happy halloween. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen and melissa lee. joe wore an orange tie today in honor of halloween >> penelope's birthday >> penelope's birthday becky has the day off. futures this morning, things are looking up green arrows across the board. nasdaq up about 14 points. s&p looking to open about 2 1/2 points higher. overnight in asia. the bank of japan held interest rates steady the nikkei closed flat hang seng slightly lower shanghai composite slightly higher

in europe, germany is closed today. so, you don't need to worry about that everything else marginally in the green. a bit better than marginally in the green. quick look at crude. wti trading now at 54.17. facebook says 126 million americans may have seen russia-linked political posts during the 2016 political campaign that's half of all eligible u.s. voters, far more than facebook disclosed. twitter raised the number of accounts linked to russian operatives by ten fold google said advertisers spent $4700 during the campaign. all of this as executives from facebook, twitter and alphabet head to washington to talk more about their role in the elect n election. the "wall street journal" says qualcomm is not giving apple access needed to test its

chips in devices apple said to be building its devices only from chips from intel and media tech >> you know if you get one of the new 10s, one version has a qualcomm chip in it, the other version has an intel chip. does it matter by region >> no, which met work. verizon needs to use the qualcomm chip. on the att n tshghe at&t networt the other one. sorry, if you're on at&t, you can buy the other one. the qualcomm one does everything >> you were up all night reading your pc magazine >> no, there's a whole debate about who makes the better chip, which is to say there's talk among the techies you wanted to have the better chip >> lays, nobody can eat just

one. that's a lot of information. >> you have to wonder what changes next year. >> the ten is not out yet s it >> friday. >> you have a preorder >> doing little research >> i was in saudi arabia i didn't have the time to -- i will get one i'll buy one >> in the photo shoot, you took some time. you weren't focusing on -- >> you have to stay -- it was last wednesday, whatever day that was, you had to, you know -- >> are you ordering one? that's the question? my plan is to order one. >> five to six weeks lead time >> that's a problem. i wanted one morequick limit. >> you'll boy your oeb buy your own. >> i will buy my own >>

shares of sprint and t-mobile, reportedly softbank is calling off merger talks with t-mobile david faber poured some cold water on those reports sources telling him while the two companies are running into governance and pricing issues, softbank has no intention of running from the deal some stocks to watch today including sony those shares are move i hiing hr after better than expected second quarter results thanks to a strong performance from its playstation gaming sony posting a 22% rise in sales and a 346% rise in profits the company raising full-year forecasts, expecting the fiscal year ending in march will be its most profitable ever when i think of sony, i think of samsung, doesn't everyone have a samsung tv now, not necessarily a trinitron? sony announca -- samsung announa

shakeup. announcing record third quarter profit and strong demand for memory chips bp beating expectations thanks to an increase in oil and gas production they also announced a share buyback program. stocks made it through the august to october period with a record climb to highs, but has the market front-loaded the gains of november and september. mike santoli has the state of the rally heading into the year-end >> you know what today is aside from halloween and important birthdays? the end of that six-month period that is supposed to be the worst six months of the year sell in may. didn't work this year. hasn't aged well the bull market is up 7% since may 1st. that's better than historical average. so i looked back at years when

you had baea better than 5% ret during those six months, those 26 years and you didn't frontload the gains. the following six months november through april were better than average over that period essentially the lesson is markets that are strong, markets that defy normal seasonal tendencies to be weak as this one has this year tend to stay that way you find these markets in the 50s, 60s, 80s and 90s. no guarantees because i think we'll on pullback watch. the longest stretch without a 3% pullback it has been a ragged rally the last few weeks you have more than 20% stocks in the s&p 500 are down 5% this month. even though the market as whole -- the index is at new highs. >> more than 25% -- >> about 115 stocks down more than 5%. it's been an uneven march to this new high just eventually. but that's happened before you basically had the handful of leaders carrying the way >> did you tell me off camera,

was did you tell me about the advertising stocks >> wpp, i think warranted that >> we have them on today you know that. sir martin sorrell is n. you should stick around you can grill him. >> i just look at the stocks they were going south fast for the last couple of weeks and months and it's not just about the big picture, google facebook thing, it's about package food companies and budgets getting cut. i think there's a whole business model disruption thing going on. >> that might be true, too all right. thank you. >> thank you >> i've been waiting for this. let's bring in alec driilex dryd steven rosutto from mizuho securities steven, here's where i will come at you from the most interesting

thing in the notes for you, you don't think this back-to-back 3% growth that we've seen is more significant than the couple quarters we saw in 2014. and you think the underlying economy, the base rate is 2.2% i think that was the consensus about 8, 9, 10 months ago. you were there as well back then but more eventually i think a lot of people are saying there's a global siynchronous growth happening now. i mentioned larry kudlow i hate twitter, but i did see on twitter that larry said this is the best economy in ten years. so the new consensus i'm starting to think is maybe this is sustainable why do you think it isn't sustainable now? do you think this current quarter we're in will be a big disappointment . >> this will be the longest

expansion in american history and one of the reasons is it's been so tepid. you will see fits and starts in 2014 everyone got all gung ho the global economy was picking up everything was doing well. the u.s. economy had much better quarters than it just saw on a back-to-back basis in the second and third quarter of the year then it fizzled. it fizzled because the federal reserve began to move away from accommodation. the front end of the curve moved up the curve flattened, we're doing exactly the same thing now the combination of that with the fact that we're most likely to get a new chair at fomc, and every chair is tested to see if they'll have grades, i expect we'll see this go forward as this curve flattens to a pancake. that will pull the economy back down >> and you're talking about the economy going slower and the

market >> i didn't say anything about the equity market. interest rates front end of the treasury curve keeps moving higher relative to a stable long end, back end of the curve. the curve flattens that will probably, i believe, trigger the long-awaited correction that we've been waiting for in equities >> your point was that the back-to-back 3% is a loser, but it will cause the fed to go up too quickly. >> that's correct. that's what happened in 2014 they'll follow through as well what makes it worse t will be a new chair, markets will test to see if they can raise rates. >> andrueandrew, you know we're getting new chairs, we're getting a new set, you know why? none of us will slouch we're getting armless chairs we deliberately did that >> really? >> yes i'm like this all the time or like this it's funny you mention that.

>> good for your core. >> much better for the core. we should be sitting on those -- >> abs of steel are coming for you. >> you should just be standing >> that's what they say. what about those balls, where you have to sit -- >> you want to us sit on balls >> inflatable workout things. >> >> the new thing is standing. they say sitting is killing you. >> it's the new smoking. >> you're supposed to stand at your desk. you're supposed to stand at your desk what if you sit while eating sugar. you're dead, right those two things sorry. alex, you're waiting patiently we're coming to you. >> it's wise potato chips, by the way. >> i can eat just one wise >> i can't >> where are you on pringles >> do you -- number one, do you agree overall with steven or do you even care for what happens in the stock market. >> i'm a bit more cautious about read nothiing into what an inve

yield curve means. the central banks have done a lot of activity in the bond markets. i'm not sure an inverted yield curve means the same as what it used to do it's sort of like did anyone have a slinky as a skid? if you stretch it too much, you let it go, it doesn't go back to the shape. >> are you saying with an inverted yield curve we can move just fine? >> it's a point of caution, you have to watch it, but it doesn't mean as much as it used to mean. mainly because central banks have been buying up assets, combining balance sheets, so there's about $25 trillions in the global monday markets. it's difficult with such a big player to read into it in the same sort of way >> so, if tax reform happens, and, you know, other things are on track, you don't see a reason to become less positive? >> tax reform is something we're watching cautiously. when i travel around the country and talk to investors wherever i am in america, there's

skepticism towards where the package will be passed i feel a lot of investors are still in a holding pattern, waiting to see details from tax reform once they get some of those, they will jump back into equity markets again. there's just a cautiousness around that making its way through washington after that, the economy still looks solid. unemployment is at 4.2%. inflation is around the fed's 2% target not too hot. not too cold i don't want to jinx it, it almost feeling like we're in a goldilocks stage. >> back to you, it seems like your thesis is based on the way that you look at this entire recovery, it's been a distinctive featuring, being tep tepid. couldn't it kick into higher

gear if you get tax reform, i could change my mind >> oh, no, then you'll come back -- >> we'll test you on this in this quarter >> but i don't think we will i don't think we'll get 3% here. >> you see other inedicators tht we're not strong right now >> yes >> like what. >> retail goods, capital goods expenditure numbers when you take out aircraft and a few other components, we're still on a shallow trajectory you're seeing that there's no cyclical driver. we overinvested in plant equipment. >> but i thought they have not been investing because of uncertainty. >> over the last seven years we haven't, but we haven't seen the global pick up go on long enough to create a new demand for it. two, we have overdone the auto cycle. three, we can't get the housing economy going. no matter how much people tell

me home builders are optimistic, housing sales starts number are flattening out and those numbers are disappointing other than the one big surge in the south outside of that, it's not good those rtd thrare the three cycll components >> gentlemen, thank you. >> i was told you did the qualcomm story so quickly -- >> qualcomm -- qualcomm. >> we were unable to trigger that >> dredge this -- >> qualcomm. qualcomm >> if it's -- >> qualcomm. qualcomm >> did you used to watch back then, sorkin do you remember the qualcomm -- wh wh >> what year was it black and white back then >> three channels. one was vhf and uhf. you had to adjust the -- >> bunny ears? >> you know who that is? you know who that is. >> qualcomm. qualcomm >> do you know who recorded that greco. it's greco >> it is >> thank you very much when we come back, we'll talk

about tech but in a different way. tech giants headed to capitol hill to talk about the russian election meddling in the 2016 presidential company and more on yesterday's arrests from mueller investigation a live report from d.c. when we come back. it can detect a threat using ai, and respond 60 times faster. it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it. is. the cloud. the ibm cloud. the cloud that's designed for your data. ai ready. secure to the core. the ibm cloud is the cloud for business. yours.

