here's your top five at 5:00 can we bounce back futures pointing to a jump at the open after yesterday's 600-point free fall on the dow don't say we dent tell you amazon set to name northern virginia along with new york city as the home for its h q2. california remains on high alert as a string of deadly wildfires tear through the state. crude oil down again now on its longest losing streak ever and the keebler elves evicted. kellogg looking to go on a bake

sale that stock is on the move this morning. it's november 13, 2018, "worldwide exchange" begins right now. ♪ good morning i'm brian sullivan we have to begin with money and markets after yesterday's 600-point drop on the dow. futures are up 55. listen, it's early anything can happen. most major indexes down three sessions in a row. technology was a big story five sectors are in correction that means they're down 20% from the highs what about the bond market are we seeing that flight to safety sell stocks, buy bonds, all you want is that safety for your money. ten-year yields alt 3.16%.

that's not that high generally bonds are going up, yields come down 3.16, that's a level to watch. let's go worldwide now it was ugly in japan overnight the nikkei down big. the nikkei down 2% hong kong did come back a bit with the shanghai. it's a rough go for the japanese market the european trade, they're live early in europe we're seeing the moves and a mixed market maybe a little good news here. but it all comes down to our futures. you also have to watch oil falling again right now. if it falls today, it will be the 12th straight negative session for crude oil. already, by the way, crude oil on the longest losing streak ever down 11 straight sessions. that's never happened. crude oil down 2% now. 58.62. the upside is gasoline will get cheaper. we're keeping an eye on big cap technology big cap tech, the f.a.n.g.s and

other names were the main drivers of yesterday's selloff the good news is kind of a mixed trade right now. again, very early. not a lot of shares exchanging facebook and netflix and amazon up a bit apple and google's alphabet down just a bit the apple suppliers also under pressure this morning. so there you go. down 2%. look at japan display, told you about the japanese stocks getting whacked, down 9% tough go for technology. let's find out what to do. joining us is mark avalone you seem like a calm, rational guy. i don't see a lot of panic on your face what are you advising your clients to do >> i think when you look out at the global economy and some of the challenges that we face, whether it's this italian budget crisis in the eu, the china tariffs, their slowing economy, there are reasons oversees, the slowing global growth, there are

reasons overseas to be concerned. back home it is strong, the underlying picture is strong if it stopped there we would say invest as usual. be positive. the challenge is we have a hawkish federal reserve tone that needs to change as long as jerome powell comes in heavy handed or threatens or continues to threaten continued rate hikes t c, it can run the e pillar of economic strength that we see that's where we have the concern, from the fed. >> okay. so what do we do >> if you're a llong-term investor, this could be another blip in a continued bull market. no one is signaling the end of the bull market. investors have to remain calm. i always said emotion is the enemy of the investor, far more than a bear market bear markets are to be expected. i think the fed will come around the u.s. is one of the strong economies in the word. in their hands they could single

handedly bring it down i don't think they would do that >> do you think the fed changes its tune and its course of rate hikes given the market volatility or do they not care about the stock market >> i think they raise in december they signaled that they have to they don't want to look like they'll change to the president's tough tone i don't think they pull back and run and hide from that changing the tone, slowing the pace in 2019 would be bullish for stocks who knows, the talks right now between mnuchin and his chinese counterpart could set a nice tone for stocks. if we see that we see a huge comeback that's why you don't pull out right now because the headlines are bad, it feels bad, and it does feel bad. right now i think the u.s. strong economy keeps the bull case intact. >> you just said it, you think about the president's semi criticism of the fed. even if the fed wanted to not raise rates in december, maybe now to your point they have to

simply because they look like if they don't, that they are caving to the president, even if they actually really did change their mind >> what a shock the president might say something that comes back to haunt him. he's done the same thing with opec telling them, hey, we need you to increase production nobody wants to look like they're giving in to the president's rhetoric the same thing with the china tariff story he's done a lot of great things for the stock market, especially with the tax cuts, the rollback of regulations, it's the top line talk that seems to bite him once in a while, hurt investors and throw a monkey wrench where it doesn't belong. the u.s. economy underlying is still strong let's have that come through as the leading story. tone it down with china. hopefully the fed will come around, then we can go back to making money in stocks >> there we go a lot of hope out there. mark avalone, hope you have a great day. >> good to be here

