thank you to melissa lee i need to correct you. >> you correct me. >> you know what i am talking about. i am kidding make sure you join us next week. "squawk on the street" is coming up next. good friday morning, welcome to "squawk on the street," i am carl quintanilla with david faber and jim cramer we'll speak to alibaba's president, michael evans and p & g, david taylor. futures are weak 10-yr is near 3.23

our road map begins with the wild ride for the market continues. futures point to a lower opening and crude getting crushed below 60 and down for a ten straight day. >> general electric gets a cut the analysts say earnings are worse than expected on all front. prices up in october by the most since 2012 and got crude slipping further into bare market territory down more than 20% from four year highs earlier on "squawk," ron barron says he does see a bullish deca decade ahead for stocks. >> i think the stock market is going to reflect the company

in ten years the stock market is going to double, gdp will double in 10 or 12 years. that's what the stock market is going to do. >> a lot of discussions about barron's comments which equates to 6.5% annual return. not something to write home about. >> i will take that half and sleep at night honestly, it is pretty good to get that vanguard or maybe our governor is going to be -- >> oh, your governor of new jersey, the former governor, i am getting a little confused >> we'll get back with carolina and a couple of rich hedge funds from connecticut, next thing you know i am going to get new jersey municipals that's going to beat that no listen to ron, he had some bullish thoughts and frankly the notion of progress does work in

the market's favor there are moments where it is all called into question i think things are fine. this is not 2007 or 2008 i was listening to steve liesman earlier, it will push rates to the point where i don't know who it will expand we got the tariffs >> what's our thought on ppi here a combination of slowing growth and rising inflation >> you started off by saying the oil and bare market, it is incredible how quickly oil fail. october was peak oil month i have been saying oil is plummeting here. i am not stopping. when you go over what have caused the misses. you get the supply chain of those who's going to be worked

out. truck drivers, we need them. oil, all the transports. this is the biggest delta, airline. >> all time highs yesterday. >> yeah, that makes sense. you can't have a terrible market with -- i am much more saying a lot of people about inflation because the number that you see on the left, is it that one? how do you do that that number is really incredible it is going to ripple through every quarter. if the dollar comes down then what you have is people raising number right now this oil is not in >> no, i know. every expert we brought on, the one with modest forecast would say 70s. >> right >> i don't remember any, maybe carl does oh we are going back to the 50s >> there could be at the same time 11.5 million barrels.

>> 12 million in the country because premium is going to keep going. >> a huge number of pipeline that's coming on stream. that's going to flood our ports with oil we'll not import as much oil it is a remarkable moment and no one saw it coming. no one saw it could have this level. >> we are exporting oil. >> we are exporting. we import, too but we expert new england got some pipelines going on there is so many positive things that are happening with fossil fuels. >> we have so many corporate results to process we should really start with disney >> yeah >> disney was very strong on the

quarter itself and for the year. $12.6 billion in profits a tremendous year for the company. the focus of course as you well know and on the call, they shared some new information and there is certainly a lot of questions about their directive consumer strategies. it is the future for this company. we know that next year this time they're going to be unveiling their entertainment platform barron macy contain more than we have thought "iron man. >> asked about hulu which they'll own 60% of and how will they invest in that? the question now -- >> the age of hulu 20 years younger than the people watching disney. david, they have to spend a huge amount of money.

>> we still don't know the numbers. >> they are not sharing that would they cut us a number in 2019 >> i don't know. >> i think he's ensuring and this is his legacy >> this is the future. >> you will have to spend a lot. that's where investors are going to be focused or having an investor meeting in april where we should get more granularity in terms of that >> is he going to lead in? everybody is looking at this report that try to quantify the trade offs and revenues from licensing and syndication and netflix and that kind of stuff >> there is money.

will the shareholders allow bob iger to spend that money i am saying they will. that's not necessarily a consensus quo. >> iger talked to julia boorstin about digital strategy, take a quick listen >> our plan is to invest in all three services, the espn service, disney and hulu service so we'll achieve our goals and not just going into directive consumer space but transforming the company by being in that space that'll require investments and those investments will be made across those three brands >> our friend jason last night had a fun game in seven years, higher in netflix or disney? >> i think disney can pull it off. >> i don't think they need to. he used the word "transformed,"

and it is. what does netflix have now >> you can have 30 million that are paying him >> on espn they'll be paying a lot more as that transitions to what people use, period for those sports as oppose to the bundle >> i am including espn and disney plus. i think it can be bigger >> i think it is the way to look at it. >> do you think i am wrong no if you include the subs they have in the bundle, you are landown already there. >> if you say directive consumer >> no. you don't need to beat netflix >> you don't >> you only need to be in the playoffs >> netflix is in the playoffs. bob will be in the playoffs. he likes the plaqueackers they're not going to be in the playoffs >> when we come back, the count down of china's largest sales

event, singles day, we'll take a look at the market, "squawk on the street" from post nine will continue in a minute cnbc program is sponsored by payden and rygel i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

the world's largest shopping event kicks off this weekend,

alibaba's singles day hitting more than $25 billion in volume. this is only in 24 hours of course, question? will this year be bigger than last in michael evans is joining us from shanghai where the festivities will soon begin. always good to have you, michael, the first question is given the current state of the chinese consumers, do you expect you will exceed last year $25 billion in total merchandise. david, let me start by saying very nice to be on the show. we are disappointed that you are not over here since you joined us a year ago after the ipo. we miss you and hopefully you will consider for next year. what did we expect for this year it is a much bigger results this

year >> tell me how you have changed it you have done a lot on the platform even in the last year in terms of introducing, give us more sense of what you are talking about. >> several things are going to change the first is all 30 businesses at alibaba in the big al bibabas going to be in the singles day 10 years ago, we sold $8 million in 27 brands this year we'll sell a lot more.

