. it is 5:00 a.m here are the five most important things that you need to know to start your tuesday crude oil continuing its creep higher. the brexit battle heating up theresa may making some major headlines as the clock ticks towards an exit. a shakeup at google. the man in charge of the most important unit at the company is leaving unexpectedly facebook tapping a company insider to lead instagram. and all those subscription businesses that keep popping up, are they in trouble? the one company that may be signaling yes. it's tuesday, october 2nd.

"worldwide exchange" begins right now. ♪ good morning welcome from wherever in the world you may be watching. i'm brian sullivan so nice to have you here thanks for watching. here's how your money and your global markets are setting up. futures are down over 100 points after yesterday's big gains for the markets here and big gains around the world dow futures down 104 s&p and nasdaq off as well ten-year bond yield sliding back a bit. that's not the story the story is oil oil continuing its slow grind and its slow march higher. we are seeing crude oil and brent crude down a bit still over 85 earlier. wti traded crude, the oil we refine here, what your gas prices are based on is up.

75.39. the show is called "worldwide exchange." you have the japanese market up a bit here muting that one we've seen lately, hong kong and korea down a bit. european stocks are lauer across the board. focus on this, that's italy. spain down 1% as well. along with france. again, we talked about oil the other big story to pay attention to today is italy. remember yesterday we walked you through how investors were treating the european markets differently. that story continues today markets reacting negatively to italy's latest budget. the yield on the italian ten-year rising again, 3.41%, the highest level in four years. that is weighing on italian banks, like unicredit, they are deep in the red today. a 5% drop for banco monte dei

pasc paschi italy, we talked about it yesterday, i know it's wonky, it's out there, it's a big story that move making a dent in the euro let's tie all of this together with what's happening in the united states. patrick armstrong is chief investment officer at plurimi investments. how much are you investing the italian ten-year bond market. >> you got to watch it the budget will come to a crux in the next few weeks. the eu is not happy about the stability that a 2.4% deficit will achieve 2.3% is a key number, you can argue that's sustainable that will lead to a reduction to debt gdp if they come at 2.5, debt to gdp

is growing we're talking about decimal points now there was a headline this morning that the market is overreacting to an economist in italy saying these problems could be solved if we had our own currency he stepped back from that a bit. i don't think we're in the midst of an ita-leave, how ever you want to brand it but i think the eu and italy will come to a compromise >> you nailed it, patrick. the reason we're talking about it is like the reason we talked about greece so many years ago it's no insult to italy or greece, but their markets don't matter that much by themselves the risk of greece is that it owed money to germany and other countries in europe, there were concerns about breaking up the euro is italy anywhere near the level of concern we were at the beginning of the greek worries >> it is not as much in 2011 all of the european

banks owned italian debt it's turned into a situation where italian banks own italian debt the contagion risk is lower. the banks are much more solvent. it's not the contagion issues we were worried about in 2011 with italy, spain, greece right now a much sounder banking system european wise but anything that creates a potential risk to the eurozone and italy is a much bigger proportion than greece ever was, but in terms of banking stability and contagion, those issues won't come up the same way. >> does all of this, however it ends up ultimately, does that make the u.s. even more attractive to foreign investors? >> there's a lot going for the u.s. now, but i think there's some big risk in the u.s i think it's the fed and inflation that the market is underestimating. even wages are coming in strong,

we have the payrolls number out on friday, which is very important. the economy is not necessarily overheating, but you have a deficit fueling that the fed will meet its dots, and it may have to beat those dots if inflation and wage growth happens in line with what we've seen over the last four years. four years ago inflation was 0.1% we're now at 2.7% headline cpi in the u.s the u.s. already has a bit of an inflation problem. if you have fiscal stimulus and an economy growing at 5%, that's real risk. italy has a 5% deficit, and italy is at 2.5% >> the dot plot, you think the

fed is going to have to be or may have to be more aggressive raising rates. the dots, as we call them, are just the expectations of the individual fed members about where interest rates are going to have to be. >> i think that's a real thing everyone expecting them not hiking as aggressively as the dots indicating. i think there's a chance they may have to hike more aggressively when you have small companies in the united states, one of the biggest problems they cite is that we can't fill job vacancies with qualified people. people have been talking about the phillips curve being dead. wage growth is coming. wage growth will fuel inflation. that's been the enigma for the last five years. why? unemployment falling so rapidly. that's about to turn the corner and that's something the market is not prepared for. >> patrick armstrong, thank you.

