it is 5:00 a.m after yesterday's wild session, futures now making a comeback today. we are down 200 points the reason and some advice for you all ahead. president trump stepping up his attacks on the federal reserve. is he right that rates should stay put in europe, tim cook wrapping up a big speech on your privacy we'll take you there live. oil continues to drop. a two-month low. we're drilling down on why and if you were hoping to win the biggest jackpot in american history, well, it's not you unless you're one family in

south carolina that has the ticket maybe it is you, and if it is, you're watching the perfect station because you're now a billionaire. that's all on this wednesday, october 24th as "worldwide exchange" begins right now ♪ good morning i'm brian sullivan thank you very much for joining us we'll get more on that mega millions story as one family becomes an instant billionaire but they may be the only ones happy financially right now because it's another weak day for the equity markets dow futures have come back a bit and indicating a drop 155 points s&p and nasdaq futures are also significantly down all of this after the market almost came back all the way from a 500-point drop yesterday. the european markets are higher

across the board not by a lot but by a little the asian markets closing higher after a turbulent morning there. no big gains, but we are seeing slight gains and at least it's not multi percentage points drop let's kick off the action with nancy hungerford live in our singapore newsroom for you nancy? >> hi, brian what i can tell you is just in the last few hours this story did change we thought we were looking at a bigger rebound in asia and momentum faded in the afternoon session. we did get a positive close for the shanghai composite but just bare barely at one point this index was up more than 1% we saw strength in the financial sector, some of the banks with earnings in focus there. also some bargain hunting going on with expectations that we'll get more monetary stimulus

support and liquidity support. the nikkei 225 finishes higher by 0.4%. you can see a clear amount of red on this board behind me. the south korean market struggling to hold on to gains earlier we saw some big chip names under pressure for the south korean market. you can see the hong kong market is under pressure. what started off as optimism in the morning changed throughout the afternoon. >> nancy, thank you very much. let's shift gears and go to europe we have a mixed market julianna tatelbaum has more on europe's trade >> good morning. yes. some similar trends here in europe this morning. we saw a nice rebound in early trading with the euro stoxx 600 trading higher but trading has become more mixed in recent moves. as you can see behind me, the italian stocks turning lower the dax turning lower. firmly iy

on the positive side, a strong report from one of the key luxury names, that's bringing up the whole luxury sector and contributing to a nice positive move in retail but also on the data side, some less optimistic news eurozone pmis disappointing expectations and casting a shadow of those positive moves we saw earlier today back to you. >> julianna tatelbaum, thank you very much. there is your global setup this wednesday morning. if you missed "mad money" last night you missed an important show the wild moves yesterday got jim's attention. >> i think the next decline will produce buyers at levels we saw today. not sellers. we're going into a seasonally positive period. the bottom may be put in on the

next swoon down if it isn't in already. >> let's bring in our friend matt maley, a man who did not sleep last night after the sox winning game one of the world series we know it's rough on you today, but it's an important today. we got your excellent note what did yesterday's market action say to you? >> it's funny because i agree with jim we could see and probably will see another swoon. we're seeing it in the futures now in overnight trading one more decline to watch things out. more significantly hopefully get a year-end rally that we always seem to get in mid election years one thing that makes me see this is the -- we're seeing a big wash out move in some of the groups that have been sold off big time this year the housing stocks bank stocks.

those saw turnarounds yesterday. those could signal capitulation in the market sometime soon. >> is it telling we're not seeing a market or futures market that has turned around that we're down 150 on dow futures? we're not getting right now that follow through >> no. and that's a concern so i think we could see it dip below yesterday's lows before we see that find ultimate bottom. the thing right now, is that throughout the year we have had -- we faced headwinds. the one thing we've been able to push us through the headwinds has been good earnings fabulous earnings. now we're seeing signs in the last couple weeks, and especially yesterday with 3m is earnings may not be as good.

