>> it is 5:00 a.m. here, 5:00 p.m. in hong kong. massive demonstrations in beijing as china celebrates its 70th anniversary protesters are hitting the streets and clashing with police live reports straight ahead. call it the race to the bottom another central bank cutting interest rates again to record lows in corporate news. a story that sounds more like a novel than headline. a top credit suisse exec

resigning after a spy probe. and we are getting a read of how much people are planning to spend on the holidays this year. the internet has changed everything "worldwide exchange" begins right now. good morning, good afternoon, good evening welcome. i'm brian sullivan welcome to the fourth quarter. the first three months have been an adventure of a lifetime the s&p 500 jumping 19% in nine months that is the best performance for the first three quarters of the year since back to 1997. the first time since then that

the total returns was more than 20% for the first three quarters of the year, going back to 1997. we meleer right on to that futures up 92 indicating more gains ahead. at the end of the show today, we always do the rbi, random but interesting. we are not going to do that today. call it an entire hour of rbi. we are going to show you starts of the run and bonds have been a stand out as well. bonds have gone up considerably. yields have come down. we've come up but we are still at 1.74% in asia, all the chinese markets were closed for their national day. we have news out of australia. cutting interest rates for a third time now to an all-time

low. australian market up .81%. japan last month had its best month in a year. the nikkei has started slowly in the last couple of weeks to move up just something to watch. keep that on your radar. there has been a lot of green on your screen. the european markets are not participating. they are going their own way let us check what else has been hot. it has been gold and black gold. oil is up 19%. we've given back all the gains after that bombing a couple of weeks ago. we are seeing wti climb up and gold up 15% this year. pretty much everything has been higher gold down a little bit this

morning. in 2019, oil, gold, bonds, stocks have all done well. the major index coming off the third positive month as well september just seems so last quarter. let's focus on what you care about, the future. cochairman and chief investment officer has remained optimistic this year. he has been right. are you surprised not with equities you've said this, hang on in the bad times, the fact that bonds are up, oil is up. almost everything around the world that is an asset class is higher >> federal reserve policy has changed so much this year. last year, we were looking at treasury index this has been a huge

underpinning as you sited just now, we have a big move by other central banks, most recently, australia >> how long can it last? >> there is going to be a day of reckoning at some point, we are approaching that we need big things to happen. >> you know there is a group out there, specifically on the twitter. the markets, if you are way too early, you are wrong how far out can the central banks stretch this >> they can come up with solutions as the u.s. did. they can go into the marketplace and do bond buying you don't have to look further than germany to know how bad things are in china. that is really the direct relation you have.

i think you are approaching a point where china and the u.s. have to come together. there is a mutual interest in resolving that >> you are coming with the advice we are going to the professor with a couple of pieces of practical advice number one, for our viewers, avoid buying ipos. >> because they are not profitable this is not a time to be speculating. this is a time to focus on profits. >> number two is, profit is king when you analyze an equity, you are going to the balance sheet, what are the things you look at? >> return on the capital has been the most reliable measure if you look back, the top

quartile out performs the bottom the company with the higher capital returns do better than the ones with the lower returns and less volatility as well and better down side support in that period where the market does decline, you'll decline less and those companies will be in a position to take advantage of any financial dislocations that occur in the marketplace. >> wrapped in there is single stock analysis if you've done that this year, you've done well if you've been able to pick out any of the stop 100 s&p 500 stocks, you've done better

>> that's right. the index buys the good but it also buys the bad. we talked a little about the energy stocks. you said we are right back to where we were from the commodity. those have done terribly this year that is subtraction from addition everything else has done so much better are there any stocks in the energy sector that have looked attractive to you, will look attractive to you. >> that's the nice thing about focusing on this metric, it keeps you out of areas like energy those companies are not focused. >> but they are changing there hasn't been a lot of capital but return on that >> that's right. when we see that turn otherwise,

we'll get some interest. >> for the reason, which that many institutions can't hold or won't hold this environment. no fossil fuels. a lot of these are trading at valuations the same as if oil was 20 to $25 a barrel because groups have avoided the fossil fuel sector. i would imagine that flush will make these too cheap to avoid. >> probably but i'll give you this to consider where we are today is kind of like where the airlines were the barriers have always been heig high, the companies in the space already are free to do what they want, drill where they want.

there is no discipline there is no opec equivalent like in the united states as a result of that, return is the secondary consideration of finding oil. >> well said trust me, the industry is struggling to find solutions we appreciate it by the way, we are going to do the whole show with a bunch of stats. 40 stocks in the s&p 500 have gained more than 50% this year >> that's a lot different than it was in the faang period, 2016 when you only had five stocks driving. >> practical advise. i appreciate it. thank you very much. live reports from beijing and hong kong. for both celebrations and protests are under way where they are marking the 70th anniversary under communist

rule >> if you like a good spy story. the weirdest story of the day. first we'll head to the break and check out the best and worse performing dow stocks. look at that the old apple and prok ter and gamble nike as well cisco, pfizer and more stayun ted for more on "worldwide exchange" right after this as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand

