the 1% decline this is just make good of what we have been dealing with. >> we got control of the mark. >> mike, i want to thank you so much with us you are here back here tomorrow. >> yes i am here tomorrow >> right now it is time for "squawk on the street. good tuesday morning, i am carl quintanilla and jim cramer who is back from london and david faber is here. the question is what do they do after yesterday's ugly downward reversal and a miserable quarter for ge europe is mixed 10-yr near 312 we got conference board in about an hour. wall street is looking to prepare its losses stocks are higher than

yesterday's turbulent. >> ge's new strategy with its new ceo making bold moves including slashing the quarter of the dividend. >> and stock volatility trade uncertainty and the economic outlook from some of america's toughest companies coca-cola will join us this morning. stocks are on track for a positive opening following another recession and saw the dow traveled more than 900 points s&p is closed and so called collection story it is down from last month jim, we have not been handed a lot of our gaps thp month and of course we know what's happening to a lot of the ones we got them >> well, these are very different sessions within a session. i think we have to start thinking othin thinking of the day. there were three days yesterday. there was the big up and there

was the big decline and the big advance. the advance didn't get us back i think we are looking at days incorrectly. i think given the speed of things or etfs we are looking at a day okay, it is a good day. >> there were three sessions one out of three was good. >> the last one being bad because it gave people hope. i keep oncoming zin and say we need one session we need the session where it is down and we wash it out. we get the kcrescendo of selling you will be looking at amazon, down six or 100. you will never say i got a bond. you hear people come on air saying it is poison. >> people are using amazon to buy while they're trashing on

amazon the google finish. >> amazon plus $250 billion market cap >> how many countries is that? >> a lot of it came from the hedge funds. the top ten crowded is by nearly 3% yesterday the worse day on record since 2010 these are all hedge fund names we are talking about. yesterday one of the worst days for hedge funds in years not just morgan stanley but an do an -- antidotally. >> it is crowd >> there were 85,000 peop

people -- it is pretty good turn out. >> when people who are up of certain stock, it is all the same stock they cancel amazon like a thousand >> and these are people who are just getting blown out you had that second session yesterday being the blow out session where people were able to -- i was once a margin butcher. yesterday people bought red hat. it was 499 other companies that did not do well. >> i am wondering of the hedge fund business model sort of broken returns down 71.6% for our hedge funds. yet it was greater than three sigmas events meaning again. just as horrible day >> the old ge.

>> there is a look at futures which are up triple digits earlier this morning amazon falls below 1600 yesterday. it has been 24 hours >> there are people who say cramer, you love it at 17-50 which makes you the -- i am not doing the selling here i think amazon at 18 or 1,900, everybody loved it >> now they can't stand it there were people saying yesterday that amazon is going to be destroyed. there was not a single hedge fund -- >> you are better off giving previously and not having hedge funds you are better off >> you are right

>> 51 points and 8% of the cloud market at amazon by the way, red hat and ibm together does not necessarily take from amazon it in fact their opportunity to come to corporations and advise them to approach hybrid cloud internal and external. >> people are starting to ferment the story. i have known jim for years we have people saying google are going to start using it. >> rometty has done is listen, we got to double cloud that's what we'll do >> when it come to the fed, your argument has been go ahead and hike in december but then pause. >> is there not appoint where you don't want to hike in the summer >> you have to safe cause. >> i was thinking maybe he wants

trump to lose. >> yes, you could not do better. >> you are soaking this fire now. >> if potus is listening s-- >> he does not listen to us. >> he'll turn on "fox and friends. >> i think that powell had -- we had feds that are cheap. look, this is just -- we don't like what's going on and the deficit spending why wouldn why won't they talk about deficit spending >> a trillion dollars deficit and no foreign buyers of our debt and tariffs that's a start

>> that's why we need one more hike >> we'how much of it was individually built because everybody is trying to beat up the tariffs. >> hey man, focused. >> i am back from the u.k. everything was brexit. i got a great coach for little money. sam's club plans to open cash le ear stores in the checklist. >> i am going to the ge conference call. >> how about sam's club. >> i know. >> there will be human being that'll check you out in the isle as supposed to the cash isle >> there will behalf human beings doing it. >> us it does it are mind you o 2000s?

>> tell us why others have made this comparison 20 years and by the way when in 2000 >> no, march 15. >> we hit the highs at march 10. >> coca-cola has been doing okay >> he's moving into drinks that nobody likes that's what's important, coke zero my wife loves coke zero. >> it is pretty good i am just saying >> back to 2000, one second. why? >> there were no bids for the big capped nasdaq stock. amazon is back to where it was when the president was saying they should not use the post office they abused the post office. no one is intrigued by it. no one is intrigued by amazon. there is an rth love fest

yesterday. they took kroger up. kroger was being apologetic for doing badly. >> it is a pretty good deal for red hat, too >> the company did say they're cutting dividend to a penny. the sec expanding into their accounting practices after ge announced let's cut the dividend from 12 cents. that is coming in below expectations larry culp, we talked about strategies on the call >> i know there is news speculations the strategy we announced on june 26th to create a portfolio and strengthening our balance sheet is today the right plan going forward? >> this morning, david, the eighth largest dividend cut in

history. the if you remembnumber one wase >> wow >> interesting to listen to the conference call than going over. i also listened to it -- >> you are amazing >> good luck, good luck. >> why do you say good luck like that >> back to -- 30 days in the job and power is nothing sort of a disaster >> is it amazing >> just to put it in perspective right there. first nine months and much of the rest of the company is doing fine he's taking gas turbine out.

>> turbine >> it is going to be reported to him so he's celebrating power in different ways and structure business himself any number of time we need to move more quickly and make decision making deeper into the organization and not be so corporate. we need to be reaching out to customers in a more effective way. no plans to raise equity that was asked a couple of ti s times. listen, this is an outstanding company. alex cora won a couple of years ago. al large team and a lot of things we believe he can build upon they're mindful in terms of cutting that dividend and saving $3.9 billion >> jim, i don't know what you are looking at this morning as an investor and trying to grasp the hold of.

