live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe keern nin. andrew ross sorkin is off. guy adami is with us. >> great to be back. >> by the way, happy holiday everybody. columbus day today. >> right, joe? >> yes yes, it is yes, it is not afraid to say it. >> no. columbus day bond markets are closed, but the stock market's open. in fact, let's take a look at the u.s. equity markets this morning. you will see it looks like things are slightly positive pretty close to flat line. dow futures up by just over 3 points s&p futures up the nasdaq up by 7 1/2 this all comes after another positive week. the s&p 500 and the dow closed slightly lower on friday again, both of those averages

closing up for the fourth week in a row the nasdaq once again closing at another high and let's take a look what's been happening in asia overnight markets in japan and south korea are closed for public holidays. you did have the china markets open with the shanghai markets being closed after a week long holiday. that index was up by .7 of a percent. in europe this morning in some of the lerl i traearly trading, like things are relatively flat. slight declines, very slight declines in germany and france the ftse down. spain is up by .7 of a percent finally, check out crude oil prices and you're going to see that right now it looks like wti is down by by 10 cents still below $50 a barrel at 49.20. >> thanksgiving in canada. >> today >> unless someone is playing a joke on me they tweeted that in there i don't know what that means

exactly. is it the same they didn't have. >> turkeys, pilgrims >> that's our holiday, isn't it? >> one of ours. >> come on, joe. >> it can be a totally different reason to give thanks maybe. >> let's say happy thanksgiving to our friends north of the border. >> they could be having thanksgiving the day their country happily located right above the greatest country in the world. >> october 9th. >> i would give thanks for that. >> every day >> exactly you learn something every day here hsbc needs a new ceo did you know that? >> i did now >> hsbc plans to name a company insider to be its next ceo the times of london says hsbc wants john flynn to take over from sturewart gulliver now you have something to talk about at a cocktail party

tonight. the change at the guard at hsbc. honeywell plans to spin off some non-core assets and create two publicly traded companies. reuters says the company will resist calls by activist investor dan loeb to spin off the aerospace division. >> honeywell, we talk about all the time i'm not sure what dan loeb's problem is it's been a monster. closed at an all time high ge's been a laggard. dan loeb can say all he wants but honeywell is just fine in my opinion. >> i tonight know what his problem is where do you start with dan? no, he's a great man good man come on. >> curious about his problem. >> i don't know what his problem is in terms of honeywell. >> maybe he should be giving thanks today, you know >> right good to give thanks just about every day, i think

barron's is positive on walmart. it jump starts profits and revenue growth separately walmart announcing that it will launch mobile express returns at stores when you buy its items online. new this morning, richard thaler has won the nobel economics prize. he's from the university of chicago. he's a guest who's been here with us on "squawk box" before some of the things he has weighed in on include limited rationality at this, social preferences and lack of self-control apparently he's shed some life on the notion that new york's prize. case western reserve grad due wait from the great state of ohio in cleveland. we'll see what happens right, guy >> with the yankees, they won

last night. >> did you stay snup. >> i stayed up for the entire game on friday >> passive. >> you're passive. >> it's fun to watch -- >> looking for a new sport >> no, i'm kidding anyway, i did watch the entire -- >> you can turn to english football perhaps. >> that's right. >> your favorite >> that's an idea. >> arsenal or tottenham hot spur >> i have you today but i have someone who can bring mea long in terms of tutoring me. >> daniel ross sorkin? >> media mogul harvey weinstein has been fired from the company that co-founded amid sexual harassment allegations the weinstein company's board revealing that his employment has been terminated effective immediately. they detailed decades of sexual harassment allegations against

weinstein. on friday weinstein was placed on an indefinite leave of absence after the firm said it would investigate the long rumored allegations according to variety. along with his firing, weinstein is said to control roughly 20% of the company a source says a member of weinstein's boards will discuss changing the corporate name. >> what happens? i almost just said no to that. so it's sort of like the dam breaking so a couple of people finally came out and said something with their personal anecdotes a lot of people over the years obviously didn't feel comfortable saying anything or -- >> sure. >> -- afraid to or whatever and i'm just wondering, if you're a major motion picture star right now, something did happen, you probably still wouldn't say anything about it because you didn't say anything for so long,

but there's still -- >> perhaps and, yes, the questions are -- >> but there will be some people, i guess, that come forward and after reading some of the anecdotes i don't know if i want to know the details of some of it. >> that's what's so shocking about it. >> shocking, yes. >> open secret that he was kind of an out there personality but i don't think anybody had any ideas about the details of some of these things. >> exactly so we'll just leave it political news, the white house releasing a new list of immigration principles it's part of a proposal to replace daca that is the obama era progra that protected nearly 8,000 dreamers from deportation. allowed them to secure work permits. among the items on trump's list, money to fund the border wall. thousands more immigration officers and a crackdown on unaccompanied minors who enter the united states. much more on the immigration situation in a few minutes. vice president mike pence abruptly left the colts/49ers

football game after a dozen members, a dozen of the 49ers team knelt for the national anthem a senior official said the decision was plants ahead of time that the official said the vice president had been hopeful that all the players would stand. he had discussed leaving the game with president trump if that was not the case and then in overtime he did not get to see the colts actually beat the 49ers, which i read happened i didn't see the game. i did watch some yesterday. >> i'm sure he was home to watch the overtime i'm certain he did in fact watch -- >> you know what i did watch yesterday? i watched the giants lose. i didn't see the jets win. he thinks the jets are headed to the super bowl, your husband. >> they did kick the longest field goelg in history. >> 57 yards. >> green bay/dallas was pretty good. >> outstanding. >> if you are a giants fan, suffering giants fan, you took

solace in the fact that the cowboys went down. >> aaron rodgers, some guys do stuff like that. >> i would encourage you to ask mr. quale, the season starts this sunday when the jets of new york play the patriots of new england. >> i know that. >> to quote "coming to america" if you recall that. >> i know that let's get to the other markets not the sports markets now joining us is david lebowitz beth ambivino and our guest host is guy adami okay so it's been a -- it's not quite a meltup, but it's been a trickle up or something. it's been pretty solid advances quarter after quarter. yeah >> in terms of jobs? >> no. i'm just talking about if you were to deploy money now, you'd be risk on or risk off >> if i was allowed to >> yeah. >> you know, i see the momentum is there it seems that worries over what happens on capitol hill doesn't seem to be filtering in. >> what about the jobs report on

friday >> first i dismissed what happened with numbers was employers couldn't get into stores i was looking at the household survey you had 500,000 people coming back to the market and twice that amount getting jobs my one worry is that people get excited about that wage jump i'm a little bit more circumspect on that. i think the reason why we saw that jump was because a lot of people in low paying jobs weren't able to be accounted so i think it was distorted. >> do we want a good number or for people that are long the market, do we want a good number or we don't want a good number is it still about the fed? >> what the fed will do? let's see. whether the feds move in december or they move in january, we know they're going to move. i think that's already baked in the cake most likely we at s&p global

november is when they'll feel more comfortable making that decision. >> david, what are you telling clients right now? >> i would agree with a lot of what you said about taking the employment numbers with a grain of salt. i think the trend in earnings has, in fact, been firming labor markets tight, 4.2% is the fed's estimate for unemployment at the end of this year. so i think what we've been saying to clients is, look, the fed looks on track to hike once before the end of this year in our opinion, possibly the beginning of next year as long as the data remains healthy. the data remains healthy the economy looks good as long as the fundamentals are there and the fed's going relatively gradually, we think there's still up side in risk markets not to mention the potential policy reform. >> so, adami, what did you guys say about the jobs report on

friday do you want a good jobs number >> of course you do. you absolutely want a good jobs number >> there was some strength there. >> let the chips fall -- >> worry about the fed later. >> there's been strength worry about the fed later. my concern will be the fed has seemingly done everybody right in terms of the fact that the market's at an all time high this morning you have to ask yourself, how is this exit plan going to -- how is it going to formulate and how is it going to end i can't believe they're going to carry this landing and get us into this position and get us out of this position and go unabated to the up side. my concern is fed misstep which you have to believe is coming will sort of derail things. >> misstep, you mean raising rates too quickly. >> i just think that the market -- yes. i think -- first of all, i think they're absolutely behind the curve. they're going to raise rates and see what happens we've been in eight years of basically policies we've never seen in the history of this

country. put on a prop trade that's the biggest of history in man kind easy getting into a trade, not as easy getting out of a trade >> i was going to add one more thing. we were talking about what do markets think the fed's going to do what if the fed didn't move on the balance sheet stabilization. what did they see that we don't know >> i think communication will be key. to your point of a misstep, that gets exacerbated as you see the ecb start to tiptoe towards the exit as you see this global liquidity that we've had from policy makers be taken out if the market isn't ready for the fed to do something that the fed in fact does. >> how much would it change things or complicate the situation if you have a new fed chairman coming along? talking about communication issues potentially potentially changes in what the market's been expecting. any of you, if there's a new fed chairman, what does that mean? >> obviously that throws another unknown into the equation.

i still think yellen has a decent shot of being reappointed. i think in order to see some of the policy developments that people are expecting you need very low interest rates and she's about as dovish as they come throwing an unknown, particularly somebody without an academic or as strong of an academic background would cree aid fed funding. >> it's not just the chair you're talking about several more seats. >> right. >> that is a key market -- >> different fed all the way around. >> going to be a concern. >> the president was pretty critical of this fed when he was running for president. now he seems to sort of embrace them a bit more. now i totally get it, by the way. i understand how politics work i do agree continuity especially at this point would make a lot of sense, but if gary cohen is still in the mix, which apparently he's not, i mean, who's better suited to get out of the biggest position of all time than somebody who did it for a living for a long time at goldman sachs? now i understand he's not an

academic, wasn't trained that way, but it will be interesting to put a trader in a position that a lot of people think requires a trader's expertise. >> good point. i thought you were going to say who would you like to get you out of it other than the person who got you into it. but the person who got you into it -- >> the person who got you into it is writing books, doing speaking engagements. >> he had friends along the way and the current person was -- enabled that to happen she's fully engaged in the numbers on the way in. >> my inclination would be to allow her to finish the task at hand you're not a big fan -- >> no, i don't know how it's going to end. >> i don't know how it's going to end either. >> i thought it was funny you said, cohen is used to getting out of positions where they're potentially perilous positions. >> yes >> that a risk firm gets into that a risk has to manage. >> interesting. >> getting into positions are

relatively easy thing to do. it's getting out where you need some artistry. >> get out but you might lose your money on the way out. >> sure. >> which none of us want to see. >> no. unless you're looking for -- >> noted, again. >> goings to use that a lot. thank you. beth an, when we introduce you now we say beth ann bovino we don't say where you're from did you notice that at the top >> i'm from new jersey. >> we figure you're so well-known now that everybody is going beth ann. >> isn't that nice. >> cher and after that madonna thank you. when we come back, political roundup. trump versus corker. pence walks out of an nfl game and the white house issuing new immigration priorities we have a rundown and what it means for your money that's next. people don't invest in stocks and bonds.

they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that.

