♪ live from new york where business never sleeps, this is "squawk box. all right. good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. we'll play this song every day from now until the end of the year, until there's a tax deal i'm becky quick along with joe kernen and melissa lee yesterday we saw the dow down by triple digits, decline of 112 points off the bigger losses from earlier in the session the dow and s&p were down by almost half a percent. guess what it was enough to qualify for the worst day since september 5th this morning modest advances dow futures up by over 25 points the s&p would open up by 2.5 points the nasdaq would be up by 10 points overnight in asia, look.

yesterday you saw the nikkei ended that 16 session winning streak this morning stocks are closed higher the nikkei was up by 32 points to 21,739. hang seng down by a third. the shanghai was up by a third of a percentage point. the early trading in europe, things are in the green across the board. gains for germany, france and london up by a third stocks in italy and spain also higher treasury yields, check this out, yields at 2.43%. crude oil prices which have been above $50 comfortably for quite some time are now up about 8 cents. 52.26. here are the big stories we're watching new comments out this morning from the saudi crown prince. he says the aramco ipo will take

place next year and valuation of the company could top $2 trillion the crown prince said saudi arabia is working with all oil producers to rebalance the global oil market. on the wall street agenda, weekly jobless claims out at 8:30 a.m. eastern, followed by september pending home sales at 10:00 a.m. in europe, we are going to get an ecb rate decision keep an eye out for that that's about 7:45 a.m. eastern time the focus will be on the quantitative easing program, and how much they could cut that back that will be followed by news conference from ecb president mario draghi that happens at 8:30 a.m. eastern. today is the busiest day of earnings season with 6 companies in the s&p 500 reporting. the list includes comcast, the parent of cnbc, conocophillips, ford, time warner, u.p.s., southwest airlines and twitter those are before the opening bell after the close alphabet, amazon, gilead, intel and microsoft. couple of stocks to watch. this is a shift in what we've

seen in haven't montven recent s buffalo wild wings getting a boost in the premarket the chain posting higher than expected earnings for the third quarter and raising the earnings forecast for the year. up 20% >> ab inbev posting a mixed quarter. they had 14% profit growth profits rose in brazil for the first time in two years. total volume fell on weakness in the u.s. market. the company says shipping to wholesalers was hampered by hurricanes in florida and texas. amgen reporting better than ex expected third quarter profit. republicans in the house are posing a new bill that would increase scrutiny of chinese

investments in the united states it would broaden the investments that require a review if i sifi. new requirements would require a review for real estates near m s bases. the bill is expected to be unveiled early next week. >> president trump is trying to drum up support for tax reform eamon javers has more on that. the president was in a very chatty mood yesterday as he was on his way to marine one to fly to dallas last night he stopped to talk to reporters, took a number of questions including on tax cuts. one of the things he was asked is whether or not the open political warfare that's erupted between the president and several prominent republican senators could damage the prospects for those tax cuts he said he thinks that the senators in question, particularly corker and flake, would vote for tax cuts even though they've been at odds with the president.

here's what he said yesterday. >> i know they want tax cuts, they know we need it we need it for the country, for the people, we need it for the middle kaclass, we need it for jobs >> the president thinks corker and flake will ultimately be with him i talked to people privately at the white house who understand they could have a problem here because corker and flake in particular and senator john mccain have always prioritized concern about the deficit. if they see this tax cut bill as blowing a hole in the deficit, they could have a problem holding on to those republican votes in the senate. the president also talking yesterday about 401(k)s, explaining his decision to shoot down a trial balloon from capitol hill on a proposal that would cap contributions to 401(k)s that was pushed by kevin brady in the house of representatives. here's what the president said about that one >> 401(k)s to me are important they're important because that's one of the great benefits to the

middle class i didn't want that to go too far. that's why i ended it quickly. maybe it is. maybe we'll use it as negotiating. that's one of the great things you know, there's certain elements of deals you don't want to negotiate with. 401(k)s -- kevin knows it. i think kevin brady is fantastic. he knows how important 401(k)s are. >> the president there sending a signal he doesn't like the proposal to change the contribution system for 401(k)s for most americans kevin brady on capitol hill has signaled he thinks that idea is still alive in congress as they debate this tax measure that is expected to be released next week the question is what the white house can do about that. i talked to white house officials yesterday about that privately who said they think this proposal is ultimately going to fall by the wayside they know the president doesn't prefer for it to be in there but ultimately they recognize the president cannot guarantee this

proposal is not included because they're not ones writing the bill a lot of moving parts on tax reform today >> thanks, eamon we'll talk to senator corker right now we'll talk to some former senators, former governors. >> yes >> you guys got more political experience judd gregg, senator governor judd gregg, and senator governor evan bayh. welcome to both of you i'll start with you, judd, about tax reform something i've been hearing is there are certain things that will need to be done for this to pass muster in terms of all of the budgetary requirements there are sacred cows that will get killed once it's announced people will be lined up. these guys, republican politicians are going to be needing to be ready for an onslaught. the question is whether they can withstand it

you can't do it unless some things that are dearly held go away >> you're right. i was there in '86 on the ways and means committee, i participated in writing and was a primary author of simpson bowles the only way to get tax reform and rates down is to step on toes you have to step on a lot of toes and pretty much step on them equally if you step on one toe excessively, they can claim they're being treated unfairly my view is the approach on this bill, getting the rates down on the individual side is not a good approach. because they're not bringing rates down far enough. they should have the rates under 30 30%. >> individual rates. >> individual rates. i think the corporate side is excellent. >> it's 20 about 25%. i had people say if it comes out to 25, it's barely worth the --

>> it would be a tough call for a lot of folks on the business side >> to get 25 to go through all thi this >> 25 would be good, 20 is better the fact they have drawn a line in the sand and said we're not going above 20 is good they can't get all the money out of the state and local deduction, even though politically -- substantively it's the correct thing to do new hampshire shouldn't be subsidizing new york like this. >> that's not what new york thinks >> in any event, the way they should do it is hit everybody equally. limit the amount of deductions you can take to a percent of your income that becomes a sliding scale event. >> they're talking about that. not sliding scale, but a cap on -- >> but you have do it at the lower levels, too, and do it as a percent. >> in other words, not a freebie all the way through. >> that was the mitt romney proposal it's a good proposal nobody can claim they're being disproportionately hit

you get to choose the deductions you want to talk but you get limited on the percentage. >> that was what the am it was all about. you can take some deductions but you won't qualify for others >> the amt is a punitive tax in my opinion >> senator evan bayh, you've been gone for a while. you are from indiana to start with, you have that going for you in terms of xwhcommonsense, salt of the earth. the current democratic party that -- that you're looking at right now, when i see schumer with the people behind him all nodding, would you be there right now nodding with chuck schumer, senator were you from a different breed of democrats >> when i was governor of our state -- by the way, some of becky's family hails from

indiana. she would appreciate your shout-out for the hoosier state. >> sort of a shout out and a slam on the current democratic party. >> we cut taxes when i was governor of our state. it was a good thing. there are at least three democrats in the senate who did not sign a letter saying they would not support -- what about you? if you were there now, would you be working with republicans and a possible yes vote on this? >> yes, i would. i would. let's start with the corporate code it's not globally competitive. we all complain about companies relocating abroad, taking investment and johnsbs abroad. that's not good for america. we have several trillion dollars not being brought home, it's in asia, europe, we need to bring that back. the alternative minimum tax, that should be done away with. there's some things where you could get a good bipartisan consensus. most of all, try to get

productivity growth rates up, which drives wage increases which is the real problem affecting most middle class families i would be one of those people who would be working together to get that done. >> do you see anyone like you around maybe a couple people i guess. >> heidi -- >> are three brave souls >> manchin, heidi -- >> and joe donnelly from my state who said let's keep an open mind and see what the proposal is. >> you don't sound anything like -- did you hear what he said lower corporate tax. >> evan bayh is one of the more rational members of his party. >> wethere are not as many centrists -- >> the problem is both parties have been taken over by their hard core shoutd ers. they have no interest in

government, just standing in the corner and shouting and attacking. they're filled with anger and hate as a result, people like evan bayh, who are constructive players in the senate -- and there's a lot of them in the senate the center in the senate has no leadership nobody is willing to step forward and say let's do this in a bipartisan way if you don't do tax reform in a bipartisan way, you end up with a bill that will immediately be attacked >> and repealed as soon as the other party takes control. >> if the other party takes control will you see it undermined quickly bipartisan tax reform is constructive partisan tax reform doesn't get far. what were some of the sacred cows that had to be slaughtered in 1986 to get to that tax reform >> everything. we stepped on every toe. we reduced real estate deduction, the charitable deduction. we did not reduce what we should have, the healthcare -- the ability to deduct healthcare insurance at high-income healthcare plans state and local should be cut

back you have to step on everybody's shows in this business or you won't get things done. otherwise somebody can claim they're being treated unfairly what will happen, i'm afraid, is they'll cave on state and local to some degree, they don't want to treat the people from new york unfairly, so they will go to a 39% final rate. that's foolish what's the point in having tax reform if you have a 39% final rate >> evan, do you think it's as simple as it is played by schumer and others that this is just a tax cut for the rich is that productive will that work the country is not that convinced, i don't think, or for whatever reason the corporations need a tax break so if you keep hammering that this is a tax cut for the rich, you're going to get-dhash wi --l resonate not everyone agrees cutting corporate taxes is something we should be trying to do if you keep saying this is lining the pockets of these rich

republicans and their rich friends, that resonates. >> it can resonate politically, that's true. substantively i think we need focus on what does it take to grow the economy now >> we need another democrat. this is ridiculous we brought you on here for a reason, you're just saying -- you know, you're to the right of judd >> he's always been to the right of me. >> you know what we need in this country is a solid center of pragtist matists who want to mae progress when we grow the economy, that does tend to help people who own small businesses and who have been somewhat successful there's no way around that it also helps everyone else. we can deal with some of those distributional effects in other ways by making college more affordable and doing some other things that really help -- >> you have turned me around

you have turned me around. preaching to the choir, but you turned me around what turned you around is when judd wanted to take away your state and local tax deduction. >> i'm okay with that. what are we, new jersey -- >> new jersey and new york >> i'm fine. >> move the show to new hampshire, you don't have an income tax, a sales tax, a pay raise, you don't have to do anything and your daughter could go to dartmouth. >> we could get some good napal syrup in vermont we can go to vermont >> can i make one final point? >> yes >> judd raised a good point. that's the nexus between good policy which does require some compromise by both sides, and this divisive politics that we have today if you drive out all of the pragmatists and only have the two extremes, what you are left with is gridlock that's what has gotten the american people mad today. they wanted people the people

together support judd gregg and bob corker and others, that's eventually how you'll get things done >>governors, thank you a lot of experience on "squawk box" now at least from running the federal government and state government quick programming note, senator bob corker will join us this morning at 8:10 a.m. tickets for popular movies could cost you more next year. why on-demand pricing could be coming to a theater near you. and we'll get results from southwest airlines, comcast, ford and twitter in the next 40 minutes. "squawk box" will be right back.

