it is 5:00 a.m. here in new york here is your top five at 5 asia falling again overnight iran's president says he will defy new u.s. sanctions and sell oil around the world amazon's hq2 the tech giant reportedly one step closer to aiming a second home warren buffet betting on himself. berkshire hathaway bought back its own stock. 24 hours and counting. we'll let you know how the balance of power could impact your money it is monday, november 5th,

"worldwide exchange" begins right now. all right. good morning and welcome from wherever in the world that you may be watching. i am brian sullivan. it is nice to be back with you after last week's wild ride, stock futures here indicating the likelihood maybe of another possible drop. the nasdaq is higher let's just call that flat. remember, despite that wild volatility we actually ended up on the dow kind of hard to believe. with that, the ten year yield a little lower right now it's quietly crept back up to the 3.20%. 3.25%, the yield number, everybody starts to watch, worry about interest rates and the markets. worldwide in asia, it was a decline. you can see a lot. that's the bond yield. china and japan falling. let's get to that. china, down 1.5%

the hang seng down 2%. shanghai held up okay just down .4 of 1%. a lot of red in asia our futures a mixed trade. let's wrap this whole thing up because there is a lot going on. joining us from london is daniel morris, senior investment strategist at asset management daniel, i think what's kind of hard to believe and why we eluded to it at the top of the show is despite all of the volatility, the dow did not have a terrible week. united states is outperforming much of the rest of the world. what is bmp's view in investing in u.s. equities right now >> well, currently we're over weight development market equities we don't have a regional bias at this point clearly i think the key driver for the performance of u.s. markets is going to go back to technology certainly that's what had led us all the way up over the last couple of years. really is what led the u.s. market down and now back up. so i think that continues to be the bellwether, but now that

valuation certainly more attractive than they were at the beginning of october we do think they do look interesting. >> they do even with the fed that is likely on a path for higher rates, daniel >> well, certainly that's the challenge that we're going to face we believed for a long time that the fed was going to raise rates between now and the end of next year even with that view still we're overweight risk assets the concern is the market doesn't believe that fed futures quite skeptical about where interest rates are going to be at the end of next year as the market comes to realize that it's going to do what it said it's going to do, i think we're likely to see another bout of turbulence. ultimately if that increase in rates is because growth is good, which we believe it is, that's going to be good for equities. >> even at 3.25 or 3.5% on a ten year assuming we get there, daniel >> well, we think we certainly

will it's still relatively low. inflation we think is going to stay contained and very important in terms of our cautiously optimistic outlook as long as it doesn't excel ler rat - accelerate on the margin when the real interest rate rises that can create problems in the short term we don't think we're at a level where it poses a problem with the u.s. stock market. >> live from london. daniel, we appreciate it thank you very much. beginning today the united states is reimposing oil and financial sanctions on iran. secretary of state michael pompeo and treasury secretary steven mnuchin will release details at a news conference scheduled for 8:30 a.m. eastern time u.s. lifted sanctions under a 2015 nuclear deal. iran's president says he doesn't care

he's going to defy the u.s. sanctions and he will continue to sell oil. on friday the trump administration said that it will grant wavers allowing some countries, like south korea. we're at 72.80 on present, 62.99 on wti the biggest story is inventories. joining us is daniel tannenbaum and helena kroft i love this. it's like we're going to hit the story from all sides literally you're going to hit me from both sides here daniel, first to you it's getting a lot of attention. i'm not trying to take anything away from the story, but these are kind of second tier sanctions. how much is actually changing now versus friday night? >> it's important. i mean, the sanctions that were lifted in 2015 were secondary sanctions. those were sanctions that the u.s. imposed that forced a choice for foreign countries to

choose between doing business with the u.s. and between doing business with iran there will be a focus on this where the u.s. can banforeign entities from doing business in the u.s., freeze their assets in the u.s. if they're found to be doing business with the iranian entities the enforcement is significant because the track record finds to be upwards of $9 billion. >> were they doing business before >> so most major financial institutions were not doing business before. even after the sanctions were lifted because of most major global banks being penalized at one point or another for ofac violations, very few touched the business it was smaller regional banks across europe and the middle east that actually touched the activity so for the most part, no, but industrials had obviously moved in the oil and gas sector moved in. that creates a different issue the financing and underwriting from an insurance standpoint is a different issue. >> outside of oil and gas, we're

