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, elon

musk's ultimatum >> and shares of gm are sharply in the premarket the automaker is partnering with honda to build more vehicles the dow is looking to extend its daily win streak up to five. private sectors add 230,000 jobs in september the firm says the current pace of job creation, the unemployment rate will fall into the low threes by this time next year, jim, 2:30. we are looking for 184, prior months are up by five. precious where they are finding these people and what it may mean for labor participation on friday >> i spoke with the ceo, they handle huge numbers, hundreds of thousands. he said one thing they had to do, a lot of the companies are

waving the drug tests, literally. in ord now, what does that say? waving drug test, this was a bedrock change in our country. you can't find enough. it is incredible the wage going up and you still can't find people. no wonder amazon went to $15 which really rattles them. >> a clever way to create more pain for brick and mortar retailers. >> it was a bad day for the market and a bad day for the nasdaq and all the clouds came it was stitch fix and amazon undid retail and the web and most stocks were horrendous. dow hiding a lot of problems because of a bleep that china is going to fold, fold. yeah, you tweeted to somebody

yesterday. dow all time high up 3% in a month. russell two months low rotate into names that will play if china rolls over? >> yes >> that's what you think is going to happen? >> yes, i definitely do. they're not going to roll over >> we can all go to our experts. you have yours and i got mine. i don't think they're going to roll over. >> do you want to be sure. >> and if they approve technology >> there you go. >> the work that i continue to do to ex understand qualcomm and nxp seems to indicate it was really an outlier. it was its own thing that it had to do with the law and relationships that qualcomm had with china you should not and as i thought at the time frankly necessarily apply to other rulings to come

whether it will be disney or fox. they're going to happen but my indication is that you should not look through the lens of qualcomm and nxp >> i think they'll approve >> that's going to happen. >> that's not china rolling just because they are necessary approve deals. >> they're not giving anything they're trying to maintain it of resemblance of rational discourse when it comes to antitrusts >> they're not going to roll back made in china of 2025 >> how about ten cents get to come here? >> that's fine the president does not even know did the president keep on focus on an argument thticle that i ho take i am going to take a day off to read the piece >> amazing >> i saw it on twitter i read it at 4:00 to 5:00.

>> i was busy reading jim stewart pieces revealing tesla is a total sham. >> that's a great piece later. >> guys, as we were talking, the president tweets, the stock market market just reached the all time highs for the 102nd time, a presidential record by far of tless than two years. k lockheed martin was recommended today. i got some investments in mexico people are joyous there mexico was the cheapest place to build things and mexican workers are poorly mistreated. does it raise the price of the car for us conceivably. no longer can the aerospace

companies dictate terms. >> we were talking about paying workers a moment ago, worse day in retail of february because they're going to have to pay more i think they'll be prevailing and amazon is more optics. i think a lot of these companies are not going to lose employees. if you are new york city, you can't find anyone, okay, again hyperbole >> got it. >> it is incredibly difficult the find people to take the jobs at a bargain let's take macy's, i have been watching its stocks going down it has to do with wages. there is without a data that it is very quiet. >> so when amazon says come on in, the water is fine, let's all go to 15 and you talk about a labor shortage, we also know that the cost of goods are going up conceivably because of the

tariffs. >> yes >> when is it going to show itself in the inflation number >> well, i think that one of the reasons why we have the feds that just decided to listen. we are data dependent. we are looking into next year's wages. this is full employment. it is difficult to find people if we get a fed that continues to tighten and we get the end of free money and the incredible cycle that we had. >> record level. >> if you look at lenard, the numbers are not that great started to cool. >> there are parts of the economy are cooling because the feds have to beat this when you are trying to hard dish wash of 17 bucks an hour, i used

to be paid $1.90 to wash dishes. >> more money is thrown into the economy. >> i think you see a lot of restaurants going under. this is nationwide and i am not just talking new york. >> you saw the mall numbers and everyone thou even though we are talking about it being strong. >> seven years high. >> these are all experience. david, planet fitness. amazon can do it, one of the stories is amazon is about to go into the reach of healthcare >> planet fitness for your pets. >> you mention my dog. >> i didn't mention your dog, i

mentioned planet fitness >> you are allowed to get a dog. nvidia is at the door constantly waiting for bug to come home we have to change the narrative. >> you are going to get me choked up again. >> rescue dogs it won't eat, what the heck? >> back to wage inflation though, jeff bezos was asked of the increase of wages last night to michael lewis, take a listen to that. >> we are trying decide if we want to change, we realize we just made a decision, well, you can offer competitive competitions or you can decide to lead. as soon as we frame it that way, let's decide to lead i think people will follow >> interesting, a big fund manager says yesterday on twitter that raising your wages are cool, what's not cool is

demanding federal equivalent to make sure you are not at a disadvantage >> perhaps productivity have increase at amazon they use honeywell, it finished spinning off of the other part of it. >> they got a big robot factor brad jacobs, a nice note from jacobs today listen, we are using 5,000 robots it is not demanding a single thing. >> no. they have very few demand right now. remember the will smith movie "i-robot," you never know. you got to watch out healthcare, we have not doubled that yet but, i will get this $15 an hour, that crushed yesterday's market and it crushed it and the stitch fix crushed it. you have internet problems all

throughout what does it say about retails >> i am not talking about jc penny. i am saying macy's is breaking down and people should be looking at macy's. that stock is just -- it is dropping >> after a strong run. >> sure, they took it from 18 to 40 by fixing the balance sheet wages, look at it. you know it is holding up rather well is target target has to pay much more, i am wondering when that has a problem. kroger, how about teaming up with walgreenss a and did what did. >> wow, that's not costco. they pay everybody already they were the first.

when we come back -- >> the dow is chasing this morning. take another look of the premarket as we look at the record of the opening. we'll talk more of the gm/honda automated vehicle mission in a moment back after a break hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. if you don't like their answer, so, they say that ai is the building block of the future. super. but today you're building wind turbines.

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tim cook sat down last nigh defending the business' model. take a look at that. >> we challenge ourselves to collect as little as possible and when we collect, we challenge ourselves not to make it identifiable. we don't do things like we don't read your messages, you are not our problem. we are not forming a detail profile and allowing other companies to buy the opportunity to target you. that's not the business that we are in >> he thinks some level of regulation in tech is

necessarily? the idea that consumer data leads to better products is a bunch of buck. >> when we look at where facebook stock is, they were the ones that -- is it a breach or a sale >> i remember ktim telling me i you take the app, would you if you would like to know that i subscribe to mlb.com it makes a fortune to sell it. >> we come back to facebook and not at this point, they don't see the connectivity facebook drew to other lines and other apps you can sign into using your account >> investigation is still going on >> oh, really?

