >> well, joe, i think for the quarter first of all we stopped giving quarterly guidance some

time ago. i think what's important is we kept our guidance range intact 250 to 360 for the year. we increased guidance revenue for the year. ous sales were down. that's pretty much the residue of the impact of some patents. i think the key story is volume growth of our newly launched products. we've had seven approvaled since 2014. we're up 7%. that mid-single digit or high-single digit growth is consistent with the growth rate for the products. we continue to improve to sales ratio. we continue to progress our pipeline. when i look at the fundamentals of the business, they haven't changed. i think quart tore quarter you see some fluctuation.

>> sim ball ta you lost in europe. then in japan. and there's a cancer drug that you lost. what i don't understand, is why analysts -- are these surprises to these guys? the analyst hs a different number for sales and a different earnings per share number. so you're saying nothing's going on but the analysts are wrong and then the stock goes down almost 3% on this. so who doesn't understand the company or what's going on? >> i think the analysts had slightly higher sales for certain products. they had slightly lower expense numbers. but i don't think fundamentally there's some significant difference between the way we see the world and the way they see the world. they had a higher number for eps in the third quarter than in the fourth quarter. and, you know, in terms of our internal plans, obviously when you do the math the numbers go the other way. so again, we're managing and running the company for the year

and for the long-term. and the fundamentals are still intact. >> langone is here. you own some lilly. >> i own some lilly. >> you want to -- >> what's there to say? >> ken is saying that just in general, not just here but around the world that, it's just -- we're all used to it now. we're used to slower growth. and there's scary things in terms of demographics and aging and technology and all these things that make it a slow-growth world. you know, we should be making more progress for people that need it. right, john? do you see it that way in terms of the tepid growth globally? >> well, i think that i would agree with that ken said earlier. i don't think we're sitting right now in the middle of a strong economy. clearly, you know, we'd all like to see that growth rate edge up a couple of percentage points

when that growth rate is higher obviously it gives consumers and government payers obviously outside the u.s., most of the people outside the product or governments the wherewithal to provide the health care that our company presents. we indirectly feel that. >> ken looks like he lost some money or something. it'll come back. >> a little bit. it's okay. i'll survive. >> john, thank you. we appreciate it. i've never seen him at a loss for words. anyway, thanks, john. coming up, much more from ken langone i have no doubt. plus netflix could be looking at a new behemoth of a rival if the at&t/time warner deal is allowed to go through. julia boorstin spoke to ceo reed hastings about it. his comments straight ahead. "squawk box" will be right back.

among the stories front and center, we're watching shares of under armour in premarket trading. revenue above estimates although profit estimates were slightly short of forecast. premarket shows lower by 3%. here's something to keep in mind with apple.

reports the worldwide smartwatch market fell 51.6% in the third quarter from a year ago. apple introduced a new version of its watch even though it was only available for the last two weeks of the quarter. ipm has issued an apology to the government which shut down a national census. the government is blaming two domestic internet service providers for the lapse in the security. breaking news from general motors. the quarterly results just hitting the wires. phil lebeau joins us with the numbers. >> a beat and a big beat by general motors in the third quarter. listen to these numbers. this was a record quarter for general motors on the earnings gm beat the strit earning $1.72 a share above expectations which were $1.45. revenue also up coming in at $42.8 billion. the estimate was for 39$39.2

billi billion. the pretext profit with total margins of 8.3% and in north america the margins coming in at 11.2%. guys, that is four out of the last five quarters where they have had margins north of 10% which was the target. and you can thank the strategy that's been working for them which is trucks, suvs, crossovers. they're red hot and they're sticking it on the retail side with average transaction price coming in at $36,000 -- almost $36,000. that's about $5,000 above the industry estimate. or the industry average, i should point out. when you break down the regions, north america $3.5 billion is what they made. they made $500 million in china. $200 million from financial. and quickly, guys, no change in the guidance from general motors. but what's interesting is when you look at this stock, guys. generally speaking, gm and ford trade in tandem.

ford was out with comments not too long ago saying we're going to be guiding back a little bit in terms of expectations for 2017. and when you look at general motors, starting to split and move away from ford because we're not seeing that with gm. no change in guidance and these are really strong numbers for the third quarters. don't forget. the cfo will be talking with us first on cnbc coming up in about 20 minutes. guys, back to you. >> all right, phil. this is going to play right into what you're saying. that's caterpillar. reported 85 cents a share down from a year ago. that was above expectations of 76 cents but the stock is down because the revenue number was quite a bit lower than expectations. 9.1 -- i'm sorry. $9.2 billion and expectations were almost $10 billion i think.

$9.867 billion. and doug, his his last quarter. >> right. and i think he did a hell of a job. >> economic weakness throughout much of the world persists. as a result most of our end markets remain challenges. in north america the market has an abundance of used construction equipment. they have idle locomotives and idle mining trucks. a few bright spots. construction industry and machine market position improved in china. but they didn't say anything about here. and commodity prices have stabilized. >> but here's an example of technology. last monday i had a great day. i operated a backhoe out there. you know it's a big machine. >> uh-huh. >> they now have the technology that literally, for example, if you need a trench two feet deep,

a bucket can't go below that. gps. the technology that's coming, they have mining trucks that are driverless. by the way, i learned something. woman operators of those big operating trucks are better respected than men because they're not as aggressive. isn't that interesting? >> careful, all those comparisons get you in trouble. dude. >> if you ever ran for president, you'd make trump look like an altar boy. >> what did i just say bad? >> i don't think it's bad. but certain parts of the political spectrum hate to acknowledge there are differences between men and women. >> you know what? they have dirty minds. okay? >> no, no. you're stereotyping. >> no, i'm not. >> you are. and i don't appreciate it at all. >> i expect that from my c orkc buddy. not you. >> i could not operate a