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>> welcome back and good morning. 5:13 on the east coast stocks the best since all the way back in 1997 when the internet was still a dialup mode um away. more deigns ahead. dow up wide open the entire show is going to be an rbi of stats. this year, what would have been the best major asset class this year guess what takes the top spot? bitcoin. up 126% this year on the coin base exchange. well off the $20,000 peek but it

has been great this year nasdaq is up 22% crude oil and s&p are tied at 19%. although the s&p 500 has dividends. and the dow is up 15%. it has been a good year across the board. now to this morning's top global story. chinese president in beijing saying, quote, no force can stop china or his people. hong kong is celebrating the day with demonstrations. let's begin with yueunice yoon covering the protest >> reporter: the message is china is great again he praised china for its achievement under communist

party rule he said no force can stop the chinese people and the chinese nation from forging ahead. reiterating that message of peace in contrast to the military hardware here the parade featured an intercontinental missile said to be capable of striking any target in the u.s. it was unveiled for the first time and discussing hong kong where anti-governmental demonstrations have been shown. for investors who hope to gain insight to the policy or trade war, there wasn't a lot in president xi's speech. he didn't say a whole lot about reform suggesting to many that

investors should expect a hard line from beijing. this is the back drop from the trade talks. the vice premier is expected to lead the chinese team coming off this powerful event where the messaging is that china won't get pushed around by other countries that may limit the flexibility to those who won't be allowed to show the communist party as a weak party. >> eunice joining us by phone because you have restrictions by camera or even opening a window over that parade >> they are not celebrating in hong kong. clashing with police a rare workday clash we'll go to chery kang >> reporter: protesters here

are, quote, mauourning the holiday. i am in the park looking very peaceful in my back drop that can be very misleading. my crew and i have been trying to find position that is somehow violence free. that has been impossible so many rounds of tear gas has been used in many different parts of hong kong, the island part where i am. a lot of protesters have been really fluid in their b water mode in the back drop behind me, we see smoke coming out of two different buildings. that shows how a very smokey celebration on this day on the 70th anniversary we keep hearing a number of fire

trucks being deployed and putting out some of the fires that are in a report at this point. we are seeing a report that suggests that one protester has been hit by live round shot fired by a police officer. cnbc is trying to confirm that we did reach out to the pr office of the police they didn't confirm that, saying that they are still gathering information internally >> be safe there thank you very much. on deck, the most bizarre story of the day, a top executive of a major european bank out charged with spying. not a novel. it is real life. first, what has been the first nine months of the year, here are your top sectors utilities, real estate, consumer

staples. they've been read hot. we have more after this.

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la la la la la. >> welcome back. here is the most bizarre story of the day, maybe the year credit suisse says the chief op rating officer has resigned

after claims of spying finding that the surveillance was ordered without telling the ceo or board no evidence was found that the banker tried to poach employees or clients the banker discovered he was being followed he apparently confronted the individual, which led to a chase and physical altercation the incident raising questions about the coo. get this, partly stemming from a personal dispute over homes they own in a wealthy suburb in zurich spying, homes, billions, bankers, john grisham, are you watching here is your next book

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>> welcome back and good morning. let's get a check on the top headlines. welcome phillip mena from new york >> good morning, the trump administration is fully embroiled in the impeachment proceedings. it is confirmed that mike pompeo was among those listening in to that phone call with the leader from the ukraine attorney general william barr is under scrutiny after the washington post reported that he personally askeds foreign officials to add an inquire into situations during the 2016 election this comes on the heels of a report that president trump

pushed australian prime minister to help barr gather information on the mueller probe and zeroing in on the president's attorney, rudy giuliani seeking his text messages and phone records related to his dealings in the ukraine. a lot going on in ukraine. back to you. >> seems to be a trend lately. on deck, an important new report of what companies are doing the best job of closing the gender gap. checking out utilities now in a six-quarter winning streak their longest since 1995 more stats like that when "worldwide exchange" returns >> today's big number.