appreciate it. your top single stock story today is likely going to be google a big shakeup in their most important division the company's ad chief is leaving to join a venture capital firm his departure comes after 15 years with google. google is tapping the head of google docs for the job. changes at instagram adam laseri will leave he was instagram's head of product. he previously led the news feed division a company called stitch fix is tumbling after reporting mixed results. >> shares of the online personal style service falling more than 20% in extended trading after hours last night while fourth quarter earnings beat forecasts, revenue and the number of active users fell short that's a key metric for stitch fix and other subscription bu-bd

services active clients were the same level as the previous quarter. stitch fix has been exploring ways to diversify its revenue sources. it just announced it's expanding into the uk which is expected to happen by the end of 2018. they also said they would launch a version of its style service for kids they launched in november and had a huge run up since then the stock is still up more than 130% from its debut. stitch fix co-founder katrina lake will be on "squawk alley" at 11:00 it's a tough market. every day, i know in my social media feed, i see a new subscription service this is for clothes. blue apron wants to send you food, stitch fix wants to send

you clothes so you can look your finest and not have to own it. >> and not have to shop. a lot of people don't like shopping >> other people like shopping, then you get out of the house, away from the kids, which means you can be a grown up for a while. i did say that out loud? oh, family, i love you we'll see you in a minute. another stock to watch today is papa john's shares of the chain are rising on news that legion partners has now taken a 5.5% stake in the company in a filing with the s.e.c., legion partners says papa john's has multiple financial paths to significantly higher valuations. papa john's founder john sena schnatter had his day in court yesterday. is he seeking documents relating to his ouster. we are just getting started on "worldwide exchange." up next, the brexit battle heating up again theresa may making some more

major headlines as the clock ticks towards an exit. and later on your must-see video. a horse walks into a bar and you won't believe what happens next except it's not a joke it's in france which means it's automatically doubly good. i know that every single time that i suit up, there is a chance that's the last time.

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welcome back let's show you stock futures are

down a bit down about 109 points in asia, mainland china still closed today. the hong kong market down 2.5% south korea down as well japan continuing its mini run, up 0.1%. the european markets as well are down just over a percent each. the italian bond yields, we talked about grease for yearece, now we will talk about italy that's why we did that big, beautiful wall for you yesterday. staying with things out of europe, the uk's conservative party conference in full swing today. topping the agenda are brexit negotiations and the future of the european union steve sedgwick who represents the future of the european union is there and joins us now with more >> thanks, brian >> this brexit thing, is it going to happen? >> you were talking about potential brexit, this is the real thing this is brexit

i'm living and breathing it here i don't know how many party conventions you have been to between the republicans and democrats, this is an extraordinary one. you have the conservatives which make up the ruling government at the moment saying we're united, we just want a good deal as we exit europe. but what they're really doing is tearing themselves apart on the kind of future they're going to have you have two competing visions the prime minister's vision based on the checkers plan, a softer form of brexit, then a large number of conservatives who are very much against it, and they're backing boris johnson. today is when it kicks off we had the undercard this is the main event, this is foreman and ali. boris johnson will be talking. a lot of people think he should be the next prime minister of the uk then you have the prime minister who has done a big round of media today. she will do her big party speech tomorrow, which last year was a disaster she wants to shore up her

position two strong competing visions for how brexit will look and the future of the premiership. will be mrs. may she is saying she's in it for the long-term or could it be someone else including boris johnson. >> we talked about a fashion company and i'll tie that into this is this anything about leadership or just style is it pageantry and just, as we say, for show? >> i don't though it is just for show i spoke to a chap, his name is jacob reese mong he represents a wing of the conservative party who wants to walk away from the european union with minimal contacts. he said we can do our thing in the world without the eu that's on one side he reckons he has about 50 to 80 mps that back him. the conservatives only have about 315 mps in a 650 mp house.