>> well, will they get an outside person out there >> you mean the sec should not make him independent director and should not be allowed to be chairman gm is up 5% in the premarket, the automaker announced they are teaming up with honda to build autonomous vehicles honda will invest in gm. phil lebeau is joining us now. >> hey, he's joining us in destroy, good morning dan, tell us a little bit about this partnership of honda and how this deal come together with honda taking a 5.7% stakes >> it is a message scale it is going to require a lot of ve sourc resources and also engineering resources. we have a long standing information with the general

motors on the number of projects so bringing them into the picture with cruise and our mission. they bring $2.75 billion on the table to help with the mission and a lot of engineering resources as we look to develop our autonomous vehicles. >> dan, we have an image and i know people are going to look at this and say this is a crude image but it is the image of the type of vehicle that you guys are going to work developing it looks sort of like a delivery type vehicle give us some sense of the use for this type of vehicle and where we may see it around the world? >> sure, we don't want to give everything away. you're used to see some of these teaser images. it is an early reputation of what happens when you release the constraints and so on. we'll find a purposeful vehicle

that can be deployed in a share network or tr transportation of passengers or other things and so we see a huge amount of opportunity and flexibility coming out of this when we take the honda resources and gm, putting it together, i think we'll build something very special here >> dan, you are standing in front of one of the crude holding autonomous drive vehicles that you guys are developing for general motors that you plan to go out next year that plan is going forward, it is separate of this work with honda, correct >> absolutely. well, it is related but the vehicle you see behind me, that's obviously taking an existing general motor of an electric vehicle platform. that's being going on for the last couple of years and you will see the vehicle that we'll

be working on as soon as the next generation if you would lielk of wh like of what we'll be doing. >> dan, i know jim got a question for you >> dan, i am reading stories about this of the 41% decline year over year what has to happen >> we are selling every bolt that we can produce, we are selling not just the united states but around the world. i am not sure of the numbers you are referring to but if you look at sales on a global bases, we are sold out >> okay, this was from jim kane, it is from the gm's spokesperson i got it from gm i didn't pull it out in thin air, i am trying to figure out i know your schedule increase production, i know that everyday

i come in and this company, tesla, they're producing and producing and you know this company tesla, i am being facetious, they're killing it. should the bolt be killing it? >> yeah, we are building every one we can and we'll sell everyone we can. we'll announce increase of production as we are referring to >> thank you, phil one last question here, you talk about the roll out of the crude self-driving vehicle, it is targeted to roll out next year, is that still the time frame do you believe you will be able to put it out the road for public use by the end of next year, is it a possibility that you can slide back maybe into 2020 >> yeah, that remains the goal, it seems to be working as fast as it can to improve the technology to get it to the point where at the right level of safety deployment to begin.

and i will reiterate of the safety deployment. we'll deploy when we deliver a level of safety that we think it is necessary as soon as we are ready to do that, we'll be doing it. >> dan ammann is joining us on cnbc on a day when general motors announcing a partnership with honda. guys, back to you. >> phil, what a busy week in auto business. we'll get cramer's "mad dash" and count down to the opening bell and one more look at the futures and at least f torhe dow. "squawk on the street" from the nyc, back in a moment.

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u.s. bank -- the power of possible. all right, we got two-minutes before we get starting here on trading of nyc. i would like to call it hump day, where do you want to go >> 10/04 everybody >> jeffery at wells fargo says buy it if you look at the chart to see if your sales have stalled, they are the entire growth of the bare market. there are concerns that even they are being pulled down by a category that is slowing i don't know but these two would indicate otherwise, david,

october 13th, i am going to have a conference where ill goi am go sit down with bill newells, they are making a $5 billion bet on constellation on marijuana, of course, it is called cannabis. i want to discuss that regardless of what you thoink of beer, they are the company that goes all in. it is just two hot button for everybody. >> it is against the law here. >> yeah, there is a federal law. you have been on this for a long time, do we call you cannabis cramer or mr. marijuana or something like that? >> as an investment thing. >> so i think this is a very big, big pull, two firms, he's got an analyst today and he talks about the intel.

there is a lot on the line >> yep >> cannabis, david, i am telling you $500 billion >> october 17th is not too far away in canada let's goat tet to the opening bl here, realtime exchange at the big board is hp doing the honors at the nasdaq, it is up a global freelancing website celebrating its ipos today ashton martin have dropped be low. yesterday, the biggest tech of ipo of all times >> alibaba had a bad day yesterday. >> didn't it >> i am sorry. >> it is, there is concerns of china and they are taking it out on alibaba >> goldman says they take their number, look at this price

target bump, 241 to 247. that's a statement >> that's six bucks, wow >> tesla is going to be a big one. interestingly, they already have significant investors in there already. >> talking about a million dollars in terms of raising a billion or two when they go public >> snap, blue apron, remember that day, $1.47. >> it is too early to buy snap and cool apron >> when public attend as i recall >> these were companies were challenged from day one, snap had a lot of people who want it and took a stake in it and the next big place to advertise and including our parent company >> blue apron is so challenged >> wow, snap is really ugly. >> yeah. i have a seen sense when it is

obvious when i look at a chart like this. >> they have a younger style government on the board. you can't dislodge those guys and snap is -- i don't know what to say about snap. it is that bad >> you are out of words? >> this has never happens before >> check the board of snap >> while are you doing that, jim, lennar is up >> in the end, you need gross margins and orders better, they did not get it when i look at these home builders, no one wants to own them that's what matters. it is just a bad place to own them every time you think that you are egocentric going to get a ns

so great no one cares absolutely no one cares and then kb reported great numbers and no one cares. >> there is no women i am trying to figure out what the heck is going on with snap, how can it be so bad >> mortgage is unchanged for the week but down 15% year on year average fix is ge. for the talk of the journal for the dividend >> i can give you a little bit more update or reporting >> what do you got >> holds on. >> i got my pad here listen, well -- i am still not sure of the dividend there are you g you go! they're still trying to figure