they're still committed is my understanding and it is still intact of the strategy to spin healthcare they may want to accelerate as you may want to expect in terms of baker hughes, potential sales there. power seems to be as it should be of his main focus he's trying to get his arms around the power of business he believes that they had opt m optimi optimism >> he should not be named of $13 billion. that seems like a total idol it is an amazingly bad opposition >> there is a big corporate over head that's the structure for when -- >> not to mention the commitment they made as part of that. >> can i just say here is what's going to happen with the sec

settle, writes a check >> disclosure failure on their part >> oh, please. >> it is power >> it is the sec, what are they going to do? >> larry culp did not do this. what are they doing to do? >> he had nothing to do with that >> and shareholders also >> ge is on their own. i am not going to make a case with ge. he had to get around turbines and he can't focus on healthcare i know we keep on thinking he's going to sell healthcare, he can't sell healthcare until he gets to be $100 billion business even better than thermo. that's a good business >> he says and asked about power. it is hard to say that we don't need dramatic or drastic change

and he goes onto say performing in a way in some respects, it is that's simple. in my mind of beyond compliance and everything is on the table of power he thinks russell and the team would echo that if they were on this call. >> right >> he's not worried of long-term care >> no. he's not >> can i just tell you this is a decent set up. ge is down big and amazon is down big there is it this is a decent set up they're all down what we have been upset about is the big ups where people get pick ticked off at least when they were down you can scalp it it has been horrendous action. >> futures have lost their momentum, looking for a red open now. when we come back, coca-cola with an earning speed. james quincey will be with us

and oscar munoz, how the airlines trying to capitalize for the holiday season coming up the ugly reversal, s&p is down 15 and 18. back in a mitenu

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we'll get to the bond pit right here rick santelli in chicago >> the most fascinating issue is sometimes we get caught up, we forget of the big thing. many are talking about mario draghi is joining the club with no reduction and purchasing much less maybe that's one of the big triggers i think central banking activities and balance sheet continues to be a big issue. look at the one-week of tens we are giving up a little ground as we go into the official stock opening. if you look at a month to date of tens. you can see we are still higher on the right side and we enter

on the left. here we are hovering at 3.10 there is really little doubt that there is a big discrepancy between the dynamics of how the dollar and the fixed income sovereign treasury market is trading against the backdrop of equities and not just the domestic global. divergenc divergence, the dollar keeps on ticking up finally the dollar index itself, it has been a burner for the month of october that you see there. everyone thou its best level is up about a fifth of a percent it is toying with that level from august, right around 96/70

top. the reason it is important is should we close the current level and not drip away. carl, jim, david, back to you. >> all right, rick, we'll talk to you in a few minutes. rick santelli, we'll get cramer's mad dash in a moment. also, counting down to apple's big event this morning in brooklyn >> reporter: the ipad and iphone is just shy. it is a big opportunity for apple to grow at a time when iphone sales have flatten out. we'll get news on those. that's what we are expecting here in brooklyn i will be covering all of it here on cnbc

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we got a little more than six minutes before we get starting trading here at the nyc. >> no breaks >> we'll get to "mad dash" right now. >> kevin pine came on "mad money," listen, we are turning this company around. that was the bottom.

this number today was very good. looks like inventory is finally cleared out. i like the north american number site i got to tell you, kervin is back he's got a very good team. when people see under armour is up i do like it i think ralph lauren is going to have good numbers. they're doing well apparel means a bright spot. >> this is largely about international. >> yes, international is terrific he's pulling it off. apparel increases 15%. don't forget it is $1.1 billion in north america it is real bright spot

>> but is it also a reflection for strong consumers and going to the case that if you are continuing to be mr. powell? >> he's looking at under armour? >> i don't know, coming back to our discussion we have every morning. >> everyday you have to bet. i like that you did that look, it was better but remember inventories, they can get more full prize ce so i will give yo the glass half full. matthew boss, he bought it at the bottom everything is being balanced against what can make powell to change his mind? >> brian kornell keeps ongoing on and on about it >> that's a consumer strong story and i don't know if that stock is going to be up. >> well, he said tait was great

number >> i know, i am surprised he has not thrown a redemption at me of the biggest weekend for video games. why are you not trashing me on that >> i was waiting >> he had it for years take two is up >> we get ea tonight i believe >> i think the great part of take two is that red debt is everyone bigger. those of my friends who pla play -- it is so life like and it is literally like playing with people. people who need people >> people who need people are the luckiest people in the world. >> don't point guns at them. >> a lot of the stuff they do is not the nobel peace price.

>> another company reported later today, social media, facebook is the name of it right now. expectations are not low enough. >> come on >> well, i am just pointing out. goldman this morning says they think our sense of expectations for a guy of 55%, that's total expense operating expense plus cost of good souls that's a key focus for the company. everybody is focusing on how much is spending and what margins will it be they hope facebook will tighten until the bottom range of the course of the year >> you know as you first said, down 20% growth is really -- i wish they said instead of doing 20% but maybe 15 >> i keep ongoing over the alphabet call. >> it was not a bad quarter. >> alphabet was not a bad quarter. >> no. it was not bad

>> i think facebook is down a lot and maybe it would be okay >> we are in a market where even if it is great that may be the best quarter within accelerated and repurchased. >> he ran the company in 2000s, he's now the chairman of youtubr he'll be great >> boeing is a big piece for that coming up for the worst day of share in a couple of years. a lot of this is based on defense product pricing and so forth. the "times" had a piece of about

hasht hashtags -- >> remember eaton and all are not good enough. these are in the other economy, the part that's not doing well >> i know the sneakers are doing well i am talking about the industry. >> there is the opening bell at the big board with resideo technology and celebrating a sp spin-off at honeywell. we'll talk to oscar munoz in a few moment with phil lebeau. >> jp morgan -- i think united are doing very well. take this. >> it is not nice at all >> it is a mean market day >> morgan stanley took spirit and southwest underway >> oh my, southwest, it is

getting crushed. i mean the last spin off did not work well. risidio. the slowest growth in price since 2015 i think housing is rolling over so fast that you just don't look at zillow. do yourself a favor. >> i am going to look at it right now. >> look at zillow and don't look at amazon. it is down 3% plus >> crowded >> is amazon going to reverse? >> you got to get to november. for the month, it is down 25% for the months >> $260 billion in market value. >> that's amazing. >> the quarter was not even that bad. a lot of people feel like it is

the twilight of amazon amazon retail being tapped by walmart and target this is incredible >> two months ago -- >> i am not buying it one bit. but i am saying that the mark used the term crowded and d despicing it >> it is no longer giving those numbers the last quarter >> i know. you got amazon and you know it is going to sound silly but you can make a case at amazon is actually -- on 2020 earnings which i know you have to do. amazon could earn 37 bucks and it is at 1500. that's not expensive 37 bucks is not expensive >> we had somebody talking about 40 bucks a share by 2020

is that guy till herstill here >> well, they don't have to do -- >> it is valided at the same price of clorox for heaven's sake we are bigger than u.s. steel. >> right >> it is like nvidia, there was a big upgrade of nvidia today. nvidia is finally inexpensive nvidia is dicey because they have this product hold that's too good for every single video dpa game >> i like it very much, it is down to 600. >> i want you to expand in talking about last night you are talking about the downturns and back then it is portfolio insurance and now it is etfs, amazon is in about half