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welcome back a bunch of european banks reporting. shares of barclays under pressure the company reporting a weaker than expected pretax profit of 1.$1.64 billion. the bottom line impacted by lackluster performance at its investment bank. deutsche bank profits more than doubled expectations. the german lender reporting third quarter net income of 7$78 million versus 332 expected. cost cuts helped yield profits trading revenues weaker than

expected the cfo addressed the issue a short time ago on cnbc >> fixed income markets, we perform very much in line with our peers. revenue performance was down 24%. if you take the same segmentation as our peers have, which is fixed income sales and trading and the financial segment, so 24% reflects the market environment we're in. in equities, you're correct, we had a weaker quarter than some of our peers that reflects the idiosyncratic environment we found ourselves in at the end of last year, particularly in prime finance which has been a lagging indicator as we rebuild balances and rebuild margins in that business we think we're seeing progress there. that leads to some confidence about the future deutsche bank shares are down 1.9% right now. santander reporting a 14% drop in q3 profits the bank blaming one-off restructuring costs due to the acquisition of banco popular

regal entertainment will be testing demand for movie tickets in several markets next year, it's part of an app with adam tickets, backed by disney and lion's gate so it will cost you more to see blockbuster movies and less money for those less successful films regal didn't announce which markets will be participating in the test >> doesn't sound like -- >> got empty seats in here >> doesn't sound like a position of strength. makes sense with the way the world is moving. you pay for what you want. u.p.s. says it is raising rates on u.s. ground as well ss also on international shipments. the rate hikes would kick in on november 24th. merry christmas.

> >> come to me again. >> oh. >> quick fingers president trump announced he will declare a national emergency on opioid abuse, a move that could give states access to federal funds that could help fight the crisis. he will detail plans today he will make the official declaration next week. growing up, just growing up, heroin abuse you thought of junkies. junkies, needles, tracks, needles. needles. i keep coming back to needles. there's no needle -- >> which stops people. >> supposedly the -- i guess the feeling it gives you once you see it is tough to -- tough to not want to have again if there was a needle involved -- now -- who decided to make heroin pills. >> you don't even have to smoke it. >> the question is in terms of pain management how do you do

it you need pain management for people how do you do it without something that gives you -- >> there are various treatments being developed now that are nonopioid pain management treatments but it's for very specific uses. for large joints that will be -- it will last for six months t will be injected, but it's still early on >> a lot of times they tell you yoga is the alternative. that's a stretch for somebody in severe pain. >> a stretch >> so to speak >> one of our smart guys we have on once in a while, told me a peripheral -- something that doesn't work in the brain. where the actual inflammation is where it hurts there's no feeling of euphoria that you get that you want to have again and again >> are they close to that? >> that's what they're working on >> numbing your back >> what about phantom limb pain? >> right >> you don't have anything there. >> it's your head. that's not the most common though there are unfortunately been in a couple wars where

there are people who had that as well separately the government is set to release the final files on the assassination into john f. kennedy in 1992 the government ordered that all records should be open to the public, setting the deadline of today. president trump said he will allow the documents to be made public academics say they expect no major new details on why lee harvey oswald gunned down kennedy. >> trump was tweeting yesterday evening saying can't wait, this will be interesting. >> exactly coming up a busy morning for earnings it starts after the break. we'll get results from southwest airlines then southwest chairman gary kelly will join us at the bottom of the hour. at 7:00, reports from comcast, ford and twitter as we head to break, here's yesterday's s&p 500 winners and

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live from the nasdaq market site in times square. >> should be a little bigger, don't you think? you're on. u.s. equity futures, take a quick look seeing a bit of strength again. it's like that in the morning. yesterday didn't turn out so well but it wasn't as bad as it could have been. you talked about that on "fast money" last night? >> which >> overall, how it almost got out of hand. >> we were down more than a percent on the nasdaq. we were seeing down a spent on financials at the worst of the session. you have to wonder is that a glimpse of what it's like when we have higher interest rates? >> we were talking about relative volatility and relative moves. 1% move, we're like, wow, what's going on >> in this context of a quiet market -- >> it was almost down 2% for a while. >> yeah. >> 180

for a while it looked like it would get out of hand. you were preparing for your show >> i'm on "power lunch" as well. >> i know that. >> you watch every day >> if i don't watch it, i dvr. >> i was watching yesterday and watching the president's remarks on your show >> president made remarks yesterday? >> ugh >> southwest airlines just out with quarterly results earnings of 88 cents a share that was a penny better than had been expected. the revenue number, we'll look at that. check that out the ceo will be joining us in a few minutes on a first on cnbc interview. he says he was pleased with this strong profits and margin force the quarter as he is characterizing it. he says particularly considering the impacted of all the unprecedented natural disasters, because of harvey and irma and the earthquakes. southwest canceled 5,000 flights reducing revenue by 1$100 millin

in the third quarter. earnings continue to pour in joining sus us is michael tyler and hans olson hans, starting with you. we were talking about the market action yesterday at the lows of the session it looked like we would see easily 1% declines or greater what seemed to be behind that were -- we had a number of idiosyncratic bad earnings stories, but also the yield hitting 2.45%. could than a glimpse of what the markets could look like if we see higher rates. >> sure. maybe it's a return to normal. i was looking at the interyear declines over the last 20 years, it's not unusual at all to see inter-year declines of 8%, 15% if we just return to normal, we could see something like that. would any of us be surprised at

the end of the day when you add -- if we return to normal and you add in perhaps global increasing or normalization of interest rates, we could have some rough air ahead of us. >> michael, you know what was interesting, we saw pressure on the financials and in a rising rate environment you think the financials would do okay. granted the two-year yield did go to levels we have not seen since '08. overall the yield curve was the same steepness what do you think was behind that? and you should be cautious given that cue from the financials yesterday? >> i think the ten-year yield is likely to rise somewhat. we'll learn more about that this morning when mario draghi gives his talk it's foreign interest rates that are holding down u.s. rates now. the u.s. economy can stand much higher rates if you look at the taylor rule or ner potential wother potenti

rates, we can stand higher rates. if the yield curve steepens because the europeans start to slow down bond purchases that would help the banks what would not help the banks and financial stocks in general is for the yield curve to flatten out. that's the fear that started creeping into the market yesterday. >> so a hawkish mario draghi later this morning would signal to you that that would be a good condition in terms of yield curve for the financials we would see higher rates in the u.s. >> that would be and that would allow the overall level of rates to rise without threatening an inverted curve. that would suggest that the u.s. economy is still strong, can stand that very nicely, and we are in a great position here in terms of earnings growth we had very few earnings surprises, negative surprises this quarter earnings are shaping up well the economy -- the labor force is in great shape comparatively speaking we have record jobless openings. there's no question that the

economy can withstand higher rates what kept it down is 2.5% ten-year in the u.s. is still dirt cheap compared to a zero in japan or 50 basis points in germany. >> given this environment and we will be getting a lot of major tech earnings starting this evening, should investors start thinking about being more in the cyclical sectors, the industrials? are industrials the new growth stocks technology, the price action in tech has not been great the past seven sessions or so >> i think if you cast it in a laernlg lig larger light, you pivot towards a late cycle type of investing more value stocks, whether it's financial, energy, maybe some industrials. i think we're at the point in the cycle where this makes sense. >> and michael, overall in terms of markets, you think they go higher here going into year-end? >> we will continue to drift

higher nothing will push us down. if you look at the economic indicators, technical indicators and looking at cash coming into the market therehas been this year an outflow of cash. that's coming back as more and more people start getting their holiday bonuses. i think we'll continue to melt up into year end this is shaping up to be the first year in history without a single down month. we've had 11 straight up months so far i think that suggests that maybe as you said earlier, we might be in for a short dip here and there. that's okay. longer-term, there's no reason to stop the market as long as earnings keep coming through >> scares me when i hear somebody on tv saying there's no reason why the markets shouldn't go lower from here >> it scares me to say that. >> when it exited your mouth, were you like whiedy sy eddid i that it sounds razy

>> the earnings are solid. we're at 19 times earnings, 2% yield, that's well within standard deviation of what normal valuation is. stocks are not expensive now maybe a tiny bit, but not really expensive. bonds are outrageously expensive. that's causing people to worry about maybe we're in for a problem if the bochbd mnd marke tumbles. >> last word, hans >> i'm rooting for michael for sure on this, but i worry the earnings comps going forward will be more difficult >> yeah. >> that would be much worse than if the earnings comps going backwards were we already know those. the future is much harder to predict. >> it's a foreign country. >> hans, michael, thank you. >> i want to know what's going to happen at beginning of the day sometimes. i don't know if we'll ever know that >> at the end of the day, maybe

not. when we come back, we'll dig through the numbers from southwest airlines with ceo gary kelly. he'll join us on a first on cnbc interview. then we'll hear from cnbc parent company comcast chairman and ceo brian robert also join us at 7:15 a.m. eastern. later, senator bob corker joins us to talk tax reform. maybe we'll get into the feud with the president what he plans to do when it comes to voting for tax reform stay tuned, you're watching "squawk box" on cnbc get 4 unlimited lines for just $40 bucks each. taxes and fees included. and now netflix included. so go ahead. binge on us. another reason why t-mobile is america's best unlimited network.