>> new this morning, amazon reportedly set to name two major cities home to its new hq2 or 2 and 3. bertha coombs has the details. >> sources are telling cnbc that amazon is set to make that announcement as soon as today. it will split its second head quarters between the new york and washington areas, specifically crystal city, and long island, new york. amazon said they would also make an investment in a third city. that would cap a year-long beauty contest that received more than 200 bids from cities and states amazon said it would spend more than $5 billion on that second headquarters and would hire 50,000 workers crystal city could put it in

line to win a massive cloud computing contract that the pentagon will award next year. amazon already has about 2500 employees in the d.c. area this would certainly multiply that they also have roughly 1800 workers in advertising, publishing in new york long island city is a former industrial waterfront and it benefited from a push to reposition new york as a top location for digital industry in the wake of the financial crisis neither new york or northern virginia officials have disclosed how much in tax breaks they have offered amazon you have to imagine it will be a lot. i have to wonder, people in long island city, which has been a rebirth area here, a whole new city area, they have to be bracing for just how much more crowded it's going to be on the 7 subway, which also goes out to met stadium. it will be a crowded area if you get some 25,000 amazon workers >> it will

our reporting earlier a couple weeks ago said the d.c. area is likely to have transportation sweeteners as well alexandria not a free flowing traffic area as well just a touch of traffic on the be beltway. now to your top three stock stories. boeing reportedly withheld information about the potential hazards associated with a new flight control feature that may have played a role in last month's deadly jet crash in indonesia. the auto stall prevention system on 737 models can in some cases push the plane's nose down so strongly that the flight crew simply can't recover safety experts say u.s. airlines and pilots were not told that feature was added to the 737 kellogg is exploring the sale of its cookies and fruit snacks businesses, that includes brands like keebler. the company will focus more on its core business like cereal,

morning snacks and frozen foods. bayer reporting flat growth in the latest earnings positive sales of its heart drug were offset by weakness in the animal health business the company also says it faces more than 9,000 losses related to its roundup weed killer which is acquired through its purchase of monmonsanto. coming up, two major events that could impact your investments in a big way we're live in rome and abu dhabi. and later, facing the facts. why one market pro says f.a.n.g. is dead and those stocks are never ever coming back he'll make that case when "worldwide exchange" returnsit'e right before our eyes, aging is unleashing exponential growth... ...in every industry.

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and ask how you get xfinity mobile included with your internet. plus, get $200 back when you when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. welcome back if you are just wakinging up sh, we have good news and bad news. the bad news is the markets are not going up more than we hoped, but that they're up in general five sectors are now down more than 20% from their high oil is a slow-rolling disaster dow futures are up 50 points, but on a market of 25,000, that's a hair. anything can happen. there are two big global events that may have an impact on what you saw. first one is italy that nation facing a big budget deadline, and that deadline is today. willem marx is standing by in

rome and oil, as we mentioned, crude oil down again this morning. now on its longest losing streak ever let's begin with hadley gamble in abu dhabi you have the mood, you have the feeling, you have crude oil below 60 bucks a barrel. >> no doubt. this is a mood of extreme uncertainty over the last couple of days. this is day two of the conference, 10,000 delegates are gathered here. one question on everyone's mind is when will this bad luck for oil discontinue. we've seen 12 days of lower oil prices the longest losing streak ever in the oil markets last week, we saw oil prices tumbling as much as 20% from the peak highs a lot of folks on the sidelines are asking what will opec do about this we heard from the energy minister from saudi arabia on sunday saying essentially that saudi arabia is ready to wipe off 500,000 barrels per day off the markets by december.