backhoe. >> what i'm saying to you is the technology being driven through the companies and what they're doing is spectacular. but over the long-term we've got to -- >> your point was with that big thing -- so you don't want to go too deep. so it goes exactly two feet down. that's kind of cool. g gps. that's amazing. >> your productivity goes up because you get it right the first time. there's so many wonderful things going on. we're going to have to -- >> they let you in a backhoe though? >> i got pictures of it. i operated a d-11. >> alone? >> no. they had a guy up there. >> all right. god is your co-pilot. i would have someone in there with you. >> here is the reason you want to be excited in america. see a company like caterpillar. >> you just said things are terrible. why would i -- >> because in the next 25 years when i'm not here, america owns the world. it's ours. no matter how much our politicians screw up, they can't stop the inevitability of where we're going to be.

okay? and look at -- >> to a globalist, this is very threatening. andrew, is this good or bad? >> you go out -- for example -- >> i want everybody equal. >> the simplicity of operating these behemoths is unbelievable. no more steering wheels. you got a -- >> digital pad right? >> you got a tv camera there and all these things. and all i'm saying is these people are spending serious money on improving what they do. and it's going to innert the growth. we have to get through this insanity of government regulation. >> being partisan. and you're very nationalistic. by now you should know it takes a village. big village. >> i want my village to be in america, okay? >> oh, boy. >> okay. when we return, more from the great ken langone from the economy to education to the race for the white house.

we have not really touched on politics though. sort of in a subtle way. we got more. plus home depot's big power deal. "squawk" returns in a moment. before taking his team to state for the first time... gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra.

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big telecom and media deal of the week.

at&t buying time warner for $85 billion. netflix's ceo reed hastings shares his thoughts with our julia boorstin yesterday. >> it's hard to tell. it's very early. we didn't know anything about it. we're just sorting through it. you know, for sure we want to make it so that we want to require for at&t customers that hbo and netflix are treated the same. now, that they're going to own hbo we think that any special treatment for hbo data would be inappropriate. but i think that's pretty basic. >> besides those concerns, hastings says he's not bothered by the deal as long as hbo and netflix are treat ed the same. but later he said, quote, that was not a no. i don't know what we should take away from that. meantime, coming up when we return, a power deal that would help home depot keep its lights

on. southern company deploying to home depot stores. as we head to break, take a look at 3m. it lowered the top end of its full-year forecast. and you're seeing that stock down a little over 1.5% in premarket. back in a moment. let's get

host ken langone. and cofounder of home depot. we might as well have had the cameras rolling for the break. it's not like you haven't been on before talking about education. but i guess just to summarize in your view, we need to fix this and it's going to be a long-term endeavor. >> it isn't going to be fixed overnight. >> but that in your view this is something you've always been passionate about. >> this is education. >> and you're going to say i don't want to get partisan, but then you're going to say until we break the teachers unions, until we understand you need charter schools. then you're going to get partisan. but do we spend more money? do we throw more money at it? >> no. >> what do we do? >> the department of education

was founded by jimmy carter '78. the chart showing the money that's spent goes like that. the chart showing the results goes in the opposite direction. >> right. >> now, we are -- there's 30 developed nations in the world. we spend more money per student of all those 30 countries. we rank 28 out of 30 in results. we're spending the money. we are spending the money. i have the governor of massachusetts in my office last night. by the way -- and i gave him a check because i believe in this. there's a referendum on the ballot this time, more charter schools. jeff was at the meeting last night. we know one thing. if we don't improve the quality of education in america, we're not going to solve our long-term economic needs and challenges. not. why am i passionate? i'm simple. my mother went to the seventh grade. my father went to the eighth grade. my mother was a cafeteria

worker. my father was a plumber. here i am today. what was the difference? i got a fabulous education in a wonderful public school system out in alolong island. >> where they have tax dollars and money. >> i didn't know if they had money or not. all i know is i got a great education. and i went off to -- i know i'm only here this morning because of the benefit of a good education. >> but you didn't go to a charter school. the reason they worry about charter schools is because -- >> there were no charter schools then. >> i know. but you got the public school education. that's why people against charter schools say we got to fix -- that takes your eye off fixing public education. >> but the public education is getting worse, not better. >> what do we need to do there if it's not money? >> we need to get more aggressive and more -- >> by the way, charter schools are publicly funded. >> what about the unions? don't you have to break the unions to make this happen? >> yeah, you got to break the unions. of course you got to break them.

not break them. my mike is off. where the hell does it go? >> i got it. that's just your ear piece. you're fine. >> that's where it becomes political low pressu political. the schools are for the adults not the children. that's the tragedy of america. if i was obama, if i was president obama i'd say eight years ago i'm going to be remembered as the guy that went to the white house that turned education around in america. and i'm going to help the poor kids many of them minorities but there's also poor white kids. you go to the south, go down to north carolina. there are schools down there that -- >> it was supposed to. remember? arnie duncan was the one guy in the cabinet that i thought after his experience in new orleans, his belief in charter schools that this was going to happen. and -- gone. gone. >> look at what's happened. these poor kids deserve better. we need kids today that are in the first grade that one day are going to found a home depot.