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time for the executive edge. stranger things are happening at lyft to promote the season two premiere of the network show today and tomorrow passengers will be given the opportunity to ride in strange mode with in-app elements looking like moments of the show in philadelphia you can ride in special cars with radio static, flickering lights and other effects. riders can ride with a waffle. if you watch the show you know why. >> i don't have any idea what you're talking about i certainly don't need to watch

a tv show to know i would like to end the ride with a waffle. i would like to end everything with a waffle. >> uber is -- maybe with whip cream. >> a belgian this is an eggo. >> uber is getting into the credit card business they are teaming up with barclays and visa to operate their own card the uber visa card will be available in the app to use on uber rides, uber eats purchases starting next week the physical card to be used for any other non-uber purchases will show up in the mail. nelson peltz says being an activist investor can at times get ugly here is what he told jim cramer last night >> i think it got ugly one-sided. >> i agree with you. >> all we dealt with was facts

i believe there's a direct correlation between how poorly a pane is doing and how big a fight they put up. okay >> okay. >> it's really interesting if you look at the proxy fights we've had, heinz, dupont, now p&g, those are three truly underperforming companies when we got there and i think we helped them all >> shares of procter & gamble are down more than 6% this month. 86.88 was the last trade. at conference, wilbur ross asked peltz if he still supported president trump. >> when you get on the plane, you root for the pilot we got a pilot his name is trump. okay and like it or not, we only have one pilot. so, why don't we get behind this pilot and support him instead of crying in our beer that somebody else didn't get elected, and

picking him to pieces. is he perfect? no but he is our pilot. let's land this lane >> get a new pilot. >> get off >> right white house economic advisor gary cohn raised the prospect of hiking the federal gasoline tax. cohn said there would be an opportunity to vote for increasing the gas tax when they vote on an infrastructure prospect next year the federal gas tax has not changed since 1993 >> if you were like me and couldn't stay up it was a great game yesterday i never watch when they replay a game this one apparently was one you would like to see. the astros finally beat the l.a. dodgers in game two of the world series in a wild extra innings game 11 innings the astros scored six runs from the eighth inning forward.

the series is tied at one victory each it's at least a five-game series we always hope for seven games like we had in the a.l. -- what we just saw between the yankees and the astros seventh games are so great this one wasn't. >> not if you were a yankees fan. >> no, it wasn't good for anyone didn't show up in the last two games. this is -- >> it was the fifth game that was the really good one? nail biter >> yeah. the yankees did battle back. they were down 2-0 >> they went further than people anticipa anticipated. >> these two teams in, everybody had the dream bicoastal. >> i like this one because of the troubles that houston and the area have faced, and the trouble that california has faced. >> houston won 101 games and dodgers won 104. i think i have that right. >> the first time that's happened -- >> since 1990.

when you know the other teams were >> no. >> the reds and orioles. >> your team, cal ripken >> my team cal ripken sr. >> jr. >> coming up, southwest airlines out with quarterly results a mixed quarter there. beat on the eps, slight miss on revenue, the ceo gary kelly joins us next on a first on cnbc interview. as we head to break a quick check of the european markets as we await the ecb and its press conference mostly green across the board in europe stay tuned when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions,

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♪ i believe in a thing called love, there's a chance ♪ ♪ we can make it now welcome back to squaux southwest airlines out with quarterly results, earnings came in at 88 cents thor share revenue looks like it was light of what the street had been forecasting. joining us is the southwest chairman and ceo gary kelly. thanks so much for being here. i know it was a difficult quarter with natural disasters you were dealing with but how do

you feel about it all things being equal? >> except for that it was a great quarter. we got a lot accomplished. we retired our classics and we were ready for the launch of the new 737 max 8 aircraft on october 1. it was a very competitive quarter. we had a loot of price competition the week before travel for our close end bookings but there were no surprises this morning the third quarter wait a minute in solid i'm very proud of that considering we had such difficult natural disasters to deal with and the outlook for the fourth quarter is great and we're looking at margin expansion for next year. >> i think a lot of people will be willing to look through the one offs from the natural disasters but the passenger revenue yield was a competitive quarter, it was down by 0.9% is that a trend you expect to continue >> no. we had a really solid

performance in the second quarter so there was a little more weakness this than i would like in the third quarter but we're seeing a rebound in the fourth i think a lot of that will be more dependent on how fast do revenues recover in houston, in florida and even in las vegas so i think we're keeping a close eye on that but we're looking at unit revenue growth year over year in the fourth quarter and this will again be our goal for next year and i think that's a realistic goal. >> i hadn't thought about las vegas. how much of a decline are you seeing in traffic? is that a direct result of the shootings there? >> it's a revenue softness yeah, we're off -- immediately after the event in the 15% to 20% range. so it's recovering, it's recovering gradually so we're still at a discount for the run rate that we were before but america's resilient and i think we'll be back on track there.

>> how promotional, gary, is the environment these days for passengers am i going to be able to get better and better prices when it comes to fares is that where the industry is right now as it increases capacity overall >> well, it's kind of a continuation of a trend we've seen over the last three ears. prices were definitely stabilizing more in 2017 than in ' iin ' '16, '15 and going back to thwart the demand is very strong but the industry is continue to grow to meet that demand and that's what consumers want so yeah i think you'll continue to have great fares available and we'll continue to work hard to manage our growth, manage our revenues, keep costs under control and grow those margins. >> >> you're also going to offer flights to hawaii in 2018. are you getting any indication, albeit early on, as to what the demand will be like there and

will this paspark price fare wa when it comes to hawaii? >> well, we're america's low-fare leader so you can count on us for low fares, we don't charge bag fees, change fees, all the things you know and love us for we have a very powerful point-to-point network we have a lot of flights in a lot of places so from the west coast and california in particular we'll be able to offer very good, very solid service to hawaii. we'll begin selling next year. we haven't announced what routes, what fares or when we'll be flying so we have a lot of work to be done before we're ready for that but we'll do well. >> new security screenings for all passengers take effect today. are you prepared for that? is it going to create chaos as people try to get their heads around the rules >> absolutely we're prepared

i don't think it will be chaos but it will take a while for our customers to adjust but absolutely we're prepared. >> also u"usa today" lead story in the "money" section is about an naacp warning they've issued against american airlines charging some bias there have you seen any impact from that warning against american? has it benefitted southwest? >> oh, no. there's no way to tell whether there's any impact there or not. i can't imagine there would be but no. >> gary, i want to thank you for your time. good to see you, congratulations on your earnings. >> thank you for having us and good luck today, i know you'll be very busy. >> i want to get -- i hate twitte twitter. >> you keep saying that. it's a cesspool but sometimes something positive happens for that but it was 1990 when the last 100 game winners played. i know it's the orioles so

someone wrote in, "come on, it's the oakland a's. and remember the 1990 series, reds, oakland but that was not the last time there were 100-game winners it's 1970 so it's been 47 years since there were two one hundred game winners. >> the best of the best playing each other. >> and only seven times in history have two one hundred game winners met and that's one of the cool things about baseball 162 games, you know if you keep winning -- >> it's not a fluke. >> bad teams are bad instead of 100 wins and 60 losses they get 60 wins and 100 losses thank you, twitter ugh. >> you can't get rid of it. >> a look at what's trending 3,000 tweets, trends every stupid -- any way. suood of earnings bringing you relts from comcast twitter,

conocophillips it's the end of days, twitter. is

. >> announcer: live from the beating heart of business, new york city, this is "squawk box." good morning, everybody, welcome back 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 and melissa lee we've been watching the futures and things are bouncing back slightly futures have picked up but the dow futures are up 45 points, s&p up by 4.5, the nasdaq up by 13 nbc universal parent comcast just out with quarterly results and the bottom line number which

is on an adjusted basis was 52 cents a share. i saw some estimates at 50 cents, estimates for 489 cents adjusted consolidated revenue increased 5.8% if you exclude the $1.5 billion of revenue generated from the rio olympics out last year. that says here was slightly short of estimates comcast saw 214,000 new high-speed internet ads during the quarter although it lost 125,000 video customers. i think the company said 100 to 150 and one of the analysts i saw was 165 so i don't know whether 125 is above where the street finally came down on that but it was hurricane-related, competition related, competitive quarter, free cash flow was $2.3 billion, somehow that was up 66%.

consolidated increased 7.5% to $2 billion and some numbers are above expectations the company calls it another strong quarter and then the nbc universal side continued strong performance it says here across its businesses as it delivered a nearly 20% adjusted growth when you exclude the rio olympics the good thing about the olympics is -- >> it's become almost. >> its used to be every four years now it's every two years so if you have trouble with the comps you only have to wait a year until you don't trouble with the comps we will be talking to chief executive officer brian roberts about the quarter in chus a couple wins twitter had quarterly results in just the past few minutes. we're joined with a very interestingquarter, julia. >> very interesting. twitter beating on the top and bottom line. the company announcing adjusted

earnings of 10 cents per share the stock is moving higher four cents more than analysts projected also record profitability for the company. revenue coming in at $590 million. that's $3 million more than analyst expectations for those all-important user numbers, twitter added four million users over the course of the quarter to end with $330 million. that's slightly less than analysts expected but on the use yum numbers twitter announced since the fourth quarter of 2014 it's been overcalculating monthly active user numbers saying it's doing so by no more than one to two million every quarter. i spoke to the twitter coo who says he thinks the best sign the changes the company is making are working are in the daily active users numbers they don't report active users but they say they are accelerating 14% in the third quarter, that marks the sixth consecutive quarter of year-over-year daily active user growth he says the results show they're making progress in their ad portfolio, they're more relevant

with better click-through rates and they're benefitting from the investment they made in video and they say advertisers are more confident in twitter because of the confidence growth in the call which starts in about an hour, we'll hear a lot of questions about the fourth quarter and what potential growth number we'll see. >> so they're saying daily active users is a great measure but we don't release the numbers, we only give you a growth number and it's not par of the their formal earnings release because even the s.e.c. asks why don't you release dau numbers. >> exactly. >> so now they're saying look over here. >> 16% dau and we won't tell you what those dau numbers are they have been trying to shift the focus away from the monthly active user number three months ago they didn't add any new so to add four million in the quarter looks good compared to last quarter.

