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good friday morning, welcome to "squawk alley," i am carl quintanilla with morgan brennan and jon fortt has the morning off. the rally hasn't lasted until now. the dow shooting for four straight days after a rough month of october bob pisani is watching the action, joins us at post 9 this morning. what are you watching? >> here is what's important. look at this point of view what would help the markets into the end of the year? what factors would move things forward? there are three things that matter three things we have been hitting on the last month. number one, some indication the fed is not on an aggressive rate hike path as some traders fear, not one in december and three or four next year, something less than that. it is hard, 3.1% wage growth, they're in a bind. they have to go ahead with this. the fed is boxed in. there's one avenue for help for the stock market if you're a bull, what is left two other things number one, get some better

global growth. but we're not getting that you've seen the data all week from europe, pmi numbers from china. we're not getting help from europe and china on the global growth story what else is left. the trade breakthrough, at 1:50 a.m., futures exploded on the bloomberg report take a look. nothing is happening at 2:00 a.m nothing is open and the world blows up come in in the morning at 5:00 a.m., what the heck happened that's the trade that's the marginal mover of the market on the far right, that's eamon javers came out, and look, it has been slow decent downward from there that's the marginal mover, that's the wildcard nobody can get their hands around. >> i want to tease this out. sounds like what you're arguing is why we have gone lower is not

necessarily apple but the jobs report and china trade. >> those are the two most important mover in the markets third is the global growth story. i don't think we have a lot of news on that today great if china numbers picked up i mean, economic numbers, not trade negotiation numbers, picked up a little, that would be a lot of help to the market that's not happening though. we have to deal with the cards we've got. you see the cards. it is trade that's moving it now. the fact that the fed is boxed in. >> all week long hitting buy backs. >> yeah. and i am waiting for final numbers on apple we will get the 10 q out later on i believe apple bought back close to 20 billion in stock, 19 more accurate number, as well as $4 billion in dividends they handed out apple has $62 billion in buy backs this year. that's a remarkable number by end of the year, probably $82 billion in buy backs to give you a sense of that, that's 8 to 10% of all buy backs that will

occur, not announce, actually occur is apple and the important thing is, those buy backs, the corporate buyers are the nominal buyers of the market, the most important thing in the market in five or six years. more important eft influence, a lot of inflows because people take money out of mutual funds and putting them in efts corporate buying has been really important. and i guarantee you the market would be lower if we had no corporate buy backs in the last knife yea-- five years. it would be lower than now. >> you say marginal buyer, that's what you mean. >> the people coming in making a difference in the market >> and you are one of the first to report this should we talk more about midterms do you think that moves markets next week? >> i have been watching all sorts of notes, people saying we're concerned when the democrats take the house, that's

the consensus now. i keep saying how is this going to imperil tax cuts. the bulls argue we are worried, they want to make tax cuts permanent. that may i mperil that. i can't imagine a situation where the democrats reverse economic changes we have seen, unless the senate flips. i think the trump xi meeting is important on november 30th >> good stuff. bob pisani. apple down as much as 7% after earnings outlook disappoints, based off the recent share count we expect to be updated, and even as we speak, the company announcing it will no longer provide unit sales for iphone and other hardware products. joining us, gene munster

going on sale today, you were optimistic out of print, does the disclosure change your mind, change your view >> it does in the sense it takes four quarters to investors to accept the new reporting methodology. what apple is trying to do is direct investors, so that's the negative, carl the positive is ultimately the new methodology is very good for apple stock and what it does is promotes a concept of apple as a service, not talking about services segment, talking about hardware and services and the whole business operating with more predictability and higher margins. by focusing on two metrics that matter most, revenue and earnings, that should advance that cause and should be a positive for apple's multiple. >> mike, i want your thoughts on the fact they're moving away from breaking down the shipments

moving forward seems to me this is part of what investors are reacting to today, more than say guidance, is that to take some of that information away, the read through there, maybe it is signaling you see shipments going negative and they're not going to be disclosing that? >> yeah, so talking to investors today, you'll see some short term multiple compression from the change in disclosures. any time companies change disclosures, it tends to take the multiple down in the short term we think in the long term it is positive for apple over time also if you look at apple on our modeling, they have over 700 new iphone users, doesn't include the base that buy refurbished phones in that base we have seen decline in replacement sales we think apple sales are stable over time. we expect limited growth in the next three years, but where else do you see a company can raise prices in this environment and sell over 200 million units.

