dow 23,000 the blue chip index closes above the milestone for the first time ever your trading day set up straight ahead. new this morning, china reveals its economic growth rate as the top political leaders gather to discuss the future and breaking news, catalonia's leader fails to drop a bid for independence, now spain looks ready to take action it's moving the market thursday october 19, 2017, "worldwide exchange" begins right now.

♪ good morning welcome to "worldwide exchange" on cnbc. i'm sara eisen >> i'm mike santoli in for wilfred frost. that's a good wake up, beastie boys happy anniversary. >> not so happy anniversary. >> when the dow is at a new record it eases the sting. today marks the 30th anniversary of the black market crash, when the dow dropped 23%. throughout the show this morning and all day on cnbc we'll talk about the differences and similarities between the markets then and now >> hard to imagine a lot similarities with the market climbing, though '87 was a strong year going into the crash. >> it was a five-year, almost straight up run until a couple months before the crash. that is one of the similarities.

a lot of other stuff in the back drop, does not really fit the same worst day ever for a stock drop. the futures this morning, we are getting influenced by what's happening in europe. european stocks are lower, so is the euro we'll talk about the political risks there heating up around catalonia. dow futures are down 48. ibm added 89 points to the dow yesterday by itself. the s&p 500 futures down 9 nasdaq futures down 33 there is a softness. as i mentioned, it's bleeding over from europe ten-year treasury note yield, we'll see how extreme the safe haven buying gets. not sure about the risks around europe clearly catalonia has a streak of independence. today was the deadline that the leader there was set to make a decision on, whether he would go forward with it.

it appears they will spain will have to impose action for a rule of law. we'll take you there >> certainly a dose of caution in the markets bond yields are lower in europe. it doesn't seem like a panic move, but people stepping back to see how this phase of things plays out. a slew of economic data out of china overnight. third quarter gdp growth coming in at 6.8% in line with expectations. september production and retail sales firmer fixed asset investment was a disappointment so it was a mixed picture in terms of the numbers coming out of china the hang seng down almost 2% shanghai down about a third of a percent. south korea weaker japan to the upside there. we'll have a live report from beijing coming up. >> some strategists were wondering if it was possible to

pit o put out worse news on the economy amid the party congress. this was better on the gdp front. breaking news out of europe, spain's government says it will move to suspend at locatalonia' autonomy half a percent decline on the dax. spain is what we're watching carefully, down almost 0.75% italy is down worse. france down 0.4% also had some decembeisappointig sales numbers out of specific companies, i'm thinking unilever, ftse 100, worst performer there. as for the currency trade, the euro is weaker on the catalonia risk -- just turned around 1.1804 as for the dollar/yen, a bit weaker, seeing a risk-off trade. we'll see if that lasts throughout the session a little buying of the yen

thereful. >> a bit off the beat and path with the currencies. new zealand dollar down on some election results >> another 30 something maybe leader over there. as for the broader market picture, oil prices down a percent. 1.3% brent crude down a percent natural gas is higher. gold on the flip side, the dollar is backing off the recent moves higher that's helping gold. it's up 0.2% that's opposite of what we've been seeing in the trade to the agenda, a pair of economic reports to watch. weekly jobless claims at 8:30 eastern time along with the october philadelphia fed survey. as for earnings, travelers, verizon, bank of new york, melon, blackstone all report before the opening bell. paypal after the close to the big corporate story, big leadership shakeup at

american express landon dowdy joins us with the details. >> good morning. american express ceo ke ken shennault will be stepping down after a 17-year run he was one of the first african-americans to run a fortune 500 company when he took the helm back in 2001. this after the credit card company posted better than expected third quarter results he has worked to turn around amex after the company lost its partnership with costco. and under his leadership the firm expanded beyond corporate and wealthy customers to serve a broader client tell. he wi clientele on the call, the incoming ceo said the next chapter would be about enhancing brand, partnering with others to stay ahead of the curve look at the stocks, shares of