>> do they have any idea how many are bots and how many are real accounts? >> i talk to them about this a lot. they shut down a lot of bots and they could shut down more bots but they say not all bots are bad, bots that alert grow there's an earthquake or customer service bots, some bots are supposed too be -- >> all bots are not created equal. >> yeah so they say they want to keep the good bots and get rid of the bad bots but there's debate about how many. some people say as much as 25% or more. >> so it would hurt their numbers if they tried to get rid of the bots. >> it would seem so. >> yeah. >> julia, thank you. ford reporting moments ago beating the top and bottom lines, let's get to phil he bow wi -- le bow, he has the numbers. >> bob, on a day where you guys post earnings of 43 cents a share, 11 cents better than expectations with revenue coming

in, $1.2 billion better than estimate but a lot of what we're seeing in the third quarter is the benefit of cost reductions, cost cuts coming through which leaves the question how do you tell the people look, we are starting to turn around this company, wring out these costs but prepare for the future >> well, i think first of all what we want to recognize is the solid good quarter that we had and it builds on seven years of strong performance what we are working to do is improve the fitness of the business better as a strong foundation as we enter an important transitional period for the whole sector, not only the company. as we take advantage of new emerging technologies such as avs and evs and so forth so this is a down payment i think to the fitness regimen we talked about a few weeks ago with analysts in new york and we're really excited to see this start. >> but you have $700 million in cost benefits in the third

quarter and you've outlined a substantial $14 billion in cost reductions over the next three to five years so cost cuts is a big part of the financial fitness or fiscal fitness as you guys have put it, right? >> actually it's a reduction in the rate of increasing cost so they there will probably be part of the business where we'll see absolute cost reductions but the $10 billion of material cost improvements, the $4 billion of engineering i would characterize those more as a reduction in the race of increase that we have planned. >> bob, let's talk about the future of mobility and the turn around plan that has been laid out by jim hackett, your ceo you guys are getting a fair amount of criticism on wall street and from investors of laying out broad ideas when you announce the future of ford a few weeks ago but not enough clarity. people are saying when do we see the tangible results of where ford is investing when it comes

to autonomous drive cars, electric vehicles, et cetera. >> well, that's a good question and a good comment in the sense that we have identified the fact that we're already planning to spend $4.5 billion on electrified vehicles between last year and 2020 we've talked about a billion dollars we're planning to spend over a five-year period on the vds, or the robotic brain of the autonomous vehicle and we feel we're in good place in terms of those investments. in fact, in new york what jim talked about incrementally is that we be accelerating investments into evs and we'll do that in part by shifting capital away from internal combustion engines towards evs so we're in a good place and this isn't a sprint, this is a marathon and as we have more to talk about and proof points to share we'll do that. >> i understand it's a marathon but let's be honest, your stock is on the sidelines of many investors. the other stocks are moving

higher on the anticipation or in anticipation of autonomous drive vehicles, electric vehicles, ride sharing coming together and paying off in the next three to five years and increasingly what we hear about ford is well, we know they're making these investments but we're not sure when it will pay off what do you say to investors >> i would say to investors that we've already created value, we've had a strong seven-year run. this year will be another good year we'll have an autonomous vehicle to market in 2021. we have a dedicated ev in 2020 and we have more to come as we've talked about accelerating so i think on the way we'll provide more proof points but we've laid out substantial investments that are going to put us in a good place in both those spaces. >> and will we hear more in the next couple of months in terms of concrete benchmarks >> well, you'll hear more next year and we'll do this as we have proof points to share and

we'll lay out more details behind the smart vehicle smart world strategic direction that jim provided in october but nothing to talk about today. >> bob shank, cfo of the ford motor company joining us from the company's headquarters in dearborn, guys, on a day where ford in the third quarter beat the street on the top and bottom line, back to you. >> phil, thank you. coming up, comcast chairman and ceo brian roberts on the company's big quarterly release just out moments ago beating estimates by two cents we'll run through the highlights after the break. and then later russ cost rich of black rock is looking for value stocks we'll find out what he likes and where you should put your money to work. then we'll speak to an analyst about twteitr. ♪ and you remember the jingles used to go ♪

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please donate now to help people affected by hurricane harvey. your help is urgently needed. welcome back, everybody. nbc universal parent comcast just out with quarterly numbers.

quarterly profit came in at 52 cents a share, two cents above what the street had been expecting. joining us to talk more about it is comcast chairman and ceo brian roberts. brian, thank you for being here today. good to see you. >> good to see you. >> i know with comcast, it's not often the earnings per share that's the most important number free cash flow is up 66% to $2.3 billion but this quarter the number that everybody had been waiting for was that number when it came to video customers the key being video customer losses of 125,000 compared to gains of 32,000 for the same quarter a year ago, the company points out that that was primarily because of a more competitive television environment and the impact of hurricanes but this is the number people have been waiting for based on what comcast said last month and what at&t said this month how much of that was because of the hurricanes and how much was the other factors and competitive environment. >> absolutely. nice to be with you again.

we lost about 100,000 customers if you exclude the hurricane and about 125,000 or so, 25,000, for the hurricane. my view is that yes it's a competitive market, we saw it coming but this is a really strong quarter and if i might, let me take you through a couple parts, the catch flow of the company which is i think the main metric that we judge ourselves on was up 5% across the country for the first nine months, that's 8.5%. that includes the storm and not having the olympics in the hid the quarter where we did the year before so if you break the two companies apart, the cable company had a solid quarter, a very strong quarter, the video you've talked about, we can talk about that in a moment broadband we added about 230,000 customers without the storms and we believe we've pivoted to

where broadband is the first product. we have 25 million broadband customers, 22 million video. broadband is more profitable it's now a majority of the cash flow comes out of the broadband business there's two parts, residential and business and those two businesses together are now $20 billion of revenue growing at double digits vandeheier margins so it's acretive to the whole company. we're trying to be the premium provider we want to have with our x 1 platform and other innovation which distinguishes comcast from maybe everybody else, we're going after the best customers who want to take it in a bunding and for the first time today we're talking about xfinity mobile and we only launched it in may and we've reached over 250,000 customers. so we added a couple hundred thousand broadband, a couple hundred thousand mobile customers and we see for this

year a strong forth quarter in broadband if things continue and we'll be for the 12th year in a row over a million custer ins in broadband connectivity over at nbc universal, a fantastic first nine months of the year thanks to the great work of a lot of people and in the third quarter, again, if you back out the olympics, 20% cash flow growth would have been the third quarter in the row, these are the best three quarters we've had at nbc universal since we bought the company and that's because all parts of the company are doing well whether it's theme parks up 10%, we opened a water park and in japan our acquisition in osaka just had new attraction with the minions which is the fimp symphony wherr ip is helping at theme parks if you put cable and broadcast together it's a double digit growth in cash flow and that's

coming from in the case of nbc the biggest lead any broadcaster has had in six years, first place over sex place, this is our fourth year in a row of nbc being in first place and the film business because of "despicable me 3" and other great film this is year which is by now the largest enmated -- i believe the largest animated franchise in history, universal may have the best cash flow year in its 100 plus year history so the whole company lots of growth, lots of good stories yes video is changing when you think about that change what we've tried to do is use our voice remote to integrate products like netflix and youtube and give you the best internet from the best video and in some cases there is customers going to new offerings that are cheaper and that's a market that

we have, a new product called instant tv but we're going to only do it in a profitable way and so far that's why you see the balance in our results and this is the way we've tried to operate the company. we saw this change coming. it drives our internet business and it drives over-the-top revenues for nbc and universal when people go to these new as much ass and we'll see how sustainable they are a lot of times the first month is free so all in all a really strong quarter with 5% cash flow growth. >> brian, i was -- i can't remember where i saw it but it was sort of a tongue in cheek thing, it was someone writing "you know, i got rid of my bundle and then the world series happened and i realized there's going to be certain things -- and i said this if i have a 70-inch screen and xfinity, i don't know, i'm not sure -- i'm old but i don't know if i ever go -- i don't know if

i ever want to it seems like i have everything i need but that notwithstanding, the stock i was surprised that it acted -- we acted that negatively to that news from three weeks wherever it was or a month ago although it had run up to almost 42 so it's been on a roll so it did pull back but correct me if i'm wrong. don't people need wi-fi or do we go i do not that don't they use broadband anyway? i don't understand why video is still this tipping point it's almost like people are so ready to say that it's changing and going to go over the top that they're ready for the slightest thing that confirms there's going to be these skinny bundles or something. >> well, i this i you said a lot there. [ laughter ] >> and the only thing i heard is that you're old. >> there was a question. thanks how about wise

but there was a question in there. >> the question -- i understand. so i think that your thesis is right. there's a lot of us, maybe we're all old, who really want to have the best experience. not everybody drives the same car. not everybody wants to have the full complement but most do. 6200,000 on demand choices, talk to your voice remote, be able to enjoy on any platform, multiple dvrs in the cloud, it's a great experience and when something like the world series happens, it proves its value yet again when you find something you're passionate about and we're getting more and more choices everyday but we saw a change coming and a while ago not only did we diversify with nbc universal so that 20% cash flow growth this first nine months is about a third of the company but you're right, the broadband is the best way to experience some other form of television

and, of course, with rising programming costs, the television profitability has been going down while the internet profitability has been going up so what we've done at comcast, and it's why not everybody is the same, i think we're playing a different game than, say, the satellite industry where they're just in television, we've been investing billions and billions of dollars in broadband every year. and in the case of wi-fi we have the best wi-fi and it's been speed tested by third parties and we now have a product we call x-fi, which is a wi-fi extender so you plug something in your wall, a little tiny jack and do it in any room where you want to improve your wi-fi coverage it networks with the rest of your wi-fi no authentication, no passwords, you just have wi-fi. and we sell them in four packs and eight packs in our store we have a product what parents can turn off the wi-fi at dinner time so we've been taking our

innovation for x-1 television and been pivoting it, that incredible culture and the team we've built to make the wi-fi and the internet better so when somebody gets video a different way of course we would like them to take it from us but we're going to sellmore broadband an in some cases be able to as the growth and speed and capabilities get more revenue for that brothd band and adband nbc side they're showing shows and content and world series not in our case but nfl, soccer, olympics and sell that to you again through a different means, they're getting paid so comcast is positioned very uniquely and last point this is the 63rd straight quarter we've had cash flow groove over 15 years straight and that's what our company is about. it's a balance between customer

metrix and revenue and cash flow growth and i'm proud of the team that's been able to do that year in year out with the consistency of results and execution. >> so it sounds like you're saying even with cord cutters they'll need to get their broadband somehow. and analysts are saying you could jack up the prices, make it more profitable so you are better positioned than other media companies. at the same time, we've seen comcast stock, it's down 20% since the 52-week highs, 12% since the comments joe referenced that were made about subscriber losses since september and clearly investigators are focused on the bear case, they're focused on video subscriber losses. what can you tell investors to move their attention away from those points and into the stock story you want to tell because clearly right now the stock is caught up in the cross currents

of concerns affecting the entire industry. >> okay, well, i think my job is to try to produce results and company a company and attract people and great products and relationships with customers and your job is to help people pick and when to buy a stock, when to sell a stock and just to be informed and so what we've tried to do always is to turn the screen off, really really, and try to make the company as successful as we can for the long term as if you owned it all yourself, do what you think is right, steve burke likes to call that act like an owner not a renter and we've had as i just mentioned year in year out consistent growth and i believe we can continue that and we've repositioned the company, we imagined it, our products and i think we're playing a different game than other companies you're talking about. there's no comparison in television, if you want the best, x 1 is the best system in the world. if you want the best wi-fi,

xfinity is the best wi-fi. xfinity mobile is the best deal in the market for a great network with the best wi-fi and will have the new products from apple and google and samsung available to you when you want them and lg and others so we're pretty excited to have the products we've got with a company like nbc universal being -- growing at the fantastic rate, better than their fears and i think when you buy a company you're betting on a team and a consistency in our case i hope we continue the momentum of the past and i think we can. >> brian, the olympics have always been incredibly profitable and a big deal for nbc. yesterday the "wall street journal" ran a front page story that said the olympics are close but then in present seize tarend