>> how would you do it, ken? the teachers unions elect the democrats. then they know they need the unions again to get elected. you can't break the cycle. >> the >> if you can't do that -- >> how do you break it? >> if you've got financial resources, put them in a catholic school, hebrew school, wherever you want but get them the hell out of the public schools because they're not going to get an education. wealthy people many manhattan do not send their children to public schools. that's the proof of the pudding. these kids deserve to be helped. i don't want to make it political. i don't want to blame this one or that one. i say let's fix it. >> trying to fix something without getting political about it. it's impossible. i know you don't want to do that. >> i know this much. i'd rather be on the side of not defending the teachers right now because they're indefensible in

my opinion. >> teachers union. >> not teachers. >> believe me, there's wonderful dedicated teachers out there. talk to a qualified and dedicated public school teachers, one of their problems is discipline. why? you can't discipline kids. i'm not talking about smacking the kid. i'm talking about doing something to the kid so you don't disrupt the classroom for the other kids. our charter schools, we will not tolerate a behavioral pattern that's a pattern. if a kid's disruptive say we're trying to help your kid, we can't risk the other kids' education. >> you're cherry picking then. you're only allowing the good kids in. so all the bad kids go back to public school. >> well, guess what. we'll defend that position every day of the week. >> let me ask you a different question. the teachers and the teachers unions, let's just put it on the unions. like we said there's great teachers. but the argument they would make is this ultimately starts at

home. you need a parent who wants their kid to succeed. >> okay. so -- >> and that there are parents unfortunately that are either not in a position to help their kids the way you would want them to or frankly don't have the wherewithal to do it. >> all right. the teachers say our problem is not us. these kids, we have no support at home. i turn that around. because they have no support at home, we expect more from you. you've got to do more. >> and if you don't -- >> okay? these poor kids, they didn't -- >> they grow up to be better parents. that's the thing. the parents are -- that's not going to work. >> we got to help these kids. >> i won't debate this one because i actually am a big fan of charter schools. >> you basically refuted the idea that since not everyone -- there's not enough charter schools around so to fix this we need to fix the public schools. you're saying take kids out of the public schools and go to charter school. >> you're doing it to force the

issue. >> no. i'm doing it to educate the kid. the kid should not be a token. we should do everything we can for that poor kid. if we can get them started in education. >> charter schools are public schools. they are paid for by public funds. >> you know what the problem is? we are much more aggressive in evaluating our instructional staff. if somebody doesn't cut it, they're gone. >> public funds with metrics opposed to what happens in regular public schools. >> let me tell you what you want to do one day in school. get jeff cantor on. >> he's been on. i think stan brought him on, right? >> either way, a the guys there, if we're going to move the needle on education it's going to be stanley and jeff. we have got to help these kids. >> dan is big too. >> this is the thing that irks me. people take shots at the hedge funds. think of the good that the hedge

funds have done in this city. look at robin hood. look at promise academy. >> they're just doing it to make up for all the terrible things they do in society. you know how that goes. that's what they say. you know that's what they say. you just do that because you feel bad about all the other stuff. >> i'm not a hedge fund, number one. i'd like to consider myself a good investor. at the peak season, home depot will have over 450,000 employees. during the regular season we have 360,000 people. we have over 3,000 kids who started in the parking lot barely out of high school that are multimillionaires today. now, if that's not capitalism, i don't know what it is. >> that's fantastic. >> and go talk to these people. we don't pay minimum wage. we give them benefits. they have a bonus plan. the point i'm making is it all

begins by giving the kids the basic tools they need to at least get into the cycle. >> i agree. we all do. but here we are. eight years later, nothing. right? >> yes. you're right. and on that basis, i think he's a failed presidency. okay? >> but obamacare. much more from ken throughout the show. coming up gm cfo chuck stevens talks quarterly results and the state of the auto industry. check out the stock ahead. it's up 41 cents. "squawk box" will be right back.

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coming up, former fcc chairman reed hunt on this week's merger. going to talk to us. also a wrapup of this week's earnings reports. and also more with ken langone. the futures right now, take a quick look. s&p 500 up marginally about a point. "squawk" back in a moment. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition! yeah. well, we gotta hand it thto fedex. glasses. they've helped make our e-commerce so easy, and now we're getting all kinds of new customers.

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earningspalooza. six dow components rolling out results this morning. we have a rundown of the numbers and the market reaction. a cnbc exclusive. netflix ceo reed hastings gives a nod of approval to the at at&t/time warner merger. and a modern day beer run. the final hour of "squawk box" begins right now. ♪ live from the most pufrl ci -- powerful city in the world, is new york city, this is "squawk box." >> welcome back to "squawk box"

here on cnbc. i'm joe kernen along with andrew ross sorkin and michelle caruso-cabrera. the line in that song is funny. what is it? when i drink by myself, i like to drink alone. anyway. up -- that could mean that you could be by yourself in a bar or have other people around. or if you're drinking about yourself, you could be totally alone. >> what you don't want to do is drink and drive ever. which gets us to general motors. >> wow. that was good. that was a stretch. >> that's a segue. phil lebeau is back and has a special guest. phil? >> thank you, michelle. let's bring in chuck stevens from the headquarters at general motors in detroit. chuck is the cfo for general motors. you guys beat the streak by a wide margin on the top and bottom line. this is much, much higher than expected. >> when i look at our performance versus consensus, pretty broad based.