american express up 60% in the past five years, down more than 1% in early trading. back over to you >> some articles talking about how he was pioneer, and it shows a lack of diversity at the top >> 16 years ago, absolutely, a big deal in a very kind of blue chip american company at the time interesting the transition now, when the earnings were reported last night, they had this news on top of it it's not as if people didn't realize there was a succession plan underway, but nobody thought it would be yesterday. so a bit of an adjustment like it wasn't that the ground work was laid carefully for this move fended off an activist pressure a couple years ago >> fended off the costco loss. that was a big hit

the biggest challenge, i think, is the chase sapphire card that's what everybody including us, that's what we have. >> they want to compete, but they don't want to have a race to the bottom in terms of how generous the cards are jpmorgan chase has backed back a bit on the most aggressive rewards offered. ebay's third quarter profit in line with forecasts revenue edging past estimates, but the fourth quarter could miss united airlines third quarter profit falling less than forecast the carrier had to cancel thousands of flights due to the hurricane and bad weather. united says it will continue to increase capacity to defend market share don't miss united's ceo, oscar munoz on "squawk box,"

8:00 a.m. eastern. final bids are due today for the cities vying to be amazon's second headquarters. amazon has pledged to invest more than $5 billion, hire 50,000 people for the new headquarters they will announce the winning site next year the race is on >> seems like a quick process. they just put out the request for proposal not long ago. >> it sort of reminds me like the fed chair race or something. everybody has their nominee, going for interviews, presenting their plans what has been quiet is the incentives. who will offer the most. >> everybody is talking about how wonderful the airports are and colleges are other stocks to watch, the fda approving a gilead cancer therapy six weeks ahead of schedule the treatment for adults with advanced lymphoma. blue apron is cutting about

6% of its total work force the meal kit delivery company's valuation dropped by more than 50% since it went public four months ago it's been dealing with rising costs, declining customers and the threat of competition from rivals like amazon that stock lower bay half percent. adobe shares are rising this morning. the company offering upbeat full-year earnings and revenue guidance at its analyst's day yesterday. china's q3 gdp growth came in in line with expectations yu eunice yoon has more on that nks t n >> the q3 gdp numbers were at 6.8% this is slightly slower, because they had been reigning in the

property market and managing debt risk. that number supports the chatter we've been hearing at the party congress which is going on behind me at the great hall of the people we've been hearing from president xi and other officials about how the economy is in good shape. however what was really interesting today was some of the comments that we heard that were off script. because the central bank governor was also here he spoke on the sidelines and warned of a minske moment, of a potential collapse in asset prices that is sparked by not taking care of debt and other currency pressures he also, just to give you background on who he is, he is probably one of the most revered policymakers here. he is an aggressive reformer and he also has been in the job for 15 years the longest standing central bank governor that china has

had. this man has weight. he also -- not only did he mention the concerns about the minsky moment, but also said he's worried about the household debt, it's rising too quickly. and also the corporate debt levels, he said, are relatively high he said china needed to prevent what he described as a dramatic adjustment guys >> eunice, thank you very much sounds like he's echoing some big picture concerns many investors around the world have been voicing about china thank you very much. when we come back, european political crisis is brewing. catalonia threatening to declare independence, and spain looks ready to go nuclear, so to speak. the global markeimicatnst plio up next. "worldwide exchange" will be right back

the leader of the catalonia threatening to declare independence if spain does not offer talks. willem marx joins us from brussels with the latest this is impacting european stocks and the euro. good morning >> good morning, sara. we heard this morning from the catalan leadership in barcelona, they would encourage dialogue. they like dialogue, that the declaration of independence they made to their parliament was suspended, they were still seeking talks. the spanish prime minister has said in response they will invoke article 155 of the

