live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. our guest host is noah black steen from dynamic funds good morning >> hi. how are you? >> good to see you yesterday you saw a turnaround for what happened with the dow this morning you see green arrows across the board this is after the dow ended up 122 points another record high. a four-day winning streak for the dow. right now indicated up 74 points the s&p indicated up by 7 points the nasdaq had a decline of 37 points yesterday, today up 21 points the shanghai composite is still

closed nofor that week-long holiday. hang seng was off by 34 points and then in europe, you will see that things are mostly higher. it looks like the cac is up. italy and spain higher italy the big gainer, up by a half percent so much pressure on italian stocks because of its stand offwith the eu ten-year yielding 3.073% couple of stocks to watch this morning big stories happening. jcpenney shares are soaring. the department store naming jill soltau as the new ceo. jcpenney hit a record low last week on news that the cfo was leaving. the retailer was without a ceo after the departure of marvin ellison since may.

>> that was a company that was basically left for dead. getting someone who is a qualified ceo in, gives life to that stock >> $1.66, it's all relative. >> goes back to blah we talked about before, it's a hail mary, you will try and see what happens. >> shares of tempur sealy are up today. mattress firm is set to file for bankruptcy this week, and tempur piec sealy would benefit from less competition. tim cook said apple would be open to some level of government regulation, and says apple is not in the business of selling private data

>> the narrative that some companies will try to get to you believe is that i need your data to make my services better don't believe that >> the company came under fire this year after th decision to host users icloud accounts inside the country, and that could give beijing access to users data. >> enkrupp shin encryption in the world is the same for us we don't design encryption for the u.s. and do it differently everywhere else. it's the same. it's encrypted in china. i can't produce the content. i can't produce it in the united states either. if you lock your phone in china, i can't open it. >> shares are up more than 35% this year. we talked about the issue of the cloud service that moved to china and why they did that and how they did that. apparently chinese users were being throttled by the chinese

government when the servers were based in the united states legally apple, the way it's set up, you almost have to keep them there. having said that, my understanding is that the encryption key is not with the chinese government in this case, and that the bigger worry was that if there was a backdoor built in, not that the chinese would be using it, but that the chinese would be worried that the americans were using it. it gets complicated. >> i like the way cook talks gives -- throws shade at other tech companies remember that one situation -- >> right after that happened >> he has no problem with the other -- >> he happens to be a fundamentally different business >> which allows him to do it doesn't mean he needs to do it every chance he gets we think of it technology, moving into the future, how

great things are >> there have often been rivals among these guys >> i like that he does it. >> they are partners in a way that the iphone is a beneficiary of facebook, if you think about it, or a beneficiary of google >> frenemies >> if you take them all out, the functionality of the phone is less valuable. >> we'll see how this plays out. bez bezo bezos. >> bezos >> i'm jgoing with jeff on this what does bernanke say >> the beshgs rna nshbernank. jeff bezos weighing in on everything from amazon's decision to raise the minimum wage to $15 an hour to space here's what he said last night in d.c >> thinking about this, trying

to decide do we want to change, we realize we made a decision. you can offer competitive composition or you can decide to lead as soon as we framed it that way, we're like let's decide to lead i think people will follow >> bezos also addressed his other company, blue origin saying it's the most important work he's doing now. we have mark armstrong on later. >> speaking of space >> neil armstrong's son will be on the auction starts october 12th, the same day as the release of the universal picture. >> back to bezos, you're not sure if this is the right move or not >> they have a lot of employees. >> they do. >> 250,000 employees could be impacted, including 100,000 seasonal workers >> i don't know whether everybody else has to match it all the retail stocks were down yesterday. >> so many of these big retailers have said they're on a plan to get there by 2020, 2022, so they're jumping in front of

the queue. it will help them because they need 100,000 seasonal workers, and they're getting rid of some of their stock compensation. >> it's been three, four years since i said wall smamart shareholders have been enriched, maybe it's time profits are not quite as flush and maybe workers get more maybe that's a good idea nobody wants the government -- we see what happens when seattle -- >> california is already saying they're getting there. >> get some leadership going for it >> it happens organically, which was andrew's point -- are we still talking about that >> i'm very happy to talk about that >> tencent music going public in the u.s.

it would like to raise $1 billion. reuters says that listing will likely be on the nasdaq. >> wow in other ipo news, james bond's favorite car making its debut on the london stocks exchange aston martin tumbling on the first day of trading they priced at nearly $25 equivalent u.s. share giving it a market value of nearly $6 billions >> lenar posting better-than-expected earnings a little bit ago quarterly home orders rose 62% wti trading near a four-year high crude above $75. jackie deangelis joins us with more on that part of the story >> crude has been steadily

climbing higher ahead of the deadline to impose iran sanctions next month it's not like we haven't known about this, but events like this cause futures traders anxiety. in this case because the amount of oil has comes off immediately is unknown it will depend on the nonallies, their crude purchases, and if iran starts discounting oil, surely there will be buyers out there wti close to a four-year high. and the renegotiation of nafta, all these factors make people think demand trends will be strong wti spread to brent is widening. buyer beware, in the last month wti is up more than 7%, brent up 9% sometimes buy the rumor sell the fact can hit like a ton of bricks when it comes to the oil

trade, that said maybe the market is blabsialancing out and there's some evidence that china is not importing as much u.s. crude because of the tariffs. what do they do if they're not importing u.s. crude, they are taking brent >> they will get it elsewhere or take brent the main threat is that they'll buy the iranian crude and buy it for less >> the sanctions go into effect november 1st >> yes >> thank you very much joining us now is steve parker from jpmorgan private bank what is thematic -- is there a non-thematic >> that's a great question i don't have a counterpart >> you don't have anyone and know where blackstein. we've had a lot of issues. rosenstein >> rosenstein it is.

feinstein. >> not related >> you're not related. but in your case, it's blackstein >> did i say "stine? >> no, as part of the nafta deal, you get to come on "squawk box" every quarter now wasn't that part of the -- >> i'm the first trade under the new deal >> you are canadian. >> you get a fourth drowned draf round draft pick >> you love what is happening here in terms of policy. you point out global stocks are down 5 to 20% this year. you talk about the dow emerging markets are worse than that you say at this point the divergence between the united states and everywhere else is policy tax reform and deregulation. can't be overstated. you love what is happening in terms of the back drop >> the united states has done it that's why you're -- people are

looking for 2.3% gdp growth in '19, i think it's closer to 3% next year. i think a lot of the growth we're seeing is because of the regulatory and tax reforms i think the regulatory side is down played way too much it has a bigger impact than people appreciate. abe hasdone it, in japan you look at 30 plus years of monetary policy that did squat, now you have abe in 2012 with the tax cuts in '16. the two countries in the world that put in tax cuts and deregulation are the two growing. europe will raise interest rates. if they don't cut taxes and regulations in europe, just raise interest rates, their markets are foreshadowing what will happen. >> you have been coming on for 20 years at least. >> since new jersey. >> do you manage $5 billion personally >> yeah. >> honest to god >> yeah. >> okay. instead of thinking this year as a front-end loaded stimulus hot

market adding to the deficit, you think next year we do 3% so you think there's structural changes that are beneficial, not just priming the pump? >> yes >> you manage money, you're not just an economist that doesn't really manage money? >> correct and i don't believe the sugar rush either. >> if you're wrong, you're in trouble. >> steven, even though we got nafta, as we said, you're worried about the trade overhang that could be the problem and the inverted yield curve >> those are the things we're hearing from clients i think both are overdone. trade tensions, what we've seen put in place thus far, clearly they don't have the fundamental impact to derail the momentum we're seeing in the economy and in the corporate sector. i think the big overhang is from a sentiment perspective and markets have voted saying the u.s. will be the winner, emerging markets will be the loser. i think the pendulum has swung

too far. there may be an opportunity to buy some parts of the market that were most directly impacted because of trade fears >> we will have max baucus on later on we will hear that the new northwenafta is not that much different, but that trump will be sealilling ia one of the greatest deals in history. the same thing could happen with china. we won't hit an absolute grand slam home run. we might settle for a single or a double with china, then we'll make it sound like the greatest thing that ever happened doesn't this indicate that maybe we settle with china before we get to the worst-case scenario >> i think that would be embraced by investors. there's a survey of fund managers, they asked them their outlook on u.s. profrt profitsh next year. the sentiment around the u.s.

profit picture over the next year was the highest in 17 years. 60% of fund managers had a positive view on the u.s 40% had a negative view on emerging market prospects. i don't think that can continue. i think either the trade rhetoric tampers down, the dollar settles down, or if things escalate on the trade front and the dollar continues to rally, i don't think the u.s. will be as imper v usviouimpervs >> there's a lot of bluster. >> you open dairy a bit. i think the rules of origin are much better. the content in automobiles is higher >> don't we do the same thing with china >> people don't realize this is a bit more of a chess game the people negotiating it from the u.s. side, if you look at those rules within nafta, including getting rid of the deal if someone does a deal with

klei china, this strengthens north america in terms of rule of origin and content this strengthens the bargaining position with china the next round. >> the rules of origin, that's something everybody points to and said china gets around that by shipping into canada and mexico >> the content per vehicle going up for north america there's a lot in there that may be playing for the next ye negotiation in this existing negotiation. i think it will be a longer negotiation than people think with china >> the yield curve, you said it could be a year. it may indicated some things about the economy but not about equity prices. are we on the clock now, if it inverts we only have a year left >> looking back the last 50 years, we had seven economic cycles yield curve inversions. but it's not a good predictor around timing equity markets

markets tend to peak about a year after the yield curve inverts. you see some of the strongest returns in that last part of the cycle so on average you get a 13% a year ahead of reversion, another 20% before markets peak. even if you think that inversion is coming, the yield curve is flattening, you don't want to stay selling your stocks you want to stay invested. >> thank you both. noah will be sticking around what's in the agreement? you get an hour today? >> i get an hour i have maple syrup >> we get plenty of maple syrup from judd gregg. >> you brought maple syrup no >> hockey is starting. >> is that going to get taxed? >> no. the maple syrup. when we return, a possible comeback for toys "r" us it could happen. we'll tell you what lenders did that could bring back geoffrey

giraffe. as we head to break, a look at the biggest premarket winners and losers in the dow. your company is constantly evolving.