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witness katy perry. witness katy perry become a legal witness. witness katy perry and left shark. or a card shark. grandma? witness katy perry work. witness katy perry firework. witness katy perry swish. witness katy perry... aaaaaaw look at that dog! katy perry: with music videos and behind the scenes footage, xfinity lets you witness all things me. welcome back to "squawk box", everybody. the white house out with a new priority list for immigration. ylan mui joining be us with more on that. good morning. >> reporter: good morning, becky. president trump laid out those demands last night and topping the list is the border wall. the white house calling for full

funding and complete construction of the wall it also wants to crack down on sanctuary cities and move to a merit based immigration system in a letter to congress the administration said these priorities must be reflected in any bill that addresses the children of undocumented immigrants, also known as the d.r.e.a.m.ers. democrats are furious about this here is a joint statement from senator chuck schumer and representative nancy pelosi. we were open to reasonable border security measures alongside the d.r.e.a.m. act this list goes far beyond what is reasonable. this list fails to have any attempt at compromise. chuck and nancy thought they had a deal a month ago that had explicitly ruled out the border wall this isn't going to help trump convince schumer to work together on health care. the president said this weekend that he called the senator from new york to talk about the possibility of a temporary fix for obamacare. doubt that is going to happen now. meanwhile, trump is also facing fresh blow back from within his

own party. senator bob corker of tennessee told "the new york times" that the president's cryptic and threatening comments could be leading the country, quote, on a path to world war 3. corker is clearly uncorked and he's definitely going to be one to watch as lawmakers wrestle with their very packed agenda. joining us to talk more about all of this is nick johnston he is editor at axios. nick, thanks for being here today. >> hi. how are you. good morning. >> thank you let's start off with the immigration story because that's on the front page of the wall street journal and "new york times. does this mean the bridge to the d.r.e.a.m.ers act is dead? >> we knew this was going to come steven miller, one of trump's top aides, was preparing a wish list and as ylan said, democrats are

apoplectic immigration is a policy graveyard because of things like this any attempts to move in one direction gets a lot of things added on like border security, fundamentalists are upset. it will make it much, much harder to get a deal on d.r.e.a.m.ers. >> what does that mean for tax reform, particularly when you see bob corker and the president going back and forth >> my good friend mike young got a text yesterday after the corker tweets and it said bye-bye tax reform this will make it harder i think you need to pause and think for a second what's going on right now the president of the united states, republican, is feuding with twitter with the chairman of the foreign relations committee, another republican. and a vote you're going to need for tax reform corker's already come out and said he thinks there's not enough spending -- too much deficit increasing for it. so you think this is a way to get corker more on line with tax reform i don't think so. >> where does that leave you in a situation where you need 50 votes at least to get through?

you've only got 52 republicans in the senate. >> right. >> not dealing with bipartisanship if you're not dealing with corker? >> i shrug emoticon. this is a struggle the president had. there's not a lot of leeway. there's not a lot of gives in the senate they were one vote shy on health care they're now maybe one vote shy on tax reform as well and what kind of outreach is the president doing trying to get republicans on board with this what kind of negotiations going out. get some of the democrats with it the solution is not fighting with bon corker on twitter. >> let's talk about foreign relations while we're on the subject. you've got north korea and you have iran. where do we stand with these two situations it sounds like at least with north korea some of the sanctions that we've kind of thrown out, it may be working. >> yeah. i think an important thing on north korea is to separate the rhetoric from the action separate president's tweets from what's happening behind the scenes with nicki haley at the u.n., bob mattis at the

pentagon a lot of it the president says these things voting rocket man as he calls them but what hasn't changed as much is the military posture. unconditional forces being moved. we have the u.s. civilians not being evacuated. look at what china and russia are doing on sanctions when people get -- pay a lot of attention to the tweets, there's a lot more happening >> what does this do though? these additional pressures for countries not to do business with north korea are starting to work, what does that do to north korea? >> the hope is if you cut off enough of those things it might bring him to the bargaining table. i think that's very tough. >> may also make him feeling cornered >> yeah. for 25 years this has been the approach of the u.s. administration and it hasn't worked so far. trump had a point on that tweet there. there's no other solution. the other side is war.

>> what about iran >> iran. well, that's going to be kicked to congress. i think the president has said it's a bad deal over the objections of some of his advisers now the iran decertification in front of the hill, remember, congress has a lot of things on its plate right now. i think most of that moves to the back burner. >> is this something where you find more agreement in congress or not >> i don't think there's a huge push in congress to blow this up there are certainly some members, contenders like tom cotton who think the u.s. hasn't been tough enough on iran so far. remember, we've got immigration, we've got tax reform, we have another spending fight, we have the debt ceiling i don't think that's a big fight that's going to happen. >> nick, thanks for joining us today. >> absolutely. coming up, it's earnings season again already almost like it happens every three months, isn't it three or four times a year it seems like we'll tell you what to expect when the big banks report next when we head to break, here's a

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♪ ♪ welcome back you're watching "squawk box", live from the nasdaq market site in times square. good morning u.s. equity futures at this hour, take a quick look after

five straight quarters lots of gains. more gains indicated this morning. up 9 on the dow. nasdaq even stronger up 9 but obviously that's a bigger percentage move and the s&p also indicated higher. start of what is earnings week and check out what is happening with the turkish lira. maybe not the first thing you thought of this morning, but look at it the currency falling hard after the u.s. embassy in ankora suspended all nonimmigrant visa services, a move that turkey immediately matched. the u.s. statement cited a need to reassess turkey's commitment to the safety of u.s. personnel. last week a u.s. consulate employee in istanbul was arrested accused of links to a cleric i think that gentleman lives in -- >> pennsylvania, right no, i think he's in pennsylvania. >> in this country, right? >> in the mountains somewhere. in the meantime, gasoline prices have dropped more than 6 cents a gallon over the last two weeks. according to the lundberg survey

the national average is $2.55 a gallon it led to a backup in crude oil prices that's what put pressure on the price of crude. a long awaited sequel topping the weekend box office "blade runner 2049." earning $31.5 million in its debut. that was according to comscore the movie reportedly cost $150 million to make. second place goes to the mountain between us. it's an adventure slash romance movie. it brought in $10 million with its debut weekend. well, folks, some of the biggest banks getting set for earnings this week including jpmorgan, citigroup and bank of ameri america. joining us is jason goldberg for a preview. he's at barclays thanks for being here. >> thank you. >> financials have done well do you like this entire group?

>> constructive. the group had a bounce of late as interest rates have backed up a bit, but looking out we continue to be constructive. >> meaning that you expect rates to continue to climb >> we do we think the interest rates will continue to back up. we also think we're in the midst of a regulatory roll back phase. after seven, eight years of regulatory environment getting more stringent, starting to see signs of easement. even friday treasury put out its second installment of white papers in ways to make it work a lot of the recommendations don't require congressional approval, just getting some new people in the fed and on the occ confirmed. we think that's going to happen in the not so distant future. >> banks so far, are there any that are particular standouts? >> this week, certainly the revenue vernements will be challenging. but as we look to the biggest banks, the jpmorgans, citi groups, they kind of have those adversely impacted by the regulatory environment we think they have the most to benefit as it comes back.

>> what do you think of wells fargo after everything that this bank has been dragged through continued trips to capitol hill. >> it's certainly been a tough 12 months for wells fargo. longer term we think they'll turn the ship. they've made a lot of progress since the issues came to light last september we have a little bit more to go. as they clean the decks in 2017, we think they're poised to make a comeback in 2018. >> uy, what do you think about wells fargo and the reputational sting? >> on principle i wouldn't buy wells fargo. i think they've made strides over the last few months we've talked to mr. buffet a number of times so i don't need to tell you. i think in terms of the banks, it's probably one of the cheaper ones in terms of valuation, but i think it's cheap for a reason. i think jpmorgan is getting towards levels where price at the book makes it somewhat expensive. i think citi is probably the cheapest in terms of price to book look at the peak of the banks. i think a lot of them were trading 2 1/2 times price to

book i'm not suggesting we get back to historic levels, but i do think you could see the banks trade somewhere between 1 point be point 6 and 1.9 times price to book. that puts citi, for example, probably north of 95 bucks i think that's still a reasonable stock >> we want to mention this news just in from general electric tryan funds management ed garden, who we've actually had on last week, this is one of his partners, has been elected to ge's board of directors. garden was chief investment officer at trian said he's disappointed in the performance of ge stocks this guy is sharp. he still believes it's a long-term investment opportunity. trian first became involved in ge in october of 2015 when it bought a stake of 2.5 billion at probably 28, wasn't be it? 28, 29 >> right they had an agreement. it seemed like they were working with management at that point.