it out we saw the mood yesterday and s&p. we'll see where they'll end up >> the analysts love it. >> they love culp. they added 10 or $20 million on just culp everyone win with alld news >> institutions are like they want this thing so badly because all the rest of the stocks are moved so much and united te technology i >> what you are hearing and reporting are different in terms of healthcare and the spin the strategy is not going to change >> i hear otherwise. >> i know you do it is not about vision, it is about execution for mr. culp >> i am hearing he's examining everything i can't believe he's going to giveaway the healthcare

business >> you might be saying well they may go about separating it out differently. >> yes >> i don't want people to think that he's thinking about more separations or aerospace that's not at all. >> they got to turn around power. they can't turn around power they have to get rid of power. >> come on th service reserve news are worth x. >> why would you get rid of power at the bottom? you got to turn around when you can do something with it >> sure. >> foc >> i think everything is on the table. that's what i keep on hearing and that's why the stocks are going up >> it is in secular decline. why? >> because of alternative energy don't you have kids? talked to them about power

they make the wind >> you think there is more money made in those things >> there is one in brooklyn. >> they're different kinds >> does he call it turbines or turbines >> i don't know. >> are they going to stick with that stuff >> i have no idea. >> they should use american gaap numbers. ge always uses another set of numbers. >> jim, dow is up 133 and largely on intel, on a day jim wears morgan stanley cut numbers on semis >> intel is obviously if they get it right and meet the demand, otherwise, they'll not have a problem at hb data center won't have a problem. this is an amazing market, amazon is back if amazon did not pay, we did

not up the chart that shows intel can go to 60 they're saying intel is the right one and nvidia has moved too fast which is something i would not say. >> why is nvidia moving too far and too fast it is up 30 points in a couple of weeks. that's not sustainable >> you are still concerned of a slow down? i am concerned about intel not being able to meet production which then causes a ripple effect from everyone from micron to western digitals. intel is integral to the whole

system and intel is coming back a lot of people are thinking it is falling apart >> what did lululemon do withou a ceo? >> maybe that's a new thing, no ceo. obviously a tesla. na, i am quitting. okay, what do you want us to do? did you think he says something like all right guys, i am about to -- and i can't say it on-air? >> we'll have jim stuart about his column >> speaking of boards and shareholder meetings, jamie dimon, did you hear what he said at ai yesterday? >> we got to 8,000 public companies to 4,000 public companies. putting on the list of why that is and people study this and i

don't know why, capricious arbitrary litigations and frivolous shareholder meetings, i love my shareholders, i speak to them all the time that's what it is and we all know that. social groups take on -- i am not against by it. a lot of people don't want to go public >> anyone who has been a shareholder meeting knows what he's he's talking about exactly >> yeah, it is not appropriate venue anymore. >> i mean the best danish. >> rest in peace >> how about you have to offer something at the shareholder meeting. you have to have fruits and the everything bagel and danish.

>> so we'll lose monthly retail sales and lose our foreign guidance and shareholder meetings a lot of companies don't have voting rights. >> when i was out in san francisco last week, they really don't want to come public, yeah, who needs a scrutiny, i want to do my business that's why president trump when he says having twice a year numbe numbers, andy gross, says it is wrong. t >> i get the long-term and it is a constant debate and the team to embrace long-term goals and long-term vision but as an investor given the pace and rate of change these days, do you really want to wait half a year before you know how things are going?

in 2020 we'll be worrying about the off price? >> no, how about next month? we are seeing a nice rally and a lot of the tech stocks but not the cloud kings. it could not advance >> last week it was morgan stanl stanley talking about concerns on clouds. they take their target up to 53. >> oracle did not have a great quart and despite the fact they did not have a quarter that's showing -- alibaba is up on that note >> alibaba is up >> so as snap. >> snap is up? >> yeah. >> we should declare it a holiday. >> nvidia and snap >> there is no room for nvidia to be higher nvidia got to be cool. amd comes back down, i am

concerned of amd and having been up on the spike. i like the stock very much i am following the china stock they are strong again. china. >> every half hour you have to refresh. >> how could boeing be at 388? did it double? has this stock double? this is a big cap stock, people. this company is just on fire where does it last october oh, look at this, 255 and now it is 388 >> yes, i am aware >> that's every four planes. >> is it 20 or 25? >> one out of every four planes go to china. we have to move on, david. >> boeing is not the best down stock of the year but number four >> really?

>> how about disney. >> apple >> disney stock will act so well >> let's get to bob pisani on the floor. >> happy wednesday, great start to the day, two to one advancing of the stock china is still close and europe is mostly to the upside. folks, when you got financials up and tech up and healthcare up, that's what you want that's how you get 2-1 advancing to the declining stocks. we are starting to see new highs spread out a little bit. everyone even on the dallas and merck is at a new high and kcisco. the main trade story is starting to unwhine, the stories are simple go long u.s. small cap and short

china and go long india. these are starting to unwhine. look at the small cap situations, it has been for sale for the month. this is one month, the white line is the s&p and the orange line is russell 2000 let's look at china stock, jim just referenced this, they started rallying and this is the last month and this is the orange line, shanghai and the s&p. since the beginning of september and out performing s&p 500 that's a significant turn around because it has been a loser all year finally we don't mention it very much but indian stocks play here it is considers as a safe haven in the trade conflict. all year a big, big player, that's the orange line in the last month, that's been moving to the downside.

it is down 7% and s&p 500 is up 1% what is all of this mean the market trend, remember i keep on saying marginal mover of the stock market have been the trade war conflict if that starts unwhining things changed. remember the main play, go long u.s. small cap in the trade war. short global industrial name short china and emerging markets and number four, go long indian stocks all of these we have shown you of the boeing new highs have started to change and unwhine, this is assign that investors areless concerned of the trade war. maybe they'll be wrong you will see the market react to that right now the market is telling you it is a lot less concerns on trade war issues the other one we are trying to figure out when it is going to turn around is the whole bank

dilemma. we talked about it several times. theres the s&p 500 on the white line and bank stocks on the orange line, they consistently keep on under performing and under performance have increased in the last month. we have a number of small banks and 52-week lows. we talked about reasons about this, the main one is the yield curve being flat the feds can do it once. if the long end does not move much, you got a flat yield curve. that's what matters, the yield curve. all right, not bad but still not enough to get anybody excited. the deposit costs have been higher and they are paying more. overall cost, remember spending a lot of money of technology to continue you to enable you to bank nobly and that costs a lot, a lot of investments in talent

and technology you want to get the market moving higher, we need a little bit more energy in those bank stocks and at least today we are seeing that. >> carl k ba, back to you. >> let's get to the bond pit with rick santelli >> good morning carl, bob was talking about the yield curve there, we are hovering at 25 basis points with regards to tens and twos and obviously it is not the flattest since it has been it has not steepen dramatically. i am not sure banks have so much room to complain finances are different it is not the way it used to be. a lot of activities are predicated in the short and didn't the government sort of paid the banks to buy the bullets when they gave them all the money during credit crisis you can't have everything. look at today's 10-yr, we have the numbers a little better.