a lot of other services and think about our new retail initiative it will be apart of this, this year >> michael, i know you get the question every year, to the extent that singles day is additive or just pulls forward, otherwise would be made on the platform what have you found. >> as we particular expand into the retail initiatives so the 80% of commerce market in chi china -- we found we are not cannibaling o iizing the busines

people are so interested in the singles day event because it gives them many more opportunities to be involved in something that's fun and a great experience this is all about increasing the pie and allowing consumers and merchants to take advantage of that >> mike, we had joe last week. i had spoke to a number of your investors and to this point you are making, the investment you have made as a company, that continues, there does seem to be some question as to whether or not these initiatives on spending are going to send revenues up but keep ibita under some pressure. can you give us some sense >> look, we been very clear and i think joe did an excellent job

on this. we have been clear that the investment initiatives that we are making in china particularly cloud and our new retail initiatives are designed to expand the pie and the revenue opportunity. it takes time to invest in these and allow these businesses to grow similarly the investment that we are making outside of china and russia and turkey and markets all over the world are designed to create platform these will take time we have been very clear of investors. we have high margins and we are prepared the invest in those margins. we think this is the future and the best way for us our shareholders to participate. >> the logistics around are staggering as well as the numbers are. having been there five years ago and see what you did, i can

imagine how quick will everybody be getting what they'll order on singles day at their door? >> well, last year just to refresh everybody memory we delivered 812 million packages on the back of the $25.3 billion sales. this year we expect to be well over a billion packages and our goal particularly with the investment and enhancement that we made in smart logistics, both domestically and international consumers, we expect people should be receiving those packages within three or four days many people will be receiving the packages in the same day that's a lot of packages >> we'll be watching closely and listen, i would love to be there and get management to agree to send me again a year from now. for now, we wish you the best, michael evans. >> i consider it an open

invitation >> i will indeed maybe we can bring the whole gang i think going to shanghai -- >> that would be fabulous. i would love to do my "mad money" there we got a year to lobby we should start now and maybe we can get there. guys, i did want to come back to a story we have been following >> talk about the interview. >> go ahead my friend. >> let's move ahead. i want to talk about campbell this morning the stocks are moving up and continue to of course back and forth between dan lobe who have been -- the math on that simply is impossible given the entire family more or less voting against him. this morning i can tell you he's new reduced his asset to a slat

of five directors. that's where he's focused. the math is still very difficult and there you get a sense say we kind of blacked out some some -- well, we did not really. >> who does he want to put on? >> who is this guy >> he's going after malone and sara hofstetter and curt schm t schmidt. the november 29th meeting is not far away iss is going to come out fairly soon they spoken to a lot of investors. the hope, jim, i think of course is to have a series level of

engagement that campbell feels that its own investors want some presence from mr. lobe's nominees on the board and maybe you will end up two or three of those nominees the math is still extraordinary tough. >> this company is the most poorly managed and dan lobe's people, these guys set the benchmark for bad. they should be begging dan lobe, please come on our board what they have invented the last 30 years >> i am reminded of david icahn going back to the model. >> i pointed out of his number mr. icahn pointed out, buy companies or selling companies,

return is greater than the s&p we need carl icahn, i am glad we had him all these years. it is interesting to know that after all these battles the annualize returned roughly equal to here mr. loeb took on a fight that few others would have been engaged in there is no doubt about that it is helpful to the brand and it builds his brand. that's not unhelpful in terms of raising money and continue to remind people he's an activist where this ends up depends on comments you just made and feelings of shareholders and make sure of your settlement that you need these shareholders >> these guys even - that snack acquisition. what was the next bit? >> it was a lot lower.

>> this company is so in need of loeb they need loeb they need something. you know what they need? people buy their products. >> we'll see what the earnings are like a can of soup have not changed it is fresh soup in the super market and there is cans right next to it i rather buy those cubes where you can put in your backpack >> i feel bad for them i like pepper farms. do you like goldfish >> i eat it all the time >> when we come back, we'll get cramer's "mad dash" and don't forget david taylor with sara talking about the company restructuring. we got to get to ge and p & g

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will be enormous. ( ♪ ) all right, welcome back, we got about four minutes before we get to opening bell. our last "mad dash" of the week, we'll do it seated as we head to the opening bell two thing that is are wrong with leo griffin. they're going to lose to the chiefs second, he unfortunately had to give some bad news to shareholders to sky works without being able to say the

bad news that apple -- they basically saying apple did not put in enough orders you can talk about others. now you put this together with what qualcomm says and start to get the big roll overover merrill is saying apple is the company that's being hurt and sky works is the extension of the derivatives. sky works are going to cause apple to go down which is why the futures go down so hard earlier. people read through griffin. he's a great 5-g play. there will come a time where you have to buy sky works. all these people who are looking at a big bounce back just like qualcomm how could you lose in qualcomm people fell sky works down so much, you saw the chart, it

could go down more it is not the company's fault. the company is executing flaw leflaw flawlessly >> kayleigh mcenaty's work righi don't think merrill is going to be right short term they could be right there is a lot of researches coming out it has gone up too much. i don't like that. the people at home, people at home don't want to trade i still don't want to -- the sky works, the conference call was daunting >> it was daunting >> yes, you have to strap yourself to the cell phone after that >> speaking of research, tusa. >> you take tusa

texas, tulsa, from 10:00 to 6:00 he says 70% decline from 30 does not sufficiently reflect the facts. >> i am going to let david talk about it >> he went over the cue in great details and reference to $15 billion plus of cash 25 billion debt reduction were not shown in this 10-q and the specific reference of generating $25 billion in cash. gecs did not appear in line of the recent view. it appears to be over stated by our analysis numbers that they are coming up with questions to leverage number and

overall, jim, -- we'll get to the opening bell >> foot race, david. there is the opening bell. s&p, the big board is sirius, international insurance company. double digit declines in the premarket are becoming a common place. today, pot belly and activision. that number is such a huge miss. i don't know why they don't announce pot belly >> and yelp. >> can i say the yelp conference

call oh my god, it was disarray is what analysts are saying customers did not like changes they made and head wind and technical issues and lower outbound call. technical issues i am going to end it on this in explicable operational head wind it was a nasty call. i could not find anything that was right about it other than they did not say bad things of my restaurants >> 30% decline >> that's unbelievable >> yelp, one point they said they did not have enough sales people they gave a hundred excuses. >> that's worst than zillow. >> it is a lot of people comparing

ththe them -- the only one that's going to get to this is john ledger >> elon musk >> everyone says hitter and hitter >> ron barron had nice thing to sthingsto say this morning >> mcquarry says it could be added to the s&p >> hernandez, one of my favorite ceos how about he mix in the country? look at that red, david. that's the heat map. >> do we have a heat map there is a lot of red on the heat map s&p is down half a percent and nasdaq is down a bit more. >> atvi, jim, the fortnight effect

