11:00 a.m. at koch headquarters in atlanta, 11:00 a.m. on wall street, and "squawk alley" is live.morning, i'm carl quintanilla at post 9 with john fortt, sara eisen is getting some behind the scenes access to some of the company's new technology we'll hear more from sara in a moment first, though, retailers are on the move, shares of walmart getting close to 98, also shares of best buy and gap.

some of these names, court, have had a crazy morning already. >> that's exactly right and it's only going to get crazier. next week is black friday, so walmart shares higher, almost 9% after another quarter of what the company is calling broad based strength so profit and revenue beating estimates. the retailer also raising its full year guidance to a range above the current consensus. u.s. comp store sales up 2.7%. that's the best number in eight years. 13 straight quarters of growth there. now, there's an estimated 30 to 50 basis point hurricane benefit with that stock up on replenishment or purchases after the hurricane, but even without it you'd be looking at a 2.2 to 2.4% comp and that would still be the strongest in years. so walmart's u.s. e-commerce sales contributed 80 basis points to the total comp pretty typical net u.s. online sales grew 50% from last year that growth rate is down slightly from the growth rates of the last two quarters as anniversary of that jet

acquisition that happened at the end of september 2016. amazon may be lowering prices at whole foods, but walmart logged the strongest food comp in six years. some sales bump from hurricane-related spending, too, but the category has been getting stronger thanks to lower pricing, improved quality, and online grocery pickup. not just a one-quarter phenomenon really, but marked by the best comp in six years best buy shares, though, under pressure going the opposite way of walmart the retailer profit net expectations, but revenue coming in light and the profit forecast on the weak side compared to expectations for this all-important holiday quarter. the retailer says the iphone launched later than expected, so that shifted $100 million of expected revenue from the third quarter into the fourth. hurricanes also hurt sales in texas, florida, and puerto rico. they may have helped at walmart because they sell staples, but probably not going to be buying an iphone if your house is in a hurricane's path so sales grew an impressive

4.5%, but that was short of consensus, too online sales hit $1 billion for the fourth straight quarter. carl, back to you. >> unbelievable. down in the premarket, got itself back and down again thank you very much. busy day for you for more on today's market moves, let's bring in bob pisani what interests you in all this >> we finally have a reversal day. six straight down openings we haven't had that for over a year and today we had a strong 5-1 vaadvancing to declining stocks we've been watching small caps move lower, transports move lower, and that's finally reversible look at the s&p 500 and i think you'll see we had a great open and it's really just improved upon from there. this is going back several days, but you see the down openings that we've had and everybody has been waiting for things to turn around a little bit, particularly in the small caps and the transports if you take a look stocks, sectors that had been beaten up

rather badly this month all trading to the downside are the market leaders today this clearly indicates at least some people feel things have dropped enough to go out and start buying more, so biotech, telecom, industrials, materials, banks, all down on the month don't see the volume, but heavy price action for them. one laggard here is energy, which is stalled out now as oil hit 57 and moved back down to 55 and these stocks haven't been doing much for the last several days this is one of the few laggards out there. the most important thing is a reversal of the underperformance of the russell 2,000 we have been talking about this for five weeks now since really five or six weeks ago. there's the russell 2000 on the orange line, spiking up today, and the white line, that's the s&p 500. that's a rather notable underperformance about 400 basis points i think high volume today, you can see what's going on. take a look at some of the high yield finally reversed, as well.

seeing nice heavy volume there's the third one down there, high yield etf, very nice volume in that particular area so what this shows us is that there is still a bit of an underlying bid to the market in other words, everyone is not ready to go out and say, okay, it's the end of the year, let's go out and take profits and it makes a lot of sense, because people are sitting on 15%, 20% profits this year. why sell now, when you could sell in january and get a tax cut? makes perfect sense, but if things start drifting lower from here, suddenly we're down 5% or more from here, people are going to say i'm sorry, tax cut is nice, but i'm going to preserve my profits and that could accelerate selling >> is this volume as strong as it looks >> yeah, it is some of the etfs have much higher volume than we've seen. 100% already in the middle of the day. normally we'd have to go to the end of the day to see these numbers. >> house vote today on taxes