we have higher interest rates, trade tensions with china. in europe, everybody is concerned about the european bank s because of italy we need to get a reset at lower levels before we stabilize >> i don't wausually the united markets lead the world we move and asia and europe follow us. looking at asia now, in some ways is the chinese market leading us >> yes to a degree usually there's a leadership move but they move together. you notice china, but also the german market has been something that's led the world over the years. we see that thing has rolled over not only did it move below the 2018 lows, but also below the 2017 lows. that's a concern the thing is there's such a wide

gap between u.s. and everybody else, the fact we're playing catch up or catch down with them is not a surprise because we don't have that synchronized global growth that we saw at the beginning of the year. >> matt maley laying it out for you on an important couple market days. at the top of the show we said let's get matt up early. we know you can do it. >> especially during the world series >> another game tonight, my friend the president has taken notice of the markets and used the volatility to step up his attacks on the fed and fed chair jerome powell in particular. trump sat down with the "wall street journal." >> the president telling the "wall street journal" that he thinks the fed is the biggest danger to the economy because it's raising rates too fast. in a sit down in the oval office he took new aim at jay powell

saying every time we do something great he raises interest rates he added it's almost like he looks happy doing it when asked under what circumstances he would remove jay powell as chair. he said i don't know the fed raised rates six times since the president took office. it will likely hike rates again in december. this is not the first time the president voiced criticism of the fed. earlier this month the president said the central bank was going loco and out of control. the fed declining to comment on the president's remarks. back to you. your three big single tock stories involve banking, semiconductors and a robot volume deutsche bank saying third quarter profits fell 65% ouch that was on a slump in trading revenues, but deutsche bank says a turnaround plan is taking hold the ceo noting the bank is on track to return to profitability

by the end of the year. texas instruments under pressure they reported a revenue miss, slashing fourth quarter guidance that stock is getting slashed as well it is down almost 7% and roomba vacuum maker irobot shares sharply lower despite an earnings beat that's because the company says it will take a $5 million hit i the fourth quarter due to china tariffs. irobot says it will not raise prices on the consumer to ward off the impact of tariffs. that stock down just under 8%. on that note, up next, how chinese exporters are feeling the heat as the trade turmoil ratchets up. we're headed live to china's biggest trade fair ahead before that, tim cook goes on the record. what the apple ceo is saying about your data pracivy. we're just getting started on "worldwide exchange. we'll be back after this

ongevit- americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for? - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. yesterday the perfect day. a little colder today. there's new york good morning 5:13 get going. tim cook sounding off on data privacy. he finished up speaking at a technology conference in brussels, belgium. let's hear more about what he had to say elizabeth is there with the

headlines. >> brian, apple ceo tim cook delivering a strong message about data privacy regulation at a conference about data privacy in brussels. he said it is time for u.s. federal regulators to adopt comprehensive privacy laws, similar to those already in place in the eu. >> not only here in europe, but around the world, regulators are asking tough questions and crafting effective reforms. it is time for the rest of the world, including my home country, to follow your lead we at apple are in full support of a comprehensive federal privacy law in the united states >> so the message there from tim cook is that it's time for companies like apple and other tech companies to embrace new laws that protect user data. he pointed to some key points in

gdpr, the general data protection regulation, the sweeping set of privacy rules that went into effect across europe earlier this year a couple of those rights is to access your data, the right to be forgotten and the right to security there is a lot of user data out there that tim cook said companies are abusing. he had some strong words about surveillance, and that it is important to treat data like precious cargo >> elizabeth, great to see you thank you very much. turning to trade chinese business owners are also feeling the heat as the trade war with the united states ramps up eunice yoon is live at china's biggest trade fair where is that, eunice? >> it's in gathe heart of

manufacturing here in china. this is called the canton fair it's where american buyers and other buyers can connect with chinese manufacturers to decide if they'll source here so this fair has been going on for decades. but this year because of the trade war people are nervous so the discussion has mainly been about what to do to try to minimize the impact of president trump's tariffs. i was speaking to one american buyer who said he just worked out a deal to try to sell frying pans, but without a gift box because believe it or not the gift box has a 10% tariff. those are the creative solutions that people are talking about here today secondly what i also learned was that american companies are much more dependent on chinese suppliers than one might think this is what one american buyer said about moving the global supply chain out of here >> the supply chains have been