"to north korea. that putting a damper on what happens? >> there seems to a pattern. we've been doing this for seven or so years of being proud to be the broadcaster for the olympics to all america and all technologies it's a fantastic franchise but every two years there is something. last olympics was in rio and we were plagued with rio stories and corruption and zika. in london before that. there were issues in as much and so yes there is always something unique but magically in almost every case when you get there you are just marvelled by these people coming into your living room and on to your devices that you didn't know you love and you fall in love every time and the stories and the ree roeic nature of how they compete, it's the lick picks and for 17 days you can add up abc, cbs, and fox and chances are the olympics will

have tripled the viewing of those combined if not more and it's where we go to perhaps get away from it all and enjoy it every couple years so i have no doubt this will be a special olympics and -- in so many ways that we can't even imagine right now. we have a great team literally of several thousand people who bring that broadcast to you and they are the best in the world at what they do. >> you know how nfl helped nbc on sunday nights that was part of the big comeback that put them back on top and you know what's happening now. i saw something recently that -- you know, there's a lot of issues but one issue people brought up is saturation and whether it's reached that point and i saw them talking about cutting back on thursday nights and it's not just networks, it's all over the place you can get it over the top as well there's different deliveries of the product now. do you get the feeling that it's

getting saturated at this point? have you heard they're going to cut the games on thursday night? as many as ten games >> i have not heard that i think the nfl has shown for a long time that they're at the best in sports at what they do they've got the biggest ago regular negotiation and we're proud and happy to be broadcasting thursday and sunday "sunday night football" was a game changer for nbc it's the number one show in television and i think look, there are lots more choices, the world has changed and so does the nfl and they'll have to look at their open business but honestly the ratings are getting better every week right now and it's early in the season so we're down about 5%. that's a lot lower than people originally thought and i think with each year you're not going audiences because you have too many new options but boy there's

no way to not get excited by the nfl. >> this is about the eagles with you, i think. >> it is about the eagles and let me say one other thing that you take the nbc strategy which has worked well and why we're in first place, it's a big event and big night strategy that includes the nfl, that includes the olympics, that includes "this is us" and "the voice" and "america's got talent" and you look at the super bowl next year and the world cup on telemundo if you're an advertiser and you want to reach large audiences, there's no better way than coming to nbc universal with our suite of offerings >> right, yeah, "squawk box." >> "squawk box" for sure. >> brian, we want to thank you very much for joining us today we really appreciate your time. >> thanks, team, see you soon. >> see you soon. >> in the meantime let's get you caught up on the store these are front and center the ecb will be releasing its latest interest rates decision

at 7:45 eastern time mario draghi is set to release details of a reduction in monetary stimulus and he will speak at 8:30 eastern time we'll bring you the highlights live ford reporting beating the bottom and top lines earnings of 43 cents a share were well above the 32 cents analysts expected. ford raising its full year outlook around shares up 1.8%. plus twitter shares are higher after the company reported earnings of ten cents a share. twitter adding four million users in the quarter, slight lly less than the street expected and twitter announcing it's been overcalculating its using numbers by about one to two million people since the fourth quarter of 2014. that stock up 8.5% we'll talk to an analyst. >> so they really added three this will viewers, i guess. >> probably. >> they definitely counted right

this time. coming up, we'll talk market with black rock's rust koesterich and bob corker will be our guest and he'll talk about the republican party and his public feud with president trump and maybe tax reform let's look at u.s. equity futures. we're looking at 6.5% on the ghp, nasdaq looking to be hier by 19. you're watching "squawk box. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.

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earnings, politics and the next fed head are some of the issues the markets are dealing with joining us is russ koesterich, portfolio manager for black rock's global allocation team. i can't remember the last few times -- stock selection makes a big difference but tops down in mac macro, are we overvalued, are we in the middle of a continuing bull market? is there a place to lessen your exposu exposure >> i think we're still a bull market stocks are not cheap but they're cheaper than bonds and that's been the case for many years and what's changed in the last year or two is we have an out-of-the-earnings recession, the economy is stabilized and a lot of the places that worried investors the last five or six

years with europe or china they've gone down the rankings in terms of the list of worries. >> so when you say an earnings recession, i guess there's sort of a slow growth period. maybe a revenue problem, revenue growth, i remember that for a few years, the weakness in the dollar has helped domestically so now we're out of that and it's full speed ahead with the earnings >> you're better, full speed ahead this hasn't been the best. >> i thought the day before it was brilliant, it was brilliant with caterpillar. >> it depends on the day. >> >> 74% of the time versus 69% of the time? >> companies -- for years we're thinking these margins have to come down. revenue growth as joe said has gotten better. the weak dollar has been a big tail wind. back in late 2016 we thought the dollar was going to the moon it pulled back quite a bit and

that's been nice for a lot of companies including places like caterpillar. >> you should know about bonds at your shop so is this? almost got to 250 is this it you know what i mean by that is it happening? >> is it the death of the bull market >> the bull market has gotten -- people would say -- i mean some people have called the global bond market the frothiest asset class in history is it? is it over >> i don't think it's over i don't think rates are going back to 6% rates will go higher but there are a lot of reason bond yields are as low as they are they're low because we have an older population, older people borrow less and they like bonds around they're low because we have institutions, banks, insurance companies, the need to buy more bonds none has changed so do yields back up a bit? i do but i don't think it's the death of the bond bull market.

it's so global and we can't go up the minute we go up in yield people from all over the world push us back down in yield. >> 45, 50 bips, if you're a german insurance company, 250 still seems like a good deal. >> at blackrock, people are going to ask you for diversification or portfolio stability, they'll want fixed income what do you tell them? don't get too excited about this >> i think both of those are correct. don't get too excited. your long-term returns were probably going to be lower it does mean you need to be in stocks, having said that you don't throw bonds out because the one thing bonds have reliably done is hedged that equity risk. this is the number we don't talk about, stock bond correlations but if you're building a multiasset portfolio, the biggest question you have to ask is do bonds continue to provide that negative correlation.

if the answer is yes, even if yields are this low, portfolios are going to be in bonds. >> >> does blackrock care who replaces her do you care yourself do you have a favorite >> i don't know. i've heard a lot of things from washington. >> but what would you like >> what would i like i think what will get you a bit of a pop in the market is probably continuity. continuity means yellen or powell i don't think the world falls apart. clearly it's a talented guy. the question is does that take you on a different path then the dovish path that the markets perceived for the last five or ten years. >> remember that -- what the marketed wanted in the

presidential contest was continuity $6 trillion later i don't know whether the continuity holds much water. >> it's fair you could be you sell off on tail for five minutes and then the market gets over it. i don't disagree. >> i still don't -- it's just everything -- it's such a happy ending where we are right now with the biggest stimulus in history and -- biggest central bank intervention in history for the financial crisis and all of a sudden we think they were perfectly successful and there will be no negative consequences to printing so much. is that really -- we're out of this we're out of the woods >> this was an experiment. i don't think we know the long-term impact and it's hard to disentangle from all the things going on. >> we're in the middle of it we're barely starting. >> whether or not five years this will lead to inflation people were calling about five years ago. >> what if we already have asset inflation. what if we don't know -- >> we have asset inflation. >> we do >> we do the markets are at 21 times

earnings, credit premiums are compressed we have asset inflation but we don't have the inflationmost people meant five or six years ago when they talked about the dangers. that has not manifested yet. >> russ, thanks. appreciate it. thank you. >> coming up, beer wings and baseball plus street reaction to twitter, twitah we'll speak to an analyst who points out stalled user growth we'll see if these results have impacted his latest call then the european central bank's decision on interest rates. market reaction, what mario draghi may say later this morning at his news conference >> that might make it interesting and exciting. >> "squawk box" will be right back hi, i'm the internet! you know what's difficult?

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and get two months free. welcome back to "squawk box. a check on u.s. equity futures, looking like a positive open across the board nasdaq up by 14, dow higher and the s&p looking to add seven at the open a couple stocks to watch, buffalo wild wing shares are soaring, the restaurant chain posting higher-than-expected earnings while raising its earnings forecast for the year

the ceo sally smith attributing the results to a mix of cost-saving initiatives and sales promotions and from wings to beer, ab inbev posting a mixed quarter. the company showing a 14% profit growth profits rose in brazil for the first time in two years but total volumes fell on weakness in the u.s. market the company says shipping to wholesalers was hampered by the hurricanes in florida and texas. game two of the world series last night, the houston astros beating the l.a. dodgers in a wild extra innings game. in the ninth astros left fielder mar win gonzalez homered to tie the game 3-3 the teams would battle for two more innings but the astros prevailed 7-6. the world series now shifts to minute maid park in houston for three games. game three, four, and five -- if i was a -- if i bled dodger blue, i'd much rather go there at 2-0 than 1-1.

so for fan this is is better let's sign up for seven right now and maybe they will be on the weekend when i can watch one. why don't they put the playoff series they had on -- a couple games started at 5:00. >> which is very inconvenient for those on the west coast. >> i don't care about those people what about me? what about me? look out for number one. i like -- i told you that. >> keep the camera on him. >> you know i like to watch. >> that's what i hear. >> chauncey gardener. >> twitter is out with earnings. the company reporting eps that beat expectations monthly active users. >> wow the stock is up about 9% overlooking the disclosure that it has overstated its users by about one to three million consistently since 2014. joining us on the squawk newsline, michael pacter

great to have you with us. >> thank you, melissa. >> did you think it was as good a quarter as a 9% pre-market gain was telling us? >> except for that dodger loss because i am on the west coast it was actually really good results. everything else is great, they have expenses under control and they surprised us a bit by growing both domestic and overall maus and that's good enough, i think, for the shorts to think about covering. they said they're going to get gap positive in q 4 for the first time ever and i think that's a good sign so they're doing the right thing. they're modestly growing users, that's okay. the one missing element is revenue growth their revenue was

down 4% year over year and it applies they'll be down in q 4 year over year when does that reverse i'm not sure we can make that call. >> does this quarter make it more or less likely that it remains a stand alone company. >> good question i don't know who buys them. >> i think they fit really well with facebook and i'm not sure that would be allowed. yes there are plenty of people with a ton of cash and nothing better to do them by twitter but i don't really see the disney combination, it doesn't make sense to me. there's really no meaningful synergies with google or with apple, with guys who have a ton of money maybe microsoft because of the linkedin move but i don't see it so i think they're stuck as a stand-alone company. until somebody is -- see astra t.j. i can fit and i don't see that with disney. >> michael, we'll leave it there, thanks for phoning in appreciate it, michael pachter.