telling companies don't do what you're not already doing >> essentially. >> let's go to the oil and gas side rohani is saying, trump administration, we're going to sell oil. >> they're going to continue to sell oil the question is quantities you mentioned south korea. they're already almost out of the business from iran there are eight countries that are going to be granted the exceptions to import even china may get one of these exemptions because it's made some reductions in the iranian import it's not trivial by any means the amount of oil that's come off the market. >> why is oil at 63 bucks? >> i think because we hear wavers people think it's one and done and trump is not going to go any further with this but if you look at the rhetoric, they say over the next 180 days these companies are going to have to cut again. your point was so spot on.

not only are you going to be able to import the same quantities, it will be harder to shich it, it will be more expensive to insure them. >> we know most major insurers don't insure shipments. >> are you going to need that? >> if you think about it, a tanker that's holding oil needs to be insured in case of an unforeseen event. >> iran has always done things its own way. a shadow insurance market if you know what i mean. >> i don't know about the shadow insurance market -- >> maybe not pirates but you get my point. >> the pieces that you need to operate global trade have gun re-evaluating their risk management views, whether it was in the insurance space or banking space. it makes it more difficult. >> iran has their own tank beer fleet. they're going to have to use those tankers and export oil

i think the market is being way too sanguine about the situation. it will be harder for iran to place the bairls and this is just beginning. >> we've seen saudi arabia pump oil. >> russia. >> russia is pumping more. i guess partly because they assume the iranian barrels are coming off but if they don't come off or at least as much, somewhere in the middle where the market thinks you'll have too much oil. >> this is interesting if you had said that a million barrels of iranian oil would be off the market, you would have questioned it. the question is going forward, nigeria. if they have problems, is there enough out there if the administration pushes forward with further iranian reductions, that will put a lot of measure on getting the u.s. bottlenecks cleared up we are in a situation where opec has responded. going forward it will be very

interesting to watch how this balance plays out. >> the onebig variable that's still outstanding, there haven't been penalties levied for the khashoggi murder if the administration doesn't act post mid terms then congress will acts. go the point of waiver -- >> correct but it's how does the market interpret what the sanctions mean versus what they think they mean be. look to turkey the sanctions were against two individuals, not the entire country, and look what it end bed up doing to the economy. saudi is obviously in a very different place. there could be a misunderstanding. >> here's the problem. if you tell somebody not to do something and they keep doing it, eventually you have to step up or step back. if rouhani sells oil, if he defies the sanctions, what's our response >> the important thing, money for these oil transactions, at

least in the -- >> what is the irgc? >> the revolutionary guard, they won't be able to benefit for the money paid for these sanctions so the wavers are a somewhat good thing because they force legal trade of iranian oil and ties up the money. >> to a few markets we can help. >> again, i think the whole point is going forward, rouhani hands out oil now but 180 days from now this whole discussion with the issues taken this is not one and done i think already 1 million barrels are reportedly off this market this is the u.s. acting alone. so, again, if they want to further drive these barrels down, they can do that >> i love having such a smart discussion especially at 5:11 a.m. eastern time. it was a real pleasure

we appreciate it now to your top corporate story. amazon reportedly getting closer to selecting a home for its hq2. second headquarters. frank holland with the story. >> reporter: amazon has narrowed the field for the second headquarters they have held advanced talks to locate it in crystal city, virginia just outside of washington, d.c. there are talks about which buildings amazon can occupy. talks are remaining for toronto, dallas, new york city. a top executive is throwing water on the report. memo to the genius leaking info about crystal city's hq2 restrictions stop treating the nda you signed like a used napkin the company plans to invest about $5 billion and create

about 50,000 jobs. sully, back over to you. >> frank holland, thank you very much now to some of your top stock stories this morning softbank's profit surging. the ceo says nearly $100 billion fund backed by saudi arabia and others will continue despite the controversial murder of jamal khashoggi at the saudi consulate. he called the incident a tragedy that shouldn't have happened but he says softbank must continue to carry the growth. berkshire repurchased nearly 1 billion in stock in the first quarter. it's the first time the company has bought back its own shares in six years. in other corporate news ge will pay john flannery 4.3

billion and he was fired after 14 months on the top job according to the securities filing he will be eligible and he will receive a pension although he was at the company for 30 years once he turns 60 he will get the pension. it was valued at 24 million at the end of last year. we are just getting started. trade war? what trade war china's president delivering a major speech on tuesday and we'll have an open economy son flurries and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