you know, we should probably also point out there were changes announced in the management structure at ge, too. >> no company car for senior executives what kind of car do you think they were driving? bet you they weren't -- bet you they weren't crappy little compacts. >> i bet they were american made. >> i'm about to get -- go ahead. ask. ask. ask. >> you said on principle i wouldn't buy wells fargo what did that mean >> yeah. >> really? >> yeah. >> mr. socially -- >> i'm not i'm not. >> going to buy a tobacco company, guy what about fossil fuels? >> i have no issues with -- >> you won't buy a fossil fuel company. >> i have no issue with tobacco, medical marijuana, with alcohol, i have no issue with snacks. >> he's not allowed to have an issue with -- >> no. but warren buffet is still in wells fargo. >> becky has spoken to mr. buffet a number of times. >> you're more principled than

warren buffet? >> am i more principled than warren buffet? >> yeah. >> of course not >> if it's good enough for him it's not good enough for you >> he's already in it. >> this is a new side of you i'm seeing. >> is it a bad side? >> yes >> no. >> it's just a wimpy virtue signaling. >> i'm not trying to virtue signal anything. >> i get it from the virtue signal that -- >> i think ars, your -- >> he wouldn't -- i don't think anything is left for him to buy. you know what, all of these companies are sinking profits. i won't buy any company that has a profit because i'm too greedy. >> at the -- >> there seems to be a mass -- there seems to be some fraud going on at very high levels that offended me and it dragged wall street into the mix and in my opinion for all the wrong reasons. >> now is there a time where you say, okay, they have actually

earned it -- >> to your point, i think they've done -- over the last month and a half, two months, i think they've made incredible strides along those lines. i think they were really slow though for the first six months of when this happened. i still hold that against them in some ways. >> there could be a point when you step back? >> at a certain point to joe's point, you're in this to make money. don't shake your head. >> i guess that -- that order for stern rueger canceled for you this morning, huh? >> i was just on the internet now on the line canceling that >> yeah. okay noted. >> noted >> thank you very much for joining us today we appreciate it. >> sorry to drag you into this. >> no, it's good need to be -- >> you saw what happened with tricks. >> trix are for kids. >> real sugar, have you to get out of that. >> what happened >> now people like thix again because they're no longer

selling cale flavored trix nice, sugary sweets. that's definitely off your buy list at this point. >> on principle. >> coming up, muhammad el-erian will be with us. all these companies that you buy are profit mongers. >> i do. >> they're all profit mongers. none are nonprofits. you might need to reconsider tax debate showdown, grover rqstnd jared bernstein stay tuned, you're watching "squawk box" on cnbc retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered.

comcast business outmaneuver. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life.

or they could get even more. a used car, what they want out of life.

after reports that amazon was considering selling drugs online anna gupta wrote to her clients that amazon is reportedly in discussions with mid market pharmacy benefits managers and has been hiring talent to assess the drug retailing market for its entry. according to an e-mail, the

giant will make a decision on drugs by thanksgiving, at least american thanksgiving, not canadian thanksgiving, which is today. >> which is today. >> martin shkreli doesn't seem to mind prison live. he penned a letter to a friend detailing his time behind bars as he awaits his sentencing. shkreli says in his words, things are not that awful here he's apparently reading, shooting hoops and playing chess. he added, i'm teaching these prisoners some new things and hopefully some ways to change their lives. but shkreli did note -- adami, i'm not -- this is going to be without comment, did note some down side. his cell mate snores and his bet is cramped and incouncomfortabl. >> you get that zepa thing in the pen there, you know, zepa? you ever hear those commercials?

>> like zika. >> it's zepa maybe he can get some zepas for his buddies and make everybody happy. >> it's one of those stories. >> you didn't want me to go down that. >> you called it a significant other. >> no, i did not call his cell mate -- >> i'm not going to do anything with this prison story i think prison stories -- >> why was it -- why did you read it? ask quale what it was doing in there. >> you trying to set us up, quale? it's just a story. he likes prison and he's teaching -- you know, let's go to dove. this is unbelievable what were they thinking? >> i have no idea. this is another one we might get ourselves in trouble with, but dove dropping its latest ad campaign after drawing tons of criticism. the company first posted a three second gif ad showing a black woman removing her brown shirt to reveal a white woman and a

white shirt underneath many people were outraged by the ad calling it racist the company has since apologized saying that it is committed to representing the beauty of diversity adding that it missed the mark with this ad. >> okay. so that's what they were trying to show, diversity >> when it was pitched by the madison avenue, whoever pitched it, what do you think the rationale was? i didn't even understand -- >> i don't understand it to tell you the truth. >> i don't know. >> weird >> but, you know, someone should have said, are you sure? >> yeah. >> not the best idea >> all right >> right when we come back, milwaukee bucs president peter fag began going to be joining us to talk about the college basketball bribery scandal. yeah, he didn't know he was talking about all of these things we'll talk about his team's new arena. right now as we head to a new break, take a check at what's happening in the european markets.

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welcome back, everybody. we have some stocks to watch for you this morning astrazeneca says that the fda has given its drug to treat a form of lung cancer a break through therapy designation. this move helps speed the approval process of the drug. shares of airbus are lower today. the worst performer on france's cac 40 index they're citing tom enders on friday when he warned of turbulent times ahead as corruption and fraud probes in france and the u.k. could lead to large corporate fines the stock is down by 2.3%. the milwaukee bucs are unveiling a brand-new arena in 2018 joining us with the details on the construction milwaukee bucs president peter feigin. >> good morning joe and becky. >> i think about lazry and wes edens buying that team when it was before the clippers went for

gazillions of dollars. like everything they touch, it was like midas probably double the value of the bucs franchise. >> they bought it about five fifty and two weeks later bomber bought the clippers for clippers >> people that have money, that helps. to make money if you have money. have you noticed that? >> i work closely with him, and there's no surprise like why they're successful >> so is jamie dimon >> finger on the pulse >> they're all good bosses, right? >> they're all great bosses. >> what's your favorite? >> they're different on different days they're all -- it's kind of having an incredible group of advisors that are all very, very, very different west is a private equity guy he really is p and l mark is a distress guy jamie is an equity trader and mike is one of the preeminent real estate guys in the world. >> mike got a billion dollars or just the other three the other three have more than that a piece

that's interesting >> mike is very generous >> how much would it cost? "squawk box" arena >> kernan arena. >> quick arena cnbc arena >> it's what we need to get done it's the cornerstone of kind of financially as we go forward it's a $7 million to $10 million deal over 20 years it's not a local deal. >> you incorrectly say it's the jewel of the midwest most people know that. cincinnati

>>. >> i was just there in the last year or so it is a great spot right on the lake there >> one of the things they all did when they bought this was, like, how do we become the preeminent salespeople for milwaukee? unbelievable city. great destination. the state of wisconsin as a whole. what we want to do is build a magnet we're developing 30 acres of downtown milwaukee, and really become a catalyst of economic development to create density and population, a place that doesn't really have it in downtown milwaukee >> how are your prospects this year, do you think >> your first game is the 18th, isn't it >> in boston >> in boston we play at home against cleveland. >> on the 20h. on the 20th. right. >> the cavs with dane gilbert. he says he is going to kick your ass. >> did he say that >> i'm going to have to tell west and mark and jamie. >> you should. >> i think we're excited

>> we talk about -- i don't want to get into all the controversy, but adam silver said stand basically said that's in the bi-laws of the nba for the national anthem. are you okay with that >> i think -- >> are the players going to be okay >> adam and our owners have made it really clear. i think what we're doing is kind of celebrating unity during the anthem without really curbing people's personal opinion. adam, wes, marc, jamie, they've all made it very clear players can voice their opinions just not during the anthem really use the anthem as a time period for unity and promoting unity among the team >> i saw some -- i don't know -- are these polls real the most popular sports in the u.s. the nba leapfrogged over the nfl in terms of popularity >> unbelievable metrics.

think about participation. >> i ran with it with your buddy kenny. >> kenny dicter. >> wheels up raised some bluechip money on friday >> it's a point of differentiation. not a question net jets is a preeminent fractional provider in the world. you know what, kenny is the greatest sales guy in the world and positioner in the world. you are talking to a biassed guy. you know, there's -- if anybody can do it, it's kenny. i think he has unbelievable niche in the market. i think he certainly understands the service quotient of what it means, and he certainly understands what the business

off side of it is. >> when people look at corporate jet travel and most recently we saw with the trump administration, obviously, but that happens corporate as well you know, with shareholder money, and you are wondering if you are using it wisely. there's a niche for if you can drive down the price per hour as much as you possibly can that's what the king air does on short flights. even shareholders with accept a price if you are hopping from one seat to another on a smaller plane, right >> bucs have appreciated in

a big way. >> what -- >> the clippers went for $2 billion. the houston rockets just went over $2 billion. these are all teams that just aren't available you know, it's what the market -- >> you said right there with those guys on the floor? you get to do that >> i do not sit right there with those guys >> you are the gm. >> well, i make sure those guys have everything they want. make no doubt. >> smart smart. >> they're much like kenny i'm an operator. >> i love midwestern cities. because there's a rebirth of a lot of them. >> thanks for coming in, guy thank you. remain here for this hour. >> learning experience >> "squawk box" -- >> we appreciate it. it's great to see you. >> kernan arena. >> kernan arena.