>> we have a decision out from the ecb which says they'll be cutting their monthly bond purchases to $30 billion steve leishman has more. steve? >> the ecb coming through with expectations saying beginning in january it will reduce the amount of quantitative easing from 60 billion euro down to 30 billion. at the same time it's extending q-e. it was supposed to lapse they're extending qe into september. so you get it longer but less than you were going to get than you had otherwise expected also keeping the refinance rate unchanged at minus 0.4 that's negative over there and saying it will keep rates low past quantitative easing i'm seaing weak ness

we're down to 40 -- call it 44 a few basis points off the german ten year this is very much as expected we did a survey on this, our fed survey asking people what they thought the ecb stepped down to and $30 billion u.s. was the number so delivering very much on what was expected becky? >> steve, it's not just that they're going to continue for longer going to september, there's even a comment that the qe purchases could go beyond september 2018 if necessary. i guess the reason they're buying less is because there's not much more to buy, right? >> that's an issue as well they found things to buy but there's always been a question as to whether or not they're stepping too far down. if people are concerned the fed was distorting markets by going

into government backed mortgage backed securities over in europe they're doing much more down to corporate bonds and all sorts of paper. anything with an interest rate on it they felt they could buy they don't have another mandate like the fed and as long as that is running low draghi will keep qe in place until inflation behaves the way they want it to. >> all right steve, thank you very much we'll check in with you later. mario draghi will be talking about the plan in just a bit we'll have a preview of what he could say next steve will cover this live also in the next hour, senator bob corker will be joining us a programming note, don't miss brian moynihan on power lunch speaking to wilfred frost

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welcome back nelson peltz says being an actist investor can sometimes get ugly here's what he said on the

netanyane net-net conference. >> i think all we dealt with is facts and i believe there's a direct correlation between how poorly a company is doing and how big a fight they put up. when you look at the proxy fight we've had, heinz, dupont and now png, those are three underperforming countries wh underperforming companies when we got there and i think we helped them all. >> shares of procter & gamble are more than 6% this month. also at the conference, commerce secretary wilbur ross asked peltz if he still supported the president. >> when you get on a plane, you root for the pilot okay [ laughter ] we got a pilot, his name is trump and like it or not we only have one pilot so why don't we get behind this

pilot and support him instead of crying in our beer that somebody else didn't get elected and picking him to pieces. is he perfect? no but he is our pilot so let's land this plane. >> you have to wonder if he's making a reference or anything to jeff flake, bob corker, what's going on in washington in terms of having one pilot, get on the plane. >> yeah. someone else said that to me, too, as a reason --. up next, bob corker. we'll ask him about that also, look at futures on the biggest day of the season accelerating up to 75 on the dow, almost seven on the s&p 12, the sdnaaq getting back today. we'll be back after a quick break. [vo] quickbooks introduces rodney.

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they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today. earnings season kicks into high gear, a parade of quarterly results including twitter, comcast and ford the numbers straight ahead the tax reform battle. will senator bob corker's feud with the president impact the

way he votes he'll join us and maybe shed light on that plus the ecb out with its latest rate decision next up, the central bank's president holds a news conference we have the highlights and the market reaction as the final hour of "squawk box" begins right now. >> announcer: live from the most powerful city in the world, new york, this is "squawk box. >> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq i'm joe kernan along with becky quick and melissa lee. the news today, the ecb leaving rates unchanged. >> however -- >> however, the central bank announced it will extend a quantitative easing through september of next year butly so the pace of bond purchases to 30 billion euros. ecb president mario draghi will

hold a news conference at 8:30 a.m. eastern time and we wil bring you the headlines. the futures are solidly in the green, up 77, 76 points now on the dow. in europe we'd see some reaction perhaps. the euros are happy in green it's like a christmas tree i can't believe it's coming. >> christmas is definitely on its way. ha l we halloween next week. >> 59 days until christmas or something. >> ahh. >> then halloween, thanksgiving and christmas. >> in quick succession it's holidays all holidays all the time. >> and it's food and candy and fatness. can we look at the ten-year. i want to look at our ten year as well. the ten-year was yielding a seven month high you can see 2.19% for our yield.

>> that helps us in terms of keeping yields lower we saw that spike yesterday, there was the possibility that they would be more hawkish, we had the rates go up and we are seeing that abate. >> we've been watching this against the backdrop of earnings season and today is the busiest day of earnings season there are 67 s&p companies, 67 s&p 500 companies that are out with results today we'll get you caught up on reports with cnbc market's commentator mark santoli. >> everything looks good so far. better than expected, roughly as expected because we get about 70% of those and the growth rate of 7% is well ahead of what we thought it would be i think the stock reaction has been better than last quarter. last quarter you had a complete

sale on the news results so today this quarter so far two weeks slightly better but holding the overall market in place, before jayne morgan reported the, is a s&p was at 2. during the earnings season you want to hold your ground. >> let's talk about individual stocks. >> check out shares of twitter social media company beat on the top and bottom line. daily active users up 14% year over year. twitter adjusted prior monthly active user numbers downward since the fourth quarter of 2014 it's been overcalculating user numbers by one to two million but they're listening to the beat stocks up by 10%. >> for a long time people were saying well, twitter has to get away from this metric of user growth it seems like user growth will be enough because it tells you where the expectations were and they were low in terms of near term results and this stock has

been bouncing around mostly on hopes of a deal so it looks like relief this morning. >> this will be a great thing for you. do you tweet a lot >> i left barrens five years ago so i feel like i didn't stay until the last print subscriber -- >> in your life does five years seem like a long time now? >> no, i was there for 15. >> what do you say for >> i feel like it's the tape, the news wire. >> do you put information out? >> sure. >> you do? >>. >> watch your tuchus when i'm scrolling i'm worried i'm going to hit a like. >> i have done that and hit retweet. but i don't understand. >> i didn't even intentional

intentionally -- >> sounds like an excuse. >> there was nothing interesting about what i like. it's a quagmire. >> everyone can be a star social media democratizes, youtube anybody can become a star. all these platforms enables people to achieve fame so keep reading. he's going to comment on all of these. >> we'll talk about the earnings. >> this is your turn. >> this is what i heard. >> awesome nbc universal -- he's tweeting out how he feels come cast reporting better-than-expected earnings revenue comcast saw 214,000 new high speed internet ads during the core although it lost 125,000 video customers. comcast is classic they said 100 to 150. >> and it was right in the middle. >> they say nbc universal continues its strong

performance. we talked to brian roberts in the last hour. >> my view is that but this is the 63rd straight quarter we've had catch flow over 15 years straight it's about a balance between customer metrics and revenue and cash flow growth and i'm proud of that we've been able to do that. >> look at the shares of comcast down 1% after -- they were up in anticipation giving back what the stock gained yesterday. >> what was interesting is he broke down the video subscribers after at&t and what we heard from come cast he said about 100,000 was the competitive environment, 25,000 because of the hurricanes. >> and i think that's the raw

nerve that invests or have is just that fixation on video subs and everyone assumes a slow drip of question klein of declines in subkriscribers bt they have a burden of proof. obviously the story for a long time has been we can be agnostic as to how people want to get their broadband and entertainment and people think comcast is the one closest to being agnostic. >> 125 last year theyadded 149,000 so losing 100 ex-hurricanes is a sizable number. >> it is and that is why you've seen when you have the disney espn sub numbers, the market is quick to punish. >> they're gripped on that case for the entire media industry. >> we've had a couple analysts who have said they look at comcast in a slightly different light. that's something brian roberts

tried to say himself because of the broadband, because that's the thing that differentiates them from satellite television. >> that's true but what's fascinate sk all of these companies that started out as being the pipe tried to be something else at&t is becoming a massive content company. it didn't want to be that connection so it seems as if yes comcast has the integration on that side, too, but it's not just enough. i don't think the street will be happy if you say we're a broadband utility. maybe that's why the stock is down 22% from its 52 week highs. >> obviously you have your territory and the rest but -- >> well, ford also reporting today beating on the top and bottom lines the automakers were driven by strong performance in north america and it raises full year forecast bob shanks joined us in the last hour. >> what we are working to do is improve the fitness of the business better as a strong foundation as we enter an important transitional period

for the whole seconder as we take advantage of emerging technologies such as avs and evs so this is a down payment we talked about and we're excited to see this start. >> ford shares are up by 1.6%. this follows strong results out of gm. >> they're in a good spot. ford stock has a lot of catching up to do it's been fascinating to see gm take on this character on the street as the company of the future in terms of electric vehicles so ford is a show-me but right now you've had a good sweet spot. >> in terms of catchup, it's interesting. morgan stanley downgrades gm saying it's fully valued given where its peers are priced so you have to wonder if the baton

is passed. >> they should trade more it used to be if you had pickup sales you loved it, now it's suspect. u.p.s. out with its latest quarterly numbers. morgan brennan joins us now. good morgan, morning good morning, morgan eps of $1.45 that matched estimates for u.p.s., revenue of $15.98 billion the company raising the low end of 2017 earnings guidance, that's 585 to 610 per share international leading the growth daily export volumes up at 19% freight, the other business that doesn't involve consumers, but the hurricanes had a $50 million negative impact on domestic profit but the big focus today, what will happen with peak holiday season this is likely to again be a

record for package volumes we already know u.p.s. plans to hire 95,000 workers but expect to hear much more. analysts want to hear how the big capital investments will help with demand and how holiday surcharges will help to counter costs and drive better profitability. that is an issue that has played out in previous peak seasons other topics, tax reform amazon and u.p.s.'s take on economic growth since it's considered such a bellwether also cfo richard peretz will be on squa"squawk on the street" t morning. back over to you. >> thanks so much morgan brennan. this is interesting becaused the

problems with holiday. >> raising guidance for the holiday quarter is a good thing. you have to prove it, right? it's amazing how companies have become so seasonally dependent it seems like there's a perception there's more risk than opportunity in terms of whether they can add to capacity and avoid glitches. >> up next, senator bob corker is going to join us. it will be tax reform as we focus on that ch we will touch on his newt with president trump but just in a sense for what it means for tax reform is pertinent. stay tuned, you're watching "squawk box" on cnbc you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away-

