it is 5:00 a.m. here at cnbc global headquarters. casting a shadow from the west wing to wall street. peloton becomes the latest unicorn to fall short as another pulls the plug facebook preparing to send sand burg back to capitol hill. and shares of one tech company falls sharply. the rbi you have got to hear

can netflix latest bet be enough to turn around the stock we've certainly seen stranger things it is friday, september 27 "worldwide exchange" starts now. ♪ >> good morning, good afternoon, good evening i'm brian sullivan our motto is always, you can have your cake and eat it too. some of this year's moat notable ipos and performance since debuts smile direct down 44%. lyft, and uper down, slack, down peloton is down. not a pretty picture

something we'll be talking about. more on that coming up that is just a small slice ofov overall market futures gaining steam. they are up 70 points. we say we are within 2%. we are the dow is 1.8% from all-time highs. eight of the dow 30 have hit one year, multiyear or all-time highs this month eight of 30 hitting that high in the bad month of september we are seeing a mixed trade in asia shanghai up, japan fell .7%. rosier in european markets europe kind of plugging along. they are gaining .4, .5.

now to the place that is driving the news that is driving stocks, that is washington it follows an avalanche of developments over the call with the ukraine leader we have more from d.c. with the latest good morning >> good morning, brian with 225 represents, a clear majority now supporting some impeachment action the president is on attack going after democrats, journalists, even the whistleblower this is some of what he had to say when he arrived back in washington >> it is a disgrace. a terrible thing for our country. they can't do any works. they are frozen. they are going to lose the elections that why they are doing it it should never be allowed

what's happened to this president. >> signaling that this inquiry will be narrowly focused on that whistleblower report and they say it could be wrapped up in a few weeks. they feel they gained momentum with the release of the report and with the house intelligence committee hearing with the acting director of national intelligence joseph mcguire. he had to explain why he delayed turning over that report and whether he agreed or disagreed that the whistleblower was credible >> i realize the importance of the matter before us this morning. i thought it would be prudent for me to ensure that it met that statute before i sent it forward with client with the whistleblower protection act >> republicans continue to

support the president denying anything contained in the report rises to the level of needing an impeachment inquiry saying the whistleblower did not hear things directly but was relaying second or thirdhand information. >> thank you for that. the trade fight still firmly in focus sources telling us trade talks will resume on october 11 in washington chinese vice premier will represent beijing. he recently gained the title special envoy that empowers him to negotiate directly on behalf of president xi. how will all of this impact the markets and your money as we

close out the week what does history tell us about where stocks may go? joining us now, our guest. you heard me jeff talking about that september is usually the worst month. we are on pace for being the best month this year whachlt do you make of that change of calendar momentum? >> it has been pretty depressed since may. we had a lot of selling in august the fact that september is holding up is not a horrible sign doesn't mean october will be great. that is not necessarily a great month, es sp lshl i in preelection years. >> that december through may period is historically the best. >> november through april.

>> so it feels like we've got a little momentum heading into what is historically the best period for stocks. >> it has been, watch out for october. you've got the deadline for mutual funds we've got that prophecy of october. lots of crashes and news and noise. >> mutual fund managers, most of them, their fiscal year ends october 31, so they have to make adjustments. >> and that impacts october. >> what do you see going forward? >> i'm looking at 2850 on the

s&p. fundamentally, gdp settling down bulls are up 55% bears are jumping into the bull camp some what frothy here again before the last pull back. it sets up for a nice little shake out and another rally in the year end >> you see another rally >> they put out their big 2020 call if you missed it, they saw dow at 30,000 and s&p 3,300. >> it caught our eye yesterday >> thanks for watching what did you think of that >> he's somebody you don't necessarily go against

when somebody who has been conservative for a while becomes bullish, maybe he's jumping into something too. >> do you think he's wrong >> regardless of the news it is much more bullish. we have a gain when the sitting president is running >> 1868 johnson was impeached. >> i was reminded by 6 million viewers. two things i said wrong. nixon was not impeached. he was like, basically, you'll be impeached tomorrow. i'm out. >> it was a respectful move.