a lot of folks are asking whether other opec countries will do the same and a bigger question, the future of opec we even heard donald trump again and again questioning opec's strategy, questioning what they're doing in terms of the price volatility people here are beginning to talk about a future without opec a lot of questions on the table. a lot of uncertainty about the price. a lot of people won'teri ewonde whether the opec countries will come ahead before the next meeting and do something about the prices >> on december 6th we'll be at that opec meeting, but the idea that the russians and saudi arabia have created maybe a mini opec, a bilateral commission for oil, whatever the name is. that seems to be the counter balance to just increased u.s. production >> absolutely. it's going to be interesting

you have to wonder how long this agreement between saudi arabia and russia that we've seen growing over the last three years, this economic diplomacy, the ability for these two countries to come together on prices and ability on policies to stabilize the market, how long that will last. it comes down to how long it benefits both of these countries. it will certainly be front and center when we gather in vienna. >> we look forward to that hadley gamble, thank you very much let's turn to italy. the italian government facing a major budget deadline today. italy the underwer formperformen europe right now it's the only market in europe that's down. that market has been a difficult one. willem marx is live in rome with more on italy's budget deadline. >> that's right. it's been three weeks since the european commission demanded the italians revise their draft

budget proposal this is something all eurozone countries have to do, submit the details of how they plan to spend and tax their money over the following year to brussels the european commission says whether they like the plan or not. unusually they've said to the italians we're not happy with this this is the first time ever they've done this with a member, please send back some revisions. all the italian politicians here say that won't happen, essentially they're not willing to budge on their plans to introduce a basic income and on their plans to cut taxes for self-employed workers. the deadline is tonight midnight i'm hearing from people inside the ministry of finance behind me that they won't be having a meeting with the top principles, the deputy prime ministers, the prime minister and the economy minister until around 8:00 p.m. local time it won't be until after that that they send the details to brussels

>> willem, what comes next what's the next move in rome >> essentially if the commission comes back and says you guys haven't done what we asked, they can start a process that will lead to billions of euros worth of fines you have these two coalition parties in a partnership inside the government at the moment everything is pretty friendly. if you see that commission come back and say this will cost you billions of euros next year because you're not playing ball with our stability and growth rules, you could see more tension between the two parties. one man i spoke to last night, a senior economic adviser to the five-star movement, he told me it doesn't matter. you can reshuffle the cards at the table. you could have another election here, you would end up with the same parties back in power with some of the same policies and same spending plans. >> willem marx live in rome, thank you very much. that is a big story. i knows there a lot to follow,

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futures are starting to lose steam. the dow was up triple digits on the futures, up about 63 keep an eye on those futures

markets. it could go anywhere we could see a change throughout the morning. we continue to follow a more developing story on the west coast, that's the death toll that's rising as wildfires tear across california. jay gray is live for us on the ground with more on these devastating fires. jay? >> yeah, brian these fires, three major blazes burning across the state have claimed 44 lives to this point there's concern that that number will go up we're in oak park, one of the first neighborhoo hd hoods outsf los angeles affected by the fire you can see the devastation those flames left behind with the santa ana winds kicking up, there are some who fear we still may not have seen the worst of these wildfires as the california wildfires continue to burn out of control, fire teams battle the flames around-the-clock, pushed to their limits by the intense

conditions including gusting santa ana winds. >> the winds pick up to 50, 60 mp minneapolis a miles per hour and it looked like it was snowing, which were embers flying. >> we continue to respond to every new area with equipment to keep the footprint small. >> the areas chewed up by the hill fire, the woolsey fire and the camp fire all continue to grow >> it's gut wrenching. >> reporter: unrelenting a firestorm swallowing entire neighborhoods. >> it was a tornado. it wasn't going like this. it was swirling. >> reporter: extreme conditions expected to continue for at least another full day here. and again those winds really picking up right now

it's going to take a lot longer obviously, first to control and then ultimately extinguish the flames, then, brian, the difficult process of recovery will begin it's going to be a tough go. >> we see these amazing videos some of them are good news, families getting out with their children and belongings. how much warning did any of these folks have are the winds that fast that you think the fire is miles away, and the next minute it's right on you >> yeah. that's exactly what happened that's why unfortunately, brian, so many of these victims have been found inside vehicles trying to make the escape and just unable to outrun the flames picking up those embers, throwing them for miles in every direction as these winds swirl and at one point pushing the flames so fast that the winds were near hurricane speed. difficult to outrun something like that. >> any rain in the forecast at