>> yes remember, things started drifting lower a little more than a week ago when the senate introduced the tax bill that would have delayed implementation of the corporate tax cuts for a year, so there is an underlying bid. it does matter where the tax cuts come in >> thanks, bob, bob pisani today is liberty media day, the annual meeting in new york city. faber has already brought us malone, carrie, maffei, and there's more to come hey, david >> yeah, we're going to sit down with tom rutledge a few moments from now, but i wanted to come back to a story that has the attention of many people when we talked to greg maffei he brought up the strong possibility it seems the government will try to sue, to stop that deal between at&t and time warner, and he said, maffei, that will change the rules of the road. and certainly at least gives pause to those considering doing different things until they understand where the government is coming from, but i did speak

to john malone earlier this morning who seems to think in terms of at least odds that this thing is not going to end up in court. >> today i would be 75%, you know, of it getting done on the current terms, yeah. without the vestiture. so i still think these vertical deals generally get done >> carl, i should add that he originally had the chances it would get done at 100% before, of course, the last few weeks have shown the government has significant reservations about the deal itself. don't have anything more for you at this point on time warner and at&t we're still waiting to see if the government does come with a complaint. tom rutledge will be joining us, ceo of chaerrter, back to you. >> that indeed to him came out of left field. see you in a little bit, david

faber at liberty media day tesla is going to unveil its semitruck tonight, a product elon musk says will blow your mind musk again blurring the lines between rock star and ceo on the cover of "the rolling stone" in a wide ranging conversation he calls out short sellers, saying they are jerks also says he wishes tesla was a private firm joining us this morning, senior analyst at bernstein interesting read in "rolling stone," tony, but as for tonight, this long plan semi-electric truck, you don't see it as an opportunity to change the thesis, why >> the investment pieces on tesla is really predicated on electric vehicles. the automotive market today is 100 million units. the tesla semitruck, which they are going to introduce tonight, that addressable market is about a million units a year, but many of the trucks are long haul, they go 500, 600 miles a day the tesla truck is likely to go

300 miles a day, so it's going to be a much more limited market than the limited units, so 100 million cars in terms of trucks, even if tesla does well, it's really not going to change the story. it's all about cars. >> tony, what do you make of this statement from elon musk about wishing it were a private company and calling out short sellers? of course we all know he's incredibly smart short sellers are part of the ecosystem. my goodness, tesla was in deep, deep trouble not too many years ago, it needed to be a public company. what's he really saying here >> look, i think in the article he also notes that short sellers have made comments about the fact that, you know, tesla as a company is dishonest and they haven't been forthcoming and i think in the spirit of trying to drive down the stock price so i think the frustration is probably around what are perceived as personal attacks and attacks on his integrity.

i don't think there's a doubt about this is an efficient market and tesla stock has, obviously, done very, very well since it went public so i think that's the comment on short sellers. i think in terms of being a private company, look, there's a lot of pressure from wall street to -- for tesla to stop burning cash, and as a private company, you may have more flexibility in doing that >> yeah. nice to say you wish you were private after already gone public, i guess. tony, your thoughts on the model 3 and i wonder what you make of recent downgrades or price target trimming that argue the market is underappreciating the complexity of making a car like this at scale. >> well, look, i think we've always been worried about whether tesla could ramp production as aggressively as it thought, but quite frankly in the grand scheme of things i don't think it matters whether

the car takes six months later to ramp than originally planned. tesla has a big advantage when you're not going to see competitive offerings for two or three years. i think the more important issue around model 3 is can the car ultimately be delivered at an attractive gross margin and can the car be delivered with good initial quality. and both of those issues are still on the table the ramp is proving to be challenging. i think a lot of people expected that, but in the grand scheme of things that's not a big deal if the model 3 ultimately is not that profitable or has initial quality issues, those are much, much bigger issues for tesla, and to me those are the questions that still need to be answered >> i can't imagine you saying that same thing about apple. i mean, given the loyalty levels that you see at apple, the gross margins at apple, you would not give them that much rope is that just the stage of the company? >> yeah, i mean look, tesla's track record is short lived. apple has been around 30 years