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welcome back just when you thought you ha seen the last of toys "r" us, the company's top lenders canceled a bankruptcy auction at the last minute where they would have sold off the brand names and probably the most important part of the story, geoffrey the giraffe mascot the company proposed a reorganization plan that would open the doors to merchandising and maybe open some stores in the future so maybe they will not go away this holiday season forget about it, but going down the road the

brand could exist. >> i knew about this from last night. my son saw when it happened. it's unsettling. he's 16 now. you grow up with toys "r" us, and it's going away. >> there's not a replacement for it i've been looking for toys for my daughter's birthday, impossible >> kids know -- those phones, they know everything that's going on politically, everything. >> that's unsettling in itself you can no longer monitor -- >> i just worry they can never really compete against amazon. >> i don't think that's the case >> the great mistake of the company, they did a licensing deal with amazon to do all of their stuff online early on they were paying amazon $50 million annually to sell their products for them. that's when this whole thing went the wrong direction >> as a consumer, it's a pain to go to amazon to go to target, they don't have the selection toys "r" us did.

that's one of the few places, i want it laid out and characterized. >> my kids are older, walmart doesn't do it for you? >> there's not a walmart near me target beefed up their holdings, but only three aisles. toys "r" us was the entire store. if you want to find a gift for a kid, you go through the aisles there. >> my goal was to buy stuff as quick as possible and get out. >> apple uses who dread updating to the latest ios, the xhaen has company has an incentive with 12.01 ios, there are new emoji options. you can have red hair, bald, mangos, lobsters, and bagel

emojis are now included. the screen time feature has saved me i discovered i was using social media all the time looking at twitter for hours a day. it was ridiculous. >> i'm embarrassed i look at my battery time it's 33% twitter >> i said to myself about five days ago, half hour. i said half hour >> does it shut off and not let you in it says after a half hour i don't want to be on twitter, facebook -- >> is there an override? >> there is an override. you have to put a password in each time. >> you know this because you're doing it constantly? >> i've gone over a couple times. as a result, i look through quickly and get out. i find myself -- there was something i was doing, i was at a meeting, i would be there not

paying attention i said i can't do it later i'll get caught by the screen time police and the screen time thing can work for your kids >> do you not take meetings now because you can't sit and pay attention without watching twitter and facebook >> that's the next level it's only five days in my only point is i'm recommending you go out and get this >> people use those emojis -- i used a smiley face there's so many. i can't see what they are. they're so small when people send them to me, if i get it on my computer, it's like not an emoji, i don't know what it is it's weird punctuation to people use those a lot and be specific >> yes, all the time >> you know the annaemojis, so

you can turn your face into a monkey sidney loves when we face thytie and i can turn into a monkey too much information maybe >> and also siri does more stuff? i never use her, it, whatever it is i never use that is it better >> i don't know. >> i read that they're asking me to do that i've hesitated >> there are malfunctions in the past >> you said don't do it right away >> usually the day or two after there's battery issues or something. >> my battery goes down quickly now. is that an older phone >> do you know what your battery health is? >> 90% that's the problem once you get basically under 93%, 94% -- >> when do we get an upgrade >> a corporate upgrade >> yes >> do you have a corporate

phone? >> yes >> i will talk to the corporate people for you >> you will? >> i know people >> when we come back, ipo watch. upwork expected to begin trading on the nasdaq this morning the company's ceo will join us next. right now as we head to break a look at yesterday's s&p 500 winners and losers

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you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back to "squawk box. among the stories front and center instagram back up after an outage overnight the #instagramdown began trending on twitter. the outage lasted approximately 45 minutes don't get startled when your phone starts buzzing this afternoon, it's only a test. that's right at 2:18 p.m. eastern time today you will get a message from the new presidential national alert system with it president trump can issue alerts to all cellar devices, however the president can't use it for anything less than a national emergency. don't worry about extra special tweets >> for now >> you won't see political messages popping up on your phone. >> you can use it in case of war. does that count for trade wars.

>> a skirmish. >> would you sign on for -- >> for what? for political alerts from the president? you might. >> no. >> like an entertainment subscription >> you would want to know. >> it could be a subscription service for the entertainment. >> when i first heard it, i was like oh my god i would like it. >> i know. >> i don't know. it is jobs week in america the payroll number will come out at 8:15 today. the number to beat is 185,000. look at u.s. equity futures. dow jones opening up higher, 76 points higher. s&p 500, we'll call it almost 8. the nasdaq opening up about 19 points higher. chicago fed president charlie evans speaking in london right now, among the headlines he says the u.s. economy is

firing on all cylinders and expects strength to kornt ovcone over the next few years. sounds like noah blackstein. >> evans adds that he supports a gradual -- i guess like this, rate hike tath he believes economic risks are balanced he's more comfortable with the inflation outlook today. he thinks the fed is close to achieves its dual mandate goals. >> shares of upwork are expected to begin trading on the nasdaq this morning the company priced its ipo last night at $15 a share, above expectations of $12 to $14 joining us now is stephane kasriel, the ceo of upwork thanks for being here.

>> thanks for having me. >> so you provide a connection between freelancers and the companies that want to hire them 30% of the s&p 500 actually use you for those services >> that's right. we help companies find developers, designers, lawyers, accountants on a freelance basis throughout the country and globally >> how many active freelancers are we talking about >> last year 375,000 freelancers earned money on upwork and they worked with 475,000 clients. >> what does that mean for you how much of a cut do you get for every one of those links. >> like many marketplaces, we take a piece of the transaction, typically 14%, 15% >> how do you keep those freelancers on your platform instead of having the company and those freelancers once they have those connections from going around you >> we do the same thing that other marketplaces do. you monetize where you create

value. we create a lot of value when people meet each other so the fee at the beginning of the relationship is higher, it slides down over time. a lot of the business on upwork is highly recurring. working can the same clients on and off for many years and over time it makes sense for us to reduce the fee >> why go public now. >> we think the market is ready for us and we're ready for the market we've been preparing for this for many years there's a shift happening in the work force the baby boomers are retirinretg they are less likely to be flee freelancers. what's new is driving growth in our enterprise segment today is the millennials are no longer young like they used to be the oldest munlt millennials, tr 38, they are in in position of decisionmaking authority >> tough question, it's a question that comes in part from what you heard with amazon

raising wages in the past day, and what's happening with wages. there's an argument made that services like upwork have actually kept wages down and you hear online that these horror stories from freelancers who say that, you know, because, by the way, a lot of them are u.s. folks, they might be competing against developers in india or in other places all of a sudden the wages across the board come down. because of the kind of work, unlike an uber driver where you know you're getting from one place to the other, it's specific how long it will take, some of these people talk about how they spend days on end for $20 writing up pages they have to reedit and edit how do you fix that problem? >> so we've really carefully designed the business model of this company so that we make money when freelancers make money. it's in our best interest to make sure people are as busy as they're willing to be and they earn as much per hour as they're willing to do.

so something we've done, last year we launched a u.s.-only website where u.s. freelancers are only competing against other u.s. freelancers so he they have rates that are competitive. >> so the buyer has to go on to that version of the site >> buyers get to choose. generally the marketplace is constrained by the number of buyers or the number of suppliers. in our case, it's amazing to be a freelancer on upwork over 10,000 people apply to upwork every day i wish we had jobs for 10,000 people a day, but we don't >> do you screen every individual >> yes, it's basically an apply to join process. many people who apply today will not be returning to the platform it's mostly formality.

2% of people who will get a job today for the first time, they will get the job that the established freelancers don't want to take so it's a trial period if you do well, progressively you get rated by the clients every single time. at the end of every job you get graded so then you get to progressively a top-rated freelancer who get first dibs at every job. they are making a lot of money the top freelancer last year made 2$2.5 million so if you're good, you can make a lot of money >> it's a positive ipo market right now. 84% of the companies that went public lost money 12 months leading up to the ipo. so you lost 7$7.6 million in th ser

six months prior, so june. what will you do in the future this ipo event is not about raising money. we have cash in the bank we are cash flow -- >> you are 7.6 million in the six months ending in june what do you do starting june? >> we invest in profitable growth we invest in projects that bring us goods over time in many cases you incur costs up front. >> are losses narrowing? >> it always depends how you define losses in these things. we are profitable on a net adjusted ebita basis on cash flow, we are break even and trying to stay in that range. on a net income basis there's all sorts of things, including stock base comp and others that will make the number be negative >> those real costs. >> absolutely. >> so net income you would expect to be positive. >> from a cash standpoint, the

company has been close to break even -- >> does that bother you that it's the highest percentage of ipos that are losing money since the year 2000 -- in 2000 it was 81%. >> the number of publicly listed companies has fallen in half i think the wilshere 5,000 index has been the wilshere 3,600 index. >> does it bother you that they are losing money >> it depends. if they are losing money with no prospect at making money, yes. but you have to go on a stock by stock basis. >> historically market froth can be measured in ipos in the past, can't it >> sure. >> are we there yet? >> the size of your company is a couple billion dollars >> in terms of market cap. >> when this is a 2$200 billion

ipo, give me a call. >> i look forward to it. >> you're a big wig in davos, too. did you see that you're co-chairman of something? >> yes >> probably run into you -- >> joe would like a better hotel. you know the guy he did nothing for me. klaus von -- >> yes >> he laughed at me. >> you asked him that? >> i asked someone to ask him. >> it's a small ski resort a lot of people want better hotels >> i want a room like andrew >> andrew was next to you. >> that's right. >> thank you very much for coming in. >> thank you for having me >> good luck later >> coming up -- you remember >> yeah. >> the three-hour ride up there. that was touch and go.

a bearish call on at&t we'll take you live to the sone conference and at the top of the hour, max baucus will join us to talk about president trump's tariffs and the renegotiated nafta deal. and we'll talk tech with the ceo of foursquare.