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my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. welcome back china wants to make sure that the world knows it's still open for business xi jinping has the information eunice yoon has the information. >> thanks so much, brian this expo is meant to change china's image from a global exporter to an importing powerhouse president xi jinping had kicked off the week long fair with a highly anticipated speech where he said pretty much everything that american companies normally like to hear he said that there are plans to cut more import tariffs, to grant more market access, to get

tougher with intellectual property protection and have a first class international business climate the problem is he didn't get specific on even one issue he didn't directly address the problems between the u.s. and china over this trade war. so there has been widespread feeling of frustration among international businesses who think that despite beijing's pledges, it just isn't opening up in the way that would be beneficial to international business so what we saw is that that widespread frustration has led in part at least to the trade war and the trump administration did not send a delegation here there are a lot of american companies here like honeywell and pmg, but very few global ceos mostly country heads i think, brian, it really shows just how weary and weary a lot of foreign businesses have become about dealing with china. over to you.

>> eunice, i want to get a follow-up here how does this set up between the g20 talks coming up in a couple of weeks in ar again dena? does this add to the setup does it increase the drama >> well, i think it would definitely increase the dram mampt a lot of people are saying the next step is the g20 all eyes are on it they suspect that this -- the conversations going on here will set things up. president xi might be saving some of his offers if he does, indeed, sit down with president trump at that meeting. however, there are very few signs that president xi is going to be caving in to u.s. demands just based on some of the comments that he had today in fact, he specifically brought up this idea that china is, as he spoke about, is an ocean not a pond that has survived 5,000 years of storms. he wanted to point out that

china is still around understanding that china has staying power even if there are problems. >> eunice yoon, always a pleasure. coming up, your money, your vote what every investor needs to know about tomorrow's big mid term elections with rarsegards the market and your investments. live report from d.c. when we come back.

welcome back in.

good monday morning. thanks for being with us 5:22 futures mildly down. nasdaq futures are up a little bit. remember, all of this comes off of a massive volatility that we have seen the last couple of weeks. oddly the dow ended the week higher you never would have known it given that we have a 900 point swing one day last week. still, we'll have a little momentum coming off of last week. let's turn now to what most people are going to be talking about for the next 36 to 48 hours, that is politics. president trump says that his administration is looking at antitrust proceedings against amazon, facebook and google. president making the comments in an interview with axios on hbo last night trump said that the eu's $5 billion fine against google made him think about pursuing regulation against the technology giants. we are just one day away from the polls opening in the mid term elections both parties are making last-minute pushes bringing out the heavy hitters to stump for their candidates

nbc's tracie potts in washington with more. tracie >> reporter: brian, the president is not a candidate, but he is all over this election stumping in the last 24 hours in the south. today he'll focus on the midwest in his final day of campaigning before the polls open. the final sprint today president trump rallies in ohio, indiana and missouri crisscrossing the midwest making his final argument. >> i need you to get your family, to get your friends, get your neighbors, get your co-workers and to go out and vote republican. >> reporter: he's going after democrats like stacey abrams running for governor of georgia. >> she will make your jobs disappear like magic. >> i am the most qualified candidate. >> reporter: last night this on phil breticen. >> he will embrace a socialist takeover of health care. >> reporter: a new nbc wall street journal poll shows one day before the election

democrats have a seven point edge among likely voters while the president's job approval rating remains upside down. >> don't be charlie brown with the football don't be hoodwinked. don't be bamboozled. don't let them run the hokie doke on you because while they're trying to distract you with all of this stuff, they're robbing you blind. the character of our country is on the line. >> reporter: president trump, of course, is not with ybut he's u them to vote for republicans. >> they're making money, more jobs are coming back that is a great closing argument. >> reporter: close races with record turnout for early voting. in fact, brian, turnout has surpassed the last mid term elections in 17 states. >> it is going to be a big 24 to 36 hours here, tracie.