a dozen of etfs and people come in and banking down on etfs. i am not against short selling >> etf is so much powerful it is like when they came up with a machine gun verses the cowboys. >> horses don't farewell >> people have been talking about it for years >> there is so many of them and you can really beat up on fang one day fang will have its revenge. right now they're just hitting it and hitting it. it is interesting that rth, the retail were selling amazon short and buying the rest of rth and that's -- is that a picture of fang holy cow, where is hi smy sun glasses. i like fang. when we came up with fang, these stocks are about two-thirds

lower. >> it happens pretty quickly >> we are talking about three weeks. >> it is crowded >> fang index is down 12 in three weeks. >> amazon is still up. we are waiting for apple >> apple is still up 25% ge however is down 38% but off its lows this morning. >> oh good >> stocks opening down as much as 5%. its does have a smaller market value now, ge and honeywell below that it has been a while. boeing is twice the size >> the business of ge is quite strong the aviation business is a jewel without a doubt. it is weighing down by the disaster performance of its power and division it does continue to have a plan to celebraseparate out part of s

healthcare decision. larry culp did say you should expect us on two things, an orderly fashion in several years to implement the objectives of selling down baker hughes. he also said we are still at the healthcare that it is operating at independence is probably what's best for the business and the team timing and sequencing change and relatively of some other things we are working on. it is too early to tell but it is certainly something that he and the cfo have been talking about. >> you keep your good and you sell bad >> nobody from ge is going to look back. that's the problem with ge everybody wants to look forward. that's not what a smart company

does a smart company looks backward and trying to figure out what's wrong. >> the company seems to be acknowledging a number of things that were not done properly in powell >> not as much as i would have hoped. >> i think no one wants to address what went wrong so therefore, you can't figure out what has to be right i think it is maybe kind of sub rose recognition they have to come out and say look, we screw up and we did this wrong >> the people are not connected to the market or communicating appropriately. >> i think larry culp is a great executive. i am just saying like long-term care which they did not address. power was not addressed properly this is the 20 plus billion dollars charge it is unbelievable

>> as you say it is largely of the awesome deal is a terrible deal >> i wish they would say that. >> the final deal done under the regime and similar to many other ones in terms of buying assets a a at the top. that goes to balance sheet and having to cut dividend to one penny >> do you think they save the company? >> i don't know what it means. >> i am saying power can't bring the company down >> i think this was the beginning of the containment policy that's what had to be done john did not get time to contain it if they can contain it then i think you can buy ge 22 billions charges.

yeah, that's big enough. it is a backup of 11 bucks >> while you were out, we talked about the prospect of the dividends getting cut and we mentioned budweiser getting cut enhalf and ibm's buy back. does that fit okay of the p i can -- pictures of the tightening condition >> i am going to list this one mes t you are not allowed to say that on a fed person so i take it back >> well, i will tell you what, jim, odds for a december hike kept on going into the 60s they were in the 80s there is a lot bad remember the multiple sessions i am going to go buy some of these that are down. it is like 939 you got to wait.

i like the dow nasdaq. that was good that the nasdaq was opening down that's what a bull has to hope >> thoughts on oil is down down 66. remember when we were tossing around at 80 >> there is a slow down. you will find that oil is not up as much and tariffs. tariffs slow the world down and feds trying to slow our growth down and the only thing that i saw positive was merkel may not be as powerful, regarding her antigrowth, physical conservative >> this is what it has to happen powell has to have some ammo >> you mean excuses. i can't imagine you would be happy if he cut or did not hike in december. >> i needed december hike to say listen, i am not going to let inflation out of country that's why i am hiking

i am going to script it for him. now i am going to one of th the -- one of the great fed people of all time was janet yellen i have been studying what he did. he actually watc-- i have been t she is she's a paradigm i think she does a fantastic job. >> i am changing my mindset, there, jay, take it over >> if there comes in time, i want to have some ammunition in the form of cutting rates because i don't want to be near bottom or excerpt. >> he has to raise rates in order to cause a recession in order to cut rates i am going to get lay offs so i can get people hired is that really where we come down to david? >> is that what you become

is that you? have you no shame? >> i have plenty of shame. i know exactly who said that >> a lot of people are comparing this >> and his lawyer, larry cohn, who's a close associate of the president. >> it is buy one and get one in london >> if london's flight is cheaper, then will and me will go every time. >> the chinese yuan is at the lowest level since it has been they can't get -- they don't want it solo >> i know. i took will to the eagles game >> that was a good game. he was surprised the ball was

not round. it was interesting >> dow is up 100 let's get to bob pisani this morning. we open down which is what everybody wanted nobody likes it to open up and droop in the middle of the day we are about even on the advance decline line let's take a look at sectors, and tech is down consumer staple is leading that's the lead for most of the month. retail started positive and just reversed financial is holding up well tech was negative and as well as communications communications is netflix p google and facebook. that's dropping it noi energy is dropping it now. all of them were open at the open apple and netflix and alphabet all to the downside, all for the lows as it opens we are seeing is the downsize of

a big cap stock. people have been asking about these. don't these fang stocks showing in a lot of indexes. >> on the one that's heavily invested on tech, they do. and 37% of that by market cap is a fang name. that's a big one there are other smaller tech etfs that had a significant warning as well. >> you know it is about the same north american technology, igm, there is a symbol for that and that's also about a third. if you take a look, no price, these three etfs, heavily weighed in fang are all down 12%, 15% and 14% they're all down because of their overall exposure to fang stocks remember something these fang

stocks have gone through the roof the nyac had the future - future -- including alibaba in the last fiver years or so that has gone dramatically on the occupy side. it is herbally sessentially up . s you see it is coming down in the last couple of months. don't be too shocked here is the problem with the stock market right now >> the market can't figure out what the 2019 numbers should look like. we are expecting 10% earnings growth in 2019, that's the consensus number right now the forward pe multiple right now is 14.8 on 2019 numbers. it was 16.5 a month ago. the multiple is an indication, what you are expecting earnings growth to be in the near future.