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welcome back an interesting story out of china. the country's tax authority ordered a-list movie star to pay 1$129 million in overdue taxes and fines. >> that's a number that's a number for an actress she's 37 she owes 129 million how much did she make. >> it's a 1$129 million u.s >> i know. >> this is actually indicative of a much bigger thing going on in china >> they have two sets of books >> one contract local, one contract -- but my belief is a lot of the problems in the chinese market have been a swath of regulations, whether it's on video games, social media,

healthcare in terms of lowering the cost of the healthcare, and including this taxes for ceos who are dominated in china and have stuff offshore. there's a lot of changes >> officials say she used a sham fill contract to evade taxes she is 37 years old. she disappeared from public view and social media back in june that sparked wild speculation about her whereabouts. chinese media said fan was released two weeks ago from residential surveillance at a holiday resort that is used to investigate officials. the report said she was transferred to beijing for further investigation. in a letter posted, fan says she accepts the authority's decision and apologized to supporters she appeared in the "x-men" and iron man film franchises since june china has been examining tax schemes with movie

stars where they have dual contracts. the actors are being offered a grace period, no jail time in exchange for paying back taxes >> this is repalestiis remindine trump family this is what they were doing for 20 years >> how great for my new jersey state taxes, that would have been an answer >> just not paying it? two sets of books. but thank you for getting to that >> you know, we'll do a whole story on what's going on in china, our president is doing the same thing from. >> definitely. coming up next, we'll take you live to the sone conference. we'll talk to an investor who will explain his short call on at&t ence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet.

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welcome back to "squawk box" this morning the sohn conference kicking off. our next guest is sounding the alarm on at&t. he says it might be a good idea for credit shorts. joining us to explain this idea is todd westus from olympic peak asset management explain your theory, sir >> okay. well, thanks for having me

so at&t credit spreads are very low. there's a clear disconnect how credit has performed since early 2017 credit spreads have been unchanged at 86 basis points while at&t equity has underperformed the s&p dramatically year to date 2018, at&t equity has been down 9% while the s&p has been up 9% this is a company that has a ton of debt on an adjusted basis since 2007 they have not grown organically. we've seen negative organic growth they've added $125 billion worth of debt. they've acquired only $16 billion of ebitda largely through m&a. and there's a ton of operating leverage this is a very mature business revenues have been declining if you look at the core wireless

line and paid tv business, revenues have been down mid to high single digits for the last -- >> does your theory rest one way or the other at all on the transaction with time warner or is that irrelevant to the way you're thinking about this >> that is swheparate. it does diversify the business overall. but having said that, half of that business is being disrupted as well as younger demographics are just consuming significantly less tv. anywhere from down 13% to down 45% since 2010 in terms of hbo and warner brothers, that's a good asset. but there is more competition. if you look at scripted originals like "game of thrones," there's been 487 scripted originals in 2017 that is 25% higher than three years ago. 85% of that is from competition

such as amazon, netflix, and hulu. >> do you think there's a higher margin business to be had in 5g when and if that gets rolled out? >> i think that's very, very long-term. you know, this thesis is predicated on the fact it's over four times levered it's still rated investment grade. it's perceived to be a risk-free asset and there's a lot of operating leverage limited downside if we are wrong, but substantial upside if we are right >> and just to be clear because we're running a banner at the bottom of the screen that short cased at&t, do you have the same view on the equity side? >> this is a credit shore. we think credit overall is overvalued we think synthetic credit is also overvalued. this is a bbb or one notch above high yield name. you go from one investor base to

another investor base. high yield overall is a weak market structurally. over 40% of high yield is funded through etfs and mutual funds. at&t would be 10% of the high yield market >> it's noah blacksteen here is this a straight short or are you pairing this against -- spread widening or do you think this credit is going significantly lower? >> yeah, we view this as a straight short just given the price. there's limited downside if we are wrong. there's limited cost to carry if this takes three years versus one year so we don't feel a need to pair that with the long on the other side >> okay. todd westhus, we thank you it's an interesting idea i'm sure we'll be hearing from the folks at at&t on this. if we do, we will bring you their reply.

thanks so much when we come back, we're going to talk about the trade war with china with max baucus and then later, it is jobs week in america we'll get the adp private payroll at 8:15 eastern time "squawk box" will be right back. making my dreams a reality takes more than just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, 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.

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stock market in rally mode the dow closing at another record high. what is driving this market? a look at what you need to know for today's trading session straight aid head. history up for auction >> that's one small step for man. one giant leap for mankind >> neil armstrong's son mark joins us to talk about his

father's legacy and the memorabilia you can own. plus bezos beating competitors to the punch what he said about the company's reasoning to raise the minimum wage for employees and will other retailers follow suit? the second hour of "squawk box" begins right now >> live from the beating heart of business, new york, this is a "squawk box. good morning welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along with becky quick and joe kernen. let's show you what's going on dow would open up about 72 points higher. and the s&p 500 up about 7.5 points couple headlines to bring you this morning lennar posting better than expected earnings in the last hour revenue also topping estimates

revenues from home sales increased 83% in the quarter quarterly new home orders rose 62%. then take a look at jcpenney shares they are soaring this morning. the department -- $1.70. jill soltau is the new ceo jcpenney hit a record low just last week on news that its cfo was leaving the company. the retailer had been without a ceo since the sudden departure of marvin ellison who left in may to become the ceo of lowe's. and tim cook, he's been speaking out on everything from data piracy to china. cook said apple takes privacy very seriously and would be open to some level of government regulation >> the narrative that some companies will try to get you to

believe is i got to take all of your data to make my service better well, don't believe that whoever is telling you that, it's a bunch of bomb >> take a quick look at shares of apple right now with $229.99. stock futures pointing to a new record high once again today. over the last three months, the average dow 30 stock is up by 11%. dom chu has more on this record rally. dom, good morning. >> good morning. well, as we take a look at the way the markets are shaping up, the dow was late to the party in getting to that level, we claiming pit now we're looking at other areas of the market that have been in that leadership position there are signs and certain themes developing there. if we take a look at the markets overall, right now the s&p 500, there are about a handful of stocks up above their 200 day

average price. about 31 stocks within the s&p is trading at least 20% above that long-term trend line. so as we take a look at some of those names, they are familiar ones and we'll kind of show you the ones we're talking about to give you an idea of the type of stocks there amazon is 22% right now above its 200 day average price. that long-term average apple, 23% above hess is 27%. interesting there because it's one of those indicative oil price companies in the list of stocks advanced autoparts, one of a couple of autoparts companies. it's 31% there and amd speaking to this idea that chips and semiconductors and just technology broadly is good for the leadership. remember when it comes to that retail side of things and also the tech side of things and also what's happening with financials, one of the bigger

things we want to watch is that leadership position of technolo technology what's lagging behind right now is the financials. and tech and financials, the conventional wisdom has been they lead to the upside. right now financials are not participating. we'll see if technology in that theme can lead >> for the latest on the trump trade agenda, let's welcome max baucus who served in the obama administration he also served as the u.s. senator of montana you wanted a deal with canada. it wouldn't have happened. >> i don't think it would have passed the congress, frankly >> i was trying to figure out if you were in favor of the original nafta >> i was, yeah >> were you voting -- >> yes we worked very hard to get it passed >> were there -- so it's been a positive overall >> i think so.

you know, it helps we're trading. it sets parameters, some standards. not perfect, but it's better than nothing >> even this new -- i don't know what you want to call it new nafta, it's around the edges, the improvements would you say? but there are improvements >> it depends on your perspective, obviously some call it nafta 2.0 i think it's 1.1 just a modest change >> but you're gratified that it happened >> yeah. it's an agreement. now there's a deal so they know what the rules are >> even if it wasn't a huge step forward, you think it takes away the uncertainty. >> some of that. the auto industry is happy because they know what the rules are. on the other hand because of rules of origin, consumers are going to have to pay more for cars dairy industry gets a little bit out of canada.