developing for 30 years. so just pulling out is not an option for my company or for many companies these are robust supply chains not just the factories, but the printers that support the factories, the other suppliers >> brian, what i found most surprising here is how chinese manufacturers are cutting better deals for nonamerican buyers the manufacturers are worried about their businesses because of the trade war so indian buyers, for example, as well as middle east buyers are saying they're getting better deals one indian buyer told me he was surprised at how much the chinese suppliers were able to go lower in terms of price while these nonamerican buyers are cutting better deals, u.s. buyers are still trying to deal with extra costs >> you talked to the

manufacturers, now you talked to the industrial buyers what about the consumer are they saying to you they are feeling the impact of these tariffs? >> well, they are not necessarily feeling it so strongly, but because you are hearing all these different stories, like what's happening in the stock market or what's happening with the data with economic slowdown, people are just getting more nervous. they're starting to cut back so you are seeing an impact in terms of consumer spending people are starting to make decisions to try to perhaps not upgrade their next iphone because they're worried about what they're seeing. >> thank you still to come on the show, is this real estate's biggest risk why one investor might agree that the federal reserve is going too fast and jackpot we have a winner one person in south carolina -- one picket, one family this close to being a billionaire we have a winner

we'll tell you how much they'll take home. stick around 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪ even when nothing else is. gopi's found a way to keep her receipts tidy, (brand vo) snap and sort your expenses with quickbooks and find, on average, $4,628 in tax savings. quickbooks. backing you. there are so many toothpastes out there which one should i use? choose one that takes care of your gums and enamel. crest gum & enamel repair cleans below the gum line and helps repair weakened enamel. gum & enamel repair, from crest.

welcome backs. there's a live look at washington, d.c. despite many american ceos not attending the saudi investment initiative, they are

calling the event a success. let's go to hadley in riyadh >> all eyes will be on riyadh when in a couple of hours from now we are expected to hear from the crown prince of saudi arabia, mohammad bin salman this is the first time he has spoken out since mr. khashoggi's death and disappearance. this is a major international summit for saudi arabia, and despite some big-time investors pulling out at the last minute, there's been a strong presence here from russia and asia and it's still well attended this is against the backdrop of that speculation following the investigation into mr. khashoggi's death and the president weighing in yesterday saying it's been utter chaos let's listen in. >> they had a very bad original

concept. it was carried out poorly. the cover up was one of the worst in the history of cover ups. bad deal, never should have been thought of somebody really messed up. they had the worst cover up ever and where it should have stopped is at the deal standpoint where they thought about it. whoever thought of that idea i think is in big trouble. >> u.s. president donald trump weighing in on the investigations into the death of mr. khashoggi a couple of weeks ago, saying something really messed up. he didn't mention the crown prince specifically. now we'll be waiting to hear from his royal highness later this morning but one topic of conversation is the fact that the united states decided to revoke the visas of at least 21 saudi nationals that they believe are involved in mr. khashoggi's death. >> hadley gamble, thank you very much let's check the other top

headlines including the latest position on the migrant caravan working its way through mexico phillip mena has more. >> good morning. thousands of central american migrants will continue marching through mexico towards the u.s. border today despite fierce criticism from president trump multiple government sources in the u.s. tell nbc news they're tracking a new caravan taking shape in el salvador. and in rome, an escalator starts speeding out of control the malfunction flung at least 20 people don't stairs at a subway station at least 30 people suffered injuries, none were life threatening. many of the victims were russian soccer fans headed to a match. if you had to do a double take, you're not alone could you be any more like ross. this suspected beer thief in england was first thought to be actor david schwimmer from

"friends." after police asked for help identifying the booze stealer it sparked a social media firestorm. officers had to issue a statement saying sha whimmim scr was in america at time >> rachel. can you do it? >> i'll leave it at your version. >> mine is terrible. thank you very much. up next, the big vix risk. our next guest is calling it post-traumatic volatility disorder he's advising clients to deal with it. and breaking down how the trade war may be impacting some of the biggest names in luxury stacey widlitz has a great rbi r yofou. stick around

take your razor, yup. up and down, never side to side, shaquem, you got it? come on stay focused. hard work baby, it gonna pay off.

