people in the white house who wants this news out there and the president himself want s to get a deal he wants something he got with mexico and canada which the administration views it as a big win. the practical reality is there is a long way to go in this negotiations right now intellectual property theft for the chinese is difficult >> you can't confirm and the weekend is coming. thank you, ammoneamon, we got t. make sure you join us on monday. it is "squawk on the street. ♪ good friday morning, welcome to "squawk on the street," i am carl quintanilla with david faber and jim cramer, we'll talk to joe tsai.

some conflicts report s of u.s./china deal. our road map begins with the market come back stocks opening sharply higher on track of four straight days of gains. we'll get some headline on the potential china deal iphone shipments and the outlook, well short of wall street forecast. the stock is down 6% in the market >> alibaba and starbucks and alibaba, joe tsai and kevin johnson will join us this hour >> got jobs number well ahead of the 190-k

estimate lowest in nearest 50 years year on year wage gains jumping past that mark jim, participation is up 2/10 and a stellar report >> the futures should be down and the market could be down today. this is the ammo that jay powell needs to say listen all of you are saying one and done in december, are you kidding me >> these are the numbers that we'll continue to get and we'll have to move fast. there is a guest previously who was on then we'll have a recession and things will be fine. it is like why do we have a recession because people are finally making a little bit money. i am on the opposite side. >> you think these wage numbers after eci and unit labor cost and gm and apple price hike this quarter, you are not worried >> no, i am not. i am worried of the fed, many of

these things are transiet and a year from them, we'll be looking at them. there is commodity inflation copper is coming down and natural gas is coming down and oil is coming down very hard i think there is enough soft data if you mix it together, it is worth it and definitely put a rate hike in december. wait and see if it does not matter these numbers don't start to take into account. what i am seeing in housing which is so, so bad. you can't sell your house. >> a bit backward looking. >> we got rising inflation and wages. they read the wall street journal two days ago and they did the story. they think the feds not going to hike rates >> you are saying inflation is peaking. >> when i do a lot of work of

the commodities and it is entire entirely possible. the biggest inflation out there is transport we are getting one place to another. amazon pays $15 an hour. it is transport. the logistics in this country is awful now. but, i am not concerned because i think in the end are the great american companies will figure out ways to keep those costs more and control i am concerned of tariffs. >> six months of 216, we are on trend more or less two-tents, all pretty strong >> here is a good question that the economists refused to confront themselves. where are these people coming from there are plenty of people who still want to look for jobs. there are pockets in the country

that are 1% >> you talked about hiring standards going way down because those are the people you are trying to get dishwashers in brooklyn >> so we hire people who are put in prison for selling marijuana. we hire them they come out and we give them a chance i am just saying, some people would say that's a consequence of full employment i am saying there is a lot of people who are getting jobs and i love that. minorities have been having trouble for getting jobs people don't want to hire minorities the way they should getting jobs, this is what we want and this is the kind of things tax cuts meant to happen let's it pecolate. >> apple is a big story today among boosting prices. the company will no longer be breaking out individual sale numbers of the iphone and the

ipad, the mac. tim cook talked to josh lipton last night there will be a tougher compare with q-1 the second thing is that the foreign exchange will hit us to the tune of $2 billion during the quarter. >> you had a discussion of this unit you are not bothered by it >> all these guys -- >> they're beginning to sell it. >> they'll come in, that's great, they bought it at 220 and sell it at 198, how brilliant is that the stock will be down they don't like it because they want to value like the steel mill or 15 times earnings? i know we heard the whole card analogy from there cook.

>> he's a hack >> don't put words in my mouth >> the ceos are getting, we get off the call, we decide those two don't know what they are doing. they're as stupid as bezos these are great people when you are on the procter & gamble call, do they tell you how many razors they sold? let me tell you. they don't that is consumer package goods if this company are followed by the people who did a consumer goods. >> you are not disagreeing with iphones going negative next year and desell -- deceleration on services >> mthey missed on their unit number i am just saying >> okay, they're awful service number was fine, they

did not allow gaining in the government china >> that matters. there is a belief that chinese is going to lose in the gain >> i used to handle cash management what i know is this. when you have this high of fed funds rate, you should sit there and coin money what did the cfo say to me when i suggest that are y are you kidding? we'll buy back stocks. okay, hedge funds who are under perform and don't deserve your two and 20 or whatever you guys do you prey on the economy and you useless. i will buy your stock. >> what about the notion that and jim it has been a theme with all apprentice quarters, asp is up mcdonald's makes it up on check.

>> who has this kind of pricing power. it is about pricing power. do you think craft time has pricing power for oscar myers weiners? weiners don't have jack. >> the whole quarter is finding out who's going to eat it. >> and kraft is eating it. there is like 72 different cream cheese the only thing that's good is cheese whiz. i think the kraft time number demonstrates they have no pricing power. the asp number is up >> india was a problem tim cook called that out the dollar is extraordinarily killing a lot of our exports but that's okay. it was not there with foreign exchange >> tail wind >> david, this is a tsunami head wind >> i don't know. >> you really like being conventional wisdom. you just like d that

>> no, i have you here i did not figure this out -- >> these guys are really scared because they're not going to reveal whatever other consumer packages good come i wish they would have told you that was a bozo move >> we got to alibaba >> you have them or something? >> he's got a short window >> alibaba earnings are out, the company did beat us. revenue short, business are up 56%. revenue from cloud computing real bright spot but it is the revenue guidance that concerns us vice chairman of alibaba joe tsai, a bit of delay, always nice to have you in terms of the cut by 46% citing macro of china in particular on the call which you began by saying just in the past month, global macro and economic

decisions have become more uncertain. why the last month and how long do you think they'll stay uncertai uncertain? >> well the revenue guidance adjustment are voluntary move to give more room and time to our small business customers that are doing business on our platform because we are holding back on the monetization we created 25 million users and that's giving us to 600 millions and active user that is are shopping on the platform with this kind of robust traffic, you can certain limonti l ly monetize against that we made a decision to hold back and gauge the environment and give our small business customers a little bit of time >> i try to explain that advent ri and previously you

thought would come into the platform you are discussing in particular, don't really need additional cost right now. so you are not going to be introducing that inventory the question from investor, joe. when do you think you will do you have any cite at this point given the uncertainty that you cite in the chinese economy when things are going to be more >> well, we are not going to commit to a time, we are going to play by ear and observe how our merchants are behaving and selling on a platd foform this is a transition to a new advertising product that we are going to work on takes a little bit of time for our customers or merchants to learn the new tools because the fact the matter, new traffic is being created potentially could have a lot more value proposition to our customers