>> your expertise as ambassador to china, they're looking at this dpop they say, uh-oh -- >> there's no question they're saying uh-oh no question. >> because this means that we have a more united front to come after them >> we have a more united front in addition to that, there's a provision in the agreement that says if canada or mexico start to negotiate with non-market economies, china, that means that the agreement is invalid. >> that's really important i haven't heard people talk about that the other thing noah blacksteen pointed out, the rules of origin are tighter. >> it's a much greater problem with china over time trump tariffs are one thing. then you have this vision in the nafta agreement or whatever it's called and other measures the united states is taking involving

china. >> and the problem becomes what? >> we're moving more towards a cold war this time it's economic. technology and china is trying to dwob its own sphere of influence in asia. i think it's not good. we have -- because we're not talking to each other. we don't trust each other. when you don't trust each other, you don't start dealing with problems >> did we trust each other a couple years ago >> more. but on the other hand we americans, from my perspective, just kind of talked a lot. let the chinese talk a lot trump's right, i think, in saying there's been a problem with china china has been protectionist trump's wrong in the way he's trying to approach the solution. china's just going to back off with the tariffs and the chinese don't know who to deal with

once they strike a deal with secretary mnuchin, then trump undermines it. chinese don't know who to talk to >> if past administrations have been wrong to talk and gloss it over and this administration has been wrong in slapping tariffs how do you get them to the table for progress >> trump has a concerted effort saying, hey, sorry china we can't let you get away with this anymore. but it's got to be a solid, constructive way we were talking to them. they want to do a deal,chinese do but they also don't want to lose face >> in terms of -- let's at least confine it as the economy at this point by 2030, they have a stated intention to just -- i don't know if bury us is the right word but they want to win like we do >> i take my hat off to them

>> we don't want them using our -- we don't want to help them achieve that goal by letting them -- >> i don't know if i agree with that look if you're a country, you want to do well for yourself we should develop our own technologies and so on and so forth. >> but playing hard ball isn't necessarily, there's no other way in this case >> as i said, as combination of concerted effort called hard ball, if you will, second you've got to talk reasonably and privately. all these tweets and calling each other names does not help >> do you think it helped in terms of the new nafta agreement? >> north korea >> do we have to treat different countries differently? >> well, my judgment, we made a big mistake when we got rid of this thing called transpacific partnership. that was a trade deal all working together >> neither party was going to go for that >> all countries are going for it. >> neither party in the united

states were going for it. >> both were saying they weren't going to do it >> as ambassador of china, the most important geopolitical matter to cross my desk was tpp. so important, i took it by myself and flew back to washington two months before the election i lobbied 45 members of congress you're right it got nowhere hillary tubed it trump tubed it >> when you were becoming ambassador of china, it was 2014 i guess you were confirmed 51-49. wait a minute. you were confirmed 96-0. >> who knows >> i put that forth without comment. there was a senate that confirmed you 96-0 you're a hell of a guy but it wasn't that long ago. only 2014. >> i want -- >> oh, i know. go for it. >> it's a big story. it's on front page of "the new

york times" today. and a lot of people are talking about it this is about trump and his taxes and -- president trump, his taxes, his father's taxes whether they committed fraud along the way. and whether his reputation as a business person is, in fact, real given that he previously said he was loaned a million dollars from his father and at least according to this article, that seems at minimum highly suspect. >> this article says more than $400 million >> at minimum he was given $60 million and looks like they were creating sham companies to pay him. should happen? >> first, he should release his tax returns. all presidents have. i did. members of congress do a public servant should release his returns. >> given that's not happening -- i was saying earlier if a c eshs -- ceo of a publicly traded company, if this background like

this landed this morning, the board would hire private investigators. they might suspend all sorts of things might happen this is the ceo of our country >> you've got to get the facts. >> no, you don't what do you need facts for >> mueller is looking into this. the irs is looking into this congress probably will too i mean, it's just -- >> you could wait. >> i agree with you, it doesn't smell good but let's wait before we know what's going on. >> we could look at it get the irs -- they looked at it a back then. >> all i want to see is his returns. >> you going to decide for our producers what stories we should do today you should talk to them. just suggest it to them. okay all right, good. max baucus, thank you. >> appreciate it when we come back, the ceo of foursquare talks about about

the company's transition from a consumer facing social app to an enterprise platform using location-based data. just announced a new round of funding. we're going to talk about that after this break plus jeff bezos addressing the company's decision to raise the minimum wage for all employees stay tuned you are watching "squawk box" here on cnbc (woman) learned to play an instrument.

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. all right, everybody welcome back jeff bezos weighing in on amazon's decision to raise its wage to $15 an hour. >> thinking about this, thinking do we want to change, we realized we made a decision. you can offer competitive compensation or you can leave. we said let's decide to lead i think people will follow >> bezos also addressing his other company blue origin saying it is the most important work he's doing right now you can read more at cnbc.com. location technology company foursquare has announced a new funding round. the last time was in 2016 and it

helped them towards becoming a platform joining us now with a look to what's ahead, the ceo of foursquare tell us what this means. >> foursquare is the location of the internet this round led by simon ventures which is an arm of simon property group is going to guf us the fuel to start investing if you think about the location features on your phone, most of the time they're powered by foursquare technology. if you type a place into uber, if you get matched on tinder to people who like the same places. those are all examples of foursquare technology at work. and we're going to take that into he retail world and general media pub establishing world. >> was what that mean, exactly you're going to spend this money, i assume to develop what? >> well, you have to understand, today foursquare helps media

companies and brands and apps create location features and so as i said, examples of our customers are like apple and microsoft and tencent and the like 90% of commerce still happens in the real world for all the attention on amazon. that amazon's 4% of consumer spending over 90% takes place in the real world. and so we want to help those companies prepare to take on amazons of the world that's what we're doing. so we help marketers reach people based on where they go in the real world we help apps be aware when you walk in a store. >> like the advertising i get online and make it applicable. >> exactly >> do you worry at all about privacy because washington is looking at this closely now? >> absolutely. we started as a consumer app and so we think about privacy and enhancing consumer experiences in everything we do.

100% of what we do is consumer opt in a lot of the apps that use us say would you like to opt into background location. about 60% or 70% of people choose to participate and about 30% don't. >> what do you do with that information? are you sharing it with your clients? >> everything we do is -- over 20 million phones we always see on that creates a nielsen panel of the real world foot traffic. we were able to predict that chipotle sales were going to be down 30% before they announced their earnings >> long-term, though, and i was talking about screentime in the 6:00 hour. how screentime has changed the way i use the phone. because i now have a very clear display of what's going on with my phone and i'm not limiting the amount of social media i'm using.

i'm assuming over time apple and others are going to develop more and more features so it becomes more and more transparent to me once i've opted in the first time, how to opt out that becomes harder over time. so my question to you is long-term, is there a threat to your business that people once the system becomes more transparent, that people click off the location features for some of the apps by the way, it's very hard to use uber without the location feature on but there are other apps where maybe i'd be inclined to keep it on >> this is why i think foursquare is so advantaged here everything we decide to do is for the users. we're not helping some flash light app asking for your always on location. what good is that to you we're helping do contextually weather alerts all the cases where we make the experiences better, the users

opt in because it makes the experience better. in a world where you don't want to open a lot of apps, you want the app to tap you on the shoulder at the right time to remind you of the chance you have a chance to get 50% off or there's a weather alert. all these things are really valuable apple already reminds people that you're opted into location sharing. it's part of the system doing shoddy things that we don't think are best practice and privacy that will be hurt over time because why should a location be on for your flashlight app >> at some point you're going to have to exit for your investors. you sort of set yourself up as switzerland. it would seem challenging to me to sell to one of the big fang companies. if you sold to amazon, all of a sudden everybody else want want to do business with you. it becomes -- it's actually a much more complicated problem than other companies have. and maybe ultimately that means

you need to go public. there's a company we thought was going to go public years ago how do you think of that >> we are the independent switzerland. if you think about facebook and google there's only three companies in the world that can understand when a phone moves out of your pocket that's google, facebook, and foursquare we are the independent option. so our customers which include people like microsoft and apple and tencent and on and on, they look to us as an independent company. facebook and google are after domination we are the switzerland yes, i think the location space needs a public independent company at some point that has the wherewithal. >> can i just ask one quick question you said you saw chipotle sales will be down 30% before they reported, did you tell anyone?

>> there is an analytics product that several use yes. >> do you see any other retailers that are in trubouble that we might not know about >> i'm not going to make any stock picks today, but one thing we're doing is helping the retail sector compete with amazon so we looked at a study last year of what revives the malls the number one thing, ad a burger joint shake shack at the high end. >> how much does the product cost >> some of them are paying a million dollars. >> let me ask you a fair question you just said and i believed you that you're not using a flashlight app because the whole product is based to help me. >> yes >> the contract that -- the compact we have is you're helping me, i'm helping you because you're selling advertising against it right? what do you think i knew up

until this moment is that you're -- i accept id anonymously, but there's now a new value. this goes too who really owns the data and who should be getting paid for the data and how that should work how should the customer think about that it's one thing if the product actually helps me on an individual basis it's another if it's also helping somebody else in a much more material way, perhaps >> you know, i think consumers have the right to choose and they are participating in an ecosystem. it has to be valuable to consumers. people who say facebook should charge and not have advertising, i don't buy that america is a great tradition of free media and services that are powered by advertising analytics. we're part of that that means -- that's how spotify can offer free music to millions and hundreds of millions of people i believe in ad supported capitalism i think it has to be controlled.

>> i think that spotify may sell the information to record companies to understand who's listening to what. i don't think the information is then getting sold to investors who are then placing bets on things >> look at -- are you a member of a supermarket loyalty card? or a walgreens or cvs card everything we do is annonimized. so the traditional media is much more personalized. everything we do in digital at least at foursquare is entirely privacy. it's this broad analytics. there are ads working with what kinds of demographics and which messages are working >> congratulations on the new series of fund raising come on back >> got a lot to talk about bring stock picks next time. when we come back, the market hitting record highs. looks like we will open higher

this morning so what's driving things is it trumpnomics? or other it up next aston martin hits a bumpn the road we'll have details after the break.

coming up, a collection of neil armstrong will be presented by heritage auctions mark armstrong is neil armstrong's son and the president of heritage will join us in just a bit ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too.

