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, futures are up

europe is higher and kay shiller home prices just released. road map begins with under armour's ugly outlook, slashing the full year guidance, the lowest open in four years. >> plus apple versus qualcomm. they may ditch the chips for next generation of phones and ipads. 126 million and counting, facebook and google and twitter on the hill as new data shows the scope of russian backed preelection manipulation, far greater than previously disclosed but first david has news on a big deal. >> yes, we do. emerson electric wants to own rockwell auto mason and made a series of offers to the company in an attempt to fulfill that desire emerson's most recent offer was worth more than $27 billion. it was made in early october for $215 a share that was split evenly between

cash and stock the offer worth $200 in early august and one it made a few weeks after that, emerson's latest offer to buy rockwell, which increased in value, was met with a ters rejection according to people with knowledge of the correspondence. an emerson official confirmed the company made recent offers to purchase rockwell but would offer no comment beyond that rockwell, a fiercely independent midwestern company with relatively new ceo has been no strafrpger to emerson. that company looked for opportunities to consolidate in the industrial automation sector in years of trying to engage, emerson for the first time made a formal offer to buy in august. that offer was for $200 and when met with rejection, emerson came back with a higher price and with concessions on social issues that it hoped would bring rockwell to the negotiating table. thus far, that effort, which included a willingness to rename

the emerson rockwell has been met with continued rejection as well in the time since emerson made the first offer, stock prices moved up by more than 13% the latest offer for $215 in cash and stock as i said evenly split would value rockwell a little more than 20 times its expected for 2017. it would be roughly 32 times the analysts earnings per share estimates this year and total value of more than $27 billion, 27.6 billion on the share count i have for rockwell. emerson's offer stems from the desire to have a leader in all areas of automation and european giants such as abb become more aggressive in the field. emerson believes the combination could bring revenue and cost synergies worthas much as $6 billion. it's unclear whether emerson is willing to mount a full-on hostile bid for rockwell which

is incorporated in delaware. certainly interesting to see so far rebuffed now been made public we'll see what shareholders thinks rockwell shares trading up around 200 bucks a share. >> you know what's interesting, david, just that i did a lot of work on emerson in the last few days >> really? >> okay. >> because emerson is back last quarter the orders have been fabulous. this is astonishing because emerson has finally turned the corner when they started talking they didn't it's almost maybe they are dealing with strength now. >> the stock price is up, the last offer was made i'm told in early october, 215 half of that was in stom, emerson stock which has been strong it is worth more than 215 in present value. but again, rockwell, new ceo took over in 2016. milwaukee based company, clock

tower, it's an iconic company, very much one would expect wants to be independent and social issues play a role as does pressure from shareholders having now this been made public >> how many they made from people, rockwell collins, i mean, i understand the desire and to be independent. but i also know this would be an industrial power house like you wouldn't believe i mean -- emerson is so good too. some of the divisions -- this would be right -- this united technologies, honeywell and this combination. this is the big three that could be ge would have been at one point part of that big three interest being article about ge accounting >> i took two years of accounting need to take another ten to understand that. >> thank you for their part, rockwell is moving into software markets and manufacturing execution systems and things of that nature. so much has changed and this

area is as well the automation of plants and processes and solution and controls. >> one of the great technology companies, rockwell, always has been, first to do robots in our country. >> and emerson with a long history of steady results. there was a time back in the '90s where no one could touch the track record of earnings consistency. >> i know, mr. knight. i mean obviousry there are some assets, i remember sitting next to a guy on the plane in '90s, high level emerson guy and listening to how they pulled away from the rest of the world in process controls. and then they kind of lost their way and now they are back and to do this would really -- the stock should be up emerson should be up to get the deal done. >> that's what people like to hear. >> okay. it's that good a deal. >> one stock not up is under armour tumbling in the premarket. issues full year guidance well below forecast

citing operational challenges and slowdown in the north american market which is obviously huge for them. they talk about the complexities in running a business that has rapid growth although north america is troubled. >> they have 22% bulge in inventory, margin decline. this is the worst -- i may put this as the worst of the quarter. this is horrendous. >> worst report of q3? >> yeah, everybody knew it was going to be horrendous. >> they couldn't have been that much, down another 17%. >> i think this is more secular. i think that this company has lost its way the industry is much tougher, nike acquitted itself well in the analyst meeting but under armour went from being the -- i would say the most innovative in 2007, 2008 and 2009, if you had a teen in high school, you want under armour

now they are across the street we'll go to tjx, every bit of underarm our right there. >> when they moved into kohl's, i like them, better balance sheets than macy's, i thought that was breakthrough. it's no longer a brand that has any resonance. kevin is a competitor but -- when he went into the liquor business. >> our story on dot com, the company put down very shallow roots while awareness over recent years, loyalty is never as deep rooted as nike or even lulu >> he talks about ethos and mindfulness, under armour does not have mindfulness but i think that's true. they are a little more flash in the pan than we thought. they paid a lot of money for a

lot of guys to have their stuff and i happen to love under armour but so what, i'm not the cohort >> of course i did. >> you know when nike decides to wake it's the sleeping bear. >> there was -- there did seem to be watching my kids, particularly my son through his let's call it 9 through 13 or so there was incredible brand loyalty amongst him and his friends to underarm our. i don't know if that's sustainable and he's moved on to jeans but -- >> it was the hot thing. i remember when my daughter was captain of the field hockey team and got to choose the pink under armour, i thought it was great looking stuff. >> isn't that what you want as they get older they'll have that loyalty to your brand? >> but nike came up with product. it was in science -- it was a technology play. and it turned out to be that nike was able to come up with similar technology the fact is nikehated -- get

off the desk and nike -- this was not harvard yale, you know, nike decided they want to put these guys down and nike has that capability. don't forget i first thought it was sports authority going away but their sales are down everywhere. i think kevin is a terrific guy. i really love -- been on the show many times, something happened and it's not just nike. they have to refocus they've got to get the inventory out too. wow. what an inventory bulge. this stuff is going to be just given away. >> but the numbers by the wait north america sales down 12, apparel down 8 footwear did imagine a gain up 2. >> i remember when footwear, i thought that would be the death of them. but those are staggering figures. this is major company. >> how many quarters did they have of 20% plus >> they were smoking hot

look, they were not british knights and fila, not l.a. gear, which really did have shallow roots. but it was -- look, nike decided we're not going to let this happen and mark parker is going to -- he's a velvet glove. he's one of the toughest guys in the world, comes off as being a sweetheart he ain't no sweetheart. >> i'm sure he's not. >> he's not a sweetheart by way, i had the prefontaine shirts when i was running. >> company exists because of him. >> he'll come back but i just don't know go back to his knitting, the textured -- this is rather amazing. i mean, under armour, your rockwell, automation, i'm trying to keep up my head is spinning. >> apple versus qualcomm, a new chapter in that today.