>> if you read the call, it is flat destiny is bad and they have the game, call of dody i don't know it. >> my dog peed on me yesterday >> that's horrible >> it is like call of duty it was not as bad as the stock, okay they did rush call of duty out because they did not want to get redemption six-pack strauss last nigh nighnight night -- talking about eating the activists. again i tell you it was not as bad as the stock >> it is the worst s&p right now. the best one is disney leading not just, 2.5. >> they had faith because the

fact that they have not provided us any guidance at all in terms of sub growth or pricing or what they see is the cost of everything they're going to need to do to really build out the service. and so it does seem they're getting the benefit of the doubt that it is going to work >> well, david they'll be able to monetize dtc without us knowing any sort of keys about returning on invest of capitals or what else are they going to be doing >> "mary poppins" returns or how about "alladin" and "toy story iv" and i save the best for last, "lion king."

these are the brands that my kids watch and i watch >> disney plus sub don't need to exceed netflix >> that's my point i feel that bob iger, the fact that he's staying, he has a legacy and he's going to get through 2019 through the promise land >> the president we'll hear from him in a minute. one of the headlines he's making is the decision on keystone excel was a political decision he says, a disgrace as we continue to watch oil now 59.5, jim, we are on track for ten straight >> we are starting to see th that -- people did not think that that's just broke. i got to tell you, we got too much oil the pump is going to come down and gasoline is going to come down i am going to break it up here now. cramer's report of the last part

of faber's name. i understand that china is offering subsidies under the table basically to companies to not move to china. they are basically subsidizing so they don't move to vietnam. this is going to cause not higher prices and it may be why some of the retail stocks are doing better >> nobody knows it >> no, i just broke it >> five straight months of declining autosales. a report out nearly a fifth of all home in china are unoccupied and a sell-off would be catastrophic if you have been to china, you would see high-rises that would go to miles. >> another positive when you view where things stand in the

corporate levels between our country and china, did you see this, jim? american express told the bank of china -- now beginning businesses across dietetic r&b transaction into mainstream china. that's important >> the chinese are blinking even as we talk they are subsidizing our retailers. this was what i was waiting for america's best -- do not think we'll have a win in this we may have a win. not the win. we favor the regime change that's a signal. the next signal is going to come the next ten days. watch rockwell collins be approved >> that's what you need. >> those who are following rockwell collins which includes the event community so to speak, when they look at a headline like that, they get encouraged

>> that pressure on china though is that why apple and cat are leading the dow lower even after cat says they'll buy more shares this quarter than last >> according to leo griffin, that's a big consumer item a lot of people are looking at oil and they're saying it is one for one for china. it is supply over overwhelming dema demand they're selling the nasdaq down but that's apple let all the sellers coming out of apple it is a seasonal thing leo griffin says it is a seasonal thing there is no reason to believe in him. >> liam neesam >> no n, not him. >> can i come back -- >> there is justice. >> i don't remember --

>> i know. traumatic things that every kid -- >> bob iger will not let that happen >> on china. >> what? >> it should be noted that a deal we had this morning 26 by pixars let's take a look at the deal. another .218 shares of 26. they'll need china's approval. >> you got it that fast? >> it is not clear if chinese reveal i am looking at research here and in a different macro environment, it should be expected that samurai, the new acron

acron acronym. >> information release of the five years plan to link and grow that's scenario can be a key for this deal. >> what do you this i of the deal overall >> i felt that finisar was way too independeconsistent and not ownable. this is a good move for finisar shareholder. it is a great deal for them. >> okay, finally, just back to ge for a moment. the stock is sort of down. >> i want to get your thoughts -- tusa seems to be focused on ge capital. he says on their cap ex gets to a negative burn of 2.57 billion.

it just seems very concerned in terms of resources being limited there of ge capital and being a liability. >> when i read that, i thought we have taken that off the table but you got this new discovery ge is becoming moby dick for this fella four letters he's captain a-hab >> ge is moby dick, he won't stop >> p&g is the other big story, we have not mentioned about. sara eisen talked to the ceo, good morning >> reporter: a big shake up announced at procter & gamble. this was a long time coming. to use the word from the ceo, they're trying to become more

agile and responding faster. the company has been in slow growth mode for years and recently had their best quarter. the shake up is going to work as six new business units where all of them are operating sort of independently with their own ceo where the ceo is responsible for all sorts of decisions and products when they go to the market the accountability and if that sounds familiar, guys, we heard a lot about it during the proxy fight that got heated last year. he ultimately succeeded where nelson fought for. this is a big change he want to see at procter & gamble. that's the news. analysts love it bernstein took up his price target from five bucks to $9 a share. we got to talk to david taylor about a lot of things that are affecting his business in the

background, strong dollar, global consumers and trade wars. i want to share with you what he's worried about and how he can impact his business. listen >>. >> what i worry about trade war is destroys consumer confidence in american brands i have not seen that as long as you produce in china and most of our brands we do, the terrorisariffs won't have a impact this is good for our country and china. it is not good i believe in free and open trade. that raises all boats. >> reporter: so he does not think it is good but he did say a strong dollar is a lot more of a profit hit right now we'll have a lot more from him on the stocks and the big changes he's making today and the global environment and his thoughts on the fed coming up in

the next hour. back to you guys >> i think sara is in the right place. sara >> reporter: yes, i can hear you, jim >> david is so under stating and i think the change is so positive is there a way to talk about why this restructuring is so meaningful i think people on the board who think this is a long time coming >> reporter: i think investors have been complaining and debating that complex matrix structure of procter & gamble where they had heads of geographies and heads of product lines all reporting up to headquarte headquarters it has been a huge source. i remember jim, he told you a few months ago that p&g management was starting to listen to his ideas. this was what he had in mind when he was telling you that

taylor presented it as an evolution of this turn around they have been in for a few years. they would restructure or reorganize to get straight to the consumers thachlt they see it as a next step but as an early stages, they have got to put everything they got in to innovation and driving value. look at the macro and environment and strong dollar and everything like that they're showicasing a lot of innovation they're coming out with all these new products like heated razors this is part of why they are structuring to make fast decisions and beat out their competitors. >> it is incredible. their corporate structure was literally a harvard business school case for decades. the brand manager over the years -- >> people coming out