we see good earnings, cash flow generation we think the dip today in a stock is a great buying opportunity. >> gene, are we getting close to a potential ceiling on asps? what does it do to units down the road as dan niles explained in the last hour, what does that do to services potential >> i don't think we are, and part of the reason we're not close to the ceiling is that narrative has been around since the iphone 6 came out. it was the first large step forward. then iphone x came out, there was suspicion can they absorb that last year, most expensive, best selling. we have seen that in the up take of expensive phones. at the end of the day, even though prices are increasing, the utility is great for consumers and they recognize that, and to your point on the

services segment, what investors are going to hone in on is how service margins progress they did talk about more disclosure on giving profitability on services, so i think that the grade investors give the apple services segment will be predominantly driven off profitability which should be a slowly rising trend. >> mike, comments about uncertainty around supply and demand balance, what do you make of that? >> i think it is apple watching many products, can they make as many as they want to meet demand in the short term. that's part of the cautious guidance fx, emerging markets are things to track and impact to guidance. watching so many products as they get up to better supply, should start to see some component prices easing flow through with gross margin expansion into 2019. we think with just looking at apple's installed base, you'll

see steady iphone sales with better prices driving margins higher. >> gene, you were probably asked about the china guidance on the call what do you make of that and services at 17, i mean, a lot of what we are seeing in the bear case is about service deceleration, deceleration in app down loads a lot of that is china centric >> what they talked about is part of the weakness, they gave four reasons for softer guidance guidance was 2% below the street for december the fourth reason was emerging markets, but quick to call out that china was still an area of some strength. typically these larger form factor phones ultimately do better in china. so i think that's driving that on the flip side, you're probably seeing the services typically don't have the same up take in china as they do in other parts of the world so there's a little give and take the key take away to china is still a critical segment for the

company, has shown for the past three quarters improving overall results. >> all right watching apple subtract 100 points from the dow at this point. long day ahead still thanks, guys see you soon >> thank you when we return after the u.s. economy saw an increase of 250,000 jobs in the month of october, we'll tell you where tech and faang stocks are seeing the most growth why amazon is hiring but facebook is not. mark may is here to break it down for us next dow down autbo 45 points more "squawk alley" after the break. 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. u.s. economy added 250,000 jobs in the month of october steve liesman with a closer look at the numbers good morning, steve. >> hey carl. turn it sideways, shake it up and down, you're left with a strong jobs report with very few holes or weaknesses. the only question, can the momentum continue. carl told you 250, didn't say the expectation was 188. adp had a stronger numberer, so did my jobs model. average hourly wages, i will talk about that. up 0.2%.

unemployment rated unchanged lot of people came into the work force and found jobs labor force participation, 62.9. look at the chart, 3.1% year over year, first time we topped that 3% mark since going back to 2009 and the question is how the fed will look at it. rsm says, quote, the primary narrative with respect to labor market dynamics will be wage growth and the ability of firms to manage a strong u.s. economy. look at where the jobs are you see a lot of industries had good growth. leisure, hospitality, i saw a snap back from the hurricane in september, adding jobs in october, but not seeing a whole lot of falloff in october from hurricane michael. manufacturing is strong. construction doing well. maybe a little hurricane effect.

otherwise, transition, warehousing, 25,000. at oxford, they're saying encouraging readings suggest very little slack left in the labor market i think that's how the fed is looking at it. it will be a concern how low does it let the unemployment rate go before leaning back against this momentum here's what the market says about that 76% probability for a rate hike in december. first quarter point hike of 2019 is estimated for march and the second one for september, we haven't been over the 50% mark as we are now that number is 49.8, round it up for simplicity fed gets one more jobs report before december, in the absence of pronounced weakness, a fourth rate hike is a done deal, morgan >> steve, before i let you go, you mention the word slack i want to dig into the labor participation rate it ticked up last month. if you see more and more

re-enter the work force, could that ultimately change fed policy >> i think that's one component of it. you think about it, you have people coming into the work force, and that's in part a function of higher wages attracting people back to the work force if you have the wages going up commensurate with a combination of inflation and productivity growth, that's not seen as inflationary janet yellen and i am pretty sure jay powell agrees, if you had wage growth 3 and 4%, take 2% inflation, 1% productivity, that's not inflationary. they'll watch that labor force participation but that's not an absolute trigger >> steve liesman, thank you. >> pleasure. closer look at faang stocks and where silicon valley is hiring mark may joins us here at post 9. mark, happy friday >> happy friday. thanks for having me.