we have a exclusive interview on the company's results which are giving a boost to the stock this morning. the gain for september and october now, s&p up 4, dow up 6, nasdaq up 4. as we put together two solid months here on last day of october. back in a minute

qualcomm is down in the premarkets and say apple is designing iphones and ipads that would not include qualcomm chips. considering chips from intel and other companies for its new devices. part of an argument between the two that's gone on for a while now. >> at one point qualcomm was down almost three points on this obviously apple is playing hard ball like you wouldn't believe >> we always have to remember, quaulcom has two business, the intellectual property business, at that ti had them in the works for long time, prifr to the advent of the iphone, they are in a very significant and important dispute with apple one we discussed in the past

when i've interviewed him and that will continue and be solved in court and take some time. it's not apple that's licenseee but the people who make the phone for apple who the licensee no longer paying this is the chip business, in which qualcomm sells its chips to the likes of apple and other of course wireless phone makers and apple has sourced intel and maybe more so, even though those chips are said to be not adds fast. >> when i hear that, the chips aren't as fast, you know brian krzanic krzanich, you think the chips he's selling now -- he has the ability and capability, their fabs are wonders of the world. his engineers are terrific he's a quiet competitor. i would not -- >> this is not an area that they have been in for -- this is it, all they've done. >> i remember when they told me

if apple ever wanted to switch to from samsung they would be ready and ready quickly. >> who said this, intel? >> top level people at intel people we talk about all the time mid-range people at intel. my intel salesman, top i'm telling if you think k krzanich can't beat qualcomm, i've got to tell you, intel can manufacturer better than anyone in the world, greatest manufacturer and including cummings have had a good quarter but nobody seems to care i feel they are playing with fire qualcomm is playing with fire. >> you think so? >> yes, rolling the dice. >> this is -- they'll say it's just a dispute but it's existent shal. >> it's week low, right? >> i hear you. >> you've got to add the re -- >> the iphone x, reviews are coming out this morning and phone is released this friday.

the verge, the x is the best iphone ever made it's thin and powerful and ambitious ideas about cameras and pushes the design. >> it's really incredible. this one makes me feel like david come here, i need you. this seems like a relic what people are saying. i don't know facial recognition. no one has ever tried to get -- >> we had steven leaf vee on yesterday and it appeared to work really fast. >> all i can tell you is that every time this company is doubted that the iterations mean nothing, you get it then your kids get it and you discover, the 40 different things that you never thought you could do then tim cook gets land basted as not doing something special and we want a chinese phone that nobody really wants. that's the narrative then an anl sift says don't get caught up and hits the price target and whispers that the best day of tim are over that's the way this thing -- how

do you think this got from 90 to 1 to where it is now by analysts saying that nothing is good. >> meanwhile the highest market cap it's ever had. >> right. >> bought back a lot of stock along the way. if they hadn't, i think somebody pointed out would be worth a trillion already. >> i love the fact they say there's nothing new. what is apple supposed to do tra transponder? take me to mars right now. what does tim cook have too do these are wonders and changed our lives. >> all of those things and the stock is up 44%. you're talking like it hasn't done anything. >> the analysts, david, are stepi had in their backing they always have some fab country, united nations of sarcan fab aren't selling well, remember that? what book? >> the ugly american. >> got us both on that one. >> you've acknowledged that the x is not a q4 story the way we

might have expected. >> it's a -- tax reform and the 10 that's what we have to look forward to 2018 will be tax reform and the x. >> you're looking forward to that >> yeah. >> no longer being able to deduct state and local income taxes. >> they are starting to fin agle that they are talking about the 401(k), you get one tenth -- that's a great idea. the only thing ever worked that the government has done and want to take that >> are you okay with the phase-in on corporate? >> no. >> phase-in. what percent chance do you think we get something done? >> in 2017. >> minus five. >> next year >> 35. it depends on the tweets >> it all does >> we're waiting to see if we'll get language tomorrow of that self-imposed deadlines. >> my wife kicked the tires on the house in union that manafort

has. we think we could get it for 2.5, the manafort house. that's the house he uses to keep his clothes in. >> 800,000 >> yeah, we kicked the tires last night on place, it's the only eyesore of the whole darn block, not that he would care. >> fill ip bree one. >> 200 count >> like butter. >> we'll get cramer's mad dash and count down to the opening bell it is halloween. thanks to ryan debt trick since 1990 the s&p is up on halloween, ten of 19 years. back in a minute ronoh really?g's going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost

and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. another day at the office. why do you put up with it? believe it or not you actually like what you do. even love it. and today, you can do things you never could before. you're working in millions of places at once with iot sensors. analyzing social data on the cloud to create new designs. and using blockchain to help prevent fraud. so get back to it and do the best work of your life. 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. gglobal bonds, and high-dividend strategies. sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more.

♪ >> all right, it's tuesday and it is halloween as you mentioned. >> always a great holiday. >> national secular holiday. >> kellogg, want to do in the mad dash. >> i have one word for you pringles pringles, david, first slide, pringles are back on track and that is the driver of kellogg along with -- can you believe that along with margin expansion and growth platforms and rx bar. this is incredible i never really felt great by minus 1.4 net sales but it's a food company and that's a big improvement from minus 4.4 not that long ago. you're talking about zero based

budgeting, they are doing it maybe it means kraft heinz would come in. project k is starting to work. savings of 600 to 700 million run rate this is what passes for growth in this country. i like apple because that's consumer products story but people like this, pringles. >> no growth whatsoever really, no -- you're making the point people are paying for no growth and happy to do it. >> it's the second and 12, it is just like that, like fantasy this is fantasy that this is a growth company fantasy. david, cereal sold to you. >> i had my corn flakes this morning. >> i had carl's granola. >> that's good doesn't give it to me. opening bell and we'll check on rockwell automation shares and also update you on what exactly is going on between sprint and

t-mobile. >> goldman cites favor when i pay millions for research cites favor. there you go. >> bring you the latest. question. what is an answer and how can you measure the value of one? today trusted answers from trusted sources are rare and precious commodities. and when industries are

undergoing massive transformation, opportunities are only opportunities if you can find an answer that separates fact from near fact. thomson reuters provides you the intelligence, technology, and human expertise you need to find those trusted answers. the answer company. thomson reuters. stay with me, mr. parker. when a critical patient is far from the hospital,

the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife.

you're watching cnbc "squawk on the street. the opening bell in over a minute it is a busy tuesday fed meeting begins two days, a lot of earnings, under armour, plank on the call in what the journal is calling a rare moment of humility. i think we were probably a little braggish about things. >> that was the top. this is a game of humility and every time you start talking in a competitive situation, saying that you can trounce so and so, what he did was wake nike, really he poked the bear. nike was asleep and he poked them and that was a bad mistake and in this ca nike is behind a lot of problems they have. >> later this afternoon, the representatives from twitter and facebook and google will be in front of the senate judicial yar

committee, we'll pay attention to that and what social media may tell legislators let's get to the opening bell at the s&p at the big board this morning, it is tapestry celebrating name change from coach. and telecom group based in finland celebrating its first listing anniversary. >> i for one cannot wait for the hearing. i can't wait for the hearings because these are people you very rarely hear other than on the conference call. put a face on the name -- find out who the great people are i hope they are respectful and polite. >> you're talking about from -- >> facebook and alphabet. >> twitter zyeah they'll be very good. >> alphabet is a seasoned player when it domesticomes to investi >> journal does a long take today on google or alphabet's power in washington and how eric

schmit was a outspoken backer of hillary clinton and had a reverse course but the larger question is, will these companies face a significant regulatory burden that doesn't exist from washington we already see it in europe. is that something investors should be concerned about. >> remember when alphabet was under fire because of the procter and gambles didn't want their ads next to -- >> algorithms cost nothing he had to get the computer scientists to involve what was the crypto nazi. here you have to have people involved until you figure out it's clear you know where the ad is coming from one of the great thing about these companies, they have very few people this will be interesting to see if the gross margins have to be hit. they are masters of trying to figure out how to do this. they have 60 billion here -- i