we keep on bumping up again. this is the 11th session we settle in a really tight range basically between 303 and 309. so we want to continue to pay attention, the pattern as you see from this mid september chart of tens, the pattern always seems to be that it consolidates then it moves higher if we look at italian, 10-yr, 331 is certainly not a low yield and draghi did awfully a lot to keep it lower than that. it sprung up however foreign exchange, we really worry of real long ranges outside emerging market issues in august. june 1st, the euro verses the dollar, it has dropped through the bottom of the range. the dollar index popped on this particular chart stops around

the third week of august we are continuing to close at the best level since the 23rd of august we are close to moving on back the dollar index continues to trade quite well and not in a super aggressive fashion is that the way you want it? carl, jim, david, back to you. >> rick santelli, thank you. when we come back, microsoft's highlighting some new products today. we'll hear from ahead of the company modern life and device business this morning. dow is up 113. s&p is just about five points shy. back in a minute (john foley) i was there in chicago when bob barnett made the first commercial wireless phone call in 1983. yes, this is bob barnett in chicago. (john) we were both working on that first network that would eventually become verizon's.

back then, the idea of a nationwide wireless network was completely unreasonable. but think about how important that first call was to our lives. it opened the door to the billions of mobile calls that we've all made in the last 34 years. sometimes being first means being unreasonable. i'm proud i was part of that first call, and i'm proud that i'm here now as we build america's first and only 5g ultra wideband network with unprecedented wireless capacity that will not only allow for phones to be connected, but almost everything-- transforming how we all live, once again. (bob barnett) as you know, this call today is the first call that we've made on the cellular system.

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after a day in which large caps buried small caps, dow continues to set new records of 109 as the names like intel, caterpillar, mcdonald's lead the charge we'll get stop trading with jim in a minute. ients everyday. we have the freedom to build a plan. a porfolio based specifically on their needs. we're fiduciaries, stewards of our clients' money. entrusted to do what's right.

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in semis xilinx, intel. they're recycling back to the ones that haven't moved yet. >> on amd are you -- >> i am a little cooler on amd because i think amd, that last big jump was because people felt intel was going to miss the market and lisa sue is terrific but that spike was not something that -- got the wrong kind of money in the stock. >> what's on "mad" tonight >> i've got cyrusone there's a big undercurrent that says the data center is slowing and gary, i think, will tell you otherwise. that whole storyline about the data center slowing, which i heard out there, too, i don't think it's true but we have to find out because holy cow, that would be a complete shift, a complete pivot in what people like it better not be true because there's not a lot of tech to like. >> big debate right now. >> yes, what a fun show. >> it was good, we covered a

lot. >> david, you're going lose on china, just so you know. >> no, i'm not. >> really. >> no. >> really? i'll make you shop if you lose. >> we'll go shopping at ollie's. >> see you at 6:00 p.m "mad money" eastern time when we come back, the head of microsoft's devices business on how the comny npa'sew products will fit into its new growth strategy. the dow is up 114. xilinx.

big day for macro as we got addp, now it's time for ism services now let's get to rick santelli, rick >> yes, the biggest swatch of the u.s. economy non-manufacturing and boy, oh, boy, a big number. 61.6 61.6 i have a 20-year database. that's the highest on it because prior to this 61.3 and august of '05 was the highest and keep in mind this series of numbers didn't start until 1997. so i'm pretty sure that even though i don't have that first year and a half, that is new all-time high for this series and once again it does underscore that there's a lot of issues with the u.s. economy and

some may say there's still some head winds to the u.s. economy and the notion of delinking with a slower global dynamic outside the u.s. can't last forever but this is a big number sara, back to you. >> rick, i'll take it. we'll watch for some reaction. good morning, welcome back to "squawk on the street," i'm carl quintinilla with saraizer a at the new york stock exchange we look at the macro along with other interesting indicators air the dow hit a new record high on the heels of that blowout adp report what it means for your money. >> putin now says the president is to blame for the surge we'll talk to global head of commodities research. >> plus musk's ultimatum a look at elon musk's battle with the tesla board and the

s.e.c. pulitzer prize winning columnist jim stewart will be with us to discuss. let's start with this rally. stocks surging on the heels of this morning's better adp report the dow hitting a new all-time high, up for a fifth straight day. job growth rose in september to its highest level in seven months private sector adding 230,000 jobs in september that was well above forecast comes ahead of friday's job report for september not necessarily a good indicator, that adp, but that builds further momentum to this case that our economy, in the words of larry kudlow, is killing it right now what will it mean for third-quarter earnings that is a big debate on wall street because we are about to head into q3 the earnings growth is an expectation of 21.6% that continues the streak of double digit growth. the question is how much that's already in the market because we are coming off of the third quarter where the s&p rose about

7%. >> powell calling this an extraordinary time for the economy. low inflation, low unemployment and richmond fed out with a series of tweets about the five indicators they're looking for in terms of worry lists, yield curve, nothing is flashing right now. >> flashing recession signals and you have a better tone overseas italian markets are up today the brazilian real is surging and then there's this small-cap large-cap divergence we're following. the dow is at a record high but the russell 2000 lost a percent yesterday. here's the chart for september they're moving in opposite directions and a few questions about this one is that the unwind of the trade war kind of trade where you want it knob small caps for so long away from the multinationals that are exposed and that's unwinding that we started to see some deals or does the small cap selloff

signal something more ominous about the economy? that's a question when you get small caps selling off. >> worst two-day start to an october for the russell since '09. you have to go back to' 09 to see a worst start. we mentioned oil with -- wti and brent trading. vladimir putin says he agrees with the president oil prices are too high but that he is okay adding such oil prices are to some extent the result of the u.s. administration, i'm talking about sanctions against iran, political problems in venezuela and looking at what's happening in libya if you want to find the culprit of who is guilty, you should just have a look in the mirror this as saudi arabia's energy minister says the kingdom will look to raise production by nearly 11 million barrels a day. questions remain about production capacity and the future of iran