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good morning welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square among the stories front and center, mortgage applications remain flat. declining to 4.96%

also a new report finds that u.s. retail vacancies remain flat at 10.2% in the third quarter. the mall vacancy rate increased during that period among a series of sears closures and three researchers are sharing the nobel prize for chemistry. two are american they are credited for harnessing the power of evolution to develop enzymes and antibodies joining us for the market is mandy zu and neil dwayne welcome to both of you >> thank you, good morning >> let's talk about stocks first. we keep seeing new highs dow at another all-time high yesterday. mandy, we thought this was going to be the year of small caps outperforming. but over the last month, we've seen the russell 2000 underperform. >> quite significant, yeah >> yesterday it was boeing setting a new high

intel up 3.5%. what's happening what do you think is the reason? >> i think a big driver of the recent underperformance of small cap i think is really the trade war risk premium getting taken out of the market. if you take a step back and look at why small cap was outperforming for this year was because investors thought of it as a safe haven. given the domestic exposure. if you look at the relative performance you see the out-performance began in april so not surprising given recent weeks we've seen more constructive headlines around trade. specifically the new nafta deal. we've seen that convergence -- the two start to converge. right now russell's actually underperforming s&p. >> do you think that continues or once we really look at the trade issues with china that we hit another impasse? >> that's the big question we look at small cap underperformance what's notable is typically it's

short lived. unless we get real fundamental weakness for example, late 2015, early 2016, small cap had sustained underperformance relative to large cap. given the strength of the u.s. economy now, that's not something we're expecting. >> i saw a suggestion for a new name for nafta if you put mexico first. slip on "i" in it's music >> it's more pronounceable, for sure >> you think there's going to be more volatility. brexit is a big possibility. there are other big deals happening in europe that will keep the european markets on their toes could drive to the safety of the u.s. dollar. but i would also argue with the small cap comments being made, there's potentially a sign that maybe some air is coming out of the tires of the u.s. economy.

it's now in the system small company confidence has been off the charts. maybe it just can't get any better from here and people are looking at even the dull housing data saying some of the most cyclical parts of the u.s. economy are no longer pulling the economy forward. >> companies because of the confidence levels are finally starting to really put money to -- making sure they're investing on things. you could see a long-term effect he was asked a question whether things could be made too good. you could see the fed have to

raise rates faster they don't really want to believe they could be potentially 1.5% higher in a year's time. i think 4% is the most the market is willing. because they don't see the overheating that maybe chairman powell is seeing >> first that sounded like you thought it was a sugar high and we were going to get slower growth if you think they're not going to price it in, we will continue to see strong growth -- i mean strong hikes >> i don't think it's because of strong growth. i think it's because of how tight the u.s. economy has become you've had this huge fiscal stimulus which will create inflation and what they're most worried about which is pay rises. that's where these are very different. >> what do you think in terms of market volatility?

>> their inflation target is symmetric. i think markets really like that and if you look for example in the bond market, volatility is hitting all-time lows. people are not expecting aggressive rise in interest rates. i think that's positive for equity volatility. i think a big driver of what is keeping volatility low is sector -- the breakdown sector correlation. so we are getting volatility in the equity market. tech, financials, industrials, materials. but because they're moving in different directions, at the end of the day, s&p often ends up unchanged. so low index volatility. but high sector volatility that to me is constructive tells you people are differentiating between the big stories out there. >> whoo do you think the

breakout winners will be as we look at the next six months or so >> tech. i think house view is still very constructive tech, energy the big question is what's going to happen with financials. rates are going higher but the yield curve remains flat that's a big story >> we often talk about potential for higher rates whether that is going to have an impact on the equity markets do you think that will make equities look less attractive if -- i guess it depends on where you think the 10-year will wind up. >> i think what we're beginning to see is a tension underneath one of the dynamics that's been driving the u.s. market and allowing it to out perform the rest of the world which has been the corporate credit issuance. that's a uniquely american theme. i think as we enter '19 and the '20, it's going to get more challenged that is going to be able to refinance companies at the low rates we've seen in the past two or three years so we think the share buyback at

some point will come to an end i simply look at the market and go, who wants to buy the s&p now? we're nearly at 3,000. anyone in the planet hasn't formed the view of the u.s. equity market? i don't think there's a marginal buyer other than the corporates themselves they are share price insensitive. >> i take it you disagree with that >> we are still constructive on u.s. equities. where else are you going to put your money in the equity markets? europe remains challenged. multiple political head winds. and then if you look at emerging markets, there are also real challenges there i think the u.s. has outperformed for fundamental reasons and we expect those reasons to continue. as a result, we're reluctant to say call it a top at this point. >> thank you both for your time. mandy xu and neil dwayne coming up, elon musk's hyperloop one step closer to a reality. details next and next, mark armstrong, neil

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good morning again welcome back to "squawk box. some news for you this morning elon musk's hyperloop closer to becoming a reality hyperloop transportation technologies unveiled its first full size passenger capsule in spain yesterday. htc ceo dirk auborn said he hoped to have the system up and running in three years all right. less than a year shy of the 50th anniversary of the moon landing, the person who took the first step on the lunar surface is being celebrated in a new universal film through the world, neil armstrong was a space pioneer. lester holt has the story. >> reporter: in the new movie

"first man" neil armstrong is portrayed as a reluctant hero. >> we're not sure we're going to get onto the moon. >> liftoff we have a liftoff on apollo 11 >> reporter: now the public has a chance to know more about the man behind the moon walk through his personal items that have been stored in a family basement now up for auction the memorabilia includes everything from a piece of the wright brothers' first plane that neil armstrong carried to the moon and back. to a childhood note to the easter bunny but no notes about those famous words. one small step for man -- >> one giant leap for mankind. >> reporter: the defining moment for a man who despite that giant leap remained firmly grounded back on earth. >> joining us now, mark armstrong. neil armstrong's son and heritage auction president

welcome, gentlemen the movie coming out on the 12th it's good timing for the auction, i would think >> good to be here >> good to have you here did you spend any time in cincinnati when he was at -- >> i'm still in cincinnati >> neil taught at university of cincinnati >> we moved there in about early '70s >> i remember. where were you what side of town? >> we lived in lebanon which is north. >> just wondering. just seeing -- i haven't seen the movie yet. but i've always thought about what it must be like to be the guy on top of that -- on top of the very powerful rocket before it takes off because you have to be a certain kind of individual to be sitting there. especially in the early days and as his child, it must have been terrifying for you. >> it's interesting, joe first of all, the movie does a great job of giving you a

visceral feel for what it was like -- >> and for your mother i can't imagine. >> you've hit the nail on the head there as kids, we -- they -- our parents sheltered us from the danger right? i mean, we were excited, but we weren't scared and how, you know, my mother hid that from us just baffles me it's a wonderment really >> 24 gold medals, whatever, i'm trying to think of the most incredible human achievements we think of legendary people about. and being the first human being to set foot on the moon, there's nothing that rises to that does it? that's why i would think this auction, prices are pretty cheap for things >> i guess for me, it was a great american accomplishment. >> i saw it. >> i wasn't alive. we weren't alive at the time i mean, i've seen it since

>> having watched it live was something that is etched into my memory like anybody else that saw it. >> for all of us who were alive then, it was the one time at least in my lifetime where i think everybody in the whole world came together and smiled for something that was good. you don't see that anymore. >> my brother and i are often approached by people from around the world who were inspired by that and it motivated them to just be better at whatever it was that they cared about. it might not be science. they might be a doctor, a lawyer, a ditch digger they wanted to be better because of it. >> when we lost him recently, i got emotional about it and the actual -- i've tried to explain to my kids the lunar landing module on the way down, if you use too much fuel looking for a place to land, it wasn't going to take off. does the movie do that justice your father had to take over

manually and he was just as cool --ty would have -- i don't know what i would have -- >> there was training. >> that was his training so it's that simple. but he found a place and was able to land he had like five seconds to spare or something is that in the movie as well >> that is in the movie. >> given the shared experience that the country had at that point and how inspirational it was, how you think of space travel versus the private funding that's taking place now and what that sort of looks like. >> my dad testified in front of congress in 2010, i think. and at that time, i think he felt very strongly that we had -- we the united states had lost our way and we were basically on the verge of ka kans -- canceling.