it's no longer enough to be fast. so it's no surprise that the company that led the charge to fast, who built the nation's largest gig-speed network, is already moving-beyond. beyond wifi that just connects. to wifi that thinks about what your customers want. helping you to compete. beyond the reliability you expect. to knowing that if the power goes out, business goes on. ♪ ♪ beyond chasing down network problems. ♪ ♪ to a network that shows you when and where there's an issue.

beyond clumsy dial-ins and pins. to one-touch conference calls. ♪ ♪ beyond low-res surveillance video. to images so sharp, they can help protect your business. ♪ ♪ comcast business. the company that delivers unrelenting speed in more places. is also the company that's redefining what a provider provides. comcast business. beyond fast. market alert if you're hoping for a recovery, maybe go back to bed the dow pointing to a triple digit drop at the open all following yesterday's wild ride what you can expect and some investing tips for you in the trading day ahead. housing alert. rates are on the rise. that could impact your mortgage but opportunity as well. we'll bring that to you. and, houston, we have a winner -- rather, clolumbia, we

have a winner. one person in south carolina waking up 9$900 million richer. p mega millions has a winner ♪ welcome back thank you for being here on cnbc i'm brian sullivan let's kick off the second half of the show with your executive recap. >> here's what's leading cnbc.com right now the president telling the "wall street journal" has the central bank is the biggest danger to the economy because it's raising rates too fast he took new aim at jerome powell saying every time we do something great he raises interest rates shares of deutsche bank stumbling after a lackluster quarterly report

the german leader said profits fell 65% in q3 they have struggled since the financial crisis facing billion dollar fines, higher competition and decreased market share and markets still front an center this morning following yesterday's about-face the dow clawing back from a 500-point plunge to close down 100 points that big rebound grabbing jim cramer's attention saying we may have already seen a market bottom brian, back to you >> we'll see you in a bit. let's talk about these markets. if you're hoping for a rebound in the futures market, don't have good news for you we are down triple digits again on the futures le the markets have come back a bit, at least as far as the futures go s&p and nasdaq are down as well. maybe that momentum at the end of yesterday will carry over today. a bit of a thin trade right now. there are markets that are open

obviously. some already closed. let's look at the asian markets. a bit of a mixed trade there a rebound in shanghai, that had a big drop yesterday the nikkei up about 0.40%. in the european trade, a mixed bag there. they are mostly in the green italy once again remains the trouble spot that market down 0.1%. joining us now is patrick palfrey from credit suisse when you see a 500-point drop, a ferocious attempt at a comeback and kind of a failure, you call this post-traumatic volatility disorder what we're seeing in markets is fragility. volatility remains high. investors are shooting first and asking later in response to a lot of comments

coming out of companies none of them overly concerning in and of themselves but investors are looking at them saying i would rather take down my risk now and i'll reassess what these issues are. >> for the better part of the last 12, 18 months, the market was an old dog went up, was fine. then started running around the house wildly barking what happened to the market? >> i agree with you. the concerns that people are citing now are the same concerns we've seen at the beginning of the year when we look at the earnings backdrop we have comments. some of them people are gravitating towards, but by in large the results so far have been spectacular the breadth of companies is strong the amount they're beating by is within historical averages there's not enough there to warrant this >> the earnings numbers are in the rearview mirror. we're looking out of the

windshield and the market is seeing some bumps in the road. >> on a corporate profit back drop, as i look out the front of the car, we see digits that are 18%, 19% for 4q, growth remains strong in 2019 so we're not seeing a precipitous decline. >> are you happy with the guidance >> we're talking about several individual companies in aggregate. we've seen just industrial numbers so far, but in aggregate things are not deterioratindete. >> what is more important the technology companies because of their weight they matter, they're the big lifters, or the financial companies because maybe they provide a window into the consumer and economy vis-a-vis commercial loans and borrowing activity what is the most important group to watch