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just about effoveryday ther something happening in terms of tax reform important votes are at a point where the rubber is, i think, sort of meeting the road joining us to talk about that, senator bob corker, chair of the

foreign relations committee, member of the budget and banking committee, senator, great to have you on today. >> good to be with you, thank you, yes, sir. >> when i talked to the president yesterday, everyone loves to talk about this other stuff, they're like what happened this? is that going to change their votes and i want to ask you would something like what we've all witnessed in the past week or two, would that ever affect what you do when it comes to tax reform or your vote? >> absolutely not. this tax reform is our agenda, the republican senate agenda and it would be like somebody in your listening audience representing their company sitting across the table from someone they may have a low regard for but are they going to do something that will damage their company because of that? absolutely not this is something that can be great for our nation i'm all in i think you know it was a

corker/toomey, toomey/corker compromise and the budget committee allowing this to go forward. now we begin the tough work. this will be the biggest tax rewrite since 1986 it's a tremendous undertaking and, joe, i think what's happened is because of what toomey and i agreed to and the budget committee passed out and passed out on the floor, people have been focused on the trillion and a half dollars. people don't realize -- and they shouldn't because they're busy building companies and doing other things -- that much of that was a parliamentary maneuver to just free us for tax reform so let me walk through the numbers because i think this is what people are going to be focused on over the next three or four weeks. there's a trillion and a half that we pass over the budget committee. half a trillion of that was just to align us to current policy so that is something to allow us to do tax policy working off the policy base we have today. there was a trillion dollar

number in there to allow for dynamic scoring assuming it happens. the meat of this let me put a different way, the spinach of this is the four trillion dollars, the four trillion dollars in loophole closings, credit closings, simplifying the code that needs to take place. so people should look at it this way. there's five trillion dollars that we have here. a trillion of it could, could, be made up with dynamic scoring. it's got to prove out. but 80% of it, $4 trillion of it is closing loopholes when i was on your program last, i don't think people understood that that's what's really happening here is tax reform and so, look, this is where the real -- and, look, i'm all for every penny of the $4 trillion but we have to hang tough to get there and the fact is that it worries me that i see people dealing away things that we'll need we'll get into the quick of

special interest groups. we're going to be dealing with things that -- people are going to go nuts over but it's what it will tape to have the biggest tax rewrite since 18986. i'm all in i want the dynamic scoring to prove out but it proves out if you do this significant tax reform that we have under way. >> i don't think everyone understands when you talk to $4 trillion, they're talking about let's assume even more dynamics scoring. but under budgetary constraints, you're stuck with a trillion and a half it's nothing something you decided on, it's the way it is so the $4 trillion has to come out one way or the other. >> it's got to come out. >> what's interesting is, i don't think you're worried about schumer and the democrats, you're worrying about business lobbying they're going to come after you guys on every one of these sacred cows and the guys that

are going to vote for is going to have to have intestinal fortitude that they've never been able to demonstrate in the past i don't think at least not this current group, have they? >> joe, this -- again, i look in people's eyes and -- >> you see fear. >> i see fear. and this is what i've been trying to say the whole time and last time i was on, again, i don't think it was dawning on people what is really happening here but to get corporate rates to 20%, deal with the territorial issues, deal with the individual rate issues, deal with the 25% pass through issue, you have got to get the full $4 trillion and this is going to be interesting. i'm ready. i love it, i love it i hope we're going to be successful but when i see maybe the president the other day -- and, again, i don't want to start a dispute -- or i see house members talking about fiddling with something, you cannot be dealing away things. two things happen. number one, you erode that $4

trillion, but secondly if groups see, joe, that you're willing to deal something away if they raise enough cane, the whole thing will start falling apart you understand we have to hang tough. >> hence you're worried about the president -- since it's being done in congress, those comments from you the other day then you see the 401(k) comments, you want to -- before you give anything away, you want to -- you want this to be written to know what you need to fight for. have i got that? >> you have to have the whole cafeteria of the tax code. >> even 401(k)s, you need everything on the table. >> you may decide it's not something you want to do but you've got to add up to $4 trillion i had a great meeting the other day with our tax writers who have a tremendous respect for and i'm up under the hood because of the role i played in this and will continue to play but we're adding up all these tough, tough measures and about $3.6 trillion, getting that

additional 400 is -- i don't want to say it on this program because i don't want to hurt our chances for what we need to do but it is going to be incredibly painful. that's what we need to do to simplify the code which is what we've told people to get the dynamic growth we're talking about but importantly get these business rates down to where we can be competitive with the industrialized world. >> real quickly senator corker, two issues you're at $3.6 trillion? does that include the 401(k) options? >> i'm notgoing to get into what it does and doesn't, i'm sorry becky, i'd love to. >> i understand that. >> but i want our tax writers to have all that they need to do working together there's some base erosion issues they've got to work through with the business community there are all kinds of individual rate issues they have to work through. i want them to have the head --

i don't want this to add to the deficit but if we do it right they won't. >> let me clarify another issue, i won't go through piece by piece because i understand your overall strategy what i heard at the top of the interview was you say "i'm all in" in regards to tax reform there has been so much speculation that you are going to be a holdout not just because of the bickering back and forth but more important ly importantf what you said about being a deficit hawk you won't vote for anything that adds a dime to the deficit you're in but only if you're not doing this on dynamic scoring. so what i'm trying to parse is "i'm all in. what does that mean? >> look, i'm all in in closing $4 trillion of loopholes i'm all in for locking arms and having the intestinal fortitude to do it

if we do it right, i believe we'll get the dynamic zheer is necessary to close that trillion dollars that i was talking about on the front end it's got to be proven. we have to have appropriate scoring but i was willing in the budget committee as a deficit hawk to give that trillion dollars head room. it's got to prove out. it won't prove out if we don't do the things i was talking about. the two interlock with each other and work with each other i believe if we will lock arms, be tough, close these loopholes, do the things we need to do on the business side, i believe we can get the growth but it has to prove itself out and people who are legitimate scorers will do that if we cut the 4 trltd, i think we have a chance. >> senator, the individual sides and the pass through, i think in

the past you've mentioned that the -- what we really want, the holy grail is corporate tax reform. >> that's what i believe, yes. >> would it be easier if some of that other stuff wasn't included because then you have to pay for that, too? is it politically impossible to do it without being celebrated as a tax cut for individuals is that why we're -- is it pr? >> it is i can't believe i'm going to say this kind of programming and the kind of incoming i'm getting ready to get, okay but some of the things we're doing, i'm sorry, are ridiculous i'm sorry. we live in a political world not going to drive one ounce of economic growth but it's -- you know, it's unfortunately what you have to do is to palt a tax bill we could take a lot of this off and throw in the the trash can and do something that grows our

economy. >> you can go to 15 and by paying for the -- on corporate you may end up having to settle for 25 and it's almost like -- >> then it falls apart, joe. once you begin that -- here's what i agree with, we've been saying in our caucus we can do something really big, hang tough, eat the spinach, fight off the special interests and do something great for our country and there will be just as much pain there as there will be doing something small and focusing only on a few special interests. both are going to be painful why don't we do something great for our nation but when you talk about adjusting the corporate rate up, i think things start falling apart. i think you've amized it right we're doing a lot of things that aren't pro-growth, it's unfortunate. it's a buying off of people to pass tax reform, i hate to say

it that way. >> i can't believe you're saying that, either. >> but anyway, we have ten seconds. is there any chance for a detente with you and the president? can you answer that in 10 seconds? what should we be expecting? >> look, i don't -- one of the things i don't think about when i wake up in the morning is what's happening over there. i have a job to do and i've been hired to do it i have 14 months left and i'm going to go out with afterburners trying to make good things happen. >> senator, thanks for coming on today and i think we kept it where we wanted to be. we need to know these things and it's going to be tough medicine and you guys have to have some -- feet of clay won't make it this time thank you. >> thank you. >> fks, olwhen we come back, we have weekly jobless claims, stick around

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welcome back to "squawk box. breaking news, our latest jobless claims, 233,000, that's down exactly 10,000 from a slightly revised 223,000 continuing claims just a bit under 1.9 at 1.89. three million, that's hardly a change from last week. september on wholesale inventories up 0.3%. september trade balance which is

a deficit, minus $64 billion, that's darn close to expectations and sequentially bigger deficitments last look originally released at 62.9, now stands at 63.3 billion and finally september read on retail inventories. we looked at wholesale, up three-tenths retail inventories went in the other direction, they're down 1% and that follows an unrevised up 0.7% so a big shift there, we have pending home sales maybe the big news is mario draghi and the ecb many are calling it a dovish taper. i want to hear the press conference but the initial read as expected, the euro fell but it didn't fall out of it range it needs to break its last 3 is 1 days if you look at the intradays and an interest rates our treasury complex eased back just a bit today is a big day, the press conference will be key remember, there's still a december ecb meeting and all

this doesn't start until next year mario draghi probably started about a minute ago melissa lee, back to you. >> thank you very much, we're monitoring those headlines which will be important to the markets, we saw futures at a pre-market session high. check out shares of celgene. several misses here. revenue missed estimates career. sales of key drugs including oe tesla, they all missed estimates as well. the company also lowered its long-term 2020 targets so now it's down about 14.25% keep in mind, too that we had disappointing from am general last night disappointing number here we are, amgen and bristol-myers. >> amgen reporting better -- let's see the -- wow, down 3.5%.