mean 60 billion overseas -- i hope they lobby while they are there for tax reform to get the money coming in but these companies are so smart and what will happen they'll come in and be humble and say they'resorry, we didn't mean t do this and a lot of people to figure out how this will never happen again and they'll leave and people will say wow, that's the best we have in this country. that's my prediction, this is not going to be like mr. t. >> they underplayed the significance, facebook said nothing happened originally. >> they played it wrong, they'll have to take their beating like good citizens, they'll take the real beat down and come out and say i'm sorry, i apologize then this will move on. that's the way you're supposed to do it unless they decide to be combative then all bets are off. if they try to explain to people what happened, no, just say listen, we're really sorry and

apologize. when they come at you again, what do you say? >> i apologize. >> thank you. >> david, rock well automation leading the s&p. >> it's up about 12% this morning. if you missed it at the top of the hour we reported that emerson electric, another midwestern industrial giant of course focused on automation, process controls systems, has made offers to buy rockwell automation, the latest offer was made in early mid-october according to people familiar with the situation it comprised 50% cash, 50% stock and it was worth at the time $215 a share to rockwell this was communicated from a letter from one ceo to the other and to the board but rockwell's response, i'm told by people again who are familiar with what has gone on here was, no, not interested, thank you. it has now been made public and the stock is up over 12% emerson for its part also trying to address some of the social concerns that might come up for

a fiercely independent company as i reported they had shown a willingness to change the name of the combined company to he emerson rockwell also of course talking about synergies, i may have expressed them incorrectly earlier, worth perhaps as much as $6 billion from bringing these two companies together you can see emerson shares are down and rockwell is clearly up sharply. still below the 215 level, which is probably a bit higher given emerson has moved up over the last few weeks in terms of the stock performance of its own both have done quite well. >> will this be a honey well united technologies, scorched earth? >> antitrust doesn't appear to be as problematic. they were zibing it as hand in glove as opposed to hand in hand. >> totally agree. >> utx has you csuccess --

>> but i don't want to hear about rigorous independence. i want to hear about money don't you think the people there will be they don't own enough stock to block it. >> it's a delaware company, not clear -- i don't think there was a staggered board. very much unclear whether you get emerson going full blown hostile. sometimes companies are willing to go only so far. it has now been made public and rockwell shareholders aware it was made we'll see what happens if anything and whether they chance their stance at rockwell offering stock and cash, they can make the argument your sthar holders will benefit from this combination as well because they will own a certain percentage of the combined company. >> david farr, ceo of emerson is a gentleman, a very loved

figure i cannot believe he would go scorched earth to get this company. not his style. >> no, of course they are also going to preach financial discipline 215 is -- at that level you're talking over 20 times that's pretty high multiple. >> you buy on weakness because if they say we can't buy it, stock goes higher, the quarter is better than expected, you can buy it on that emerson is the buy here, not rockwell automation. that would -- just no way. but i do expect, david that goldman sachs when they put out their note tomorrow will say, shortly after these reports, david faber reported companies have not seized negotiations congratulations, i've never seen a reporter's name mentioned in research i've seen cnbc but never seen david faber. will he be in the research tomorrow or should we address david faber right now. >> we should get to sprint and

t-mobile right now >> it's a strangely evolving situation. we're talking about sprint and t-mobile, these reports yesterday beginning in japan that sprint was poised or softbank was poised to pull out of negotiations. as i reported yesterday that was not the case and continues not to be the case let me bring you up to date in terms of what i have from people who are in a position to know. these two companies are still talking. they had originally focused on this week as being the week that they would come to some sort of agreement or not on price. remember, t-mobile has been doing its due diligence for the past few weeks, certainly there seems to have been at least some questions about price from their side, perhaps being met in part by softbank's some new

unwillingness to give in on governance, when the whole thing started, the first provision given to sprint/softbank as a deal killer was from deutsche telecom saying we need to consolidate and be the controlling shareholder. and everything i had heard was that the man who controls softbank acceded to that once he gives a handshake, he's done steve jobs and him did a handshake on the phone years ago in japan when he took over the vote a phone -- it seems somewhat odd that he is suddenly going back to look at governance and saying i'm not sure we can handle not having control in some fashion or very significant influence. will they be able to sur mount that concern and the concerns over price very much unclear. we will know by the end of the week i am getting a more and more pessimistic read from people involved but again, the reports

that this thing is over are premature, however, it has hit a very rough time i think it's fair to say. >> so -- >> it's bizarre how this sort of evolved to this point. >> we know john ledger's could his management style be an issue? >> i don't think so. i think in fact frankly from the conversations i had, he would embrace legere more than the ge germans might. >> he's unbelievable and competitive and been force of will david, t-mobile stock, they had a remarkable quarter it is very interesting to watch how this stock going down and yet on earnings alone, i could argue the t-mobile should be higher i also don't think that if t-mobile -- i still think the germans want to sell t-mobile. >> sell it what do you mean sell it >> that they would -- >> >> merge with someone. >> yeah, this is the best asset they have.

they want to continue to have the ownership position of this asset. >> you think so? >> i can't, it was never an issue who can control the thing. the software board did bring us up -- where this reporting saying this thing is dead is emanating from is that board meeting but it's up to one guy, massa and i think as of now, my last calls this morning, while things did seem to be deteriorating, and he does apparently have difficulty with governance in a way that he perhaps didn't not that long ago -- although he always did. he always was a little queesy but giving up control but ready to do it. >> i would be a buyer of t-mobile right here. honestly the numbers are so good for t-mobile i have american tower, they would have been the big loser in this one it's fantastic for them. >> if you asked me would this deal break down over this, i would have said no, it would be

concern about antitrusantitruste one side saying they didn't want to take it on. >> they are a cable company to feel under pressure to get in the phone business >> i don't think so. not right away. >> somebody to come after t-mo >> no. >> i don't think it would shock me they are concerned if they don't get the stock price higher. >> more likely that softbank tries to figure something out again with charter >> charter okay >> but this is -- i look at these companies and emerson and t-mobile and say how do i get into the stock market that's so red hot, you have to use these little price breaks to get in. if emerson is not able to get a rock well, boom, you buy emerson. t-mobile, you buy it if it comes down john legere is working every second he's not spending don't forget he did a 409 -- >> fast runner, no doubt about that. >> i'm trying to do -- i'm trying to spin with him but he's

too good my wife was the champion in new york and you put those together and we pit them. legere is a competitor oh, yeah. >> guys despite lagging for most of the month, consumer staples are higher, general mills, conagra, kraft. >> kraft heinz, we have a special interview with irene rosenfeld at 10:00 i went over that conference call i think the world of irene but they stabilized. but i think that david when a new ceo comes in as is the case with kellogg, if there are takeover money, shouldn't that leave? >> it's rare a new ceo sells a company. >> we're got to go, david. >> good morning, guys, mixed open somewhat surprisingly consumer staples are flat to slightly up. let's look at the sectors.