wouldn't think that jeff bezos and others would be able to have the capital and fund the things they are now and i'm great fans of the work they're doing. because as jeff put it, he won the lottery with amazon and he wants to take those lottery winnings and put them towards -- >> is that the preferable way, you think? >> i think exploration going forward requires a lot of different types of technologies and vehicles in order to do the i think in order to do the things we want to do, it's going to take a global effort. >> what do you think of the new space program the president has proposed >> i think it's a great direction and i hope we pursue it continue to pursue it. >> the auction items, i want the flag it wasn't the actual flag that was on -- but it traveled with

i can't believe that's only -- that starts at 75? that's going to go for a lot more than $75,000, i think >> i think it's going to sell for a lot more than $75,000. the small flag sold for $75,000 at one of our auctions this is the largest one that's come up. >> it's all over the whole thing just gives me the creeps it makes me wonder what kind of men were able to achieve things like that. and he's your dad. you're like, i don't know. >> it's men that wanted to serve

their country. men that wanted to work really hard to make sure that they did their part they didn't make a mistake that would cost the mission or cost or even worse cost someone's life >> more about the collective -- you know, the collective mission that they were all involved with what else do you think will be the most popular >> well, the flag is going to appeal to the collectors you've got the newsweek magazine cover. it was great he was on the cover. this issue happens to be his own personal copy that has the address label on the bottom to n.a. armstrong at their home address. >> that's pretty cool. >> heritage has sold astronaut memorabilia but this is the holy grail. >> who ends up being the buyers of these things? oftentimes it's a chinese buyer. it's someone from the middle east do you think this will be more

highly bid up by americans because of the patriotic nature of it. rick and i were talking at lunch yesterday about the interest in the movie from australia, japan, the great thing about the whey the auction is conducted is that no matter where you are in the world, they can see every one of the lots being sold. and they can bid on it in real time like they were at the auction. you can bid on it. i've preapproved your credit >> i know. but i want the flag. >> you can get it you just have to bid a lot >> i want to tell you about this this is a piece of the propeller. were made with an airplane that had this as part of the propeller. and they made about four flights that day the very first powered flights

then they left probably to get something to eat and to relax and celebrate a little bit and the airplane gust z wind and turned it upside down, broken the propeller. they had to lead it up and take it back to the shop. the air force reached out to dad and asked him if he would be willing to take pieces of the propeller and a piece of fabric from that -- from the wing with him on the flight. and we have the letter and the letter says just return half of this to us, you can keep the other half of the piece. >> and that's the other half >> this is one of a number of pieces of the propeller we have in the collection as well as pieces of the wing there was only 60 years that separated those two flights. >> that's unbelievable >> it is unbelievable how much, you know, we accomplished when we put our minds to it >> when does the auction start

>> the auction goes online october 12th the same day the movie comes out. one of the interesting things is this is an insurance cover astronauts couldn't get life insurance. so mark's dad and the other at tro naughts took these coffers and they signed them they left a stack at home for the family so they could sell them and get a little bit of money. >> you're okay with the part of the movie that doesn't show the flag on the moon >> oh, yeah. i think you need to see the movie. there's american symbolics throughout the movie >> but your dad was certainly a huge patriot >> indeed. served in the navy, the korean war. >> do you think he's be okay aldrin said that's not the neil he knew that wouldn't want that flag up there. >> i want people to see the movie. i've seen it a number of times and i think it's very authentic. they've done a fantastic job >> that is what i remember though

it's one of the things i remember -- i don't understand >> a lot of people do. >> i remember that more than any other part of the whole experience >> i remember the stepping onto the moon the walking and the bouncing >> and the golf club very difficult to swing. which we have a suit over there. i don't know if that would fit me did you check that out >> it's pretty cool. >> i think it would fit andrew >> here's a picture of neil in the center there wearing the flight suit. you can speak to who else is in the picture. >> well, good luck i know a lot of the proceeds go to charity from the auction. i'm excited about reliving that whole experience it's one of those moments in your life that you never forget. thank you. >> thanks for vu s very much. coming up when we return, a lot more on deck some stocks to watch futures right now dow up about 95 points.

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record run futures pointing to more green arrows on wall street. the morning after the dow closed at an all-time high. breaking news about jobs the adp payroll report coming out. the ceo of truro joins us as the final hour of "squawk box" begins right now ♪

good morning and welcome back to "squawk box. futures are strong, solid again. triple digits on the dow been a really good last couple of months as we've set a series of new highs s&p indicated up ten nasdaq up about 29.5 treasury yields have been above 3% and staying there and the 2-year now 2.82% which is -- you know, that's competitive with the dividend yield finally. even more than the dividend yield. so i don't know. >> and morning the stories front and center right now, the adp employment report. we're going to get it in 15 minutes from now

the economy likely added 185,000 private sector jobs lost month the average declining to 4.96% corporate news as well shares of lennar are rising this morning big-time the home building posting better than expected earnings in revenue. rose 62% during the last quarter. today's top story, the record rally the dow closing at an all-time high yesterday, but not all stocks are taking part in this >> a lot of attention being paid to some of those parts of the market that are not participating. i think mainly it's small caps and banks are the ones that stand out to people. and has people questioning whether it really matters. the large cap index started a new high today if the futures are correct. but you have seen massive underperformance look at the russell 2000 against the dow.

it's pretty stark. also bank stocks have underperformed all year. i guess the big question is is there any predictive value and the answer is not really small caps sometimes outperform. it doesn't necessarily send an economic message what is clear is that a heavy financial waiting in the small caps is a reason they are not participating. i think they'll be much more concerned if it was a company with credit stress to me it's the rhythm of the market we might lose this talking point relatively quickly if, in fact, they come back. >> we had anl analyst last hour who said, look they've been underperforming -- small caps have been underperforming because the trade tensions have ratcheted down you've got a new nafta deal.

that takes a lot of the concern out. >> it's true there were a few-month period earlier in the year where caps were the obvious trade place to hide not everybody can hide there the whole market value is 10% or something of the s&p 500 >> the multiple is not cheap but 20% year over year again it seems like there's something underneath this that's going to -- i want to say we're not missing something. we've got to be missing something. >> i don't think you necessarily have to overthink it >> how high can it go? it's gone up so much >> yeah. the one bear point i keep coming back to and i don't necessarily believe it, but look at how much great news and fire power it's taken to get the s&p up 9% this year 20% earnings of growth >> i feel like there's more

left >> that's the two ways to play it to me that's one of those things that said what you got next year >> the third, fourth, fifth derivative >> at what point does it -- >> you know what it's -- i don't know why anyone would go into the currency business to just analyze currencies, but we're going to need -- this is where you really do need to look at currencies and luckily we got wind here earnings season just about a week away. investors might have a concern about a stronger u.s. dollar joining us now is global head of currency strategy. we'd have guys that covered the steel industry i'd go, when you were back in college, an analyst, what made you do steel go into technology and we actually had a guy that was an auto analyst and he switched >> trading up for the new business but currencies aren't always the most riveting.

that may be along with the bond market, this is where the next is going to be >> let's see that's bad >> no one really cares about fx. it's a transactional tool. you get to a point and then say we should be paying attention to this >> always some currency we've never heard of like the thai baht >> although it was just pepsi because of currency head winds >> but is king dollar good for us or not? that's another thing i'm not sure it's a nuanced answer, i guess >> it is the secretary ruben's old strong dollar is investing in the u.s i do believe that. currency could help exports. but you lose credibility all of a sudden the interest rates start rising, people start pulling back

it's never good to talk down your own currency. we say it all the time, but it's a big no no. >> we're really looking for something to worry about and typically the things are good enough. >> want me to give you something to worry about >> i think em probably that's where a lot of these things start that then spread. it could be a kurcurrency issue going to put more pressure on emerging market currencies is that where you're looking >> it's not just emerging markets. if you think about just in general debtors. italy is coming under the gun right now. global liquidity is tightening now we've got the bank of england hiking swede season going to hike ecb is going to stop qe in december so our hiking next year. we have to think about the whole global liquidity for markets in general i think we've been used to too many years of easy money em in particular -- i think it's great you focus on

it was one of the biggest beneficiaries. currency strengthened. interest rates got pushed down everything was hunky-dory. now rates are going back up. it's a whole new reality now we're going to see which countries have it and which don't. i think the surplus countries in asia, korea, taiwan, singapore, they'll do okay in a rising story environment. now debtor countries are heavily relying on foreign bonds they're going to be in trouble italy, some of the weaker eurozone economies as well so we are in a very difficult situation now. if you want something good to worry about -- >> oh, boy >> we've got to talk about the new u.s. recession it's not if, it's when >> so what's your tipping point? >> i don't know. we've got, you know, massive fiscal stimulus switch a net pos. but we have the fed hiking it's still gesing.

my best guess, early 2020 is when we have to be on the lookout. >> why >> i think there's enough momentum to get us through much of next year >> then what happened? >> the interest rates. higher oil is not doing favors it's great for the oil producers, but net net it's not. >> a classic recession, you're not describing a crisis. >> no. a typical -- >> not a flash crash >> i hope not. knock on wood. just a typical business cycle downturn we haven't done away with laws of economics at some point we'll see some sort of downturn. i agree it's not going to be a big crisis that's a once in a lifetime. >> what makes you think on the timing in terms of late 2019 something along those lines. is that because where you think fed rate hikes are headed? what gets you to that? >> the federal hikes another

three or four times, i think the fiscal stimulus will be starting to turn off. again, it's just timing. we're in the eighth, ninth year. i wonder if we can get to 10, 11 years. >> one thing people seem to forget is one of the reasons you get to late in the business cycle is you run out of resources to employ profitably it's just a matter of businesses not being able to have the stuff cheap enough to grow as much incrementally. if you have that and a bit of global wobbling in fed tightening it could be a soft landing or a recession. >> thank you he has a ph.d. in economics but still very useful information for us thank you. >> thanks. i'm glad you feel that way >> thank you want to get across the pond.

theresa may warning that brexit talks are entering their first phase. good morning >> hey, andrew it was a combat of speech from theresa may ahead of yooumeuropn meetings ahead of her. watching the pound during that speech you can see it take a bit of a plummet here as she started talking about the threats of no deal take a listen to how she put it to her party faithful a few moments ago. >> some people asked me to rule out no deal. but if i did that, i would weaken our negotiating position and have to agree to whatever the eu offers. >> and what she's been saying is that what the eu offers are two options neither of which she's happy with still a total lack of clarity about quite what we're going to end up with in terms of brexit less than six months to go until

the deadline as you can see, currency traders have been a bit of fun with the pound yet again today. it has been very, very news driven over the last few months as you know. >> okay. willem, thank you for that when we return, breaking economic news. adp jobs data straight ahead zdil hear from markan the instant market reaction when we return. what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. well wait. what did you think about her? it's definitely a new idea,