all? >> not a drop. and that's the biggest problem we're mired in a drought here. it doesn't appear that that will change any time soon >> jay gray out in california, appreciate it. thank you very much. >> thank you. up next, it is back to business and some biz news this morning from amazon. the company ready to announce two maker cities as home to two more headquarters. and later on, kicked to the curb kellogg may be ging ivits keebler elves the boot

wall street pointing to a slightly higher open following yesterday's 600-point selloff. we'll tell you what's driving the action and give you all the numbers after tough day yesterday. amazon reportedly set to name two cities for two new headquarters hq2 and 3. full details coming up. >> crude oil just did something it's never ever done before. we'll tell you what that is you're watching "worldwide exchange" on cnbc. ♪ welcome back in. good morning here's what's leading cnbc.com amazon may have found two second homes. the retail giant is set to split

its second north american headquarters between new york's long island city, queens, and the washington, d.c. area as we reported two weeks ago the amazon announcement expected later this morning keep an eye on shares of bowing the "wall street journal" now reporting that the company reportedly withheld vital information about potential hazards associated with its 737 max 8 and max 9 planes that's the same kind of aircraft that crashed in indonesia last month. the journal says the planes have a potentially dangerous feature that under unusual conditions can push the plane's nose down so strongly that pilots cannot recover. kellogg is exploring the sale of its cookie and fruit snacks business. the company plans to focus more on core businesses like krecere morning snacks and health foods. let's check in now with

phillip mena in new york >> a maker win for the democrats one week after the midterms. nbc news has declared kyrie sten simena as the arizona stat seat w senate seat winner. president trump is reportedly clearing out another cabinet member according to the "washington post," the president told advisers he's decided to oust homeland security secretary kirsten nelson the post said they were told by several former and current white house officials that the shakeup could come in weeks if not sooner the president is reportedly disappointed with her immigration enforcement. opening statements are set to begin today in the trial of the accused mexican drug lord, el chapo he will stand trial in new york city with an up precedentedprec

unprecedented amount of security he allegedly is behind dozens of cartel deaths. the trial could last for months. brian, back to you >> not a jury probably a lot of people are volunteering to be on thank you very much. we showed you futures here, slightly higher. what happened in asia overnight? it was tough in japan. japan, another 2% decline for the nikkei 225 a better story in asia in china, the shanghai and hang seng did rise. italy, major budget deadline faced today, that market again the weak spot. let's find out what else you are going to be talking about today. time for the top trending stories. bertha coombs is back with those. hollywood stars taking to

social media to pay tribute to stan lee the comic book legend was best known for creating black panther, thor, spider-man and the fantastic four disney ceo bob iger said stan lee was as extraordinary as the characterers th characterers that he created chris evans tweeted in part there will never be another stan lee for decades. he provided young and old with adventure, escape, comfort, confidence, inspiration, strength and joy chris hemsworth took to instagram with an image of lee in thor's traditional helmet he said thank you for your incredible adventures your stories took us on stan lee was 95 years old. he was pretty amazing.

i'm glad he got that recognition later in life. i wasn't a comic book person -- >> i have thousands of old comics >> he was always a legend, but later in life for the rest of us >> a very unique way of drawing. he with you an artist. he's one of the leading artists. a blocky style, but it's unique now. i'm a comic book geek. don't judge. >> i don't woody, buzz light year and the whole crew are getting back together in the release of disney's first trailer for pixar's "toy story 4." all the old favorites are making a comeback, including mr. and mrs. potato head but there's a new toy in town, a spork named forky. >> huh >> i don't know what a spork is as a toy >> you know what a spork is. >> yeah.