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>> the markets right now pointing to a higher open as traders gear up for earnings season oh, good we'll open up with mohammed el arian's market playbook in a minute overnight president trump calls on congress to fund a border wall for the deal for the skaultd dreamers we'll have details straight ahead. senator bob corker telling the "new york times" the president could put us on the path to world war iii. we'll talk raurn, north korea, and corker's comments as the second hour of "squawk box" begins right now >> live from the beating heart of business, new york city

this is "squawk box." >> good morning, everybody welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan andrew is out today. we've been watching the futures, and they've been relatively flat looks like a little bit of a pick-up. the dow futures now up by 14 points above fair value. nasdaq futures up by nine points above fair value the s&p futures up by one and a half points. this comes after a down day on friday for both the dow and the s&p 500, but four weeks in a row now that we have seen gains for those two indexes. nasdaq was up on friday, and it continues that pace this morning. ge elected it -- to its board of directors. trian first took a stake in general electric back in 2015. gardenings he is disappointed in ge's stock performance, but he

still believes it's a good long-term opportunity. ge also announced several executive changes, including the impending departure of cfo jeff borenstein he will be replaced by jamie miller, who is currently the head of ge's transportation business eric rosengren says more rate hikes are needed keep the economy on track he says keeping rates at historically low levels risks overheating the economy. rosengren made his comments over the weekend in montreal. he is not a voting member of the fomc for 2017. tesla is delaying the debut of a planned semitruck it had originally been scheduled to be unveiled on october 26th, but that's been pushed back to november 16th. ceo elan musk says that the automaker is diverting resources right now to try and help with production bottlenecks for its model three as well as increasing battery production for hurricane ravaged puerto rico price at the pump falling. the latest industry survey shows the average price of -- [ horn honking ]

>> average price of gasoline dropped by 7 cents in the past two weeks. the $2.51 a gallon that was a -- it's really not like this. the move comes -- >> you know if you watch the show it's not like this. >> the move comes as crude oil prices fall and fluttered refineries on the gulf coast are resuming some operations air bnb is testing a new feature for business travellers. it's teaming up with wework. it offers shared work spaces they're launching a pilot program in new york, los angeles, los angeles, sydney and london business travellers who book a room with air bnb will be able to reserve a desk at a nearby wework location. >> you don't stay in the left lane if you are going the speed limit? >> only if i'm not paeg attention. there are times i realize, oh, gosh, i need to get out of here. >> for passing some people think it's like -- it's optional. i can be in the left lane. i can be in the right lane why do they think that >> no, no, no. >> move over if you are -- >> there are times i have heard

that, and times i have frofb forgotten. >> you know i have had to replace horns. >> you don't really still do that, do you >> oh, yeah. >> i thought you said you have been getting better. >> i'm trying to get better because people recognize me sometimes. rarely rarely every once in a while i'm in full, you know, road rage, and they go -- it's like, uh-oh. >> never mind. i'm sorry. to politics now, the white house releasing a new list of immigration principles as part of a proposal to replace daca, and that is the obama era program that protected nearly 800,000 dreamers, so-called dreamers, from deportation also allowed them to secure work permits among the items on trump's list, money to fund a border wall, thousands more immigration officers, and a crackdown on unaccompanied minors who enter the united states republican senator bob corker warning that president

trump risked setting the nation on a path to world war iii he made those comments in an interview with the "new york times" over the weekend. the two then took to twitter yesterday with the president tweeting senator bob corker begged me to endorse him for re-election in tennessee i said no, and he dropped out. i said he could not win without my endorsement he also wanted to be secretary of state i said no thanks he is largely responsible for the horrendous iran deal hence, i would fully expect corker to be a negative voice and stand in the way of our great agenda don't have the guts to run senator corker responding to the president. "it's a shame that the white house has become an adult daycare center someone obviously missed their shift this morning." >> "mad money". i don't even do. >> no. >> on twitter. i'm not the most mature person in the world >> i didn't say that >> but still, i'm above these two.

>> yeah. >> well, i don't know. anyway, a couple of stocks on the move this morning. honeywell reportedly planned to -- >> think about that. let that sink in >> i didn't think it was that big of a deal. >> locked fore never. we'll be back. honeywell, reportedly plans to spin off non-core assets and create at least two new publicly traded companies this would be the first major

move since honeywell's new ceo took over in april reuters says the company will resist the call by dan to spin off its aerospace division barrons is positive on wall street barrons thinks the shares could rise 15% or more in the next year as the e-commerce strategy at wal-mart jump starts profit and revenue groert, and then separately wal-mart is announcing today that it will launch mobile express returns at stores for items that are bought on-line. you can take them back in the store. harvey weinstein has been fired from the company that he co-founded amid sexual harassment allegations weinstein had previously taken an indefinite leave of absence the weinstein and company board of directors, which includes weinstein's brother, announced the firing yesterday it happened just three days after the "new york times" published a bombshell report dealing -- detailing decades of sexual harassment allegations against the film producer. according to "variety" no financial settlement was put in place when this firing came

about. weinstein is said to control roughly 20% of the company the board is discussing a name change for the company >> mohammed el arian mohammed, everybody knows you. you need no introduction welcome. >> thank you

>> your beloved patriots >> i told i played golf with someone who is a good friend your mom took you to mets games like all through your childhood. >> that's right. >> that's what started it. >> you're huge -- >> she would insist on leaving the seventh inning, which used to drive me crazy. >> why traffic. >> she wanted to miss the traffic. that's the only thing. i'm so grateful. >> are we on the ground floor? are we near the penthouse, do you think? >> we are in the midst of a very long and rewarding journey one that has been -- >> like life >> like your life. >> one that has been

characterized by unusually low volatility and for good reason in fact, a person who won today's nobel prize in economics has written a lot about it about behavioral -- that's that investor had been conditioned to expect that their back will be covered by central banks repeatedly as i have been saying over and over, you need a major series of shocks to dislodge this market this market is not dislodged easily >> basically what you just said is that we have been conditioned perhaps falsely into thinking that there's no more risk, that central banks will not let markets go down indefinitely >> we have been conditioned to buy everything, and if you notice, the dips are less freque

frequent, almost never happened. >> so far this year we've had the lowest daily decline in the history of the s&p think about it despite everything that's gone on in the global economy and politics and geopolitics, north korea, all this other stuff, the smallest daily drawdown in the s&p. >> he thinks more interest rates are coming market is completely dismissed they can get away with a few rate hikes without disrupting the markets. >> in the past it just seems like if you get lulled intocen y complacency, it seems like there's a day of reckoning, and i think about -- i can remember companies. i remember economists say we've learned how to manage the business cycle i remember the housing industry saying we know how to deal with inventory now. we're not going to have a boom and bust period again.

i've had people say when the fed steps in every time that gets dicey and they don't let it flush, they don't let it -- they don't clear the trades where they would normally be cleared, they clear them up here by offering support sooner or later there's going to be a day of reckoning. we bought enough time for the underlying economy you used to talk about that, the gap between the underlying economy. maybe we've caught up, and maybe we never have a day of reckoning. really for all that they've done. >> first, you're right that stability can breed instability down the road.

people get complacent. >> a different guy >> a different guy we're seeing a lot of risk, excessive risk taking. we're seeing a lot of people give up liquidity too easily you are absolutely right second, yes, we have bought enough time for the fundamentals to start improving when over 180 ministers of finance and central banks gather in washington this week, they're going to celebrate the synchronized global recovery however, that recovery is not yet strong enough to warrant and validate existing asset prices you need something more. i think this is where washington comes in

>> higher def dends. all of that is recirculating liquidity back into the marketplace. this is a liquidity driven market, and now we can get validated by fundamentals, but we need policy actions >> so we didn't need to let the chips fall where they would have it's okay to have the government -- why not -- let's start a real plunge protection program. let's do that. there's been conspiracies that will just buy s&ps when the market starts going down >> in august 2010 when then chair fed ben bernanke talked about qe2 as a way -- as he used the asset markets for economic outcomes, he said it's about benefits, costs, and risks remember these three words benefits, costs, and risks the longer you do it, the lower the benefits the higher the costs you can't do it forever. you can't have protection. you can't do this stuff forever.

there is unintended consequences, and that is misbehavior that occurs, but you just hope you can validate the funds. >> just hard to realize when you have crossed over. >> correct >> to the point. i think with our deficit, it's the same kind of thing we're at $20 trillion. if you just threw caution to the wind, we could spend money on a lot of stuff god all mighty, think what we could do if we had a limitless -- we do have a limitless supply because we can sell more bonds. we can always -- the federal government is the debt it's going to be, you know, wherer you're going to be able to replace the existing debt by selling new bonds. >> you do think it's going to come back to haunt us snsh. >> excessive risk taking look at the proliferation of etf's that promise you instantaneous liquidity at good

office spreads, even though the underlying assets are in i illiquid markets you and i know that doesn't make sense, but they're proliferating, and people are buying it. >> be careful of the unintended consequences of the small period >> you said that it would take a severe risk to really shake the market what kind of things are you thinking about we can't even imagine what it is >> on the geopolitical funds, it takes north korea doing something not just brazen, but something really stupid, and the u.s. reacting. next thing you know, you've got a major crisis in asia on the economic front, it takes a mistake not by the fed i think the fed is in this context to adapt the way values

raised the other context is in the process of a beautiful normalization. i do worry about the eb, the bank of japan, and people's bank of china a policy mistake could do it or you can have a market accident don't underestimate the amount of risk taking going on in the non-bank sectors i think central bankers don't focus on non-banks they foekts on what's familiar to them. >> you mean like the insurance companies, like an aig or somebody else? >> like mutual funds, like what individual investors are doing because they are so confident that volatility will remain low. buying every dip has made sense, and we know that in the marketplace, nothing works better than something that consistently rewards you until it doesn't >> i like your tie >> i'm going to retweet it >> thanks for the shadow

whoopz, i'm sounding like a -- >> he could get -- maybe he can earn his way back. >> have you ever unblocked someone? >> she made -- she appealed to someone that wrote her, and i think i may have misinterpreted. >> so you know how to unblock somebody >> i know how to do it it's very rare >> mohammed is our guest host. he will be with us for the rest of the hour. when we come back, oil prices edging up today after sliding back below $50 on friday we'll take a closer look at where prices could be headed as we move into the winter months that's coming up next. later, republicans under pressure to get tax reform done. we're going to speak to americans for tax reform founder grover norquist, and former chief economist and economic policy aadvisor to joe biden, jared bernstein, about the latest push. stay tuned you are watchingsqwkox ghhe on cnbc"

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u.s. production draws closer to its peak of 9.6 million barrels a day. jackie deangeles is here she has the latest with the chances that we'll see another slide in oil prices. good morning, jackie >> good morning to you, becky. that's right the crude reality here is that oil has been stuck, and it's been stuck around $50 a barrel now for several weeks time many investors think the support is unfounded and that signs of that are starting to show. three factors you need to watch when it comes to this trade. first, u.s. production continues to slowly rise each week, and it's just off of that peak of 9.6 million barrel az day. june of 2015 why? well, $50 oil is an attractive price for producers to -- and that's what they're doing. if we surpass that 9.6 million barrel mark, it will be a key factor to show that the numbers here are going in the wrong direction. psychological factor too second, opec production, it was up in september. about 10,000 barrels a day yes, that's a small amount, but also, moving higher. not lower.

libya and iraq push those numbers up venezuela has reduced production offsetting those other countries, but not really enough the third factor here is seasonality. you mentioned gas prices before. fall and winter are the seasons that we see a drop in demand because consumers are driving less the gas prices and the oil prices go down the summer season certainly was robust, but everyone gets back to business now. we'll start to see that have an impact over the next few weeks, the bears still say the 40s are more likely than the 50s and that the support that we've seen so far was technically driven, and also hurricane driven as well this weekend's storm in the gulf, nate, not likely to have a sustained impact on price as refinery shutdowns are expected to be temporary. guys >> mohammed, do you have thoughts on this >> we still hear a lot of the demand side, and your three factors are all on the supply side >> the demand side is really important too, but the stunning reality there is that nothing is really changed there's been no major uptick to offset the kind of increases that weave seen in production. that's really the key.