and delivered ten straight iphones like clockwork with very minimal operational glitches tesla with its model x had very significant manufacturing ramp issues, but more importantly had very significant initial quality issues with the doors, with window fitting, and that was okay because it was a relatively limited product in terms of its volumes, but the worry with model 3 is, this is a mass market product, so if there are quality issues, and again there is precedent for that, you know, that's really significant for the company at this stage in its life >> tony, it's good to talk to you about it we'll see what they bring us tonight. thanks again talking some tesla this morning. let's get to another one of our own here, sara eisen is in atlanta where she just talked to koch ceo his first interview since taking the helm, sara >> james quincy has been ceo for

six months, in that time they've been cutting costs and what he calls reinventing a more than 130-year-old brand to speak to millennials and that includes diversifying away from the core coke branded soft drinks >> it will be an ongoing journey. we've been moving about a percent of the total business in new categories every year for the last ten, 15 years we'll look to continue to accelerate that, but it's going to be an and story we're going to grow the revenues and add these other beverages. >> he also ruled out getting into booze, which was floated this week by an analyst. and, of course, i talked about the topic du jour, tax reforms, with $20 billion in cash sitting overseas, if he could bring it back at a lower rate, i asked him would he increase jobs and wages? >> principally it's not our short-term change, not like it's a big box of money that comes

back and gets reinvested by us in 2018. i think this is an ongoing increase of the competitiveness of the u.s. economy. from our point of view as a company, if this were to happen, it wouldn't be suddenly there would be billions of dollars flowing back in and reinvested in the big bang. >> he even mentioned some of that money would flow into the dividend, carl, shooting down some of the administration's high hopes for hiring and increasing wages from some of these companies if they can bring that cash back >> he did seem to indicate that there wouldn't be this flood of dollars coming racing back into the economy. seemed to frame it more as a bet on longer term economic growth and stability over time. >> exactly right and it brings us back to this conversation that gary cohn from the administration and so many republicans say you're going to get this flood of investment in the united states with the corporate tax cut to 20% guess what, coca-cola pays below

that rate right now and the repatriated cash back to the u.s., quincey candidly say some will get invested in u.s. business, but don't expect us to make this big hiring wage increase, as we've heard from, frankly, some of the republicans. i think that's definitely going to be part of the debate >> sara, we'll come back to you in a bit really interesting stuff out of atlanta. sara eisen is at coke today. when we come back, david faber sits down with charter's tom rutledge sara will get details on a big tech push. best day since september 11th for the dow. cisco is helping out, rising after the company finally managed to reverse the two-year streak of clindeing revenues we'll talk about that when "squawk alley" comes right back.

liberty media hosting its annual investor meeting in new york city. david faber is there and joins us with yet another special guest. david? >> thank you, carl, we're joined by tom rutledge, of course, ceo of charter communications. always niece enough to sit down with us here year after year glad we could have you now i want to start off with viacom. that stock is down this morning. you put out a press release on the new distribution deal. there's been questions why charter needed viacom. why did you do the viacom deal >> look, we want to have a great

video product that includes all the services viacom has had difficulties, got a new ceo, bob backes, he's got a great strategy and he wants to execute on it, so we did a deal and i think that deal is good for viacom and it's good for charter. they are going to, you know, work out their problems, they hope, and build a better service and they've already got some numbers working in their direction. and, you know, we wanted to have a long-term relationship with them, and we do. and, yes, it's a different relationship, and, yes, the leverage was changed because of their performance, but our goal working with them was to carry them and to carry them at the proper value and to go forward together >> that proper value seemed to be something of a shock to some investors this morning, who were sending viacom shares down, though not as badly as they were earlier. clearly, you've got a deal that was different than the one you