we had good performance in all of the automotive segments. but obviously the biggest driver was north america and another record quarter here. >> at the same time and i don't expect you to answer for ford. but in the past couple of weeks ford said we're going to trim our protection. we're seeing headwinds in the market. we're bringing down our guidance for 2017. we're not seeing any of that from you. so why the split here? why is it that you're seeing continued strength in this market particularly with trucks and suvs? >> well, i'm going to speak for general motors, obviously. and we're running a different play. we're very, very focused on driving retail business. focused on improving on north america. grown our calendar year to date by half a percentage point. our transaction prices continue to improve on the strength of

our products. and actually we're quite excited about our launch cadence when you think over the next 12 to 18 months and fundamentally refreshing our entire crassover portfolio. we're very optimistic about continuing to drive strong performance here in north america. even in a plateaued environment. >> and that brings up my last quick. are you noticing any slowdown at all in terms of the retail buyer? the guy going out to the dealerships? do you expect this to stay at the level it's at for the industry overall? >> yeah. our view right now from a light industry perspective, phil, is we'll finish this year somewhere in the low to mid-17 million range and we expect to see that for the foreseeable future from the fundamentals of the industry perspective. for october our expectations are the industry from a light standpoint is going to run in the high $17 million range. so we continue to see strength

as expected. and we're going to take advantage of that with our great products and launch cadence. >> chuck stevens joining us from gm in detroit on a day they beat the street by a wide margin. i've been reporting earnings for years and i don't remember the last time i saw this by 20 cents per share. usually analysts have a better sense of things. >> great historical context for us there, phil. appreciate it. beyond general motors, there are six dow components out with earnings this morning. caterpillar stock is off by more than 2% in premarket trading. 3m earnings topping wall street consensus by a penny. revenues were in line but the company on the top end. stock lower by 1% in the premarket. procter & gamble beating the

streets. cfo jon moeller joining us this morning. >> we've got some tougher comps ahead of us. we're managing through a lot of geopolitical and economic die kna -- dynamics. of course our competition doesn't stand still. but 2% will be up versus last year. we hope by the end of the year will be improving beyond that. >> and p&g is higher. of the dow components out with quarterly results this morning, merck results topping consensus. the drug company also raising its 2016 outlook with cancer drug with -- i don't know. contributing to success. and then beating estimates by 10 cents. conglomerate raising organic sales outlook. and dupont coming in better than

expected. the chemical maker raising full year forecast. >> doing some job here. >> who's that? >> ed. >> and the company's results were helped by expanding sales and profit margins. >> over and over again. >> over and over. talk about a great operator. >> right. one more thought. we talk about education. and i'm biased about jpmorgan. i'm a big investor. what jamie has done with pay voluntarily, we've got to address income inequality in america. if the government does it. redistribution or evolution. we've got to recognize that people can't live on $300 a week in this country. they can't. >> that's why you fix education. yeah. but also until you fix education, they got to pay their rent, got to eat. you try to get growth. you also need confidence and a management team that -- what i

was impressed with last week. i walked through the whole plan. my heart break was i found out five years ago this kid worked for home depot. he's now walking me through this huge plant. i'm thinking to myself, look at the -- and by the way, cat, i think they pay them at least 14 bucks an hour. so they're there. >> but you can't price yourself out of -- >> they're not pricing out. >> okay dpop $50 an hour then. there's an upper limit on what they can do. but the best way to do it is to have demand for skilled labor caused by the growth in the economy where everything's percolating. >> i tell my kids -- >> you're not saying that. you're saying something else. >> i got a headache with this guy. >> usually it's with me. >> i like it. >> look. the thing i wish for is the kids in our charter schools don't

need affirmative action. that there'll be people waiting in line to hire them because they're going to contribute to the prosperity and success of the businesses. >> but you understand what a nationwide $15 an hour minimum wage -- you know how that would be to everything we're trying to do. sounds good to the liberals on the front end. they never connect the dots to they are effects of -- >> joe, i didn't say $50 but -- >> i know you didn't. >> we move towards it over a period of time. what's the federal minimum wage? >> federal minimum wage is zero when you price people out of the job market. >> we agree. we agree. but enlightened management -- >> look at this. i don't have to say anything. you know what? can we -- >> here's what communists do. they get us going at each other. >> i'm enjoying all this. >> cool as a cucumber. >> we got to talk politics and business right now about a deal -- maybe you'll have a comment about how you feel about

this deal. now to the intersection of politics and business. planning a hearing to discuss the pros and cons of that big at&t and time warner merger. donald trump said if elected president, he won't allow the deal to go through. at&t randall stevenson addressed government's decisions about the deal on "squawk" yesterday. >> this has none of that. there are no competitors being taken out of the marketplace. nowhere. we're not changing how the content is made available to other customers and distributors. this is a pure vertical integration. while regulators will often time have concerns with vertical integrations, those are always remedied by conditions imposed on the merger. that's how we envisioned this to play out. >> exactly what are the laws in place right now and how does that work in all this? let's turn now to the former fcc chairman reed hunt. good morning to you. >> good morning to you.