earnings just in from aetna. aetna earning $2.45 per share for the quarter, well above estimates of $2.09 revenue slightly below forecasts, and a full-year earning forecast that exceeded earnings estimates the one thing that's not in here, by the way to the extent there was speculation about it, this potential deal with cvs/caremark and what that could or could not mean. some people last week when the news first broke thought if there was a deal coming, and it was coming quick, it would have been coming today given the earnings report. on today's agenda every day there's something this week. today is tuesday starting with the fed is kicking off its two day policy meeting in washington.

we'll get a big batch of data including the s&p case-shiller home price index, chicago pmi and consumer confidence. look for results from under armour, mastercard, pfizer and kellogg. >> stocks to watch, mondelez i think that's the right way >> they made that word up. it's horrible. >> they did. better-than-expected earnings in revenues the company benefitting from rising sales in europe, latin america and other emerging markets and cost cuts. don't miss the mondelez ceo at "squawk on the street" at 10:00 a.m. eastern shares of allison transmission getting a pop the jump coming as revenues topped analysts expectations let's get to d.c there's been a lot of news over

the last 24 hours. paul manafort and his associate rick gates were indicted on 12 charges yesterday including conspiracy against the u.s eamon javers has that. and also a number of big tech companies making their way to you this morning eamon? >> that's right. a lot going on in washington after a dramatic day yesterday we saw paul manafort make his appearance at the courthouse in downtown washington, d.c he faced those charges, the indictment unsealed yesterday reveals a number of charges against manafort and his deputy. manafort was the campaign chairman for the trump campaign for a period of time rick gates is his lobbying partner and close affiliate. the charges they are facing are conspiracy against the united states, conspiracy to launder money, acting as an unregistered agent of a foreign principal, false and misleading statements under the for ran agents rforeis

act, that's manafort and gates we learned a lot of detail about how much manafort received as part of his lobbying for pro russian/ukrainian individuals, including about $7 million of money that went through off shore accounts the indictment said about $18 million had been laundered by manafort overseas. none of this, the white house was quick to poiptd ont out, ha anything to do with the trump campaign itself. the president after the indictments were unsealed saying this all happened before manafort was involved with the trump campaign then another dramatic moment yesterday as george papadopoulos' indictment and guilty plea were unsealed by the government here's what george papadopoulos pled guilty to

he was a foreign affairs adviser to the trump campaign last year. he pled guilty to making false statements to fbi agents, he agreed that he lied to fbi agents concerning a federal investigation about the timing, extent and nature of his relationship and interactions with foreign nationals tied to russian government officials what's dangerous about the papadopoulos guilty plea for the trump administration is that it says in the documents that he is what's called a pro active cooperator with the special couns counsel, robert mueller. so he could have been wearing a wire or recording conversations or otherwise gathering intelligence for robert mueller in the wake of his july arrest he was arrested and charged and pled all in secret over the course of a period of months none of that was revealed until yesterday. so anybody from the trump organization who talked to papadopoulos between july and yesterday might be scratching their heads trying to figure out what it was that papadopoulos

was after and what conversations may have been recorded by robert mueller and his team the white house for its part insisting none of this had anything to do with the president or the presidential campaign dismissing papadopoulos as a minor figure in all of the presidential campaign despite the fact that papadopoulos spent some months trying to arrange a meeting between vladimir putin and donald trump and between trump officials and russian officials so a complicated web unveiled yesterday >> they do have some e-mails they got where it says trump will not do this or something, right? nothing came of it or something. then i thought this guy -- i don't know whether you always believe -- what do we believe anymore? but some of them said they heard the guys name, they thought they were talking aboutsomebody els because he was such a minor player a volunteer. was he around a lot since july was he around a lot? >> in the campaign he was involved in one meeting. >> i remember that one other than that, i wonder --

they definitely -- the narrative they're selling is that he was really minor and wasn't in position to -- can i ask one other thing? >> sure. >> what was my one other thing >> you can ask two >> i forgot. >> i have one in the meantime. what do you expect to hear from the tech companies and what you make of these numbers ballooning in terms of how many people were reached on facebook, for example, during the elections. 126 million now is the number we're hearing. and just how you're thinking about that and what you're hearing on the hill. >> i think we learned two things yesterday with these numbers coming out from the tech companies and with the indictments and the unsealing of the cooperation by papadopoulos. we're learning that there was an aggressive effort by russian entities to reach out to the trump campaign, to find ways to work with the trump campaign, at the same time russian operatives were reaching into social media and trying to manipulate opinion

on divisive subject. they were running ads on facebook and twit e all the content posted by them was focused on gun rights, race, gay and transgender issues a lot of the social fault lines of the united states were being exploited by the russians. the numbers are enormous we'll hear these tech companies talking about these numbers today. the one caveat there is that social media numbers in general are enormous, even bigger -- >> wasn't a lot of money if you can swing an election for $150,000 i remember what it was were there people staked out that saw the grand jury doing this do we know -- was this a mueller leak would they leak on friday to control the news cycle we talked about it the entire weekend. >> we knew the story broke on friday >> how was that a leak?

could mueller tell someone to do that >> the defense attorneys are under no obligation to keep that information secret if they were notified to report on monday, they could have talked to the press. >> so we don't know where it came from. >> we don't know >> that was it thanks, eamon. >> you bet. coming up, jean tirole will emoyntthon set talking about unplme, e euro crisis and government regulation. stay tuned alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. this ♪s electricity.

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♪ good morning welcome back to "squawk box. look at u.s. equity futures. we have some green arrows across the board. dow opening up about 38 points higher nasdaq about 12. the s&p 500 a little over 2. economics is known as the dismal science our next guest wants to change that and use economics as a positive force for change. joining us is jean tirole. his new book is out in english called "economics for the common good." jean, great to have you with us. >> thanks for having me. >> i wish i had a book like this in college so i could have studied harder >> not so dismal >> what is the first example you would give to a person on the street who asks you how can economics be used for the common good >> if you think about all the market failures there are many, markets are inefficient, but we also need a state to correct

market failures. for the environment, the big issue is climate change, we need do something about it so we need economic instruments to fight climate change it's important that the government doesn't suffer from hubris, so that it chooses simple methods like carbon price to fight climate change. unemployment is the same you need to make firms accountable for layoffs but at the same time you don't want to intervene too much into production the way we do in southern europe. when you fwhi coyou think abouto policy, digital economy, we have to find simple solution. >> can it be applied in the realm of antitrust we were talking earlier about a potential deal that looks like it's facing headwinds, sprint and t-mobile the market reaction was interesting because at&t and verizon fell on the news which would indicate that everybody

was hoping there would be fewer players because the competitive pricing in that environment would ease if there were fewer players in that sense the market -- the market wisdom is telling us we're better off the way things are >> it might create a stronger competitor for that matter but we're trying to build tools for antitrust that will help us actually the new economy, the platform economy which i've been studying a lot, doesn't have the same lows as traditional economics. so we have to build antitrust tools to think about the two-sided markets. you have to attract both sides of the market therefore you have to think about the market as a complete thing you have to look at the two sides. >> facebook and google will be in d.c. today. >> yes >> what would you want to ask them or think about in terms of the antitrust issues of a platform company like this

>> a couple things first you want to prevent them from swallowing up future competitors, which is not easy to do. you don't know when you look at a startup where it's going, if it will be a competitor to google or facebook you also want them to prevent entry of new entrants. new entrants to keep the giants on their toes must actually be able to have a market niche. when you think about google, it entered a market niche it enters on the search market amazon entered on the book market, before being the giant, they had a small market, segment of the market. then they extended so you need to prevent those platforms from basically deterring entries through bundling >> do you? do you not believe that we could start something in our garage tomorrow that could be the next great thing? >> i hope you can. now it's more or more

monopolies, because we are big network societies. i'm on facebook because you're on facebook. same with search engines and the like you tend to have monopolies, so it's important that you keep the market contestable so that, you know, the new entrants -- >> there's a fine line, right? you don't want too much government interference to make the monopolies into utilities. these are companies that are still capitalistic >> completely right we have to find interventions that are not too intrusive and don't kill intervention. so we are designing new regulation that basically will keep competition but not intrude too much into the business of those platforms. >> you look at a deal like amazon/whole foods what was your reaction to that in terms of whether or not the government -- the government did not step in, but this is forming

a behemoth that is enormous whe it comes to retail >> i'm not specifically familiar with that merger, but if it's vertical merger that compliments, it's fine if there are potential competitors, it's less fine. so so you might think amazon might have entered in the food business because it has a distribution network you have to do the analysis to know whether it will be the most likely competitor to whole foods. that's the kind of thing you have to ask whether there's potential competition between the firms that merge >> all right fascinating stuff. jean, thank you very much for joining us jean tirole. coming up, pfizer and struggling athletic apparel maker under armour the stock has been struggling. both will report in the next few minutes. reports and reaction from wall street. and later, sir martin

sorrell will join us of wpp. he will be on set. stay tuned you're watching "squawk box.

♪ is the exorcist. there's something about individual notes on a piano. i like -- ♪ i would rather have halloween. i get more scared. the premises of the exorcist is probably more scary. reviews of the iphone x are pouring in todd hazelton joins us is there anything else you can tell us that you haven't already told andrew off camera >> sure. >> that a qualcomm on which chip is in there. >> qualcomm modem, but not a snap dragon chip you find in the

android phones this is the apple fusion 11 chip i want one of those. >> but the verizon phones have a qualcomm chip, the at&t phones have an intel chip >> for modems. but the processor inside is the a11 fusion >> just for the modems >> it's a big deal >> it is a big deal, especially with the qualcomm battles. >> how did you get it? >> from apple. yesterday we picked it up from apple. my review is up on the site. i think it's the best smartphone for a lot of reasons the display is something we've never seen before. has face i.d., you can look at it unlocks when loyou look at t phone. has a better camera than the iphone 8 plus. has the animoji, the animated emoji. people will like that and portrait mode. if it's looking at you and it takes a selfie, it borders the background which is fun. >> is that worth $1,000?