>> you put out a report looking at hiring data among the tech sector what data are you analyzing, what's the read through for investors? >> we're scraping the job sites of all companies in the internet sector for a sense of pace of job openings through the year. business units in which they're hiring and to get a sense, it is a predictor of expense growth which is an important theme within the internet sector this year, right? facebook hiring tens of thousands of people to scour the site, to protect the community on that site obviously amazon preparing for the holiday season is hiring workers for warehouses, hiring k couriers that's the data we're looking at amazon is the largest employer in the space, employing well over 650,000 people, much of them in the u.s., next largest

is alphabet which has no more than 100,000 employees, and goes down from there. particularly paying attention to what's happening with amazon >> is the lead that amazon is pivoting to robots over humans >> i think that's an important theme. we have seen acceleration in use of robots within the fulfillment centers. that has corresponded with fewer and fewer workers that they're hiring around the holidays we saw a jump two years ago in the amount of robots used. in 2017 it was the first year we didn't see increase in temporary workers hired which was 120,000 last year during the holidays, flat from a year ago and now they announced only hiring 100,000 first time on record they'll hire fewer this holiday season it corresponds closely with use of robotics and automation within their facilities. >> nasdaq down 1% again now. a lot of names actually moving

lower. given this data, given your broader research on some internet names, what do you like now? is there anything you would buy on the dip we have seen? >> amazon is our top pick since january, my number one or two since january of 2015. i like how it is trading as well some data, going back to jobs report, they're going to grow head count about 13% this year that's down from 35 plus the last two years it is reflection of the capital investments they've made in the business in the last two or three years, both in warehouses and robots, making them more efficient. amazon is my top pick here i think was it a perfect quarter? no were there a few things? technically they missed the top line by 1% we talked about it last week i think if you dig under the covers a bit, you find the core business is doing quite well so i still like amazon

>> going back to your job data, what's up with facebook hiring and what does that mean for margins? >> this is not a new thing facebook hiring is up over 40% this year. in the latest report from october, actually hiring has slowed and dipped month on month. we are watching that one month doesn't make a trend, but in the earnings report that we just got they did come in a little lower on cap ex, issued favorable guide anlance maybe this number on hiring is a signal we may see peak expense growth in the next six months. >> given what they said about the coming years >> when you hire this many people, takes awhile to flow through the p and l. one month is not a trend, but given the cap ex guidance next year, given seeing slowing in the second derivative rate of hiring, there's line of sight

over the next year, expense growth should start to slow. makes us feel better about margins as you get in the back half of '19 into 2020. >> the walkouts at google, do you think that has impact on the economy or employee force longer term something to watch for investors? >> always worry about cultural rift inside our companies. last time way on, talked a little about china and how there are a lot of folks inside google prefer the company not to go into china obviously the issues being protested the other day are important, definitely pay attention to those one of the positive take aways is the ceo at alphabet seems to take a very public and supportive approach. makes us feel good. >> of all names you covered, not many of above the 50 and 200, not many the best gainer for the quarter or month, x red hat. but twitter is

is it expensive or not >> i think it is still too expensive for us ultimately with the media companies, user growth matters the audience needs to grow on the program for you to keep growing. that's a primary driver of growth for twitter, that's an issue do they have some opportunity to expand monetization of users they have? yes. but they need to grow the user base more consistently that's a function of product improvement, innovation. that's something we haven't seen enough of at twitter i think part of it goes back to the turnover in senior leadership at twitter that's been part of their story since the inception of the company starts at employee retention to product innovation, development, drivers user growth. that's kind of what we need to see. >> brings us full circle on this entire conversation. mark may, thank you. great to get your thoughts >> thanks. two earnings movers going

different directions alibaba and starbucks. all-time high for starbucks. all-twe started making and. in 1948... change what they said about that and trade when "squawk alley" trade when "squawk alley" continues. they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers.