>> the shale producers will come it's more lucrative for them to do so. a self-fulfilling prof eswhy i, and the opec countries aren't helping either >> jackie, thank you >> sure. >> coming up, tax reform front and center for investors and business we're going to talk north korea, iran, and their nuclear ambitions. "squawk box" will be right back. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again.

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>> when we return, grover norquist and jared burnstein will battle it out over tax reform as we head to a break, take a look at the u.s. equity futures. they've been higher. dow futures up by 15 points above fair value the nasdaq up by ten "squawk box" will be right bk.ac

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zbliefrmt among the stories front and center today, it will be a quieter day on wall street. today is columbus day. that holiday has shut down government offices, banks, and the bond market. the stock market, however, is open for normal trading. subprime lender one main financial is up for sale according to the "wall street journal. the paper says one main is in talks with several interested parties. although there's no guarantee that any deal will result. >> next month it's going to be rolling out a program that's called mobile express returns for items that were ordered on the retailer's web sites a few months later it will

integrate in store purchases into that news return system as well a note for then national anthem a senior official on the vice president's staff said that the decision was planned ahead of time and that official said the vice president had been hopeful that all the players would stand. the president just tweeting moments ago the trip by vp pence was long planned he is receiving great praise for leaving the game after the players showed such disrespect for the country. americans for tax reform president grover norquist and center on budget and policy priorities i want to start with you, and i'm going to make you king for a day, or, you know, the leader of -- >> i like this

>>. >> i see democrats now basically say that it's a corporate tax cut that's just another tax cut for rich people and wealthy people if you had your way, would you raise corporate taxes, keep them where they are right now, or try to lower corporate taxes >> i would lower the marginal rate, but i broaden the base >> the key to a corporate tax reform that simply -- without sacrificing revenue, and, by the way, that's the big problem with

the trump tax cut is it's so costly to the deficit and debt we could simplify our corporate code, take that rate down a bit. you know, widely broaden the base you can call it demagoguing, but they will look in the camera and say republicans want to cut taxes on corps because they know that that's a knee jerk reaction among certain, you know -- the american public at this point -- >> that is what the trump plan does, by the way the trump plan -- >> why do you let your colleagues use that as a pajorative as a criticism of the plan, saying they want to cut taxes for corporations, and then they say these are profit mongers, ceos they want ceos to make more money. they know that that -- that it might be helpful in terms of growing the economy.

yes, it is a corporate tax cut, and it will largely resound to the benefit of those at the top of the scale who are already doing great. don't confuse my plan with their plan >> i know. grover, i see all of them. >> the big government politicians is everyone can pretend athat somebody else pays it the person paying the biggest market is the person who hasn't had a job over the last eight years. we've had such pathetic economic growth it's the worst recovery in modern american history.

it's still chugging along very poorly we need to get more economic growth the person who benefits from cutting business taxes is the guy who gets a job that's the biggest winner. a guy who goes from zero to 25,000 zero to 35,000 >> we think say i would be willing to take the rates down i talked with senator kerry when he was the leader of that committee to try and come up with a deal. he wanted $1.4 trillion in net tax increase out of any tax reform

she admitted to at least a trillion dollars in higher taxes that she would put a number on, and then a series of tax increases that could have been another trillion that she didn't put a number to. >> she ran on it and lost, hillary clinton. obama governed with it and governed poorly. rate reduction and reduction in the total tax burden taking it from your left hand pocket rather than your right pocket -- zblie know that was all. over the weekend you got corker. you got rand paul. i don't know where ted cruz is

going to be on this. >> corker is a grown-up. he can have i afight with a president. he has already done the negotiating that he has focused on to try and, in his view, limit the size of the tax cut. i'm not sure i agree with corker's reasoning on it, but the other senators came to terms with the number that he put together 1.5. he should be fine there. he is a serious guy in terms of wanting economic growth.

>> never any hyperbolic -- why america's bad tax reform plan is bad economics. >> his article today, i saw it in the washington post, is a must read on this tax plan because it really gets underneath a lot of what you just heard from grover there is no correlation between tax cuts and economic growth although reagan did raise taxes. he clawed back about half the revenue he lost. you can find even stronger growth in the clinton era when he largely raised taxes. this notion that you are somehow going to help downtroden neighborhoods by implementing a tax cut that gives 70% of its benefits to the top 1% that actually ends up raising taxes like many in the middle class, and that's because of getting rid of the personal

exemption and some bracket creep in this plan the bottom line here is while you are tilting the tax codeine more to the very wealthy, so you are exacerbating our inequality problem, you are whacking the heck out of our fiscal health by robbing the treasury of trillions of revenues. if you want to help the downtrodden people that grover allegedly stands for, you are going to need to support them through programs that offer them training through infrastructure programs, through job creation programs, through subsidies, wage subsidies like the earned income credit arks a favorite of ronald reagan's, by the way, and you're not going to be able it on do that if you are adding a couple of trillion to the deficit.

>> democrats do something when they have a chance why don't republicans? >> two things. the democrats had briefly at least 60 votes in the senate the republicans have 52. the democrats have one central funding source, and that's coerced union dues in terms of billions of dollars every year they've taken from workers without their permission, and that money is centrally controlled they own each of those senators. there aren't any independent democratic senators. there aren't any independent thinking democratic congressmen. you do have republicans who wander off i think at the end of the day they're moving in the right direction, but there's nobody who tells any republican senator what to do there's no afl-cio saying we have several billion dollars in coerced union dues, and you won't get re-elected, and we

will take your head of on if you don't do what we want. the democrats have a big club and the organized labor tells me what to do >> i thought you made them all sign pledges >> well, we've had tremendous -- well, we've had tremendous success as long as we've had a republican house, senate, or president. there's not been a tax increase. the only tax increases in modern american history had been the two years when clinton had a democratic house, senate, and the presidency the recovery started the day the republicans took the house and senate and when we cut capital gains. >> grover, i mean -- >> i did let him have the spending >> in the two years of -- >> let me ask you a question how are these republicans so independent if they're signing tax pledges to your organization saying i won't raise taxes even if the country needs a tax increase >> i'm going to assume you misspoke rather than why you know perfectly well that the pledge is to the american people it's written down. you can go to the website,

atr.org, and the plenl is from a congressman or senator saying i will not, if you elect me, american people, people of my state, i won't raise your taxes. that's a pledge to them. >> i didn't mean to imply anything other than that >> you said it was to me, which is what obama used to say, and he was lying >> to your organization. >> no, no. you just lied again. it's to the american people. >> it's not lying. now, come on >> read it atr.org. >> your organization is -- has these politicians sign a pledge to the american people, as you say. >> yes >> where is their independence >> they can choose to run as tax increases if they want, but that would make them democrats. >> all right we'll leave it you don't have to get nasty, grover >> you don't need. you don't need to use the -- i'm sorry about that anyway, thank you both see you later, jared >> when we come back, president trump making comments over the weekend about dealing with north

korea. we'll talk nuclear ambitions, the dismantling of the iranian deal and other geopolitical risks of the market right after this break in the meantime, check out the futures. picking up a little. dow futures now up 28 points s&p looks like it would open up by 2.5 points. the nasdaq up by 10.5. building a website in under an hour is easy with gocentral...

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. >> president trump could set the nation on the path to world war iii by threatening other countries. the senator making those comments during a "new york times" interview over the weekend. >> are your levels of concern racheting up >> i don't think they're heating up everywhere. for example, i think that the dealings with russia, while extremely complicated and largely because of last year's elections, as we you will know, haven't really intensified in that swath of eastern europe.

>> it's still a tragedy beyond proportion i don't see it as a place where dangers are intensifying countries like china will squeeze north korea more effectively and thereby give us an economic way to push towards denuclearization that seems to be -- >> it sounds like countries are backing off in terms of dealings that they'll get into with north korea.

>> i'm not totally defending his approach, but there is the potential logic to it, and if there also is a combination of that with a plausible negotiation strategy at some point in the near future, this all could actually make some sense. >> philosophically it's hard to figure out what the right path it for the united states in these. there's leadership, and then there's appeasement sometimes. i'm wondering what gets you in to world war iii it can be being too aggressive, but then again, richard haass wrote a book about the last eight years.

>> that seems like it's moved us you could make the case that that's moved us towards world war iii, and then the takt that we're taking now is the only thing that was left almost i don't know >> the loyal opposition saying that about the sitting president. even you it are not necessarily saying that it's a slippery slope to world war iii there's two ways of getting into world war iii. appeasement and leading from behind and, you know, remember the president already did order a strike into syria that was actually, you know -- that was aggressive, and that was not appeasement, but it actually seemed to work a little bit. didn't it? terms of chemical weapons and assad? >> i think the symbolic effect

largely symbolic effect of that strike was not the kind of thing you can translate into a useful option in north korea. >> on the north korea, i think you're right both parties and presidents going back 25 years have essentially tried some combination of cajoling and negotiation. i've also supported the spirit of that myself what there hasn't been is a credible way to apply economic pressure on north korea.