>> i think so. i bought the iphone 8 plus, after using this a couple hours it was worth the added price face i.d. alone i think is worth it i said in my review, some people probably don't need to buy this. it's for people like me who need the best iphone on the market. i'm willing to spend that much because i spend all my time on the phone. $1,000 for the high-end model -- what about the battery the battery is the biggest issue in my life the battery goes down, it says 15%, 10%, 5% it's a real -- >> notice you have it plugged in this has wireless charging you can drop it on the desk, it's always charging i found the battery is pretty good yesterday i have to do more tests today. i think it will get you through the full day, but it's not quite as good as the 8 plus. >> is wireless charging still a big deal you still need access to a plug. >> when you're on your night

stand, the cord is popping off, now you just drop it on. or on my desk, i plop it on the desk i think it's convenient. i think we'll see it more now that apple adopted it. in the past android phones had it -- >> these are 99% problems we're solving here you have to sit here, plug tha in in who needs that >> you have to feel it to believe. >> not plugging it in and sitting down -- you remember when men and women had to go out and hunt food to bring home anything they would eat? >> i was born in '85 no but there are car companies building wireless charge noogt dashboa charging into the dashboards >> and selfies, you know -- >> they will look better than ever >> for certain people, that's huge >> i'm doing one now >> we have to consider the audience i don't flo know my mom will ned

the iphone x she doesn't care about that she just needs imessage. for people like me this is a great phone. >> andrew -- >> yeah. >> is the selfie so good that in the desert -- >> so good. >> would not have needed that photographer in the desert could you have done that yourself with the leg up. >> i would have needed a selfie stick. >> yes you wouldn't have needed to hire annie leibovitz or whoever we hired over there to get -- >> you can tell this is good >> it's really good. >> we should have that all the time ready to go andrew in the desert thing we had it yesterday. there it is. see, now, there's no way with a -- there's no way -- did you see this no way with a -- >> look at that. >> you didn't see this >> we will milk this until -- this will be every day for -- can you -- i want a fan moving your hair a little there's no wind in the desert. >> i think this a good phone for

apple -- >> you're on message wow. you are getting compensated by apple? >> i'm not i'm excited about the phone. >> you are >> iphone 8 and iphone 8 plus launched people were like, meh, who cares. this comes out, people are excited about the iphone again whether or not people can buy it, because it's been pushed back a couple weeks. >> talk about that >> if you order a phone now, you might get a phone in december. i also woke up on the day of orders, didn't get up at 3:00 in the morning, but i was able to place it from t-mobile for delivery there friday. there is supply. >> are you going to get a case for it or use it naked that's what they call it if you don't have a case, they call it naked. >> you need a case >> you need a case >> there is not mine i won't put a case on it when i own it -- >> you said one of the other benefits was something about the emojis tell me about that >> it sounds silly

>> where i do do that? >> which emojis? andrew, do you use emojis? >> my kids use emojis. >> this one uses your face it mimics your face. >> can you get the camera over here for a second? >> start smiling >> you can see this. >> the fox is mimicking what you're doing >> as i'm talking, the fox is talking. you can get in there right in there that's animoji >> as i'm talking, the fox is talk i'm saying, joe joe! joe! can you hear me! joe. >> that's really cute. can you change it? can you make-- >> there's different ones. >> you can make a taco talk? >> here's a turd >> make a turt talk. >> joe, ma lis safrelismelissa - is that what you said? >> yes that's what it is. >> awesome >> they call it -- >> okay. not a real firm one, either. >> oh, um -- let's --

>> yeah. let's move on. >> you brought us some very bizarre things >> that's what i'm here for. >> okay. thank you. you're going to get one. >> yep i ordered one. mine comes friday. >> you will get the case >> yes, i'll buy a case for it most people should >> you will leave that with us >> sure. >> are you a fox guy or a turd guy mostly. >> a fox guy i'm a cnbc guy >> i am wondering if you do the emoji -- >> there's the pig dog. you like dogs. >> i do -- i love dogs we will have to do pfizer here sorry. pfizer earnings as we speak. >> it's a beat on the top and bottom line for the third quarter. wh 67 cents adjusted compared to 65 cents estimate or 64 cents revenues coming in at -- >> revenue what did they post? i got 13 -- >> 13.2 billion. >> above the 13.174.

we were looking for. stock is up -- up 1% on the session so far that's the weekly charts we've seen a bit of a fade going into -- for the last five sessions there's a little bit longer term chart. yield is good on pfizer at this point. still 3.6% any outlook? >> we do have for adjusted eps, 2.58 to 2.62 a ing their own guidance >> 2.58 to what. >> 2.58 to 2.62. >> 2.56 on that. >> so above consensus on the guide. >> bit above that. the revenue used to be 52 to 54, estimate is 52.7. >> could be a bright spot in terms of pharma sector overall when you look at some big cap

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one night is the last minute hotel booking app created by standard international it's now expanding into global markets. the company seeing some strong growth on the one night platform clicking up 94% quarter-over-quarter here to talk with us about it is -- >> help those of says uninitiated how the app is different than booking on kayak or expedia or whatever >> in a lot of ways it's the opposite i think in the latest expedia numbers, 500,000 hotels. something like that. think about the difference between 500,000 hotels and 500 holtzs if you are a busy person, and you want to leave it to the experts, we give you the best experiences at the best prices in one swipe >> meaning we're just talking

about sort of five and four star hotels >> what we do is people -- you hear a lot about this searching for experiences. that's what we're in the business of. standard hotels has been creating experiences for 20 years. we're now becoming a curator and a validator of other hoteled we pick and choose very carefully who comes on to the app. when you go on there, you know what you are getting is something we've already validated, and you don't have to do reams and reams of research to be able to figure it out. >> this doesn't cannibalize hotels tonight or any of the other apps, correct? from what i read it sounded like a lot of the hotel rooms, which are basically excess inventory amongst boutique hotels are picked up by locals. >> that's right. the powerful thing about this is it our app is only after 3:00 p.m. the use case is different. we've got about 65% of our guests that are local. you think about stay indications, which are -- you think about working late

not wanting to go back to connecticut or new jersey. wherever you might live. then you think about a good night out on the town and keeping it going >> what are the rates? how much do you book >> the rates cook up to 50% cheaper. >> give us an example. >> in new york city, you feel like going uptown, the carlisle is up there. you feel like exploring brooklyn the urban cowboy is on there those fwo hotels wouldn't dpis on the same platform, but for us because we've picked and choenz the best experiences, they do. >> they would not appear on kayak? >> there's a good chance they won't. we have hotel that is don't apt on these channels coming to us because they feel like those big channels koofrp miez the sbeg rilt of their experience >> there are types of on-line brands that people are afraid to

put their brands on. like a nettaporte or mr. porter. >> we're really good at marketing. standard has always been good at marketing. the way we -- you know, i have all the respect for expedia and orbits of the world. what you get when you look at those sites is a thumbnail picture and a huge price >> we'll get reports from archer dab yells all before the opening bell then the ceo of the world's biggest advertising firm will join us. sir martin soros will be here on set. "squawk box"ilbeig bk. wl rhtac nah. not gonna happen.

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>> pfizer shares popping on better than expected earnings. we have it straight ahead. the developing story apple reportedly considering dropping one of its biggest chip suppliers. we'll tell you why plus, halloween on the hill. facebook, google, and twitter heading to washington today to talk about russia's role the u.s. election. the second hour tv "squawk bosqn right now. >> leave from the nasdaq market site

>> m & m did one >> i am joe kernan along with andrew ross sorkin and melissa lee. becky is off today, and we just got earnings from under armour the athletic apparel maker earned 22 cents a share for the third quarter, and that was above estimates by 3 cents however, revenue was slightly short of expectations and a slowdown in north american demand as far as forecasts the stock is actually reacting quite negatively to the latest numbers. ceo kevin plank says there are operational challenges in the north american market. under armour also forecast this is the key. full year earnings well below street forecasts. 2017 revenue up at the low single digit percentage. gross margins down 220 basis points

>> they cut their full year forecast, so they cut their full year forecast. the previous earnings, which were disappointments, and they did it again this time >> it's much easier to be a disruptive start-up against the nike >> once you get that big -- >> i see under armour everywhere, and they make everything >> they do size >> make sure i go to -- >> i'm a maxonista i don't know what you are

talking about. in other headlines this morning, dow component pfizer reporting third quarter profit of 67 cents a share. 3 cents above estimates. revenue essentially in line, and the drug maker also raised its full year forecast above estimates. pfizer says its results are getting a boost from its newer drugs that are in early pat ebt protected life cycle the stock is up 1.5% in the premarket session. apple, meantime, recordly designing its next generation of iphones and ipads. apple said to be considering building those devices with chips from intel and other suppliers. this comes amid a growing legal dispute between the two companies over software involved and testing qualcomm's chips we'll get the latest reading on home prices in about two hours at the latest. s&p kay shiler reports expected to show a 6% year-on-year increase in home prices for august that compares to 5.8% for july

>> the fed survey is out >> we had no idea. >> i was excited >> imagine how much more exciting this morning would have been, joe, as you were getting dressed, getting ready for work if you had known about the fed survey and it was going to be here you wouldn't have had to drag yourself you wouldn't have -- >> wouldn't it sound better if it was the all american fed survey >> that would confuse you. >> let's do it >> every time. >> i know. every time >> good morning, ladies and gentlemen. thank you for tuning in to cnbc. we'll give you the fed survey results. here they are 98% out. the fed keeping rates unchanged at this meeting. 96%, though say a third rate hike is coming in december it's a little bit higher than the market

>>ist been a while since the fed and the market have been on the same page. we asked a question. should the fed raise rates to cool the stock market? 62% say now. 33% say yes. how concerned is the average fed official about the market valuations 70% say the average fed officially is somewhat concerned. we've heard some of that talk from guys like rosengrand and others about market valuations that we're kind of keeping the temperature on the fed as to whether or not this is something that leads to many accelerated hikes. want to give you a couple of the quotes that we got along with the survey chief market strategist writes we believe the u.s. economic cycle has room to extend further, which suggested valuations while rich may not be unreasonable

i expect the incoming data to continue to point to solid growth and elevated optimism given that the economy is above estimated trend growth at 2% expect a continuation of the current interest rate -- december rate hike is very likely i just think that was a great addition to the morning report >> without it -- >> unbelievable. compelling >> there is another one. >> it was only two >> there's not a clever name on one of your other surveys? >> i only do two surveys >> for some reason i was thinking you even did more interesting surveys. just a feeling of -- >> i appreciate that, joe.