had previously >> it was different, but, you know, it was different in many ways, but fundamentally it was designed for them to be successful and us to be successful we did some creative things together >> what's that mean? >> we agreed to create new programming together out of their studios that we would have an ownership interest in and to put that programming in an on demand environment for a period of time and to share the value of that content creation we agreed to reposition their services, which we had done to their detriment, in their view we put -- >> tiering you're talking about? >> tiered it differently, although most of the customer base was still the way they historically had been carried, and we agreed that we would give them full distribution so, you know, there are puts and takes all along, and -- but i think, you know, they got a good deal from their point of view. they have the leadership now to

make their business successful >> you think so? you run charter, not viacom. >> it's not my job to figure out their problems >> why do you think it's a great strategy >> it's a better strategy than what they had. i think they let their product from a creative point of view fall apart, and their ratings reflected that, and, you know, that affected their ability to negotiate with us. and so -- but as a result of the negotiation, we had some confidence that they were going to be successful going forward, and, you know, it's up to them, though, to make that happen, not us >> sure, sure. >> but our general view is, we want to carry services we want to have everything there is available from a video perspective, whether it's traditional cable, whether it's netflix or hulu or youtube or any other product that might be out there. we want to integrate that into our video packaging, our user

interfaces we want to deliver everything to the customer and make it as good a service as we can make it. >> of course, and you want to give them options, but those say charter is still not offering enough when it comes to the skinnier bundles, and that you're losing video subs like everybody else, at least you did last quarter, and that's not going to stop until you give customers more of what they want and what they want is not to pay for everything, particularly sports >> yes -- so that's somewhat true >> okay. >> we're actually growing our expanded video customer base and losing basic only -- lifeline basic only customers and as we change our customer base into our new pricing and packaging, we expect to grow video, traditional video, and we did at legacy charter. it took us a number of quarters with the pricing and packaging, but we believe in driving high value products into the home, and we believe that high value

products stay with customers and customers want -- >> represents a high value product to this point? >> fully featured with lots of content in it. now, it's true that there's tremendous price pressure and that a lot of consumers can't afford a full video package. >> there's a lot more options now than there were. >> a lot more options, except when you add them all up, they cost more. >> they can. >> they can. unless you want less most people don't want to pay more for less. they want more for less. >> right >> and -- and so we -- we think that there is a market for smaller products for some customers, and we're targeting customers with those products. we have all the rights to sell over the top services to our data only customer base. we do do that, but we still believe fundamentally that

value-rich products, fully featured video products are what moa most consumers want to buy >> broadband is something everybody needs to buy, almost like water at this point, but i'm curious when you talk about your company, a broadband first company, the net ads haven't been quite as strong as some thought. why is that? >> you know, i think that from our point of view we expect the net ads to be consistent with our historical net ads we are, you know, about 50% market share, and we think we have a superior product. we are investing in taking that product further in terms of separating it from a performance perspective against our competitors, taking speeds up, minimum speeds we're 100 megabits minimum speed everywhere now, next year we'll take that higher we'll have a gigabyte service in all homes, so we think that we can continue to take share and

continue to grow the business. we had hurricanes last quarter >> peoplepaused last quarter first we had comcast stay things were unexpected. you didn't when given that opportunity, then came with a quarter people didn't respond well to. >> yes, but i just made a presentation here where i was trying to show that our historic growth is not linear, it's lumpy. and if you look at it smoothed out, it looks wonderful, and if you look at the stock price smoothed out, it looks wonderful, but every quarter we have a lot of moving parts in our company. we're integrating three big companies. there's a lot of activity around that we have market forces, too, you know, new competitors that have new pricing packaging places in different parts of the country and you mix all that up, the quarterly growth isn't always linear but our fundamental underlying growth, we think, is very solid and consistent with our historic