spanish constitution that's an unprecedented measure where they could force a rogue, you autonomous government back in order. there are a few measures they have to go through, including dissolving the catalonian government, leading to presh elections, taking control of the catalan police, taking control of television stations that will require political approval from some of the coalition partners that rajoy has in madrid as well as political opponents. but things are moving forward quite rapidly. we expect an emergency cabinet meeting over the weekend the catalans have said if this moves forward, they would, as you said, declare independence unilaterally >> is mariano rajoy the prime minister there in brussels is that why you're there at this meeting? >> he will be here later on this afternoon. we'll try to pin him down with some questions we've been speaking throughout

the morning to spanish members of the european parliament a lot of them saying we want dialogue the only way they can see out of this is with fresh elections in catalon catalonia, but the european commission has said this is a domestic issue for the spanish to deal with we understand that mariano rajoy, when he meets with the other 27 heads of state later today will be asking that this is an issue kept off the table what are the market implications here anything for investors to fret about when it comes to investing in spain or europe, if spain does have the authority and the legal capability to put a lid on this crisis? >> from the banking perspective, it's about access to ecb funding. we've seen the two largest banks move headquarters out of the region

clearly investors looking at this option to remain in catalonia and they're getting leery. there's a bit of a spread between spanish and german bonds. if you're a business own ner that region worried about leaving the eurozone suddenly, that's a concern to you. >> willem marx, thank you very much, joining us from brussels the site of the eu summit where they were supposed to get together and talk about brexit negotiations, but this will overshadow some of that. in corporate news, unilever reporting third quarter revenue that did miss analysts forecast. the consumer products maker said sales fell 3% in the u.s results impacted by hurricanes in florida and texas nestle says organic sales growth rose more than 3% in the third quarter. that was in line with forecasts. the company expects growth to remain muted this quarter as it continues to struggle in its largest market, which is the

u.s. s.a.p. reporting third quarter profit rose 35%, but that missed forecasts. the softwaremaker invested heavily in its cloud business. s.a.p. raising the full-year guidance and expecting a recovery going into next year. the cfo was on "mad money" last night talking about from head wind to tailwind, and ibm adp says it is already making many of the changes requested by activist investor bill ackman. the ceo argues the changes are in motion but it will take time to see results shares of kobe steel rising today. toyota, honda and mazda all confirming they have not found issues from aluminum supplied by the company. earlier this month, kobe admitted to falsifying quality data for aluminum and copper products kobe steel stock bouncing a bit

today. mongodb raising its price per sar, vhare, valuing it at 17 it is expected to start trading on the nasdaq today. some m&a news, hearsthearsts buying rodale. hearst will gain control of the book publishing unit terms of the agreement have not been disclosed the deal is expected to close sometime next year. when we come back, deal or no deal? the president leaves washington scrambling as he walks back support for a bipartisan healthcare deal. stay tuned, you're watching "worldwide exchange.

your brain is an amazing thing.

but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. welcome back to "worldwide exchange." i'm sara eisen here with mike santo santoli. president trump reportedly to nominate joe sometiimons as heaf the ftc. he would have a hand in major mergers and scrutinizing business practices he also plans to nominate noah

phillips as ftc commissioner. the sec selecting brett redfern to run the agency's trading firm he is a former stock exchange executive. president trump walking back support for a bipartisan healthcare deal. edward lawrence joins us now with the latest. so, is this deal dead? >> sara, dead, not dead, maybe, maybe not. a couple days ago president trump wanted to see democrats come to the table and try to work out something related to healthcare that's seemingly what happened with senator lamar alexander and patty murray with a deal that both of them came up with. the president saying after the deal was sort of unveiled, saying this is what we have, said he could not support it listen to him in his own words