but as a toy >> listen, when in doubt, you could -- >> i guess >> maybe that was just me flinging stuff >> maybe it's like when you give your kid a toy and they play with the box instead >> yeah. you can fling stuff with it or eat. >> yeah. i don't know that we want to be encouraging that from toys to tide. twitter users are buzzing after the release of the new detergent dispenser. following the tide pod eating controversy this year, now users are saying this dispenser looks more like boxed wine than a laundry detergent dispenser. do not drink this. i hope this does not become a challenge. >> no. cheers kidding. kidding. it's blue, by the way. don't drink blue as a general rule, don't drink blue let's get back to the market action green arrows in europe except forever italy.

joining us is christian keller to talk about the more macro view when you agreed to come on this program you probably didn't realize the dow would have fallen 602 points on the day prior. how much, if at all, do these kinds of market swings and recent volatility change your economic forecasting >> i think mostly it's affecting the view people have on the fed. monetary policy has to consider how much further they're going to tighten they will have seen the swing of the market the markets probably have seen what happened to ppi, cost pressures on inflation, that's probably what affects peoples perception of the fed, how much they can do further. it affects the dollar. >> okay. what do you think is the most important of the things that you just laid out there, which one or two do we need to be digging into and focusing in on the most >> i think, you know, people

will have noted the dollar basket now has reached a high in mid '17 even though the u.s. is much more close of an economy than europe it, it will effect earnings overtime. people will be concerned if we have a situation where the u.s. decouples further, particularly with regard to inflation and monetary policy, you see dollar consistently rising further, possibly going beyond the 100 in the basket that is probably concerning equity markets at the moment >> you have to factor in the fact that especially for the dow -- maybe not the smaller caps in america, they sell stuff. the s&p, about half the sales are around the world how much does a stronger dollar impact those numbers and the stock market >> yeah. this is, in a way, what people are fearing. you have the dollar combined with potentially higher tariffs. this is in a way what markets to

some extent have been ignoring we have a lot of tariffs that could be coming up or going higher in general. so far we have not seen the fallout from the chinese tariffs, which could be going from 10% to 25%. possibly could be broadened to include another $26 billion of imports from china these things are things markets are considering. midterms are over. team are wondering about growth, could it weaken as we project in the second half of next year, et cetera. >> i know you're not an equity analyst. i want to -- we keep asking people when markets go down, why is the market falling. why is the market falling. i want to flip it. the stuff you laid out tells a different story. the dow is up 2% this year not a great year, still higher in the face of the fed raising rates, the fed deleveraging the balance sheet, the dollar rising and tariffs and a trade fight out there.

is there a way to flip the script and say, wow, it's kind of amazing we're still slightly higher given everything that you just laid out. >> actually i would add to this. the dow is higher with almost every other index around the world being lower. people invested in china or the dax have been suffering. clearly the u.s. stands out, even though in recent weeks we had a lot of retracement look, i think overall i would still think the u.s. equity story is a strong one. earnings have been good. the economy is growing at 3% there's been deregulation, tax cuts i wouldn't say it is fully unjustified. yesterday i had a discussion with robert shiller, the inventor of the cape index we had a discussion with clients. he said the ratio is around 30, it could be falling down, which indicates we're not overheating. there's no risk of a bigger

crash, but it's an elevated ratio. markets have come to that real saig, maybe now we're in a more normal environment where expectations for future earnings have been adjusting. at the same time there's no reason to fear that there could be a bigger crash going forward in the u.s >> christian keller of barclays laying it out very clearly appreciate it. thank you very much for joining us all right. coming up, crude reality oil in its longest losing streak ever we'll talk more about the price of oil good for gas we'll show you gasoline prices around the country as you head out, here's how your day on wall street is shaping up futures up just a bit. 70 points. nasdaq up as well. a little green on the screen we he ava long way to go