growth rates >> which goes to the point mr. malone was making earlier when he sat down and we talked about the various speculation around offers that have been made or at least tried to have been made for charter. >> for charter >> yes >> no one has made an official offer. >> they go through liberty a lot, it would seem >> yes, and because liberty is an interesting place to be and they are transactionally oriented, people gravitate there, you know. liberty owns about 19% of charter, and we have other big shareholders and we have the public shareholders and we have actually a uniformed view from liberty and all of the shareholders about the value of the company and how we create value. and, you know, i don't think we're misaligned at all. you're right, people go talk to john and he's an interesting guy to talk to >> he is, and people hear about it and assume somehow there might be something, but they always come back to this with me, rutledge has options that don't vest until 564 i don't know if i got the number

right. is that it >> near there. >> near there. is that a factor do you believe that stock eventually you will be able to collect on those options if you follow your long-term plan >> yes that's why i signed up to do this i signed up for a five-year deal, and i have very high targeted performance options, and lots of them, so they create enormous value for me. >> they have that's why you're the highest paid executive in america last year >> that's not really true unless these options pay off. that is the black shoal's value of the options, but if we don't hit those stock prices, i won't be the highest paid executive in america and i'll be disgraced. i don't want that. >> we don't want that either finally, you know, a few years ago remember we did the same interview and we were talking about direct to consumer and hbo. you said they'd be sowing the seeds of their own demise. doesn't seem like that anymore revisit that topic >> that hbo would be sowing the

seed >> if they did a direct to consumer offering, which they had to do. >> yeah, they have well, you got to put it into context, what i said, but i believe that if you have a good distribution system and you then go directly to a consumer with the same product and you can buy that a la carte as a consumer, then having the distributor who packages you with other services to drive you with a value-rich product into the marketplace means they no longer need to include you. and if you could live without your historic base of customers, i think that's fine. but just take any channel, you know,that you want cnbc, just to be controversial, if you were stand alone and had to sell yourself directly, you wouldn't have the penetration you do you might be able to charge morer to a niche market, but would that be as valuable?

and if you were -- if all of nbc, all the products of nbc were sold a la carte, would i need to carry those as part of my package, or would i sell them individually and that's all i was saying. >> that's the key question in many ways. tom, thank you as always for spending time with us, appreciate it. tom rutledge, ceo of charter, back to you guys >> thank you, david faber. great interview, great insights. let's take a quick check on the markets. dow having its best day in more than two months, up more than 170 points s&p and nasdaq also up nasdaq up more than 1% still to come, cisco continuing its run higher after offering an upbeat forecast. more on those results to come. "squawk alley"'s back after this

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take a look at shares of cisco. up a little better than 6% after

earnings came in particularly guidance better than many on the street expected. cisco's been in the mid to low 30s trading all year now moving up above $35 a share today, but it's interesting. chuck robbins we expect to have on "squawk on the street" tomorrow their cloud move perhaps not as clear as some other companies. we had mark hurd in the building a couple of days ago, oracle's a stock that's gone from around 40 to 50 over the past 12 months. ibm, meanwhile, gone from 160 to 150. cisco certainly has done better than that, but the question is whether cisco's story in the cloud era really gels and makes sense. john chambers talked about how they'd catch market transitions. be interesting to see what they have to say about how cisco is exactly taking care of this one. in this quarter, commercial sales were up from 4% growth to 12%. investors were happy about that,

but large enterprise sales were down security did better than expected that business up 8% year over year 5% quarter over quarter. and, of course, they've got some acquisitions they are trying to incorporate, carl, but i think the question is, in this networking era, in this cloud era, you've seen intel making very different bold moves in how they are trying to make these shifts moving toward more programmable semiconductors, moving into autonomous and trying to compete head to head with nvidia. what more does cisco have in the tank >> certainly the price action today popping out to the highest since '01. we'll see what robins says tomorrow seema, how'd europe close up >> check out the price action in europe after seven straight days of losses, european stocks are breaking their longest losing streak since october of last year it is really the auto sector fuelling european markets.