we'll look forward to your updates. thank you very much. in the meantime, this morning's other top headlines outside of the morning of business >> good monday morning to you. a caravan of migrants headed to the u.s. has now reached mexico city some are calling this leg of their journey the route of death because they'll be trekking through one of mexico's deadliest states they set off from honduras several weeks ago. they have set up shelter, food, medical aid for them there are three caravans traveling through mexico in response, president trump has left him in court. guzman was extradited to the u.s. last year to stand trial on charges he ran the u.s.'s largest drug trafficking cartel. she has done it again. kenyan mary cattani dominated at the new york city marathon

sunday topping her closest competitor more than three minutes. it was the second best time in race history it was her fourth win in five years. ethiopian man dececil captured his first new york city victory. back to you. >> they're running faster than i can run for ten feet for 26.2 miles, phillip. >> it's incredible. >> it's insane i couldn't drive that fast phillip mena, thank you very much coming up, elon musk goes for a walk down a long tunnel in l.a. no, it's not the beginning of a joke we'll tell you why it's happening and why his supporters are excited. if you're lookinfor g a hint check out the music playing rate now. and serve with confidence that it's safe.

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november to remember goldman sachs reportedly shrinking the people it will name as partner. we'll tell you how many and why. t-mobile ceo is putting up his $18 million penthouse in new york on the market we'll take you inside it on this monday, november 5th, 2018 you're watching "worldwide exchange." ♪ welcome to my house ♪ baby, take control

>> welcome back. thank you for being with us on this monday morning. i am brian sullivan. good to see you. let's kick off your executive recap. frank holland be is back. >> cnbc.com right now, the u.s. is reimposing oil and sanctions against iran they lifted them under a 2015 deal negotiated by the obama administration iran's president said he plans to defy the u.s. sanctions and continue to sell oil china's president xi is talking up the commitment to free trade they're holding an international export in shanghai as it triesz to promote itself as an open economy and major buyer of goods. amazon is about to name crystal city, virginia as the second home. back over to you, brian. >> frank, we'll see you in a few minutes. thank you. here's how your money and investments look right now as

we're halfway through the hour there's no clear way to say which way this market is going to go. dow are down a little bit, nasdaq up a little bit your guess is as good as mine. we actually finished last week higher wouldn't seem like that. numerous days with multi-hundred point days we did end up on the dow the bond market, don't tell anybody, but yields are quietly creeping back up remember, we got to 3.25% a couple of weeks ago. everybody freaked out about that bonds selling a bit as yields have come back up. it was red on the screen all across the asian markets, however, overnight japanese nikkei taking it on the chin we saw hong kong down. the hang seng down 2%. shanghai held up a little bit better, down .4 of 1%. and we're seeing, ah, a mixed market there germany is up fractionally italy which has been the trouble

spot as you know over the last couple of months remains weak. the banking system is in focus oil we just talked about, the iran sanctions going back into play crude oil is down because saudi arabia is pumping more, libya's pumping more, nigeria. that has the world well supplied with oil at 62.85 for the price of crude oil here. let's talk more about these markets. joining us joel schulman, founder of entrepreneur shares joel, welcome. great to see you again. >> good morning. great to be here. >> two ways to look at this. we've had this insane volatility the markets were very weak for a while. the fact that we could end last week somehow higher on the dow, does that give you any reason for optimism or do you think this volatility will continue? >> we'll see volatility continue through the end. when we talk about the corporate profits coming in from china tariffs, we looked at 176

companies. 112 americansmentioned china ta. the s&p was down 9.3 corporate profits continue to come in, we're going to see it i'm generally optimistic for the end of the year. we're seeing lots of good numbers for corporate profits up last year. >> the numbers are and i don't use this number lightly spectacular for corporate profits. if i would have come to you and said, hey, joel, we're going to have 24% profit growth year over year, one of the best numbers we've ever seen in the history the market would struggle to stay afloat, you would have called me crazy. >> you're absolutely right the corporate profits are fantastic. i'm bullish for the rest of the year based on this we look from year to year. we have to remember that up until a couple of months ago the markets were way up across the market for growth. small cap growth, large cap growth we have something up 30%. small caps up 20%.