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go team! [ snow crunches ] [ loud crunching ] this is the loudest snow i've ever heard in my life. two big earnings movers to t to between alibaba and starbucks. they talked about the impact of the china u.s. trade spat. take a listen. >> nobody wants to have a trade war. that's because china and the united states are very symbiotic in terms of the economic relationship china imports $165 billion from the united states in goods and that's not counting another $40 billion in services that the chinese are buying from americans. there are 68,000 american companies doing business in china. annually they generate about $600 billion of revenue and $40

billion of profits so if that all gets shut off, i think you'll see that reflected in the stock market in the united states. >> meantime, starbucks on a tear this morning, reported stronger earnings and same store sales growth stock at an all-time high. kevin johnson talked about his relationship with alibaba and the company presence in china. >> our alibaba partnership is just getting started we launched delivery in beijing at the end of september, by the end of the counter year, we'll be in 2,000 stores doing delivery and partnership with alibaba in over 30 cities, so we continue to expand in terms of new stores, in terms of offerings for customers, and into new cities throughout china. >> went on to say in north america, of the four points of comp. here, three came from beverage, which he thought was obviously a very good sign. >> two words, especially in terms of north america, cold brew

saw it with starbucks and dunkin' donuts it is iced coffee that's stronger and has a little more caffeine, it is lifting earnings for the company. it is amazing. the other thing that got my attention about alibaba, two things first, the ad business, that business seems to be slowing in terms of on platforms, and they have more competition from other domestic tech companies in china, that's weighing on them as well, and also the growth in cloud. we had guests on this show in the last couple of days that said talking about cloud and who's going to be dominating, you have to include alibaba in that conversation. i feel like those results reflected that today. >> cloud revenue up 90 at baba huge number. let's get to sue herera for a news update. >> good morning, morgan, thank you very much. good morning, everybody. here is what's happening at this hour russian president putin meeting with cuban president in moscow for talks on expanding economic

ties between the two nations they called on the u.s. to withdraw from a nuclear arms treaty. brazil president elect says that he sees no problem moving that country's embassy from tell a fi a evolve to jerusalem. a massive fire that destroyed hundreds of stores at a market in central kabul is still smoldering more than 12 hours after it started the fire consumed more than 600 businesses, causing millions of dollars of damage. luckily, no reported injuries. a federal judge in boston scheduled to hear closing arguments in a highly publicly sighed lawsuit alleging harvard discriminates against asian mernl americans, reigniting a debate over affirmative action. morgan, back to you. >> sue herera, thank you up next, an earnings beat

and guidance the stock is down almost 7%. more "squawk alley" still ahead.

welcome back josh lipton speaking with tim cook following the company's earnings he joins us weith some of the

comments >> apple beat on the bottom and top. the average price crushed estimates, suggesting strong demand for the xs and max. it was beyond expectations, you can tell by the blow-out quarter we had on the other hand, apple missed on iphone units and guidance disappointed investors tim cook saying he is dealing with tougher comps, and head winds, and it will take some time to get into supply dmanema balance. some emerging market have weakness cook calling out turkey, india, brazil, russia the stock was already under pressure then the surprise announcement on the conference call took it lower. >> starting december quarter we will no longer be providing unit sales data for iphone and mac.

the number of units sold in any 90 day period is not necessarily representative of the underlying strength of our business >> now, analysts are divided on the decision some question whether apple is trying to hide unit declines going forward. others are not as worried, they already didn't expect much iphone unit growth from here, instead they're focused on services where apple will provide more data going forward. clearly this morning investors disappointed with the print and guidance back to you. >> watching the levels closely, josh thank you for that. despite the drop, our next guest is bullish on the shares apple does remain the firm's largest position let's bring in david wolf, chief investment officer of wenchwood partners good to see you. we have been around the block with people on the disclosure stuff. what's your take >> i'm surprised they didn't do this a year or two ago it has been very difficult for apple's management to get away

from the narrative of what's the next quarter what's the units on the iphone, quarter to quarter, and they would much rather talk about totality of the ecosystem, the total installed base, and they had to do it sometime, and they did it and it is a surprise and wall street needs to adjust we have been pretty spoiled. not only did we get the units, we got to channel fill as well so apple's disclosure literally was unprecedented, but i think it is high time. >> but david, isn't more information always better? as an investor, as you personally are an investor in apple stock, wouldn't you want to know everything you could know about the financials on a quarterly basis? >> absolutely, morgan. the more information, the better but that said i think there is

this reality that apple has been a hardware company, a hardware multiple, they have been trying, you know, every which way to try to change that narrative to more of this incredible ecosystem and software services and the new information we're going to get is software margins and those are going to be really clean gap numbers. and we have been told those are better than the overall company average. that might be a pleasant surprise going forward, but old habits die hard on wall street analysts are going to be in for a period of adjustment >> yep a lot of them are shell shocked today. it has been said on air they don't like change. are you at all concerned one of the complaints of the morning is asps are not driving gross margin up side are we hitting a level where people are unlikely to pay more for a phone? >> interestingly enough they