when you drop like that fast, it is a way the mark is telliet is you. they don believe the number is 10%. the market is asking like we'll have zero to 5% earnings dproet in 2019. that's what everyone is trying to figure out. guidance is very important there is not a lot of companies giving you 2019 guidance their analysts, they raised a full year died danguidance >> low ter guidance slightly, they're talking about commodity. it has been so beaten up the gang was not as bad as people thought it was up >> it is trading up and theoretically -- pfizer had such a big move this year, it is

down coca-cola, it is basically on the flat side. the bottom line is this, very difficult to read the tea leaves right now and figure out the guidance and a lot depends on what we are doing for things like china and overseas earnings the dow is just off the highs for the day. >> carl, back to you >> bob pisani. united airlines ringing the nasdaq openingbell with thunderstorm warni morning >> oscar munoz we got crazy swings in oil, how do you this i about e pences rigexpenses right now. >> i am having a hard time hearing you but i heard expen s expenses earnings season is over for the industry i think we had one of the

strongest stories and nothing has changed. our guidance for the full year starts 2020, we are on a nice trajectory the markets are fluctuating right now. there are things that we'll control and that's what we focus on and unfortunately, i am not able to hear you. >> oscar, i know it is hard to hear, this is phil, how do you feel of holiday demands and what you are seeing of booking heading into november and december >> of holiday demands. it is a little far out, we are seeing early markers and we don't see anything difference as what we projected here >> i think a lot of people have is you took delivery of 373 maxes over this year

i know they are still looking for the cause and no indication there. what you are hearing from your crews, how do you feel about the mag that's in the united fleet >> first and for most, our first thought and prayers for the families i think it is way too early to speculate and everybody wants a lot of information again they are done with the investigation, it is not just a good thing to speculate on anything that may have happened. we don't have the 37 we have the max family and it has been a great product for us. >> oscar munoz always good on touching base with us at least on our air. >> when we come back, we'll get an explosive with james quincey e d dow is up 89 ths&p is up left laalmost 11 pos

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let's get to jim in stock trading. >> the bar is low for some of the stocks reported a decent quarter, but

the stock is up nicely, mondelez people saying we have to rotate into those kinds of stocks this is a very unowned stock, undercrowded stock it reports a decent quarter. it's decent. it's not blow away but look how that works when you have an uncrowded quarter with a decent number, it goes up and that's very important for people to understand there are things that go higher but they have to be things that haven't made you money anything that's made you money -- >> utilities and staples are the only positive of the month so far. >> remember, there's a bunch of sessions each day. if amazon bottoms down, don't presume this session -- there will be another session in 12. we ought to do what the brits -- ought to go to a pub from 12:00 to 12:20.

>> that's it >> they do like three hours over there. >> he like to hit it. >> they're all wearing like green bay jackets, vikings jackets. >> they're all out drinking at 6:00 every work night. >> me and wilf were working the hole time i hang out with wilf people often think that -- >> any read from mondelez? >> no. rotation look at mcdonald's it's mcdonald's. these are stocks that aren't up. >> right. >> they're not crowded nobody owns them the economy is rolling over. >> you always want to buy malomars. >> that's the season. >> three-month t-bill yielding 2.3, highest in a decade i saw the etf, one to three-month e-bill etf what do you tell viewers who want to know how much -- >> tell them cds are really

unbelievable value look, i recommended and like amazon i continue to like amazon. i like intel. >> you would rather t-bills? >> yes the upside is limit. >> day after spending a third of its market value to buy red hat, ibm is up. it was only down 4% yesterday in a very negative take. >> jimmy was on the money. i thought she told a great story. red hat sends you to google cloud, amazon, azure at the same time, you have your proprietary cloud, which is very secure it's encrypted that ibm offers it's a good deal it's a good deal. >> ge up 1%. >> larry koch told a good story. s.e.c. didn't matter don't be in full panic mode. >> you're telling the people that

you get what you want, embrace it i wanted fang down huge. it opens up every day. then it gets defanged. it ends up with -- you know, you have to go do-to- -- it gets pulled every day i don't know. >> whirlpool has been slowing their, arresting their descent. >> that's because the fed is going to blink the fed is going to blink. if you do root canal every single day on fang, the fed will blink. i've been looking at janet yellin she should be revered. i'm going to go to her strategy. jay listens. he's a reasonable man. i like jay. >> what's tonight, really quick? >> jay, please incredible company, myokardia, none economics, incredibly

economic, not worried. >> good. i'm glad. >> jim, welcome back good to have you. >> it's good to be back. remember, keep the faith don't just throw away stocks because everybody else is. >> when we come back, apple's special event about to get under way in brooklyn. we'll cover all the bases for you. dow is up 214. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.

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welcome back to "squawk on the street." rick santelli with live, breaking news. october read on consumer confidence from the conference board, 137.9 137.9. sequentially, that is a little lower than 138.4 138.4 was the best since september 2000, we'll call it, 18 years this is still a super lofty number and it represents some of the top numbers that we've seen going back many years. with respect to some of the internals, they don't seem to be hitting the wires yet. and there is a revision.

138.4 now downgraded to 135.3. so, that would make the 137.9 now the best number going all the way back to 2000 and as present situation -- there we go. 172.8, the present situation improved from 169.4 and the expectations well, 114.6 also improved from 112.5. carl, back to you. >> rick, thank you good tuesday morning, everyone welcome back to squawk on the street i'm carl quintanilla with sara eisen and david faber. dow up 225 we keep an eye on earnings out of coke. of course, facebook is tonight. >> major volatility in the markets. wild swings. keep finding stocks from finding stability here we'll have full coverage on all the sharp, sudden moves. apple holding an event in

brooklyn, where they're expected to unveil new products fang stocks have been crushed in the last month. plus another capitmarket catalyst coca cola, pfizer and allergen reporting. we'll speak to the ceo's of coca-cola and allergen this hour on the left, stocks are starting their day here in the green. session highs right now. as we saw yesterday, there have been sharp swings throughout the trading day. morgan brennan is following ge earnings, with that stock down about a percent, still near a 52-week low. we've seen a weak industrials se trigger a sell-off we're keeping an eye on the white house as president trump's comments on trade and markets, one sharply lower, one higher. s&p 500 in the last month down

just about 10% as the vix, gauge of roll tillity in the market, has spiked guys, it is that volatility. what did jim say especially the final hour of the trade. sharply down from where we were earlier in the day it's been wild there have been earnings to digest peak earnings, peak growth concerns all out there the fed raising rates, tariffs, all getting thrown into the soup of negativity. >> when we pointed out some of these names that are highly sensitive to interest rates, climbing out of the hole the past several days, jim's point has repeatedly been that the fed will soften their rhetoric, at the very least, maybe as early as december. that's his belief. >> fed notwithstanding, at least

in terms of the moves in the market as we pointed out yesterday, carl, hedge fund industry, long short. some research being done by morgan stanley indicates it was greater than a three sigma event, which just means it was really bad. >> they were supposed to like volatility in return. >> amazon still down, getting hammered again yesterday but most of fang is actually coming back although, netflix is also down as well. >> i would just say, though, if you're looking for catalysts in this market, earnings was supposed to save it. doesn't look like that's the case some people are looking toward the midterm elections because, listen to this historical stat s&p hasn't declined in the year after midterm elections since 1946 and has climbed 15% on average, regardless of which party won or lost in congress. >> i saw that.