>> we're going to talk to monty right now, chief investment officer and head of fixed income at oppenheimer funds 243 billion under management covering the economic angle, matt, senior economist at deutsche bank and i'm just going to harken back to one of our previous guests -- i'll let you hear this too. this back to back 3% quarters that we've had is going to be no different than 2014, and it's a losery as to whether the economy has really upticked, but it will cause the fed to move, which will be self-defeating the only good thing -- it's not a good thing, but it will result in a fed hike.

>> will this quarter be at 3%? >> yes this quarter will run 1%, 2%, 3% if you look at the consumer income numbers that came out yesterday, they are flattening out. savings rate is down 2%, 3%. i think as a net result, consumption has to slow down investment hasn't picked up. what that means is, yes, we will have another quarter maybe two quarters up 3% things are going to start plateauing out pretty soon >> you think that matters? is this a permanent uptick in the yegear that the global econy is in? >> we don't think it's an uptick we do have 2 approximately the% growth in q4 we see it a broadening out we saw consumer spending was a little softer in q3. cap x spending was stronger. trade was stronger we are seeing the global uptick in growth, which is helping support the u.s. economy as we get into next year, we would expect -- >> could the fed cause it to -- i mean, do we need to say where

we are right now to keep it going? would a slight -- a couple of slight increases make a difference >> i don't think a couple of slight increases will make a difference if you look at what financial conditions have done with equity markets going up and spreads tightening, since december 2016 the fed raising rates -- >> he said it's a long -- it's a long recovery that we've been witnessing, and it's been characterized by the slower growth rate. >> do you have something to say to that? >> does that mean you can't ever break out? >> the question is do you want to sort of get back on this roller coaster ride and if it came, for example, with big lench in the financial system that led to them withdrawing that leverage, you would have a bust again, if i had 2% forever, i would take that rather than a couple of 4% a couple of things are permanent. not permanent, but likely to stay around.

the boost to the u.s. economy has gotten from overseas growth i think is worth noting. on a $19 trillion or $18 trillion economy add up, and maybe the underlying growth, which was one, eight, or two could be -- it's not three necessarily, but i'll take it. >> i think two is good enough, and i think the key thing to remember in this regard is the fact that this is probably going to be the longest business cycle that any of us has ever experienced.

>> why do you think the business confidence can't be more and the deregulation we see so far, no addition of new regulations, why can't that be more powerful than what you give it credit for? >> i think we're in a secular cycle here of disinvestment. when you think about the zip car and using metal -- >> we need to produce less metal and use it more. >> productivity is enhanced in an unmeasurable way. >> you don't need to do that with steel and with hydroca hydrocarbons you do it with silicon and deal. think about snap snap goes to market. was this a $16 moil market cap company with three workers and 12 square feet of space. >> amazon added -- amazon added

250,000 workers in a year. they're closing in on wal-mart >> fair enough where are those workers coming from is that zero sum in the retail business >> i don't know. >> my guess is it's more efficient. >> workers for every robot because they're going to be fixing it and putting -- programming it >> i think it's worthwhile not overstating the contribution from technology. clearly, technology certainly is leading through this investment, but there are other secular global trends i think that are important as well. demographics, the fact globalization. >> you think 2.8 >> we think 2.8 in q4. >> that's the best we can do

>> we see a down shift next year to 2.2%. >> i do want to say from the fed it's 79% >> i think inflation is the key here, though especially as we think in the context of the fed >> you want it or you don't want it >> i think the fed is actually concerned that it's too low right now. >> right >> we actually saw that in the european data disappointing as well strong growth. lower than expected inflation. >> that seems like -- in my list of ben franklin, that would be a positive for me. nothing is worse than, you know, double digit inflation isn't that a goldilocks scenario good growth with low inflation >> what number do you want >> i want -- >> i want to be -- i want to sustain 3% >> what about -- it's up .7. >> for 40 years -- >> i think it's point -- joe's point is three isbetter than 2.5. he wants 3 >> the market's standpoint, can the markets continue to go higher if we are at 2.8 or 2.5

>> i think the markets will continue >> all of that is true, but i wouldn't be dissatisfied if you didn't do a whole lot -- >> i would expect more i want more. i'm going to be optimistic >> you should expect more. whether you get it or not is a different matter altogether. >> you should see the economy if you want, joe. >> you're all dismal >> you can juice the economy in part -- >> thank you for your fed survey i'll be back with additional elements >> thank you coming up -- >> what did they say -- >> not -- >> coming up, the inside line on under armour shares down sharply on this morning's quarterly results. at 7:30 a.m. eastern time facebook, google, and twitter

head to capitol hill today to talk about russia's role in the u.s. election. we'll tell you why this matters to these companies later, wpp ceo sir martin sorrell. the ad giant cutting its emt r e irtid me this year. "squawk box" here on cnbc. ah, dinner.

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>> shares of under arm diagnosis our down sharply susan anderson, officer research analyst, senior vice president at fbr capital markets susan, great to have you with us the stock is down 12% of premarket. just in august the company had cut the full year outlook. has the bar been reset sufficiently at this point in your view? >> no. i really don't think so. they miss top line growth in the third quarter. it was down 5% through guidance. it was for flalt they did lower the year out of positive low single digit. however, that implies a positive growth rate in the low to mid single digit range in the fourth quarter. i think that's going to be very difficult to meet. also, we haven't heard what they're expecting yet for next year, but i do think numbers probably have to come down again

for next year. i just don't see the environment changing any time soon >> we've already heard reports that they are considering exiting tennis and golf. maybe some other businesses. we know the curry four shoe is delayed at this point. what can they do to appease investors and say we're going to be on the right track? this is our path >> then additionally, the industry for athletic wear is just much more difficult than what we've seen historically we've had a very good high growth industry, and i just

don't think that's going to be the case going forward >> so is the industry growth rate, susan, overall slower? in other words, i'm trying to get at if under armour is having a difficult time, is there share to be gained by some of the other competitors, or is the industry right sizing itself >> i think the industry is right sizing itself. i think it will be share gain going forward. over the last five, ten years we've seen mid to high growth, particularly in athletic apparel and footwear i think that's not going to be going forward. i think it's going to be a market share gain, which is why nike is upping its gain. adidas is much more competitive than what we had seen two years ago.

>> i think we're going to see something similar from footlocker and really all throughout the mall and they're really ramping up their own e-commerce business, which they'll probably continue to do, but maybe they become more of the secondary market versus nike using its own ttc and e-commerce for huge launches now. >> susan, we'll leave it there thanks for your time >> thank you >> susan anderson. >> coming up when we return, why google says autonomous cars and napping drivers don't go together stay tuned financial crisis, and saw his portfolio drop by double digits. 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

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an autopilot driving feature after test users were caught taking naps, putting on makeup, playing with their iphones tests were not publicly shown until yesterday. the system was set up to call up drivers to jump into action at the sound of an left arm, but the head of the self-driving car unit said the company found users were ill prepared to take control. as a result, having to decide instead to focus on technology that requires human intervention >> you remember when they made a pivot in terms of strategy

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>> what happened >> holy crap >> be sure to catch an episode of adventure capitalists it's at 10:00 eastern and pacific right here on cnbc joe. >> thank you coming up this morning's top stories, including what you expect to hear from facebook, google, and twitter on capitol hill today first, we head to break. take a look at u.s. equity futures. they're green across the board stay tuned you're watching squawk bks on cnbc did your senator or congressman get elected

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good morning welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square among the stories front and center, a kiki earnings report front and center before the

opening bell master card expected to report at the top of the hour a profit of $1.23 a share on revenue of about $3.3 billion. we'll get the latest numbers from cereal maker kellogg. meanwhile, the u.s. savings rate, as you may have heard, dropped to a ten-year low in september according to some new commerce department figures. the rates now 3.1 %, and that compared to 6.3% just two years ago, that's actually, though, seen as a sign of optimism lower unemployment and stock prices making people willing to save less and spend more the latest reading on consumer confidence is out later this morning. monthly measures expected to rise to 121.3 exactly for october from 119.8 in september. >> the senate judiciary committee will get its first face time with leading teams they'll discuss foreign influence on campaigns during the 2016 election. kayla joins us to set up the big

hearing. kayla. >> good morning, melissa top attorneys for google, facebook, and twitter will testify on capitol hill with the latter two revealing new figures showing activity linked to russia was much more widespread during the 2016 campaign than previously known in testimony obtained by cnbc facebook tells lawmakers russia's internet research agency spent $100,000 on 3,000 ads on facebook and instagram. they promoted 120 sponsored pages, which, in turn, published 80,000 posts that content was seen by 126 million people in the u.s., it estimates. that's more than half the voting age population that was between april 2015 and august just of this year facebook general counsel calling remarks to the senate judiciary committee saying the ira represented just one out of 23,000 pieces of facebook content, but the volume of these stories was a tiny fraction of the overall content on facebook. any amount is too much

twitter found more than 2,700 accounts linked just to the ira and has suspended all of them according to its testimony, but nbc news reports that the company will say it found a total of more than 36,000 accounts with attributes lirmging them in general to russian entities last month the company turned over just 201 accounts to the staffers of the senate intelligence committee vice chair democrat mark warner called twitter's response "inadequate at every level." the three attorneys will appear before the senate judiciary committee's subcommittee on crime and terrorism. that happens at 2:30 p.m. today, and they will appear in front of the house and senate intelligence committees tomorrow guys, it could change the conversation about the reach of these companies and exactly what their role is in the political discourse in our country >> kayla, thank you for that we'll be watching, of course, all day. many are expecting a rate hike, we should say, separately from the bank of england this week, which could be its first increase in a decade the same time the u.k. is dealing with several serious economic question marks, not the