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. futures trying to squeak through a comeback up about 80 on the dow a 602-point drop yesterday 5 of the s&p 11 sectors in correction down 20% from the high many of the f.a.n.g. and big tech stocks are in correction or close to it. i guess given all that, having a 79-point jump on the dow for the futures is comforting. things change rapidly throughout the morning. oil prices have not changed. they have changed, they've come down crude oil has fallen for 11

straight sessions. that's the longest losing streak on record. let's bring in arcngelie rival >> hi, brian >> what are you hearing about any possible reaction to these rapidly declining oil prices >> i think everyone is watching for what opec's reaction will be there's been a shift in terms of language, what they're saying around oil prices, oil policy, particularly since the u.s. granted waivers to big buyers of iranian oil. i don't think the saudis expected them to be so widespread the market is looking like it will be a bit more oversupplied than people thought. yesterday you had the energy minister of saudi arabia saying that their analysis shows that you could need to cut a million

barrels a day. there's a big question about whether or not they can get their russian allies on board. russian producers and people from mill y familiar with their spending plans tell the ft they want to increa increase supply. so let's question on will they can get a deal >> how important do you think that is? how much mojo, how much power does opec have right now >> they're extremely concerned about what they're seeing with the price falls. particularly saudi arabia needs higher oil prices to fund these big social and economic reforms. and they're also eyeing a potential slowdown in the global economy. they're worried that currethere currency crisis in emerging

markets. places like india are extremely price sensitive, and they're worried in the end they'll end up suffering yes, they probably need to rein back some of that i supply in june they decided to relax some of the supply curbs, now within run session, between the last big meeting and the upcoming one they may need to reverse tact again >> and you have president trump saying increase supply, pump more oil the saudis effectively did now here's where we are. i guess we have to flip the script again the reality is this, lower gas prices are great for the american consumer, they are not good for highly levered oil and gas companies in texas and in north dakota who have a lot of debt outstanding >> last night even donald trump came out on twitter again and said i hope that saudi arabia and other opec producers don't, you know, decide to rein in their production

but if you were saudi arabia right now you would be feeling a little bit like the u.s. just stabbed you in the back. the u.s. promised big, sweeping sanctions on iran, the arch rival of the kingdom, in the end it was more luke warm than people realized. i wonder how quickly or how much opec producers this time will react to donald trump's tweets and the pressure he's been putting them under this is what actually took producers into the june action because they were under a lot of pressure from the u.s. now that midterms are over there's a question over how much are other producers going to be listening to donald trump. >> that is the question. by the way, natural gas is on the rise personal question, because you were on that trip where we did the helicopter evacuation training, went under the oil rig. you want to do the cold water course another two days in the north

sea perhaps? >> colleagues have been saying i should head to the north sea next i may give it more time. i'm glad i came out safe and so did you. >> we pulled through we'll always have robert louisiana. thank you very much. >> all right up next. a tech takedown, why one market pro thinks the f.a.n.g. stocks are not coming back. they're done forever we'll debate that and today's rbi has everything to do with oil. everything to do with gas. how much you are paying?

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the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. t.rowe price. invest with confidence. dow futures up about 80 points now, coming off a 602-point drop yesterday it's been a tough run for some stocks this is an ugly chart. this is five sessions of trading. caterpillar down 3.3%. that's bad apple, down nearly 5%.

that's not good. look at that, goldman sachs, gx gk goldman sachs is down just under 10%. the prime minister of malaysia telling cnbc that gold maman cheated his country over the state fund that is at the center of corruption and money laundering investigations. billions went missing from the fund the prosecutors filing criminal charges against two former goldman sachs bankers earlier this month i'll tell you what, i finished the audio book "the billion dollar whale" by some "journal" reporters that broke that story. i don't know these guys who wrote it, check out the book if you think madoff was big, if they're correct in their reporting, it makes madoff look like a pimple. that could be the greatest scam of all time. time to find out what's coming up on "squawk box." joe kernen, dow down 602 yesterday. markets front and center

