we have no time. >> no time >> anyway, thank you, melissa. make sure you join us tomorrow "squawk on the street" is next good wednesday morning i'm carl quintanilla futures are up on this first day of the month earnings from facebook and tesla tonight. auto sales on the hill again and we'll watch for developments at last night's terror attack in new york city. bonds are in focus we'll get ism in about an hour

a delayed tax bill gop leadership in the white house putting off an announcement on tax reform as wrangling over how to pay for it continues. and tech is back on capitol hill for their role in the 2016 election and russia's role we want to bring you up to speed on yesterday's deadly terror attack. contessa brewer is in lower manhattan for us >> reporter: good morning. investigators are looking to see whether the suspected attacker had scouted this area in particular ahead of time or was he familiar with it because he was an uber driver sayfullo saipov left a note inside that rented home depot truck proclaiming isis lives forever in arabic. it was a home depot truck that he rented in new jersey.

investigators found at least one knife in the truck law enforcement believe saipov acted alone mowing down cyclists and pedestrians for 20 blocks. it's a very popular park path. and it ended, this attack, with a crash into a school bus very close to the world trade center near an elite public high school and an elementary school we now know that he emerged from that truck shouting allah akbar and waving around two guns that we've learned were a paintgun and pellet gun an officer ordered had i am to drop the weapons and when he didn't, the suspected attacker was shot six people, all men, pronounced dead at the scene. two others pronounced dead at the hospital and there's roughly a dozen people still in the hospital recovering from their injuries five of the dead were argentinians celebrated high

school graduation. what they know about saipov, they were able to question him and he proclaimed pride in the attack we also know that a review of social media shows that he had been reading isis propaganda online neighbors say that saipov from uzbekistan lived in new jersey with his wife and children they are interviewing his wife and they were from the same town in uzbekistan. the president tweeting out that saipov came to this country on a diversity visa lottery he says he wants to roll that back and wants merit-based visas to be back in play there is pushback right now. >> it has ignited a back and forth between the president and chuck schumer specifically contessa, thank you. by the way, the new york stock exchange will have a moment of

silence for the victims of the terrorist attack at 9:20 strong open to kick off november after the dow and s&p finished october with a seventh straight monthly gain all three indices posting their best month since february and we're back, jim, to talking about november seasonality which is historically one of the best for the dow. >> yeah. we went through the gauntlet september being the worst month. october, we know historically as a crash month and a lot of times when you get through the gauntlet, it's smooth sailing for november and december. one of the reason that the futures are up is make it through august and september, q4 is up 81. >> announcer: >> yeah. and i tend to not like calendar posting but it is a breathtaking

bull market. i started last night's "mad money" by saying, listen, it's almost as if we've all coalesced to say we can't say what i said at the top it wasn't even a rotation yesterday. you were up at the same time that you have the industrials up and technology stocks up and at the same time you have a lot of the interest rate stocks up and the only thing left out is some of the drug stocks that's what it was like in the '90s mutual fund money when money just flowed in over the weekend, and these stocks are household names. >> when you hear the '90s i always think about 2000s. >> oh, please. >> wait a second of course there are a lot of differences, including the p.e. lower. although, it's not low >> no.

>> but it's over 23 times, some people say >> and it depends on how you measure. >> i'm just saying that these are companies who are real earners. >> they are. let me give you one statistic, gdp to over capitalization is as high as it was in 2000. >> i like that stat. >> if you look at it, it's now 130 or 140% of gdp, whatever the number is, but it's as high as it was in 2000 and i'm hearing those illusions made more often. it's funny when i hear you mention the '90s because we all know how it ended. >> right but you see it was -- >> the nasdaq. >> okay. let's say it's a 40-hour movie you know, hour 20 it's still got a lot of head. >> is that what you think this is, hour 20 of a 40-hour movie >> lord of the rings 2, which i loved. >> i don't remember that one. >> okay.

what are they up to, "star wars" 9? >> "star wars" 6 >> this is like "star wars" 2, the wrath of khan. >> satisfactory tve the whales >> that was star trek. >> so maybe start on episode 3 we can easily play this 2000 game 2000 was a bridge too far of which there was great work as a polish general. >> and when he says, "what have i done," is he saying it positively or "what have i done?" >> no, he's saying, why have i built it in the first place. >> taxes are increasingly part of the conversation. today was the day that house republicans were slated to

release their tax reform bill. their rollout has been delayed until tomorrow, they say, as lawmakers look to finalize key details and urge the house to pass tax reform legislation by thanksgiving budget share says they are putting finishing touches on this but there's question about 401(k), corporate phase-in, estate tax it appears to be in flux. >> don't we think that the democrats, if you don't cut the rich bracket, which i think was really a sticking point, don't you think they have to come around to say -- >> so the top bracket remaining of -- >> i think that's going to attract democrats. >> you do? >> i do. i think the democrats were afraid to vote for a pay cut for the rich. >> now, what will pay for this other than the nondeduct built of the state and local income tax. >> that's why i don't think

you'll get tax reform. they don't have what to pay for it. >> no, they haven't. that was gone by the spring, i guess. >> and then you have rigid republicans in the house that i think are going to veto something that doesn't pay for it. >> you do? >> i do. >> and how you crack down on that >> right >> what was it going to pay? >> at least two. >> keeping the tax bracket at 39.6 for a million and up, 200, maybe? >> the optics were really bad for the democrats. they had to get this >> some of the reports are floating the idea that corporate tax, whether or not it's phased in, doesn't remain permanent >> ten-year sunset

>> yes. >> i guess they can do that. i find there are almost no companies that i talk to now that expect much >> really? >> that think a lot will happen? >> no. and i deal with a lot of 30 to 34 percenters and they say, look, it's not in their numbers. >> did you hear jack lew this morning on "squawk box"? >> from 26 to 20 is where it gets more difficult to pay for -- >> look, a lot of the restaurants are in the 30s and now they are coming down i think they haven't thought this through they say they are going to hit them with the big tax bill and, of course, the president likes to use the word "massive" because it's one of his favorite words and i like to see how they -- give me a couple pieces

of substance honestly, does anyone have any real great knowledge of what's in there >> just, to me, they went from an effort to really cut the corporate tax rate for purposes that makes sense to keeping companies here and getting it to invest more here to all sorts of things that make you contorted >> yes >> and i wonder about that overall. >> you want to kill something. you make it that complicated when they were doing tefra, i remember there was six months of trying to get gold coins trying to convert mr. fisher, that great museum all the way down in the keys and it was just too hard at one point reagan just said to tip o'neil, would you just solve this but there's no tip o'neil here

schumer? >> if it was schumer before this morning, it isn't now. >> before this morning >> yeah. >> we'll find out. hopefully we'll get that legislation tomorrow. when we come back, ford is coming out with auto sales we expect numbers in the next 20 minutes or so. futures are up we're back after a break throughout my career, i've been fortunate enough to travel to many interesting places.