>> lamar alexander is working on it hard from our side if something can happen, that's fine i won't do anything to enrich the insurance companies. right now the insurance companies are being enriched, enriched by obama care like nothing anybody has seen before. i won't do anything to enrich the insurance companies. >> this bipartisan deal gives about 1$106 million in subsidie to try and keep some premiums down that money does go to insurance companies, which is what the president has a problem with it also allows people over the age of 30 to buy catastrophic health insurance with a higher deductib deductible and allows states to get waivers to manipulate the rules in the marketplace to tailor the marketplace for each state but the president said in the current form he cannot support this bill. >> i wonder where the middle ground might be here to get some money into the system but not have it categorized in the

president's mind or estimation as a payoff to insurance companies. is there anything in the works that might actually be able to thread that needle >> this is the problem, democrats are sort of entrenched, dug in, saying they do want to see the subsidies to lower the payments there are some worker -- there is some work going on behind the scenes with senator lamar alexander and patty murray to come together and fix something that the president could sign. otherwise congress will have to come and figure out an override of a veto, if it does come to that point try to get members of congress together so they have enough to override a potential street to >> why don't they just work on tax reform that's the mission at hand >> because i think the exchanges will blow up on some level they need to patch it up maybe >> but thanks in no small part taking away the executive order. edward lawlawrence, thank you vy

much. president trump expected to meet with janet yellen today as he gets near to picking a fed chair. ghbae"ilbe exchang wl rit ck it's not just a donation.

it's a warm blanket. it's a bottle of clean water. it's a roof and a bed. it's knowing someone cares. it's feeling safe. it's a today that's better than yesterday.

every dollar you can spare helps so much more than you can imagine. please donate now to help people affected by hurricane harvey. your help is urgently needed. the number of the day. 23 that's how many times the dow,

nasdaq and s&p have closed at record highs developing news out of europe, catalonia's leader fails to drop a bid for independence, now spain looks ready to take action. and central bankers on snapchat why the bank of england is on fire for use of the disappearing messaging app. it's thursday, october 19, 2017, you're watching "worldwide exchange" on cnbc. good morning welcome to "worldwide exchange" on cnbc. i'm sara eisen >> the throwback to '87 struck a cord with you. >> i didn't realize this was '87. >> yes the whole hour >> the best whitney song i'm mike santoli in for wilfred frost. today is the 30th anniversary of

the black monday market crash on october 19, 1987, the dow dropped 508 points, nearly a if% plunge there is that number, 23%. we're at 23,000 right now. this year we had 23 successive new highs in the major indexes so, you know, a lot of these things coming together, people asking about what's similar, what's different what are you telling them? >> more differences than similarities the crash of '87 was such a unique singular event. it wasn't as if we have crashes every few years. this was extreme, even beyond 1929 in terms of one-day damage. that's a major issue >> people point to the difference in just the market structure and the liquidity, the presence of etfs and it's so ubiquitous, index funds whether that makes it less vulnerable. >> it works both ways. in 1987 you didn't have that engrained sense that the fed would rescue the markets that happened after the '87

crash. alan greenspan was new as fed chair, he came in and said we'll stand behind the markets and the economy. that was the start of the central bank theme >> we were in a hiking cycle where the fed was raising interest rates the conflict with iran >> there were a lot of things. the dollar was collapsing. >> that's not happening. >> let's check on the global markets. it does look like a negative open you have the dow, s&p and nasdaq all on the defensive the dow looking at a 50 point drop that's narrower than the indicated loss a half hour ago it seems like we'll go back on our heels for the start of trading today. look at the ten-year note. also showing a bit of a risk off impulse. yields compressed a bit. not too much 232. just about 233 on the ten-year note very much range bound. >> today is the yellen interview

day. >> that's right. >> as for asian equities overnight, asia started off strong looked like it was following in wall street's footsteps. the nikkei climbing again, it's on a hot streak, at the highest level in more than a decade. hong kong backed off, 2% shanghai comp closing higher even with the gdp number showing growth, in line with forecasts early action in europe t has been waved down by this catalonian crisis. we'll see losses across the board in the early action for europe spain and italy getting hit on those. as for the currency market action, that was also spilling over into the euro flat at last check 118. it reversed some earlier gains there's buying of yen so maybe a breather in the rally.