>> help us understand how you think the government is going to approach this both from the fcc perspective to the degree you think they're going to have any authority over this. and maybe doj or ftc. >> i think doj and fcc. but two weeks from today we have to decide who's president. donald trump said he would stop the merger if he was the president. >> can he do that single happen handedly? >> one of the bills of impeachment from mix son was from the office he interfered with emergenciers. this is donald trump having a unique vee about how our system works. if he is not elected, hillary clinton has also said she would do what's normal and that she would have the regulators take a tough look at it. and that would mean the fcc -- well, it would mean the fcc and the department of justice. >> but i'm making you the regulatory king for the day. what is your position on this

transaction? >> well, the fcc chairman gets to be a co-king or co-queen because the role here is shared with the department of justice. the deal has to get through both of those agencies. i assume that the way they would look at it is the way they looked at comcast and nbc universal. right? which is the similar structure. that was a deal that was of course approved with an awful lot of conditions. >> so you expect this deal to go through with conditions. and is that what you're saying? >> i'm saying that's the way they would look at it. the interesting question here is to me what the is net neutrality? it's a new principle that goes to those that don't exist. the previous deal, the comcast deal. and net neutrality, whether it's the broadband cable company or

wireless company, is supposed to treat all content in a non-discriminatory fashion. not give advantage to one body of content opposed to another. >> handicap this for us. investors in at&t and time warner yesterday were calling their lawyers and consultants saying can this transaction be approved? if they called you, you would say what? >> it depends on what conditions the parties are willing to embrace. yesterday maybe this morning i read -- i saw on your show that reed hastings of netflix said that the deal was okay with him as long as he was treated fairly. this is like donald trump saying i'll abide by the results of the election if i think they're fair. so it depends on what reed hastings and netflix thinks are the fair conditions. hard to know. >> you've heard people in washington say that they look at the comcast/nbc transaction not necessarily regretfully, but that there seems to be a newfound concern after the fact. is that right?

>> i don't know that people think that. depends on who we're talking about. i will say this. the two top people in the anti-trust division at the department of justice are very, very experienced in all of the recent mergers approved and disapproved that have involved at&t and the wireless companies. if they stay -- if hillary is elected and they stay in the office, you will see people following the precedence that were set in the previous reviews. one of them was the approval of comcast and nbc. but with a lot of tough conditions. >> so you think they should follow that. okay. >> can you go back to the nixon thing? i didn't quite get it. how is this related to the current topic? >> there were many charges in the articles that came out of the house. but one of them was that he had improperly interfered with a merger review. i'm just saying presidents aren't supposed to do that. >> so it could be grounds for

impeachment if donald trump were to win and -- >> first we have to imagine that he's elected. second we have to imagine that he meant what he said. >> nixon was charged. that didn't mean he did it. >> that's a different point altogether, right? >> i understand. but this is how things get -- oh, he did that. he did -- stop it. >> i think he's making the point if donald trump did it -- if if if. >> that's me point i'm making. >> if we look at the stock market now, investors are betting this transaction did no better than a 50/50. you're saying you believe this goes through with conditions? >> it depends on what conditions the parties are willing to accept and what conditions -- >> but if there's no exclusivity on the content, no zero caps meaning data caps related to the content. those are the obvious ones. is there something else we're not thinking about? >> here's a question for you. suppose at&t wanted to use

what's called zero rating. meaning had you buy the at&t wireless phone and have all the data that includes hbo that you want. something distinctive about an at&t wireless service. will the regulators think that a with net neutrality? that's an unresolved question. and i note here that the breakup fee is not very large. so if at&t doesn't like it, they can walk away without paying an arm and a leg. >> you mind telling the s.e.c. chairman on was to do was ground for any type of action? >> no and that's an interesting point you make. because as long as the statements from the executive branch are public and filed, that is perfectly consistent with our practice. it's picking up the phone and ordering the department of justice to file a lawsuit, that's inappropriate. >> reed, can you help us with one last thing? maybe you haven't seen it.

when you think about the comcast/nbc deal, is there anything that people in washington look at and say that there was something they want to apply from that -- lesson from that they would want to apply to this? is there something else there we're not talking about? >> one of the essential aspects of that deal is what i would call the precursor of net neutrality. it was to make sure comcast treated content in a non-discriminatory manner. this general principal that we now call net neutrality. the comcast deal expeers i think in 2018. but the net neutrality principle. at least it would under a clinton presidency. coming up, we are just two weeks away from election. an unlikely candidate is surging in utah, a state that's voted

republican for the last many years. evan mcmullin will join us after the break.

as a supervisor at pg&e, it's my job to protect public safety, keeping the power lines clear, while also protecting the environment. the natural world is a beautiful thing, the work that we do helps us protect it.

public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california. two weeks until election day, hillary clinton is moving ahead of donald trump in the

polls. and in the reliably republican state of utah, another candidate has emerged as a favorite. let's bring in evan mcmullin, an independent for president and native of utah. he joins us now from jackson hole, wyoming. good to have you here. we're having you on not because we think you can eventually win the presidency but because you are rising in the polls enough in utah that there's a threat that some of those electoral votes don't go to the republican but go to you. good morning. >> good morning. thanks for having me. yes. we're excited about the traction that we've been able to generate in utah. we're seeing that spill over into other mountain west states. i'm in wyoming now. we spent some time in idaho recently. we're just going to push as hard as we can for the next couple of weeks. but we're excited about what we have seen. >> it's going to be a really tough electoral race, obviously. donald trump is behind on that front. what do you say to republicans who might be watching right now saying really?