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it's a big day for numbers we'll get to ford numbers here in a moment. facebook and tesla, we'll get to adp that came in hot ism in about 45 minutes. >> keep with that story, that you need the rate hikes a year ago. you see these numbers and you're ready for a rate hike. >> yes we'll find out. >> here's ford let's get to fiphil lebeau. >> good morning, carl. up 6.1% for ford, better than the 5.1 estimate f-series sales up 15.9% last month. we knew there would be payback from the hurricanes. look at the transaction prices up nearly $4,000 to $47,000 for some of the f-series

fiat and chrysler down 13.1% they were expected to be down 10%. we get gm in about 15 minutes. >> phil, thank you see you in a few he mentioned hurricanes which clorox mentioned >> what's interesting is that yesterday, the last two downgrades of gm talked about ford's resurgence and you look at ford's stock that has done nothing. this could be the beginning of a move for ford. we've got to see how they are doing overseas but it's quite impressive and i think the f-series is doing well remember, small business loves the f-series we have a lot of small business, good news. so maybe ford is going to play catchup here i know the last quarter was terrible so there's a lot that has to go right but it is interesting. it's very good it could be the beginning of something. we kind of hope so because, holy cow, it's probably the worst

stock of the s&p that is a major company. >> really? ford >> lowest p. >> not the worst >> valued the lowest >> no, not the low >> it has the lowest valuation >> we've got to go >> we've got to go. >> i want to make sure people understand what you were saying. take a look at the futures they are obviously up. we get the opening bell in a few moments. don't go away. what powers the digital world. communication. that's why a cutting edge university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep their dealer network streamlined and nimble.

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the nasdaq is going to observe a moment of silence for the victims of the terror attack a 29-year-old allegedly rented a truck, plowed down people on a bike path, 8 dead and 11 injured in the deadliest terror attack in new york city since 9/11. here's that moment of silence.

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from brighthouse financial established by metlife. you're watching cnbc's "squawk on the street. >> we get alibaba tomorrow morning. >> it's my wife's birthday i had to postpone it. >> we can't postpone a birthday. it will be her birthday regardless. >> it's not like a tax bill. >> no. >> the day in question will still be that day. >> i was going to hold it saturday >> postpone the celebration. that's okay. >> i sent herb balloons on my ne

iphone i didn't know you couldn't po postpone it. kind of like a rain-out. >> can i just talk about fabrizio, a man who is very worldly but he could have ran procter & gamble you know that. a lot of people thought he was in line to run proctor >> he's been in charge of estee lauder and has been for some time >> he looks at every airport in the world and those dutyfree stores are doing double digit business he understands what the iphone x brings you cannot use the iphone x without using estee lauder

makeup it is dangerous. i looked at the iphone x yesterday and i said, who is that guy and then i started thinking about allergan i need botox. >> you're not going to start wearing makeup. >> no, but i'm going to get botox. with the iphone x, everyone has to get botox >> where are you going to do it? >> that's caibelo. >> it was a monster good quarter and his worldwide sales are back and i think about what would happen had he been running proctor. there's literally a laboratory where they have all of these little branches and he picks and chooses and all of his stuff is like he's running what peltz wanted and can i just say, mr. freita understands that you pay up for your iphone and uber and for

makeup and i told him that >> you did you talked to me about the selfie generation early. you were early. >> and this new iphone x -- >> you were impressed by the camera >> yes >> what's different? >> i had a zit coming. you can tell do we still use the term zit >> sure. >> by the way, at your age, that's a good thing. >> meanwhile, guys, attorneys for facebook, google and twitter going back to the hill today they'll appear before the house and intelligence committees for hearings on the russian meddling in the election. the hearings are set to begin at the bottom of the hour yesterday the attorneys were grilled by the judiciary subcommittee this is an exchange between senator al franken and facebook's counsel about political ad purchases in foreign currencies. >> you can't put together rubles with a political ad and go like, hmm, these two datapoints don't

add up >> senator, it's a signal we should have been alert to and, in hindsight, it's one that we -- >> okay, okay, yeah. >> there's a lot of agreement today that facebook took it on the chin the most. >> oh, did they ever i mean, they just -- >> it's a fair point. >> it is. >> rubles, it's a fair point >> i don't take rubles it was amazing wow. the company is run by liberals franken was his best that's the franken i was looking for. that was unbelievable. i thought they made every single point. it was very good. >> stocks are going to open at 182. >> yeah. things are going to be -- >> can you imagine something good now remember, we have the quarter and after the quarter

the stock spikes and tends to go down and the insiders sell and people get spooked and then the quarter isn't that good. >> they typically have a good conference call where you give them rave reviews. >> it's like a cross between, say, tax, which was very good -- >> that was good and "hamilton." my wife's seen "hamilton" three times. >> i would go again. if somebody took me. >> ge is going to open dangerously close to teenage levels as jpm goes to a street low. >> it is >> it gets worse. >> and keeps talking about free cash flow and the counting headwinds, lower revenue and power assumptions but it's nothing but down after that bizarre day that it went up when they reported all of the bad

news and then they give the interview. >> get this, he's having a conference call at 2:00 today. if you really want -- >> he's unbelievable if you want to buy this stock, please wait until after the conference call where he is going to rip them to shreds. >> down eight straight days. there's the bell s&p at the bottom of your screen it's vanguard doing the honors at the nasdaq. provider of enterprise software celebrating its ipo. we have forward. let's move on to gm with fill l phil lebeau. phil >> general motors is down 2.3% but the estimate was 7.3%. keep in mind, with october of last year, it was a huge month for auto sales

that said, general motors inventory, the raw number is down a little bit compared with september. 80-day supply and estimate for industry sales rate for the month, general motors believes it will come in at 18 million vehicles if that's the case, guys, it will be stronger than many people have been forecasting back to you. >> phil, thank you 18 million run rate is higher than we had been thinking. >> those are amazing numbers and explain a lot about why the rails have been up rail car autos explains why the payroll numbers are up it's good. it's all good. and ford was good. i can't find a hole in it. i just wish people got more credit because they did the retooling, the man fired from ford, he did the 150 >> you were never hot on it for the first day.