>> i would advise investors to focus on technology. they are a bigger weight results have been so strong. the business trends in those companies are successful financials, we've already seen results out of them. they were actually pretty good economic trends, yes, they are weaker lending remains weaker it's not matching the precipitous decline we're seeing in the equity market >> what should we look at? >> we are likely to get the selloff back as volatility comes back in and the corporate backdrop remains intact. >> so regain what we lost? >> yes >> i hate to use santa claus rally, holiday rally you think we'll get the market coming back? >> that's true >> that's going to be because of what you mentioned, the strong

back drop? >> the strong backdrop, and absent recessionary risk, you want to be in equities corporations continue to sell goods, consumers continue to buy services that won't change. >> all that that you're saying is kind of the same the last few months all of a sudden the last three weeks things have gone haywire >> it goes back to the fragility that investors are feeling now they are shooting first and asking later selling the positions that they deem to be high risk for the most part the same is good right now the same it quite strong >> so stay calm, invest on >> absolutely. >> appreciate your views thanks for coming in

>> i'm a news genius, i have a feeling some people may be talking about this lottery thing. >> you think so? one lucky person in south carolina is waking up 1$1.6 billion richer after matching all five mega millions numbers and that ever elusive mega ball. officials confirming that the winning ticket was sold in the palmetto state >> we have an update the payout is up 9 million bucks. >> you look at the picket, you pick yourself up off the floor what's the reaction? >> i know what i'll do get a lawyer what if it's a group of 50 employees. >> don't you want to be anonymous? that much money changes your

life >> we call this a deep tease, the rbi is about how to make money off of that and be careful. >> hopefully next jackpot i'll need that advice >> starbucks opening up its first signing store in the u.s all employees are fluent in american sign language and there's a tablet system where deaf and hard of hearing customers can write rather than speak orders. facebook's messenger app is getting a makeover there's a streamlined version of the app. it's hidden away some features like games and payments and narrowed its nine tabs down to three. the update has started rolling out to the 1.3 billion users >> one to each see you soon to the sports world. if you missed it because you're watching this show and you went to bed, the world series got under way last night in boston the red sox hosting the dodgers it was a great game until the

seventh inning when eduardo nunez broke things open with a three-run home run the red sox won by the score of 8-4. they play again tonight before going to los angeles on friday. still ahead, trade tensions and retail stacey widlitz will have her take on luxury retail. we head out, another check on the futures they're yi tma atrngo ke comeback but still down. why would you need to learn every detail about a company? firmness... nine. it's how ibm services helps retailers around the world drive growth and save millions. he's very into this. yeah. is that the standard amount? yes. feels good. when your partners are obsessed with business and technology, you can put smart to work.

for the u.s. consumer, you know, they're at work, they're seeing wages rise. their confidence is strong they've been very, very active in the marketplace our traffic has been up. i think for the holiday season, this is going to be a strong retail holiday season. our focus is making sure we capture market share and delight the consumer throughout the holiday season >> those were comments from target's ceo, brian cornell. let's bring in stacey widlitz, a cnbc contributor retail guy, positive on retail are you? >> absolutely. i think the top line this holiday season will be

incredibly strong. and for all those reasons that brian cornell said, everybody is out there and spending a lot of these companies are also seeing higher costs, including labor costs. certainly amazon had a play there in coming out and saying we're putting the floor at $5 an hour there will be cost pressure but the consumer is out there spending >> i guess the question is, you've talked to this, we'll talk more about it as we get closer, where are they going to be spending? we know they'll spend more the question is who gets the money? >> yes i think target is probably one of the top beneficiaries not only are they finally getting the two-day shipping and competing with amazon but their private label brands are resonating with the consumer you look at walmart and target,