once again every day this semiconductors have been the market leader and that's the case again today banks up a little bit and materials and consumer staples and noble had earnings down a little bit even though they beat i do want to emphasize what's going on with oil. we were over 54 earlier in the preopen. and we are cleose to breaking through to highs for the overall year that's very important. the two big developments right now, talk about extending the opec supply cuts and earnings had been pretty good for big oil. bp reported in london they beat on earnings and revenues and upstream and downstream was better than expected and that echoed exxon-mobil's comments over all earlier and bp has gone positive for the year as you can see on that news exxon-mobil, same on friday, they had better than expected numbers. their stock went up to the highest level since january. it's still down for the year but you saw the big drop we see in january. so we'll see what's going on oil is benefitting from the two

trends and hope here for big oil is they are getting capital spending discipline and exxon emphasized that and bp emphasized that and higher commodity prices, that's what's going on those two elements are moving things the goal is to get the cash flow covering dividends and capital spending for all of the big oil companies. exxon is now doing this and you're seeing prices start to come up a little bit trading in the energy etfs in the past few days has been higher than normal even though most of the big etfs are down on the year the oil exploration and production etf is down 18% for the year the oil services are down because investors stopped believe in the oil recovery when oil dropped again in july and august you can see now it's starting to make another comeback. the oil refiners up 36%. that's because gasoline prices rocketed up on the hurricanes. if you look at phillips 66, they went parabolic on the hurricanes sectors this month, tech is the leetder if you look at it, up 8%

overall. this is what's going on because the s&p is up 2% this means tech is the primary driver of everything if you look at big tech this month. look at the tech stocks, folks, if you take out these stocks, i'm quite sure the s&p will be flat to negative for the month finally speaking of apple, david was raising this question about apple's buyback, they've been a buyback monster, buying back more than 4% a year. 21% share count reduction and you're right, if you had the original share count from five years ago, apple would be a $1.1 trillion company right now back to you guys. >> all right, thank you very much, bob. we're getting chicago pmi. let's get to rick santelli. >> these numbers never cease to amaze me looking for october read, it is off the charts, looking for 60 we ended up with 66.2.

66.2 that follows some very strong data points in general but this one really is big time the last time this market was anywhere near this was at least on my records about eight or nine-year track record i have, 68.6 goes back to march of '11, that's the last time we had such a strong chicago pmi let's consider what's going on in the marketplace, we know that bank of japan didn't do anything we know that mr. carney and bank of england are going to be meeting on thursday. and we know we have our first of two-day meetings and employment report one week of 10-year drifting lower. march 1st of 10-year, what's important about this point, you see on that chart, 263 is the high for the year in march then we had very important tops, 241 and 2 p.39. that whole notion of lower highs was violated but here we sit there's a lot of event risk

perceived by traders and they've been easing off a bit. we want to see the way the market looks before the weekend on a friday close. foreign exchange, one week of dollar index yes, it's up a little bit and has a bit of a cushion with respect to the 94 area since bank of japan met let's look at the may 1st of dollar yen, it's backing away a bit in favor of the yen but what's fascinating is that 114 area, that's a huge area to pay close attention. not a lot of volatility as it starts to come down. let's finally look at what's going on with respect to the pound and i like this. we know they may raise rates but there's also a lot of other things going on. eu chief negotiators was speaking right around 9:00 eastern. look how the pound popped. that's a nice little move. then in context of brexit generally, i believe that was the 23rd of june from 2016 let's start in early june. yes, we're not at these highs but we're definitely a lot of wood underneath the market with

respect to where it was in many traders think it will gain more strength as mr. carney starts to potentially snug up. back to you. >> thank you very much rick santelli, we began with david's reporting, both now halted for news pending. >> i would assume we'll get the news we've shared. not sure which side requested it or what we're going to see in terms of it's coming from rockwell or emerson. we'll read with interest or await that as we reported again if you're just joining us, emerson had made a series of offers beginning in early august to acquire rockwell automation, the latest made in early october worth $215 a share and cash and stock at the time of the made a few weeks back then rebuffed each time by rockwell according to people familiar with the situation. see what the news is. >> when we come back, stay tuned for an exclusive with irene

rosenfeld, on a day when a lot of staples aren't doing well dow is up a couple of points on this tuesday don't go away. today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov.

decline in under armour's history. moth that, the shares down alst 14% to just over $14. dow's down five. we'll get "stop trading" with jim in just a moment

let's get to jim and "stop trading. >> i have to tell you, remember what i'm trying to find or give it emphasis, where a stock goes down that you get a chance to buy. mastercard has gone up, up, up, in anticipation of the quarter after visa reported a great quarter. it's unbelievably good but this stock comes in, it is a gift because the only thing that happens is it ran up in the quarter. these stocks are amazing and the mastercard, if it goes down a buck or two, if it was up three before the opening, wow. gift not gif, but get >> jim, what's on "mad" tonight? >> when david, the big deal,

according to goldman -- we have american tower shutterstock has been weak, and by the way, didn't mention, but we have vist raw because i cared so much about the deal and the consolidation of utilities because they're all 52-week highs despite the fact the fed is going to raise. i think it's consolidation and better than expected earnings. what a show. very matter of fact, rockwell. there's no bids that i know of now i do >> we'll see if we get anything else in the next few minutes we'll see you tonight, "mad money," 6:00 p.m. eastern time >> when we return, the vdierct is in for the iphone x we'll get more from reviewer whose have spent a week with the device dow is down eight. win an uncertain world?k predictable income pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses.

and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.

ronoh really?g's going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95...

i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. >> good tuesday morning. welcome back to "squawk on the street." i'm carl quintanilla with david faber, sara eisen is back with us at post nine on this tuesday morning. a lot going on, whether it's

earnings, under armour, a fed meeting begins we're waiting for emerson and rockwell to open at the time being, major indices are about flat >> big earnings movers under arm our under. >> and plus, it is the last trading day of a record setting october. can that run continue? >> and finally, as apple sits at all-time highs we're getting the first reviews of its new iphone. plus disagreement. that's being kind, with qualcomm hits that company's stock price. >> first, we got chicago pmi, a blowout number let's get conference board numbers from rick santelli >> the operative phrase is blowout number this is a blowout, too 125.9. these are stratospheric, you almost need to put on a mask poobreathe better air, it's so thin up there.

125.9, and we're coming off 120.6. how strong are these you have to go all the way back to december of 2000, which actually was the comp on last month even before the positive revision the number i'm referencing in december 2000 is so lofty at 128 and change, but these are really strong numbers whether it's conference board, chicago pmi, there's definitely some animal spirits going on out there in the market. obviously, if you look at the run in equities, seems to reflect that maybe it will make a difference in what the fed's final statement reads before we get to that all-important meeting in december carl, back to you. >> all right, rick, thank you for that as we said earlier, markets a bit mixed on the last trading day of october all three indices still positive for the month and on track for their best performance since february a potential for a new tax plan and a lot more let's bring in john, chief investment strategist at oppenheimer, and phil, allocation strategist at

jpmorgan good morning, guys make aglist of the upside surprises in the past few days durables, as we know back to back gdp numbers, the best in a couple years now chicago and confidence how long does this last? >> yeah, so this has been a great year right? and it's not just here, but it's abroad, too. first year since '09 that all country world index is outperforming the s&p. what's really impressive for us, 85% of all country world index returns are coming from earnings so this is not an early cycle multiple expansion this is not a qe story this is not gimmicky this is a real story based on earnings companies are getting rewarded for meeting earnings and stock pickers can go back to their day job, and the fed and the other central banks, zero rush to upset the apple cart with financial conditions. >> getting annihilated for missing. the complaint about the market is it doesn't allow you a chance to get in. >> the real problem is the market is very impatient now