rather than just generating the next sale, additional traffic can bring them new customers in terms of new customer accusations. we'll take it a step at a time >> were you temper spending at all given the revenue guidance or you are going to continue to spend at the same rate >> well, we have identified a few very strategic areas, for example, our local services business, entertainment business, our lodgistic business as well as international these are the four university that university -- units that we support in and also watching the metrics to make sure they are performing on par. that'll continue and we are not going to cut back on that. >> you are not >> joe, perhaps no company has a

better sense as to the health of the chinese consumer than your own. as you pointed out many times, i think 90% of gdp growth of your country at this point are in china and relying on that consumer spending more what's the chinese consumer like right now? how would you character tize th state of their health. you got singles coming up which is a good reflection of their willingness to spend >> well, we think consumers are still fundamentally healthy. over the last year there is a lot of savings and wage growth there is one point that's important to know that household bets have very low in china. that means consumers are not very leverage. fundamentally from what we can see in the various categories,

the general merchandizeed catego -- there is a lot of confidence writing on potentially the government, potentially has recently said they're going to cut taxes where small businesses and there will be good anticipation of a lot of these moves and fiscal policy. we'll observe it closely. fundamentally, we think consumers are strong >> jim cramer, great that you are on our show. i want to ask you we are going to have kevin johnson on a few minutes from starbucks

he's really keen on your partnership to be able to bring about a dramatic growth reported, let's say regrowth in china. also, including delivery which has hurt them. can you speak what it means? it can be meaningful for starbucks in the first of next year >> i will let kevin talk about their business i know they just reversed their earnings that's a very good sign. our partnership just launched in september, it is going to take time we are very excited to help them especially in the delivery side of things. you can imagine consumers will want to at some point just if they don't have time walk into a store to pick up their coffee, they can have it delivered to the office or their home this is a convenience service.

we have a whole delivery force that's apart of our food delivery business, that can be leveraged to our effort. we are excited of this partnership. they'll participate in our singles day, 11-11 festival where consumers will be able to get discounts and promotions when they order coffee for delivery when they get coffee for delivery, they may receive a coupon that'll encourage them to walk into the store to increase in store traffic, we are dpieexe about that >> two quick questions, do you expect the trade war between the u.s. and china to continue how are you viewing it from y r alibaba in terms of expected duration >> well, that's anybody's guess.

nobody wants to have a trade war. china and the united states are symbiotic in terms of economic relationship china's export is $125 billion in goods and that's not counting the $45 billion services there are 68,000 american companies doing business in china. annually they generate $60 billion of revenue if that all gets shut off, you will see that reflected in the stock market in the united states so, you know the relationship is so symbiotic and so important, these are the two largest economies in the world we have to work together we are hopeful that you know in the upcoming meeting between president xi and trump that they can work something out >> yeah, finally, joe, i have to ask you this because i heard it from so many people and it is a bit odd.

jack ma's decision to step down as executive chairman or chairman of alibaba a year from now, people in the states believe that many of it may have been done as a result of pressure from the government in china. can you address that and the reasons why he's stepping down. >> that's not true this is a perfect example of a properly transition plan jack has been thinking about how to let the next generation take over the management team let tha that -- they're all in the mid-40s and young. daniel has been the ceo of the company for three years. we are focused of talent development in our company we are constantly looking for good, young talents to take over our existing management team and continue to develop their

capabilities to at some point in the future to take over. this is really apart of that that was in the making for several years and jack had been thinking about this. i would view it as a good example of a properly run corporate transition plan. >> joe tsai, we appreciate you taking the time. thank you. >> joe tsai, vice chairman of aliba alibaba. >> starbucks sells are up. we'll talk to kevin johnson. vix is down at 18. can we get a fourth day of 1% gains? "squawk on the street" is back in a minute. st drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

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it is evidence of how much activities this is the treasury auction pick it has been going wild just to give you an idea of how much movement this week. 30s are up two on the day of nine on the week and a basis point away from challenging and a new four year plus high yield. look at the one week of tens, we talked about how it looks like it was wounding. volatility has kicked in but it is rounding and firming.

that happens at volatile time. questionable time for equities which may not be over. it is a process. if you look at the 30 years since july of 14 which is what we are flirting with regarding of testing the limits of cycle move the third year has been really firm the last two or three weeks. the 30 year in particular never getting close to its early october break out of 10-yr note did. this really underscores the dynamic, not only of what's going on with the economy and the die vvirgence with the econ. being in a younger state and trying to accomplish the long-term normalization process. dollar one since october there, you can see how the dollar turned down the last couple of

days look at the dollar index similar even though the yuan is not apart of the dollar index. >> all right, starbucks is up in vie market and we'll talk to ken johnson in a few minutes and we'll get cramer's mad dash. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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god, could it be any busier this morning "mad dash" with jim. you mentioned of philadelphia crime cheese and all that. let's get to the number. after kellogg, does not look any better >> i am going to tell the new ceo of pepsico that he should report right about now you see who has growth of fri-to-lay and who does not. david, this company, their model is broken. they had to buy someone ever since they were not able to buy.

campbell could not move the needle here. i don't know if i am working at kraft, i don't know what i would be doing right now >> the acquisition path has been to some extent certainly made more difficult very quickly you would have been a genius >> jim, people right lane concerned of the margins as well i think people came in well below elements >> markets are off they try to put a good spin on it and talking about net sales increase 2.6 someone could say 2.6, how could you like them. this was a company that was a cash flow company. the cash flow is not nearly as strong ibita is cut it decreases 14.14%.

>> negative .9% impact >> this is an example of a bad report this is bad. now everybody hates apple. this is the kind of company that i don't like it is a destroyer of value i said it. >> you did >> destroyer of value. >> they need a wholesale and reinvention of the company to get outside of the center of the store, millennials crafted hinds. they wear blinders >> oscar myers, you know what i say? there. i wish that had been on camera

>> as we are looking at the opening bell the big board, it is show time owned by cbs doing the honors at the nasdaq leadership, business leaders. dow is up 132 to start, jim. >> sell it >> apple is on pace for the worst day since april of 16th. did they miss? >> no, they made did they have good numbers >> they made did they decide they're going to break things out the way they did. there is a community that want to live in the analyst communities are up in arms. the ohio pension fund. they must be furious, they're shaking right now. let's sell apple we don't have the numbers. carl, this business is driving s this is not the business i chose. >> are you a fan of market closure or less?