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we've got some breaking jobs data adp payrolls up by 230,000 that's more than the 185,000 that had been anticipated. by the way, august payrolls also revised up 5,000 to 168,000. dow futures now indicated up another 107 points even after closing at an all-time high yesterday. s&p futures up by ten. more from mark zandi in a moment but first we have some breaking news from the auto industry. phil lebeau is here for that >> becky, this is news from

general motors announcing they will be working in partnership with honda to build autonomous vehicles. this is part of honda announcing it will invest $2.8 billion in gm subsidiary cruz holdings. thap will include an investment of $750 million and then a $2 billion over the next dozen years. that values gm's cruise holdings at $14.6 billion what's the vehicle going to be built between gm and honda it will be manufactured at a general motors facility. the two companies will work together to develop and build this vehicle for worldwide deployment and it's a shared use vehicle. now, we've got an image that general motors just sent us. there is no release date set for when this vehicle will be out on the roads. but this is clearly important for general motors not only in terms of its plans with autonomous vehicles and cruise

holdings but collaborating with honda honda said, look we want to find who can develop the best autonomous vehicle. honda approached general motors on this deal we will be talking with dan ammon, president of gm coming up on " you don't want to miss this. guys, this investment from honda taking a 5.7% stake in cruise holdings comes just a couple of months after softbank's vision fund invested $2.25 billion in cruise holdings as well. there you look at shares of general motors as gm and honda announcing that they will be working together to develop and build an autonomous vehicle. guys, back to you. >> for anybody listening on the radio, looks like that stock gm up about 4 357.5% to 5% on this news >> and it got a nice pop after the softbank investment back in june so it's not surprising

people are focused on what it is and $14.6 billion is where it's targeted right now people are backing some of this in to shares of general motors in terms of pricing right now. that's why you see a bit of this stock here moving up over $45. >> we had ron baron on talking about his investment in tesla. why he has so much faith in it he also said he'd met recently with gm and he thinks highly of diane. when you talk about these vehicles for worldwide deployment being shared use vehicles, is this for a company like an uber who will be doing this >> it could be -- >> for someone who drives the car to work and then the car drives itself off somewhere. >> you're talking from everything to small package delivery companies to maybe contractors, entrepreneurs let's say there's a company that is a food delivery service firm. and they are delivering meals in

bangkok or wherever. it's a multi-use vehicle in the sense that it can be adaptable that's my sense. the wording from -- >> we assume there's always going to be something for the foreseeable future something in the drivers seat >> foreseeable future. but the whole idea here is if you have a fleet or some type of a small package delivery firm, you can route these in the future theoretically when they are autonomous drive and make much more efficient use of your fleet. in theory. that's the whole idea here and we should point out, becky, that cruise holdings, when you talk with people in the automotive industry in terms of self-driving vehicles, they pretty much say it's waymo, it's cruz, then everybody else. it's not insignificant that honda sought out general motors for this investment. >> phil, thank you so much good to see you. let's get back to those adp

numbers. again, just at the top we got september jobs report for adp. up 230,000 versus the estimate of up 185,000. also revising the numbers for august higher as well. up 5,000 to 168,000. joining us now is mark zandi with moody's mark, these are stronger than expected numbers what does this tell us about what we're seeing happening in the economy? >> economy is good lots of jobs this overstates the case a little bit doesn't account for florence >> i'm sorry, what >> florence, the hurricane it won't pick that up. adp all you have to be is on the payroll to get -- >> you don't have to get a paycheck does that mean the september payrolls number may be a higher number or trend than what we've seen on the jobs report? >> i think florence will probably shave 25 k. we're still at 200k so it's still a big number >> so anybody anticipating this

who looks at adp will look for the trend to be right. but this week in itself, it may not be quite as tight. >> just for context. where are the biggest areas of strength >> everywhere. >> geographically and -- >> pretty much there are two sectors not adding one is retail. amazon is doing a number on brick and mortar guys. and mortgage banking now mortgage rates are up. >> i'm actually surprised to hear that with retail. we have heard so many of the traditional retailers saying their hiring was going to be strong numbers for the holiday i mean, to me when i start hearing about the seasonal hires, not just with those traditional retailers but also with amazon, u.p.s., fedex, they're bigger than before >> we'll get a bump. so you're going to get a bump.

but underneath that, the brick and mortar retailers are still struggling >> does that make up -- i mean, is that made up for with jobs in other areas? >> yeah. it's -- oh, yeah sure on the online side, yeah net net it's still a job creator. interestingly enough, you look at job openings. a record number of job openings. that suggests that they're laying off workers in some places but they need other workers but they can't find them >> what do you make of -- >> it's two things one, they're getting nailed publicly they wouldn't do it otherwise. >> what do you think the force ing mechanism is going to be >> the labor market. they can't fill those positions. this market is hot it's just going to get hotter.

so the risk this economy overheats is very high this is one more piece of evidence of that >> where will we see it? when will we see it? we keep watching those hourly average numbers. >> don't look there. don't look there. >> because >> it's a bad number it's messed up by all the mix issues in the labor market look at the employment cost. we don't look at it as often but it controls 3% that's double was what was three years ago. >> we keep talk about this not nearly as hot as it used to be i wonder if that will ever -- talk about a hot market. whether that will impact consumer spending this fall when people start to see prices come down and how that then sort of translates >> this is housing >> it's a housing story. >> just put it into some

context. house prices have been rip roaring particularly in those markets. denver, san francisco, you know, well above pre-recession levels. it'll go flat here you still have the tail wind from the tax cuts. at least over the next year. >> thanks a lot. great to see you all right. talking about real estate, coming up, you already rent out your apartment on bnb. why not go all in and rent your car too? coming up, the ceo of turo joins us live. if you're like me, this would be a great thing to do. >> would you do this >> i might

all right, folks when we come back, oil prices trading near a multi-year high that could be masking a problem from some producers. we have market analysis straight ahead. right now as we head to a break, take a look at the u.s. equity futures. been high all morning. right now those dow futures indicated up 114 points after closing at an all-time high yesterday with help from boeing 5%d 3. also nasdaq up 28 points s&p up by ten. and "squawk box" will be right back

♪ good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square among the stories front and center, honda is taking 5.7% stake in general motors

self-driving car unit cruise honda's going to invest $157 million immediately and then another $2 billion over the next 12 years the image you're looking at is an early look at what the vehicle could actually look like the honda investment brings the value of gm's cruise to $14.6 billion. gm's president will join "squawk on the street" at 9:00 eastern in other corporate news, shares of tempur sealy rising. i don't know if it's the name. mattress firm -- >> a firm mattress a company that sells mattresses. >> what could we call this anyway, set to file bankruptcy as soon as this week >> i've been trying to figure out this story i know that tempur sealy had pulled its products from mattress firm.

but i don't understand why it's a great thing for sealy. >> i need a primer on mattresses in general there's some that come in a box now. my thing is the pillow top i thought that was the latest technology >> that's old now. >> it is but tempur sealy people like that >> i went to a mattress firm lately i need a new bed >> mostly technology you've been watching >> and beds too. >> what is the state of the art? and what were they thinking with the water bed? >> state of the art is actually -- so tom brady endorsed a bed it's a beauty rest sealy beauty rest >> it's like a secret agent. >> it has a cold something so the new technology is trying to keep the bed cold that's the big thing >> yuck. >> there's like a gel under the mattress that keeps the temperature -- that's the big

evolution. the big evolution is all these things doing foam. it's now actually a combination of foam on the top layer and the older traditional on the bottom. >> so what did you -- >> we haven't -- i can't make up my mind. >> i know you're going to talk about oil prices, but -- >> if we have any "squawk" viewers, i love a soft -- i like it to be soft. if anyone has a great recommendation, tell me. >> aren't they glorified air mattresses >> try putting egg crate on it you'd be surprised you could have a great night sleep. try it. >> and you like your my pillow not everybody likes it >> i do like my pillow >> can you believe that guy ripped off the alka-seltzer opening the -- maybe you don't remember it. but a guy used to open up his thing -- you got the mirror and

that's in there. the alka-seltzer guy used to be in there and they totally ripped it off it's been done but it works for them anyway it's 8:33. we digress you have no time now >> thanks for having me, joe >> nice to see you >> small caps stock to tell you about. but a well known name. that's sad, isn't it, when you know that? jcpenney shares rising the company naming jill soltau as the new ceo jcpenney hit a record low last week on news that its cfo was leaving. the retailer had been without a ceo since the sudden departure of marvin ellison back in may who left to become the ceo of lowe's parts of the northeast will be cleaning up today after powerful storms moved through last night these pictures are from fairfield county, connecticut, where strong winds downed trees. the storm also brought heavy rain causing widespread warning.