>> you can go back and turn around of ralph lauren >> sara, can't wait to hear more dow is down 150 right here let's get to rick santelli he's got that. >> it seems to be a distant memory at this point we start to lose a little bit of steam which is not unusual going into the weekend of a fed meeting. whether you are looking to shorten the 10-yr or seven years in bonds, missed bite several based points look at one week of two-yr, it keeps on ending upward we did see a couple of days a bit of a flatten of the curve going into the meeting

there are two days of tens down. looking at october 1st of 10-yr, it is not exact but it is darn close to a double top around that three traders are paying close attention to that and trying to defide it over 30 years bond really it had been leading the charts of the lower prices and higher yields. ten-yr note right now, look at the year to date chart of bund, you know where they are on the year they are unchanged that has changed 80 bases points it changed more than doubled the current year of 10-yr bund well, i will tell you what, you follow how that behaves and you have all the effects under

control. it has moved higher against the yuan, not as high but it is getting closer and koescloser an let's go back to the dollar index, june 1st, we need to recapture the 97 handle. it is close and consider the dollar at 96 and three quarters having a stellar week that's 3/8 of a percent or less carl, jim, david and back to you. have a good weekend. >> rick, thank you very much dow is down 121, obviously novice isvember is a young month. th is a big week for the s&p and the dow. we'll be back in a minute.

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financial advisors and their clients than anyone else. visit findyourindependentadvisor.com big broad retreat in fang today. amazon down 1.5%, netflix down 2. market cap lost on fang, dom chu said today, equal to about facebook at $600 billion in change. >> facebook is problematic when

you see these daily average. there's a lot of slowdown. but i still think it's a small position nice game, but dom has been doing excellent work on it everyday he does great work. >> dow is down 160 we'll get stop trading in a minute ry difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges. 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.

let's get to jim in stop trading. >> i add hhad an interesting exchange ben said erts is taken i said no, hertz looks good. what did hertz do? they had strong u.s. growth, fleet cost lower and may i add that it's a big position of carl icahn's? >> yes, it has been. it's been a painful position for some time but it's moving in the right direction now. >> i thought it was a good counterpoint to david's tweet interchange. >> that was fun to watch them talk. >> i've got to go back there. >> hertz has been terrible. >> it's been horrible. >> just horrendous. >> and there are those who wonder about the impact of uber and lyft, millennials and what they do when they get to the airports >> and scooters. >> scooters. >> uber is the number one name

on corporate expense reports. >> uber? >> really? are you serious. >> stuurpassed starbucks and delta. >> do you leave a tip on uber? even if the guy is throwing us out, i leaf you a tip. i got my game plan and my salute to the troops on monday and we have the eagles versus the cowboys "sunday night football." that's football in america and it's going to be some great gain and i will be there i wonder if attorney general christie will be there. >> he's a friend of the cowboys. >> sometimes in the box. >> well -- >> you're going to win, right? the eagles will win? >> i'm not betting on anything anymore. i just pick stocks. >> see you sunday night, jim when we come back, more of sara's exclusive with p&g's david taylor dow down 152

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good friday morning. welcome back to "squawk on the street." i'm carl kinlt knquintinilla, dd faber at post 9 at the new york stock exchange for the time being, dow is down 159, s&p down 21 for the worst losses of november so far. we have two pieces of data crossing the table we'll get to rick santelli for that rick >> september inventories, this is a final read which means that last look at toss. that number is up 0.4%, a tenth hotter than we expected. trade sales, that is the number, that's up 0.2% following last month's up .7. let's get to the money ball numbers. let's look at the november preliminary read on university of michigan sentiment and, indeed, this number is better than expected. it was looked to be around 98. it's 98.3. but sequentially it is a smidge

lower than 98.6. it is preliminary read so in a couple of weeks we'll toss it for the final read let's look at the inflation expectations, shall we 2.8 on the one-year, that's a tenth cooler than our last look which was pretty warm at 2.9% and the five to ten year inflation outlook is two-tenths hotter from 2.4 to 2.6 so if you blur your eyes and look at ppi, there is very little doubt that jay powell is monitoring a condition that is staying warm carl, back to you. >> all right, rick, thank you very much. rick santelli. our road map begins with crude getting crushed again as it dives deep interbesbee into bea territory. >> and stocks falling but still on pace for solid weekly gains a look at where to put your money to work is straight ahead. and shares of disney are rising at its profits soars, getting a boost from its studio business where is bob iger saying he's investing big? that's coming up first up, markets are lower

today, dow is down triple digits, down for the first time in five days as we said, oil falling deeper into bear territory, down 20%. investor ron baron joined cnbc and said he sees more growth ahead from stocks. >> i think the stock market will reflect the economy. i think in ten years the stock market will double, the gdp will double, stock market will doubl double that's what the stock market is going to do. >> the gobhappy friday b baron's time line is literally

50 years we tried to pin him down on a tighter cycle. where do you see in the market now that we're getting warm inflation and peak earnings. >> well, rates are going up and trade concerns. >> right now we're caught in a push pull. the good news ends in higher rates and valuations have come in, not necessarily cheap. so what gets us out of that. >> i think you would have to see sentiment hange. we always come back to sentiment. investor sentiment is okay people don't feel that good even though the data is strong. if you break it down by republican and democrat, but putting money to work is something clients feel nervous abou about. >> are you viewing the market through a prism of fading fundamentals but solid

seasonality and technicals like bye backs? >> yes, so the buyback window just reopened again and by some measures buybacks will be about 800 or 900 billion this year so it's a very big number. it will add probably 3% or 4% to earnings growth so it's certainly not something that should be underestimated but i think we've had this big earnings boom this year. third quarter actually ended up surpassing everyone's expectations at the beginning of earnings season everyone was worried that the jig is up. profit margins won't erode as labor costs rise and we're here at plus 25% year over year with 82% of companies beating by an aggregate of about 600 basis points but the market looks past that the market doesn't reward unsustainable big earnings spurts so where do we settle in for 2019 and 2020? if it's at 10% earnings growth and we have a 15/16 multiple and