the market bottomed a few months before clinton was impeached with more data points, the election and the power a bit stronger >> you'll have some new history to write after this year trade wars, impeachment hearings a double whammy for ipo market shares of peloton sinking. another big name pulls its name hours before it was set to go public bertha with us for more. >> no lack of drama. endeavor pulls its ipo after peloton fell more than 11% and

opening 8% lower the company that owns miss universe and ufc it will evaluate the timing. this is the second time endeavor has hit the breaks this year the second big casualty of the chill in the ipo market after wework pulled and their ceo stepped down we hear wework is halting new lease agreements there have been about 120 ipos this year, of those 57 or 48% are trading below the offer price peloton had the second worse debut of the so-called unicorns trailing smile direct club that dropped 27% on the

first day of trading it has been a rough haul for the ipos after a really robust start to the year. >> you were there. the market maker he had two phones going >> the chief operations chief works with the banks to open the stock on time. it took a little extra time. i wasn't there for data dog which did very well. this was a rough one similar to what we saw with smile direct. we appreciate it thank you. when we come back, back to capitol hill for facebook sandberg as regulatory issues face the company the c everyone o of one of

google's biggest users isn't worried but micron is.

>> good morning. it is 5:15 here. arguably america's best big city sorry new york i say chicago. my wife is from there. i have to say that

facebook prepares to go back to capitol hill for another grilling joining us now for more from london elizabeth. >> reporter: facebook ceo sheryl sandberg will leakly face questions like market dominance as well as the cryptocurrency known as libra lawmakers raising questions and ongoing privacy concerns facebook not commenting now. mark zuckerberg was in washington last week meeting with lawmakers his company facing scrutiny on a lot of fronts. ftc is investigating facebook

over antitrust reviews it is looking like facebook is spending a lot of time in washington now >> while we have you, you caught up with the ceos of one of the largest business entities. what did the head of cloud say about what he sees >> i had a chance to speak with the ceo at google cloud. he was previously with oracle. saying the company is seeing enormous growth around the world. >> as the demand continues to accelerate, people are curious about what google can do for their enterprise everybody recognizes we have

some of the best cloud technology our growth has not been affected by the trade war but largely driven by do we have enough people can we deliver the solutions. do we have enough people to take our solutions to market. >> google revealed that cloud business is generating much over the year the company announced a $3.3 million information investment coming from the financial services and banking sector here. back to you. >> always a pleasure thank you. on deck, lady luck smiling on shares and investors in las vegas sands today. we'll tell you why later, this ain't no rand

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uncertainty. they say sales could worsen if restrictions continue. down 6% in the market. what does micron ceo have to say? we'll find out in the 9:00 a.m. hour delta airlines is betting big in the south hemisphere latam will give delta a biggest presence las vegas sands will be added to the s&p 500 and replace necter moving to midcap index coming up, uber implementing new safety procedures for riders is it going far enough stock down nearly 30% since

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we start with testimony on school security at a house hearing. parkland survivor. here is what she had to say. >> i think if you had done enough, we wouldn't be having this conversation today, to be frank with you i wouldn't be here and i wouldn't have lost my friends. a lot of people in florida would not have lost their children >> the cofounder of march for our lives said it is hard to heal from the trauma of mass shooting when discussion of begun violence continues every day. ubers rolls out a new safety change to app. also, they are adding the ability to send a prewritten

text to 911 about the ride and prompt specific movements to verify their identity. you may have seen this stunning photo taken from space that crew has arrived. they are welcomed aboard some of these astronauts have trained together for years and as you can see are excited to reunite in space >> they are out of this world. thank you. coming up, from impeachment talks, what do traders need to know and the super bowl, everybody already talking about half time show we'll tell you who is set to perform, next. your employees must love you. thank you. ah, you could say that.

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only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ . >> from an ipo slump and all-out melt down. weak debuts dominating this year what is the cause? coming up. drama and headlines around trade, ukraine and whistleblower calls casting a shadow from the west wing to wall street

netflix, can they turn around their recently fading stock fortunes you are watching "worldwide exchange" here on cnbc >> welcome back, good morning. exactly 5:30 on the nose, i am brian sullivan happy friday we are 1.8% from all-time highs. the market continuing to grind shyer 50 points here, 60 points there. it is early. we are seeing green now. the bond market not muching as much more at 1.67%

japan and china going in different directions europe following us grinding it out higher on the year we are seeing the uk despite this brexit coming the ftse 100 in the uk up again. to d.c. no sign of slowing up news this morning that trade talks are set to resume between united states and china on october 10 the key question is this, which of those headlines should you be watching or wall street watching and which could have a more direct impact on your money? let's go to our guest.