>> i would like to know they're switching their model to consumer package goods model >> like gm when they stop giving monthly, you would like some warning on this. >> i don't like -- i am to criticize the greatest company ever you know i am a fan of them which is bad if you like them when they're 50 billion and now they're trillions. i can't change my stripes because they changed their report any company tells me we are fno going to sit there and making bank accounts. i rather buy back stock than earn interest. half the companies in the country are rather buying stocks these guys are going to 15 multiple you see this thing i am throwing this thing away.

>> this is going to measure your heart rate soon and you will get an insurance discount. do you even have one >> what do you have? >> i have comcast insurance which means i don't have any >> why don't you tell a doc? i have this. >> it is what bfa says gets them to 220 as they go to neutral >> he warns you that the service number may not be that good. >> it was up 17% >> they're still on target to be at 2,000 >> have you been on aircraft carrier? >> you are in there. listen, you are coming in too high >> wow >> red october >> coming in too high. it came in too high. >> what? >> your point is they never took the beating that their fang took in october >> exactly that's my point.

amazon, was that a great sale at 1400 >> how is that at 1400 sale because everything was bad >> that was looking good >> how smart was that? how about the alphabet >> how many idiots do you have >> are you mad this morning because december fed funds future went to 80 plus from 74 >> yes >> i hate it when workers make more money that's another problem i have. 3% >> there are more billionaires on a single block in san francisco than there is all the money in the world we can't these people making 3% more because that's bad. how about all the people who keeps on fighting and go to work why are we at 3.7. take it to three won't be the end of the world. have them all eat cheese swiss

i wonder how many of them will be able to afford iphones? >> $790. people pay up for this this is the greatest consumer problem in history >> we'll talk to johnson in a moment about transaction cost of where it is at >> starbucks is up almost 8% >> they'll live longer it is about longevity. >> we are in a check economy and not a traffic economy, in other words, the mix >> if we had 50,000 trucks if we were to put a bounty which what they have to do union pacific had a bounty if we have a family system for truckers and we found sp-- we would have inflation down. jay powell would say i am sorry for wrecking the economy but now that the inflation is down, you

better believe we'll put it back on track >> there is a look at starbucks which is having a very good morning. put in perspective for me, jim, i don't know if you can do this. >> why >> you are a little exercised today. >> let me show you what david did to me beforement , it got t this it was a knife fight >> it is okay. he's fine. >> medic >> that's poetic >> viewers want to know what's in your coffee cup and who pee in your corn flakes? >> what? >> for the record, -- >> i don't know what he did to himself with magic marker. he's probably marking something else at 3:00 in the morning. >> the matter at hand is a broad perspective on the nasdaq with apple, no matter what you are saying coming in with numbers at

least of this point where investors are not hoped for. after we approve of more or less all earnings at this point and in light with jobs number and wage growth. i saw some of the numbers, oh my god, were they horrific. >> a 10% losses for the month. they took the risk off and they are done it is now the time, do we come back and -- assess the fundamentals >> people coi see real power -- totalism, let it come down why don't you wait a little just for it to calm down a second i think it is outrageous of what's happening to apple.

amazon and the hate tweets that i got. i blocked 30 people telling me i can't believe this clown is telling me to buy amazon mr. clown to you >> that's how i address you. >> we got serious during makeup. >> wait until you see what i have >> i am smart enough to know not to mess with you >> i hate to break away from this lovely moment jim and i did speak to the dow conde chemical. we heard joe tsai talking about it moments ago the slow down in the chinese

company. here is what fitterling had to say. >> we just opened our 11th office in china. we have been over in china over 50 years this allows us the community to grow are customers china consumer is growing. sure they got some pressure and things that are happening with tariffs that's creating uncertainty but the long-term growth trend is good >> we got a lot more with mr. fitterling that we'll share with you. we had an interesting discussion of plastics. >> this is a heavy duty paper. they are the company that's using paper as a substitute. >> what happens with straws, right? straw policy in california and the u.k. >> yeah, i know. >> it is the age of paper. i thought, not yet >> he thinks otherwise >> yeah, he does

i am happy with my coffee this morning. >> you know i am happy to interview right now kevin johnson, starbucks is back i have been saying it has been bac back it is back because they are doing better there is a novel thing, not social or chemical or financial engineering. better sales growth in the u.s a lot of people thought it is not possible that is what gave you the fresh records up more than 10% from a year ago and buying back stocks. this is going to be fun. joining us now exclusively is starbucks' ceo, kevin johnson, thank you for coming on the show >> good morning, jim >> i have a little starbucks this morning so i am a little heat is these sustainable a lot of people told me including the fella from the name nick stone that you guys were the man and he was sticking it to the man.

you are the people's choice, is this sustainable >> this was a solid quarter when we look at every key operating metric we improve in every sing of area. we have been working for 18 months to set the stage for the company to focus much more on our core long-term growth market in u.s./china. what you saw is us doing exactly th that same store comparables in the u.s. improving to 4% in china we had a 3% improvement posted a 1% in china we grew transaction in china of the mid single digits. this has been in the making for 18 months and we are playing the long gain. we recognize and we still have much more to do. we are pleased with the performance we had with this last quarter >> kercvin, correct me fif i am wrong, you bought stocks at 51

or 52 or 53, and that turns out to be a good bet on yourself >> certainly, jim. we have been buying back stock very aggressively. in fact for fiscal '18 through 21 we committed to bringing $25 million of cash to our holders. fiscal '18 alone, we return $9 billion we got the proceed from the nestle -- yes, we are a buyer of starbucks stock. >> kevin, there was a moment in the conference call, it was a good conference call you guys admitted that the store did not look good during your holiday season last year that hurts you what do you got plans for this

holiday? >> our store in seattle, it is transitioning over night to red. our holiday teams around the world have set the store in red. we are excited of this holiday season last year after the holiday, we went out and did focus dprugrous with customers and we listen to feedback that they gave. certainly our merchandise this year, we trimmed down the range of merchandise and focus much more on things we felt it was holid holiday appropriate. that's number one. we are doing this launch simultaneously today and we are funding a media campaign to make customers aware of the holiday beverages that we have today you notice we got our holiday cups we went with a classic, retro design with our cups we have something unique this year, we deliver some bevers rages to you guys earlier.