if they don't get support from their own party what does that mean for the chances of mrs. may getting through a deal with europeans, and when she's done that getting through the uk partment it parliament it's getting messy it's getting tough >> i will ask you two questions on the fly number one the pro brexiteers do they acknowledge to you what their fears are? they have to have some risk? it's not all wine and roses. number two, given that you are so dialed in, are you talking to people who have or are thinking about literally packing up and moving to frankfurt and paris? >> right i can answer both of those questions. the latter question first. i spoke to martin gilbert the other day here, head of standard life aberdeen, one of the largest fund managers in the uk.

they have billions of assets under management he says we have a luxembourg base and we have a dublin base, we are covered legally if we need jurisdiction in the eu. we are not packing up. we think we can have a future based in britain but with hqs in luxembourg and in dublin the second point is the fears of the brexiteers i spoke to a lot of them i think their biggest fear is that they can't get deals with the rest of the world on terms that they want that any form of brexit will tie them too closely to the rules and regulation and jurisdictions of the european union as it is now. they think getting involved in a customs union will limit their ability to get a deal with mr. trump, get a deal with australia. i would suggest that's their biggest fear >> steve sedgwick, we knew you could handle that so well. we'll see you in a bit thank you. still to come, we're on

washington watch you have trade talks, the future of the supreme court, all dominating today's agenda. that's not washington. that's a rain storm somewhere. that is tropical storm rosa, it's set to hit the u.s. all this as another storm makes its way towards the country. stick around well, today you're a little busy transforming your call center. dealing with millions of customers a year, like this one. no, i'm pretty sure i didn't order a squirrel playing a guitar. that's why you work with watson. it works with your systems to resolve calls faster and improve customer satisfaction. i detected fraud and helped reassign a new credit card. honey, they're overnighting us a new card. woooo!!! woooo!!! for ai that works with tools you already use, choose watson. hello! the best ai for the job. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts?

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nice for a couple of days here headlines out of washington dominated by the controversy surrounding brett kavanaugh. tracie potts has the latest on this whole process >> well, the process will be a quick one. because republicans are insisting on a vote by the end of the week. we know, brian, they have interviewed mark judge, the high school classmate of judge kavanaugh. the question now is could one of his accusers be next with the fbi's investigation of judge brett kavanaugh now officially expanded, will agents interview his third accuser, julie swetnick >> it wouldn't bother me at all. if there is credibility, interview the third one. >> reporter: swetnick tells nbc kavanaugh touched young women inappropriately in high school >> i saw him go up to girls, paw on them. try to get a little too handsy touching them in private parts

>> reporter: nbc has not verified her story there are inconsistencies, and kavanaugh denies even knowing her. also nbc obtained next messages that kavanaugh was contacting old classmates, trying to refute debra ramirez. a mutual friend is trying to get those messages to the fbi. >> she wants to get out the desks showing that kavanaugh wanted to discredit debbie ramire ramirez. >> let me make it very clear, the time for endless delay and obstruction has come to a close. >> no one is asking it take longer than a week, but everyone is asking that it be done thoroughly and completely within that week. >> reporter: the fbi's deadline is friday. look, the more they may find democrats are suggesting up to

two dozen potential witnesses here >> tracie potts covering that drama for us appreciate it. switching gears, we're following a developing story out of the southwest tropical storm rosa hitting mexico with outer bands now also hitting parts of arizona and california thoses of homes and businesses there without power. the central rockies and great basin could see life threatening flash flooding let's check on the other top headlines. phillip has more on those. >> the death toll in indonesia has grown to 1,234 following an earthquake and tsunami that ravaged coastal towns there. rescue teams are continuing to push into remote areas of the country as the true extent of the devastation becomes clear. nearly 50,000 people have been displaced in one city alone.