>> feeields was dealing with so many cross-currents and decided to do a major takeout of the number one product but got derailed by the spin on the autonomous car and forward thinking and he did this retooling and text the news and how about walmart today, expanding their online items three times, 3x for shopping season tripling their toy assortment, looking at free two-day shipping on 2 million products if your

order is $35 or above. >> he's a tiger. he's a tiger not unlike mike parker i've spent a lot of time talking to kevin plank yesterday and i think when you get the stock this low, the ceo of under armour, you really are betting against a man who is re-energized and realizes he took his eye off the football. so i think that stock is overtly punished much i'm continuing with what walmart is doing and knows who is weak and it goes right after and toys "r" us is -- there are a lot of people that work there. >> there are obviously they are already in chapter 11 so, you know, they had the financing in place >> yes >> to get them through the holiday season. >> get them through christmas. >> i don't know, i read that piece and said, i guess mr. lampert will have to -- they are the greatest thing and everything you've heard about

sears is wrong and it's like sears does everything and it's mr. rowbock and -- yeah. i'll see you there >> listen, we know a lot of the history here we've been following it closely for years in terms of the decline. one thing that that journal did do, though, is point out how much money esl has loaned to sears. i hadn't focused on that as much as i should have they become their main creditor in addition to becoming their shareholder. >> a rolling of the dice there. >> yeah. i think if you're a holder of esl, you wonder, why did this guy continue to be a good stock picker and value investor and everything that he seemed to be for a period of years when he was getting a strong performance? why did he have to morph into a retailer >> a lot of people want to be in retail it's a hard business. >> have you looked at alibaba?

>> we get a lot of focus on the report coming in tomorrow. >> yeah. and the stock over the last year to date, year to date -- >> it's incredible. >> that's incredible some companies go up and you look at their stocks and facebook and universal display, all of that. >> yeah. >> and the new technology behind apple. >> sometimes people forget softbank, it's worth mentioning, we talk about softbank in relation to sprint or anything else they might do the value of their alibaba position has gone up at softbank, which is important. >> and a long-term view. >> it certainly helps. it helps >> these people are so rich. these companies, they have so much money what did they do over in japan

did you see sony's numbers >> sony reported fabulous numbers. >> streaming, also, which is -- there's a whole thesis and a huge beneficiary of streaming and don't forget spotify >> i'm not kidding, artificial intelligence. >> yeah. >> you know what was the best quarter of yesterday, it reported no one paid anything from samsung all you read about are these executives being fired read samsung's quarter they can't meet demand for these important chips and for flash and that's why micron broke out. >> under armour has been the worst of the quarter >> yeah. >> we have some towel throwing on under armour. ge duked it out and gave up a hit of 1990 and change. >> remember the 2:00 conference

call, it's going to be curtains. target of 17 so far this guy has been right, down from 19 i guess it goes to 17 because it's like the ceo of ge. >> you know, he's getting his profile up as much as he can and wants to be number one maybe he is. i don't know >> he's been right jeff immelt. >> 1999 was a good year. that was the year before the crash. >> want to get to rockwell again, guys, it's worth following up no conversations going on. it was yesterday, of course, and we told you about the most recent offer of $15 and cash that had been firmly rejected and both companies came out yesterday after our reports confirmed on both sides that that offer had been made there are no conversations going

on right now but, as you might imagine, the key is, do you get rockwell shareholders in enough of an up roroar to say, come on guys there's enough value for us. and as i also reported yesterday, it's worth mentioning again, people close to rockwell say a number of different things they see these as two emerging companies, very different. they don't necessarily believe emerson's currency, that the stock price is worth taking. they see this as something of a, quote, hail mary pass by the ceo of emerson and so they are firmly in the "no thank you" camp the question is, there's a belief that there are other potential bidders. you have siemen's and then here,

will honeywell have any interest >> absolutely. with the splitoff, you can figure out which division it goes with. and he's got a great balance sheet, by the way. >> and finally, analysts weighing in. deutsch bank says something is wrong with emerson no intention of emerging with emerson and nor does rockwell feel compelled to find an alternate suitor it would be hard for emerson to be hostile they missed the annual meeting in february at rockwell. so there's not really a great path there but scott davis, that's a name i remember, scott davis. >> sure. >> he says, with all due respect to the rockwell folks, this could be the type of transaction that rockwell needs to move to

the next level and you have differing opinions. >> eaton would be a nice opinion for them and i don't know if you read this, but they had a quality problem with cummins and they did a deal and combination, and cummins coming back today. the truck business is so strong. these plain vanilla businesses where the year-over-year businesses wreaked like when they had big new trucks. of course, the drug companies have no big drugs and the truck companies have big new engines >> are you saying it's a pipeline story >> it's a pipeline story they have all of these great new engines and china needs them it really is incredible.

by the way, just now, allergan, brent saying that he's not going to break up the company. obviously not breaking up the company is sending the stock dramatically lower >> how is the quarter? >> the quarter was in line but the breakup was meant to propel them. wow. this is bad. well, zillow was good. >> they had a great quarter. trying to pivot quickly from drugs to companies that also have great new products. the innovation of rockwell, the innovation of somebody -- you know, partner is innovating but they said we missed the quarter because we had quality issues but we're going to fix them. it was the most transparent quarter. i have to hand it to cummins. >> we don't have an acronym for

these industrials. >> i'm on it wow. yeah, hey, it's light on some competition. >> i think the quarter was fine and they are doing -- they are going to be doing the alive game and you know, david, the games where you go watch other people play games and they did that they said it's going to be a digital quarter. ea historically conservative, those selling it now, you'll regret it come holiday time. i think the stock you sell off of that is game stock because they have really taken it to the woodshed but that company ea is not a sale down here people don't understand that ea doesn't like to talk itself up >> well, ea is down and pizza is

down the day before the quarter, he tells you that the nfl is working the business and told you it was going to report the quarter. >> explain that. >> i don't understand that. >> very big sponsor. >> they are? >> a huge sponsor. we lowered numbers he took it down from 3 to 7 to 8 to 12. there was a remarkable article in "the new york times"

yesterday that didn't get enough talk about how there's too many restaurants and not enough people going out because they are staying home but right now it looks like between lea and papa john's, the stay at home thesis is not working. >> overstored and over restauranted. >> wow >> it's a big time you know, i worry. i worry. i have a restaurant. that's why i'm worried and you know what it's like for a takeout guy? you can't give people an open beer >> dow's up 108 being led by dow dupont and goldman let's go to bob pisani. >> happy wednesday kicking off november with strong gains. we're in the middle of a global stock rally. let me show you what is going on 20-year high with the nikkei and

strong pro-growth gompments ver and japan. vietnam, nine-year high. look at europe historic highs in germany today, in norway and in sweden as well. ten-year highs in belgium and netherlands and france as well broad european indices etfs are at two-year highs stocks at 600, sort of like the s&p 500 in europe. that's a two-year high ftse, also a two-year high and earnings are doing okay in europe they are not as great as they are in the united states the stock 600 is like the s&p 500 of europe. they are up 3.5% on earnings not as good as we are but still pretty good. we have very good numbers in italy, portugal, the uk and belgian. their companies are doing well over there let's review, why is the global

market doing so well number one is the economic expansion. number two is improved earnings globally which goes along with that, obviously. here in the u.s., we have moderate fit leadership with powell tax doing well as well a lot of earnings to point out metal to mining stocks are doing well blowout numbers from u.s. steel. it's dragging the sector along with it. money keeps flowing into the market that's another factor. liquidity keeps blowing up october. $ $56 billion. more than $3 trillion under etfs that's up as much as 16 for mutual funds and the money is going into those big inflows into u.s. equity index funds, like the s&p 500 funds, the small cap russell 2000 and even the overseas like efa and the