>> i think we got one of the guys on. not j.lo, jolo >> that's not who we have on >> that's not his real name. >> no. you cleared it up for me it's 1mdb. >> it's 1 malaysian sha developmedevelo development bank he got his friends to fund this. i know he lived -- he had it going on >> threw parties like you. >> on his first date with miranda kerr, he gave her a 1$12 million necklace >> you can find anything there

cast members that the different brian, i repeat, oil, i'm worried. apple is 920 billion now it's not a trillion. leadership seems a little scared cramer is depressed about the day yesterday, not having anything really positive in it a little bit worrisome if we knew how to control the supply of oil, why didn't we always do this if it has nothing to do with demand, if it's easy to take it down 20% in a couple weeks, i don't know it makes me worry it's not just supply and that the -- >> how much of it is because of the president's tweet? saudi arabia -- >> can he really do that >> saudi arabia, because of the khashoggi incident, is in an unusual position and may be more open to pressure from the president at this point. >> maybe >> can we just take a step back

and realize that the markets, the dow, the nasdaq and the s&p are still higher this year >> yeah. >> seems hard to believe, but we're still up >> we were talking yesterday about, you know, what causes us to pull out all the stops and decide this is a major market day. and 600 points is a lot, but just barely -- just over 2%. the nasdaq was almost 3% we got to recalibrate. we have to keep everything in perspective. talking about home depot today they're always -- they don't miss much. at least in recent years since frank blake got back now we have the new guy. that will be interesting right in the "a" block we'll have an analyst talk about that. maybe not the "a" block. as soon as we have the results, brian neagle will talk about that >> i'm joe kernen with your top

headlines -- you know i'm on in the taxi cabs? one of us is on every day. >> you're big in taxis >> it's all uber >> no, it's taxis. >> let's bring in peter boockvar goldman sachs, you have the 1mdb thing here investors don't care what's going on with goldman necessarily. goldman sachs is the third expensive stock in a price weighted i dex index. it matters a lot >> we see that a lot, whether the news is large or small, violent reactions. i don't know what will come of this situation with malaysia, but i can't imagine it just fije a 10% drop in stock. >> let's talk about why you're here you say the f.a.n.g.s are dead >> the trade is dead the f.a.n.g. trade as one group

is dead. you have to look at these stocks individually they're no longer leaders of this market. the market will have to come around to new leadership >> why do you say that >> you look at apple growth rates have changed. smartphones are the biggest contributor to their profitability, that's flat lined. facebook is having its own issues netflix is doing fine, but profitability is now under more of a microscope now as we get into a difficult market environment where investors will start demanding profits in cash flow instead of giving companies a free ride. we have to look at these companies as an individual group and evaluations, when you have the trillion dollar evaluations -- >> not anymore >> but what's left when you get to that kind of evaluation >> netflix, the chart is ugly, still up 53% if you owned netflix a year ago, you're still happy >> same with amazon. >> chart looks bad now

>> these were the leaders of the market now there's chinks in that armor. >> we talked about the fed, fed delevering, oil. main thing that you're going to be watching now? >> the next two weeks, clearly the trump/xi meeting >> steven mnuchin, some talk this morning about china we'll see if these trade talk things can move the market >> there's so much internal american business pressure on the administration that they're now beginning to come around to him. >> beater boockvar, always a pleasure >> thanks. we told you oil on pace for the longest losing streak ever what does that mean for gas? you don't buy oil, you buy gas according to aaa, the national average is 2.68, that's up from a year ago but down from last week good news for oklahoma, if somebody asked you who pays the cheapest gas, oklahoma, 2.30 the most expensive, alaska or hawaii hawaii, hawaiians on average

paying 3.88 per gallon for a gallon of gasoline there you go those numbers should come down ilas o continues to slide. thanks for watching. "squawk box" is next 7pgñóo

. good morning dow futures pointing to a slight rebound after yesterday's 600-point selloff. we'll run through yesterday's big losers tech was awful apple. goldman sachs, we'll run through it all. home depot set to report any minute now we'll bring you results and reaction on wall street. we have analysts already sitting here amazon expected to announce today they will build additional head quarters in new york and northern virginia, but new reports that it may invest in a third city details straight ahead

it's tuesday, november 13, 2018. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. we'll start this morning with the markets. the dow dropping by 600-points yesterday. it got dragged down in the close. all session long it was dogged by apple negative reports coming in from one of apple's iphone suppliers and by goldman sachs following new reports about the bank's possible connection to a massive fraud scandal in malaysia. more about those two stocks in a moment let's check out where the u.s. equities are shaping up. futures are indicated in positive territory dow future