that number along with the death toll will continue to rise. a flight leaving from jfk airport was halted after gears caught fire on the runway. delta flight 420 heading towards ghana aborted takeoff followin an air speed warning indication on board while taxiing back to the gate, the brakes began to overheat causinge ing ing a mini fire. maya gabiara set the world record for the largest wave ever surfed by a woman. the 31-year-old cleared a 68-foot monster during a contest in portugal. that's the same location where she nearly drowned in 2013 back to you, brian >> that's incredible you can see the jet ski, the wave runner coming out you can't just paddle out. you have to be dragged in by a

motorized vehicle. you can sea that wave runner on the right side of the screen you're water skiing on a surfboard, let that go and the wave pushes you. that's nuts. >> i'm thoroughly impressed by your expertise on this subject >> i did grow up in san diego. if i didn't know this, i should surrender my california card still ahead, a new day, a new nafta deal, you're not allowed to call it nafta, but that's what it is. what's next for the united states and our neighbors to the north, aka canada. we're headed back to washington with the latest there. and a horse walks into a bar in france. the video you have to see. stick arndou

futures pointing to a lower open wall street's trade high beginning to wear off a bit. a golden opportunity why now could be the perfect opportunity to bet on gold, which is down for six months in a row. and it's definitely the start of a bad joke. you will not believe what happens when a horse walks into a bar. more of that incredible video as "worldwide exchange" leaves the stable right now ♪

>> welcome back. good morning thanks for being with us on cnbc i'm brian sullivan 5:29, in 12 seconds it will be 5:30 let's kick off the second half of your show with your executive recap. the top stories in today's markets. google's ad chief is leaving to join a venture capital firm. his departure coming 15 years after starting with the company. facebook is naming a new head of instagram. adam liseri will be leaving the photo sharing unit his promotion comes the departure of its snstagram's two founders and stitch fix is down 20% in the premarket yeah earnings did top forecasts, but revenue and number of active

users falling short of estimates. active clients grew 25% to 2.7 million. that was the same level as the previous quarter analysts were looking about 2.8 million users for stitch fix. here's how your money and markets look now stock futures down a bit down 86 on the dow coming off yesterday a big gain here, a big gain in asia big gains in europe. we saw gains everywhere. maybe a bit of that hangover today. futures off about 86 points. the bond yields up to 3.05% on our ten-year the yields you have to watch, as we said, they are in italy 3.41%. the italian bond market, i know a little weird, that's the market to watch. oil also your other big story. crude oil not moving a whole lot right now. crude oil over 75 a barrel here. just under 85 a barrel overseas, which means gasoline prices are

sure to rise let's go back to the italian story. we talked about it yesterday bond yields in europe are what you want to watch. let's switch gears to trade. global trade turmoil dominated headlines from washington to wall street, but what is on the agenda now that we struck a deal with canada? ylan mui has more on this. you had that opportunity -- i know you have a new baby at home, so you may be slightly busy, to go through 47,000 pages of wonky trade text. what can we lean about the differents from the usmca and nafta. >> was more like 67,000 pages. >> you always underpromise and overdeliver. >> i think we learned a lot from the president's comments yesterday. we now have a window into president trump's negotiating strategy for future deals. he believes that tariffs can pave the way for trade tariffs on steel and loom aalumm

are still on, and more tariffs could be coming down the pike. those twin threats forced canada to the bargaining table. without tariffs we would not be talking about a deal, for those babies out there that keep talking about tariffs. that includes congress please don't charge tariffs. without tariffs we wouldn't be standing here. >> under this new tri lateral trade deal, mexico and canada get to exempt 2.6 million cars from potential tariffs on autos. they also get a 60-day reprieve from future tariffs. part of what canada wanted was the relief from future pain. there is still no clear off-ramp from steel tariffs and industry and labor groups in all three countries are worried. >> a word of caution, we're not yet at the finish line the agreement still needs to be ratified in mexico, the united