emerging market etfs that's where the market is finally, two quick ipos, engineering software, that price is at $13 that's the high end. and argentine cement producer, 110 points up on the dow jones industrial average carl, back to you. >> thank you, bob pisani it's a busy morning for macro. rick santelli is there good morning, rick. >> reporter: good morning. many think that the bureau of labor statistics will be stronger we'll know soon enough and we also have ism and after yesterday, various in the seasons, you can call them softer indices and they are not the most quantitative. a lot of the sentiment, consumer

confidence, we have a two-year meeting and nine-year highs virtually october 2008 since two-year notes closed where they are currently sitting which is a 162 yield. if you look at one week of trends, it's lower unlike the 2s, 3s and 5s. the u-curve flattening is no surprise dynamic with a central bank that is just generally maybe turning the battleship along with other central banks, maybe the bank the england 30s minus 5s is at a ten-year flat two years, nine years, those are obviously related. let's look at what is going on with respect to foreign exchange if you look at the dollar/yen, this is fascinating, the bank of japan really didn't do anything. their currency is suffering a bit. but there was a bit of a game

going on before we all knew that now you see the dollar index and that's in favor of the dollar and the dollar in the 114 area has been crucial we've been above it but it's starting to look as it wants to escalate through that level with vigor. finally, a one week of the dollar index there's a 95 violation or 95.15, on that day we still closed under 95 took us forever to get above 94. 95 looks almost as sure especially considering the statement most likely will leave the impression of a december rate increase. so safe traders. carl, jim, david, back to you. when we come back, steve case on capitol hill in the hot seat tax reform and a lot more. dow is at 119 to kick off november don't go away. ♪

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geico. because saving fifteen percent or more on car insurance is always a great answer. the dow is halfway between 23,000 and 24,000 for the first

time record high, 23,507. up 130 led by goldman sachs back in a numite

time for jim and "stop trading. >> i have barely been able to touch on oils which are really been on fire with oil at $54 i want to focus on another company, clorox with a great quarter. what does clorox have to do with estee lauder, which is up 12 it's a little quiz passed over to be ceo affprocter and gamble, goes to clorox, sets it on fire unilever >> like when nar deli and mcnerney didn't get the ge job >> i think any one of these guys, ben odore is a genius. he uses the web to sell products and he has quietly built one of the great consumer product stories. getting good hand from mr. canalis who got out of venezuela, bit the bullet in venezuela. yeah, that's a real company. men of the world not from cincinnati. no offense to sara eisen

and none taken >> we'll see her in a minute what's on "mad" tonight? >> there's a couple losers out there. i got them i got -- cypress has been a great stock, and tom hayes has done a great job and we all laughed at him. not unlike the way john travolta laughed at sissy spacek in, remember >> carrie. >> yes we're all going to laugh otyou well, they're not laughing now, tyson. >> let's hope it doesn't come to that >> oh, man >> what's the matter what did i do wrong? >> a scary movie >> tonight, "mad money," 6 clook. >> dow, 23,500 back in a mitenu [vo] progress is an unstoppable force.

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for just $4.95 per online u.s. equity trade. fidelity. open an account today. ♪ welcome back to "squawk on the street." we have some breaking news ism october read for manufacturer remember how strong chicago was? not as big a leap here we're expecting a number north of 59. 58.7 that follows 60.8. so 58.7, well, you have to go back all the way to july, yeah, just a couple months ago, 56.3 these are still all rather lofty

numbers. let's go through the internals, shall we new orders, 63.4 sequenchally following 64.6, so down a bit, but anything with a 60 handle is pretty powerful considering we have the labor statistics at the end of the week, the employment index within this report lost its 60 handle 59.8 just a couple tenths away, but our last look was 60.3 let's go to september construction spending. we're expecting a down number. up three tenths of 1%. we did a four tenths loss of last month now stands at only up one tenth. the fallout of this is still a two-year note at a nine-year high at 162. the long end is firm but not as firm as the short end, henlts the flattening, and the dollar index up ahead of the fed's statement this afternoon >> thank you very much

good wednesday morning welcome back to "squawk on the street." i'm carl quintanilla along with sara eisen and david faber dow is up 118. halfway to 24k between 23k and 24k, and s&p up more than ten. >> our road map for the hour begins with a longer wait for the tax bill house republicans delaying the rollout of their tax proposal until thursday as the party makes last-minute changes. we'll tell you what to expect in the final version next >> the tech giants, facebook, google, and twitter testifying on capitol hill again this morning for their role in the 2016 election, what it means for silicon valley's influence on d.c. later this hour >> and finally, terror in new york city. eight are dead, almost a dozen injured after an attack in lower manhattan. we'll take you live to the scene and bring you the latest as david says, eight people killed, nearly a dozen injured after a man drove a pickup truck down a bike path in lower manhattan yesterday in what mayor de blasio called an act of

terror contessa brewer is live and joins us with more >> behind me is the scene where this violent attack happened and in fact, we're seeing the fbi coming in to this closed off street and now teams of forensic investigators coming out if i step out of the way, you can see them donning those white suits and now searching for any clues they can find in a crime scene that stretches at least 20 blocks along the west side highway here this is a 29-year-old suspected terrorist who is a native of uzbekistan he came into the country in 2010 under a diversity visa lottery we heard from president trump on a tweet this morning criticizing that program we may hear from new york senator chuck schumer on the floor of the senate shortly as well records show that safuelo saipov married a woman from his same town in ohio he registered two auto businesses in cincinnati and has associations from states in florida where the fbi is currently searching a home, to new york, where the attack

happened yesterday police say saipov was acting alone when he rented a home depot truck in passaic, new jersey, crossed the river, and in lower manhattan, drove on his recreational path for joggers and cyclists, plowing down people in his path 20 blocks south of that, he swerved off the path into the path of a school bus, and an eyewitness named anthony watched the crash and initially thought it was an accident until he saw the driver emerge with guns in his hand he said that's when he knew school children nearby were in danger >> at that point, i started pushing and telling kids, get back in the school pushing them and screaming, guy with a gun shooter, get in, get in. >> the paint gun and the pellet gun that were used were not deadly weapons the rented home depot truck was. this using small trucks mow down people is a tactic isis has been

pushing. investigators found a note in saipov's rented truck proclaiming isis lives forever it was written in arabic i did reach out to home depot this morning and got not so much a statement on the violent attack back but the requirements for renting a truck at their locations. they say a driver's license, insurance information, and a deposit on the credit card are all required the nypd said it has had multiple conversations with rental truck agencies about this threat in the last year. saipov had been a professional truck driver with a commercial license. but in the last six months, he passed a background check and had been driving for uber. uber says it will assist in this investigation however it can guys >> contessa brewer downtown manhattan for us contessa, thanks very much >> markets are up this morning all the major indices hit record highs on the first trading day of the month ubs director of floor operations