have been really pushing the upper end, and there seems to be plenty of demand on the high end. and i think there's room to go it looks like people are certainly paying up for the latest, greatest features. i think the opposite may be occurring, carl, that the very low end is really weak, weak and emerging markets and don't forget, there's a gray market of hand me down phones that's maybe keeping the low end pretty soft, so the iphone tail is a tail of two different realities. getting back to the thought of give us the unit numbers, and let's have that discussion yeah there's two different dynamics going on i think they have room to push on the upper end >> david, you're also invested in facebook, alphabet, to name a few. do you think there's a shift happening in terms of how investors should be assessing and valuing companies now? case in point, facebook,

twitter, seems to be less about the user growth. here with apple, less about shipment numbers >> yeah. i think this has been a key here, i don't want to overplay, maybe a seminal year you think about big holdings and the change of the narrative at facebook, even the change of narrative of amazon. and a lot of the stocks are part and parcel of hedge funds, and those pools of investor capital that have annual performance backing upholdings think about this on apple which is interesting just a month ago, early october the stock was like 233 the stock was up almost 40% year to date. into print yesterday, up 31% year to date if the stock closes at 202, 203 it is only up 19 or 20%. these stocks are probably in the penalty box the rest of the year, i think apple certainly

is, so the narrativeshave changed, the stories have changed, and the sector has been extraordinarily crowded and that's why we're seeing the volatility >> before i let you go, given the penalty box, would you be a buyer or seller or holder of apple shares now >> we're certainly a holder, up to our gills in apple. our largest position 9.3, 9.4 weighted position in the portfolio. for those that don't own it, give it some time. i think shares will come in. in the next month or two, there will be people trying to book year end performance in apple, and i think shares will be weak, but let the company and mr. buffett buy more then. >> david, we always love your candor on it, especially as a shareholder. see you soon >> thanks, carl, thanks morgan still to come, advice for

mark zuckerberg. first, rick santelli, what are you watching >> the bids were busy after the number, now they settled down. we talk to former chairman of degege. shl on economic advisers unr or wbu with some surprises in today's employment report. we'll hit them all after the break.

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it is now time for a special santelli exchange on jobs friday let's get out to rick santelli

at the cme rick >> well, thank you and i would like to welcome ed lazear i always look forward to talking to you after all the big employment reports this one was big real quickly up two-tenths on employment to population and labor force participation rate i always think those are super important. we are drawing people back, forgot or stopped counting, wages was strong give me your impression, ed. >> great well, i'm glad you said we're drawing people back because i think that's the most important point. think back a couple of years ago, people were saying oh, you know, this is a structural problem in the labor market, no way we're getting people in here that was wrong they were 180 degrees off and we're seeing it now. you mention employment to population ratio, it is high actually since the recession and i would say we've got a little bit more room to go on that, but not much we're getting pretty close to the peak, it is looking pretty

good still a bit more room. the way we know there's more room is something you and i talked about a lot in the past and that is that if you look at job creation and look at that relative to number of jobs necessary to keep up with population growth, we're still considerably above that. the last three month average which is what i look at was 218. population growth, you need somewhere in the 130s, so we're still in recovery mode hard to believe, but we're still recovering, and that's good news because it means the economy is still on a strong, positive track. the obvious thing you talked about earlier, i listened to you this morning, was the wage issue. and of course everybody is both excited and perhaps a little concerned about that i'm not concerned and i'll tell you why i am not concerned to me the most important thing you want to think about when you look at wages is what's happened to productivity. if you look at productivity in the past six months,

productivity jumped up to now slightly above 2.5% from a number like 1.2% during the recovery so we're considerably up from where we were. productivity maps directly into wage growth later on so that's good news. it is not surprising wages are growing. they're reflecting growing productivity workers are getting their share of it. >> the big question is let's cut through it all there are many smart people out there that monitor the same smoke signals the fed monitors to see inflation, even though some of them, all of them actually are elevated, the question is will they really push through the neenvelope and spill into the economy as large. just because wage pressures are forming doesn't mean that transmission is going to occur anytime soon, and that's a hard issue to grasp for many investors, so they get trigger happy on the wage numbers.