we had a hiccup off 18.2%. we have to remember that passive money is up to 1.8 trillion in the large caps compared to 1.3. >> you may have heard somebody on this network saying that they were concerned about what etfs may do to the market because we've never really had a market that has been this passively invested. >> that's absolutely right. >> i don't like the word passive anyway because if you see huge outflows in trillions of dollars, that's not passive. >> right. >> what is going to be the ultimate impact? >> to your point, with this money going in and out, i do have one etf, i have three mutual funds, with the etf the money moves without regard to valuation. to your point, this is a real problem for the markets. individual investors, saudi investors, high network, they take large positions when you are talking about these baskets, institutions moving 1.8 trillion and they do so without

regard to valuation, this is a problem. >> no one's knocking the etf business all we're saying is you have a bay, a bay there's five super tankers in the bay and 100 smaller boats around them. when the tide goes out they're all going to go down. >> right. >> or they're all going to come up. >> right. >> that's the concern that some people have. >> yeah. i mean, complete agreement on this so i don't know what's going to change i mean, i think ultimately what happens, savvy investors figure out how to pick off these things. >> do you go back to the stock pick >> that's what we do we have our baskets that move with the markets but we take a subset of it there was a book years ago by charles ellis. >> do you know this? >> we did a panel with mr. ellis back in february. >> many of your list eners probably know. the two best ways to beat the market, you get rid of the bottom part, right it will be fine. you try to concentrate and get the top. ellis talks about getting rid of the guys at the bottom

your stock pickers are trying to get you better than average. that's what we're trying to do by picking off our entrepreneurial companies. >> charles ellis said to me any concern over passive investing was silly. he's like basically -- he didn't use that word but i got the point.traditionally, people hava hard time being baskets. baskets are done without regard to fees. if you have models and some of us think we have models that go back over time to beat the market and they have a particular factor that you can accentuate, that's one way to do it. >> help us make a little money before you go, joel? what looks good? >> small cap growth. >> still >> it got beat up. it's down half from where it was. it's still the leader globally down from half of where it was to your earlier comment.

profits are way up at some point people are going to recognize these large cap growth got beat up both of the areas, if profits come in and we see the numbers trickle in at november and december a nice christmas, rally with retail people are going to say profits are way up, why am i not in there. >> that chart does not say trade war. that chart of small caps can bring it up. they're concerned about the economy going forward. are you? are you worried about the u.s. economy? >> not in the next year. certainly not through january. certainly not through january. let's see what happens in february i'm not worried about the interest rates i'm not worried about oil. i'm not worried about inflation. the trade war, if we have a good deal with china, we're going to see markets i think 5, 10% this is not just me. i think most of us think the markets will respond positively. even if we come out neutral, people will see good numbers come in. at the end of the day profits carry the markets. >> 24% profit growth year over year

one of the best numbers we've ever seen. we have a lot of volatility. joel schulman, see you soon. thank you very much. now to your top corporate stories. elon musk went underground this weekend, literally he gave the public a sneak peek of the boring company. new tunnel under los angeles in a tweet posted on saturday morning with video musk said, quote, we walked the full length of the boring company tunnel, disturbingly long, end quote he said it's on track for an opening party december 10th. it runs two miles from the boring company's headquarters. it will be used for research and development for the hyper loop system he wants to beat the areas notoriously bad travel some people are still trying to get home and they began on friday. >> frank holland, mr. trend, back with those. >> good morning. elon musk, he likes to tweet.