gentlemen, there is no shortage of things to choose from jimmy, if i had to lay this out, things that move the market for $400 because i know you were on jeopardy once. >> you brought it all together >> what would you say is the most single one important thing going on from a markets and d.c. perspective? >> it is very hard not to say trade and also very hard not to say impeachment. holding the impeachment vote, it dies in the senate and then we are like what was this all about. the spread between four more

years of donald trump and four years of elizabeth warren is pretty wide. if this makes it more likely better for wealth tax break up all the big tech companies >> i love how you through warren in there is the stock market undervaluing the possibility of republicans turning. everyone assumes if the house does it. we heard from mitt romney it is possible 20 senators flip. what then? >> we are in a whole new world

then i'm with the consensus i think the base case is that the house impeaches, the senate acquits. playing into the election next year democrats are doing, nancy pelosi decided that with enough of the so-called majority makers, the freshman democrats coming from districts that trum won, it is time to move forward with this. building the case of corruption and help them going into next

year what they are really looking to do is not win 20 but if they can win three or four which is likely to peel off the republicans in the senate, they can at least get the moral victory for the senate voting for impeachment. >> we don't know what these individuals will do. we know trump has not made a lot of friends isn't it possible some of these senators get together in the hallway and are like, i don't like him do you like him? our job is to plan for the improbable >> i don't know if it would be a black swan if that happens you already had seven republicans refusing to say, listen the president is fine, this is a witch hunt or hoax we are already up to seven

i don't see how you could possibly say knowing what we heard from the whistleblower white house officials that he spoke with, we don't know what other conversations are in the vault. a lot more can come out. highly unlikely but it is not zero >> does this make the odds of a trade deal more likely he wants the economy and maybe stock market to look as good as possible and starting fairly soon i think this is what the market is getting significantly

wrong. trump wants to get elected and it is better for the economy if anything, if it affects trade, we believe it makes the trade deal even less likely because it gives xi in china the view he can put more pressure on trump. trump doesn't see the trade war as failing he thinks xi is under more pressure than he is. >> guys, i have a feeling we'll see you very soon. thank you have a great weekend coming up, netflix shares have been crushed. they have wiped out all of this year's gains can their latest show turn

things around. we'll tell you what it is, how much it cost and the odds that netflix's makes that you turn. coming up. >> today's big number. 180. the number of days it took for a flipper to flip a home in 2018 nearly 208,000 houses were flipped last year. no matter what i wore, i worried someone might see

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who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. the big show launching on netflix today, "the politician." the producer of glee and american horror story. as netflix shares are low, will the original programming be enough to stave off stock

decline. joining us on the phone is victor anthony thank you for joining us will the producer turn it around >> one thing that came out of the second quarter earnings call was that the content slate was not enough to drive ads or turn in the second quarter. that means the model is definitely hit driven. it does depend whether or not this will drive new subscribers on to the platform what we saw with the dave chappel comedy show, that drove a lot of usage despite the fact they have

conditioned investors to believe netflix is not a hit-driven business it looks exciting. a few stand up comics, "the spy" looks appealing. there is a lot of content coming that should drive consumers on to the platform. especially now that the competitive space is becoming more intense >> they put the word binge watching into our vocabulary is that a decision that will haunt them you can sub jiscribe, watch eig shows in a week, cancel their subscription and then in a few weeks sign up again.

will they have to cancel their model? >> this what you described has been happening since the beginning of time for netflix. it happens at the margin it is not significant impact on subscriber growth or turn. coming out every month depending on the hits. i don't think they'll walk it back netflix has other issues i think the competition that is coming out at lower prices will be an issue for them >> victor, you've got a hold rating above where the stock is now. i'm sumg you need to look at

your rating, pop it to a buy or bring that target down >> that's the price target i had after the second quarter earnings call. i cut thatsignificantly. stay tuned on that at worst for the equity to evaluate those positions all together with that said, we'll need to see how strong that content slate is whether some of the original films coming out and whether or not it is enough to offset those issues. >> thank you we appreciate you joining us

have a great weekend >> thank you >> let's find out what else you'll be talking about today. time for top trending stories. super bowl and a map that helps us to avoid being annoyed on airlines >> i'm looking forward to "the irishman." i'm really excited for that one. also for this year's super bowl. the half time show will be a can't miss performance announcing that shakira and jennifer lopez will take the stage this year in miami the first time the two star performers will be on stage together jennifer lopez says she is

honored to appear with fellow latina >> do you think a. rod will make an appearance. >> my doorman is obsessed with them as a couple he's convinced that the two of them is a good luck charm for the yankees. >> the yankees will lose in the first round of the playoffs. you heard it here first. >> i'm not even a fan. >> neither am i. >> the airline will now offer a baby map for travelers to use when looking flight. it will place a child icon so those traveling with babies between 8 days and two years old. the map will not be available if there is a last minute change or

if you book your flight through third party. everybody hates flying around babies although the other day, there was a baby flying for the first time he was perfect >> i fly all the time. i have a five-year-old, if i get an upgrade, i'm taking it and the kid is coming with me. when does the irishman come out? another data breach this time in a food delivery service. who and when do the facts back up the fear? they do not. this morning's rbi is e u'onyove got to hear. stick around