112.71 is your trade 0.2% lower for dollar against the euro pound weaker, 1.3154 european leaders meeting at a summit brexit will be front and center. oil is backing off this morning. you can see wti down 1.3%. 51.35 a barrel brent at 57.42 it seems as if oil is backing off with stocks. gold is catching a bit of a bid. it has been on the soft side lately, well below recent highs near $1300 an ounce. now up 0.1% at 1285 per ounce. president trump expected to meet with janet yellen today as he gets closer to making that big decision on who should head the central bank joining us now from new york is the chief economist at netixis welcome back, joe. good to see you. >> thank you

>> seniors inveas far as invest concerned who would be the biggest shock? john taylor? >> yes that would be the biggest knee jerk, because many are misinterpreting the taylor rule. if we get some tax reform or tax cuts, which i expect will happen, given all the deregulation that the president has put in place, my guess is that mr. taylor will allow the economy to run faster than what it's been running at in terms of the markets, yes he was considered to be the -- more of the outlier than other candidates >> how would you characterize the economy and the path of policy that will greet whoever enders this job, assuming it's a new person beginning next year if we get the expected rate increase in december, do you think the kind of tilt to the

new fet share should d share sh to move things faster and normalize policy or wait and see how inflation plays out and the rest of it is the thing that ought to be done >> michael, i like the wait and see approach, especially if you get fiscal stimulus. most will say you don't want fiscal stimulus with unemployment at 4% this has been such an unusual recovery in terms of how weak it's been and the number of people participating in the work force. if you have fiscal stimulus and you can overheat the economy, real interest rates were to rise, real rates were to rise, the yield curve were to steepen, higher yields, higher real rates, expectations of stronger growth that would allow the fed

to normalize at a much faster rate, yet importantly not be financially destabilizing. >> why are you so convinced tax reform is happening. >> i'm not convinced of it i would say if you ask me something will come through, i will say yes the reason is the following. if you look back under obama, every tax rate with the exception of the bush era tax rates on the high end were maintained the fact that the president left open that wiggle room for a fourth rate at the high end, i'm not sure if it's 400,000 and above which is the joint filers, but something at a million or plus above earners that allows wiggle room for compromise if it's couched as middle class tax cuts, i would be surprised if you don't get democrats on board with it. >> we'll see about that. joe, thank you for joining us. american express' ceo will retire early next year after

nearly 17 years at the helm. the move was widely expected perhaps not necessarily to be announced yesterday. spent the last two years regaining value after the loss of costco. nike got downgraded to neutral from buy at goldman sachs. the analysts point to u.s. inventory overhang and signs of overseas weakness. the price target remains 54. i'm not sure where they're seeing the signs of overseas weakness last quarter china was a blowout for china. ebay's third quarter profit was in line with forecasts the company warns fourtd quah qe profit could miss expectations as sthey revamp websites. united airlines fell due to having to cancel thousands of flights due to bad weather

they will defend market share at u.s. airport hubs. don't miss oscar munoz on "squawk box," that's coming up at 8:00 a.m. eastern >> investors don't always like to hear airlines say we will continue to add capacity to meet market share we'll see how the market reacts to that. uber board member arianna halvingtf i huffington speaking out on the future of the ride hailing app in an interview last night, huffington said uber is in recovery mode. >> morale is amazing at the moment everybody fell in love with d a dara, our new ceo. is he moving fast to fill in the gaps in his executive team >> the media mogul also said she hopes softbank's much

anticipated multibillion dollar investment in uber will go through soon. general electric's new chief is making changes at the firm. the "wall street journal" reporting that john flahery expe expee flannery expected to cut thousands of jobs next month as part of a strategic review he also will be taking away corporate cars and canceling executive retreats learning more about former boss jeff immelt. he would sometimes fly with two corporate jets, with a nearly empty one following the one he was in the extra plane was used in case there were mechanical problems crew members were discouraged from discussing his travel arrangements this is the takeaway of the story, the fact that an empty plane sat beside him this was like a political story, leaking information. >> the real takeaway is that the

current regime is saying we want to distance ourselves from the way it was done before the message from flannery is everything is on the table, the question is whether that includes the dividend or not >> and whether investors will buy it and be convinced of it hasn't managed to turn around the stock yet. time for top trending stories, the team behind "stranger things" releasing a series of spoilers on twitter. the netflix series has been sending out a series of short twitter spoilers to individual fans of the show the videos are giving fans inside details about the upcoming season of the show straight from the cast themselves we'll leave it there we don't want to give away spoilers >> i'm not partaking of it i have to put it on the list >> it's very good. you would like it. you're sici-fisci-fiish, yeah >> not really. but i'm retro. >> i think it takes place in the