so perfect record. that's at least a bit of good news speaking of -- well, not necessarily good news but the stock is reacting positively this morning ge the company was out with earnings of course, it did cut its dividend dramatically this morning. morgan brennan has been monitoring the conference call that concluded about an hour ago. she joins us with more plenty of news there, morgan. >> there was, david. cutting its dividends from a penny to hang on to more cash, delever the businesses one of the first big moves from new ceo larry culp who basically said look, i've been on the job 30 days. i'll share what i can but expect a much bigger update in early 2019 exit baker hughes over the next few years. he did note that the timing might change culp also announced struggling power businesses or business, excuse me, two business reporting to him big focus on the call today saying he's spending most of his

time on that right now another big topic, ge capital, especially in light of the fourth quarter insurance reserve review that will be coming up. ceo noting as that unit shrinks, ge may need to support capital further if necessary to achieve capital levels or execute options around that portfolio. other big headlines around the call, no plans for equity raise, no up guidance and lastly news that the s.e.c. has expanded its ongoing investigation to include the $22 billion goodwill power charge and that the doj has also opened up an investigation into those accounting practices ge is cooperating. i think they would probably say it's not unusual to see those agencies working together, also that really nothing reported today is really a major change in direction nonetheless, that disclosure did

send shares lower premarket trading traded lower at 5% with a ten handle they're bouncing back right now. they're up about 1.5%. back over to you. >> we'll keep watching that stock as it gains now, morgan. thank you. another big earner, under armour, a spike in overseas sales, full-year earning outlook being raised despite growing success elsewhere, north american revenue fell you know i've been digging into this one the story of this quarter and the tremendous reaction you're seeing is beats in profitability. this is a company that is firmly in discipline mode, that is right sizing its business. kevin plank a few quarters ago said they were going to do this quarter showed they were backing up their promises and the best way to see that is actually in the inventory improvement. it was up 25, 26% a few quarters

ago. now down 1%. they're offloading inventory through offprice, making for a much healthier financial picture for the story in under armour. there's nothing sexy here about sales. north american sales will contract for the second year in a row, footwear is pretty much flat, despite interesting new products like the curry 5 and the hovers, which are doing well it's the story of a company entering its maturity phase, putting a number of key positions in place, number two to kevin plank and new head of investor relations it's been a big cultural shift that i think you're starting to see manifest in the form of a gross margin beat. first time under armour has seen that in a very long time and improved profitability next thing they have to do is get to top line growth that's why investors are looking forward to investor day december 12th with plans on how to do that so far they're buying into this story of a much better balance

sheet and profitability picture, carl. >> that will take you back to levels we saw in the summer, june keeping a close eye on that today. a new laptop and ipad are rumored to be revealed today in brooklyn jon fortt is there jon? >> reporter: 100 million threshold, important sign post for them right now he's talking about the mac book air, which steve jobs famously pulled out of a manila envelope to signify how thin and light it was he is clearly leading up to an announcement about the refresh of that product. it comes at a time, very interesting for the mac itself and the ipad back in the past, apple would rely on education and the design communities as the core constituencies for the mac

go google has pretty much taken education with its chrome book line and the design community has dispersed throughout windows also, as companies like adobe hasv embraced the cloud about brought that platform's power to multiple types of machines it's interesting to see how apple clearly trying to position design here at this event in brooklyn, maybe win back or try to win back some of that design constituency specifically. and then, of course, we have the ipad tim cook famously said he thought this was the future of the pc saleswise, it hasn't played out that way we expect to see more powerful ipads, ipad pros that could perhaps grow share for them there. a couple of weeks ago, carl, we had microsoft on they were boasting about having gain share in the premium category over $1,000 from the likes of apple and it appears that tim cook is, indeed, right now unveiling a new mac book air we'll continue to watch for

details, carl. >> yeah, jon at 100 million on the mac, that's barely a tenth of the iphone's base. you can see the point they're trying to make half of mac buyers are new to mac. viewers wonder why it's in brooklyn as opposed to out west. >> reporter: i don't know the answer to that i do know this is a very hip and design-conscious location. also new york is known as a publishing and design center it's a place where apple has often pulled companies, pulled publishers from when they want to make a point about their connections to publishing and to design so perhaps to emphasize that, rather than ask folks from this community to come out west for an announcement, they decided to bring the news to them carl >> jon, thanks we'll hear a lot more from you coming up in the next hour jon fortt at the apple event in

brooklyn. >> didn't even have to take a plane this time. coca-cola says diet soda helped to boost profit joining us now to discuss these numbers and more is coca-cola ceo james quincey. welcome back, james. nice to see you. >> nice to see you again. >> let's talk about that 6% organic revenue growth i haven't seen that in any of the companies, food, beverage, household products what drove it for you? >> i think it's a culmination of the work we've been doing the last few years of reinvesting in our brands, reinvigorating them and with our new network of refranchised bottles in the marketplace. it's allowed us the last number of quarters hitting our long-term growth, credible 6% in this recent quarter. >> what about the macroenvironment, though on the other side it's gotten tougher. you're dealing with a stronger dollar, emerging markets issues.

can you describe what you're seeing out there >> yeah. clearly, as we've gone through the year, the headwinds have gotten a little tougher. the macros around the world are perhaps softening a little, particularly in some of the emerging marks and coming into q3 and we've seen that effect us in the exchange rate, obviously being in over 200 countries we're bringing money from around the world back into u.s. dollars and that's gone against expectations and turned to more of a headwind coming into the second half of this year macros are weighing a little on us overall operating performance has allowed us to stay on our guidance on the year and deliver a strong guidance in the third quarter. >> what about north america? the u.s., james, was not as strong as the rest of the world with 2% growth i thought the consumer here was doing great. >> the business in the u.s. is doing well there are a number of accounting

adjustments that are going on this year in our u.s. business that have a mechanical effect of reducing the apparent level of pricing and the revenue growth in north america when you look at what's happening in the marketplace, our business continues to be vibrant across many categories and across many channels so we're still growing we like our strategy of reinvesting for the consumer, growing value for our customers, working with our bottlers. it's working there are segments in the u.s. markets where you see a little bit of strain but overall i think the dynamic is good and we continue to execute against our strategy and push ahead. >> inflation has been a really big theme on quarterly conference calls you talked about it last time, said you would pass on higher prices to the consumer as a result of aluminum tariffs and all the other cost pressures you're facing. how is that going? are consumers willing to pay up? >> yeah, we've had to pass on