states and canada. but what i can say is that free and fair trade in north america, a trading zone that accounts for a quarter of the world's economy with 7% of its population is in a much more stable place than it was yesterday. we now have a path forward >> tles spehere's speculation ts new deal could allow all three countries to clear the deck and find a way to tackle those steel and aluminum tariffs back over to you >> now that we sort of somewhat settled with canada, let's talk about the big dog out there that's china what does this deal mean now for our trade dealings with china? >> we are still stuck in a tit-for-tat with china the threat of tariffs, each side threatening to go bigger than the other side that's where we're at right now. president trump said yesterday

that it's perhaps still too early to enter into trade talks with china because they're still involved in this chest thumping. i would say it's possible that trump makes good on his threat to tax everything that we import from china before they get down to serious trade talks >> moi mylan mui on the trade s. 67,000 pages >> maybe it was 77,000 >> we'll see you in a bit. thank you very much. let's bring in art hogan from b. riley. everything, art, in this wide-ranging interview is on the table except for the sox i don't want to hear about the red sox. they're good >> i promise i won't bring up the red sox and the fantastic year they had. >> not the 106 victories >> 108 >> excuse me sorry. who are the boston red sox of the market

what's the best story out there for the equity market? we'll get to the worst what's the number one reason to stay bullish >> i think the number one reason to stay bullish is the dominant fundamentals driving this market continue to be intact. we'll hear third quarter earnings reporting when you think about what usually happens before a quarter, estimates guide down. we have seen the smallest guide down coming in the third quarter. third quarter is intact. i would be cautious about what some of those companies say during conference calls as it pertains to input korsecosts, tariffs. in 2019, unless and until we roll over into a recession, probably looks like a standardized year with earnings growth of low double digits and revenue growth of high single digits the fundamental story is intact. >> it is october it is the fourth quarter, which means we'll be seeing the numbers out of the third

quarter. we talked about trade, tariffs, trump, italian bond yields, china. we forget that actually corporate earnings should be, could be, hope to be the main driver for stocks. how are we shaping up for the third quarter in terms of earnings >> so i think that's the important thing. you're right there's a lot of noise coming out of washington. quite a circus going on on all sorts of fronts. trade has been the number one concern. why do we invest in stocks it's their fundamentals, their earnings power the third and fourth quarter looks good we will see the s&p 500 with 20% earnings growth on high single digit revenue growth all of that looks good with the backdrop of an s&p 500 trading looking good all of this should bode well when you think about what sectors doing the best, technology will outperform

we'll see upside surprises in healthcare and consumer discretionary. >> we talked about the red sox, the best story out there what is the worst story? there is always a fear, suddenly we talk about italy and their bond what what you more concerned? >> we have been signaling italy since the election we knew they would drop a budget that wouldn't go over well in brussels it's not as bad as the media is making it out to be, it's not greece 2.0 but italy already mentioned once they would be doing better if not for the eurocurrency that was a hint to the fact of don't push us too hard we have the ability to leave that's one of those things that unwinds over years, not months in the near-term the cliollision between monetary and fiscal policy is the next thing if they stick to their dot

plots, they will go from going from neutral to tightening aggressively that's a concern if that happens in the wrong point of the economic cycle >> we did a giant wall -- when you say blame the media, are you talking about us, "worldwide exchange"? >> no. >> our little but mighty team here on cnbc >> no. i would say put this in context. when you think about greece, five or seven years we were concerned about greece, the problems were different. greece had more debt, they owed it to everybody. italy has a lot of debt but they owe it to italian banks. but italy is a much larger economy. italy leaving the eurozone or hinting at leaving the eurozone is a much bigger event it's not something that the eurozone would be able to sustain. so, you know, even a hint of italy saying we've had it with the rules coming out of brussels, we don't like being