least of which is the exit from the european union joining us right now someone who knows his business very well, closely tied to both of those issues ewen, the cfo of the world bank of scotland. good morning to you. we should mention your bank 70% owned by the government. >> indeed. >> let's first talk about the -- what's going to happen with the bank of england this week. what do you think that's going to mean to your business and to the economy? >> i think the market is pricing in a rate increase, so i think there will be significant disappointment in the markets it tomorrow, if you can see that. we're very rate sensitive. probably the most rate sensitive of a major u.k. bank we're looking forward to the first rate rise in over ten years. i think for businesses generally, though, i think consumers will be able to cope with a 25 basis point increase snoo what is the internal take on brexit and what's happening

there? >> i mean, brexit -- i think if you look at the same economics like for the u.k., it's sustained growth, sustained lower interest rates you know, we're having to do all of the preparation you would expect us to have to do in case we have a hard brexit. we've all given up a transition period >> when brexit first happened, before brexit happened, there was the sense -- we all talked about how the world was going to fall into its axis, and then it didn't now there are more questions >> yeah. i mean, i think we were always surprised how strongly they probably held up after brexit, but in particular consumer spending, i think, surprised all of us. you can see consumer confidence beginning to slow down a bit you've had a significant increase in this consumer -- which is unsustainable >> you've been in negotiations with the department of justice over these residential mortgage

backed securities for quite some time you are one of the few who is not settled yet. what is the state of play? what is going on >> we are talking to their lawyers and would like to get it settled and move on. it's allowed a big legacy issue that we have to solve as a bank, and i think until we get it solved, it inhibits our ability to pay dividends and make profits, and it really inhibits the government's ability to -- >> which leads to the proposition question we had this conversation after two years. you were sitting here. how much of the company -- >> i would hope that they would e we would be able to get the government down to a position. i think as soon as we can get the department of justice privatization concern up, the strength of the -- we think it's a readily privatizable story, and so we think the government can move quickly once we've

solved through the department of justice. >> what would you do in terms of investing and growth once the doj is settled, once that issue is settled >> we are seeing really good growth in our u.k. business. we're growing in corporate segments positive growth is good. we've seen good growth taking shape in the u.k >> what's your ambition here >> well, we've -- i'm here seeing investors all week. starting in new york, finishing in san francisco at the end of the week at some point there's a lot of stock to sell in the company as a way of privatization new york is a very important market >> what about the banking piece here is that still a big piece? >> no, no. our banking operation here now we've shrunk it at 90% from what we used to be. it's a relatively small trading business up in connecticut that supports a growth of a modest investment bank.

yeah >> so there's no ambition to get bigger >> absolutely not. >> thank you >> thank you >> thanks much >> coming up, the inside line on pfizer following the company's latest quarterly results. barbara ryan joins us next, but, first, as we head to break, check out currencies this morning. stay tuned you're watching "squawk box" on cnbc hi, i'm the internet! you know what's difficult? adulting...

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>> welcome back to "squawk box." we set up for month-end. the dow and s&p, we should note, are on track for the seventh straight month of gains. it looks like we will extend a gain today s&p looking at three at the open dow up by 37 the nasdaq, tech at a 17-year high in yesterday's session. we could go even beyond that today with the nasdaq looking to add 16 >> the shares of sprint and t mobile tumbled yesterday following reports that sprint parent soft bank is calling off merger talks with t mobile, but other own david faber is pouring

cold water on those reports. sources telling him that the two companies are red cross into governance and pricing issues, and soft bank has no plans to withdraw from the deal talks >> netflix announcing he is going to end the house of cards series that comes amid -- there are plans spore the spinoff. they're developing several ideas, including one potential storyline centering around political aide doug stamper. the question, of course is in the 1960s, and whether they were going to continue anyway >> kwet is, i mean, there is a movie that is being released by tri-star it's going to premier november 16th it stars kevin spacey. it's about the kidnapping of jay paul getty what happens to that as well what happens to the career of kevin spacey with these allegations? >> i don't know. we need -- earlier i said that's why one of the -- time passes, and we'll see. nobody knows at this point >> yeah.

>> i'm going to try to find good reasons for time passing because it's passing very quickly. i don't know whether -- >> you seem very wistful this morning. >> wistful the world is turning faster, it seems like, for me >> stuck in monday mode. i feel like i'm -- no. if you're getting closer to friday -- taylor swift, taylor swift is dropping big bucks on a tribeca townhouse. a pop super star is paid $18 million for the home it's on the same street as a petitioner's exhib penthouse duplex it comes with a gym and a spa, among other amenities. the home is where disgraced politician dominique

strauss-kahn stayed while he was under house arrest in 2011 that whole omni -- that whole thing. anyway, let's take a look at some stocks to watch this morning. under armour shares are under pressure after the company issued a full year forecast that was well below street forecast the athletic apparel maker says it's facing operational and sales challenges in the north american market. meanwhile, insurance company aetna under $2 .45 a share for the third quarter compared to the consensus estimate of $2.09. aetna also sees full year earnings above estimates held by moderating medical costs zblunchts archer daniels missed estimates by 10 cents. it reported 45 cents a share the green processor says it's operating environment is more challenging than previously expected this morning stocks to watch. then later today, you don't want to miss cnbc exclusive eye roen

rosenfeld. as we head to a break, check out oil prices this morning. wti crude now at $54.03.

>> that's an mazing costume. >> that looks a lot like -- what's the guy's name. the actor. penny wise see him down in the -- >> look at him wow. he has a skull extension >> this might be the best. he is down -- the kid's ball interest goes into a sewer, and the kid is looking at the ball, and he is in there >> i did see the "snl" skit. >> i'm not surprised >> let's get a check of the markets this morning as we do close out the month. headed for seven straight months of gains dow at 39 at the open. the nasdaq looking at 17.5 s&p looking to be higher by three. taking a check on the action in europe germany closed, and the dax did hit a record high, we should

note, so that's worth noting green arrows across the board. as for the price of oil, we had the highest price for wti since february taking a check on how it's moving this morning. slightly lower 54.07. brent still holding on to 60 a barrel taking a look at the ten-year kneeled e yield here and how that is yielding this morning. we got a 2.379%. taking a quick check on currencies here. you would expect dollar to be higher yep. gold keeping track of gold. there you go 12.74 an ounce down by a quarter of a percent >> let's get you through stocks to watch this morning. allison transmission posting better than expected results the truck and bus parts makers -- even ahead, which usually is the busiest season for orders texas roadhouse matching earnings forecast. the restaurant chain's revenue beat estimates texas roadhouse saw comparable store sales top forecast

both companies own locations and franchise restaurants. the company said that food costs were dropping while labor costs were rising. an exact science has reported a smaller than expected loss better than forecast revenue results were driven by strong demand the company dna screen test for colon cancer >> other stocks to watch today ryanair says it's on target to post a record annual profit despite some recent flight cancellation shares on low cost carrier up %. wpp is cutting its full year forecast again the world's biggest at this timer battling a slowdown in client spending and wpp ceo sir martin sorrell will join us at 8:10, 20 minutes from right now, and we'll talk about this. airbus, third quarter earnings falling by 4%. on lower aircraft deliveries that was a smaller drop, though, than analysts expected that's up 4% the company also disclosing problems involved in sales agents and u.s. arms technology.

it's a first time the united states has been dragged into the european bribery scandal, involving the use of middle men in airplane sales. airbus has warned of a material compact for potential fines from those bribery investigations over in europe dow component pfizer reported third quarter profit of 67 cents a share. that was 3 cents above estimates. revenue was essentially in line. the drug maker also raised its full year forecast above estimates. pfizer says the results were getting a boost from some of its newer drugs that are early in their patent protected life cycle. joining us now barbara ryan, founder of barbara ryan advisors, former managing director at deutsche bank. thanks how do you say it? i brands >> i brands. 878 million shailz sales for the quarter, which was a 60% rise year-over-year when was that -- how long has that been out? what's it do >> it's for breast cancer. >> right how does it work for breast cancer is it like -- >> it's immuno-oncology drug

>> you need to have a certain genetic marker for this to work, or it works for everybody? >> no. for metastatic breast cancer >> the mechanism is -- >> do you know >> that's a big move 60% year-over-year sales >> yeah. it was up 66% last quarter it's clearly leading -- >> it's -- there has been -- i mean, the entire field was revolutionized how long has it been around? about ten years or so? >> 15 years. >> so this is -- that's a big jump i'm just -- i'm interested >> yeah. this is clearly becoming, you know, the standard of care >> that's $4 billion a year. >> what's interesting despite the progress is that alone it is not all that compelling.