increases in costs around the world to the consumers clearly, what we focus on is not trying to just make it about the price on its own we try to bring innovation in packaging, whether it's more interesting or premium or trying to make the packaging more affordable so that we can adapt the changes in cost and really provide a bundle of things to the consumer that really continues to engage them i think that's what's allowed us to continue to grow volumes, even though we have to pass through some of the input costs into price because we're providing something that's interesting to the consumers. >> and i know that sort of wraps up, once you've done that. when i talked to you earlier, james, we talked about the resurgence in diet coke and you mentioned that the millenials were finding it. how did that happen? >> diet coke in the u.s. grew again. it grew in revenue and volume. what's interesting, it's got more households coming into the

franchise. the brand indicator scores we look at internally getting better i think it's a combination of marketing and reconsideration for a generation where perhaps not all of them had connected to diet coke. with the flavor innovation with the innovation in the sleek can, a more modern, more engaging package i think that combination executed by the bottlers has brought people in, and they found something that they like in what is ultimately a great-tasting beverage. >> this is the first time, speaking of great-tasting beverages, we've had a chance to talk to you since some of the big acquisitions costa coffee, being the biggest. why is coca-cola getting into the restaurant business? what are you telling investors and are they still concerned about that >> yeah. look, what we say is this is a coffee strategy. this is a coffee strategy. clearly the cost to house stores, component of building

the brand and building the experience but as we look globally about what can we do in the coffee category, we see a number of very important opportunities that can allow us to be an even better provider of beverage solutions to lots of customers, whether it's in many of the immediate consumption channels in food service, beans and machines or they have a special vending machine, a bit like our modern machine with sparkling beverages. they have a vendor for coffee that is excellent. there are a lot of channels. we can work with those customers and those channels we can go to the at-home occasion with beans and capsules and pods we can bring ready-to-drink coffee to many more parts of the world. curiously we're leaders in ready-to-drink coffee all driven out of our japanese business there's a tremendous opportunity to expand around the world what we needed and what this acquisition provides for us is a

brand that brings us globality and allowing it to execute its scale. >> seemed to take a shot at you on her final conference call as ceo, james, she was asked about coffee the only thing we're not going to do again is get into the restaurant business. >> well, that's -- she's entitled to all her own opinions what we're clear about is that we've got a coffee strategy. we see an opportunity to participate really strongly in a category that's growing around the world, in value and i think there's a lot that can be done to be a better provider of beverages for every customer, including coffee. >> speaking of growing categories in the beverage space, it sounds like you're playing down the move and the development into cannabis after a report that you guys were looking into a product can you bring us up to speed because investors were really

excited about that. >> yeah. look, we've got no plans in the cannabis, marijuana space at the moment i don't see that as something we'll be getting into any time soon it's just not something we're interested in. >> what about body armor do you really think you can go up against gatorade? is that the plan here? >> body armor is a good investment we like the brand and think they're doing interesting things in the sports and premium hydration space and i think this investment provides us an opportunity to both expand the category and gain some share and provide consumers with more access to a great brand and a great product and see where it goes. >> finally, james, i wanted to bring it back to the market conversations we're having here on cnbc. these wild swings and questions about whether we've seen the peak of global growth, u.s. growth, earnings growth. can you give us a sense of how

those answers feel to you in light of the current stock market volatility? do you think it's justified based on what you're seeing in the real economies >> every sector is different and responds to changes in macroeconomics at least the coca-cola company we're not that volatile. clearly, it's very important to us, the trajectory of global economic growth. we continue to see continued growth maybe a little bit of a softening that has come in there's strong growth out there. there are some countries that are having difficulties and, of course, we have to adapt there we see continued macroeconomic growth but clearly we're moving to a different phase and that will play out as we move forward but what can we do in the end? we have to focus on what we control. we have to think about our brands, think about what the consumer wants, reinvest and execute with our bottlers to create value for our customers we have to focus on what we can control. >> and the investors are

rewarding you for it today and pretty much all year james quincey, always appreciate the insight on earnings day. joining us exclusively, ceo of coca-cola. pharma giant allergan, shares down almost 4% as you can see. we'll speak to ceo brent saunders later this hour macroair announced in the last few minutes and conference data out of the conference call, ceo steve oddland will join power lunch later to break it down led by intel and goldman, dow up

the so-called fang index down you can see all the major components have gone green apple, of course, with that event in brooklyn. p 2l get to that later on s&up7 points we'll take a short break

apple continues to hold this event in brooklyn as it announces new products, including a new mac book air and mac mini jon fortt is live in brooklyn for us good morning, jon. >> reporter: good morning, carl. you stole a little bit of thunder there, but absolutely. $1199, available to order today. shipping november 7th. some stats further, 14.3" retina display. that means it has four times the resolution, more than 4 million pixels on the screen t-2 security chip to allow touch i.d. sign-in it also has a more sxonsive

keyboard, often an issue with these thin and light lap tops. people complain it doesn't have quite enough give in the keyboard, not enough feel. they're saying this one does the force touch track pad is 20% larger in terms of the design volume, it's 17% less volume that means it clocks in at 2.7 pounds rather than 3 pounds before environmentally friendly also, recycled aluminum. first time apple has been able to do that in the past they were saying their demands for high quality aluminum meant that they had to mine it specially but in the name of being environmentally friendly they've been able to figure out through their metallurgists how to do that and tim cook also announced -- >> the new mac mini! i would like to introduce you to

our head of mac product marketing to tell you all about the new mac mini tom! >> thank you, tim. >> and tom is on stage now some of the features that he is already announced include four and six core configurations of this that's the cpu configurations. that allows more speed they're saying it's up to five times faster so we expect not just that but also faster storage available with this. mac mini different from the imac, guys. >> jon, thank you. jon fortt outside the brooklyn museum now time for our etf spotlight. taking a look at ge. of course, the company slashed its quarterly dividend

power division is a mess, to put it lightly, i think. and stocks have been all over the map. >> down so much. prism of etfs, even as much as the market cap is down, it's still a big part of the indexes of the industrial sector, etfs as well. take a look at where it shows up in terms of etfs with heavy weighting. one davis u.s. select fund it's a stock picking fund not a pure index the fund has done quite well davis folks are pretty kind of disciplined big cap value investors but obviously this one hasn't worked out. that fund has taken a hit recently it's about flat year to date in the standard industrial sector fund xli is the spider. it has about 4.5% waiting in that fund overall it's been weak another one, vanguard industrials, very similar sector fund has a slightly smaller one. but the one i wanted to talk