told what to do, that's a larger situation. it's not necessarily a financial contagion because it's much more contained, the banks are better capitalized, but it's something to keep a close eye on it's one of those things that unwinds over a much longer period of time than necessarily what we typically are looking at things that happen over quarters this is something that happens over-years it's the tip of the iceberg, if anything upsets the apple cart in the eurozone and make that experiment not go well, it could be italy not being impressed >> i could not upset your apple cart i tried to throw you under the bus with the italy thing, couldn't do it art hogan, thank you very much. a big upgrade to tell you about that follows your top corporate story yesterday. ge getting a rare upgrade from rbc. rbc moments ago upgrading ge to an outperform. this comes after ge named larry

culp as its new ceo. rbc saying there's a lot to fix at ge, we believe a floor has been put in. the firm upping its price target from $2 to $15 so you're looking at 20%, 22% of upside on ge i'm sure that analyst will appear somewhere on cnbc today. still ahead a golden opportunity. could now be the perfect time to get into one of the worst investments of the last year that's gold. buy low, sell high. and why your morning bowl of cereal could be getting a makeover what will happen to what you're eating right now can be relentless.

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all right. good morning welcome back 5:44 in the east let's find out what you will be talking about today. time for the top trending stories. this horse story is spectacular. >> it is it's like a dad joke on steroids >> as a dad, i support this story. >> a horse walks into a bar, why the long face. well, it's not exactly what the tar tend bartender said this horse crashed into the bar after escaping from its stable

patrons and the bartender scrambling to get out of its path the horse broke some tables and chairs but luckily no one including the horse was injured. if you're on the radio listening, a giant horse walks into a tight bar why did it leave the stable? >> obviously it was thirsty. >> why the long face >> obviously >> you shut me down. come on a little jack dan gields >> you have some >> your favorite breakfast cereal could be getting a makeover general mills says it is returning trix cereal to its former glory they are bringing back the fruit shapes they ditched the shapes a while ago. i was never a trix kid >> did trix ever have a former

glory? >> i don't know. i always remembered the ads. silly rabbit, trix are for kids. >> fruity pebbles because it turned your milk to red. >> apple jacks and tony the tiger. >> lucky charms. >> no. no marshmallows for breakfast, no, no. >> yes yes. >> winter is coming and with it some booze johnny walker teaming up with "game of thrones" to launch a new line of whiskey. one is blended scotch called the white walker the others are called house lanister and that's after characters in the show i got to meet the actor to played jimmy lanister the other day. he was incredible. he took selfies with everyone. >> two real hands, not a gold hand >> a real hand a real hand and i think he likes his sister, but not that way

>> in the show he -- >> exactly >> he really likes his sister. i'm told >> yes you don't watch it >> i do. i'm waiting for the last season which has been in production for six years. >> he did not give anything away >> you can't they have to wrap it up quickly. there's a lot to wrap up there i'm rooting for the white walkers. i hope they wipe out man >> no. in sporting news, the kansas city chiefs defeated the broncos last night, but it was close chiefs quarterback patrick mahomes completed a pass with his left hand to get a first down and keep the drive alive. he is not left-handed. a minute later, kareem hunt scored the touchdown the chiefs topped the broncos 27-23. but the broncos covered, or so i'm told. is gold losing its shine

it's down six months in a row. that's not happened since 1989 does that make gold a good bet and trade's big pay day, the one group seeing returns from this trade turmoil. ♪ a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning. some welcome relief...

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is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org. welcome back let's talk about something we have not talked about a lot, gold we haven't talked about it because gold has been in a long, slow slide down six months in a row something that has not happened since 1989 but you're supposed to buy low and sell high. so is this an opportunity? let's bring in suki cooper everyone is ignoring gold because it's down. we're supposed to buy things that are down, that will have value and go up. do you guys at standard

chartered see value in gold. >> we believe risks are skewed to the upside for gold prices. >> that's a fancy yes. >> yes if you look at the macro environment it's been negative for gold it's been tracking the dollar closely. we're now in a period where we should see fundamentals becoming much more supportive we saw that price dip in august, demand from china and india was strong and provided a better floor for prices >> one thing we probably didn't talk enough about, i think it happened on a day where we had two other big deals was berrick buying randgold, but some of the biggest gold producers buying each other i assume they want to take supply off the market. >> that's increased the interest in zone. it may be a good inflation hedge again and the commodity space is becoming much more excited about the complex. what we look at here in terms of