joining us is goldman's global head of commodities research, jeff curry welcome back a lot of headlines today take putin's take for one. he thinks $65, $75 is a decent range. there's reports the saudis and russians have talked about boosts last month. how much of this is going to move things? >> there's two imbalances to look at, what is happening on the physical market and what is happening on the financial markets and what's been happening on the financial markets is moving prices it seems like off lot of investors and consumers. these hedgers hedging the risk of iran further out. that put upward pressure on the back end of the oil forward curve. we don't have producers selling right now which dragged the market higher despite a relatively balanced market on the physical side so the real issue what happens to iran there's a lot of uncertainty right now. we don't have a clear picture on it

when the journal talks about this rally reigniting calls for a hundred, is that ridiculous? >> well, if you have a sustainable loss in iran, 90 do 100 is a potential outcome here but we don't know at this point what will happen to iran there are three issues we're focused on one, what are the waivers going to look like we won't know until the sanctions go in effect until november 4 the second thing we're watching is the ability for producers outside of iran to respond that was what the russians said this morning and we'll find out what the saud disand others are willing to do. and the third is we're waiting for producers to come in and sell that back in. you look at deck 19 is trading at 7550. that's a really rich price relative to their cost structure. >> how much hangs on the question of whether iran can continue to sell to the europeans these work around which is the iran foreign minister as recently that has weekend said is in process

trch >> the key issue is access to global payment systems so we think about those that are the most exposed, big international companies like totale would be the most exposed but if you think about teapot refineries in the middle of china, they don't need access to the global payment system so it's not clear who will take this serious and the big issue goes down to waivers >> a lot of people come back in terms of supply to saudi arabia and there's an argument made that they don't have that much excess capacity. do you agree >> that's what the market is pricing. in a very immediate term it's constrained but we've seen a sharp runup in drilling in these key opec countries you have new pipes next year coming online in the u.s so the way i'd answer that question is very near term, yes. but you have the neutral zone in the middle east which is 300,000

barrels per day but won't be available for four months. russia has come out with several hundred thousand barrels per day but that needs to be redistribute sod very near term there is a concern and that's what the market is pricing on the back end the market is not pricing today's problem, it's price ago potential problem tomorrow based around capacity issues. >> that you think will resolve quickly? >> we want to be long oil. we're not in the camp that's going to 90 or 100 if you get the sustainable outage you go to 100 we will know what the waiver will look like we'll know those issues which is why we want to stay long until we get clarity once you have clarity on that then we can answer those questions about how much of a serious upside you have. >> the president is watching financial news this morning. tweets, blowout numbers on new jobs and separately services, referring to the ism number we got moments ago. is the president going to do

something that would take oil to $100 >> you look at -- it was secretary perry came out and made it clear that they talked to the saudis, the russians and others to increase production. they have not taken the spr off the table, the strategic petroleum reserve. it's an option we have seen clinton use it before so the president can use 30 plus million barrels to try to ease the situation so i tend to think no they don't want to see oil prices spiral up to $90 to $100 a barrel which is why we think let's be cautious and think about how do you manage this you want to be long oil but i'm not pounding the table we're going to 90 or 100. >> did you see the president's rally? he mentioned saudi arabia. he was talking not necessarily about oil but about paying for military he said i love king soloman but i said king, we're protecting you, you might not be there for

two weeks without us you have to pay for your military you have to pay. >> i would argue the relationship is relatively a positive one, where was the first place trump went to when he left the united states? saudi arabia. >> but isn't he angry opec didn't raise production to fill the gap from iran? >> saudi came out today and announced they have oil on the market right now so they are responding at this point in time but in terms of you need allies in the region given the geopolitical risk there. >> is there sense the uncertainty regarding trade and tariffs in china is dampening demand for energy? >> what we find and you can see in the the metal space is it's leading to destocking. if you have a strong dollar globally like we have right now which raises funding costs around the world, if you think it's temporary, run down your inventories until you get a

better vision on what the forward looks like but which we think is forcing buying in the market that's part of what made the pop in oil was chinese had to reenter this market. >> are they getting enough are the chinese getting enough there's talk about shipments being choked. >> there is an issue that one of the big russian ports on the eastern side of russia is at capacity and we've seen prices going up which is the whole issue that, hey, you'll have to find other export facilities to get it there. >> very quickly. so just because you raised this possibility, if they decide to release the strategic petroleum reserve, what would happen to the price of oil >> in terms of the question again we don't know what the iranian potential is probably create a trading down side it's filling a hole. the question is, we don't know how big that hole is right now that's $90 to $100 scenario, that hole is you lose all of iran our base case is you only lose 1.4 out of the 2.5

>> you said 30 million, though that's three day's production, right? >> if you look at it over the course of 60, 90 days, you can make investments in the opec countries to bring on capacity i'm not saying there's not massive upside but i think we have to be cautious and think about it's not an unmanageable position. >> normally studying this is like 3d chess but today it feels like 4d chess. jeff currie, thanks for being here. apple ceo tim cook sitting down far vice news interview for a wide-ranging conversation. he commented on the business of selling user data saying he tries to collect as little of that as possible cook spoke out about user privacy and government regulation listen >> i see privacy as one of the most important issues of the 21st century i'm not a pro-regulation kind of person, i believe in the free market deeply. when the free market doesn't produce a result that's great

for society you have to ask yourself what we need to do and some level of government regulation is going to come out of that. >> tim cook is continuing to reiterate his position and successfully making the point that we at apple are not like google and facebook. we don't take your data, we don't use your data, we don't monetize your data it's been a theme he's been hammering all year long and he took it a step further saying he would endorse government regulation, unclear whether apple would be subject to that because of siri or anything like that but clearly making the distinction. >> it's not their business model. >> they don't make money off advertising. >> his point is we could create another significant revenue stream if we chose to but we choose not to and it's a central part of the business for facebook and alphabet. >> it's interesting that even as apple -- even as amazon is calling for federal minimum wage

to make sure it's not at a disadvantage, apple is saying let's bring in regulation to make sure they're not at a disadvantage, too. >> everybody facebook and google nobody is saying don't regulate us i think they just want to be a part of whatever is going to come as they see winds moving in that direction. >> not an accident they gave this interview to vice where you're reaching young people who have concerns about this very thing. >> absolutely. when we come back, elon musk's ultimatum -- fight the s.e.c. or i quite. pulitzer prize winning columnist jim stewart will talk about his story in the "new york times." plus, the ceo of the chambers of commerce is with us. we'll get his take on the trade war and how business is responding to all kinds of different factors. take a look at the top w rforming stocks on the s&p dois up 145. we're back in a moment hi i'm joan lunden.