about that shows up with large waiting is the oppenheimer ultra dividend it's a billion dollar etf. not small. it had 4.5% waiting in this fund and will be leaving this fund almost certainly the methodology of this e. tf is to look at the highest dividend stocks in the s&p 500 and wait the holdings of those stocks by company revenue. it wasn't just weighting it by yields because ge had a lot of revenue it was a very large holding along with gm and older industrial utility stocks. kind of a small example of you only own it for the dividend, you're taking certain risks. >> yeah, without a doubt a and, of course, no longer going to be owned for that dividend. thank you. sue herera has a cnbc news update for us. >> indeed, i do. good morning, everyone president trump says he wants to

order the end of the constitutional right to citizenship for babies born in the u.s. to noncitizens and unauthorized immigrants. he made the comments to axios on hbo. this would likely spike a court fight over whether he has the unilateral ability to change an amendment to the constitution. search and rescue teams continue to search through aircraft debris from the lion air crash monday 189 people were on board when it crashed into the java sea 13 minutes after taking off from jakarta. saudi arabia's top prosecutor visited his consulate in istanbul where jamal khashoggi was killed they are keeping riyadh's help -- seeking riyadh's help in finding khashoggi's body in italy, firefighters have rescued 19 people, nine have

been killed and much of that country is under alert for flooding you're up-to-date. i will send it back downtown to you. carl >> sue, thank you very much. as we go to break, quick check on the markets dow a 218-pot gainin we'll take a short break and be back in a couple of minutes. checkout is at 4pm. plenty of time to enjoy your ride. (bicycle bell sound) ♪ ♪ (bicycle bell sound)

♪ ♪ (bicycle bell sound) ♪ ♪ explore more with a guaranteed 4pm checkout at over 1,000 fine hotels and resorts. it's another way we've got your back. ♪ ♪ the platinum card from american express. don't live life without it.

>> stocking surging this morning. volatility continues to drive the market narrative in today's session. joining us this morning at post nine, tony cricenzi. good morning. >> good morning. >> markets haven't moved much. i wouldn't say they've gone up a lot and they haven't gone beyond much what markets expected

remember during the taper tantrum, put its volatility rate close to 5% and here they're priced for a level almost half that one could easily blame the bond market for the stock market's trouble. it could be something else that could be simply consolidation. from 18,000 to now 26 -- 4,000 that's a big gain. cyclical form, december 2017, op-ed called peak growth and notion of growing but slowing. for the global economy to sum up we expect 3% next year versus 3.3% this year and 3.3 last year not a material slowing not bear market stuff at all so it looks more like a consolidation more than anything there are worries, though. >> the fact that it happened

after pal came out saying we're a long way from neutral is a coincidence? >> we do think it is fed's policy rate is 2% to 2.25% as a range 3 might be where neutral the fed thinks, half the current level markets probably were overthinking one of the problems with the market is europe look, today at gdp figure. big slowing of 2.6%. it had made it in the twos plus markets were worried about an end point, rolling end point. ireland, spain, greece, nations realizing they can't get out of debt problems with more debt worries shift to italy and problems it's having, raising its deficit and the market is worried about that and the loss of an anchor, germany potentially, with angela merkel set to leave in 2021. >> john rutledge joins us to talk more about this

i wonder if you agree with tony that it's stiffing out slower growth as opposed to yields and whether or not -- if italy is dealing with this problem now, does that cross the ocean and visit us some time >> you know, i think in markets like this last week, first thing i would say is this is not 2008. second thing is amazon is not lehman the world is not falling apart i think fundamentals are good. looks like softening in capital spending and inventory build-up in the last number basically i don't think that's the real issue the issue is there's always been two economies. there's a gde economy and then the markets which are ten times bigger and tony is right that some of

these got too big and the fact is that amazon is a great company and ali baba is a great company and none of that has changed by the fact that stock prices are falling so i'll take amazon and alibaba. so usually when you get such a big decline for stock prices, and we're heading for our worst october in years, and a growth scare, you see a flight to safety into treasuries and see yields go down and so what does that tell us? >> one of the things that happens late cycle is you get divergence between assets. as an investor early in the

cycle, you can't anymore interest stock market, cyclicals performing badly everything previously would go up at the same time, including bonds. now bond prices are falling because the federal reserve is raising rates and reflects the potential for inflation. not stagflation. still above potential. and it's probably not a bad thing to have a slowdown rate next year. what could sustain the expansion is a slowdown. the economy could move on and it might feel more comfortable with the outlook. right now it's dealing with a lot of different things, including the trade surge. >> john, where does that leave people, john, who argue that a

change in powell's rhetoric is the answer to all of our ills. >> i don't think the rhetoric of the central bank chairman changes the fundamentals very much and i think the fed will do what they're going to do, which is they'll keep raising the short rates. i'm more worried about the bond market and the interest rates. i'm in a microsoap in a lot of different businesses for the first time in a long number of years, they are now trying to figure out how to raise prices to offset cost increases. 6, 7% inflation problems is what the managers have been telling m me. >> somebody who received beijing's great wall of friendship award quickly, give me insight here. are the chinese going to back down or is this thing going to drag on for a long time?

>> the chinese, meaning both the political leaders and the ceos have decided that this is a long term war with the u.s. and we're not going to change our anti-china policy at the moment, which means the ceos are moving businesses into vietnam and we've got various kinds of stimulus happening we've got a reduction yesterday, talked about it with the car techs. last week in the income tax reduction. we've had the central bank put liquidity in the market and lower reserve requirements and lowered tariffs in china so, they're prepared to unker down and do this for a long time in a place that's growing with income growth that's somewhere between 5% and 10% in the cities, they can do that for a good while i think trade wars are dumb. always have and always will be. >> wish we had 30 more seconds,

but we don't tony, john, thanks so much. >> take care. >> thanks. allergan shares are down 6%, despite what were better than expected earnings. it also did raise guidance why the stock down mp'll speak to brent saunders, coany ceo next "squawk on the street" back after this quick break

more details out of apple's announcement in brooklyn for more details, let's get to jon fortt. jon? >> reporter: they're going into details now. here is tim cook, just taking the covers off. >> we're announcing an all-new ipad pro it's going to push what you can do on ipad or on any computer

even further and here it is. >> reporter: so far we can see they flattened out the sides on this more in the style of iphone 5. the home button is gone. probably further incorporation of face i.d. into the company's line of products probably unlock this with your face, some of the rumors suggested. they're positioning this more as a computer somewhat of a conversation move. apple decided not to incorporate touch screens into the mac line and not to incorporate more pc features at first into the ipad. tim cook famously calling those hybrid machines refrigerator toasters they have done pretty well for some other manufacturers including microsoft, lenovo, hp.