is here with us at post nine to talk about what some viewers may be wondering you have this terror attack. tax bill is delayed by a day why is the action so strong? >> well, new money for a new mumth. that's a beginning and as bob pisani pointed out earlier, it's kind of a global celebration of the loose money that's around. you've got a big rally in tokyo. abe has the majority he needs, and he got re-elected to office. and that caused a little celebration there. so there were some worrisome things out there, but the market is not concerned i mean, i expect that washington is going to be an absolute cauldron of rumors between now and the weekend. the president is going away for a week in asia a lot of rumors popping up already. but again, none of them have affected the market. it's a lack of details here. and until we get that, i don't think things are going to kick in so far, all we've got is a delay

on the tax bill and nothing much beside that. >> thoughts about november seasonality? q4 seasonality >> i think it's there. repeating things, you even go back to the terrorist event that was a rental truck, if you go back to the original bombing of the world trade center that was done with a rental truck blown up in the basement, so these terrorists find a way to get things done much of what we see in wall street is somewhat repetitive, but to the repetitive, november looks like a pretty good month it's certainly starting out that way. >> though october and september were supposed to be horrible and they turned out to be very strong months. you pin the global rally, art, on easy money. but it's more than that, isn't it it's really the synchronization of the global economy all working together something the imf talked about, why they raised their forecast something you can see apparently in the consumer staple earnings. we talked mondelez yesterday

today it's chlorexand estee lauder real sales growth coming from north america, asia pacific, yourm, all sort of working together for the first time. >> you're right about the consumer staples they have been an absolute standout over the last couple days in fact, they led that rally that we had yesterday. and i think that was another thing. it was more of a consolidation day of pause, and now you're going in, new money for the new month. you've got generally easy money around the globe, and as you say, there are no particular weak links the amazing thing is everything is holding up together the biggest question mark is can china sustain the kind of growth that it's seeing but so far, everybody is kicking in gear. and it looks like it's going to be a pretty good month here. >> is the market set for powell? everything assuming we get it on thursday >> yeah, i think anything else would be a bit of a surprise and see where we go.

there is some outside feeling that he may try for multiple appointments there are several vacancies. >> they have said not to expect others >> but, you know, he's in the business of surprising >> what about a powell/taylor vice chairmanship? what does that look like in terms of policy and market implications >> i think in terms of market implications, it's a little less bullish than powell alone. but not particularly negative. they think that taylor may in fact be rethinking the taylor role even as we speak. >> last hour, we were talking to jim about where it feels like where we are in the course of this bull market closest analogy he came to was the mid-'90s where you had big money flows on mondays, for example, just coming in over the transom. wasn't yet about momentum, per se, in a narrow band of tech companies. do you agree >> yeah, i think that's a reasonable analogy

there are some other troubling signs, and i wrote in my comments this morning that the bulls to bears ratio is the highest it's been in 30 years. and we keep talking about this as the most hated bull market in history. and it's got the highest bullish ratio in 30 years. not quite happening. >> art, thanks see you soon >> when we come back, this morning, changes being made today to the gop tax bill, as republicans delay the rollout of their proposal until tomorrow. kevin brady tweeted out a picture of himself we'll talk about that. former director of the national economic council for president clinton and obama gene sperling win join us with what to expect when we're back in a moment. 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

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house republicans delaying the rollout of their tax proposal until tomorrow. our ylan is in washington and she joins us with the latest what are the last-minute changes and disagreements, ylan? >> the fundamental question here is whether the bill is just delayed or whether it will be derailed house ways and means committee chairman kevin brady said lawmakers are making progress on this bill. he still wants to debate this in committee and then vote on it next week. and if you see that timeline start to slip, i think republicans will then get really nervous about trying to get this passed on the house floor before thanksgiving or perhaps even at all. so there is still a lot that is in flux here, but here's what we

think we know so far about what's in the bill two sources are telling me that the corporate rate will no longer be phased in. it will go down to 20% immediately. now, this is something that markets were clearly against as well as conservative groups such as heritage action and americans for prosperity still unclear, though, what happens on the back end. if this corporate rate reduction is temporary or if it's permanent, and if it does expire, how high it might eventually go. now, republicans are also planning on keeping the top individual rate at 39.6% but the income levels that are associated with that are still under negotiation. we're also hearing that the estate tax will eventually be phased out but that one won't happen right away the big hold-up, though, in this is still how to handle the state and local tax deduction. not all republicans are sold on this idea of keeping the property tax deduction but getting rid of the one for

income tax so guys, right now, republicans were supposed to be meeting across their party today to discuss all of these changes that has been postponed until tomorrow as well i think what you're going to see instead is a lot of behind the scenes maneuvering back over to you >> what about pass-throughs? do we know anything about how they're going to be treated under the lower corporate rate >> not a lot of information there. the 25% rate for pass-through businesses still appears to be in the tax bill. the big question there is how are they going to write the rules to insure it doesn't just become a big loophole for the wealthy. that is still undetermined >> all right, ylan, we'll see if they can get it done by tomorrow ylan with details of the republican plan. for more on washington's tax reform efforts, we're joined by gene sperling, former national economic council director to presidents clinton and obama and maya macguineas. president of the committee for

responsible federal budget welcome to both of you gene, as ylan reported, they are keeping the top tax bracket where it stands at 39.6% and phasing out the estate tax gradually. does that mean we could see more democrats support it >> i don't think it's even a close call i mean, yes, it's better that they're keeping a top rate, if that happens but they're still going to get rid of the estate tax and just to be clear, that only helps the tiny number of people who have an estate over $11 million couples that have an estate over $11 million. think of that. even if you were going to leave $10.5 million to your heirs, you right now pay zero taxes so this is -- this is still a tax cut that's going to give over $200 billion just to estates over $11 million as you just mentioned on the show, you're still trying to

afford a pass-through rate which in a lot of ways doesn't make as much sense because over 90% or 95% of the people who are actual small businesses right now would not benefit from this. so you're going to see that this is going to be evoverwhelminglya very expensive tax cut for the 1% they have given themselves the ability to increase the deficit by $1.5 trillion i have never seen either party put out a tax plan where they say it's okay to increase the deficit by $1.5 trillion, and they still can't make their numbers work they're still looking to do a mother of all gimmicks on the 401(k) they're still struggling so this is a tough sell to their members. but i think even if they get through that, it's going to be a tougher sell to middle-class americans. >> maya, we haven't gotten to salt i wonder if you think brady has cooled the fire on that front. >> well, i think there's going to be a good deal of resistance

to all of the reforms to the big tax breaks that are necessary to create a real tax reform bill. so the problem here is that we have over $1.5 trillion every year in tax breaks and for each and every one of those, salt is a great example right now, there is a massive constituency and a huge lobbying force between -- behind protecting the tax breaks. what i don't think has been made well enough to the american people is the case that every one of these tax breaks involves one group of people subsidizing another group. in the case of the state and local tax deduction, for instance, people who live in lower tax states who presumably are getting lower benefits because they're not paying as high tax local and state taxes, have to then turn around and subsidize people who live in higher tax states who are getting more education or health care, whatever things those taxes are buying it's not at all clear that that's a fair policy it's certainly in many ways the home mortgage interest deduction, the health care