it is a big thing for starbucks. this year we have our red, reusable cups. every customer that buys a holiday beverage today will get this reusable cup. if they come to our store after 2:00 p.m., they'll get 50 cents off. if you come and get your cup today, they're free for purchase it is our opportunity to give something special for our customers and an opportunity for our customers to give something useful to the planet >> how much does it set the price of an ordinary cup >> well, it is free today and you come in and buy a beverage. anyone buying this today gets a free cup i think we sell it for $2, you can buy that cup and after 2:00 p.m. gets 50 cents off your holiday beverage and enjoy the fact that you are contributing

to the sustainability of the planet >> interesting we are talking about prices seems like the leaearnings have been rising prices and jeeps and ipads and iphones and starbucks, how long will it be in the environment that it is more about check than it is traffic >> if you think about our traffic this quarter we saw continued growth in our a.m. hours in the afternoon day after 2:00 p.m. where we have been focused, we actually close the gap a little bit on transaction. we saw not only a one but a two year traffic comp improve. there is still more to do. we are seeing good trends. when it comes to ticket, only one or 2% of our tickets

compri comprise we are pleased with the mix we saw last quarter and of our four points of comps in the u.s., three points was from beverage >> kevin, i would like to get your take on china o f the most important growth component overall for the company. you opened 585 net new stores during the fiscal year last year and 3500 stores, 148 city in the mainland what's the state of the chinese consumers right now? are you concerned of the deceleration of growth there and perhaps the fact that they're not willing to spend that much >> yeah, david, certainly china is our second largest and fastest growing market our number one metric that we look at is total transaction growth that's the sum of transaction growth from new stores as well as comp. we saw total transaction growth in the mid teens

certainly the gdp growth has slowed a bit in china. that does have an effect o consumer spending. we are still growing we are playing a long game i know you had joe tsai from alibaba, they are one of our great partners and our partnership is just getting started. we launched a delivery in beijing and shanghai by the end of the counter year, we'll be in 2,000 stores doing delivery and partnership with alibaba. we continue to expand in terms of new stores and offering for our customers and new cities i think there are probably of some impact of consumer spending we are driving that key which is total transaction growth >> kevin, a lot of people are skeptical of someone with a background of technology will be

able to come in and work at one of the largest consumer companies. one of this i thin this seems to be something uniquely technological i think that matters tremendously for your comp store sales in the united states >> well, you know, it did, jim the more we can enable our starbucks partners to focus on the customers, the better our stores perform this particular quarter, we automated inventory replenishment and tracking we are able across those stores to redeploy one and a half hours of administrative time that our partners had to spend. we employ that time to focus on the customers. that focus on the customers is the number one key driver that i think differentiates us. it is all about how our starbucks partners are able to create that environment and relationships with customers and provide them these premium hand

crafted beverages. our ability to use technology to free up time so partners can focus on the customers was one of the key things that we saw in q-4 and we'll continue to focus on it. >> kevin, some disappointing number today of the labor department a lot of we'althy coming out who say if more people are getting jobs -- >> certainly unemployment is very low right now we got to compete in the labor market along with ercveryone ele one of the things that differentiate starbucks is the fact that we compensate above minimum wage and more importantly we have a philosophy, a principle and a set of values to take care of our partners that started when we offer healthcare for workers of 20

hours of work or more and we have the college achievement plan with i think nearly 10,000 starbucks partners now attending asu, getting a college education and last quarter we introduced something called parra.com where someone needs help with a child or a family member our ability to provide not only wage but benefits allows us to attract and retain partners well above any industry metrics and that continues to serve us well. >> one last question, kevin. next week is the midterm elections and a lot of people are going to start talking about who will run for president we used to see howard schultz a lot in these interviews. what's the buzz? 65% that howard runs 48% that he runs clearly there's a percentage you could easily say you have to

ask howard i'm exempting that question. i'm hoping you'll answer is howard schultz going to run for president? >> that's a personal decision that only howard can make. i know he's mentioned he's looking at things he can do to serve the country and society. he is the definition of a servant leader so howard continues to be a good friend. she's a large shareholder in starbucks. we stay focused on what we're doing in starbucks and i'm sure he's busy focusing on what's next in his life. >> excellent 63%. kevin johnson, ceo of starbucks, great to talk to you congratulations on a great quarter. >> thanks, guys. we'll take a break and look at the top-performing stocks on the s&p as the index is up about 14 points. don't go away.

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that jobs number pretty strong the president weighs in saying, wow, the u.s. added 250,000 jobs in october, despite the hurricanes unemployment at 3.7%, wages up, these are incredible numbers,

keep it going, vote republican of course midterms are coming up on tuesday, jim. i'd be curious to see if the gop adopts the economy as a message in the closing days. >> if i were them this is all i would talk about because people like to vote their pocketbook. i would not talk about any of this other stuff and just presume that that's known but just embrace this economy as being red hot and that you want it to stay hot the numbers are great. i favor the december hike. i don't want inflation to come back but, wow, what an easy story to sell. it's easy. >> apparently not. >> well, we don't know. >> it's not necessarily being bought, i don't know. >> we don't know. >> look, it's an economy it'sing thating th estee lauder is up and ge is down. what does that mean that ge is down and estee lauder is up. it's not necessarily a good sign the banks are doing well

wells fargo which bottomed and i think tim sloan is doing a good job, it's become the bank stock to own here. >> upgrade today at cit i? >> makes sense to me. what's on "mad" tonight? >> i have paul tudor jones. >> nice. >> he's doing this just capital things he's great obviously we'll throw him a question about the stock market but i also have jeff glueck from foursquare anyone's who has participated says who is this saint he doesn't care himself like that i like the guy >> and he's been saying q4 would be a good time to trade. >> good man. >> jim, see you tonight. >> everybody have a great weekend. i got the by week. when we come back, more reaction to apple's numbers. dow is up 90 only half the story?