better-than-expected third quarter profit, lower costs and improved operating markets however it was the performance of key drugs that the disappointing investors. including the cholesterol drug repatha and that's not quite a celgene loss these are big companies. celgene is almost, just under $100 billion and amgen $129 billion so i don't know if these are biotech. >> they're huge components they're big components of the biotech etf so that will have pressure today meantime, big tech companies are out with earnings. let's look at what's working in that sector. joining us brian mcmann, chief investment officer at thornburgh management overall on the tech trade we have a lot of big caps reporting tonight. bank stocks have had some difficulty in the past eight trading sessions or so and we're seeing this tilt more towards these late stage cyclical companies, industrials, energy, i'm just wondering if you think there's been a change at all in

the way investors are perceiving technology. >> i think the biggest change is investors are just using more and more technology and that's a le secular trend. you'll have more phones with more devices, more internet of things, that's one reason we like taiwan's semiconductor. it really is the foundation of so much of technology and different device manufacturers will go up and down but we like the people at the foundation especially well. >> you also like china mobile. how important will the iphone 10 be to this company. >> i think the iphone 10 will be important. the biggest thing is china mobile asked almost 900 million subscribers, phone users and more than 100 million fixed line

broadband subscribers and when i look at what they charge their average revenue for a mobile user is 60 rmb just to put that in terms. if you're in beijing or shanghai, that's two cafe lattes at starbucks per month and for the fixed line it's 35 rmb that's one cafe latte per month. so here's a company with huge net cash trading at less times and the dividend is over 7%, they declared a special dividend this year and i don't see what is wrong at all. in fact, i love this thing even though it's not perform iing in 2017 but it's nice to have stocks that i think have a lot of gas left in the tank. >> capital one financial is another one that you like.

a bunch of credit card issuers have reported and put to bed fears about rising delinquencies or reserves put aside for the expectation of rising delinquencies. are you confident the consumer is in good shape and will remain in good shape? >> yeah, i think this goes into two of your previous stories, jobless claims are down, employment is up median wages for full-time employed people are increasing at a rate of h 4% now year over year this is all very, very good for the landscape for capital one and capital one has been building loss reserves for more than three years capital one's earnings per share this year are expected to come in in the high 7

but their trailing to loss reserves is more than $15 per share. so if we can back off the loss reserves and they like to build what the other banks haven't begun to build, capital one has been in this for a long time, long time ceo in this business you put the backdrop of good labor markets, raising wages, strong economy and lost reserves that have been building for a long time and a reasonable valuation at eleven times earnings, cheaper than other banks, yeah, we like it. >> brian, thanks so much brian mcmahon, thornburgh coming up, ecb president mario draghi holding a news conference we're monitoring it and we'll bring you the headlines as we go to break, let's look at u.s. equity futures. we saw them as high as 81 on the dow. nasdaq 6.5, s&p 6.5 as well at the open stay tuned

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good morning let's get you caught up on stocks to watch.

american airlines came in two cents better than expected with quarterly earnings of $1.42 a share. revenue was below forecast as with other airlines, the three hurricanes impacted operations stock is up by almost 2% rail operator union pacific beating estimates by a penny with profit of $1.50 a share while the revenue beat estimates as well. union pacific making notes of hurricanes impacting its earnings and we'll see where that stock trades today. supermarket operator super value is facing pressure from an activist investor. investment fund operator blackwell's capital is one of the company's biggest shareholders the "wall street journal" is reporting the firm is pushing supervalue to try and sell dozens of stores and bring in new management. >> ecb president mario draghi holding a news conference. steve leishman is monitoring let's see if he's awake. >> awake of course i'm a wake, joe. >> because you find this to be very compelling? >> very exciting very exciting. a big change big change in the --

>> okay. >> in the euro -- european central bank policy. let he reiterate what we knew at 7:45 this morning that they're going to be reducing their quantitative'sing. going down to 30 billion euros a month. that begins in january. >> it will continue that quantitative easing until september of 2018. it was otherwise set to expire in december. now mario draghi in his opening statement saying hey, look, we're still stimulating the economy, the economy is still -- still needs stimulus and also saying the interest rates will remain lowell past the time of quantitative easing ending also saying the economic expansion, however, is solid and it's broad-based and he expects it to continue that way, especially because it's getting some help from the global economy which is where he sees the biggest risk, that through -- so a pretty good -- what do you want to say, health

checkup from mario draghi about the eurozone economy let's say the previous program didn't exist and you had a central bank chair saying that we're going to do 30 billion euro of qe a month and keep rates at 0.4% for a long time. you would think that was an economy that needed a lot of help. >> the takeaway i got from all of this is the rates are going to be lower, well past qe, but qe it looks like is going to be much longer than we thought so if you're trying to game out how long rates are low, you have to go further and further down the board and that means we don't necessarily have to be in a rush to raise rates here. >> the market got aheld of itself thinking that the ecb was going to start to tighten. tighten, are you out of your mind it's 30 billion euros continued of qe, still minus 0.4

the place or time of convergence between the ecb and the fed is now arguably further down the road than previously, apropos of your statement that it's continuing to september. >> and beyond potentially. >> right the fed is raising rates, it has a positive interest rate which makes it one of the better central banks in the room as they go. they'll raise again probably in december one thing that may not have been noticed is the market beginning to price in another rate hike next year. that's one of the reasons you have the two year up where it is at the 160 range here. this idea of convergence will be meeting sometime, maybe joe can talk about meeting down on a plane into infinity but it will be a while. >> oh, yeah. i don't think you can measure that. >> no, but you can think about it, it's cool. >> two parallel lines don't

meet, do they? >> well, they'll eventually conver converge. >> parallel? well, if it passes singularity i think it can bend. >> space-time continuum, joe. >> it bends before it started, right. >> they're begging us to tease steve, thank you. >> why would they rush that conversation so interesting when we come back, nation value vision is set to start trading under the sticker "eye." that means all eyes will be on the optical retailer get it >> clever. that's a leishman kernan joke. if you'd have told me three years ago... that we'd be downloading in seconds, what used to take... minutes. that guests would compliment our wifi. that we could video conference... and do it like that. (snaps) if you'd have told me that i could afford... a gig-speed. a gig-speed network. it's like 20 times faster than what most people have. i'd of said... i'd of said you're dreaming.

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national vision is eyeing the public markets the optical retailer pricing its ipo at $22 a share that's above the range it will begin trading under the ticker eye, e-y-e. joining us now is reade fahs, you would like to say that you are an optical retail where an emphasis on optical not retail this is a different situation. >> this is a different situation because the process of buying glasses and contacts starts with an eye exam and we are an ultra

low cost provider of this medical necessity. once your eyes go bad, you need glasses or contacts and we have at our america's best store we have free eye exams with low-cost glasses starting at $69 for two pairs. >> i think about that because i am somebody who winds up buying just about everything online i would do 1-800-contacts except for that i need an eye exam once a year before anybody will sell them to me. >> that's a rakcket. >> even though it's your vision. >> the way the guy explained it to me is that they do look to see if there's any type of -- any issues. >> glaucoma. >> they could see a tumor or something. >> this is why our -- >> art's worn contacts >> are these free optometrists >> we have 2,000 optometrists practicing in our thousand stores it has to start with eye exams because there are all sorts of eye diseases that can be found with this and when we bundle the eye exam in in with the cost of glasses and contacts people get

the eye exam and we can check for the health of their eyes we save lives in these stores next to marshall's. >> let's talk about that your model is to be close to discount retailers or in some cases in a discount retailer like a walmart. >> so we have thre america's best contacts and eyeglasses, eyeglass world and stores inside walmart, as well, as well as a lot of online sites like discountcontacts.com and discounteyeglasses.com all ultralow closet. >> i get that you want to focus on the optical as opposed to the retail, but your exposure is basically retail, right? you lease stores, you own stores, and you face online competition like from warby parker so how are you dealing with that >> i think it's interesting, many of the online players that came out loud and proud about being online eye glass sale people realize that people want to shop in stores. so warby parker has started opening lots of stores in order

to serve that need as well they have 70 stores and we have over 1,000 stores. and our customer is just looking for the best deal available. looking to save money on this expensive necessity. >> you lease space from walmart and that makes up about 13% of your revenue while that's a great business, some people have said that makes you reliant on them. what can you do with the ipo money? >> the ipo money is mostly to pay down debt, but we're going to continue to bang out america's best stores and bang out eyeglass world stores, because america wants to save money on glasses and contacts. and we're going to continue to be the best partner walmart ever had. >> reid, i want to thank you very much for joining us today >> thank you >> good luck at the opening bell >> can we sell one contact at one time >> you can -- >> you can buy a pair of the same prescription. >> i don't need it in my left eye. >> you know, only one eye, so i'm always walking around in circles.

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let's get down to the new york stock exchange, jim cramer joins us the futures started off sort of slowly been gaining some steam again. and i think earnings related again, isn't it, jim >> yeah, i think so. we've got enough that are good that will make it so that people

feel okay. i mean, you know, big auto company does well. internet company does well some of the biotechs, obviously, really selling off here. but they're not in control >> yep we had brian roberts on for quite a while and a lot going on i mean, this is a true multi-faceted company. and what we've been kicking around is whether the fear of cord-cutting is justified. it's certainly justified with some companies, but if you've got all of these different operations, is it mitigated to some extent? stock's down down 2.5%. >> yeah, stock was up earlier. look, i look at cash flow. and the cash flow was fabulous here and it bought back a lot of stock. i thought that your question about wi-fi was right. at the same time, look, there is a consensus view that people are not going to take cable. but there's a consensus view that everybody needs wi-fi

so, they ought to realize that you may think that you're not buyingcomcast, but you are, as many of us do. so i don't know, i thought there were many parts that were good, that cash flow, being the most important, let people sell it. i bet you they'd buy every share. >> jim, my own something that i saw, i know i can talk to you about it, because you probably saw it the last time 200-plus-teams were in the world series was baltimore versus cincinnati in 1970 so it's been 47 years. and i was talking to someone on twitter. two words, brooks robinson do you remember that >> oh, my god, brooks robinson there were no singles in the infield. there were no singles that went to that side >> and he hit about .500 in that series and in the champion and then nothing got by him and he got in the hall of fame 93% on the first -- >> oh, did he deserve it

i remember, if you hit it to the left side, it was an out right side it was a home run, left side it was an out. >> anderson said, if i drop this paper plate, i'm going to get thrown out at first anyway he's going to pick it up on one bounce >> he was beautiful. i loved him. zblan >> thanks, jim see you in a couple minutes.

time for your kensho stat of the day. the vix has jumped 20% in the past week. after a similar move, the fear index tends to reverse, dropping 11%.

all right. welcome back, everybody. quick check on the markets dow has picked up through the session, now indicated to open up by about 80 points. s&p futures up by close to 6 the nasdaq up by close to 3. melissa, great to have you here today. we'll see you later on power lurch and right back here on "fast money. make sure you join us tomorrow right now, it's time for "squawk on the street. good thursday morning. welcome to squawk o"squawk on te stree street". i'm carl quint tanilla with dav faber and jim cramer lots of tech giants tonight. futures are up after yesterday's drop, the worst day for stocks since early september. a little bit more hawkish than some expected. and bunds rally. our road map begins with a flood of corporate results the busiest day for third quarter earnings twitter,