what really is important to understand is that the treatment of cancer with immuno-onklg agents is being driven by combinations the fact is that eventually it's like the wack-a-mole it's always going to be resistant. what would it be conbiened with? pfizer is looking to exfend this franchise, and what could they combine i brands with to keep patients alive longer and keep them on therapy? >> so of the 13.7 billion in revenue that the company had, how much of it is just from pharmaceuticals and how many of these things are eventually going to start declining because of -- >> well, you know, pfizer's revenues were barely up. 1% i think earnings were up 8%. it's a $60 billion company it's always the issue of it's impossible for this company to grow organically over the course of time. that's why we continue to see,

you know, m&a in the industry, whether it be large deals, which i don't believe are over, as well as just continued m&a like they have been doing >> pfizer has -- it's -- in the past we've talked to you about they're almost like bonds a lot of these stocks. if we go back on a long-term chart, the company hasn't even made a new high in how long? >> well, it's recently been hitting recent highs i mean, i think the stock is up about 8% this year the yield is about 3.5%. >> it's been an underperformer versus the pharma care for about three years. if you put up the chart, the charts -- >> absolutely. i mean, you know, the stand-out performer has been bristol-myers. it was a smaller company it had more innovation, more new drugs. you know, pfizer has had difficulty growing its top line, again, because of the size, and so every time you introduce a

new drug, an older drug goes generic and starts to decline, and you're running fast to stay even what this has been doing is growing the bottom line through synergies driven by deals, and cost cutting the company is also generating a ton of cash, so they continue to buy their stock aggressively, which lowers the base and helps improve the bottom line. >> it's a much broader question about pfizer, but what do you make of all the speculation about amazon wanting to get into selling drugs and then clearly if you believe that that is influencing the care mark to talk to aetna and how this will all impact the industry. >> we truly live in interesting times as it relates to it is health care industry you know, we can sort of talk about the industrialization of the health care industry, right? it's one of the most inefficient operating models we've seen. amazon has been disruptive in so many industries, and i think

it's not surprising to expect that they would look at this, a, as a huge student, right, and that the industry would look at this as potential disruption to them certainly the economies of scale distribution in pharmaceuticals has consolidated dramatically. there's not a lot of margin in it, but if there's one company out there that maybe could even take it to another level, that would potentially be amazon. >> that would put downward pressure on all the stocks >> you know, i think it would be obviously -- for the drug companies, no. they're not distributors they have distributors who dispense their drugs and get them out through the supply chain. they wouldn't theoretically pay more i don't think it would be disruptive to the pharmaceutical industry to the distributors it would be. then the questions are what happens with the pbm's and with the unsurers and all of that is up for grabs, and i do think

that there will be some players, maybe it's amazon, that will make a strike at this industry and change things dramatically >> i guess the stock split it's -- >> it was $27 in the year 2000 it was $27 split it's now $35 you have 17 years it's gone up it's gone up less than ten points >> i mean, it's better than a smart -- >> once there's tax reform, there would be more clarity for m&a. there are two potential catalysts. >> the issue with pfizer is strategy eej iicly what is the company going to do? they spun off.

they created $16 billion in value for their share. they will do something with consumer whether they sell it, spin it off, and if we get tax reform repat yags will drive m&a, and there's a lot of specs las vegas that pfizer will buy bristol-myers. pfizer wyatt, pfizer bristol always in the end called pfizer. >> barbara, thank you. coming up this morning, top stories. plus, the ceo of ad giant sir martin sreorll stay tuned you're watching "squawk box" on cnbc

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>> we're just a day away we'll talk about the changes before the bill is finalized shares of under armour in the red. the company puts their big miss in a disappointing full year forecast >> we're going behind the wheel of the self-driving car. phil lebeau has a test ride in the car of the future.

>> good morning. welcome back it's only -- now, anyway, live from the nasdaq market site. it is halloween. that is from the original halloween and the sequels. they play little variations of the original i don't know who initially composed it, but it's a creepy one. similar to the one from the exorcist, but different. that's the -- you can see father marin walking up the georgetown steps to see what's wrong with this young girl that showed such promise. remember you saw. right? >> years ago >> i don't remember it >> peter blady, yeah >> read it too scared me.

still get scared >> futures right now indicated higher this morning for halloween. it's a trick -- a treat. not a trick so far the s&p up three, and nasdaq picked up about 18 futures right now, as you can see, up looking for a good open. treasuries, the ten-year indicated now under 2.4. there's trouble every time we got 2 .45 here we are since 37 you remember -- he dies of, like, a heart attack trying to get rid of it. you think he was, like, 80 years old? he was, like, 40 >> when is the last time you saw this movie >> don't have you something on in the background in your home you have "new york times" tv on? do they have that? or it's a website or something >> no, i have the kids running around >> don't show them this. >> i'm not showing them that >> either one of these >> cartoons. i have cartoons in the

background in our house. >> that's nice that's nice for everybody. >> we got some big stories to tell you about investors will be talking. investors saying 126 million americans may have seen -- during the 2016 presidential campaign currently half of the eligible u.s. voters and far more than facebook had previously disclosed. twitter raised the number of accounts to russian operatives by ten-fold. facebook, alphabet, and twitter heading to capitol hill today to discuss russia's role in last year's election. also, apple could reportedly drop qualcomm cop compoen he wants from next year's iphones and ipads. companies are locked in a legal fight. on today's wall street agenda they kick off a two-day policy meeting in washington. we'll get big batch data including the kay shiler home price index.

>> under armour getting slammed. it's the first ever year-over-year drop. under armour facing increasingly intense competition from the likes of nike and adidas that stock is down 17.6% shares are held short. in the meantime, pfizer's quarterly profit at 67 cents a share. guidance also raising its forecast insurance company aetna amid moderating medical costs and solid pricing. aetna earned -- well above the consensus estimate of 2.09 >> earnings just in for master card the company reporting a profit of $1.34 per share that's 11 cents above estimate revenue also exceeding the forecast >> it is a big week in washington tax reform set to be unveiled tomorrow president trump is expected to announce his fed decision on thursday joining us now brookings institution economics studies senior fellow david wessel and

american enterprise economic policy studies director michael strain do either one of you guys have a line in to the details on the plan to be released tomorrow, david? if not, tell us what you expect about some of the thornier issues in terms of the lobbying that we're going to see for the sacred cows that are going away. >> i don't have a line, and i think that it's clearly a move forward. not blow a huge hole in the deficit. you have to do away with some deduction credit loopholes or something, and there's a massive lobbying effort underway in washington the realtors, governors, and representatives from high tax states the 401k industry. everyone is working overtime to try to make sure that their particular tax rate isn't the one that gets sacrificed in the mark that chairman weighs and means chairman brady will release tomorrow

>> michael, same question. on the republican -- a lot of things are going to have to battle a lot of, you know, rhetoric from republicans. david is right that one way to -- it's to broaden the tax base another way to finance a tax package is to limit the amount of rate reductions that you have to finance other rate reductions i wouldn't bet my house that it will, but the fact that that was

being discussed over the weekend indicates how much is on the table and how much this is a moving target. >> he said some things that he is not running for re-election, but he said the whole notion of cutting rates for individuals was mainly just to be able to sell the plant and that it would make more sense just to do the corporate tax. that way you can get to 15% to 20%, and you wouldn't have to find all the pay fors for what's going to have maybe not good for redistribution, but it's not part of the overall growth plan maybe. even the pass-through, he said most people are not at -- above 25 anyway. that doesn't make sense either it should be all about the corporate tax rate would you be okay with that if it there wasn't a tax cut for individuals? >> well, look, i think the kind of heart of what's being discussed is corporate tax

reform, and i think that's appropriate. if i had to pick one part of the tax code right now that i would want to change, it would be to lower the corporate tax rate i'm glad that that is the heart of the reform. you know, the issue is how far can you get that down without adding new debt? if you look at the static scores that don't incorporate macroeconomic feedback, the unified framework, plus some assumptions of previous republican plans, what you see is that the actual net tax burden on the individual side of the code goes up, and so what's happening is there's overall tax revenue being raised from the individual side, and that's being used in part to finance a lower corporate rate that's because there aren't enough base broadeners to get the rate down to 15. you say, okay, we're going to increase the deficit, and that they could do, and that could have been what senator corker is

talking about. >> it's going to take a lot of courage, which hasn't been manifested up to this point. >> well, i don't think it's political courage. i think it's kind of faith-based economics. the way they will justify doing a big tax cut is to promise that they'll unleash a lot of growth. they'll have trouble with the score keepers about it, but their initial mark, they may overestimate the amount of growth that will be produced i think the focus is largely on reducing the corporate tax, reducing the tax burden on business, maybe having some expensing to encourage investment they can't do that without doing something on the individual side there's got to be something for

the middle class i wouldn't be at all surprised if the individual tax rates don't move much, and all they do is increase the standard deduction and hope that that's enough to get this through congress sometime next year. >> david, if there is a fourth bracket, where do you peg it >> i find it really hard to believe they'll go above the 39.6 that we have now. there might be some millionaire surcharge that seems to be something that's always appealing to politicians susan collins, republican of maine, has mentioned that. i think it's very hard for republicans to raise the top marginal rate after all these years of talking about how important that was >> and what would aei say about that that's heracy, isn't it? that sounds like -- that's what they want to do in the last administration

snoo. >> you get to keep maybe 50% when it's all said and done. >> some high tax states, for sure i think tax rates are as high as they should be you know, i would strongly oppose raising the top marginal rate any higher than it is i don't think the house will end up doing that. >> what about the phase -- what was that yesterday a five-year phase-in >> that's the corporate tax. >> i know. what was that? who flowed that trial balloon? is that for real >> well, one way to reduce the cost of the tax cut is to phase it in very slowly or to have it expire after a number of years that's why they're talking about five years of expensing for business, which basically makes no sense they're going to be a lot of gimmicks here, and i think the important thing is that this is the beginning of what's going to

be i think a long process. it's not at all clear that they could, a, get this through, and if they do, it will look very much like the bill that brady is announcing tomorrow where. >> okay. all right, gentlemen thanks we'll look forward to seeing you tomorrow then the fun begins once we see what's in there. >> it's going to be interesting to watch thank you. >> you're welcome. >> thank you >> coming up, when we return, guys, ad giant wppi is cutting its full-year forecast mark sorrell will join us on the set. reviews coming in for apple's new iphone 10. the highlights and the low lights live from silicon valley. "squawk box" going behind the wheel of an autonomous car we're giving it the car of the future phil lebeau has the details on that ♪

♪ what we do every night is like something out of a strange dream. except that the next morning it all makes sense. to power global e-commerce fedex networks are massive, far-reaching and, yes... a little magical. fedex.com slash dream