explosion. in many ways subsidizes things where it puts capital in places that don't always make the most sense. there's such a strong constituency, it's hard to reform these, and it's absolutely necessary that we do so to pay for this tax bill. and the key is making this tax reform not tax cuts is what will help promote growth in the economy, which is the real reason we're doing this. if this is this big budget buster and does add -- they're going to put in budget gimmicks, it could add $2 trillion or $3 trillion, that's going to undermine growth and that's the purpose of tax reform. >> maya, as one of the people on this desk, of course, is going to be paying or not being able to deduct state and local income taxes, you can imagine a lot of us have something to say about it, but will you hear from the politicians who are going to vote on it in those states and the republicans as well is typically that, well, we give a lot more in revenue to the federal government than we get back in services to your point of subsidizing,

they respond it goes the other way as well. >> that's sort of a different point. we have a progressive tax code where the states with richer taxpayers do pay more to the federal government it's sort of odd that we turn around and ask some of the states that tend to be lower income states to go back and subsidize. i understand i live in a high tax state everybody wants to have as low a tax bill as possible, but i think the point is that giving tax cuts or having these subsidies that exist when we already have a huge deficit and congress has proven itself completely unwilling to cut spending is going to make things worse. and the real gain is, can we create a tax reform bill that will grow the economy, which will actually grow wages and do so in a way that benefits people more broadly that's better than a short-term tax cut that will have to be offset down the road because it will add to the debt a real improvement to the economy is how we should structure the tax reform let's look at the big picture, getting rid of tax breaks for smart tax reform would be really worth it

exploiding the debt, i would say, is not the right way to go. >> what i was going to say, it also completely falls short of the president and republicans' promise for once in a generation tax overhaul a la ronald reagan in the '80s, if we just get the individual and corporate cuts. gene, question on the timeline what ylan laid out, there are a lot more things that we don't know in the plan than we do at this point we don't know the child tax credit that's something that ivanka trump and republicans are pushing for. we don't know what the individual tax brackets are going to be. we don't know the pass-through rate we don't know the repatriation rate if they do manage to figure it out in the next day, and we do get the plan tomorrow, then that leaves ten legislative days on the calendar before thanksgiving, which is when they want to pass the bill. is this realistic? >> i think my opinion is that they were on a track to get it done by christmas, you would have had a feel that this was much more precooked.

and you don't get that feeling at all right now and look, i just think that fundamentally, they're going to have problems because i think people are looking at polling. they're looking at the fairness. and they're just worried, you know, the reason they're having trouble selling it to their republican members is that even the republican members are worried they can't sell this back ome i mean, you know, that's a nice conversation you're having with maya about future reform, you know, tax expenditures, but how does a republican congressman in california, new york, or new jersey say, hey, i've just agreed to essentially raise your state taxes by 25% to 35%. i'm going to essentially give this huge hit, and by the way, the money is not going to really give you a lower tax cut it's going to maybe over $2 trillion in tax cuts to do a 20% tax rate for large corporations who have not been giving raises when they have had profits in the past it's going to give a big

loophole to people who have pass-through income. it's going for things like an estate tax this is the problem. this is not serious tax reform that benefits the middle class so you can understand why even these republican members in these states like new york, new jersey, and california, are saying you're asking me to vote against my -- the -- my constituents i can't sell this as a middle-class tax relief, and they can't >> all right we have to go, but i'll give you guys a chance just to put some percentage odds on, say, completion by the end of the first quarter. gene what's the number? >> i'll give them 50% because they are so desperate. i have never seen this kind of desperation. that might increase their chances of some passage, but it dramatically increases the chances we're going to see something messy, ugly, that ends up increasing the deficit by over $2 trillion and will be used as an excuse to cut medicaid in the future

success may happen, but it won't be pretty. >> i would give high odds they'll get something done, tax cuts in all likelihood that's the unfortunate part. 75%, 80% they'll get tax cuts. lower odds it will be real reform reform is what we should have. that can grow the economy. the point is the timeline doesn't matter nearly as much as getting it right i encourage them to use this historic moment to do a responsible, paid-for, and pro-growth tax reform that could help us increase growth in the country for a sustained period that would be worth it >> let's see what we get, if we get it tomorrow. guys, thank you very much. gene sperling and maya macguineas >> coming up on the show, we'll take you back to capitol hill for the latest in big tech's hearings in front of the house and senate intelligence committees where next, the latest from day two of the fed meeting with the president's decision on the next fed chair on deck for this week as well. more "squawk on the street" ghafr is and respond 60 times faster. it lets you know where your data lives,

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i deserve someone who looks out for me. if you're done with complicated, so done... turn to the people who can help make healthcare easier. open enrollment ends december 7th. call now to learn more or to enroll in a plan from unitedhealthcare, like aarp medicarecomplete. [sfx: mnemonic] welcome back to "squawk on the street." i'm phil with breaking news. october sales from toyota rising 1.2% that's shy of the edmund's estimate of an increase of 2.5%,

but now when you look at all of the major automakers as we start to get these reports of last month, it looks like it's going to be stronger than expected, sara we'll get the sales rate later today, but most believe we're looking at a rate in the 17.5 to 17.8 million range back to you. >> all right, phil, thank you. keep us posted >> it's also day two of the fed meeting with the decision expected at 2:00 p.m steve liesman joins us with the latest what will you be watching for today? >> last time, sara, when we visited with the fed, it said economic growth was, quote, rising only moderately since that september statement, the u.s. has printed a second quarter of 3% growth, and it looks like the fed was right the hurricanes did not materially alter the economic outlook, so the question is whether the fed which as you know is on the verge of new leadership is thinking of a change the most modest of the change could be the fed upgrading what it says about growth and it could be the fed is feeling a

need to nudge the market to think more along its line of how much rates will rise next year at pantheon, they write, we're on alert for the possible upgrading of the language used to describe the pace of growth the market and fed are aligned on what's happening this month and next month no rate hike announced today but in 2018, the two sides go separate ways. december rate hike probability, 86%. everybody is together on that. but look at this the average number of '18 rate hikes forecast by the fomc, three. the number priced in by the market, just one the first one, you only have a 61% probability coming in june 2018 so the fed, i don't think is going to want to make waves knowing full well the president plans to announce a new fed chair tomorrow but eventually, either under this chair or the next chairman, the market and the fed are going to have to reconcile on the outlook for rates in 2018, carl. >> steve, a lot of people have been looking at number of fed chairs who completed a first