for all his plflaws, if his vot don't go to him it's that much harder for him to beat hillary clinton. >> he's not going to beat hillary clinton unless something dramatic and incredible happens. he's down in all of the electoral college projections. that's why i and my running mate said not to choose donald trump he had no chance against hillary clinton. and that's the reality. >> god bless you, but -- >> hey, if you want to ignore the polls. if you want to ignore the polls, that's fine. but they're pretty clear. >> then let's not have the election. that's just absurd. at brexit it was 52-48. when it came out, it was 52-48 the other way. it's likely you're right, but -- okay go ahead. interrupt me. >> you're talking about a popular vote. >> i'm not talking about a popular vote. >> i'm talking about the

projections in the electoral college. you can deny that all you want like the trump supporters. >> look, you're taking votes away from the republican and you're making it harder to stop hillary clinton. just -- you know, you can say what you are. you don't have to make up that the election is over. >> i'm taking votes away from donald trump? he might be the republican. he's no conservative. this guy wants to grow the size of the federal government. he wants single payer health care. east always been in favor of late term abortions. he doesn't support the second amendment. he wants to increase the size of the national debt. >> evan, this is ken langone here. i commend you for getting into the process. i think the more people we have involved, the better we are over the long-term. that said, all the things you said about trump which i may agree or not agree with, doesn't matter -- >> they're true. it's a fact. >> hold it. the message to me is -- >> donald trump said so. >> whatever his percentage is, say it's 45% of the vote. if we don't understand what the meaning of that vote is, not

trump but the american people. because if he's as bad as you said he is and that many people vote for him, you have to ask yourself the question what do we need to do for the american people to become united again? because you're making the point that's most important of all. the american people are angry. they're fed up. they've been disappointed. they've been misled. all those things. forget about whether the democrats or republicans did it. the big issue is what do we read into the results of this election? if hillary wins 55-45, i contend america lost. we didn't win. we lost. >> well, i would certainly agree with you. look, i think the kind of leadership we need in this country is leadership that will return power to the states. there's too much power concentrated in washington, d.c. that ends up meaning that the 330 million of us fight over the decisions that are made there. big corporation dollars fight

over the decisions, chase those decisions there. it breeds corruption. we've got a government that believes it's unaccountable to the american people. we've got to return power to the states. that's how our founders envisioned this. they understood we would have a diverse country. and we've got to return power to the states. that'll solve a lot of our problems. mainly government accountability -- >> how do you feel about term limits, evan? >> i support them. but what office are you talking about? but in general, i support them. >> for the house. we have it for the presidency now. for the house and senate. >> i support them. >> you can throw all the rocks you want at trump, but the remarks he made about limiting lobbying in washington and restrictions on who can lobby and when, that's all part of the whole package. we need to fix this. >> well, that's certainly true. and i support term limits, but i'm sorry. you're talking about -- that's hardly an excuse for donald trump's candidacy which has been a bigoting misogynistic zeno

onphobic race. he's not president and he's still divided this country. he's done enormous harm to our country even as a candidate. he's not somebody who respects our system. he doesn't understand the division of powers. he visited us in congress and he claimed his support for parts of the constitution that don't even exist. this is the kind of guy he is. >> evan, thanks for joining us this morning. we appreciate it. see you later. >> he doesn't get it. coming up, netflix ceo reed hastings is speaking out on that at&t and time warner merger. we'll bring you his thoughts on the deal and what he said about t the speculation of an apple takeover. julia boorstin interviewed with

him. >> what is your favorite show on netflix? >> "the crown." it's just amazing. the scenes between churchill and queen elizabeth is amazing. >> shows not on netflix? >> "silicon valley." is my favorite not on netflix. 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. not just insured. chubb insured.

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busy morning for corporate earnings. eli lil i missing forecasts. we did talk to the company's ceo john lechleiter. he joins us in the last hour. >> i think the key story is volume growth of our new products, our newly launched products. we've had seven approvals since 2014. we're up 7%. when i look at the fundamentals of the business, they haven't changed. i think quarter to quarter you see some fluctuation, but we're confident for the year. >> under armour earnings beating estimates. however, profit margins did fall from a year ago and the shares are now down 12%, 13% on the session. kevin plank, young guy. >> like it even more right now. >> take on nike.

yeah. visa revenue tops estimates. seeing notable contributions from its acquisition of visa europe as well as increased spending by its customers. however, 2017 earnings revenue and guidance was somewhat shy of forecasts. stock down marginally. check this out. a high-technology beer run. an anheuser-busch delivery truck in colorado made the first autonomous drive shipment in the u.s. last week. the beer company worked with otto, an uber subsidiary working on self-driving delivery trucks. colorado to another location in the state. uber bought self-driving truck start-up otto back in august. >> we were saying talking about jobs, this is where -- >> these are high paying jobs too. >> they are. but did you watch the video there? just watching from here was disconcerting. the guy gets up out of the driver's seat and walks to the

back of the truck. if you were riding in the truck -- i felt weird just watching it happen right there. i feel less weird in a car. that thing -- >> there'll be fewer car accidents, more regulation. >> that's so weird. get back there. sorry. but you're right. there's a lot of -- >> right now there's a shortage of drivers. and these are high paying jobs. >> different story very soon. >> well, depends on the run, of course. or a husband and wife team. they can make $120,000 a year. a lot of money. back to the big story of the morning. we're talking a bit about the time warner transaction. netflix may have blown away wall street with better than expected earnings but a streaming video giant could be faced with competition. julia boorstin joins us. >> reporter: well, hastings has

managed to keep up netflix's growth despite a wave of competitors including amazon ramping up expanding in the space. but with giant at&t teaming up with time warner -- with netflix's long-time rival time warner with hbo, i asked hastings what this means for netflix. >> it's hard to tell. it's very early. we're just sorting through it. for sure we want to make it that with ept to require that for at&t customers that hbo and netflix are treated the same. now that they're going to own hbo, we think any special treatment for hbo data would be inappropriate. but i think that's pretty basic. >> are there any other requirements -- conditions that you'd advocate for with regulators? >> we're just starting to look. we'll give it a couple of months and sort through it.