powerful winds also downed treed in manchester. weather conditions are expected to improve today as drier air moves into the area. detectives in maryland are actively searching for a burglar who tested his luck to the point that it literally knocked him out. check out this video a man throws a large brick into a restaurant's bulletproof glass. the brick bounces off and hits the man in the head. the crushing blow sends him tumbling to the ground leaving him unconscious for a few minutes. he eventually got up and fled the scene. at least he didn't, like, try again. you know what i mean >> only because he was knocked out. darwin award >> yeah. that's a darwin award. isn't it >> yeah. >> there's videos everywhere that's something to remember >> before you try something stupid watch out, you'll be on tape >> i need to correct myself. tom brady was endorsing the

beauty rest black. but he has now changed his mattress of choice >> no kidding. >> and he is touting a new online mattress called molecule. just wanted to make sure for those who were following the sports endorsers for beds, you know -- because i would want to sleep on -- however -- you know, if you're recovering if you're tom brady sleeping, you know, if i could get that through osmosis. >> his offensive line he's had recently, yeah you're right you would want a comfortable -- to try to rehab yourself >> but whatever he's doing, i'll follow that. seems like a plan. >> they were kind of stupid commercials. i have everything i need he looked like james bond going through all these secret passage ways to get to the bed didn't even have a sheet on it i don't know oh jazz hands are making a comeback at school. is that what they are? >> yeah. jazz hands >> where's the director? he missed you doing this

students at the university of manchester in england voting to replace clapping with british sign language. that's a wave of both hands. a student union officer says traditional clapping at events like debates can disturb students with autism or with sensory issues that's interesting other university student groups are being encouraged to transition to the golf clapping. quiet clapping but some in britain are criticizing the move as pampering today's students which we don't see evidence of that anywhere else. >> with sensory issues, it can be a huge thing. >> and we talked about at golf matches now, you can't clap because you're like this you're watching -- >> that's probably the case at most graduations and things too. >> yeah. so it brings us back to zen. what is the sound of one hand clapping do you remember that >> yes all right. oil prices trading near four-year highs. joining us now is again capital

partner jon kylduff. there's a lot of anticipation about what's going to happen november 1st when these -- when the issues kick in with iran where they're not going to be allowed to do some of these trades anymore but also the idea is that this could be buy on the rumor, sell on the news. what do you think? >> it's actually a bit more than anticipation, becky. because companies are already reacting to the imposition, the formal imposition of those tariffs. you're seeing companies already pull back from buying iranian crude oil. some of the international big players like vitol also pulling back because they don't want a risk a wrath of the u.s. biggest shocker this week was china saying they were going to cut their iranian purchases in half this month. now, when we were all sort of doing the math on how much oil will be lost to the market by companies refusing to buy

iranian oil, we were counting on for a lower price for china and -- >> not even buy less but buy more potentially to get some cheap barrels and help out iran. >> why do you think china would buy more of that is that a way of kind of punishing the u.s. saying you're going to continue to see higher oil prices >> certainly a tactic and a lever for them in the trade battle but also the iranian community forced to discount whatever barrels they can sell. it's a good deal for them. it'll be a good deal for india, too, if they can maneuver their way around the u.s. sanctions. they also don't want to risk the wrath of trump either. >> as you just pointed out, this is already happening but it could have the same impact if all of the maneuvering is already taking place and you'll see china potentially buy. couldn't it have the same impact on prices? >> there's sort of a fever building in the market now about what the market is going to look

like in supply and demand. we talk a lot about summer driving demand here for gasoline but this is the crunch period. so what we're trying to look through is how much oil is iran still able to sell, are they successful at all in circumventing the sanctions. and then two, as we start to look into 2019, how much more oil is come out of the permian how much mo-- and does saudi arabia come through in a big way or not for the markets >> what do you think the answer is >> i think the answer for saudi arabia is they're going to make us sweat it out first. you'll see wti priced at $85 i don't think we're going to get to a hundred i think the saudis will ultimately step up but they're going to be stingy at first >> you're talking about maybe through the end of the year? >> through the end of the year it's going to be a rough winter for consumers at the gas pump,

at the heating oil tank. everybody. >> then what happens >> then i think in 2019 we should trend lower we'll get that seasonal dropoff in demand we always get. some of these other factors i just referenced, more u.s. production more u.s. exports. more u.s. liberation of the permian barrels, for example, getting to the global market >> very quickly, overnight saw news exxonmobil is considering selling some of its gulf of mexico assets. what do you think about that >> you know, they need to do something. oil price has been steadily rising all the other companies are killing it for the first time i can remember, exxonmobil has gone from being top tier in the class to almost bottom ranking in terms of what they're doing. they need to focus more on their natural gas, inland assets it's probably a good idea for them to shed that gulf of mexico stuff to companies like a hess or shell or some of the other deep water operators >> john, thank you very much john kilduff.

when we come back, the ceo of turo is going to join us. then tomorrow, guest host kevin warsh is going to be here live at 7:00 a.m. eastern time. he's got a lot to say on what the economy is doing we're ckn montba ia me only half the story? at t. rowe price our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. t.rowe price. invest with confidence.

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in fact, they've added about 30 points since last time we checked. the dow now up 130 the s&p indicated up almost 12 and the nasdaq indicated up 35 and change this morning. we've been touting it all morning. a different way to rent a car. turo wants you to forget the airport rental counter it lets people rent all kinds of cars even a 1959 corvette meantime, drivers can make a few bucks putting their cars up for rent joseph, i want you to put your porsche up joining us now to talk about the business and how it all works is andre hidad, ceo of turo. good morning to you. >> good morning. i have my own porsche up for rent on turo >> explain how it works.

>> so you create your listing after you create an account and you take photos of your car. you have a description, put in your address, and you've got a listing that's live on our app we help you find the right price for your car and we help you decide where your availability is and you've got a listing that's up and coming. and you start getting trips that will be booked on your vehicle >> and are people doing this regularly? i'm thinking selfishly i live in new york city. i drive on the weekends, very rarely on the week days so the car is going unused. could i put it on the market every day during the weekday >> absolutely. many people are like you there are almost 300 million cars in the u.s. that are idle most of the time we have around 350,000 vehicles listed you can absolutely list your car and rent it out every day tif yu

want >> easier in cities, i guess out in the burbs is it done? and how much would andrew get for his highlander and how much would i get for my 911 a day i could make some money, seriously? >> yeah, absolutely. so just to give you my sense on my car, my 911, i've been sharing it on turo for the last five years i've roughly made $10,000 a year my daily price is around 200 zla day. people book it for a day or two. >> how does it work? one of the things people worry about, there's a couple issues people worry about damage to the car. or just even dirtying the car, right? if not getting in an accident. and then there's the other, what's called the handoff. at some point, i have to hand the keys to somebody and what that interaction is like >> you're right. you have to have some time set

aside to meet the gas when they come in to get the car you use the app to check in your gas. you take photos of the vehicle from the exterior, interior. you capture the odometer, the gas, battery charge. and once you've done that process through the app which takes a few minutes at the beginning of the trip, you can hand over the keys to your guest and then off they go then they return it a day or two days later you do the same sort of process with the app you check out the guest and take photos of the vehicle. >> who deals with disputes and dispute resolution do you take a deposit in the fact there is a dispute and the owner of the vehicle for the repair or what have you? >> we're absolutely into

ensuring that everyone's safe on turo so we have a great insurance policy with liberty mutual which has been our insurance the past several years. liberty provides great coverage for both the car owner as well as the guest a million dollar liability policy so the only thing we require from our host is to make sure they document the state of the car at the beginning of the trip as well as the end of the trip so that we can compare photos and be able to see where there's been damage and then liberty mutual processes that claim. it's usually something we deal with over a couple days. it works reasonably well for the vast majority of our guests and hosts. >> seinfeld covered everything you remember the -- >> the car >> he had to sell his car. his saab i don't know someone had b.o., a valet. it may not leave, ever

there are certain stubborn -- is that ever -- that's just a seinfeld it probably doesn't happen in real life. i would worry the car doesn't come back in the same state you left it. we in. i am surprisesd and you have to come to grip to let someone drive your car a lot of car enthusists are sharing their cars >> when you say $10,000, i looked at andrew of the reaction >> it is a great thing how many days are or year are renting it out to cap the 10,000 >> i rent it out around seven to eight days a month usually on the weekend because that's where i see a lot of

demad demands on my vehicle. the average host on turo makes around $625 a month. that's enough money to pay for your car >> i am assuming the new york city issue means nobody want to work during the weekend. the travel times and you know the end of the year holidays and summer holidays, those are our peak times during those months, our hosts are making thousands of dollars a month. >> is there any debate around regulation and the reason why i ask you is clearly air bnb has gone up. what do the rental company say >> it is not like euro they don't like more competit n competition. they're trying to tell everyone

that competition is bad and we should not be regulated. we are trying to educate e regulators and this is a new model that makes a ton of sense when you think about all of the billions of dollars that are invested in cars that are currently under utilized and wasting money on a day-to-day basis and think of the depreciation and all of the cars out there. >> 10,000. >> the highlander is not going to get -- >> i have more days available. >> can you get anything for the highlander >> its got to be a tough rate. >> yeah, depends on your highlander >> leather interior. >> good luck with this, you may

see me on it and i will be make it available >> it is a done deal >> thank you >> a lot of interests here on the set. we'll see, we'll see >> jim cramer is standing by at the new york stock exchange when we come back we'll get right to him to see how he's feeling about things this morning stay tuned, you are watching "squawk box" right here on cnbc. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day. ♪ today is a good day to make a plan for your financial goals and your everyday ones too. pnc can help. we'll be with you every step of the way. let's start today.

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shenanigans. >> but, where they would value at one thing, 18 days prior clear in a deposition. >> $400 million >> that was in today's reporting. >> guys, we are going out. >> "squawk" will be right back

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all right, everybody make sure you join us tomorrow. we appreciate you being with us today. right now it is time for "squawk on the street. ♪ >> good wednesday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer and david faber at the new york stock exchange future is on the hundred plus on the best vp numbers, setting up high expectations. relief of the italian budget reports saying the government may back you have of deficit charges. we'll get inventories in 90 minutes. our road map begins of this historic market rolling on stocks are set to open at a new high tops expectations