term and were reappointed, and then the track record of yellen. why isn't she getting another look, potentially? >> a lot of consternation pointing out the history, as you said, that most of them get that second term. the other aspect is that she seems to have done a decent job, a lot of economists point out. she's brought down unemployment, has a steady core pce, and i just did the counting on this, carl 8100 points on the dow since she took office. not too shabby >> steve liesman in washington, going to be a crazy back half of the week thank you, steve let's get to sue herera in the meantime for a quick news update >> good morning, carl. good morning, everyone here's what's happening at this hour the new york rangers and the las vegas kings stood with fans for a moment of silence at madison square garden last night to remember the victims of yesterday's terror attack as well as last month's mass shooting on the las vegas strip. >> the cost of california's

recent deadly wildfires now topping $3 billion that is triple the amount previously thought the fires killed 40 people and destroyed nearly 6,000 structures >> facebook stepping up its security efforts saying it will double its 10,000-person security workforce by the end of next year. facebook just admitted 126 million users nay have been exposed to content posted by russia-based operatives in the last few years >> high school students in chicago's south side got a big surprise when the former first lady michelle obama and prince harry popped in for a visit. hyde park academy is located across the street from the future site of the obama presidential center. the pair stayed for about an hour that's a great way to start your day. that's the news update this hour carl, i'll send it back downtown to you >> all right, sue, thank you when we come back, tech giants google, facebook, and twitter continuing their testimony on capitol hill this

morning. we'll talk to former yahoo ceo dan rosensweig dow is up 103. and, how's it looking? >>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.

the hill is under way. kayla is in washington and is watching the latest. good morning >> good morning, carl. we're about an hour into the hearing that has become a bruising back and forth between the two leaders of the committee, republican senator richard burr of north carolina and the democrat from virginia, senator mark warner about the insufficient controls that the companies have in place to deal with russian infiltration in opening remarks, the republican chair said the responsibility lies squarely with the companies. >> very clearly, this kind of national security vulnerability represents an unacceptable risk, and your companies have a responsibility to reduce that vulnerability. this is about national security. this is about corporate responsibility and this is about the

deliberative and multifaceted manipulation of the american people by agents of a hostile foreign power. >> while the testimony submitted by these committees -- by these companies, rather, to the judiciary committee yesterday dealt with metrics and usage, their comments today are dealing more with what they are doing about this problem facebook, for one, affirmed it would double or more than double its security engineering staff and use technology to crack down on banned content and political ads from outside the united states google making some similar claims as well and twitter recommitting to doing that as well but interestingly, these companies are not really finding that they are saying the right words to these committee chairs. senator mark warner said that the companies have been insufficient in their dealings so far, at least their early dealings with the committee and said he believes the activity they have uncovered is just the tip of the iceberg >> thanks in part to pressure

from this committee, each company has uncovered, i believe, only some of the evidence of the ways russians exploited their platforms during the 2016 election. >> it is clear that the conversation and the work between this committee and these companies will not end today just this morning, senator burr asked twitter to provide information to the committee to actually prove that less than 5% of its bots or less than 5% of its accounts are bots because he said they believe it's more than that we'll keep you posted as the hearing gets under way back to you. >> warner suggesting some studies show it might be 12% to 15%. that's a number we'll have to wonder about for a while thank you very much. for more on this, the big tech hearings, we're joined by former yahoo coo dan rosensweig, who is at post nine good to have you back. >> great to be here. >> the lawmakers seem mad. here's warner to these

companies. we frankly are blown off by the leadership of your companies do they deserve the pounding they're getting today especially >> well, my experience with these kinds of committees is they're having very different conversations than they're really having with the people that they're talking to. this is a political debate going on but there is some truth to this, which is, you know, the debate over what's a tech company, what's a media company ten years ago, that debate was we always had that at yahoo, and a lot had to do what is your multiple now it's what is your responsibility and media companies have different responsibilities than tech companies do. but the fact of the macter is these are the largest distributors of content in the world. and users cannot discern between what is content that they produce versus what is content someone else produces. and their ad targeting is actually so good you can do this effectively, and that's a problem. it does need to be dealt with. i think it's a combination of the companies doing better jobs themselves, but i also think that the government needs to

understand, you know, what is okay and what is not okay. because the political debate is not actually helping >> did you hear something yesterday where these companies, are they accepting more responsibility of what crosses their platform >> well, you had three lawyers up there so i'm not sure what i heard yesterday. look, i think that they know that this is an issue. i think that they're embarrassed than this is an issue. i think they want to do something about this being an issue. the question of what to do is hard how can you discern -- when i was running magazines, it was easy to discern what was a piece of content written by an editor. now, an ad, is that content, is that something you're supposed to watch over? what are the rules if you're inciting someone in texas to go to a rally, is tloot okay or not okay these are issues we have never had to debate before the discussion is helpful in that matter. >> it brings up a bigger question which is what are these hearings really about? are they about the russian interference in the 2016 election or just about how big

and powerful and influential these social media companies have become in our society >> my experience is it depends on which senator you're talking to so some of them are trying t make the case to the president that there was russian interference because he does not yet -- has chosen not to acknowledge it some are saying it's your responsibility of corporate governance, because they believe companies should regulate themselves and no more government regulation. some are concerned for national security it's difficult to know >> senator cruz is worried about the liberal bias of some of the people who work at facebook and other social media companies >> my experience is that technology has no bias the technology was designed to say, if you look like this, if you like this, i'm going to serve you this piece of content or this ad remember, people at facebook don't write content. it's the technology that serves the content. what you should be able to serve and what kind of targeting you should be able to do, those are worthwhile debates and i'm glad we're having them. >> these companies have such powerful business models and sail is only growing and their

power in our world seems to be as well, but the one threat is government regulation. do you think that hearings like this eventually do lead to more conversations around limits and around things that might mitigate their ability to continue to grow >> well, in this particular subset of political ads, it's not a big amount of their revenue. >> no, it doesn't, but there's a larger dialogue going on about their power. >> right, and so the question is, the challenge with technology companies is, look, the oldest one is maybe 75 years old. and the bigger you get, you think okay, you cannot be competed with. and then of course, what happens to ibm and hp and yahoo and what happened to aol. so they don't seem to stay on top forever. so i don't know that more regulation is the right decision but i do think in terms of their size, i do think that there are regulations in terms of what can be distributed and how it gets labeled because it's really difficult to discern you have so many different age groups looking at these things

with absolutely no context so i think that there's probably room for that. in terms of breaking them up, we have seen that movie before. i think they'll keep coming at them, but i'm not sure it's going to happen anytime soon >> bill gates can tell you about that from back in 2000 we have you so often to talk broadly about technology, but it's worth acknowledging cheg itself, now a $1.6 billion market release you have transformed the company, dan, from selling and renting text books to a services company, and those revenues are growing very rapidly and you're producing a lot. >> cash flow >> you're going to keep it going? >> yeah, look, we think we're just at the beginning. you know, we've had tremendous performance. our team has executed brilliantly on the transition. we announced it several years ago, almost right here, in fact, that we were going to make this transition now that we're a pure digital company, all education services, helping students pick the right school, get better grades, get tutored, get an internship, get a job, what could be more important? the fact is we have millions of