>> coming up, final thoughts >> you're okay, aren't you final thoughts for today from -- my god final market thoughts. you look fine. from gustoes mohammed el arian witness katy perry.

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>> mohammed el arian mohamm mohammed, before you go, let's talk more about what to expect from the fed you don't think the fed is going to mess this up? you're worried about the other central banks out there, but would that change if there's a new fed chairman >> i don't think it will change if there's a new fed chair and a new vice chair i think the fed for now is on automatic pilot. it will raise interest rates whenever it has an opportunity to do so without disrupting markets. >> don't get too excited about the global synchronized recovery it's not yet has deep enough roots. and take seriously the insights of richard thayler about how we make decisions because we tend to make repeated mistakes. try to understand his work is incredibly accessible and very important for investors today.

>> is it does care it's going to go very, very carefully and gradually. >> it's about an a pleasure to see you. >> thank you >> thank you, mohammed we appreciate it >> thank you very much all right. coming up procter & gamble shareholder vote is tomorrow we'll take a look at what it means for the stock. then, later, would you give up your television to watch shows on a mobile device a new study showing that your home tv is slowly fading away. not in my house. none of my ten flat screens are fading away. the details straight ahead "squawk box" will be right back.

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zplienc >> procter & gamble proxy fight. the battle culminates tomorrow in a shareholder vote. we have the latest on the fight between the company and nelson pelts. >> tax policy showdown we'll debate the controversial proposal to end state and local tax deductions with alex from

aei. >> plus, new data on the way americans consume television turns out bigger isn't necessarily better the third hour of "squawk box" begins right now ♪ so get ready ♪ get ready >> live from the most powerful city in the world, new york. this is "squawk box." >> good morning. welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernan along with becky quick. the futures right now are indicated higher again. up almost 30 points now. the s&p up two and five-eighths. overseas in europe nobody really has the blues necessarily for a monday not too bad. i don't like mondays people have said that before did you have trouble this morning? it's tough because of us >> starting.

once you're up in the air, weeks rolling. we're on our way >> it helps to get up early on saturday and sunday. >> which i do. i can't flip my time clock anymore. >> it's too hard it's hard to stay up late friday night and then it's hard to go to bed early >> i was up at 6:00 a.m. sunday. >> yeah. >> all right let's get to the top stories of this hour in political news. the white house releasing a new list of immigration principles it's part of a proposal to replace daca that obama era program that protected nearly 800,000 dreamers from deportation and also allowed them to secure work permits here in the united states among the items on trump's list, money to fund a border wall. thousands more immigrations officers and a crackdown on unaccompanied minors who enter the united states. new this morning, richard thayler has won the nobel economics prize. he is a professor at the university of chicago, and he won the prize for his contributions to behavioral economics. you just heard us talking about him saying it's very easy to understand a lot of his science and that he is recommending

people take a look at it >> also, several pieces of news regarding general electric this morning ge has elected ed garden to its word of directors you may remember trian first took a stake in october of 2015 for $2.5 billion garden says that he is disappointed in ge's stock performance, but still believes it's a good long-term opportunity. he is also announcing several economictive changes, including the impending departure of cfo jeff borenstein. he will be replaced by jamie miller, who is currently the head of ge's transportation business >> looking to see where it was to get an exact price. >> october 2015. >> october of 2015 wasn't too much different. all right. a few stocks to watch this morning. honeywell will spin off non-core assets and create at least two new publicly traded companies. that's according to a reuters report quoting people familiar with the matter the report says honeywell is hoping to unveil a plan as early as this week >> wells fargo -- look at that stock. is that the one we were talking

about. >> that's honeywell. >> that's honeywell's performance. >> he has a problem with that performance? >> as well as a few other stocks >> he needed to be in ge >> wells fargo upgraded johnson & johnson from market purchaseance to out performance. seeing solid performance from key drugs as well as bottom line benefits from its acquisition earlier this year of swiss biotech company actellia where. >> frokter & gamble shareholder vote is set to take place tomorrow after months of -- the company's shareholders will decide whether or not he is going to be getting a seat at the table. leslie micker is it here and she los angeles more right now leslie, go am. >> good morning, becky at this point it's largely like a chess game, and the king pins are those that are the index funds, and, you know, nelson peltz has the support of big investors like yackman and -- that may not be enough institutional investors like those tend to vote with activists, but retail investors often side with management index funds, however, can be more of a wild card. p & g shareholder breakdown

looks very similar to that of dupont's when peltz lost a proxy battle there in 2015 index funds voted for management and tipped the scale that way. p & g's shareholder base isn't an even bigger uphill climb for trian because of its large retail component, and that is where peltz has made a concerted effort to go after individual p & g shareholders with ads in local papers and tv programming. especially in cincinnati where p & g is based and has a large retail contingency there that helps explain why both sides are expected to spend upwards of $60 million on one board seat no doubt it's going to be close tomorrow, guys >> so we may not know until late -- >> probably noon-ish we'll have a good idea of who is coming out top for this one, and a lot of people have been talking with some sources this morning about, you know, what the announcement with ed garden's seat on ge means for this current proxy battle.

it's unclear at this time whether that will sway those key pivotal index funds towards the p & g side or the trian side the timing is interesting because they come out the day before this major proxy battle i think the situation with ge is quite different if you saw the stock chart earlier. it was largely trending downward p & g's stock price has been trending upward over that same amount of time i don't know if people will be really comparing the two >> when nelson peltz was here. are you gone if you don't get this board seat, and he said that was a complicated question for him because he doesn't want to indicate to people that it doesn't matter if he gts a board seat in the past, though, it hasn't necessarily meant that he has gone away. >> exactly with dupont, for example, he lost that proxy battle that was the first proxy battle he ever lost as far as i know, it's the only one he has ever lost he has stuck around, and then all of the changes he was hoping to be implemented were actually impolicemened and, you know, at delivering alpha they had a great panel with the current ceo

of dupont, ed green, where they talked about what it was like to work together. snoo let's talk about it let's bring in nick modi >> what are they so afraid of in terms of the one guy, and how is it different than general electric it's ins lar i'm from cincinnati. i know this country. very ins lar very old-fashioned that way. one guy in thesize of that board would make that big of difference what is p & g thinking >> yeah, look, we've actually been conscious on proxy for

eight years. an activist stepping in four, five years ago made a lot of sense. david taylor, you know, we've been writing in our work that he actually is an activist internally i mean, p & g, you're right, has been ins lar, but they've definitely made a lot of changes. they have hired people from the outside. >> this whole debate, you know, i think it's relevant in food and beverage because i cover beverage, and i can definitely see locality and preferences at the local level. when it comes to products that clean and, you know, there is something to be said about global brands that work. procter has the best products in the marketplace, and you can see that in any consumer report you look at. tide cleans better than most detergents, right, and tide is gaining market share you think about the price premium, and that is a great anomaly to what nelson peltz is talking about about local brands in terms of the operating

structure, i think if p & g were to go through another restructuring and reorganize the way nelson peltz wants, you'll have basically a one to two year gap of just really tough fujdss. what is procter worth as a stock? right? no one is talking about that we're just talking about headlines and this board seat and that board seat and this paper and that paper the reality is we think procter is overvalued regardless of the scenario we think they're discounting already 5% top line growth in the stock.

>> i think he has put out a price target pepsi. denone, state street, lazard wendy's. i don't see a single one for p & g. what's it worth? what does he think it's worth? >> when you go et to a size like p & g, the law of large numbers hits a lot of these companies. i don't know if the answer is trying to go back to, you know, to -- what's the name of that stupid soap? it's $150 million. you get 20% growth on $150 million, and it's another .1 of a cent to go back. how do you go back to rejuvenating procter & gamble by trying to go back and built all these small brands it's like you're stuck with tide you're stuck with pampers and crest. you got to -- it's -- you know, it's -- by getting that big, it's great

>> when a company can provide innovations where the consumer sees value, then it's a company -- this big brand or small brand debate goes out the window joe, i would say it's all about do you have relevant brabds or not relevant brands? i think that's the way the consumer makes a choice. >> do you know what to do with p & g, and is it possible with something that big to all of a sudden get, you know -- to double earnings per share growth without doing it on the expense side is it possible to do it just for managing it better or innovation >> i think there are two things. there are two things

>> if you really wanted to fix it immediately, i think they need to narrow price graph which is would really hurt earnings and their existing shareholders. it would be great for new shareholders then they could just buy on the dip and things would be great. the tide pods a great example. the problem is i think going back a couple of years, the ini don't he vegas management i would say didn't really do the best things for the business >> they lost this china diaper premium china diaper, and it's doing quite well >> what do you think is going to happen did you place a bet? >> it's going to be really close. >> is it really going to be close? >> it's going to be tight.

>> you can pretty much count on that retail investor to vote your way a lot of them are -- i think 7% are part of the company plan, so, you know, they are kind of p & g lifer. they're going to vote with what management wants instead of this -- to them a stranger >> i do think it comes down to index funds and which sides they take, and speaking with people yesterday and today, it seems like they're still a wild card at this point, and so i don't think we'll really know until tomorrow around noon >> it's just a coincidence when they sold pringles that that's when things started -- i think -- >> i'm not sure i wanted to bring those back i wasn't sure what those were.