microsoft continuing to make the case that the ipad itself is a popular computer without becoming a pc and the mac is doing just fine without incorporating a touch screen we'll see how they follow through on that with the features and where the pricing is apple also announced a new mac mini at $799 that will also be available for preorder today, shipping november 7th back to you. >> john, thank you for the details. keep 'em coming. apple shares down just a bit less than a quarter of a percent. allergan projecting better than expected earnings. despite that, shares are currently down 6%. with us now, brent saunders, allergan's ceo, along with our own meg tirrell. meg? >> thank you, sara beat and raise for the quarter i'm trying to figure out what's going on i've been talking with analysts and investors. you raised your forecast, then you could have raised it more?

is there something else driving your stock >> to be honest, i don't know. we delivered solid execution in the quarter. we delivered solid execution the previous quarter and the quarter before that. we have a nice momentum going into the year. the pipeline is clearly advancing in a positive way. so, i see the business firing on all cylinders right now. i'm not sure why the stock is so disconnected from the performance. >> you had an esthetics day where you focused on botox and juvederm one thing that caught people's eyes is that you're trying to expand botox to millenials. >> broader use of botox cosmetic and where we're seeing a real momentum in that market is in millenials and a little bit into men. and markets like china are becoming our fastest growing markets now. >> you have substantial competition coming to botox. how nervous are you? >> we take all competition

seriously. we have competition all over the world. we have great competitors in the united states and botox is a ubiqutous brand. it's the name of the procedure itself and it's the most itself, and it is the most studied, most used product in the market we are continuing to innovate around it, continue to make sure it is widely available, widely advertised, but i think we're in very good position. >> are we going to see botox dry bars i'm interested in the concept personally and as a business idea do you think it will catch on and is that safe >> i think safety is always first for allergan we don't do the injections, it is done through a qualified medical professional as long as they're licensed and qualified and trained, it is very safe. botox is actually one of the safest drugs on the market safety database is quite robust. that being said, it is all about the injector we work hard to train injectors.

allergan will train about 80,000 injectors this year. that's double what harvard trains in all of its university every year. >> quick question on capital allocation some shareholders are clamoring for more in terms of share repurchases. you are generating about 5 billion in free cash flow. there are those that say there's plenty to be used for buy backs, given how cheap the stock is are you listening to them? >> i agree with you. the stop is inexpensive. we continue to look at buy backs. keep in mind, we bought $17 billion of stock back in the last two years, so it is not like we aren't participating in a robust way buying back stock, but remember, we have to invest for growth, and we are working hard to reduce debt to two and a

half renleverage ratio >> some suggested the company break up meaningfully. at this point i think you're still pursuing sale of anti-infectives and women's health bring us up to date on that and answer those that should say you should have a more meaningful breakup. >> we did a comprehensive review with the board to find out what's the right focus forward for allergan we looked to divest women's health and anti-infectives women's health is an adviser led process. at the very early stages of the process. preliminary expression of interest, lower than i would like i am a disciplined seller. i sold many assets in the past we'll see how it plays out we are working hard to accomplish those sales we'll see what happens in the next several weeks. >> as you look at pairing down the business, folks are focused on your pipeline as well david merit saying it was a

great quarter, but there may still be skepticism about the pipeline tell us about some of the assets you look ford to being promising. you have a depression drug, we're hearing a lot about that this week at the fda how does that look >> i think the pipeline looks good it is science until a drug is approved by a regulator, it is medicine we have work to do we have several positive phase three studies this year, more work to do on a few of the programs the acute oral migraine drug will be filed by first quarter also early next year we'll get data on the new depression drug, could be a game changer for how we treat depression, and suicide, and in a space we're committed to and i came back from american academy of opthalmology, we presented two posters, three updates on late stage programs

for glaucoma, amd which could change the way we deliver that treatment in terms of duration and effect, and for one of the biggest needs, at rtrophy >> there are a lot of moves leading to midterm elections most recently, the trump administration suggested changing the way some medicare drugs are paid for and tying it to an international average. what do you think of that idea >> i think allergan has been among leaders in responsible drug pricing with social contract almost two-and-a-half years ago. >> some people say you committed to not raising drug prices more than 10% a year. >> we agreed not to raise net prices by inflation and gross prices by 10%. this quarter, the quarter we just printed, zero price appreciation in our numbers.

that's the future. that's what we predicted would be the future and we are moving forward. with respect to international reference pricing with cost control governments, that's a dangerous proposition. a slippery slope ultimately you have to have responsible pricing and access for patients, but setting a price against arbitrary prices where countries discouraged innovation, lost their pharmaceutical industries, they all moved to the united states, the science is all being done in the united states for that very reason we just have to find that balance. but it is a slippery slope. >> what about the trump administration proposal to disclose pricing on television a ads. you're a big tv advertiser. >> we should develop a system to explain and be transparent to consumers through a website broadly advertised and updated by the industry. i worry about putting a price that's less relevant to a patient on tv. remember, we discount our

medicines from 40 to 50% to the end user, so what price goes on the tv ad, the price the insurer is buying it at or the price the patient is buying it at. those are two very different, anterior and materially different prices. what's relevant to the patient is what they have to pay, not the price the insurance company buys it for. >> thanks for being here >> thanks. dow is up 116 for the moment let's get to energy. >> stocks are losing steam off early morning highs. one of the notable underperformers is energy. wti crude hitting the lowest level since mid august, now tracking for the worst month since july, 2016 among the names leading lower, anadarko, hess, marathon oil, down more than 20% from recent

highs. back downtown to you guys. >> thank you keeping an eye on energy trade. later today on "closing bell" facebook earnings. we are all over it the stock down sharply since the last report when it shocked the street, predicting growth would slow and the ceo of tapestry, an earnings winner. >> a big afternoon. apple's new product launch continues. we'll get live coverage from that event and analysis. the s&p going green for the year, but dow gains t mocualst in half. "squawk alley" is up next.

life was tough in cuba in the 60's. my mom was fired from her job, so she started making cakes to support us. the first account that we opened was with bank of america. since then, we have grown exponentially. to me, food is love. and i think food brings people together. everything in life is about giving back. you're only as good as what you leave behind,

when you leave this world. ♪

i am incredibly excited today to introduce an all new mac book air, with a retina display, and a whole lot more. and here it is >> good morning. it is 11:00 a.m. at apple's event and 11:00 a.m. on wall street "squawk alley" is live