>> welcome back to "squawk box." down 85 points up 27 indicated on the dow this morning. the s&p indicated up 2.5

the nasdaq indicated up 19 cereal maker kellogg is reporting quarterly profits. that beat estimates of 9 had cents. revenue above forecast company also reaffirmed its prior year of full year guidance >> the results are for advertising giant wpp and company. the battles of slowdowns in decline. joining us to talk about earnings the ad game sir martin sorrell is here. good morning >> am go >> we're talking about it off camera what happened here what's going on? >> well, three potential reasons that you and other pundits look at is it google facebook? answer no. google and facebook are our biggest investors from a media point of view wroosh we're investing $7 billion out of $70 billion in those two media media not tech companies secondly are the consultants the digital consultants and digital business no i think where they are making headway, the consulting companies, is going to -- the

company coming in and saying you're spending too much money we'll help you cut costs, and we'll have a contingency fee based on our performance a little bit there and then the third reason, low cost of capital creating sort of artificial or distorted capital allocation zero based budgeting putting tremendous pressure -- not -- >> five iactivists. stroo to be fair to nell onpeltz and dan lowe, they are vee meant that what they would like the target conditions to do is increase their spending, but the pavlovian reaction of these companies is to cut spending they focus on cost what we're seeing is downward pressure particularly in the package goods area, which is about 30% of our business. >> so the good folks at breaking views made a mention this morning and suggested that the conglomerate structure of the wpp of the world may be going

the way of the newspaper industry >> not the conglomerate. it's certainly fair to say that we have to integrate our offer if you are a client, you don't want to manage four or five. just like you want to have simple fiction in your business. you want to have simple fiction in our business. instead of managing three or four agencies, i think unilever said they manage 3,100 agencies. not all of which are ours, but some of which are ours they said they're trying to integrate them and simplify. i think the breaking views point is a little bit off the point because we are trying to simplify the other >> part of it is are we at some kind of tipping point? this goes to the digital advertising piece where companies are not going to spend the same type of money they used to spend on advertising. >> well, i would agree with you if it wasn't the case that google and facebook are the biggest destinations for our media spending five years ago google was number four, and facebook was number 28 today google and facebook are the two biggest. >> people find that to be a much

more efficient play. they might just get rid of it to spend. >> overall media spending overall over that period of time is up. right? if i looked at the last 30 years, the only years when media spending in number terms has been down 91 -- in the recessions what's happening now is the sort of quasi-recession in the sense, dwikly in package goods, because the pressure on the top line is so intense, the cost reduction is so intense it's putting pressure >> i'm sorry can you back up, sir martin? when you say media spend is up overall, but we're seeing a sort of mini-recession in packaged goods, what are we actually seeing because it seems like everything should be coming up roses for you if the total media spend is up, and if spending on google and facebook -- >> if you look at what's happening to package goods companies in terms of the volumes that they are achieving -- if you look at their revenue growth, which are

made up of price and volume, actually, their volume increases are negligent legible. look at all the package goods companies, and the big debate, as you all know, because i'm sure you had it on this program is are the costs -- the zero based budgeters getting volume gains. we are running a package goods company, and you're not getting volume gains that is really big pressure. number of users is declining overall, including digital, it's probably increasing as a whole >> do you make the same in terms of margin when a company decides to spend digitally versus spend on cvs or -- >> there is overall margin pressure, but the distinction between the two i don't think is justified. ultimately, you know, five or ten years ago with the rise of google and facebook, people said we'll get killed by virtue of the fact the margins are lower that's not happened. in fact, the margins on digital

have been similar to what we've got traditionally. same thing geographically. asia pacific, latin america, africa middle east, central eastern yufrp have tended to have strong margins or at least margins comparable >>. >> they've always wanted to have a third force. the rise of a snap, the rise of a twitter, the rise of an oath or any surrogate for that has always been welcomed amazon, interestingly, probably poses the biggest threat to google on search and on advertising >> 30% -- there's always a big

challenge coming from amazon in terms of private label 30% of sales -- >> yeah. >> amazon -- amazon mattress amazon baby wipes. it's interesting because it raises all sorts of political issues at the end because it does technology contribute in that employment or detract from it if you are in india, we're in india a week or so ago, if the retail supply chain there is disintermediated by an alibaba or a flip -- does that cause political issues because of reduction in employment? it there are a number of complex issues coming up to your point about being on the hill, clearly raises all sorts of questions about the efficiency and effectiveness of social -- >> do you think it's going to be harder for you to advertise in the future do you think there are going to be rules in place that -- >> i think it may create a more level playing field. political and consumer they're worried about the

ability. they're worried about val indication addition, and they're worried about -- >> did you pay me on our last bill >> no. i think -- is. >> is that the brexit bet? >> no, i think -- >> hillary bet >> the woolsy again. >> i think that's right. such a great place >> that's right. >> that was your -- >> that's what they do a bunch of times you got your own back once i'll take it >> i saw him come in he didn't really catch my eye. >> how was saudi arabia? >> fascinating >> take a look we should say richard -- he put on the show. a remarkable job >> did you see the photo shoot >> i saw it on tv. >> it's -- it will turn at career >> it's got options. >> i'm trying to hedge

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welcome back to "squawk box. president trump tweeting about taxes. he writes, "i hope people will start to focus on our massive tax cuts for business, jobs, and the middle class in addition to democrat corruption! >> for andrew -- >> what do you got for me? >> the president tweeted about the manafort stuff yesterday,

and said a couple of things. like that manafort was old and that few people know the new -- the young low level volunteer named george who has already proven to be a liar, and then he says check the demes and then immediately preek barara tweeted about that keep it up seriously, keep it up. he is on record as saying you are putting yourself in jeopardy by tweeting. now he immediately answered these tweets that trump just put out by saying, okay, keep it up, keep it up anyway, did you see that >> i didn't. >> glad that you are on it >> coming up, that's because i have twitter i got it right here. that's the only thick good about it it's jobs week in america. we'll get new tada on small business right after the breaknh ? ? right now, congress is talking about tax cuts that will add trillions to our national debt and hurt our economy. it's time to tell congress-don't borrow more money from china.

and leave more debt to our kids. keep your word. tax cuts shouldn't add to the national debt.

>> welcome back to "squawk box." live from the nasdaq market site in times square. among the stories front and center, shares of sony are jumping in premarket trading the company beat estimates with its latest earnings and also raised its full year forecast. sony's bottom line was boosted

in part by strong performances and image sensors and its playstation video game console automaker nissan is seeing shares fall sharply. based on sales of new cars in japan probably fell by half this month. after it was discovered that uncertified technicians have been carrying out final inspections of vehicles for sale for decades. the monthly report on home prices later this morning is expected to show another strong jump the s&p kay shiler report for august is out at the top of the hour 6% year-over-year increase in home prices for the month, according to consensus forecasts. >> the olympic flame was officially handed over in greece today to the organizers. >> really? >> of the games. >> guess who is going? do you know, i will be going >> 2018 olympics will be held in south korea. >> what sport? >> starting february 9th

>> that was actually a good one. >> why are you laughing so much? >> curling there's not a -- >> i'm very good with a broom. >> there's not a desert -- posing in the -- >> no. >> no? >> the torch now -- >> that was a gold medal performance. >> the ski slopes. >> that was a gold medal performance. >> hanging out in the desert >> by the way, as a fellow on twitter -- >> not this close up wait did you walk out there and then they combed the sand so it's perfectly smooth >> look at times square. oh, my god i just want you to know -- did you see them >> i don't know when that went up just now clearly how did richard rosso says any time i think there's a bear market imindependent, i picture andrew ross sorkin in the

desert >> richard, that's -- >> the -- >> you are covering the animals. it's not actually decathlon or -- >> it's winter >> it's winter >> ice skating >> ice skating >> figure skating. >> figure skating. >> figure skating. you stopped that though, right >>. >> paychex out with its monthly read on small business hiring, job growth slowing for the eighth consecutive month. let's dig into the report. joining us now marty, the ceo of paychex. marty, great to have you with us >> on the wage side, we're seeing wage increases just under 3%, which is frankly very solid

and nice and stable as well given that inflation is still around 2%. you know, consumers are getting some gains out of those wages. >> what kind of impact do we see from the hurricanes? >> well, we're still not seeing the hours come back in tampa, miami, houston, those areas. that's still slower. that's dampening job growth and hours worked in those areas. we still expect to see that comeback and, frankly, expect to see a bounce out of contractors and roofers and all the repair work that will take place in those areas. >> have we seen additional -- we've already had a shortage going into the hurricanes of contractors, of construction workers. did that -- did you see in the data that that actually worsened >> well, we definitely saw hours worked go down we'll have to see if the contractors, you know, typically they kind of migrate to those areas because there is so much work there to do from a repair standpoint we're still seeing the south as the strongest region for job

growth, and construction is certainly helping in that area, and other services in leisure and hospitality. they're still the strongest. lowest wage, but still the strongest job growth that we've seen >> based on what you are seeing, marty, what kind of economy does this feel like does it feel like a 3% economy what kind of job market does it feel like? 4.2% unemployment? >> yeah, it does it feels like it's steady job growth we're back to where you grow jobs about 1% to 1.5% a year we're seeing that pretty steady and pretty consistent now, and i think that's good. that's the good thing about not a lot of change month to month in the jobs index. >> marty, thanks for joining us. >> okay. >> marty -- >> the fed kicks off a two-day meeting today. steve liesman is back with more. more from the cnbc fed survey. >> thank you, joe. >> steve >> i appreciate that >> you're welcome. >> we asked folks in our survey about changes coming to fiscal policy specifically the tax cut we asked this question

is 20% -- which has been proposed by the administration, the right corporate tax rate 58% of our 44 respondents say yes. 19% say no, they want it higher. 12% say no, they want it lower we actually got an average here for what the higher group wants at 26% rate. the lower group at 9% rate it seems as if in that regard the administration has this pretty much about right. trouble is when you go on and you have tax reform and deficit neutral, 56% say yes they want it to be deficit neutral. 44% say no, and the concern almost always with economists is the interest rate costs and how it might offset some of the good the tax cuts would do. do tax cuts pay for themselves 30% say yes. 65% say no who benefits this is a big question when it comes to corporate taxes 12% say workers. 54% say shareholders 35% say both the administration and particularly the cea has a paper saying workers will get a big

chunk -- or big raise or household will get a big raise from this, the economists generally don't believe it the trouble is that kevin hasset, a very bright economist and friend of the show, he has a paper that's more on the extreme end of thinking in the economics world about how much workers get. he said that households will get something like a $4,000 annual wage other people have written $300 >> $300. >> rather than $4,000. there's a big debate over who paid this corporate tax and who would benefit from cutting it. the range is out there very much >> i had a couple of other comments i wanted to say thank you, joe