>> and walk apparently. >> and walk. queen was the king at the box office "bohemian rhapsody" exceeded expectations to take the top spot they earned 50 million in the u.s. and 72 million over seas for a total of 122 million i'm not really a queen guy they call it this because it's the signature song "another one bites the dust" was more popular. >> there are many, "we are the champions. >> i get it. i know it from being at a sports game and hearing the songs, not from being a fan. >> the reviews weren't great. >> if the people like it, that's all that matters. >> yeah. >> moving on after spending 157 days at sea, ross edgeley bamt first person to swim all the way around great britain. he started in southeast england.

he returned to the same place at shore. he was accompanied by 300 well wishers who came to swim the last half mile with him. isn't that the way it is you do something big, everybody will jump on the first part he did all by himself. >> why >> how cold is the water the water has to be frozen. >> i like to swim not for months at a time in freezing cold water. if you're in the market for a new luxury penthouse, this one is for you t-mobile ceo is selling his penthouse apartment the asking price 18 million what do you get for all of that cash, 2 floors, 3600 square feet, four bedrooms, four bathrooms. not to be missed sweeping views from the 1700 square feet.

>> what's the cell phone service like >> i would guess pretty good. now to the world of sports if you did not stay awake until the end of sunday night football like frank and i, we have you covered. the pay the kbrotriots hosted t. that's when mr. brady, tom brady broke through and put the pats up 24-17 they did not look back they scored again. they won fairly easily at the end. 31-17. listen, the packers, aaron rodgers. no weapons needs some help. coming up, the united states upping the pressure on iran today resuming the sanctions what impact could this have on oil prices and more. we'll drill down on that story "worldwide exchange" showing a market that's mixed right now. back right after this. who can help me build a complete plan.

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oil prices have fallen 15% over the past month. what impact will the newly imposed sanctions have jackie deangelis joining us. we have the sanctions which sound bad. as we talked about earlier, a lot more people are pumping a lot more oil as well. >> reporter: that's right. good morning to you, brian it feels like some light switch went off because of the deadline being imposed but that's not how it works when it comes to crude oil. prices are trading lower this morning. it doesn't mean people are going to immediately stop buying

iran's oil as a matter of fact washington on friday issued eight wavers to countries to continue to import iranian crude oil. they didn't say who got the oil. the top importers are china, india, south korea south korea may be one that got the waiver it's not just the three countries but others as well washington has said we want to put the pressure on iran but we don't want to choke the countries that rely on the oil as you mentioned before, other factors will affect it the opec countries continue to pump and so does the united states 11.2 million barrels a day that's pretty staggering production this market is going to a seasonal period where we typically see demand drop a little bit we're watching the stock market volatility you have production on the rise. that's a recipe for the prices to go down you can see wti trading around

62 brent is trading around 72 the drop in prices is pretty incredible aaa says the price per gall is now $2.76. it's higher than it was this time last year but it's down 15 cents in the last month. we have mid term elections tomorrow, brian. >> yes i had forgotten about those, jackie is it fair to say with iran because we had rouhani say, doggone the trump administration, we're going to continue to sell oil you can turn off the gps on a super tanker, you still need to keep it. >> they're not coming out to say this they're looking to sell that oil. they'll probably discount it when you discount something, a commodity like oil, there will

be buyers. >> yes, there will be. jackie deangelis thank you very much. we'll see you all day on cnbc. wall street news this morning. goldman sachs expected to announce fewer than 65 people will be named partner this year. "the wall street journal" reports that would make it the smallest class of new partners at goldman since all the way back in 1998 when goldman was a private company. partners now own 5% fewer than the firm. >> andrew ross sorkin is here with a preview of "squawk box. you have oil, what else? >> you know what, you just did it for me. amazing. >> we'll see you soon. >> no, a big show ahead. mid terms, we'll spend a little bit of time with mike allen from politico we'll talk markets with barry knapp. after that we're going to talk

with art laffer, a little bit about the laffer curve, politics and the economy. later ken rogoff will be there in between that we have a lot on markets as you just said actually, interesting story coming up on potentially softbank, sprint, t-mobile. >> what do you think of john legere's $18 million penthouse up for sale. $18 million penthouse in new york, andrew >> is that -- the question is, is that a promising sign that he thinks the deal is going to go through or does he need the cash >> i don't know, but i will guarantee you, some arbitrage -- some dude or some woman somewhere is factoring that into something with regards to that transaction. >> yes >> that's the sexier version of a different story, that's a

tease. that's a tease now i'm interested. coming up, trading the mid terms only 24 hours to go citi's top analyst will be joining us with how you should being looking at the big event from a money perspective we are cnbc, the worldwide leader in business news. we're back right after this.