can you define that for me, ed >> absolutely. again, the easiest way to think of it is this. wage growth that matches productivity growth is not inflationary if output and wages grow by the same amount, you're not putting upward pressure on prices because you have output there to match wage growth that's going on so the question then would be when should the fed be alarmed the fed has a notion of a target rate of 2%, whether you like it or not, that's their target rate if you said well, 2% added to 2.5% productivity growth, we would then be saying gee, we could afford 4.5% wage growth and still not be putting upward pressure on prices beyond that which the fed would allow, so that's how i think about it. as long as we're within that range, we're still not seeing

upward inflationary pressure i want to come back to something you talked about earlier, rick i know you do believe in the fed's approach to normalizing interest rates and that i think is an important point, so they are on a trajectory to do that, but the reason for doing that i would argue has nothing to do with wage inflation, it is simply to get back to normal times and to normal interest rates. >> insurance i call it insurance, ed. and i couldn't agree with you more in my mind previous fed chairman or chair women waited too long and i understand why they didn't want their fingerprints on reversal of stimulus before they thought the economy was hitting the ground with its legs moving the problem with that notion is i think we have fallen behind. you can talk about data dependent and a lot of issues, but the idea that we are in a range of over 2%, where other economies, big ones in europe and japan are in the infancy of

true normalization, i think it is a price war pain if they went up in too short a time frame what should happen if we get a surprise recession in the negs -- next months, which i don't think they will, where do they jump start an economy loaded with stimulus from the last crisis >> it is a couple of things. it is the point you made about the stimulus but beyond that is something that i know you focus on a lot, capital flows. and capital flows are effected by different interest rates between the major economies. obviously ours and the urn and japanese economies, and so we're sucking in money now because the real interest rate is higher than their interest rate and that is not fwogood for the economy if they hit soft spots if i were in their shoes, that

would be a concern i had as well, and i would be thinking of trying to get on a more normal path pretty quickly. >> excellent ed lazear. thank you. i liked your answer on wages versus general inflation a plus in my book. can't wait until the next first friday the first friday of next month we'll go back to carl quintanilla. when we come back, evan spiegel, only some of the high-profile guest that is joined andrew with the deal book conference yesterday why several ceos used the platform to talk about-face book andrew will join us with highlights in a moment the dow is down 140 now. ppbig chunk is ale s&p down 22. here.

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i am a techie dad.n. 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. a few names andrew ross sorkin talked to yesterday at the deal book conference talked about-face book from wayne blankfein to the criticism of the platform take a listen. >> it's worrisome and bothers all of us on the board spending time making it better they've made a lot of changes. it's a complicated thing to get right. >> the body politic resents that and finds mechanisms for

curtailing that and maybe it's a good thing for the rebound >> they have created an environment where that behavior thrives. >> google addressed the walkouts taking place yesterday over office misconduct. >> we don't always get it right. that's partly why today is important. i think a concrete step is coming out for me i want to acknowledge those who step up and do this. it shows courage and it's a process. i'm committed to doing better and i want to make sure google sets the bar >> after the remarkable pictures andrew did give pichai props for

showing up saying he could think of a lot of executives who would have canceled on him >> a place of transparency, that he would support his employees want to have a walkout speaks to that part of the culture and why folks will not necessarily leave their jobs there >> as for zucker board, they were talking about him and what was written this week, he is all powerful, in a sense he answers to virtually no one >> isn't it interesting that snap is basically doubling down that it's not a network on shares and likes where there's so much focus on misinformation being spread >> a fascinating deal book

we don't know how andrew does all of those in a row. >> amazing the dow is down 137. s&p down 22. we're keeping an eye on bonds here the ten-year approaching 3.20. "squawk alley" is back

welcome back we'll take a look at shares of apple today after those earnings after the bell last night, down about 6.5% on pace for the worst day since january 2014, even just a few moments ago dipped below that trillion dollar market cap level. we are waiting on an updated filing with updated share count. meantime elon musk sat down for a podcast posted this morning. the future of tesla, short sellers, going private and his twitter habits take a listen. >> i guess i sometimes use twitter to express and that's a weird thing, i suppose >> not so much sometimes it's funny. >> some people use their hair to express themselves i use twitter. >> they also talked about space. kara will join us as she usually does this monday with more from that interview

>> fascinating, short sellers, things he could take back if he could. it was a great conversation between musk and kara swisher. apple is taking about 105 points off the dow which is about as much as we're down and another busy week of results, the fed meeting next week as well. >> midterm elections, earnings >> get some rest let's get to the judge i'm scott wapner we are following two big stories this hour. apple shares sinking and one of our own debunking a big story on trade, stocks are moving on both developments with your money right in the middle. it is noon and this is "the halftime report. reversal on wall street, what's really being done to avoid a deepening crisis with china? and how will it move the market? plus, how far did the apple really fall from the tree? top analys