'80s >> yeah. bank of england sepending bi bucks on a snapchat filter the boe spent nearly 3,000 pounds on the filter used to promote the release of a ten pound note last month they bought the filter to celebrate the new bank note the pricey filter appeared in seven uk cities. >> i'm into this >> you print the money, spend it how you like >> exactly good job, bank of england, getting with the times, going to younger people, getting them excited about currency >> if you're going to market the new note, do it to the young people. >> i want a bank of england snapchat filter sfwloot ya. the yankees are one victory away from going to the world series they shut out the astros last night. game six is tomorrow night in

houston. >> you were trying to decipher which one has a better cover >> they were along the same lines, but clearly when you have a pun -- >> what's this one >> just one more >> one to go got it they did won >> doing one out of two. they both put the same guy on there. >> that's the pitcher who shut the guys out, tanaka >> yo, yankees the cubs extended their season by at least one more game the defending world series champs beat the dodgers in game four last night. the cubs are still down three games to one game five tonight at wrigley field. when we come back, the case for janet yellen why the president should be smart and reappoint the fed chair. that's part of today's must reads. it's coming straight ahead later today, do not miss wilfred's interview with goldman

sachs president and coo david solomon. he was part of the duo who replaced gary cohn when cohn went to the white house. that is coming up later on cnbc.

another day at the office. why do you put up with it? believe it or not you actually like what you do. even love it. and today, you can do things you never could before. you're working in millions of places at once with iot sensors. analyzing social data on the cloud to create new designs. and using blockchain to help prevent fraud. so get back to it and do the best work of your life.

time for our must-reads. my pick is in the "new york times. the trumpest case for janet

yellen for trump's own sake, the savvy move would be reappointing yellen almost nothing can hurt a president's popularity as a weak economy can. obviously he's basically saying, if it's not broke, don't fix it when it comes to central bank policy and the economy >> it's funny, we're so in sync i picked the same must read but a different quotation. here's what he adds. what is the single biggest exception after he goes through a string of controversies that trump is dealing with, everything from russia to an approval rating in the 30% it's the economy it's doing just fine it's not booming, but it is growing steadily with a 4.2% unemployment rate as trump repeatedly notes, the stock market is booming. yellen is the most influential policymaker and her fed has creat played a role in creating today's economy. you wonder whether the trump administration will think along those lines or whether as steve

mnuchin said yesterday, the stock market is booming because of them, the expectation of corporate tax cuts >> there is the feeling that the president would like to put his own stamp on the fed, have his own person in there, but presidents have typically kind of maintained the fed chair from the prior administration, obama kept bernanke. bush kept alan greenspan >> it's interesting. the traditional pattern from this administration is bring in someone completely different in terms of the idealogy. deregulate >> that might be material to the fed chair choice >> yellen talked about the importance of keeping the bank regulation we're approaching the top of the hour the steam gettiteam is getting "squawk box. >> we have a lot to talk about we will talk about ken chenault

and this big news out of american express jeff son fenenfeld will join us talk about that. we have senator jeff flake from arizona, and phil lebeau will be hanging out with oscar munoz from united. >> good lineup all the big stories. andrew ross sorkin and "squawk box" at the top of the hour. when we come back a historic day on wall street, not for a good reason. today marks 30 years since the black monday market crash what an learn from that drop when "worldwide exchange" returns she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum

back up and running, and we opened the next day. looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone

welcome back to "worldwide exchange." futures a little under pressure pulling back from another record high we saw yesterday on wall street dow futures down 61 following weakness in early market action in europe. s&p futures down nine.