this is the first year they're competing with amazon. it's such a game changer when you order a product and it hits your door within a day or two. then you think i always don't have to go to amazon so target is a top pick. we're seeing sears demise, that will accelerate some of the pressure at jcpenney because you will see all these malls with dark anchors penney has the biggest overlap >> people like to do new things. people like to do new things when it comes to shopping as well any kind of risk of amazon fatig fatigue? people like to try new things. any amazon burnout factor? >> i think the good news is that i think the consumers are discovering new things in the mall some of that is driven by new concepts and pop ups that are fun and pretty cool. so the malls are trying to experience this and driving the consumer back in

so i think that there is potential for a bit of amazon fatigue. the consumer and our nature is to go into the stores and touch and feel and discover. so i don't think that's going away now we're seeing a resurgence in terms of traffic >> okay. i teased it earlier. i don't know if you heard it from your disco/library wherever you're coming from chinese word for buying on behalf of. why are you talking about this >> the word of the day and that's putting pressure on luxury here. lvmh was the first to come out last week and talk about the fact that half of chinese consumers get their goods and they bring them in from out of the country through buyers that go to europe and buy the products cheaper there's a whole market for this the chinese government is cracking down on that. so that is a game changer if all

of a sudden the chinese now need to buy the product at home and pay up for it. that's sent a ton of shock through the luxury sector. >> the stocks are one thing. the stocks are supposed to lead what we do do you think it will be that grim in the chinese retail market >> i don't i think a lot of this is overblown. we hear whether it's tar liiffs governments cracking down on wealth, these things come in waves. to me,sents an opportunity to buy brands like tiffany and lvmh and take advantage of that chinese word and pick up those names that have been dragged down >> all right that chinese word meaning buying

on behalf. >> the word of the day >> stacey widlitz, thank you very much. all right. up next, the president hates -- hates higher interest rates. housing taking a hit after the break, why those rising rates might just be a big opportunity for you. we'll tell you how and why and maybe where next can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than

humira® at providing clearer skin, and more patients were symptom free with tremfya® may lower your clability to fight infectionsts and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as: fever, sweats, chills, muscle aches or cough. before starting tremfya® tell your doctor if you plan to or have recently received a vaccine. ask your doctor about tremfya®. tremfya®. because you deserve to stay clearer. janssen wants to help you explore cost support options. get stronger... get closer. start listening today to the world's largest selection of audiobooks on audible. and now, get more. for just $14.95 a month, you'll get a credit a month good for any audiobook, plus two audible originals exclusive titles you can't find anywhere else. if you don't like a book, you can exchange it any time, no questions asked. automatically roll your credits over to the next month if you don't use them.

with the free audible app, you can listen anytime, and anywhere. plus for the first time ever, you'll get access to exclusive fitness programs a $95 value free with membership. start a 30-day trial today and your first audiobook is free. cancel anytime and your books are yours to keep forever. audible. the most inspiring minds. the most compelling stories. text "listen8" to 500500 to start your free trial today. a live look at chicago probably the best big city in the united states. let's find out what's coming up on "squawk box." joe kernen is here with his calculator you guys will be going through earnings numbers all show long did they beat?

did they meet? >> one of the mantras was that, you know, volatility and ten-year notes and tariffs, china, that comes and goes, but the earnings, when those come out that will provide support. that will give us the fundamentals we need to keep this market intact that was working great until 3m and caterpillar. all bets are off it will be harder to fall back on that. interesting session yesterday. there's a lot for both sides as cramer pointed out, it was a weak close this is probably a good start to today to most people that watch these things closely you don't want it up really today after that failure yesterday. we have all that stuff to do

with boeing. as far as earnings you're right we'll be watching that ten-year is really now under 3.15 at this point that's better behaved. >> yeah. >> here's what's weird, when the tariffs were announced in march i went on the cmes website, i got a picture of the hot rolled steel futures. every month i check it steel prices have come down the last few months. caterpillar is being honest, they're paying more, but is it the middleman jacking up the price? futures prices have gone down. nobody is talking about that except me right now. >> we will talk about roseanne -- it's not roseanne anymore. it's the connors >> i thought you meant the toto song but the boston red sox, one of the owners of the boston red