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the sky ♪ ♪ like a tiger i'm carl quintinilla with david faber and sara eisen at the new york stock exchange. fourth day of serious gains. dow is up 133 despite apple taking off s&ps we have the job numbers and trade deficit. now time for factory orders, let's get to rick. >> these are factory orders for september, up 0.7%, better than expected by 0.2% and 2.6% is the new august which originally was released at 2.3% that's good. take out transportation, very solid up 0.4 and huge revision from up 0.1 to up 0.4 on august. so now let's get to durable goods. these are final reads. durable goods up 0.7 and if we look at transportation, it's unchanged. these aren't bad numbers at all.

durables could be a bit stronger but keep in mind that when we consider the issues going on regarding manufacturing and durable goods, these are very volatile areas interest rates have snugged up, the 30-year bond is virtually at four-year closing high yield levels sara, back to you. >> stocks ticking up ever so slightly as well rick, thank you. our road map for the hour will begin with the jobs boom. october payrolls smashing estimates. wage gains passing 3%. first time we've seen that since the recession. apple shares are down on the disappointing iphone shipment data and holiday guidance. we'll get in-depth analysis of those numbers. and we're watching the overall market the dow is looking for its fourth straight day of gaines as stocks try to shake off the tough october. stocks are mixed following today's blowout jobs number. with the dow up triple digits, best week since february joining us now is michelle meyer, chief economist at bank of america/merrill lynch and

david kelly, chief strategist at j.p. morgan asset management michelle, anything to quibble with in these numbers? >> it checks all the boxes strong headline number, the unemployment rate held at 3.7% but for a good reason in that we got a big increase in labor force to match the increase in household jobs wages ticked up. we're above 3% and wage growth is 3.1%. we saw broad-based job creation as well so the good part of the economy showing healthy growth and manufacturing construction but services looking robust with some payback after last month's hurricane effect so across-the-board strength from today's data. >> david, investors were paying close attention to the wage number looking for signs of strength. we certainly got it. fastest wage growth in a decade. how is the fed likely to see that >> well, i think they'll see it as a reason to keep tightening this is a strong report. it's not surprising we've had to

back-to-back gdp quarters and jobs follow gdp with a lag of one or two quarters. this will keep the fed on track. we have real wage growth for the first time in a long time. that's the reason for the fed to tighten in december. keep tightening in march and june of next year. this is not a good report for the bond market but silt a goitd report for the economy. >> what is in here that gives you clues to a move beyond december. >> well, because we still have rates below where equilibrium is, and we've got wage growth accelerating so equilibrium is when wage growth is stable, when you've got things too strong in the economy that's when wage growth is rising it's nice for workers but the federal reserve has to push against that so this will encourage them to keep tightening and get to a more neutral stance on monetary policy because it's accommodative. they're still feeding this growth in the economy. >> we're coming off of a very

tumultuous month for stocks. one of the worst in years. there were all sorts of calls out there that the economy was slowing, we've seen the peak, some were even talking about recession around the corner. does it quiet concerns to see a jobs number like this today? >> i think it does wherever you have big market moves there's a search for the reason and often times that reason is well, there's hidden weakness in the real economy and the stock market is a leading indicator of that. but that's a difficult conclusion to make and i don't think that was the case in the past few weeks looks like we took froth out of the markets but we're still in an environment where asset prices are doing well and the real economy is looking robust so to me it indicates that we have growth to continue. we should see some slowing into the second half of next year naturally as the fiscal stimulus starts to diminish as the fed has brought interest rates higher so you have summon tear tightening so there's some slowing that we

should anticipate but by no means should we expect a recession is around the corner >> i guess what i'm wondering is where does jobs fit in as far as the leading or lagging indicator. isn't it lagging i mean, if there were to be signs of weakness, when would that show up in a jobs report? >> that's a good point certainly job creation lags a bit relative to other economic indicators however there are labor market indicators that are leading and bun of those is the initial jobless claim. that's probably my favorite indicator to understand the turning of a business cycle. if jobless claims edge higher, that shows signs of stress in the labor market, pickup in firing and that would be an area of concern we're not seeing that. jobless claims held at low levels which is supportive of what you're seeing broadly with labor market indicators. >> it's been said next week's

meeting is a non-event but is there anything in there that might get clues as to what december could bring. >> this should keep a december rate hike on the table but the one thing i would caution people about is we have 700,000 people added to the labor force. that's 1.4% year over year growth so we're seeing a labor squeeze here and one thing i worry about after the election is if we get tax cuts 2.0 or a big infrastructure bill, we don't have the workers to handle that so i think this labor market is tighten iing. i think they're on track to tighten in december. >> i'm watching the stock market reaction here. we're losing steam apple is weak, dow is up 90 points off the highs are we in a world where better

numbers like this foreshadow fed tightening which won't be taken well by the stock market. >> well, if you look at the earnings season, we're up about 29% in year over year operating earnings per share for the s&p 500. that's phenomenal. at some stage i know the stock market is supposed to be forward looking but to some extent investors have to digest how extraordinarily strong earnings are right now and the ability that gives firms to distribute cash so i realize it's been a rough october but i feel that basically the sun is still signing. it's time to make hay in the stock market b . >> buy back numbers for q3 weren't as strong as q2 and q1 they tried to blame it on a fading repatriation affect does that make sense to you? >> it's possible there's been a lot of effort spent trying to time the repatriation flows and how that

filters into the economy to me the repatriation story was smart of the bigger picture for corporate america. i think it was the lower tax rates, probably some deregulation and just general optimism amongst the business community that has been the bigger factor. i think we should be paying a pretty careful -- have a careful eye on what business investment looks like going forward that will be critical to sustained continued growth into 2019 as if businesses are able to continue to invest. >> finally david, a few days into the midterm elections, this just gives republicans and president trump another very strong talking point on the campaign trail how are investors at this point looking at the midterms and where do the risks lie

>> i think the -- first of all, you know the one thing you know that will happen on november 7 is uncertainty will fall and stocks hate uncertainty so after every election there's an uncertain they causes stocks go higher so it's best to be invested before the election to take advantage of that i do think there's a risk -- if you have a republican sweep, i think you may get much more stimulus if you have divided government which is the norm since the 1940s you will get a little bit more of a blocking of the president's agenda maybe less stimulus going into 2020 so more sugar if we get republican victory on tuesday. a little more sugar if we get divided government but either way there's still some stimulus going down the road in an economy that's pretty hot. >> you're saying you'd be buying going in because the uncertainty factor being lifted will help the market >> i think people are getting prematurely nervous because they don't realize how good the earnings numbers are they are excellent earnings numbers supporting the stock

market. >> david kelly, thank you very much, j.p. morgan. michelle meyer, bank of america merrill lynch. good to have you both here on a jobs day. >> thank you. big focus on apple stocks down catching up with the rest of the recent fang weakness joining us is the senior tech analyst at citi. jim takes a target to 240. jeffrey, you go to 185 >> 185 is the number. >> why >> well there are two elements i think earnings per share come down a lot they come down more than consensus. that didn't reflect the higher price phones apple introduced.