take a look at this graphic. auto sales for the european continent up 5.9% in october from a year ago. among the major markets, deman was strongest in spain and france, each up 13.7%. italy and germany also posting increases, but auto sales in the uk did drop for a seventh consecutive month, down more than 12% and now that's being pegged to the brexit uncertainty. take a look at the stock reaction among the biggest gainers, daimler you saw sales rise in october, but bmw saw sales fall almost 8%. nonetheless, a green day for the autos. meantime in the uk, retail sales fell 0.3% in october from a year ago. the first annual decline since march of 2013. the data shows that higher inflation put a lid on consumer spending while unusually warm weather held back some sales this, of course, amid moves we have seen in the pound over the

last one month carl, sending it back to you >> all right, seema, thank you very much. as we said earlier, our sara eisen is at coke's first investor day in eight years and she got some exclusive behind the scenes access. hey, sara. >> hey, carl e-commerce and retail disruption, obviously, a new part of the coca-cola story they are really trying to emphasize here today and that includes deepening relationships with amazon, like these dash buttons for beverages. we'll show you some new ways that coca-cola is exploring how consumers buy beverages and how they are thinking about the leupn quk ing o"saw aly"

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good morning, everyone i'm sue herera here's your cnbc news update at this hour. los angeles radio host leann tweeden says democratic senator al franken forcibly kissed her during a 2006 uso tour skit and then posed for a photo with his hands on her breasts as she slept. franken releasing a statement in which he apologized to her, saying he did not remember the skit in the same way and said he shouldn't have groped her in the photo. london's old vic theater

received 20 allegations of inappropriate behavior by kevin spacey a theater spokeswoman said they wholeheartedly apologize for not doing enough for bringing the allegations to them. the raj pink diamond failed to sell in geneva last night, weighing in at 37 carats and mounted on a ring, it was estimated to sell between $20 and $30 million, but the highest bid was about $14 million. and aaa stays nearly 51 million americans are expected to travel this thanksgiving, the most in a dozen years. 89% are planning a road trip, despite higher gas prices. as for those flying, tickets are the cheapest since 2013. that's the news update this hour carl, back downtown to you >> thank you very much, sue herera watching the markets this morning, pretty good volume today. dow having its best day since

september 11th the president has arrived at the gop conference meeting on the house side, where we're expecting a vote on tax reform in just a few hours. take a look at shares of viacom, we haven't talked about it much so far, but the ntb owner did slip on declining fees from cable operators. overall, though, cisco and walmart lpheing the dow to its best day in a couple of months back in a minute

i'm scott walker coming up today top of the hour on "halftime report. surprise surge for two dow

components today, but how high can walmart and cisco fly from here we'll debate that question plus, the one part of the market getting the bond story entirely wrong. rick reitter with us live on what could be a great opportunity for investors. and hotel hot spot one analyst just taking the ax today to one of the biggest positions, so will joe sell or buy more we'll answer that question on the "halftime report" noon eastern. carl, see you in about 15. >> sounds good, scott, thanks. let's get back to faber at liberty media's annual investor meeting in new york city even as news is breaking across the beat hey, david >> thanks, carl. yeah, maybe we'll get to more time warner/at&t talk, but did want to also talk a little disney and fox not from me, but from john malone, who i spoke to earlier this issue of scale has come up so often in the conversations that we've had so far today, namely the lack for some companies of it and, of course, the dominance of facebook, google, amazon, and to a certain

extent netflix, as well. all of which led fox, certainly, to entertain the potential sale of its entertainment assets to disney i asked malone, who knows rupert murdoch and fox well, what he thinks about that proposed transaction. >> stale two things, i think. one is that disney, of all the guys in the studio business, disney is the most unique in the sense that it owns its ip on its most important entertainment products so if you think that the whole -- that whole structure is going to be under stress, why wouldn't the murdochs want to put their stuff in and ride along in something that they've helped make bigger scale and that has this protective element of intellectual property