nasdaq down 30 today is the 30th anniversary of black monday when global markets crashed. the dow fell 508 points, about 23%, still the biggest one-day decline for the index ever joining us now with perspective on the markets then and now, jeff hirsch of the stock trader's almanac tell us how much of an anomaly that day was and whether it could happen again >> it's a pretty big anomaly the biggest at the top there i'm not convinced something of that nature can happen again back in '87 we were up 43% at the top for the dow. 39% for the s&p, 30% for the nasdaq nasdaq is a bit closer, but in october, the friday before black monday, we were down 17% on the dow. what happened after that was all these circuit breakers, the

plunge protection team became robust we've seen other declines like that we had a nasty bear market in '07 and '09, but that was orderly. i don't think these one-day things will happen again the flash crash taught us a few things we have made adjustments, everyone is more aware that will present a big one-day drop in the 20% range. >> jeff, definitely making that point that this was not a one-day bolt from the blue then we go down 23%. the market was in a nasty selloff for a couple months from the highs, and bond market was melting down, the dollar was very weak. so a lot of macro stress the question i have, i guess n terms of trading mechanics, market structure and stuff, in 1 1987, we thought we were all modern, had things figured out this hedging stuff which we now know was a part of that decline

was supposed to be an innovation, not a source of risk you just never know exempt under stress how a market will behave. >> we learned that in '07 and '09. it's different every time. these markets repeat, they rhyme, as we say in the almanac, but there's always something that's new new innovations, we found that with the mortgage crisis, the dotcom bubble. there's probably something out there i'm not smart enough or well versed enough to know i think they'll turn it off before 20%, there's all sort breakers that will stop it before it gets to that they capped it at 20 so we probably won't get 23% again. >> is it worth looking at where we are in terms of the election and presidential cycle '87 at the end of the reagan era. now we're at bet beginning of the trump administration does that factor in?

i think it does. we had come a lot longer also from the '74 low we were up 370% for the dow, the nasdaq was up 720. we're about 250 right now from the '09 low for the dow and 422 for the nasdaq we had come a long way we were looking at a post election year with a big move in january. the positive post election trend is different than other post election years the end of reagan's term, things came a long way. also paul volcker just stepped down back in mid-august, that was the beginning of the alan greenspan era, and the steady decline in interest rates has continued. now we're back down to the 8%, 9% range on the ten-year now 2.30

it's a different world the risk is higher for next year evaluations are getting more extended i think we'll have geopolitical risks within the gop and across the aisle in washington, d.c. and around the world we were two months past the top, and we have not seen decline yet. we have to wait until things break before we risk some sort of '87 or '29 or some other type of massacre of '97 you want to go back and pick out >> it's like the whole stock trader's almanac is in your head i know you will be talking about this all day >> i will. jeff said '97, this looks like the year that will break the curse of seven years every year out of seven has had

something bad happen, except this one >> seasonality -- >> seasonality hasn't worked, so we're all set. >> a lot more about this and some earnings news on "squawk box" next. or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

. good morning now dow 23,000 the blue chip index closes above that milestone for the first time ever. a full market rundown straight ahead. breaking news out of europe. spain's government says it will move to suspend catalonia's autonomy we'll tell you what happens next. gilead shares rising after the fda approved its cancer therapy six weeks ahead of schedule it's only the second time the fda approved a gene therapy treatment to fight cancer. it's thursday, october 19th. oh, yeah, 2017

it's been 30 years, and "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. ♪ good morning, 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 kernen and andrew ross sorkin. today marks the 30th anniversary of the black monday market crash. back on october 19, 1987 the dow dropped 508 points doesn't sound like much but that was nearly 23% at today's level that would represent a drop of more than 5,000 points on the dow. you can imagine how that must have felt to people at the time. throughout the show we'll be talking about the differences and similarities between the markets then and now and whether something like that coul