when there's less certainty about growth prospects for the iphone the multiples compress sod we took a bite out of our multiple. >> to what >> 13.5. >> jim, how low is too low for a name that's called the last bastian of safety in big tech? >> for us it's important to set the stage. where the stock was up a whopping 31% year to date. for us the pullback is healthy we see the lack of disclosure as the biggest negative today we think apple is held most baby value investors. we see where they're working with governments to open up local stores and to get around

tariff issues. we like the stock but the pullback is healthy. >> why is the lack of disclosure necessarily a bad thing? i cover nike, they told us futures orders were no longer relevant and direct-to-consumer would be a much bigger chunk of the business and futures orders don't tell the story of growth they conditioned analysts and invests or to get away and it worked why isn't that the case here >> well, it's the change in behavior that investors will have to get over that change in behavior was showcasing all the goodness of the units and showcasing those units and how good they are. now when you don't focus on it, people think it doesn't look as good so it's the change in behavior longer term we think this will be a blip on the whole stock chart but we do think it's a near term negative people will say they're trying to hide things as we look back in future courters we think it will be oh, yeah, people adjusted those

expect stations, but near term a lack of disclosures has been viewed as a company trying to divert attention or hide thins.s >> jeff, why is it not less relevant, as the company says? >> well, i do think that the stock behavior is correlated to how units and asps have behaved over time. the unit number has not been the most important thing for the last few years but the asp number has been the big driver of apple's overall revenues. when we lose units naturally we lose asps as well. then i think the other point that apple made is that it is -- i mean effectively trying to turn itself into more of a services company which makes sense and they're making

progress on that but they're not also giving us the subscriber number for us to understand how many iphone subscribers are out there. so i would like to see if they're going to pivot away from units which would hurt but it would be helpful if they gave us more on the subscriber number to be fair they gave us the services gross margins. >> we spent the last few months saying nobody hurt the margin on services. >> that's helpful. it's going to help us understand the gross margin trajectory. >> services were growing 17% on track to meet their target by 2020 how important is that in the overall valuation offing to? >> critically important. it's more recuring in nature as opposed to do you put down a

thousand for a new phone or not? and when the recurring nature of higher margin becomes the bigger portion of the totality, investors are willing to pay a higher valuation multiple. so we're glad they're going give the profitability and disclosures on services so services are essential but near term they're taking a pause because china is now putting in, its government has to approve every app and game in china and right now china is being held with those approvals they were still able to grow double digit growth in services even with the china head winds but services are essential there's no way around it it's key to apple's future. >> fascinating push and pull today. good to see you both, jim and

jeff. when we come back, has dowdupont plans for a spring split into three companies dow chemical's ceo explains what it means for his shareholders. as we go to break, top performing names on the s&p, apple dragging about 90 points out of the dow but the dow is up up back in a moment chasing after short-term returns? instead if getting caught up with the crowd, the investment managers at pgim take a long term view. uncovering opportunities for alpha across public and private markets, while anticipating unforeseen risk, has powered our rise to a top ten global asset manager. partner with pgim. the global investment management businesses of prudential financial, inc.

exxon and chevron tradintra. u.s. sanctions against iran are starting this weekend, jackie. >> it's been a bloodbath when it comes to oil prices. an almost 16% drop over the last 30 days. today's session low is 62.99 a breach of 63, showing technically the momentum industry to the down side. with oil in the low 60s, it's not that far from the 50s. and when you're in the mid-70s no one was predicted you could see a drop like that when the market sees volatility, energy stocks tend to take a double hit the move with the market then if oil prices drag they take a second punch the s&p energy sector is the worst performer over the last month with a decline of 10% and no surprise that the etfs have seen drops of 10% to 20% over

the last month look at these, the xlp, the oih over the past 30 days all red. now things seem to be picking up the stock market responsive to the jobs report and a string of good earnings reports including exxonmobil and chevron that doesn't mean the bleeding is over yet. first, the exxon and chevron numbers are backward looking and oil prices were higher last quarter. oil's decline may not be over. the reality seem to be this sanctions may not upset the market as previously anticipated. more countries they do do business with iran will get the waivers. on wednesday john bolton said the trump administration wants sanctions on iran to strain tehran but doesn't want to harm the countries that depend on that oil you can see we're trading by a quarter percent lower. >> jackie, thank you

jackie deangelis those gains by chevron and exxon helping offset the losses from apple on the dow we'll have more reaction to apple earnings, the biggest loser on the dough stock tumbling this morning. we'll speak with a bear on the stock, alpha one'san d niles he was bet against apple going into the quarter what is he doing now we'll find out next. here.

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apple, the world's most valuable company getting less valuable, the stock is on pace for its worst day april 2016 dan miles from alpha one has been warning against the stock since may. dan, thank you for calling in. you were short, betting against apple going into the quarter what are you doing today >> well, we put on short position yesterday quite honestly i'm hoping it goes up so i can short more but from my perspective -- because

it was nice hearing analysts come out to defend the name because it shows how much lower the stock can go there was very little to like about it they're now admitting to what we've seen from players out there that emerging markets are having a problem that should have been obvious to people coming in but this is a tape where if a stock goes up and it has a nice bye back and warren buffett was buying it people get behind that momentum and it wouldn't be surprise the man out of the emerging markets have a problem those are the countries whose stocks have been getting killed. so this tells me there's more air in this name than needs to come out.