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prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. 5:52 here in the east. a beautiful shot of the nation's capital. this is news genius, i have a sneaking feeling that we'll be talking about politics over the next 24 to 48 hours. sneaking suspicion whatever you do, whoever you vote for, just vote. take a look at stock futures monday we had a 900 point swing in the market. we had a 600 point swing another day. into the week oddly higher given all the red on the screen for most of last week, a bit surprising to many

futures are not giving us a lot of help about which way the market wants to start this week off. dow futures flat nasdaq flat, maybe slightly higher take your pick anybody's guess. by the way, profits are soaring. corporate earnings coming in about 3/4 of the companies out there have already reported their numbers with an average profit growth year over year of 24%. one of the best numbers that we have ever seen in the united states the market is a discounting method it looks out not in. treasury market, 3.25% on the 10-year yield. they are talking about that being a key line when the market got volatile we saw yields come back down. back down towards three. we've seen bonds sell a bit and yields come back up. we are now just 24 hours away from the mid term elections. normally mid term elections are

a boring thing little covered by the media. low voter turnout. this time though very, very different. the balance of power in congress is at stake. far reaching implications for the markets, economy and your money. joining us is tina fordham, chief global political analyst at citigroup i'm sure your brain has been getting a workout. what is citigroup betting on as the most likely outcome? >> betting on is a very strong statement. let me share with you that i was in washington, d.c., last week talking to pollsters and strategists. one of the things that really struck me is how little conviction everyone seems to have going into these mid terms. mid terms are always harder to poll and to model than national elections and these mid terms are not inspiring partisans with

the likelihood that their side will win what i have emphasized is investors need to be prepared for the plausible outcomes and not just think in terms of a base case and tail risk. >> how do you do that then how do you prepare yourself economically and from an investment perspective for any possible outcome with that in mind, a lot of investors will sit this one out having been burned by the 2016 presidential elections where some pollsters had a 91% probability of a hillary clinton victory and likewise with the u.k. referendum. both of those outcomes were two out of the three biggest one day moves in markets for the last three years so i wouldn't be surprised by those who want to sit it out, but what i'm suggesting is we need to think

about the outcomes that are mathematically plausible, right? with that in mind the republican status quo, keeping both chambers of commerce that i think would see a rally in markets a blue wave in both chambers is something that is possible but very difficult road for democrats to get to. that would require very high democratic turnout and very low republican turnout and both sides are quite energized as we go into this race. >> tina fordham, thank you very much we appreciate it. speaking of polling. time for morning rbi all about the mid terms. would he did our own little poll on twitter we asked you what you think the outcome will be. all of you think the democrats will take the house. you are not as convinced

equal numbers said the democrats would flip the house and the gop would keep it the same maybe that's selection bias. either way, it will all come down to tomorrow thanks for watching "worldwide exchange." "squawk box" is next the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet?

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good morning stocks in asia plummeted overnight, but u.s. futures are pointing to a mixed picture. all of this ahead of tomorrow's mitt term elections. we'll get you ready for a busy day in the markets u.s. reimposing harsh sanctions on iran. however, iran's president is pledging to defy them. does it continue exporting crude? we'll show you how oil prices are reacting warren buffet is betting on berkshire. they're buying back $1 million of their own stock monday, november 5th, 2018, the day before november 6th, "squawk

box" begins right now. ♪ ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick with joe kernen and andrew ross sorkin u.s. equities. last week a pretty wild ride for the markets but this morning things are starting out rather tepid. dow futures are down but only 8.5% s&p futures down by less than a point and nasdaq up 11 points. the wild time that we saw last weekended with the dow, s&p and nasdaq all up over 2.3% for the week the s&p had its best week since march 9th. a lot of different factors that were playing into things on friday we had a better than expected jobs report