some of what it's showing is we have the beginning of a capitulation of bears as well as skeptics who now for over eight and a half years have held pretty steady to not believing what was happening and the cumulative effect of all of the efforts of quantitative easing, repairing the banks and autos and insurers and the global economic recovery, the international markets coming back, and not just the markets but the economies. the combination of this, there's a chasing it up effect, but in that comes in impatient money. that is creating this where you get stocks just killed when you were mentioning under armour, i couldn't help but think it reminded me of a couple years ago when they all hated adidas the english call it adidas doing great. under armour is eating it. >> it does sort of raise the question, phil, with this world you paint of better earnings, fundamentals, economic data, and not so much disruption from

central banks, how then do you join the market at these kind of valuations how do you pick something that looks attractive >> we're always talking about a balance story. this isn't an in or out of the equity pool for us we'retalking about a balanced risk profile the two sectors that i think have really caught our eye this quarter are tech and financials. two of the sectors everybody wants to know is this a time to get in they just posted earnings on revenues and sales that are the best sectors in the s&p this quarter. so in terms of getting in, we think this has a runway, not this kind of crazy above trend growth runway, but a runway where tail risks of either recession or the tail risk of the fed upsetting the apple cart, six times per year those are two low probability events, and right in the middle is the sustainable - >> is that assuming you understand the impact of the balance sheet runoff we have no data sample on it >> we have no data sample to the

way they have accumulated their balance sheet or how they have come out what we have told us, carl, is they're going to be so gradual in this normalization process. and i'm using that with clients a lot. not tightening, but normalization. and i think that creates a much better outlook for investors that the fed is not the boogie man on halloween here. they're not going to upset this thing. >> and powell maintains that >> powell would maintain it, apparently, from what we see we can't help but think there will be nervousness around it when a new fed chair takes the helm, that market is naturally going to be wondering, how are they going to respond to different situations it took the market almost six years to get used to bernanke. it took them a relatively shorter period because of the legacy that bernanke had left with yellen to get used to yellen i would have hoped the president would have renominated janet yellen, but at least powell looks like a fairly decent compromise here. that said, related to asset classes around the world, we say

be diversified global looks like a pretty good deal here. the international stocks, the performances for u.s. investors have mostly been, the vast majority of the returns have been due to currency with the dollar's weakness. just the dixies down around 8% this year. >> are you a buyer of small cap stocks, phil, on the odds that tax reform do pass >> that's a good question. so the trump trade this year is 0 for 3. rates are lower, the dollar is weaker, and small caps are underperforming large caps it would be nice to have this kind of tax reform argument. we're not holding our breath for it this u.s. outlook, i mean, consumer confidence, best since 2000 and one more thing on the fed chair. i remember this conversation with janet yellen. they would never move rates. she's going to move rates five times in her tenure higher, and she's going to start the balance sheet unwind i think a lot of this fed nomination is a little bit overblown, and it goes back to the mandate. they had a mandate for 100 years

of full employment of price stability and whatever chair is there is going to be focused on that >> we hope to learn more about that on thursday thanks >> let's take a closer look at under armour, previously mentioned. shares getting crushed this morning after the company missed expectations on revenue, and the big story was it cut its full year guidance almost by half on earnings per share the company cited operational challenges as well as slowing north american growth. the stock is down 15.5% on top of an already 40% slide for the year i just got off the phone, guys, with the new president and coo, as well as kevin plank, who is the ceo. asked him what's going on here why the turn in business already, it was looking downbeat and now even worse they frame it as internal and external problems. internally, they just were in this hypergrowth phase for a number of years. last hour, you talked about the 20% growth figures they were posting on revenues every quarter. and then it became a mature

company and they didn't have enough flexibility to pivot like a nike into other businesses like women's and like global they're trying to do that, but they're not doing it fast enough externally, they have had retail problems one of their big customers is dick's for instance. we know what's going on in the retail world so patrick and plank say this is sort of a two-year journey they paint this as somewhat of a restructuring. they hate the word turnaround, but that they are going to become, they say, a growth company again. and they're going to focus a lot more on diversifying the business, financial discipline is a word you're hearing a lot on this conference call this morning. and clearly, they're not happy with the results if you ask me, as someone who follows some of the competition like adidas and nike - >> adidas. >> right what's really happened is there's been a move from everything was hot in athleisure to lifestyle brand and adidas has really taken a lot of the share in north america and a lot of the growth

specifically from under armour under armour was a top grower. adidas swooped in out of nowhere, i think, and surprised with the number two spot >> when you say diversifying the business, you mean apparel that's not athletic or different kinds of footwear? >> focusing on lifestyle and not just performance this was a brand that started out selling gear and apparel that was good for athletes specifically in the football space. that's where kevin plank comes from, that is what the company does they have also been pretty hot in the kids brands but they need to focus now on a more lifestyle, more occasions, as they call it. not just the performance sports wear because that's not working right now. that's not what is culturally relevant as far as sporting apparel. so for more on under armour and how to play the stock with this big slide, scott krasik joins us did kevin and patrick to some extent now that he does have the number two, give you anything to hang on that you would be a

buyer of this stock? it's gotten absolutely hammered in the last year >> hi, sara. thanks we had an underperforming rating on the stock basically all year, and i think right now we're getting mixed messages they talked about the need to diversify into footwear, to your point. to diversify into more lifestyle sportswear but at the same time, there are two big competitors who are doing it better. and if you think about where they have been historically, you know, they really just hit lightning in a bottle twice. number one, they hit this, and frankly, they were responsible for it, so good for them, this, you know, wearing performanc apparel as a lifestyle and then number two, hitting on curry basketball to take a basketball franchise, your first franchise from essentially zero to $500 million or so very quickly is almost impossible to replicate. >> let me ask you, scott, about kevin plank himself.

we're showing some of my favorite video, actually, from the trip to asia with steph curry. their global brand ambassador. but plank himself, so the stock, if you look at a longer term chart, it's obviously a moonshot they were growing like crazy then 2015 came and the ceo decided to issue more shares, non-voting shares to retain control over this company. was that a turning point for investors? you think they would vote for that at this time? because the stock is pretty much been down ever since >> there's really, there were two events number one, i think, to your point, that happened even before that, the company decided to take on debt to buy several connected fitness brands, map my fitness, lifestyle websites, and you know, you look at the balance sheet, and they've got over a half a billion dollars in debt because they were chasing some

of these ancillary businesses that never made sense to the core this was and always has been kevin's show as investors, i think we need to understand that. a lot of people feel comfortable that, you know, kevin is in charge, but to your point, you know, going outside the box, spending as much money as they have in the past, i don't think that flies >> i was just going to say, how much longer should investors feel that way with the stock performing as it has kevin plank is no doubt the company's biggest asset. always was viewed that way he told me he's going to focus on product and brand and culture. that's what he has done best, except for look what's happened to the business in the last year or so. >> well, it's interesting. from a valuation perspective, as the stocks come in meaningfully this year, the valuation has grown because the margins have come in even more so one thing that we're talking to investors about this morning is the price to sales that's a metric often used for

growth companies, for technology companies. and we're trying to figure out if that's really appropriate at these levels, the stock's trading at .7, .8 times sales. if you do believe that the appearel category will get bette in north america, then that multiple is probably too low the problem is if you look at the margins right now and you say, okay, they're earning sort of mid-single digit operating margins they were probably overearning before and it's going to be tough to justify the pe multiple almost at any point. >> wow so you're not a buyer? down 15% >> right now, not a buyer. >> under armour. thank you for jumping on the phone. scott krasik, just jumping off the earning call we'll watch those shares all day. >> as we head to break, take a look at shares of mondelez they beat expectations on stranger than expected organic revenue growth that was part of the story the stock's up 6%.

irene rosenfeld joins us on earnings her last call, conference call, earngsepts, in rorand interview as ceo more "squawk on the street" right after this i think it's terrific. your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade.