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shares of tesla not doing too much as you see, down a little less than 1%. the "new york times" reporting james murdoch, who is on the board, being bandied about as one name to replace elon musk as the company's chairman that's when murvsk takes a three-year mandated absence from the chairman role as part of his s.e.c. settlement. the paper reporting the embattled ceo threatened to quit tesla when he was faced with the s.e.c. lawsuit and the willingness on the part of the board to settle. join us at post 9, pulitzer prize winning "new york times" columnist jim stewart delving into dealings of boards all over america. very interesting here.

not, i guess, a surprise he has so much power over this board, doesn't he, jim >> well, evidently i mean, you know, when we first saw this happen last week i was thinking to myself this is a textbook case of how not to handle an s.e.c. enforcement you negotiate a settlement, you get the commissioners on board, then at the last minute you pull the rug out from under it, refuse to settle, fight them, make a provocative statement that rubs salt in the wound of the s.e.c. and for claims that the guy has all this integrity when they have just cited tens if not scores of false statements i thought okay, what explains that the answer is he said it's my way or i'm walking out i don't get my way, i'm out of here which is rather immature behavior and the board caved faced with that as the dire alternative, he got his way.

it's not just tesla. with any of these companies with a charismatic founder with a big chunk of stock who's willing to behave basically like a child they're vulnerable, what can they do? >> tesla -- there aren't too many companies i can think of where the ceo is so integral to the perception of the company itself and conceivably its valuation in the stock market. >> i think there are some other silicon valley example a terrible one is theranos, with elizabeth holmes, they marched off the cliff with her. >> never a public company but yes. >> uber not a public company but then they had a charismatic leader, they seem to be negotiating a transition there it's not that unusual and i want to give credit to tesla and musk, they have accomplished phenomenal things that's why it's tragic they would let it get undone by this kind of essentially -- >> but he came around it i took a couple days and pressure from investors learning

about the potential settlement he said no to but then he reversed himself. >> he did and i think the stock plunge had a huge amount to do with it as well as every commentator i know saying this is a great deal, you're crazy not to take this and his lawyers and advisers saying the same thing. they went in and begged to get a deal and they didn't get the same good deal they would have had if they didn't do the sensible thing to begin with thursday. >> who will chair this company >> well, i know there are board members who would love to see james murdoch do it but i think the key is, from all i know he would be a good choice he'll be leaving 20th century fox. he has time and you'll need time that chair job is going to be a full-time job and then some but it has to be somebody who musk will listen to from the get-go i would have to sit down and say i want your solemn word that you are never

going to threat on the quit like that again that is no way to treat a board. a board is an asset, a chairman is an asset. musk has tremendous strengths. as we know too well, he has some weaknesses and this's where a board can help who is going to want to do this job has to be somebody who knows musk, who can get along with him, who's mature, who has very thick skin and who has confidence murdoch is good because he doesn't need the job, he doesn't need the money. >> he knows the company. >> he knows the company, he knows the personalities. he would have the stature to say if musk is behaving in a completely juvenile inappropriate way he can say look, i'm out of here, i don't need this, i can leave and that would help to curb his impulses. >> do you expect now that the s.e.c. has put these rules in place, more independent directors, new chairmen, things will be better from a governance standpoint or not? >> experts i talked to on this

are skeptical. unless musk is ready to look himself in the mirror and gain maturity, he is in a controlling position, he has a large economic stake in the company, his identity is tied up in the company. he could threaten to leave -- >> you think the position of two independent directors will change the balance of power at all? >> it will -- can't hurt i think whit heit will help butl depend on musk's willingness to accept guidance. >> a viewer said apple did okay without jobs my answer back was because he created tim cook is there anyone you can think of who musk created as a successor, heir, anything like that >> no. everybody told me this is not apple and steve jobs -- yet. maybe there could be somebody groomed but there is no one there. >> jim, thank you. >> sure. >> jim stewart. >> another good piece on tesla.

when we come back, the u.s. ratcheting up the pressure on china as the new usmca deal coming forward plus, microsoft unveiling its latest products. we'll have them on set ghbat"ilbe the stree wl rit ck dow is up 162 points don't go away.

>> do we want to change? we realized we just made a decision, you can offer competitive competition or decide to lead so when we framed it that way we thought let's decide to lead i think people will follow. >> that, of course, was amazon ceo jeff bezos in washington explaining his decision to raise amazon's minimum wage to $15 an hour in a move that is widely expected to have ripple effects not just on its competitor bus the economy at large weighing in on wages, tariffs, business sentiment in a cnbc exclusive from their ongoing 2018 small business summit we welcome tom donahue back to the show, president and ceo of the u.s. chamber of commerce

nice to see you, tom. >> i'm glad to be here. >> what effect do you think jeff bezos' move will have on american business and the economy at large >> well, jeff made a good decision for his company and he made a very interesting statement about being the leader and hoping others would follow to the extent that they can and i congratulate him i think it will be a stimulus in more than one way. the second problem in the worry about wages, what we most have to worry about is workers, we basically have just about run out of workers and we've not only run out of workers that are not skilled but we've run out of skilled workers and there is a lot we have to do to keep this

economy going and remember the two things that makes an economy move and this is quality workers and good investments and thanks very much to bezos for entering into this in a positive way. >> sort of raises the question, tom, if we are experiencing this tight labor market and a shortage of workers why wages aren't rising more they are slowly creeping up but with everything positive happening in corporate america, shouldn't they be moving higher? >> well, when you talk about wages, we have a small business summit going on with more than 500 people from around the country and if you talk to every one of them individually, they are all differently equipped to raise wages and all need different kinds of workers the problem with massive mandatory minimum wages is a lot of people can't meet those but what mr. bezos did is he said we

can and we will and others i believe his view is others will follow as they can. >> tom, yeah, but amazon said they would advocate for a federal lift to the minimum wage to 15 from $7 and change is the chamber behind that >> we have to look at that in a serious way and how long will we take to get there. but i will tell you if you look at 28 million small businesses in this country there are a good number that can't go to a $15 minimum wage and many are in places around the country where costs are much low er than they are in large cities so you can have a minimum wage but private