students who are seeing chegg as the primary place where they're learning and where they're able to pass their classes and get good grades. there's not enough support for kids chegg is the largest dreblth to student network. frankly, we're only at the beginning. the transition took some time. now that we're there, you're seeing accelerated growth, accelerated profits, accelerated cash flow. >> accelerated stock price >> yes, accelerated stock price. we think the stock price is a reflection of the fact people are beginning to understand, education is a trillion dollar market it's not a small niche vertical. it's not a singular for-profit college or one publisher there are 36 million students in the u.s. every year, 15% of the u.s. population, 7% of the gdp, a trillion dollars we're leading that transformation of how students learn. and the business is reflecting it and the stock price is finally reflecting it. >> do investors think of you as a college story? and if so, is it increasingly a high school story? >> it's increasingly a global

story. which is initially, we rented textbooks to college kids because high school kids got theirs for free. since that business has become a small percentage, now it's about what college do you go to, homework hem, tutors live online >> in an attempt to get into a college. >> or to get skills to get a job. this is about the education and the skilling up of today's students so that they can get into college, pass it, 50% of kids don't pass college. chegg students pass it at a higher rate. they graduate faster these are the kinds of things we think will transform, helping students get educated regardless of what goes on in the political world. we see millions of students coming, we have 10 million visitors a month now we have millions of students subscribing to our digital stuff, which we didn't even have four years ago when we came out and went public. i just think this is a massive marked investors are beginning to see that, and we just believe we're at the beginning and we couldn't be more excited. >> good to have you here, as

always >> speaking of facebook, the company's actually set to report earnings after the bell this afternoon. the stock has been pretty strong going in julia joins us with what to expect on these numbers. morning, julia >> good morning to you, sara facebook stock and its ad sales have seemed invincible right now, over 90% of analysts have a buyer overweight rating on the stock, and the stock is up some 40% in the past 12 months this despite a barrage of negative headlines from negative measurement to its role in the russian manipulation of the election facebook has a consistent track record of beating wall street expectations, and now analysts expect facebook to grow its earnings 17.5% to $1.28 per share, while revenue is projected to grow more than 40% to over $9.8 billion this morning, aegis capital increased the value to $215, writing facebook has been largely impervious to the ad

pressures plaguing the traditional ad platforms, predicting earnings upside in the coming year. analysts are watching to see how much instagram and video ads can drive growth they'll also watch to see how much cost will be pushed higher as the company invests more in video and also expands its employee base and its security force in particular. we'll be listening on the call for the impact of those new hires on facebook's bottom line, plus any commentary on the impact of the scandal over russian purchased ads and what the company expects from the proposed regulation that's in the works. back over to you >> just how costly it's going to be if they really are going to take control of the issue. julia, thank you coming up, be sure to stick around for "squawk alley" when a former aol founder and ceo steve case joins us for his thoughts n the tech hearing going on i washington more "squawk on the street" right after this

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let's get over to cme group. rick santelli joins us for the santelli exchange. >> thank you, david. i would like to welcome my guest, mark olson. thanks for taking the time this second day of a two-day fed meeting. i guess that's as good a place as any to start. what do you see with regard to today's statement and what do you think about the next meeting in december? >> well, first of all, i think today, we will not see any action on the fed target rate. i think that will wait until december if it were going to be today, i think we would have had more indication that something was going to happen. it will be interesting to see, this is the first month of the normalization process that you and i have talked about for several years, of getting the balance sheet reduced. it will be interesting to me to see if there are statements on

that fact, and the point that steve liesman made about whether or not they're upgrading their expectations for growth. those are the two things that will be, i think, of the greatest interest for today's meeting. >> you know, i agree with your last statement in particular. pr listen, i'm agnostic when it comes to what to do about it but either hard not to see that whether it's domestically or globally, there seems to be something organic that hasn't happened in the last handful of years just based on the data alone. do you believe, mark, that all the priming of the economic pump that we've been doing for basically almost a decade is finally starting to catch, we're actually starting to see the economy maybe being able to survive without training wheels? >> i think that's exactly right. but i also think that the fact that it hasn't been as apparent tells us the depth that we were in during the last 10 years,

because all of that stimulation had to have made a difference. but the fact we were now seeing aggressive inflation or aggressive growth suggests to me there was more of a deficit there than we recognized at the time >> i got you you know, i had jim bianco on and we talked about you obviously in an interesting conversation, that in the fall of '05, you as a board of governor accidented. it was right after katrina everybody understood katrina was the influence on the decision on your part. my point is more general it seems as though our central bank doesn't like any dissension they always try to make it look unanimous. as we look at who may lead the fed, the chair, three vacancies that may be filled, do you think, mark, we need a fed, fmoc group that has more contrarian,

thinks more outside the box, not necessarily all trying to force agreement among the entire group? >> well, i think one of the important roles of the chair is to try to get a consensus. that is a critical, i think, success factor for being chair so they will continue to work with that. i think if people have a dissent like i did 12 years ago that there ought to be a very good reason for that. when i did that, i spent 40 minutes with chairman greenspan talking it through he told me where he thought i was wrong. he probably ended up being more right than i was, but i think it made an important statement at the time yes, i think a reasoned logical dissent is a very good thing occasionally several of the other governors at the time came up to me and reminded -- gave me that same feedback. >> i understand. that's an interesting story. he tried to twist your arm a little bit. >> that's precisely the point, he did not try to twist my arm he was very accommodating, and

he told me what he thought -- >> so he disagreed with you -- so he disagreed with you, i misunderstood, but he didn't necessarily want you to change your mind, just disagreed with you. >> there was no effort whatsoever to turn my vote around he just listened and stated his position. >> i got you mark, thank you. it's always interesting to go back if we don't understand the past, we're certainly for the going to be any more clear regarding the future let's see what the statement says today david faber, back to you. >> okay. thank you rick santelli. let's go to jon fortt to give usa look what's coming up on "squawk alley. jon. >> big earnings after the bell today. facebook among them. how are they going to do we're going to dig in with the top analysts on facebook stock is up 5% over the last five trading days. doesn't have room to run eheitr way. we'll find out coming up on "squawk alley.

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welcome back to "squawk on the street." i'm dominic chu.

on the heels of higher oil prices wti and brent crude up a percent in early trading check out shares of cabot oil and gas, marathon petroleum and valero, some big leaders so far today. that does it for this hour of "squawk on the street. let's head back for "squawk alley." >> thank you very much welcome to "squawk alley," carl quintanilla with jon fortt. >> the dow briefly crossing 23,02 23,500 for the first time ever, records for s&p and nasdaq bob, it's broad and grobl. >> it is global markets starting with strong inflous, record highs several factors closing those strong inflows most importantly a global economic expansion along with it we have improved earnings global.