>> but is this going to be a negative for netflix in terms of more competition having more ammunition for its over the top services? >> could be a lot of that. has a lot of at&t investment and content. that could make things tougher. on the other hand, it's probably going to get easier to recruit time warner executives which are a talented bunch. you've got some puts and calls. >> you've been the subject of m&a yourself. at what rice would you sell netflix to apple? >> that's a question i wouldn't want to speculate on. >> but do you think something is going on in terms of technology companies wanting meeting assets. >> i don't see a lot happening, but you can never know. we've been public for 14 years. our stock's up almost a hundred fold in that 14 years. we've done pretty well for shareholders. and we're pretty invested and trying to keep that going. >> what about disney?

>> all we do a focus on how we do great shows, how we grow our business. again, that's what made us successful for the -- we don't do bankers meetings. we're old school in that way. let's just bald great service and it's done well for our shareholders. >> reporter: we'll have more from hastings including why he's not scared of competition and why he doesn't think netflix is overpaying on content. more coming up on "squawk alley." >> before you go, hold on. there was one comment i did see in writing was that you asked about time warner whether he'd want to make a bid for time warner. and he said skip the question. that was not a no. >> reporter: that was a comment he made on stage with "the wall street journal." he made it clear to me they're not taking m&a deals.

to me that was more of a joke about the fact thattime warner and netflix have been these long-time rivals. we have to remember that ceo of time warner had called reed hastings a 300 pound chimp compared to their 800 pound gorilla. hastings has always been very flattering and very complimentary to what time warner does. and what hbo does in content. >> one more question. if you remember on the comcast transaction with time warner cable, originally it looked like -- remember, there was like a brief deal where netflix looked like they were going to be friends with the deal. then turned the thorn in the side of that transaction. what do you think the chances are that he's acting sort of nice about this now. but later he's going to turn on them? >> reporter: well the deal he

really took issue with was the time warner cable reaction list. >> look. he made it very clear that this is going to be a months' long process of evaluating the deal for netflix. he's going to demand that neutrality and being treated equally. he's trying to start off nice because he doesn't want to come out guns blazing so early in the process. but i think it's possible if he gets what he wants. in terms of being treated fairly and being treated equally. that he's not going to shut it down. >> thanks, julia. coming up with , a new powe. bloom energy that has customers like home depot. we'll talk to ceos of both companies plus the cfo of home depot. ♪ it's been over 100 years since the first stock index was created, as a benchmark for average.

♪ yet a lot of people still build portfolios with strategies that just track the benchmarks. ♪ but investing isn't about achieving average. it's about achieving goals. ♪ and invesco believes doing that today requires the art and expertise of high-conviction investing. ♪ translation? why invest in average? now that fedex has helped us 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.

southern company and bloom -- >> guys, we're doing a show here. >> southern company and bloom energy announcing today a strategic alliance to expand distributed power generation through fuel cell technology. the alliance hopes to draw in some more large scale commercial and industrial customers like home depot who's been working

with bloom energy since 2014. and joining us now on set, southern company chairman president and ceo tom fanning. bloom energy founder chairman and ceokadar stredar. who can explain b this best first? >> i'll taic the first shot. >> okay. you take the first shot. >> it is absolutely clear that the model is changing. because technology is enabling it, customers are requiring it. especially for high resistancy. and what we're doing is linking up with one of the technology leaders in the field combining that technology with our broader set of infrastructure. i think it has tremendous potential.

>> carol, i was afraid to call you marisa tomei because it has an "i." but it is tomae. >> we're thrilled with our relationship with bloom energy. we have powered cells as well as powering our forklifts in two of our distribution centers. we look at the value of these fuel cells in different ways. first br we have them installed we see our electricity costs are 15% to 20% less than they would be if we bought off the grid. then sustainability. because the fuel cells take natural gas and convert it to electricity without combustion, we see lower levels of carbon dioxide emissions. forecast, since 2014 our carbon dioxide emissions have been reduced. that's 4800 cars removed off the

road. so we're thrilled. >> can i go to something basic here? >> yes. >> you sell a product that home depot puts in its stores physically somewhere. you've connected with it to help do this. >> this is all about customer requirement. >> it doesn't take a rocket scientist to do this, but you're a rocket scientist. so it might help. >> it is rocket science in the box. what it is for the customer is very good. very simply just like computers after a point customized for business. how telecom customize for businesses. for the first time we're bringing customization. look for the need of a particular business. for electricity. so what we do is not only do we put our box and provide electricity to home depot where for the next 15 years their predictability on cost, lower

carbon footprint not just because of co2 but because we don't burn natural gas. >> i hear predictability of cost, lower costs? >> yes. >> here's the other big thing. we talked about big technology drivers in this industry. never been able to store electricity. we're combining for a storage device. that gives you reliability that is just crazy. >> it's working right now? >> absolutely. i guess we're going to go 60 with home depot. >> we're going 60 with home depot. but we have 30 megawatts for a large hospital customer. >> you didn't know that? they didn't clear that with you? >> well, i'd like them to come up to nyu and talk to us. >> you charge by megawatt? is that how it works? >> yeah. we just charge them for what they buy. it is a per power purchase agreement. we charge them less than the grid. and our escalator year over year

is less. >> i don't know what that means. >> decrease in cost year over year. >> the customers procure their own fuel. >> this to me has other meaning and that's the home depot management. by the way, in the spirit of full disclosure, i'm a major, major stoke hockholder. this management team at home depot today is the best this company has ever had. >> frank was the best. >> frank -- >> former board member. >> was he the best or this guy? you say this all the time. >> it always gets better. and all i can -- but that's the testimony to the early management these people have been put in place. darryl, you let everything know if you can hear me -- for the first four years -- >> i'm kidding. i'm kidding. go back to the question. it was a joke.