6% this morning after posting higher than expected earnings last night the stock maker improving sales in both north america and emerging markets europe also a part of the story. joining us is mondelez ceo irene

rosenfeld, fresh off her final earnings call as ceo welcome back, irene. >> thanks, sara. >> talk to us about the state of the underlying business, just how much improvement was there because there were some special factors like the dollar has stopped hurting and you did manage to recover from that malware hack that influenced last quarter >> yeah, look, there were certainly some unique factors, but both the positive and negative what we were most pleased by was to see the accelerating sales growth while at the same time we continued our sizable margin expansion. it's been a challenging time with the macros over the last couple of years. we're delighted to start to see the emerging market economy recovering we're delighted to see 4x stabilizing against the dollar, and all of those factors with the underlying business momentum turned out to be a very good

quarter for us on both the top and bottom lines >> it does paint a picture of an overall economic improvement we have been talking about that. i talked about it with christine lagarde, the fact that the global economy feels like it's firing on all cylinders. how sustainable is that boost in consumer spending, as you see it >> i think it's quite sustainable. we have waited quite a number of years to start to see the economy coming back. clearly, our snacking categories are very correlated with gdp, so as we see gdp coming back and in fact growing in a number of our key emerging markets, that's a real tailwind for us so i think it's quite sustainable. it's not a full recovery yet we're still seeing some softness in markets like brazil, but they're a lot stronger than we had seen over the last couple quarters >> which sort of brings us to where we are right now you are stepping down in just a few weeks. this was your last earnings period as ceo. the business has just started to turn and you have put a lot of -- you have planted a lot of seeds.

launching a new snack brand, rethinking markets and brands in certain markets. cutting costs, which has been a big part of the story. where are you in the turnaround or in the business that you're passing on >> look, we have done a lot of heavy lifting over the last couple years, sara, as we watched the macro environment worsening, we focused very much on what we could control and that led us to a very sizable margin expansion program, a big focus on cost and over these last couple of years, we did a lot of that heavy lifting, both in overheads as well as in our supply chain at the same time, we always understood that some day, these markets would come back, and we wanted to make sure that we would be well positioned when that happened. we have invested in our brands, in our routes to market, and it's starting to pay dividends i feel very good that the business is poised to continue the momentum that we're starting to see >> your successor, dick van de

put, what is his biggest challenge as he takes over the company? >> i think my biggest piece of advice to dirk is it's about profitable growth. i think we've got the fundamental foundation in terms of our margin structure setup. obviously, we'll continue to see opportunities there. but the biggest opportunity now is to figure out which are the best bets to place so that we can further accelerate our top line growth. i truly believe that the combination of a strong top line together with a strong bottom line is what makes for a sustainable business >> what else can you tell investors about the transition i was on the earnings call last night. nearly every analyst thanked you, said you have been great, created a ton of shareholder value. first kraft, then the split, then mondelez. the new ceo led one of the biggest makers of frozen potato product, but it was a private company, a canadian company.

not someone you groomed internally what do investors need to know to continue to have the faith here >> well, look, i think as we said at the time that we named dirk in august, he has a very storied career in consumer products, in many different places he's a global citizen. he's lived on three continents he speaked five languages. i think he's very well schooled as he takes on the challenge of our company. i think one of the biggest issues, though, that has been on our investors' minds is does he understand the importance of margin and i can say with great confidence that clearly dirk will come in, he'll have the opportunity in the first half of the year to begin the strategic planning process, but he truly understands the role that margin expansion has played in our overall algorithm, and i'm confident he'll continue to build on that momentum on our bottom line while he then accelerates the top line >> nelson peltz is on your board. i know we talked last week at

our net net conference that we hosted about activists you said the best strategy here is to engage you welcomed him on the board. you found it productive. you told companies not to be scared of activists. i wonder if you think that just a general industry question, procter & gamble has made a mistake fighting so hard to keep him off the board with very little to show for it, just a minor win? >> i think every company has to make their own decisions, sara there's no question in our case, we were on a path as we watched the macro environment shifting, we were on a path to focus more aggressively on margins. that was very much a part of nelson's thesis. and in our case, i believe that it was the right decision to invite him to join our board he's been a very constructive director and certainly, i find our results speak for themselves >> the industry has seen so much activism, you have seen it, all

driven by the fact that there are big consumer changes, slower growth i wonder if you could tell us your prognosis for the industry at large the fact that kellogg is soaring this morning, but negative sales growth i mean, are we going to see a rebound in this industry, are we going to see smaller companies, bigger companies how do you see the future here in the food business >> you know, i really feel this is a global economy, sara, and i do think scale will continue to play a critical role but it is imperative that companies keep their ears to the ground i mean, we have seen the most profound changes in the consumer, in the customer base, in the channel penetration, in our competitive actions. and as a result, it's been probably the magnitude and the speed of those changes is bigger than any i have seen in my career but i have great confidence about the future of the industry and certainly about the future of the mondelez business >> we hope you'll stay in touch,

irene. thank you for joining us on earnings irene rosenfield, the outgoing ceo of mondelez. best of luck to you. >> wanted to update -- thanks, irene. i wanted to update our viewers on a story we first brought you at 9:00. this just out from rockwell automation in a press release, confirming my report that emerson electric had offered $215 a share in cash and stock for rockwell as recently as a few weeks ago. $w cash and shares of emerson common again, that based on emerson's 30-day volume weighted price at a time of about $63. it would be higher now given emerson had moved up in the intervening weeks. the press release also confirming our report that the initial offer made by emerson in august was for $200 a share, and going on to say that consistent with his fiduciary duties and in

consultation with his financial and legal advisers, the board of directors of rockwell automation reviewed the proposals and determined each of those proposals was not in the best interest of rockwell automation or its share owners. again, of course, something else we already reported, namely that they had been rejected now, they have been made public by both me and now the company confirming that. we'll see what shareholders think of it all. rockwell shares had been up as much as 12.5% before being halted news pending. we're expecting them to open in the not too distant future along with emerson, which was also halted for the same news, which has now been released or confirmed what we reported by rockwell >> what's the back story here to this deal? is this an industry specific one? >> emerson has looked at rockwell for a number of years as a potential consolidation opportunity. particularly as the industry is getting even more competitive with entrants like siemens and

abb, changes as you might imagine in process, in terms of automation software and things of that nature and a feeling at emerson that they would benefit from having all of that under one roof in terms of what they're able to offer their industrial clients but this is a fiercely independent company. and again, i had reported they had already rejected these offers, sara what remains unclear is the willingness of emerson to move ahead regardless to try to bring this in some fashion to shareholders and give them the voice. or will their voice be heard if they in fact disagree with management and the board >> we'll see what happens when the stock opens. coming up, the president set to make his decision on the next fed chair thursday, as the fed's two-day meeting kicks off today. we'll have the results of cnbc's ckn mont nt.d surveyex ba ia me [ male announcer ] eligible for medicare?

that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they pick up some of what medicare doesn't pay and could save you in out-of-pocket medical costs. call today to request a free decision guide to help you better understand what medicare is all about and which aarp medicare supplement plan

works best for you. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. there's a range of plans to choose from, too, and they all travel with you anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. ♪ call today. remember, medicare supplement insurance helps cover some of what medicare doesn't pay. expenses that could really add up. these kinds of plans could save you in out-of-pocket medical costs. you'll be able to choose any doctor who accepts medicare patients. and there are virtually no referrals needed.