the fed ends at neutral at 3% there's not a lot not to like about the stock market but there's a lot of variables because earnings growth could surprise to the down side, the fed could surprise to the upside and that's a different story. >> which way does the fed surprise when we're getting hot wholesale prices and cooler oil as we mentioned at the top. >> i think the fed is being refreshingly plain spoken. there's no justification to be below neutral which most people think is around 3% and i think the fed has pointed out that inflation can run a little hot north of its 2% target and

that's okay but i think what the fed is really looking at and what i am looking at is inflation expectation. so the five year forward tips break even has been steady at about 2% to 2.5% if that gets unanchored at some point, that will influence the fed and might force it to go beyond neutral to 3.5% to 4% there's no evidence that that's happening. the expectations are more important than where the inflation data are running relative to the fed's target. >> the rest of the world equity indexes haven't gotten as much relief as the u.s. they continue to lag is that telling us a story of a soft patch in global growth. can this divergence with the u.s. continuing to outperform? >> if trade concerns continue, which that is still very much a wild card, and the strong dollar

isn't help iing. it's been a very hard case to make to clients in the shorter run. >> has there been any discussion in your circles about the corporate tax rate and whether or not the president is serious about giving back those cuts to pay for different kinds of cuts? >> we think the one thing we know post-tuesday is we won't get a tax cut 2.0. i know that was obviously back on the radar, it's still in the realm of possibility but we're focusing on an infrastructure bill. >> and when you hear the term "fading fiscal stimulus" do you agree with it? >> it's interesting you mention that, generally the playbook posted my term election is that the market has its best year, that the first two years tend to be below average and presumably the reason for that is his that historically administrations have sort of back loaded the economic stimulus in order to

get reelected. this year i think it's been front loaded so i don't think that third year scenario is going to work this time. it wouldn't shock me if the fiscal stimulus continues but i think fading the earnings growth from the taxes and fading the fiscal stimulus that we're starting -- 2019 will see less positive effects of that than in 2018 that may take the fed out of the picture sooner which will be a positive so it remains very much a balance between the earnings side and the liquidity side and that's why we've been in this holding pattern. >> november will give us more to chew on in the next few weeks. have a good weekend. thanks. president trump making some comments at the white house before traveling to paris. he's going there to commemorate the 100th anniversary of the armistice. eamon javers is at the white house with more.

>> just two to flag for you here right now. one was on immigration and how the unemployment number relates to the need for immigrants to come into this country an interesting take here from a president who is seen as anti-immigration politically said something a little different today. here's what he said. >> we want people to come in through the merit system so that they can work for all of these great companies that i have coming into our country. we have many car companies coming in. we have many tech companies coming in. we have literally hundreds of companies moving back into the united states. we need people we need to have you see the unemployment numbers are at record lows. we need people in our country but they have to come in legally and they have to have merit. >> the president was also asked about a federal judge's decision

to block the keystone pipeline construction here's what he said there. >> it was a political decision made by a judge. i think it's a disgrace. it's -- 48,000 jobs. i approved it. it's ready to start and they went and i guess they'll end up going to the ninth circuit, as usual. we're slowly putting new judges in the ninth circuit everything goes to the ninth circuit. everything. >> and, guys, the president also attacked a number of people, including reporters who were there asking him questions former president barack obama, robert mueller, the special counsel. and he defended his choice, now, for acting attorney general, matthew whitaker, saying he didn't know matthew whitaker, although there has been reporting that whitaker spent quite a bit of time in the oval office as his role as jeff sessions chief of staff and saying he thinks whitaker will do a fine job as acting attorney general. but no comment from the president on whether whitaker will be his choice permanently for attorney general or whether

he will pick somebody else back over to you. >> eamon, thank you. eamon javers at the white house. let's look at shares of ge they are on their worst levels of the trading session so far. this after the most influential analyst out there, stephen tusa, says ge's recent earnings report was worse than expected on all fronts of course mr. tusa is one analyst of many who has an opinion, don't forget. that but it's the most influential opinion give than he's been negative for quite some time and, of course, more importantly has been right his focus is to a certain extent on ge capital itself and on leverage of the company and their inability to deleverage in the way that he believes they have said they would saying the clock is ticking, losses are running at about a billion and a half with a cash burn of three

billion. yes, the quarter was poised to break even but as per the 10-q and not discussed in prepared remarks is half a billion of gains. he says they're losing about a billion and a half on annualized run rate and it can get worse. with higher rates and a coming wall of refinancing as well. so simply put his belief to a certain extent is that the leverage there is higher than company's actually saying and giving the underperformance as well, the industrial business, he's saying normalized leverage, there's a $65 billion gap when we believe what is going to happen at gecs you're ending up at a large leveraged number which would point to a lead -- and he hasn't necessarily said this -- to raise cash i think the company itself would say something different. last week we had an upgrade from ubs in part because they simply think larry culp, the man who came in to run this company, is going to succeed in turning it

around and investors, though, taking a cue from tusa. >> it's this liability wall they're hitting and there's no real easy way around it. will it be asset sales >> but liquidity is not the story. >> and including the industrial business >> nothing going on positive, at least for some time. but we haven't heard anything from ge specific to this they came back to a certain extent with john inch's report that had a similar price target earlier this week. >> we'll keep our eye on ge. below nine is the big story. let's get back to sara eisen in cincinnati with p&g sara >> carl, good morning again. when we come back, we'll have an exclusive conversation with procter & gamble's chairman and ceo david taylor about the big

changes. biggest in 20 years. they say the outlook for the u.s. consumer and the state of the global economy, he's optimistic about it, including china. >> china with all the things i've heard about china and read about china, it's still the categories are growing. >> you don't see a slowdown? >> for our cegatories they tend to be high single digits, many high single digits your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach

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p&g has just announced a major shakeup of its organization and its corporate structure. it's dividing itself into six business units with their own ceos like beauty and grooming where they're responsible and accountable for everything, trying to make the company more nimble, more agile, more competitive and more innovative. so i had a chance to sit down with chairman and ceo david taylor and i asked him how big of a change this is. >> it's a significant move in the direction we have been moving two years ago, february 16, i talked about more moving in the big markets starting with the u. u.s. the same time we talked about in the smaller markets having freedom within a framework so we will be more agile in small markets. this takes it to a next big step at the same time it changes from

other things about how we staff and manage talent to reinforce this choice, to make sure we're more agile, accountable and able to win in both big markets and in smaller more volatile markets. >> does this mean you're throng your new board member nelson peltz? >> i listen to all my board members. we start with listening to the consumer but we also as we lead the organizational change, we did consult with all 12 of our external board members and we have a very active and engaged board and they've been active and engaged but any good ideas we'll take if it allows us to grow faster, that's a good thing. >> do you have regrets about the way the company approached that pocksy fight and fought so hard against him joining? >> no, i think it was important we established what we believed was right. p&g is a company about winning over time. and we're about doing it the right way. our value and principle has everything we do so when one challenges on areas we didn't think made sense we thought it made sense to stand up for what we learned was right

as we learned more and more and talked as often happens with dialogue, we're able to find common ground. and we listen to investors we believe you listen to your investors and other stakeholders >> you saw the best sales growth in years in the last quarter and investors are trying to figure out with that tough macroeconomic environment just how sustainable it is. >> to me, the best evidence i can give for sustainability is to look for two years ago, last year and this year what you see a consistent improvement in the number of brands growing, the number of countries growing which says we're doing in the a way that's sustainable. not by an aggressive pro notion a market or with a customer. it's by the superiority strategy that is substantive.motion in a market or with a customer it's by the superiority strategy that is substantive. better products so that if you use the product and brand and then go back to what you're using before you notice the difference so you come back. if the consumer loves it and he or she comes back that's a

sustainable approach we have to deal with and are dealing with things for an exchange environments, for a u.s. domicile company. because of oil prices and others over time they've come down recently in general commodity costs are higher and transportation and warehousing especially in the u.s. costs are higher. >> you think inflation in the broader economy will be a problem? >> there's not a lot of evidence inflation has grown a lot. certain categories are where imput costs have grown up a good bit. over time we will find opportunities through productivity to either offset or bring innovation where the consumer chooses to buy the new brand. we watch carefully if the value rate gogs down and certainly an aggregate will see what happens with inflation but certainly in the u.s. and in many countries it hasn't gotten

ahead of itself. there are more volatile countries where foreign exchange changed significantly and we have raised prices significantly. you are seeing escalating inflation. certainly places like argentina and turkey two markets we have a meaningful business >> the u.s., the consumer environment has been strong, spending has been strong do you see that continuing into next year? >> there's no evidence either unemployment or consumer confidence or any other macro factors that would cause me to lose confidence of the u.s. being a great market to do business in. it's one of the reasons why we're telling all of our category leaders we need to win in the u.s., which is why i take confidence in the sustainability of the strategy and the fact that we're growing share one month, three months, six months. getting our right in the biggest market is a strong statement on the sustainability of the action plan of the strategy. >> overall u.s. economy, fed's raising rates, does that feel appropriate to you >> well, they've raised rates a number of times but the absolute rates aren't very high but any

historical measure certainly we're concerned if it gets ahead of itself. that would be a problem. anything that causes consumer confidence to drop significantly or starts to weigh heavily on the growth rate of the broader economy would concern me. >> but you're not seeing that? >> not in a big way. our categories generally, the 10 categories we do business generally have been stable in the u.s. or slightly up, not down so i'm not seeing evidence the categories in which we do business, these categories are slowing down, when we bring information and do our job right, we can accelerate because that will be better value. that's true of olay whips, true of tide pods, true of discreet boutique, true of pampers pure so many of these are products that give you either a new form or additional benefits the consumer is willing to pay more for because they provide better value. >> you think the market is giving you enough credit the stock is still down this year and underperforming, the

broader s&p 500. >> you probably know as much as i do it's very hard to predict short run what the stock will do and what the market will do. i believe when we consistently deliver top, bottom in cash we'll get appropriately rewarded. >> to be fair to mr. taylor, the stock has had a very good run since may. it's up almost 30% that's on the combination of this quarter they recently announced and the fact the overall market turned more defensive, adding up to a flat year because of concerns about trade and the strong dollar and slower growth going into the year but procter & gamble has outperformed the broader consumer staples business and today's moves, what they're talking about, it's super charging that growth and staying more competitive in an environment where they can control things like the strong dollar and the cost inflation and the tariffs. those are impacting this global company that gets 60% of its business overseas. >> one thing they can control is where they put their ad dollars and we know they've made changes

to their strategy focusing on digital media and they made updates yesterday, right >> yes, so they're going to continue to put more money into digital media. it's something david taylor and i talked a little bit about. i said does that include amazon? yes. increasing money toward amazon i asked about facebook, actually, because he mentioned that was one of the places they see a lot of engagement and they are trying to reach the new millennial consumer, a lot of these big brands are i said do any of the privacy scandal worsery you or make you reluctant to put money into facebook for advertising he said he watches it pretty closely but, no, they still see it as a place to reach a lot of consumers, obviously, with more than two billion people on facebook instagram he mentioned, snapc t snapchat, twitter. so they continue to move those ad dollars there they're one of the biggest advertisers in the world so that clearly matters and it's part of their whole repositioning of trying to get newer innovations to the consumer faster and to a

younger consumer, something they talked a lot about. >> and sara, was there any sense of changes at all in the relationship between the big retailers? there's always been a sense of a pendulum swinging back and forth where the power sits maybe at times with the supermarket chains, the big retailers where they can squeeze suppliers like p&g? is there any change on that front or are they focused on making sure their brands outperform against the competition? >> they are focused on the relationship with the consume yrconsumer. a lot of these big companies, it was about the relationship other businesses and retailers and getting shelf space but consumers don't shop that way any more e-commerce is a huge part of the project and they've missed out because the consumer wasn't shopping the way they used to and they've missed out on

innovations in the way they shop so they're hoping by this structure where the ceo of all the business units are responsible for everything, including product innovations, distributions, bringing them to the market, how quickly, how they market that, that that will correct that so the focus is on the direct-to-consumer relationship which is a big shift for p&g but warren buffett talks about this all the time. retailers have power, squeezing them on margins and prices right now with procter & gamble and kimberly, if they're trying to raise prices and pass on cost increases, it hasn't happened yet so we'll see how retailers and consumers respond to that. it will be a big story in the second half of the year. >> that's a great point as we're two hours away from that ppi number we'll see you later this morning. sara eisen with p&g in cincinnati when we come back, crude continues its decline below 60 down for ten straight days plus, disney leading the dow this morning