go back to carol. >> carol and this team here, everybody, this is the best this company's ever been run in its entire time. >> i have an energy question for you. we talk all the time here about elon musk and the idea of what he's doing with batteries. i just want to understand whether you think that what your view is of what he's doing. >> look. they serve a completely different segment than what we serve. so look at what we do. a large home depot store, a hospital. you know, headquarters building of morgan stanley. you cannot put solar on the roof and enough batteries to be able to power those buildings. >> right. >> so that's what we do. unlike what we did in the past -- >> i have a tesla power wall in my office. >> you have a what? >> he's trying to get into the storage business. >> i have a tesla wall in my home. but what makes this unique is

the storage device isn't so much about the lithium ion battery. the better angle is the switching equipment around it so there is instantaneous pickup when you have a problem on the generation. it's really the switching technology. >> you talk about this fluidness of delivery. >> you think about this is here is what happens. during the night you're not going to be using as much power. you can bank that seamlessly into a battery technology that's smart that power secure brings to the table. during the day when the ac is running and the lights are on and everybody's coming in and out, you can shave that power off, using the power that you banked in the night. use it during the day. and you can smooth that out. peak versus non-peak. you do this all with combined architecture of what bloom brings to the platform and an infrastructure they bring as power savings put together.

very, very different play than a home situation where you'll have a solar panel. >> got it. >> but you run the batteries at night. >> would you be long or short solar city? >> short. >> you don't like that business? >> no. >> you like it? >> i'm going to stay out of that. >> we had first solar here. solar and scale makes sense much more. >> thanks. >> thanks, carol. >> thank you. coming up when we return, today's top stories and check out shares of under armour down sharply after the sports apparel company reported earnings. profit margins down from a year ago. we love kevin plank. he will be on the half-time report tomorrow. "squawk" returns in just one moem moment.

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coming up next, we're going to head down to the new york stock exchange. jim cramer will weigh in on all the news of today and the big earnings parade. don't move, because that's next.

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let's get down to the new york stock exchange. jim cramer joins us now. jim, you know what's reported today, so i figure something's got you fired up. which of the 20 or 30 that you've seen? >> tremendous, tremendous turn by ed breen at dupont. fabulous growth from proctor. the organic growth of both these places really kind of stunning in light of how weak so many other companies are. under armour talking about unplanned investments to keep

their growth up. certainly don't want to hear that. unplanned investments. we want planned investments that don't require that to keep the growth up. i think gm is probably being sold down more than it should be, but then again i think the stock has outperformed ford so maybe people just taking some profits. i like this proctor, i like this dupont. these are remarkable quarters from old line companies with very energized managements. >> so that was it, huh? ken, we were looking at ua. so unplanned -- what does that even mean? >> unplanned investments to maintain the growth which they cut from 22% to 20%. i love ken. i love blake so much, i just feel bad for blake because you know that he put this team together and that's one of the better guys. >> look, frank was fabulous and frank did a hell of a job, but i'd have to be totally objective in saying what i see happening in this company right now. they're the very best. the best they have ever had. >> i guess i love frank so

much -- >> i do too. i have a statue of frank in my backyard, that's how much i love frank. i'll send you a copy, okay? >> all right, thank you very much. >> good to see you, jimmy. >> not one of those greek-type statues. >> no. >> i was just wondering how deep this man love -- >> all right. i don't know. >> i'm serious, with that team down there now, they're unbelievable, they really are unbelievable. coming up on "squawk on the street" a first on cnbc interview with sprint's ceo. that's at 10:00 a.m. eastern.

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our guest host this morning has been the one and only ken langone. we've never asked you straight up what you're actually thinking given where we are. what are you going to do when you go into the voting booth? >> i'm going to vote for trump. >> you are? >> absolutely. >> none of your views have changed over the past couple of weeks? >> not that my views have changed. i have moments of disappointment when he does and says things i wish he didn't say, okay. but that's being a human being,

frankly. all of us do things that we wish we hadn't done or say things we wish we hadn't said. this situation in virginia yesterday with 500,000 going to a guy that's a muckety-muck -- but this is the flavor of the day. >> related to hillary clinton and the fbi. >> how about the donald duck. the video says she said do it. >> what about all the women who have come out and said he's assaulted them. >> that's assuming what they're saying is true, right? i'm not saying it's not true. >> put that aside of the i know you're a spiritual person. it doesn't upset you to hear the way he talked on that tape? >> the other night at the al smith dinner, i was so disappointed at the both of them. this is a dinner to have fun and raise money for kids to get a good education. and the whole evening was demeaned by some of the things both of them said. it's usually a night of joy and of fun and of needling each other a little bit.

>> straight up on character, you say pocks on both houses? >> let me tell you what i think. i'll give you the bottom line. i think the things that we need in this country going forward we're more apt to get with trump than we are with her. let's forget about politics, let's forget about philosophy, girls, boys. i'm saying to you we've got serious issues in america and my bet is that he'll give us more of what we need than she will. >> when you say character issues -- >> i recognize people have questions on both sides. i know they're different. >> they are different. >> the get out of jail free card, we've got to go. great to see you. >> are you going to be here tomorrow? make sure you join us tomorrow, someone will be here. "squawk on the street" is next. ♪ good tuesday morning, welcome to "squawk on the street." it is an earnings parade this