>> wages will be positively impacted by corporate tax cuts, but along with it more jobs in capital letters, if you are on radio here >> it's another life in 2018, 2019 >> would there be any reason to go through all this for $300 >> yes >> why >> actually, there would be, joe. i've been a supporter of -- >> do you know how it's going to be to get -- >> that's why we do it >> per worker. how much does the shareholder -- >> i'm not sure. 300 sounds -- >> minimize it to $300 >> it sounds -- >> oxford economics as far as i can tell does not have a dog in this fight. he ran it through his model.

i have seen people run it through their models, and i have seen one of the guys quoted by kevin at 8 had been. it is a bit all over the place, joe. that's for sure. 300, 8 had been,000. i'm saying that kevin's work is on the outside of this, and really posed a big boost to gdp from this. >> thanks. >> okay. >> time now to talk a little bit about the reviews that are coming in from the iphone 10 they are pouring in this morning, and josh lipton joins us now he has more on it. josh >> andrew, one of the first questions, does facial recognition technology work as advertised usa today's ed baig saying this is probably the number one question on people's minds certainly was mine so far apple has passed the test with flying colors they say face id worked even when he wore a hat, sunglasses or both. he said the 10 is a strong first impression over at the verge patel gave his

take he is a fan of that new display, writing the iphone 10 oled is bright, sharp, vibrant without verging into parody, and generally a constant pleasure to look at. face id, patel says it mostly works great, though sometimes he says it was inconsistent in bright sunlight. however, he still says it's the best iphone over made. remember, a big reason people upgrade their phones is because of better cameras. mashable's lance saying not only are the lenses and image sensors better than ever, but the algarhythms backing them are taking mobile photography to new heights. when can you get your hands on an iphone 10 supply looks like it could be tight. at least initially ubs estimates there will be just 28 million iphone 10 models available in the december quarter. back to you. >> okay. thank you for that, josh do you have one over there yet >> not yet, andrew you'll be the first to know, though >> okay. we got a chance to play with one this morning, and i think i was

told at least. >> a couple of pennies away in the premarket session from apple hitting a fresh record high. >> fresh record high >> here we are, we did it just now. >> coming up, when we return, we're going to keep talking tech phil lebeau has the details next as we head to a break, take a look at shares of under armour the company under pressure after posting a revenue miss and disappointing forecast back in a moment your brain is an amazing thing. but as you get older, it naturally begins to change,

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>>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. ing. >> if we got that, it would giver us -

>> welcome back to "squawk box." futures right now up most of the morning. 24 now on the dow. up two and change on the s&p almost 20 on the nasdaq, which has been strong. actually, it was even stronger relative to the other averages yesterday after that huge day on friday >> last week was a huge week for tech highs not seen since the depths or actually the height of the internet bubble. meantime, secretly secretive wamo google's autonomous drive left a few supporters behind the testing facility outside san francisco. phil lebeau was one of those reporters. he joins us now with a look at that phil zwrees touring the facility that wamo has about three and a half hours southeast of here. i can tell you it's pretty soon that we're going to see self-driving vehicles out on the road now, wamo is kaflt to say we're not setting a date when you will see self-driving vehicles

driving you around here's an example of the wamo price to pacifica minivan. there's nobody driving there's nobody behind the wheel. it is completely autonomous drive. level four automation. they're targeting ride sharing, trucking, private use cars eventually in terms of the markets where they plan to make money off of this. when you look at waymo and what its self-driving technology is all about, think about this. they've been doing this for eight years. they have amassed 3.5 million miles on public roads when they have said time and again what went well, what worked, what didn't work, what are the problems there were a select numbers of preapproved members of the public that were going in these vehicles that are completely self-driving there is an engineer who sits behind the wheel as required by law. we had a chance and if i was

inside this van for a very short ride where you had vehicles cutting it off you had pedestrians. you had cyclists what do the passengers see there is a screen that you look at that shows you what the van sees in terms of other vehicles, pedestrians, et cetera bottom line is this. as you take a look at shares of google, whether it is with waymo or whether it is with another tech firm or an automaker, the technology is coming so far so fast we are on the cusp of seeing self-driving cars being used at least in a limited fashion around the country and around the world. not sure exactly when it's going to happen, but it is coming soon john craftcheck from waymo is pretty explicit in saying they're getting very close to rolling these out and in sort of a commercial public fashion. >> so can i go faster than everybody? is there a setting can i pass on the left lane if

everybody all the waymos are in the right lane is there a way to dial it up a little if i want to -- are we all going to be going exactly the same speed >> you want to be in a self-driving car, but you want to drive it? >> no, i just want to set -- i want the setting faster than the other safeelf-driving cars >> you bring up a problem that's out there. these vehicles are designed to safely move you from one area to another. >> i can't drive 55. >> you and i -- >> i can't drive 55. >> driving like an idiot >> that's going to be the problem that people are going to run into >> i know. >> you're not going to go 100 miles per hour in this you're not going to go from kansas city to denver like you were back in college at 95 with a case of coors in the trunk >> you're allowed to go 80 >> i'm sure you could go above the speed limit. those are some of the things that will have to be worked out by regulatorregulators >> i want a setting. >> what is the difference between the technology that waymo uses to make its cars self-driving versus, say, a

tesla and how much more expensive is that? >> it drives up, picks you up, takes you where you are going, drop you off what tesla motors is testing with its super crews is hands-free driving that's not complete, hey, we're going to pick you up and take you somewhere, and if you need to stop, we're going to drop you off there. that's the difference. that's heavily automated self-driving vehicle from waymo, which is on the cusp of level five, which is 1 00% you are never going to have to think about anybody driving a car again. what you see with general motors, with tesla, with some of the other firms is heavy driver

assist limited times when you can go hands-free, but it is not self-driving >> tesla is about two years away from level four? >> willing, that's what they will tell you. they will tell you that they're close to level four. you know, the question becomes when do we actually see this happen with the different automakers and the tech firms? general motors is moving very quickly with super crews and with crews automation. they believe that they are on the cusp of taking the driver out of the front seat in quarters, not years. thaes the words of mary barra. >> phil, thanks. when we return, jim cramer live from the new york stock exchange in a programming note, a big line-up, including former treasury secretary jack lu and activist investor bill ackman. let's take a look at the dollar right now. 16s er$1 iwhe the euro is right now. we'll be right back. stay tuned on, insurance companis won't pay for damages.

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it's easy, there's nike and there's an upstart name in under armour, how about when you're like nike, it gets harder, right? >> nike doesn't like companies that are like nike and also of course we saw the incredible resurgence of adidas out of nowhere and then you had sports authority but you have a secular decline. people want to say it's because stores closed but there's a secular decline in kind of appar apparel. i think as much as kevin plank wants to do whatever he wants to dor do, they have to cut the stuff there's a tjx next door, they have everything. it used to be premium -- place -- >> i said i go there all the time, only way i buy under armour clothing. >> honestly, melissa if, you go full price big thing in kohl's and match

made in whatever. >>ness really incredible. >> jim, sir martin sore rel said there's been no margin shrinkage in digital advertising, what's happening to the ad companies? what are they saying >> we really don't need the ad companies, you give a check to alphabet and they do everything. it's a really good way to go. >> amazon, everybody -- >> russians. >> russians, yeah. >> i mean, if they have program, they have a human that detects the thing comes from putin, that could hurt their sales but most of the stuff, here's a check make sure wherever i go i see my ad i was looking and what pops up, wall street journal ad they track me everywhere they know more about what we want than we know. >> do you -- when you drive, do you drive 55 >> no. >> yes, coming back from the

eagles game in a torrential down pour i drove 55. >> normally he needs to get where he's going i would think. >> i drive 78 miles per hour, joe, because it's inteinterstat. >> you get confused. >> how about when we get on 124. then it's a problem. >> holy cow, and that bend right there -- >> that's right, that bend when it's wet just last week there was a jack knife. >> that thing should never happen we're talking about roads that we both drive on every day. >> and we are and best part of new jersey right there -- >> by far. >> summit and milburn. >> unbelievable good a programming note, don't miss a cnbc exclusive with irene rosenfeld on "squawk on the street" at 10:00 a.m don't miss it.

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>> tech tends to be the top performer after the start of q3 earnings stocks to watch this morning, how is it allison transmission, posting better -- post better than expected results the truck and bus parts maker

benefitting from improved orders even ahead of what's usually the busiest season texas roadhow, revenue beat estimates and company saw comp store sales top for company owned and franchise and food costs dropping and labor cost rising that's not great but the stock is up a little bit exact science, a smaller than expected loss and better than forecast revenue the results driven by strong demand for the company's dna screening test for colon cancer. some other stocks to watch today, ryan air is on target to post a record annual profit despite recent flight cancellations, shares are trading high by 6% and airbus's q3 falling lower it was a smaller drop than analysts were expected problems involving sales agents and u.s. arms technology

airbus was warned of a material impact from potential fines from those bribery investigations in europe i was watching pfizer, it's trading lower premarkets. >> dog >> well -- >> it's been an under did performer for three years. >> tomorrow is tax day. >> happy halloween and we have bill ackman on the show and former treasury secretary. >> "squawk on the street" begins right now. ♪ >> good tuesday morning, welcome to "squawk on the street." jam packed tuesday this last day of the month, halloween. earnings, a two-day fed meeting begins and president tweets in response to monday's indictment,