leaders and trendsetter cans help in specific places. >> tom, to the extent that you're correct that you are almost out of workers, as you put it, what will the chamber do to change that will you advocate for my immigration? anything else you can do in terms of increasing the pool of available workers? >> well, increasing the birthrate isn't going to get us many 21 and 25 and 30-year-olds very soon. so we're going to have to look at what we do either with our current immigration rules and regulations or with others that we would put in place but the best thing is to deal with that after the midterm election. >> what do you mean by that? wait and deal with what? >> well, deal with we're going to have to do any questions in immigration, as you asked. and i think right now we're

trying to work on these trade issues we're all talking about and i'm very pleased that the president and lighthizer and others came to a positive conclusion about staying with the group of canada, united states, and mexico for all of the values for all three of us now we're in a position to go further and deal with other negotiations that are going on with the eu and the things that have to be done with canada and then hopefully begin with each step going on to be able to get rid of those tariff which is the president indicated would probably follow the conclusion of a new deal. >> so you're pleased we have a new nafta deal, the usmca, and that it includes canada and mexico but what about the details do you support them? there are some questions about whether this will lead to higher

costs, especially for american auto makers. steel tariffs are still in place with canada. more parts have to come from north america which could add to the burden and drive up prices of american cars are you on board with all that >> well, this is a broad and deep trade deal. some things we're very happy about some -- and we're just beginning to go through the it some are staying pretty much the sa same and there are some changes we have to work with remember what happens now. we have a couple months, i hope shorter, to sort of get this all framed out and appropriately put in trade language and there will be some fixes. larry kudlow at the white house was talking about some of those issues where we are, we feel we're in a good place

we think we can move forward, make adjustments and be with a deal that does many of the things the white house has said are positive for the economy and positive for the american worker but as you said we want the president to keep going on china and we want to remove as quickly as we can tariffs on steel and aluminum and other things that are not necessary now that we've come to an agreement. >> and they're still in place, tom, thank you we hope you come back as we move through the china trade negotiations tom donahue from the u.s. chamber of commerce representing american business. >> let's send it over to sue herera for a cnbc news update. sue? good morning, david. good morning, everyone here's what's happening at this hour. a federal investigation is under way into letters containing toxins found at a pentagon distribution center

secret service intercepted two letter which is tested positive for the poison ricin investigators found a third envelope addressed to the white house and president trump but there was no word if it contained the same substance indonesia's national disaster agency expects the death toll from last week's earthquake and tsunami to rise to more than 1400 which so far have been killed and thousands more have been injured and r and the region is dealing with another issue today, a volcano that began erupting. the new york city area cleaning up from a fierce line of overnight thunderstorms in chappaqua, about 30 miles north of manhattan, multiple trees were uprooted and fences blown apart. the storm triggered a confirmed tornado in ronkonkoma on long island no reports of injuries. and frances arnold becoming the fifth woman ever to win the nobel prize in chemistry arnold, with the california institute of technology, won for her work in developing enzymes

and anti-bodies that led to new pharmaceuticals and biofuels congratulations to her. that's the news update for this hour. i'll send it over to jackie deangelis with the eia inventory report. >> we got a build from the eia, eight million barrels, that was a big build when the expectation was for a drawdown of two and a half million this was the biggest weekly build we've seen since march of 2017 see oil prices are under $75 but with a number like this i would expect they would trade much lower. they're not because the support has been in the marketplace, the market wondering what will happen on november 4 when the iran sanctions are put into place if that oil evaporates very quickly, it will create supply constraints eia saying gasoline saw a small drawdown and domestic production was unchanged on the week, 11.1 million barrels a day being produced here in the united states guys, that sounds like a big number but, remember, we're not

that efficient at moving the oil around yet so that is still an issue for us back to you at post 9. >> jackie, thank you very much. time for our etf spotlight, keeping a close eye on brazil today. country etf ticker ewz jumped more than 5% after posting its best day since late january. the latest electoral polls show brazil's fire right presidential candidate has gained significant ground investors see him as a better candidate, behind him is leftist fernando haddad from the worker's party which has been mired in corruption's scandals brazil's country etf up 11% since monday on pace for its best week since march of 2016. when we come back, microsoft's new product lineup, the head of the company's devices business will join us. dow up 151 we are 75 points from dow 27k. back in a minute

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welcome back to "squawk on the street," i'm sara eisen with carl quintinilla and david fiber. things are looking strong today both in terms of the stock market and the economy the dow at a record high, s&p 500 tracking for a record close. nasdaq up half a percent strong numbers on private sector jobs on services and also italian markets are bouncing both bonds and stocks helping to the better mood overseas. >> all right meantime, microsoft releasing several new device this is week. the surface pro 6, surface laptop 2, surface studio 2 as well as head phones, let's look at their recently unveiled devices. yusuf mehdi is microsoft's cdp of modern life and devices he joins us on the floor for a demo >> and yusuf, thanks for being

with us. surface has become over the past six years a real contributor to microsoft. you have some new devices out. $900 for this one. a thousand for this one and head phones starting at $350. that's premium price why did you do it? what do you get? >> a couple things before we jump in there. the big focus for us is crazy digital life where work interrupts life, life interrupts work, how do we build technology that empowers us and keeps us productive the head phones, negotiation gorgeous audio it comes with built in ai and cortana so you can click one button and say "when is my meeting? you have 13 dials of echo cancellation so if you want to shut out all the noise, dial it and when you take them off your head it

pauses anything you're play ing so they're smart integrate addi type head phones. >> to are engineered in house at microsoft. headphones were hot three, four years ago. what's the opportunity you see >> in our minds the big opportunity is how do we help you get to the new level of productivity how do we usher in that new era? these are work and life head phones they're fantastic for music but you can cult across both. >> we have this new program surface all access basically you're allowing people to pay monthly for the cost of the device plus office 365 over two years so that's the $200 cost of office 365 plus the device, no interest through dell financing which is interesting hardware is a service, trying to bunding that cloud capability. what's the thinking? >> as you said, we've been going