so don't wait. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. this easy-to-understand guide will answer some of your questions and help you find the aarp medicare supplement plan that's right for you. the cnbc fed survey is out, and steve has the results. >> thanks very much. take a look at what the expectations are for the federal reserve and their policy meeting today. there we go.

thanks very much we call them fed-specitations. they say the rates unchanged 96% say a rate hike is coming. and three rate hikes on average seen for next year with the average funds rate going up from about 1.4% up to 2.1%. that has a bearing on the outlook for yields here when we look at the average ten-year yield that's forecast. 2.4% right now 2.54, so not too much to go. call it 24 basis points by the end of this year and then up, we'll get above 3% according to this group by the end of 2018. how about the stock market i have to tell you, this group, the people who responded to this have been chasing the market all year long. their forecast ends up too low and they raise them, maybe now they're getting ahead. they see modest gains of 1.7% this year and up an additional

3.5% by the end of next year one reason for that is they now don't think the market is too optimistic when it comes to the policies of the current administration not sure why that is here, but here we go, 2.25 this is the gdp forecast 2.3% this year, and then 2.45 going up to 2.6% in 2018 and then the those who thought it was too bullish, 49% now say the market is not too bullish, realistic when it comes to the president's policies i am more encouraged on the cyclical outlook with the pickup in capital spending and the partial recovery in profit margins. however, much hinges on the successful completion of corporate tax reform and hank smith, ceo at haverferred, said the stock market is in a happy zone when it's focusing on things that matter, low inflation rates, improving gdp here and globally, and rising profits and sales

so pretty good results here. they're looking for a little more when it comes to the stock market and a little more when it comes to interest rates. carl >> a good setup for what we might hear tomorrow, steve thank you. >> let's get over to sue herera and get a news update. >> good morning, carl. good morning, everybody. here's what's happening at this hour president trump blasting former campaign aide george papadopoulos saying he has already proven to be a liar. papadopoulos has pled guilty to lying to fbi agents about conversations with people claiming ties to russia and offering dirt on hillary clinton. he has since been cooperating with authorities >> at least three people were killed after a suicide bomber carried out an attack in central kabul near the u.s. embassy. 15 more were wounded the target of that attack was not immediately clear and no group has yet claimed responsibility >> at a news conference in brussels, catalonia's ousted president said his team will continue their work despite the

limits imposed on them his remarks come as spain said they're ousting the vote to declare independence >> here at home, dallas cowboys running back ezekiel elliott's on again, off again six-game suspension is on again late last night, a judge denied a request for a preliminary injunction that would keep him playing for the rest of the season the players association and elliott have the option to appeal stay tuned on that one that's the news update this hour carl, back downtown to you >> all right, sue, thank you very much. >> when we come back, the first reviews of apple's iphone x are out ahead of the debut on friday one of the first four original iphone reviewers ed ba wigill join us to talk about the franchise. stay with us the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss

when you have the right financial advisor, life can be brilliant. ameriprise

this morning some reports that apple is designing future versions of iphones and ipads that will not

rely on qualcomm components. that comes after an extended legal battle between apple and qualcomm apple reportedly considering chips from competitors like intel or media tech, and that would move a decade-long partnership between the two companies. apple stocks coming off that all-time high. $167.84, as we talked about several times, sara, not too far relatively speaking from a trillion dollar market cap >> it strikes me we had all those rumors and speculation about the parts suppliers. it was all apparently nonsense is the first word we're getting from the demand for iphone x is stronger >> never listen to the supplier leaks, whether they're bullish or bearish generally, if there's talking, they're not close to apple as they might seem. >> the qualcomm story is interesting because we spoke with our reporter on the ground in china this morning who talked about the demand there tim cook actually in china meeting with president xi this week to help launch this phone their y're apparently obsessed t

the new emojis >> the face id passes the test and that the emoji technology is an addictive feature of the new phone. ed baig is with usa today and he joins us here today at post nine good to see you. >> good to see you >> you say the x has generated more palpable interest than any iphone since the original. >> i think that's true there are a few reasons for that number one, they ditched the familiar home button first time in ten years. number two, face i.d you can unlock the phone with your face. no more touch i.d., and number three is the price $1,000 iphone and up it just, putting four digits there, i think, gets people like, whoa >> what am i getting >> yeah. >> let's start with face i.d flying colors. as you say, it pastsed the test >> i tried it with a number of people in my office, male, female, different ages i tried it with my 10-year-old

son. worked with him, with me, worked in the dark. i read a few people had trouble in bright sunshine so far, i have not been able to have it not work, including trying a picture and see if we could trick the system >> you haven't had as much time with as you have prior models. >> that's correct. apple gave us less than 24 hours on this one. normally, i have quite a bit longer >> are there things you're still curious about? >> i want to try face i.d. more. again, i read some reports, some people had a few issues even though i haven't i want to test out the battery apple is claiming two hours longer than the iphone 7 we'll see. you know, unscientifically, it seems fine, but we'll have to see. >> do i need it? do you need it >> need is a relative term, especially when you're talking $1,000 do you need it if you're happy with your current phone, youdon't need it does it mean you won't want it i want it. do i need it i could probably live with the phone in my pocket now >> just wondering on that question of how many people will

upgrade. >> well, judging by preorders, it seems a lot of people are, you know, certainly going for it now, we have heard, of course, the reports of supply shortages and such i think you just anecdotally, people are constantly asking me about the x. >> and emoji a gimmick, a toy for the young inwho needs it >> a toy for all ages. honestly, it's goofy you can actually, and i sent a pile of poo representing your alterego, i guess. it's mimicking your face it's actually literally, you talk, the anemoji talks. you raise your eyebrows, you brink, it responds in kind it's goofy but addictive, i suspect after face i.d., it will be the number one thing people try. >> is it a reason to, for samsung users to go with apple how far advanced are these technological features >> now you're get nothing to the religious thing. android, ios

i don't think anemoji is a reason spich, but if you're in the iphone camp, you'll like it a lot. and by the way, you can send those from an iphone to an android phone. >> given all the toys you get with the x, what's the argument for the 8, other than the $200 discount >> well, that's one thing. it is cheaper. it's got an excellent camera it's a real a nice smartphone. had that been the phone, we did give it decent reviews wireless charging, which the x also has a very nice phone. but it's not an exciting phone it kept the design pretty much where the design has been for the last several models. so it's a nice phone this is dramatically different though >> does this give you a clue as to what the 20 is going to look like we had this discussion a bit yesterday with steven leavy. >> i suspect this is -- apple now is putting out this message. let's look now to the next ten years. i think probably the fingerprint is probably going to disappear

on future models one thing i hope they get rid of, i don't love this notch here i don't know if you can see that it's kind of a blemish on what's an otherwise really nice looking phone. >> what is that? >> it's covering up the camera system that's used for face i.d. and the emojis and such. i think design wise, i don't particularly like it i know other people haven't particularly liked it. >> is there anything within the apps or the technological features that will help apple sell other products, complementary products like the watch, the eco system? >> it will make nice with your watch if you have one. of course, all of this is about bringing you into the ecosystem. it does run ios 11, as do, you know, iphones going back a couple years in that sense, it's the same software you're going to get with the other iphones the difference here, though, without a home button, you're having to learn some new navigation again, not difficult, but we're all trained to do it a certain way. and your muscle memory is such