sox, it will be tough for l.a., i think. they won 108games, the red sox did. last night wasn't close. they had their ace out there we'll talk about that and the two biggest payrolls in baseball, the dodgers and the red sox. this is the first time these two teams met except an exhibition game boston, when i went there, only the celtics were having success. now it's like every other year the red sox win. >> the dodgers will win in seven. i'll tell you why, it's 89, 90 degrees in los angeles >> they're in a better mood? >> they'll go out there. the sun will shine dodgers win tonight. they win in seven. >> all right i think you told me jason day was going to win the u.s. open, to too. >> i said virginia tech would

beat notre dame, we got crushed. >> you are never in doubt, i know that. that's good. but i just have not seen you be right. >> i have never been undefeated. >> didn't see you win the lottery either >> i'm here. >> yeah. you are. >> interest rates are on the rise so are mortgage costs which means housing is less affordable sales have been suffering, but it also presents great opportunity. joining us now is the president and ceo of marcus and millichap research we will get realtors who will come on and say higher rates are fine let's be clear, higher rates are ultimately not good for the housing market, are they >> you're right. good morning interest rates are taking a bite out of housing demand, appreciation and values has

taken a bite out of demand for for sale housing in this expansion since 2011, the consumer preference shifted towards renting and that demand for rentals has been put on steroids apartment vacancies are at a 17-year low. there's limited supply for the industry there's construction of high-end departments in 10 or 12 markets around the country but for the nation renting housing supply has been limited so a lot of rent growth and investors in apartment complexes have done well because of this shift towards renting as opposed to buying. >> is the rental market, buying a condo or a bunch of condos, is that going to be a good moneymaker going forward >> i think it is we have clients all over the country that have done well

investing in apartments and continue to put capital into apartments interest rates are challenging to values a bit. any time rates go up and there's an asset class that requires debt, which apartments do or commercial real estate as a whole does, there's pressure on values and a big ask spread between buyers and sellers now we have tariff pressures labor cost pressures the math points to more demand for apartments >> the apartments are going to be -- when i saw detroit, we're big fans of detroit, i thought really detroit? why is detroit an opportunity? >> if you look at the lowest vacancy markets, you have detroit, orlando they have didnfferent stories. new york is in the top five. san diego. the story of each local market is different in detroit the story is one of a

resurgence in jobs, repositioning in the economy and no new supply of apartment complexes. put those two things together you have low vacancies in orlando jobs are coming back at a record pace that's where the story comes in. >> we like to find the opportunity and the higher rate story. thank you for joining us have a great day >> great to be with you. your rbi is on the mega millions one ticket in south carolina had the winning numbers. could be a group of people but let's say it's one person or a family lump-sum payout 9$913 million everybody will ask you for money. your second cousin jasper, he has a car wash you have to invest in. if you took the 900 million and you bought a tax-free 3% bond,

you will get 27 million a year in income fatax-free an never touch the principle. it should last for generations we hope it does. congratulations to whom ever or the group of people who won. random but interesting let's look at futures. the markets are where it's all at dow futures are down 78 points we were down 200 at the top of the show so yesterday's powerful comeback, trying to come back from that 500-point drop in the dow, didn't quite do it but maybe some of that momentum we saw yesterday is happening in the futures as well. down 78on on a market at 25,000i not much it will be a big day on cnbc

cou thanks for joining us on "worldwide exchange. "squawk box" is next 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.

unstopand it's strengthenedting place, the by xfi pods,gateway.l which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today.

good morning headed for another lower opening following yesterday's wild ride on wall street what it means for your money and the moves you should perhaps be making ahead of the opening bell. several big earnings reports could set the tone today the tone wasn't great yesterday from 3m and caterpillar. we'll hear from at&t, boeing and u.p.s. and president trump taking aim at jay powell again. we'll show you what he said this time about rising interest

rates. it's wednesday, october 24, 2018, "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen, andrew is off today. we have a big staff to cover the market moves mike santoli is on set with us gabriella santos is joining us for the house and we will talk strategy with keith parker hadley gamble has the latest from riyadh. we will start with a check on the markets. let's look at things after wild ride yesterday the dow futures down by 87 points