ownership, right between marvel, star wars. >> i don't know how they'd ride along, though. maybe you could give advice how to work that deal. >> my guess is they would end up -- that fox shareholders would end up being disney shareholders >> right >> in some tax efficient structure. >> well, the tax efficient structure is very difficult here >> not necessarily >> you don't think so? that's what i've heard, you know >> there's usually a way, david. sometimes it takes patience. >> well, nobody knows that better than you do nobody has structured more things >> usually ultimately a way to avoid corporate level gain taxes on appreciated assets, so my guess is, if they study it, they'll be able to figure that one out. >> does it make sense to you, the deal and have you spoken to rupert about it >> scale makes a lot of sense. from a disney -- and my understanding was this was initiated more by bob than it

was the other side >> well, there you hear it he at least thinks it makes some sense, carl. whether or not those talks are revisited or what develops there, of course, remains unknown at this point, but it's certainly a significant sign post along the way as to the dramatic changes taking place in an industry mr. malone helped to really create. back to you. >> all right, david, thank you don't go too far away. we want to get to some of the breaking news we referenced a few moments ago. hey, leslie. >> that's right. assistant attorney general for antitrust division at the doj just finished a speech at the aba event, where his focus was to lay out his thesis for how he will treat antitrust moving forward. he really focused on behavioral remedies in mergers and said those were a bad solution, particularly for vertical integration and that antitrust should be used to prevent those deals from happening, rather than succumb to regulation

required to patrol the behavioral remedies after the fact >> without getting into specifics, i can say that behavioral remedies have proven challenging to enforce today in recent years a division has investigated a number of behavioral decree violations but has found it onerous to collect information or satisfy the exacting standards of proving contempt and seeking relief for violations of those decrees. we have a limited window into the day-to-day operations of business, and it is difficult to monitor and enforce granular commitments like nondiscrimination and information firewalls. >> now, he fired a direct shot at specific deals, specific vertical integration deals that took place in the last administration, including that by our parent company comcast with nbcu. he didn't name time warner and at&t specifically, but some were

concerned this strategy could be applied to tackling this deal, as well. guys >> leslie, thank you for bringing us that sound david, safe to say his view on behavioral remedies is consistent with what he said before >> yes, it is. in fact, you know, he doesn't view them necessarily as effective. of course, that would shine a light on comcast and nbc and whether or not the government feels that has been effective. certainly, the comcast side, our parent company, would say the consent decree has been just that, very effective and something they felt was onerous, which is what you want from an antitrust perspective. carl, let me share the following, as well there's a new source i'm unfamiliar with saying according to sources familiar the doj and at&t have decided to extend their timing agreement the timing agreement is essentially a 21-day agreement under which at&t, time warner tells the government, you know, we'll give you 21 days' notice until we close that expires at the end of november i've heard nothing that indicates it's been extended at this point, but it does appear

this news service story is also having a positive impact on time warner shares. we'll see where we end up here my sources on all sides here still seem to believe more likely than not the government does act, but if there's a window here slightly open perhaps, they may try to use it to see if they can cobble together some sort of remedy to keep them out of court >> david, if behavioral remedies are being taken off the table, and i don't know if this is a feint or what, does that basically boil down to saying we're just going to try to hit home runs here what if time warner/at&t called their bluff and said, okay, let's duke it out? >> well, listen, i think they will they already have, right they have sat down and the ask was directv or turner, and at&t said no way. and so that's where we find ourself in the current position where we're waiting potentially

from a complaint from the doj, one that does not include any state a.g.s. maybe that's giving them a little pause as well the a.g.s saw depositions from witnesses and chose not to sign on at&t is saying we're not going to meet those structural remedies, we will see you in court. >> david, thanks for that. good to have your insight on that news. when we come back, we'll go back to koch. the new chief trying to bring some excitement back to a brand that's been around 130 years we'll tell you why meal prep kits are a part of the strategy. all of the leaders are earnings related, net app, smucker, the dow is up 190 lot of tech companies are reporting today. 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.