that there is some new behavior you'll have to learn >> overall, as they segment the market into smaller and smaller pieces, do you see that as a positive for the company or is it potentially confusing for consumers given so many choices? >> there's more choices than usual for apple. which is always kind of kept it relatively small you know, they'll tell you, we now have an iphone at different price points i guess that gives choice to people that's not a bad thing there aren't so many models that i think it's going to be overly confused i wonder how many people are buying the 8 i guess they'll have their earnings this week maybe we'll get a clue on that >> we look forward to thursday ed, thank you for sharing it with us. >> i don't know what it says about you that your animoji is a poo emoji. i think i would choose a different one. >> let's check on where we stand in the markets here. we are in rally mode just a bit after yesterday's selloff. dow's up 13 points

s&p is flat. some of the strength we're seeing in groups like consumer staples, telecon coming back technology also strong later, stick around for "squawk alley. the always outspoken jonathan bush joins us with his thoughts on the potential cvs and aetna tie-up and how the health care industry plans to deal with the looming amazon thrt. resqwkn e reet" right after this

that's how much market cap apple has added in just the last month. so, should you buy apple stock ndto its earnings? fi out at tradingnation.cnbc.com

shares of rockwell automation have reopened, this after our report this morning of a $215 stock and cash bid that had been made by emerson electric to acquire the company,

which had been firmly rejected boat sides confirming our reporting. rockwell saying, yes, it did receive the bid. in fact, a couple bids one for $200 one for $215 emerson also saying we did make a private offer. we're not talking to them right now. i can go on and give you insight from the rockwell side people close to the company indicating to me they believe these are two dramatically different companies that would not do well combined they point out that rockwell has outperforming emerson in terms of total shareholder return over any important time period of late, and they say that they believe that emerson has a poor track record when it comes to mergers and acquisitions, particularly with integrating the companies, all of which led to concerns on their part as to whether there would truly be value correlation giving 50% of the consideration is in the form of emerson stock by the way, rockwell does have a staggered board of directors the inability to call a special meeting of shareholders, the written consent making it more

difficult should emerson want to launch a truly hostile bid let's get to rick santelli and get the santelli exchange. rick >> thank you i tell you what. this is kind of like a major bout with my guest jim beonco. in this corner, i like low rates. president trump. in this corner, i like independent thinking jim, this is a mega battle and you framed it up pretty much that way as well let's explain to viewers what we mean >> we mean that the federal reserve board is made up of 12 voters seven of them are governors. they're apoirnted by the president, approved by the senate >> three vacancies, by the way >> that's when they're full. let's look at the last 25 years of governors voting. only one governor one time has ever dissented >> and he's a friend of cnbc my guest frequently. >> mark olson, september, 2005 that's it in the last quarter century. >> that one almost doesn't count. that's a roger maris asterisk? >> he was dissenting because of

hurricane katrina. the wasn't an honest dissent at that point now, if we have trump put in an independent businessman and look at randy quarles and his not so nice things he said about kevin walsh who could have been his boss if he gets appointed, which is a break in fed protocol, we could have governors raising their hands and dissenting in meetings, something i think the fed should have. >> you think the president like john taylor may not be fed chair, but he's going to be there somewhere, maybe vice governor >> and taylor is not going to be there to agree with everything the chairman says. >> do you think that's a bad thing? i have always kind of framed it as everybody's thinking the same whether it's politics, even on social issues, everybody needs to go exactly the same if you march differently, you're hung out to dry, so to speak is that a good way do we need yes people on the federal reserve board? >> absolutely not. it would be excellent if the fed

shows independence the bank of england has 5-4 votes. japan. >> it's not unusual, not picked apart by the press it doesn't make market participants nervous >> the fed believes they have to show confidence with a 12-0 or 11-1 volt. could be the legacy, going to get independent minded people and they could pull him more hawkish than oertherwise, reducing the balance sheet, raising rates. >> listen, jim, you're a smart guy. try to divine what president trump is thinking. i told you in the past i like low rates really gets me i don't think it's a good thing to say as president, but do you really think he could move more towards the independent side of the equation your final answer. do you believe this could happen >> he's doing it with rex tillerson and other people he's appointing to other positions. maybe it's time to drain the fed swamp. >> do you have a pick personally you think is going to be chair

>> paul. >> vice chairman taylor? >> could come thursday in a meeting. >> jim bianco, thank you sara, back to you. >> rick, stay with us if you would for a moment we want to bring in our other chicago pal, phil lebeau, who told us you throw one heck of a halloween party. >> well, i think phil lebeau certainly helped make it one great halloween party, that's for sure >> fred flintstone and, rick, you're barely recognizable pirates of the caribbean >> yeah, it's jack sparrow, johnny depp. i love his movies, that one in particular >> sara, if you think rick is passionate about bonds, you should see him when it comes to halloween. the man throws a halloween bash. >> i could tell. you would never know it's him. >> i could barely recognize him. amazing work, rick, my gosh. >> how long did that take you? >> my family starts working on next year's halloween party the

day after halloween. we have a whole garage filled and since the kids have been little we entertain their whole school when they were young. we used to have haunted woods. now that we're grown up, we moved it into the basement >> love it i'm just surprised you weren't a scary central banker or something. >> no, no, i don't want to frighten my guests too much. >> outdoing the "today" show on that one phil, back to business waymo pulling back the curtain on self-driving cars phil is one of the select few involved in inside access. hey, phil. >> this was an interesting day i spent yesterday at waymo's test facility about three hours southeast of san francisco and, yes, that included myself and other journalists getting into self-driving waymo mini van, and, yes, there was no driver there. waymo's ceo said the company is close to making self-driving cars a reality wouldn't give a time frame, but

it's clear the technology is pretty darn close and it's a matter of making sure they have the right product and the right system set up in terms of when it actually goes out there they've been testing these vehicles for eight years, accumulated 3.5 million miles on public roads they are testing in 20 cities. they have a ride share pilot program going on in arizona, so the question now becomes, if you are waymo, where do you market this how do you bring this to market and make money off self-driving vehicles ride share firms, trucking and logistics, public ride services, and, finally, private cars you or i might buy a self-driving vehicle, but that's likely down the road if you look at shares of google, keep this in mind, everybody is racing towards bringing self-driving vehicles to the market i've driven a number of these, ridden in a number of these vehicles waymo, in my opinion, probably more advanced than anybody else

in terms of the technology and the passenger experience the question now, when do they actually bring it to market? >> phil, you covered transportation for us for so long the fact that you're in silicon valley covering this stuff says a lot about where we're all headed >> it does >> look forward to hearing more. phil lebeau at one market. dos up 17. back in a minute don't go away.

not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. whether it's connecting one of or bringing wifi to 65,000 fans. campuses. businesses count on communication, and communication counts on centurylink.

final day of the month dow and s&p trying to close out october with their best months since february utilities and telecom are leading after gglaing most of october. more "squawk on the street" continues in just a moment opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host.

when you have the right financial advisor, life can be brilliant. ameriprise

welcome back to "squawk on the street." i'm dominic chu. tech having a breakout, leading all sectors. on pace for its best, chip makers a big part of the story check out what's happening with all of these guys, 17-year high going back to the tech bubble. that does it for this hour of "squawk on the street. let's send it back downtown for the start of "squawk alley." guys, back over to you >> dom, thank you very much. good morning it is 8:00 a.m. at qualcomm headquarters in san diego, 11:00 a.m. on wall street.