the surface business fantastically and we've heard how do you make it easy to get into the best of microsoft so surface all access one way to say i don't have to worry, i get one fee, i can get all office 365 back up and storage, great new hardware, if you want to add accessories you can do that. >> the pc market has been declared dead many times even intel was caught by surprise they there have been chip shortages they say that they'll be able to meet their revenue targets but there are concerns about shortages. what are you seeing as far asbly people are sticking with the pc and what do you think they'll want this holiday season where are you placing your biggest bet segment wise >> to your point, in spite of those proclamations, 250 million pcs will ship next year and we're making a bet this is still the premier device you use to create, to collaborate

we're bet tong high end of the market, that's why you see is surface pro 6 and surface laptop 2. we bring in pen, ink, ai and provide you incredible functionality. people want those. >> six years ago when you got into this market there was concern from your partners, the oems, that you were going to cannibalize them your argument was we're coming in to set the bar higher, trays profit threshold for everybody frankly, compete with apple and that thousand dollar plus segment. has that worked out or are you hearing pushback from oems >> it's worked out that way. we've had great success. we've grown share against apple for every quarter for the last two years running on the back of a superior value product petter performance, life and battery life our oem partners have raised

their game, too so you see incredible machines coming from them so i'd say the strategy is working great. >> what happened to the tablet this has a keyboard attached to it lots of people were trying to compete with apple on the ipad front. tim cook proclaimed the ipad was going to eat the pc, doesn't seem to have happened. >> i think what we've learned is that people do love this keyboard and to be productive which is the big thing people want you need to have a full functioning keyboard track pad, mouse. >> it comes with this. >> we sell it as an accessory. >> oh, okay. >> but the capabilities, you get a track pad, you get a mouse so that capability is what sets it apart versus an i pad which is a consumption device this is a productive device. >> we'll see how you do in q4. thanks for being with us. >> thanks, john. >> cool demo, john thank you. as we those a quick break, look at where the major averages stand. record territory for the dow and

the s&p 500. it's a broad-based rally as well within the s&p it's led by industrials, financials and technology ssn. materials are lower on the "squawk on the street" will be right back oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

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welcome back to "squawk on the street." record highs for the dow here's who is leading the charge -- intel, caterpillar and apple. as far as the point additions to the dow's rise it's boeing, apple and caterpillar. financials are in a leadership role today which is a change from what we've seen after a brutal few weeks still down, though, for the year, david. let there's just a better tone, whether coming from international with this bounce for italian bonds and stocks or brazil or the u.s. where the

data keeps coming in better and bett better. >> wage inflation becoming more of an issue because of amazon's move but it's interesting, particularly to note the likes of bowing which continues to go higher in the face of potential -- not potential, with the trade war with china i think we can say trade war now, right >> skirmish is a smaller fight within a larger war. dimon used the word skirmish we have to figure out our terms. >> it's between a skirmish and war. we haven't put tariffs on all of the imports coming into this country. >> we're close we have another $200 billion. >> but that's not what the market is saying industrials have been outperforming for the last few days, even the automakers are getting a boost. >> there is still a trade war with china, that's not what the market is saying

i'm going with war. >> the market likes the new usmca. >> that's group. let's get to the cme group in chicago rick santelli joins with us the santelli exchange. good morning. >> good morning and good morning to ira, harris at 10:00 eastern something funn. dollar index made its highs, we almost touched 3.11 with 10s everything rock and rolled a little bit nonmanufacturing, zoom, zoom, zoom. >> good data this is the power of fed now so the market is paying attention because powell has told you, forget accommodative, i have flexibility. because when he removed that phrase, what does that mean to you? they're now flexible, they're not locked into anything when the data is strong, the market reacts accordingly and that's what we saw this morning. >> and it's such a powerful number the service sector obviously the biggest swatch of the u.s. economy. and this series started in july of '97 my database started in september of '98, i carry 20 years with

me the second read in august was at 62 other than that, this is the highest. now, if you were a trader, how would you incorporate the consumer confidence at lofty levels, this ism manufacturing and the peak how do you incorporate that into your positions >> data. all of a sudden data -- it's not just mouthing words. powell has laid the framework where data is important. >> not the same way as past guys, right? >> not at all. >> or girls. >> greenspan locked us into a bad situation. bernanke and yellen picked up the baton. now powell says let's roll that back let's remove that forward guidance and let's look. at least the market will have a sense of what the fed may do. >> you, like many viewers, have this nervousness that the fed historically never gets it right because, you know what, there's no way they could get it right let's be fair to them. they're not going to ever get it

right. the economy of this country is too complicated. but in the end do you really think that he has the mental capacity in such a leadership role to take his foot off the gas? >> yes, because i think he is a risk manager when he gave that speech in jackson hole paying homage to what greenspan did well, and greenspan was a very good risk manager, saying in a sense this is what he wants to be i want to be a risk manager. by being a risk manager, you have to be flexible. you cannot lock yourself into a position otherwise we'll get long-term capital. >> i was a firm believer when the market had its big gap after the election november 16th, it wasn't that many months later, other economies started to improve. if we start to really hit our stride even more powerful, is divergence going to continue or are we going to help turn overseas markets. >> we have to look at this number one, the dollar will play a big role in this because one of the residues of the fed

program, whether they want to own it or not, is the vast amount of dollar borrowing that's taken place around the world. if the dollar is starting to go up along with interest rates, the global economy becomes somewhat vulnerable and that's what they have to pay attention to. >> excellent watch out for too strong a dollar ira, thank you carl, back to you. when we come back, amazon's product unveil what the company's new gear means for other device makers. the ceo of sonos will join us to talk about the threat. meanwhile, the dow hgianng on to a nice 154-point gain. we're back after this. we de environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. that's right, $36,000. which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk, it's our healthcare. can i say it? what's in your wallet?

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welcome back stocks are holding on to some of the gains helping to contributing to the positivity but you can see the material sector, the only one in the red so far one of the biggest laggards in the sector, you've got paper and cardboard stocks like international paper, also packaging corp of america and westrock as well each down by over a percent and continuing their downside trends. westrock did hit a fresh 52-week low in trading so far today. now i'll send it back to you, sara, at the exchange. >> all right, dom, thank you.

coming up later today on the "closing bell" big news on gm as gm and honda partner up. bob lutz and former chrysler president, jim press, are both with us to talk about how big of a game-changer this is potentially for the industry that's coming up on the "closing bell." shares have been unable to hold the highs of the open but gm is an interesting story. when we come back, jeff bezos and tim cook speak out we'll get to that next don't go away.

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