>> people like the average selling price of $793. that was above analyst consensus. lie like the fact that apple is buying back stock and warren buffett is buying the stock as well or has been there's plenty of positives so what has you so sure about this negative bet. >> if you look forward they guide to revenues up 45% sequentially if you look at it over the last two years they've grown 63%. so that's always an issue. i always go with look at what a company does, not what it says they're not doing that because units are doing well if you say okay, let's assume the other segments grow the way they're growing and asps grow up another 15%. if you back into what the iphone units are, you're talking about

down 15% year over year in december i wouldn't disclose that, either so when you talk about service which is is what everybody is bullish on, service are driven off of that base of customers you have and if you're selling 15% units less that base will slow down and that will affect your services business going forward. >> but dan, you know, this thing has never traded at a high multiple when you think about shorting it over the long term earnings may come down. i heard what you said about services but as it continues to move up, a lot of investors will say it deserves a higher multiple as a result of recurring revenue stream from the services. >> as i said, if your units are

down 15% year over year, that will affect your services and the future so that is the first thing. you have to remember, the smartphone market has never had a down year. this will be the first down year in history so the example i would give is look at the pc industry, the pc industry grew last in 2011 and when you hit saturation and people start to replace their pcs over a longer period of time you didn't have any growth in pcs in 2012, 2013, 2014, 2015, 2016, and 2017 this will be the first year pc units have grown since 2011 so if you look at smartphones you have over four billion people on the planet that already have phones they have cameras, a lot of great capabilities, much like a pc in 2011 and what you'll see going forward is that those replacement rates will continue to stretch from under two years

when people replace the phone to over three years and you'll continue so-tto see that move oi time. >> did pcs have such strong price inflation going into the negative year? how much is going to that huge balance and the buyback. >> think of ibm. they've had a great buyback for years. that was the last big tech stock. by the way 2011 was the last year they grew revenues so i'll take the bye back and put the secular trends of smartphone growth going negative for the first time in history and if you have growth going negative that is a bigger issue. those multiples have compressed when the growth rate started to slow down so the asp going is up great but i look at this and go do i believe they continue to

raise asps and not have a negative impact? the guidance has gone ahead so from my perspective that's where the issue comes in. >> apple flirting with the $1 trillion mark still above it dan niles, thank you for phoning in, alpha one capital founding partner betting against apple. >> shares of dowdupont have soared ahead of next spring's three company splitoff we spoke with jim fitter ling and asked what it's going to mean for shareholders when that split finally takes place. here's what he told us. >> the new dow will be a big cash generator we're coming off a lot of investments in the u.s. gulf coast and saudi arabia so our

capex spend will be more than $500 million less than last year that helps as we go into the spins and then as we move forward we'll best on more organic growth this will keep giving money back to the shareholders. >> despite the moveup in the overall share price, will it take the full separation for investors to appreciate the metrics you're talking about >> i think they're seeing the value already. you don't deliver the quarter we just delivered without having all three of those divisions firing on all cylinders and timing is a big deal the sentiment right now has been negative so that drug us down the month of october but we're seeing positive sentiment come out of that and if we can get some markets coming into this, they tend to run at the end of a cycle.

global demand is strong and when you look at the growth for our businesses, 70% of what see goes into goods we had 20% business in china. >> i was at a conference called dream force in san francisco and marc benioff caught someone drinking water out of a plastic bottle and said there are no plastics allowed that the conference the biggest conference in the country. this is the kind of thing i'm hearing, jim no plastics allowed. almost like tobacco. this next generation hates plastic. what are you going to do >> there are 17 u.n. sustainable development goals and you cannot achieve any of them without blast nix economy. the thing people are responding is a waste issue with plastics in the ocean and plastics in the rivers getting out to the ocean.

we can tackle the waste issue but banning plastics won't solve the problem. let's take the zero-hunger challenge. 40% of food from farm to table gets lost through spoilage plastic packaging is doing nothing more than to make sure we can take the shelf life of a product from 10 days to four weeks. that waste will help us feed a growing population how many places in the world have 70% food waste. so if you ban plastic packaging, you won't be able to solve the problem. if you went to glass or steel, the environmental impact is four times what it is for plastics. plastics are the fastest-growing food packaging material because they're lightweight and strong and the most sustainable you've got to ship all that heavier material, you're adding co-2 to the environment. so we have a waste problem and we're working with the whole value chain to tackle that problem.

it's manageable. we can get this done >> not the last time you'll hear a conversation about plastics. dow will be a separate independent entity until april 1 then you have dupont trading separately after that it will be here before we know it but dowdupont having a good week off the earnings we responded to >> up 11% for the week by the way, i want to mention apple here we were watching the $1 trillio market cap apple slipped below that the losses are picking up, down almost 7%. 6.75%. the dow goes negative, down 14 points. >> we're waiting for the updated share count. normally comes out about an hour ago but hasn't yet let's get to sue herera for a cnbc news update >> good morning, sarah, good morning, everyone. the kremlin saying russian

president vladimir putin and president trump will hold a long and substantive meeting on the sidelines of the g2 summit in argentina that begins on november 30. a meeting on november 11 to commemorate the 100th anniversary of tend of world war i will be a shorter one. indonesia's president visiting the rescuers' command post in jakarta. new details about the crashed lion air jet's previous flight have cast more doubt on the airliners' claim that it fixed previous technical problems. more than two million dish network customers nationwide have lost access to hbo and cinemax in the latest escalation of "hardball" negotiation over carriage fees. the dispute marks the first ever blackout of hbo in its history and it comes less than five months after at&t gained control of the channels. the nfl's take a knee controversy took a surprising turn during last night's game between the 49ers and the

raiders. a 49ers cheerleader was standing in formation when she suddenly took a knee. she has not yet been identified. that's the cnbc news update. i'll send it down to you see you next hour. >> sue, thank you very much. when we come back, u.s. job growth surging in october. goldman's jan hatzius is with us for his take on the health of the u.s. economy dow and s&p both red now dow down 41, s&p down nine i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. welcome back to "squawk on the street," i'm sara eisen with carl quintinilla and david faber, live at post 9 from the new york stock exchange. things have taken a turn for the worse. stocks opened higher, at least the dow and the s&p did, though they've gone negative. dow is down as apple drags

exxon and chevron are both trading higher after earnings but technology, real estate, utilities lagging. the nasdaq down more than 1%, digesting better jobs and trying to figure out where trade tensions stand between the u.s. and china. >> that leads us to the story of the day. stocks are losing steam and futures boomed on indication of a possible trade truce between the u.s. and china amman jo ae man jo eamon javers weighed in and threw cold water on that. >> yes, there's no indication of any trade deal with china. clearly this administration would like to cut a deal with china. officials saying nothing is imminent no ratcheted up intensity in terms of talks behind the scenes and pointing to this interview in the "washington times" that the president gave last night hasn't gotten attention but the "washington times" reporting they've spoken to the president and he said he doesn't expect to

announce a trade deal with china at the g20 summit later this month despite progress in talks. the "washington times" quoting the president as saying eventually we are going to make a reasonable deal with china, they want to make it so the president himself telling the "washington times" last night that he doesn't expect to announce a trade deal with china at the g20 that's the time frame where folks in washington has been looking at because xi jinping and president trump are expected to meet face to face but officials saying there's no new intensity in talks with the chinese. larry kudlow told me wednesday there was no intensity in the talks, nothing imminent coming but that there could be a deal in the g20 time frame. now, though the president saying to the "washington times" he doesn't expect to announce anything at that time so that is the state of play as we know it at the white house. >> market moving reporting