cost of production, for most producers they're still making money. only 15% of the cost kev curve s loss making. >> like we talk about oil, costs have gone way down how much have gold miners been able to get their costs down >> a few years ago costs were continuing to rise, but they benefited from the currency movements, the lower oil prices until now, all of this has been $940 an ounce, the prices -- that margin has started to widen. but now it will start to come under pressure again >> it's not just gold, but silva is actually down more than gold is this year i know it doesn't get as much attention. all the pressures metals are down what's going on generally with

the pressures metals >> the global trade tensions weighed across the precious metals complex if we look at palladium, fundamentals are robust. >> that's an out to play, correct? >> it is >> because it goes into the catalytic converter of the car >> yes >> shouldn't pressures metals benefit from trade tensions? we've been told when things are scary, buy gold. i'm surprised people are not buying gold because they're afraid of what will happen >> these risks have not been a system systemic risk that made people more concerned about gold. so we've seen localized buying in austria and germany, more

than global demand supporting prices >> suki cooper, thank you very much see you soon. all right. joe kernen is joining us with a preview of "squawk box." i don't know what's worse, the u.s. got its you know what handed to it or they're ripping each other to shreds with the patrick reed comments. >> a controversial guy i saw the tournament where he was arguing with an official and said who do i have to be, jordan spieth to get a favorable resulting? harkening back to one of those major tournaments where spieth was barely on the same golf course he was on a different hole, got a favorable ruling he was able to hit over. so there's some bad blood there. i don't know where that goes you know how any kind of gossip or talk like that will make it into the media

>> i blame the media >> but i don't think it's fake news you tossed to me yesterday right after you said the same thing about gold you're fix atefixated on gold u 1200 >> maybe because i'm boring and i can't think of anything else to say >> did you request the gold guest you had on this is your thing >>i own no gold. >> i'm not saying you got a -- >> that's not what i'm saying. you know, it is interesting as interest rates were coming down, gold went up to $2,000 nobody knew we were going into an eight-year zero percent interest environment then these clowns loaded up at 1800 knowing interest rates

could not go lower >> einhorn down 26%. i could be down 26% without the fees >> i can do that myself. >> easy. >> i might even beat that. >> we have richard fisher, at&t board member he's on for an hour. and we have ron barron >> that's a big one, ron baron >> and now michelle caruso-cabrera works with mr. fisher >> on the same board of that texas financial company. >> all right i hope your gold buying works out better >> thanks, guys. most random but interesting thing you will hear today has to do with lobbying we could talk all we want about draining the swamp, but the number of companies lobbying on tariffs has doubled in two years. so trade fights may be bad for

you but good for lobbying. thanks for watching orwi"wldde exchange." no gold position i like coffee. "squawk box" is next or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

good morning european stocks are under pressure, u.s. equity futures are indicating a lower open on wall street. and stitch fix shares are tumbling more than 20% we'll tell you what the subscription style company reported that is dragging down the stock. and earnings on tap. pepsico expected to report in the next couple of minutes we'll bring you the numbers and reaction on wall street. it's tuesday, october 2, 2018. "squawk box" begins right now. ♪

>> live from new york where business never sleeps, this is "squawk box. good morning welcome "squawk box" on cnbc we're live from the nasdaq market site in times square. let's look at the u.s. equity futures. yesterday the dow was up sharply. s&p was up nasdaq closed down this morning red arrows across the board. after gaining almost 200 points yesterday, the dow looks like it will open down about 80 points s&p down by 8.5, and the nasdaq down 31 points in asia, the shanghai remains closed for a week-long public holiday. the hang seng reopened after a holiday yesterday. down 2.4%. japan's nikkei was flat. then check out european equities you will see red