>> think that was a good -- i don't know really not they're weird. they're constant >> can't just have one >> only potato ares? definitely >> potato-ish. >> just like mcnuggets are chicken-ish. i'm word about the "ish. anyway leslie, thank you. >> thank you, guys >> i think that was a good move on the pringles. you can get the weirdest -- shrimp pringles and -- >> sour cream. >> salmon pringles >> i have never tried those. >> anyway. >> nick, thank you >> the p & g proxy battle ends tomorrow with the shareholder vote we'll have full coverage throughout the day

>> when we come back, the controversial part of the gop tax plan eliminating state and local deductions aei's alex brill will join us at the bottom of the hour then the squawk ceo call is in session. the chief executive from therapeutics md will talk about the move from the nyse to the nasdaq right here. stay tuned you're watching "squawk box" on cnbc

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>> the nasdaq -- $49.29 unchanged. >> well, we've got the friday jobs report. now we've got some firms updating their gdp forecast after that number. also, got everything with the new nobel prize winner for economics. >> lots to talk about. look, the jobs number -- the jobs number took a whack, right? we saw that.

>> right >> why would anyone update their gdp number on a number we said doesn't matter >> because there is other data that came in that day and plus, you get an tanch hourly earning. stuff that feeds into -- remember, what we're following with the rapid update are the things that feed into the gdp calculation, and we had a whack to the jobs number what didn't get whacked? wanlz didn't get wacked. wages did pretty well. they were flattered, by the way, by the hurricane data because of the mix of jobs. then the unemployment rate, which the dlx specifically said was not affected by the hurricane. that came down, again. the big story i'm telling today today is how impressed i've been with gdp despite the hurricane i want to show you our rapid update, and we have i think seven or eight tracking forecasts in here. it's still running 2.. we were up 2.8, and then look at the bottom number there. we did 3.1 there was every reason to think we would have a fall-off back towards the 2 %. we didn't do that. now we're running. you see the range there as 1.5 to 3.2

still a wide range >> that's a wide range >> still the september data to come in that could be more effective, but so far so good. we're only off a couple of tenths let me show you, and you can play the gdp game at home. pick your favorite forecaster and go with it moody's who puts the survey together for us, they're on the high side at 3.2 mark would be whacking it down more if it was really coming in week bank of america, 2.8 atlanta fed, the body follows to the middle of our survey at 2.35 goldman sachs down at 2%, and high frequency economics, that's jim o'sullivan down at 1.5%. the other thing you can gauge from the gdp is let's look at what happened with the fed funds prolkt where did they go? they went up they believe the fed is going to look straight through this number, and you can see we're running about 80% this morning probability of that december rate hike, and only a 1.6 for november that's really where we are in terms of the hurricane so far we're not seeing big

whacks to the gdp data, which makes me think that the economy may have been even stronger up towards the 3% number if not for the hurricanes >> richard >> richard is -- we've had him on this show one of the most interesting picks out there. richard has led an insurrection into modern economics, which decided, you know, everything -- all the models are based on people acting rationally richard comes -- >> people don't act rationally >> people come in and make all kinds of decisions there are crazy reasons they make decisions you would buy -- you wouldn't buy a sweater for yourself your wife comes along or husband comes along and buys you that sweater, and that's perfectly fine we keep separate accounts in our head we make different decisions for crazy reasons. the way a question is asked and people's letters that say your neighbors are paying your taxes -- their taxes you are more likely to pay your tacks.

when there's a sign at a national park that says people are leaving the petrified wood, people -- other people leave the petrified wood the reason for making -- one of the great things, one of the great opportunities i had meeting with him, richard did a -- not with cass, but another study on the nfl draft that's changed the way the draft happens. he found that people dramatically overpay for those top picks relative to the value. >> money ball. it's money ball. >> it's money ball these are a lot of the concepts of money ball that we have all of these prior decisions inside us affecting us and making us not act rationally >> basically we're idiots. he figured that out. >> i think there's a whole lot of human and emotional things at play by the way, you see some of the m&a guys some of the hedge fund activist guys going we have this inc. this they call -- i forget what he called it when you are heavily invested in something that you have gone down this road and you start making decisions way beyond the value of what something is worth. >> we want you --

>> very excited about this >> we want you to -- i want you to mention when he is on that it's not really -- it's called a nobel prize. >> there's nothing to do with it in fact, if you read about it, it will say it's not exactly the same, but it is announced with the other nobel prize laureates, and they actually do get to go to the same ceremony to get their award, but it's really -- i'm sorry. economics is not really a science. ba humbug. >> rain on anybody's parade. >> it's not a real -- >> we're excited because richard thaler is someone very closely followed and who has been -- >> your life's work, it doesn't really rank up there with medicine or physics. >> what's the nobel prize? >> where is your price >> talking heads >> the value for what you add. >> i win one every day

>> you want to talk about a market failure right there >> economics is a dismal at best. a dismal vice president pence throwing the flag at the san francisco 49ers. president trump tweeting this morning details after the break. then later, a tax battle in washington american eerntprise's alex brill will join us "squawk box" will be right back. alerts -- wouldn't you like one from the market

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>> mike pence abruptly left yesterday's colts 49ers football game after about a dozen members of the 49ers team knelt for the national anthem. president trump tweeting this morning. the trip by @vp-pence was long planned. he is receiving great praise for leaving the game after the players showed such disrespect for country. a senior official said the vice president had been hopeful that all of the players would stand >> new overnight media mogul, you see things when they happen. harvey weinstein has been fired from the company he ceo founded amid sexual harassment allegations. the weinstein company's board revealing that the co-founder's employment has been terminated effective immediately. it happened three days after the "new york times" published reports of decades of sexual harassment and allegations against weinstein. a source familiar with the matter says that members of the weinstein company's board have already discussed changing the

corporate name even though his brother is still there >> he was the one picking the films and doing so much of the marketing around trying to win an act my award. >> millions of dollars spent -- >> reaching out to the academy trying to make sure. >> the members and geg almost kamtd really call them bribes, but one of the other interesting things i thought, not many people stood up to him, but did he see daniel day lewis? did you see that >> i didn't see that one >> daniel day lewis. i mean, he is an actor's actor, obviously. >> doesn't care what anybody thinks anywhere. >> he said harvey, you're only redeeming qualities are that you can read scripts and decide what would be a good movie. other than that you are a

horrible human being basically just said that >> nathan lane said that too zbloog you can't hurt me because i don't have a film career >> all right when we come back, one of the most controversial parts of the gop tax reform proposal. eliminating state and local tax deductions we'll talk to alex brill from e eranntpre institute. that is next that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. somewhere along of self-discovery: a breakthrough. ♪ it's in our nature to need each other.

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good morning welcome back to "squawk box. live from the max market site in times square among the stories, front and center gasoline prices are down 7 cents over the past two weeks, according to the latest lund birg survey. that puts the arng price at $2.56 for unleaded regular analysts trillby lundburg says she expects further drops in price as we move into the winter season bond insurer assured guarantee has withdrawn a lawsuit. the it challenges the legaldy -- assured still believes a fiscal plan is illegal, but it took its

action because of the impact of hurricane maria on the island. assured guarantee and fellow insurer mbia could be on the hook for as much as $9 billion in bond holder losses. blade runner 2049 topped the weekend box office, but the sequel to the 1982 original took in only $31.5 million no nrt american ticket sales. that's less than expected. the film's producers had been anticipating an opening of more than $40 million the state and local tax deduction has taken center stage in the tax reform debate it is the largest itemized deduction filed by taxpayers alex brill thinks repealing it would raise $1.4 trillion in new revenue over a decade. alex brill is resident fellow at aei and he joins us right now. alex, good morning thanks for being here. >> good morning. thanks for having me on. let's talk about this. a lot of people have heard about this they know it's called salt what it really is taxpayers who

are paying local or state taxes can then take a deduction on what they've paid from their federal taxes so that their overall tax bill doesn't soar too much it benefits people who are in blue states, high-paying tax states like new york, new jersey, connecticut, illinois, california how did it wind up in the tax bill to begin with -- or in our tax laws >> sure, it's been there from the beginning, quite frankly there's an argument that it relates to federalism. that the federal government shouldn't be impeding on states' abilities to tax their local residents. actually people talked about taking it out in 1986, and that reform, but it's been there from the beginning. it's there today i think it's time for it to go >> so states rights sounds like something you would normally hear conservatives defending not so in this case. you think it's time to go, but it's going to be facing a pretty difficult uphill battle in terms of trying to convince republicans in those

congressional voting blocks to go ahead and do something that very likely could hurt a lot of their constituencies how do you think it work out politically? >> well, lawmakers are going to have to look at the deal in its entirety any time you start to break down tax reform into the individual components, they're going to be people who are going to be upset. quite frankly, we're seeing that we saw that over the last year with the border adjustment tax that's no longer part of the plan this is another provision that raises a similar amount of money, and some taxpayers will be adversely affected. that's actually part of the definition of tax reform it is eliminating and changing the winners and losers arrangement and kraelgt a level playing field. >> right >> congress mern who represent people who are going to be losers to go ahead and vote for that >> so my sense is that inthose congressional districts, the republican districts in the blue states where this is going to hurt a little bit more, you know, there are other things in this plan that are going to be good for their constituents overall. we're going to see lower tax rates. we're going to see a larger

standard deduction we're going to see people in the middle class better off. lawmakers are right to sort of raise the concerns, but the impacts it has on them locally or at the end of the day if they put together a comprehensive plan that's good for the economy, i think they're going to get a lot of support. >> what do you think it will mean for a state like a new york, like a california, like a connecticut? what happens to their state economy at that point? a lot of those states you think about illinois and new jersey. they've got really high pension liabilities at this incident positive anyway. the states have not been in great shape. >> sure. i think it will over time result in changes at the state level. the chachksz that we're going to see is the states are going to reinstrustrukinstruct structure raise their revenue. they're raising subsidy by imposing high marginal tax rates on high income individuals when that subsidy goes away, they themselves will go to a broader base and lower rates in order to generate the revenues that they need >> what happens in the meantime? i just think about that. you think this is something that

gets rolled in, or you think this is something that would work better if it were eased in over a period of years >> taxpayers can't claim more than, for example, 6% of their income as a deduction in this regard the next year 4% the next year 2% >> so alex, is american enterprise aei -- do you think it's a good idea to do tax reform in and fashion that the republicans are talking about here is that something aei is backing giving support to. >> i certainly can't speak for my colleagues at aei, but i can tell you on a personal level, i'm a strong advocate of tax reform i'm a strong advocate of many of the principles that we've seen outlined the concept of having a broader base and lower rates >> you don't consider yourself to be a bad person, do you