eamon javers in washington. job growth growing past expectations, up 250,000 unemployment holds steady at 37. joining us at post 9 is goldman sachs chief economist jan hatzius. welcome back good to see you. >> goodto be here. has trade changed because of anything in the past week? >> we haven't made any changes we would still be looking for an increase in the rate on the last $200 billion that was announced at 10% scheduled to go to 25% we still think there's a probability that you get tariffs beyond that on china we're not assuming tariffs on autos in our baseline but there's a risk of that as well so to us it looks like a pretty high probability that we will see further step bus a lot of

uncertainty. >> what have you made of the recent tone that there is a thaw if you believe the rhetoric from the likes of kudlow. >> it's been going back and forth as you have reported so clearly there are mixed signals and we're going to have to see we haven't changed our baseline case we could see a deal at an earlier stage. >> we saw the jobs market numbers this morning that wage number above 3%, first time we've seen that in a decade does that vindicate chair powell in this public feud that president trump has called between the two? >> i think it's more about what it tells us about the labor market healing and the labor market healing has continued we've been seeing it in employment numbers and unemployment numbers and various surveys and i think the wage numbers was probably the biggest

laggard and that's much less true it's not just the average hourly earnings number but the cost index which showed an acceleration of the fastest pace so i think we are at 3%. >> i guess what i'm saying is doesn't it justify the pace of interest rate increases we've seen from the fed and will continue to do >> i think so. i think it makes sense to normalize monetary policy when the economy is at or probably a little beyond full employment. inflation is at the target there's a big overheating of the labor market which would increase the risk of recession that's what the fed is trying to do they're trying to stabilize the unemployment rate at low levels

in order to reduce the risk of a subsequent recession. >> you've been above consensus in the terms of a number of hikes? four next year >> we have december and four next year. >> in addition to qt, right? when is enough enough is the question >> well, baseline would be that by the end of 2019 you've got on the a slightly tight stance of monetary policy and growth at that point is at a trend or below-trend place and the unemployment rate stabilizes but we have been coming down 3%. >> 3-0 >> 3-0 is our forecast for early 2020 even with a deceleration we've been expecting for 2019 so we think that is enough it could be more, it could be less but we're comfortable with the five more hikes as a baseline. >> will the fed kill off the recovery with these hikes? >> in our forecast, the fed

brings down the growth rate. the unemployment rate stops falling late next year, early this year after but recovery continues. the economy continues to grow but grows at a slower pace because we've seen the cyclical improvement in the labor market that we can sustain pretty much. now the key is to pull off a soft landing that's whey what they're trying to do. >> we're going to have a trillion worth of issuance is there a crowding out concern when it comes to how much debt is going to be sloshing around >> i think it's one reason for expecting further increases in long-term rates as well and we'll see further updrift. now the treasury market is a large, very global, very liquid market so demand for long-term u.s. bonds from outside the united states will continue to be important there are big differences

between where fingerprint economi -- different economies are in the cycle. that will continue to weigh on treasuries, on treasury yields but on net we think we'll probably move up further to the 3.4% or so range. >> we've been through a couple weeks where yellen has been warning about leverage loans the story about high yield getting maybe less receptive how do you grade that on a list of things that concern you >> in general i would say i'm taking the view that financial imbalances at this stage of the cycle are less pronounced than they have been in the last couple cycles in a comparable economic environment and there are some areas of concern certainly. probably more in the -- on the fixed income side and the credit side but i think overall when i look at overall borrowing in the economy and private sector spending relative to income there were some huge imbalances

in that prior to the 2008 crisis but also prior to the 2001 recession and we're not seeing that now the private sector is running a financial surplus when it was running a big deficit that made me very nervous at the time. >> how are you thinking about the big slide we saw for stocks in october is it related to the economy or not? >> it's always somewhat related. i think it was partly driven by the rapid increase in bond yield that you have in the weeks leeting up to that but there are a number of factors, i focus on potential consequences it's a reason to expect growth in 2019 is lee isser but it hasn't led us to change our fed call because we think a sizable deceleration is required because right now the economy is growing 3.5% and potential growth is probably 2% or less so it's going to take quite a lot to

stabilize the labor market and we're not there yet as today's report shows, i think. >> wish we had an hour with you, jan. when we come back, shares of starbucks soaring today, up more than 10% what the ceo kevin johnson had to say about company sales and revenue growth on this show. and getting another check on the major averages at this hour. still red across the board nasdaq is wndo a percent nasdaq is wndo a percent dow down 60 points banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. a matter of following the signs. they all lead here. cme group - how the world advances.

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midterms are around the corner find out wt hato watch for on trading nation.cnbc.com. more "squawk on the street."

only one sto two percent of the ticket comes from price, the rest from premiumization or tax. we are pleased with the mix we

saw this last quarter. of the four points of comp. in the u.s., three points was from beverage and that's a very good sign. >> that was starbucks, kevin johnson, talking with us the company reported better than expected earnings. stock up to an all-time high today as he talked about the difference between traffic and transaction. kraft heinz disappoints. cramer had words for them today. >> he certainly did. kellogg yesterday margins well below anticipated. very difficult time in terms of getting it right for the taste of the emerging generation >> there are some success stories in the script. >> i want to keep landing. >> i think at this point you have to say it is an individual company story, right >> blame them. >> blame them and not the overall weakness in food that's been troubling all these

companies. some are doing a better job than others, turning it around, creating enthusiasm for the brand. i point to procter & gamble and coca-cola that had good quarters >> the whole execution debate applies to texas instruments and semis, 3m and macro. fighting it out whether they're doing it wrong or are in the wrong environment. >> they rely on acquisitions we talked about it a long time after the unilever deal, as opposed to what you're talking about. >> trying to grow again. >> awesome sales growth. worst performing food stock. as we head to break, and that's for the year look at the market s&p 500 dipping into negative

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in highs for the dow financials are the best performing group walmart sued alleging breach of contract with the retail giant back downtown to you guys at the exchange coming up later, see you on the "closing bell. following the big reversal in stocks russ koesterich at 30 :0p.m. "squawk alley" is back with the dow down 42 points we get to spend it - our way. valerie: but we worry if we have enough to last. ♪

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