why bob iger is going all in on digital when "squawk on the street" comes back

hi, everybody, i'm contessa brewer about 75,000 homes are under evacuation orders throughout ventura and los angeles counties from the woolsey fire that broke out thursday afternoon the city of malibu has been ordered to evacuate as well. the flames have burned some 8,000 acres and it's not at all contained. the food and drug administration says it will ban the sale of flavored cartridge-based e-cigarettes at convenience stores and gas stations nationwide. officials tell cnbc the announcement will come next week the move is a response to the alarming increase in vaping by minors. in melbourne, australia, a man stabbed three people, one fatally, in an attack police are linking to terrorism police say the man got out of a burning pickup truck and attacked three bystanders with a knife. the suspect, from somalia, was known to place. a rare pink diamond is expected to fetch between $30 million and $50 million when it goes to auction in geneva. the pink legacy diamond is the

largest of its kind that christies has ever sold. well, that provides a conversation centerpiece for the dinner that's cnbc. i'll send it back to you guys. mike >> thank you, contessa time now for etf spotlight jackie deangelis is looking at crude oil, now firmly in bear market territory down from its highs not that long ago. >> it's been rough 10 days of losses, gains for the year completely wiped out, bear market and it's been a bloodbath for oil. traders are talking art a short squeeze in this trade which is evident as you can see in this price action behind the move is the fact that everyone's pumping we've seen this movie before when opec and the u.s. overproduced, prices go down, especially a seasonally weak period for demand. this week the opec and non-opec producers will meet in abu

dhabi. that could push prices higher but not necessarily likely sources are saying if they give in now, they're handing a win to the united states. add to that this think tank study coming out of saudi arabia meant to test the market reaction to the notionover disassembling opec not saying it will happen any time soon but an interesting con september to think about here. the end result would allow many international producers with competing interesting to set their own policy that would be chaotic. but look at the etfs, the xop, the all lower for the weak and badly beaten for the month as well the energies screen, the stocks i watch, all red big oil, exxonmobil, conocophillips, chevron, look at the services, halliburton, baker hughes, schlumberger and the pipelines. this is very interesting, trans-canada, enbridge, kinder morgan a little nugget there, decision by a federal judge in montana repudiating one of the president's first acts in the energy space, to fast track the

keystone pipeline. this morning that ruling say nothing work can go forward until the government more fully reviews the pipeline's environmental impact back to you. >> thank you, jackie as we head to break, shares of yell reason plummeting, the online review company missing on revenue by slower-than-expected local advertising growth you don't often see a stock lose 30% of its value "squawk on the street" will be right back 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. shares of disney are up 3% after reporting earnings that exceeded analysts expectations bob iger spoke to cnbc discussing the company's

all-important content strategy. >> we're winning with third party licensing which already started so the product appears on our service and not third party services we're investing substantially in original content really against what will be all of those brands but we're making "star wars" series and marvel series and certainly disney series and pixar and original movies and well and then there will be thousands of hours of library product products. >> it's really the future of disn disney they don't give us a lot of detail on the cost, the spend, the return on investor capital the things investors want to know as they go head to head with netflix. >> they want a netflix multiple

on the stop or something like it and netflix doesn't have a multiple because it gets down into the details of what the distribution costs are it's about the vision. and i think bob iger has a good poi point. when you think about it, what is a netflix brand you can think of they don't have big brands amazon, same thing amazon has other advantages. there's room for another streaming service and disney will be the only one with many household names appearing there, starting with the disney brand itself but then the action heroes, the marvel, the pixar, that's going to be an interesting strategy to see how powerful the brand is when you put it into a stream package. >> you mean franchises >> franchises, exact. >> i not just a series title, in

other words? >> right. >> there's a lot of movies and shows under the marvel thing but when the marvel name is on it, you know what you're getting, especially if you're a young male and this is working amazingly well for them in the feature film arena everybody thinks feature films are cyclical businesses. how do you keep churning out hits i -- it's somewhat cyclical but disney's studio performance this quarter is phenomenal and -- a lot of that is this branded content they're putting out. it seems there's an audience that will go to a marvel film pretty much whatever it is because it's got the marvel brand on. >> it and that goes back a long way where iger said we're making too many kind of interchangeable looking romantic comedies, it could be a sony movie, it could be a fox movie but what's interesting is you named those franchises that were acquired and when pixar was acquired people said too expensive, crazy price, not much financials there marvel was considered too expensive. lucas less so perhaps because

they already established the path but in other words investors are used to looking at noisy financial implications of these big franchise deals and maybe direct-to-consumer, that's why they're getting the benefit of the doubt because they're already multibillion dollar spenders every year on content that -- >> well, what is netflix spending, $8 billion or something like that? >> on balance sheet but $12 billion this year cash. >> that's pretty capital intensive. >> you don't have a 100-year track record of a library. you have to go from scratch. >> right look, it will be tough for disney especially in the early going because you have netflix that is not looking at profit, it's looking at long term investment and has done so sk saysfully and the market gave them the benefit of the doubt. will the market give disney the benefit of the doubt maybe. >> i don't know that they're looking for as much volume as netflix. you heard iger refer to third

party distribution rights. they have to buy those in. it will cost them something but my sense is there's more the tent poles you're discussing the franchises will be enough that you feel like you have to have the service they may not have 100 different series at any one time. >> right and what they are doing is taking the strategy that has worked in the feature film division and they're move it into the streaming service building around the grounds, that raises a question about the fox acquisition which is not in the same intellectual property league tradition of the pixar, the marvel they're buying a lot of assets back, they're buying a film division, they make a dull, they make specialty things. >> they have avatar. >> avatar -- i heard iger talking about avatar that's the one big brand they have they have a whole series of avatar coming but i don't think you pay that many billions of dollars just for avatar. it will be interesting to see what they'll trying to do with

that to fill out their offerings with, like a dull independent oscar winning kind of thing, as an investor, i can't get too excited. >> just to quickly change gears to ge, jim, while we have you. it's 30 cents away from a seven handle what do you say now? >> it's astonishing. we're watching the slow-motion collapse of one of the great industrial companies of all time and i think -- i guess i've got to get busy but we have to get to the bottom. what happened in the immelt tenure, the plant of the seeds of this absolute disaster. and it's not like other industrial companies aren't doing okay what happened in this power business look, i don't know the answer to that but i thinkinvestors ough to be pounding the table to get to the bottom of it. where does it end? these numbers are terrible. >> and the work you do is on the

board of directors when i look back over the course of that period of time that immelt ran the company and have those same questions you have to wonder to what extent. i don't know that a board is capable of understanding or interjecting itself effectively in a complex company like ge i think there that's an example of how they can only go so far. >> this was a blue chip board, no question about it maybe they were lulled about the false sense of security of decades of predictable earnings at this company and investor praise but the fact is there are prisoners of the information they get and who controls the information flow the ceo. that's got to be part of this story. what were they told? do they get accurate information? do they get complete information? was information being withheld from them? what were they doing when they acquired the giant power business in france they've basically written the whole thing off. that's an astonishing misjudgment.