>> welcome back. good morning the sun not quite up 5:51 if you've got to be somewhere at 5:52, you are not going to make it dow futures are up right now shares of peloton sinking in their debut. they fell 11%. endeavor pulled the plug moments before 57 out of 120, about 48% of all ipos this year are trading below their offer price. take a look at some of the most

notable names. smile direct off 44% lyft and uber. slack has been slack the real real has been down. ben harburg, do you feel like it is easy to blame this on the companies. are the bankers just getting it wrong here >> a lot of the pre-ipo rounds really inflate things. that creates a bubble. i think you'll see a lot more subdued pre-ipo rounds in the future to make up for the market

we've got to go back to the fundamentals a lot of these businesses have struggled out the gate because they are not necessarily so unique i think there has been a disservice for some of these out of the gate. >> if they decide or pushup the value to make it $8 billion. otherwise, it is telling the private market rounds sorry, you were wrong you were wrong public markets had to justify the valuation. we work with the valuation saying enough of this. saying the markets don't work. there is way too much going on that don't follow normal fid

usury responsibility this marks a landmark for us in the industry >> does wework's problems ratchet down valuation does that cast a shadow over other private companies? that line has been that it does not. businesses are burning a lot of cash, doing a lot of things not necessarily core to their main business those businesses are going to get a lot of question marks. if you are not in that business, doing something cash again tiff, zoom is a good example, i think those businesses will perform better >> always a pleasure, ben. thank you. time for your morning rbi. random but interesting thing has to do with china and stocks.

once the trade war broke out, everybody was scrambling to find the company that had exposure. check this out this year, china exposed stocks have done better those companies listed as having heavy exposure to china have done better by 25% many have made investors more than 30% this year not just tech. many thought retailers would be crushed by the higher tariffs. nope retail rtf up 22% year to date s&p 500 has had a good year. up 19% if you had taken a chance to go against everybody on china and bought an equal weighted basket, you would have made even more

money this year. call it the trade war on trade one of the hottest investments of the year. what do you think of that, chad? >> that is based on aggrogate demand for many of those, you are still seeing revenue growth. hence the reason why you have stock prices higher. >> everybody putting out the list here are the companies you have to watch out they've done better. it is kind of unbelievable >> there is a massive discount you are not seeing any trade-related issues that haven't disrupted the total

business you are seeing that they could actually move off shore from china to vietnam with flexibility. we believe china's growth will decelerate and that they'll come out as one of the losers >> to your point, i wonder if these markets had to get leaner, meaner, they've had to move. clean up and tighten their margins. >> they had to and they have to be more flexible if this trade issue accelerates. we think there will be a bridge or deal put in place before the election if it does accelerate, it will have an impact >> it falls in the market space,

is the market underestimating a chance of a true impeachment here >> we don't believe there will be a true impeachment. the water mark that the senate will be behind president trump >> we can't predict behavior we don't know. >> that's the material impact. what is the feedback loop to the general consumer going into the next election? we believe consumption patterns will continue to grow supporting the u.s. economy at a growth rate of roughly 1.75 to 2% g >> is the feeling they'll have to do something? >> so taxes and infrastructure

are off the table. i do think the immediate lever the administration can pull is a trade deal >> chad, always appreciate your views. thank you. appreciate that insight. it has been a wild week. could be a wild day. i'll see you on monday good morning, politics and your money impeachment talks and what you need to know about headlines coming out of washington and peloton drops below. and another data breach at door dash friday, september 27, 2019 "squawk box" begins right now. ♪

>> announcer: 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 marketsite in times square. our guest host today is fast money trader joe taranova. >> i feel the look already from joe. >> you are a fast time reporter. >> today he's "squawk box. >> i fell into the trap of that. my fault >> i thought it was fast money >> no. it is half time. >> this is not my