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♪ coca-cola lifting the curtain on how it's thinking about new technology, specifically e-commerce at its investor meeting today sara eisen has been there all morning and has a look at that sara >> carl, for years coca-cola and other big beverage makers have been fighting for shelf space in the grocery stores well, now coke is completely rethinking the way consumers shop and its partnerships with amazon, walmart.com, kroger and others it needs to get millenials excited about soda and it needs to find them where they shop, as growth slows overall take a look.

give us a little tour about higher thinking about the way consumers are changing their buying habits and how coke is getting in front of them faster and through different ways. >> sure. clearly e-commerce is a tremendously growing thing and i think we're most familiar with it in terms of things delivered to our homes one of the things that is growing now in dense urban areas, particularly college campuses, are these pickup lockers. what's interesting for us is as you come to pick it up, it prompts you, okay, you're close to the pickup, would you like to add a cold beverage. the person behind can pop it in so when you open the locker, there's beverages in there for you to enjoy so that's a big part of what's going on to make that work, clearly we need to make beverages appealing to people in the online world. so this representation of the kind of the classic shelf, all the beauty and thinking that

went beyond making the brands appealing on the shelf in the physical world, we need to make happen in the online world some of the pictures here are representations of making sure we've got much nicer, sharper images not just the technical detail, but some of the engagement around the brands and the products so people can really get a feel and get engaged with them. >> across retail. >> across all retailers. now, actually the online world is not just about cool stuff on the internet and on the apps, but it's also stuff in the physical world here's something that's growing really quickly, which is shipping, some of our craft beverages around the made in mexico, coke, fanta and sprite shipping glass bottles is not everyone's top priority but we came up with new, innovative ways of safeguarding that so it can arrive in your house in great condition. maybe the last thought on what's changing online is all of that was a journey on something that you knew you wanted. what's happening with voice is

you're there ordering, say, delivery food for the evening and as you orderyour thai takeaway, the software will prompt you, would you like a cold beverage with that? and might even offer you different beverages depending on the type of food you order so not just helping people buy what they know they already want but taking it to the next stage on what they might want. >> sprite depogoes well with pad thai would you like to add that to your order >> apparently prisprite is the choice with spicy home it's never going to an amazon or wall not warehouse, something coke is advertising. quincy also showed us a blue apron contributor, chef, to get coke products into meal kits so they're trying to showcase how they're thinking about this new generation which just does

not shop the way we shopped, our parents shopped, and they need to get people excited about some of the core product. they have done so much research about which food pairings go with which drinks and now they're trying to put that into action in places like meal kits and home speakers and e-commerce delivery and lockers, et cetera. >> can you reinvent the end cap? they no longer have the same advantages when people aren't walking into stores at least at the same rate they used to be, right, sara? >> right but what's interesting also is apparently slurpees and slushies are a very big thing right now they have new coolers that are at arctic temperatures you take out the bottle and put it into this side thing and it actually creates ice in that little side area there james quincy, the ceo, showed us how this worked. you putthe bottle in that little area. this was developed by two nasa

scientists and it creates ice slurpee. we're going to start to see this all over restaurants replacing the traditional coolers. they also showed us this prototype where you can take it a step further and actually make it a slushie, which i tried, and it was quite tasty so working with technology but also -- >> interesting. >> trying to create some more excitement for soda, which has been declining, consumption in the u.s. for the last decade. >> i'm looking at five-year charts of coke versus pepsi, 20-year charts obviously pepsi has way outperformed are you surprised at how aggressively coke seems to be trying to take some more control of the distribution channel? >> so this has been a big part of the strategy. the underperformance coke versus pepsi has to do with the fact that pepsi has had the snacks

business to insulate them from the slump in carbonated beverages. under the new ceo, they have spun off the bottlers to become a much more lean focused company so that they can try to grow the beverage portfolio and diversify away from just soda. >> great stuff today, sara safe travels home. we'll see you later on in the week the dow is up 193. let's get to the judge and "the half." and welcome to "the halftime report." i'm scott wapner our top trade, dow drivers, walmart and cisco surging today after earnings, but with both stocks making 52-week highs today, is there still time to get in joe terranova, josh brown, jon najarian, and pete najarian is with us as well from minneapolis. look at walmart and cisco's performance. walmart up 9%.