>> new board, new ceo and challenges at ge let's get back to sara who is in cincinnati with procter & gamble and a look at what's coming later on today. vary >> later on the closing bell i'll have more on my conversation with p&g ceo chairman david taylor that you haven't heard yet. you go deep into the trade issues where procter & gamble is feeling it the most. what his thoughts are on the entire administration's approach to trade basically he says trade wars are not good and he's worried about the perception of american brands in places like china. so we'll go into that conversation also his thoughts on the midterm elections and what it will mean for the global consumer in light of the big move this is company has made to reorganize its entire corporate structure that's later on in the closing bell see you then. >> sara, sounds good as we go to break, take a check of the major averages. dow session low is down 195 so about 70 points above that right

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housing stocks are having their worst year since the financial crisis but one strategist says it's a big buying opportunity, find out why on tradingnation.cnbc.com. more "squawk on the street" is coming up.

rick santoli live on the floor of the cme with my final guest of the week, the professor at the university of maryland, former imf economist, former federal reserve economist, former assistant secretary of treasury, quite a resume we'll get right into it. we had a hotter-than-expected ppi, up 0.5 p any quick thoughts on how that might play into yesterday's fed meeting, no rate hike and ongoing policy of tapping the brake? >> looks like the fed is locked into december, the ppi running

hot will help lock them in the creep eye next week probably will be a touch on the hot side. sometimes just a reversal from the previous months. for me, the question is what do they do in march >> digging down, one of the papers that i read that you penned started out with a line "all downhill from here. explain. >> we've had two great quarterers, over four, then 3.5% on gdp growth. i want to see business investment kick in and for the u.s. economy to sustain the growth, to sustain the upshift we have to take care of the impediments to growth. take care of those things so we

can get business investment back in gear. >> if i was an investor, here's what i'd be thinking, the fact that you think it be will be downhill, are these impediments over time if they slowly become less of an impedance to the economy and they get solved or worked out. >> if some of this stuff gets worked out that's fine. the trade war, we worked that out, we've come to some agreement with china that's fine. business investment can still kick in. we still have time it's not like it's sharply downhill from here i just want to see us do things so-to-sustain growth. >> professor, we're almost out of time. i look at oil dropping, every average american i know has a big smile about it it's not necessarily good for the investing community. all multinationals complained

about it with regard to fx, what are your thought? >> the strong dollar is good it's a sign of the strong u.s. economy. keep inflation low keep the of a strong u.s. econo, keep the fed low maybe into next year on net it is good with what it does to trade balance. >> i got you professor, thank you hopefully you'll come back many times. thank you for your first hit with us. david faber, back to you. >> thank you, rick santelli. now over to jon fortt with what's coming up on "squawk alley. >> hi, david is the relationship between tech companies and tech workers fundamentally changing with news out of google and amazon headquarters, an important question, we will dig in coming up on "squawk alley. man 2: it was environmentally contaminated. one of the biggest successes we had early on was entering agreements with the epa

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and all thro' the house. 'twas the night before christmas, not a creature was stirring, but everywhere else... there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event. the latest sign of stress in real estate. a growing number of estates are being auctioned off. one of the most expensive up for auction in hillsborough, florida, it looks expensive, robert just how expensive >> reporter: we're going to see next week. this will be the most expensive

home sold at auction four years ago it was the most expensive home listed in america for $139 million next week it comes for auction with no reserve, meaning there's no minimum bid the number of these multi million dollar mansions headed to auction has doubled in the last year because there are simply too many giant homes with giant price tags sitting on the market for years, and now the sellers just want to get a deal done we normally associate auctions with distress and foreclosures, but even now the most expensive homes are headed under the hammer. >> the trend for high end homes going to auction is definitely on the rise. we're seeing sellers call us, the phone is ringing more than ever before, especially in the 10 million plus, 20 million plus, 100 million plus category. >> reporter: some of the examples in los angeles a home was listed for $53 million, had a vast

underground tennis court, spa, pool sat on the market for years. just sold at auction for $23 million. half the price and peter lynch, viewers remember him from the '90s, he knows about buying and selling he is putting his arizona golf home up for sale after it has been on the market twoyears at $14 million. but this is the big kahuna of real estate auctions it is 58,000 square feet, 11 bedrooms, 22 bathrooms the pool behind me alone is 150,000 gallons, sits on five acres, and the best part is the ocean views. it has got 500 feet of ocean views. if that's not enough, just behind the other side of the house, you have not one but two yacht docks. this house will sell no matter what the highest bid, next week it will be interesting to see how the market resets based on

this price guys, back to you. >> robert, is there any way to identify a pattern in terms of who tends to buy at these auctions isn't somebody that's going to want to live there or investors, sp speculators involved >> reporter: it has mainly been real buyers. again, back in the crisis, we thought of auctions, big investors would buy pools of these, this year, concierge auctions has a database of 500,000 buyers, sellers, real estate contacts. they're real buyers that are around the world looking for a deal and this house again listed at 139, will be interesting to see where the highest bid comes in >> the other thing, robert, clearly the psychology of the auction, concentrating interest matters as opposed to continually cutting the price? >> reporter: absolutely. that's a key point, mike, because a lot of the sellers are

not financially distressed but they want the capital, they want to move on maybe they take a little hit relative to where they thought they could sell at, but they want it done and want it done now. this will sell next thursday no matter what. and that's a big deal for the seller. >> what a live shot. thanks for bringing that to us, robert frank when we come back, tom mcclellan tells us what's the most important stock in the market with the dow down 180 obvious. sometimes, they just 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. cme group - how the world advances. ♪

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