are you greedy do you like just lining the pockets of your rich friends is that your motivation? >> i actually think that what we've seen from republicans while vague at the moment, i think on the individual side, we're not seeing large tax breaks for the wealthy what we see is a big tax cut for corporations, and then there's a debate about who benefits from that >> well, you know, corporations are mostly fat cat ceos anyway i'm leading somewhere with this because it's -- you know what the fight is going to be here's larry somers today. >> leading the witness >> why america's mad tax reform plan is bad economics. here's my point. when the democrats -- i said this earlier when the democrats did obama care, they all are on board. that's what they do. they don't care. they're not going to sprinter off. now you have the republicans with a president that some people think isn't really the head of the republican party obviously. you are already seeing that

these guys are at least waffling on certain aspects of this now, you are going to have larry somers, and you are going to have the enablers in the main stream media that are going to be -- you know whose side they're going to be on in tax debate, right? you are seeing it already. you think the republicans have the backbone, some of them, to vote -- to do this i mean, how do you handicap it i'm not convinced that they do there's at least three or four of them that are going to wimp out. >> i definitely agree that there's a battle ahead there's a long road ahead. there are folks who are on the fence. there's no question. i think we need far more leadership from the executive on helping lawmakers make some of these hard choices we haven't seen that materialize yet. >> you mean from president trump? >> from president trump, from the treasury secretary there needs to be more engagement, and there needs to be a little more clarity about what the plan is, and i think -- i'm hopeful that we'll see that. at the same time i would note the republicans have chosen this battle they have chosen to pursue a

strategy where they're taking away some of the good kbris in the tax code in exchange for a simpler, fairer rate they didn't have to pick this battle they believe the tax reform is going to be good for the economy. it's not going to be pretty. i don't know if they -- you know, they just don't seem to have the solidarity when push comes to shove that the democrats are able to exhibit. as they did with obama care. something like that. we'll get it done. they will line up finally to do something. we saw with the repeal, they don't on the right right? >> fair point. there's a road ahead of them, but if they're drifb ven by the economics and the opportunities for fairness, i think that there's a good prospect early next year. >> be like jelly you know, like -- i don't know spineless. >> spineless

spineless, alex. that's why aei has to help get arthur brooks on the circuit. send him over here >> i'll see him right now and send him this way. >> thanks, alex. >> coming up, it's tough love. squawk ceo call is in session. the chief executive from therapeutics md joins us to talk about the company's move from the nyse to the nasdaq it seems like a no brainer to me "squawk box" will be right back. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing. your bbut as you get older,ing. it naturally begins to change,

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>> welcome back to "squawk box." we've been watching the futures this morning, and they've been picking up all through the course of the morning. giving background here still in the dpreen. dow futures now indicated open up by 17 points. s&p futures up by 1 .5 the nasdaq up by 12.5. you want to take a look at the price of gold this morning not something we often check you are going to see this morning that gold is up by about $8 >> biotech company therapeutics md is leaving the new york stock exchange to list on the nasdaq this marks the 304th transfer to the nasdaq since 2005 pushing the total market cap of companies that have switched to the nasdaq to more than $1 trillion joining us now robert we

estimate between four million and six million shares of buying will happen just by switching to the nasdaq that we didn't have in the nyse. >> do you think it makes more sense? that's not a lot of stock to a big company. >> right we're about $1 billion market cap. it's material to us. on top of that spechks to biotech, pharma, or clinical research, the in a case seems to have the indexes being covered we didn't that as much as we loved it >> index buying seems like it has grown exponentially over the last decade. what are you seen? >> it is the ranl. low fees not actively managed money is the trend. the fees associated with that just aren't pulling the weight like they used to. you'll see a lot of the bigger companies that do manage money that we go and see on the buy side quite often they just don't have the growth that they used to. the indexes are really shooting up

>> for the purpose us it was a wash the only reason. we really like the nyse. fee trurkt was similar it was great support the indexes are over at the nasdaq we wanted to come to the party >> we broadcast from the nasdaq. some of our other -- we have competitors at the big boards. some of other shows on cnbc. >> you haven't played softball in a while >> it's almost split evenly. squawk on the street and closing bell versus fast money is down here >> we get all the traders. >> right >> that's why i'm having trouble giving you a tough interview here because i think the nasdaq is a -- i like the leadership. i like how did that happen

you have products that just happened to be in that space, and then you just added to it? >> we saw the void co-founder brian is an ob-gyob-n i just saw the lack of resources being invested women nowadays spend half their life in menopause, yet none of the big pharmaceutical companies are refrping natural horm observes or things to alleviate the symptoms associated with it. what do you do when you are an entrepreneur you go with a competition, and we've been really successful >> we hear aboutasso a lot that's one of the things that happens. bones and so forth there are other things that replacement therapy can do >> we have a drug that's submitted to the fda for approval for volvo vaginal atrophy. half of all women will spend half their life with an atrophic vagina the estrogen used to treat this, with every single medical society, they're from the is 19, 1980s, 1990s we've been able to come up with

a product that is 175th the strength of a dose of the leading seller, and on top of that it's placed in the vagina and our data suggests compared to the placebo, it's not getting into the blood >> which is really important because too much estrogen can lead to potential cancers or other issues >> absolutely. these are chronic progressive diseases where women will be on these drugs for the rest of their lives. half of all women will have moderate to severe vaginal atrophy. we modernize something that doctors are comfortable with, and the market is massive. there's 30 million women only 7% being treated. it's $1.7 billion in the u.s >> we don't even hear about these ierkz, let alone the treatments for them. >> we're here for you. >> how do you get more attention? it's a tip cal cyclical cycle. >> are you ringing the bell? pressing the -- >> we are today. we are today

>> how are you feeling have you seen what you are -- >> i'm a little sore >> you know what has to happen exactly. >> victim ago hey reasonable doubt auto time getting past 29 to 30. you know -- >> no pressure >> take a look beforehand. get all your ducks in a low. okay it's embarrassing if you screw it up. >> i do have an honest plug for you. my wife, who is here, can verify my morning routine, i mean, if you are a farm suit cal ceo, and you want to know what happened quick when you wake up in the morning, i turn you guys on. as i wake up and dust off across >> i was going to say sorkin, but when we return, new dieta out showing how americans are watching tv and no surprise viewing on smartphones is trending higher. that story next. people don't invest in stocks and bonds.

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>> a new stud zi shows more consumers are moving away from traditional tv viewing, making

the shift towards mobile devices. a lot of people are happening in the world that i can't understand i know you have the details but a 70-inch flat screen, really, i've got to get rid of that? i love it. >> you don't have to get rid of it but no matter how big that flat screen tv in your living room gets, viewing on phones is still going to be on the rise. a new study predicts that by 2020, half of all video viewing worldwide will be off of your tv set and on mobile devices, that's an 85% increase in 2010 and half of that mobile viewing will be on smart phones and the younger you are the less likely you are to be watching television in the u.s. over 60% of 16 to 19-year-old viewing is on demand that's more than double the amount in 2010 people in their 60s spend three quarters of their viewing with lifeli life linear tv.

recently expanded free hbo and t-mobile started offering free netflix to the unlimited family plan customers as well a third of consumers will take viewing into the next dimension with vr and see a vr head set prices come down as they make those investments, joe >> all right, i don't believe it really half by 2020 that's unreal. it's so -- >> think about all of the opportunities there are to watch when you're commuting and you're on the subway and maybe even watching a video clip on say youtube or facebook when you have something else playing on your big tv set. some might be simultaneous. >> you're right, it's going to happen and i can't stop it i've tried anyway, thank you. the world keeps spinning around. thanks, julia. >> when we come back, the

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subprime lender one main financial is up for sale onemain is in talks with several interested parties but there's no guarantee any deal will result i almost called it -- >> there's no space between it but onemain. >> if you're going to name your stupid company something, it ought to not be so up in the air what it could be walmart, returning an item takes about five minutes but walmart wants to slash that to 30

seconds. next month it will roll out a program called mobile express returns for items ordered on the website and few months later integrate instore purchases into the new return system. >> shares of drug retailers tumbled on friday after reports that amazon was considering selling drugs online an analyst in frequent squawk guest host anna gupta wrote to her clients that amazon is in discussions with mid market pharmacy managers to assess the drug retailing market for entry. according to an e-mail from amazon viewed by cnbc, the retail giant will make a decision about prescription drugs by thanksgiving. >> martin shkreli doesn't seem to mind prison life. the so-called penning a letter to a friend detailing time behind bars as he awaits sentencing in his words, things are not that awful here. he's apparently reading, playing some basketball and chess.

he added i'm teaching these prisoners new things and hopefully some ways to change their lives. but shkreli did note some of the downside, his cell mate snores and his bed is cramped and uncomfortable. >> when we did the story a few hours ago, something wrote, shkreli has friends? >> remember, madoff is -- >> fop you lar in prison too because helping everybody financially. >> i don't know. three square i guess, but i don't know >> three square meals. >> yeah, i don't know. >> it would be tough. >> no thanks. >> we also talked about this earlier but for those who weren't here then, dove dropping the latest ad campaign after drawing lots and lots of criticism. it posted a three second ad to facebook showing a black woman removing a brown shirt to reveal a white woman in a white shirt lots of people were outraged calling it racist.

the company says it's committed to beauty of diversity and admit they missed the mark they missed the mark, putting it plig politely. >> were they trying to be insend dairy -- >> i don't know if they were stupid or -- >> remember united colors of bennetton. >> right now, it's time for "squawk on the street. ♪ >> good morning, welcome to "squawk on the street. i'm david faber along with melissa lee. jim and carl have the day off. stock markets are open despite the holiday. bond markets are closed. let's look at the futures, europe also kind of mixed. you can see the ftse is th