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good morning the bulls continue to run. stocks having the best year since the titanic and boogie

nights rocked the movie theater. today, hong kong celebrates the 70th anniversary clashes as protesters hit the streets. just go. amazon is looking to revolutionize the way we pay for things you are watching "worldwide exchange" here on cnbc ♪ >> good morning. welcome back it is 5:32 here on the east coast. i'm brian sullivan welcome to the fourth quarter. it looks like we could continue the big streak we have been on this year. the dow futures are higher nearly 100 points. why do we say big streak it has been a year to remember the s&p 500 jumping 19%. that is the best performance in

the first three quarters of any year since back to 1997. it is the first time since then that the total return was more than 20% check this out more than 30 stocks are up more than 50% who exactly is the best of the best you'll stay tuned to find out. you'll have the top five coming up bonds have done well this year yields in the 1.75% now. we have to get through china a military parade celebrated the 70th anniversary of communist rule president xi said, no force, in his words, could shake the nation much different in hong kong where protests are turning

violent. what should an investor make of this patrick, i know you probably went to school to learn to management not to become a china political expert is there any way to analyze the overall markets and not pay attention to all of the things happening with the trade war and the protests in hong kong? >> i actually spent many years in china before joining silver crest. >> i am learning that right now. this is my surprised face. >> what is going on now is a growing gulf between the united states and china not just over trade. over security issues over human rights. it is something that is going to shape our investment outlook going forward.

even if there is a deal between the united states and china. not just based on the president's policies it is between the two largest economies in the world, so it is something we are watching with concern. >> patrick, why did you grow up in china >> i didn't grow up there. i spent much of my career in china. >> so you were an adult, grown man? >> yes my first visit to china was in 1986 when i was 16 years old i had seen china change. >> i ask age because that would change your perspective but you were there as an adult from your perspective, then getting to know the chinese people and how the government thinks, what do you think? how much do they dig in here they are not a country that bwss

to pressure here their time line is in centuries. >> when xi jinping came into power, he had ideas they viewed as long overdue. very little of that has happened they have a very short-term perspective. they are trying to shore up support and the economy. they are letting a lot of their longer term goals slide. the concern is that china has gone in a direction that is not just more authoritarian or assertive in ways that might threaten the united states but

also move the economy in the wrong direction away from reform and piling up the kind of imbalances that exist in the economy. it is really a concerning picture. >> it certainly is in your best guess, how does it play out do we get a deal this year, next, ever >> it is tough to get a substantive deal with china. the president's issues at home make it difficult to weigh out not just the election but the economic cycle they are waiting for the u.s. economy to show weakness it is kind of a waiting game now. i don't expect any kind of clear resolution i think it is going to be a bumpy road ahead >> great insight had no idea. we'll get you back on. i speak for everybody when i say

xayxay thank you. switching gears now to both employees and employers. the race to close the gender gap in corporate america a report shows that companies are responding to pressure from share holders, consumers, employees and peers but still have a ways to go. joining us now, coo diana. thank you for joining us we want to focus on the united states company there is only one. >> thank you for having me >> sure. that is bank of america. what is bank of america doing right? >> what with he see that bank of america is doing right, to begin with, they are being transparent in the gender composition of

their work force and leadership. they are putting in place the need in order to have equality as a matter of publication and of putting the policies in place. >> we look at other u.s. companies that made thelist. general motors, johnson&johnson, citi group and jp morgan chase when we say, they have closed the gap, how much have they closed it and how much more work do they have to do >> they haven't closed the gap yet. what we see is that every single company in the world, we researched over 3,500 companies were able to reach the top score of our score card. the top scoring companies at 74%. we still need to see more gender

balance. for the u.s. companies, we need more transparency on the pay gap. we need to see more parental leave for men and women. >> a bit of audio issues there we'll get you back on soon thank you. congratulations to bank of america for being the only company in america to make that top of the list. no rbi later in the show the entire show is an rbi, random but interesting we have been showing you top performers in 2019 what are the best of the best? if you own these five stocks, go out to dinner tonight. chipolte, the auto auction

company, equinix up next, stock picks for the final quarter of the year. your special guest on "worldwide exchange." but first, your mystery chart of the day. what company takes the award for the worse performing stock on the s&p 500 this year? do you know what it is take some guesses. we'll show you more coming up. ♪

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no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. ♪ ♪ >> welcome back and thank you for being with us. time to reveal the mystery chart. it has been a great year for stocks not every stock has participated the winner for the reward in the worse performing stock on the s&p 500 this year is macy's.

down 47% bringing up the rear on the s&p 500 this year. let's focus ahead. you want to find stocks that are good value maybe buy low, sell high what should you be putting your wealth to work >> i'm not picking on macy's do you look at numbers like that do you look at who is not performing and may not go out of business and may turn it around? >> you have to there are value traps out there. if you can find situations where it is temporary or new management, those things can

make sense >> so the worst performing airlines stock is american airlines you do not believe this is a value trap >> it is down 33% versus the average airline be egg down only 3% >> they have the max issues. they've been crushed by weather. >> it has been difficult they have 24 of the 950 planes, 24 are the max. they had 7800 canceled flights in the second quarter. they'll take a $400 million hit. i believe boeing should correct itself three months, six months but with the stock being where it is, we are talking five times next year's earnings i don't know what your down side is and let's not forget, warren

buffett is a 10% owner the company has bought back a lot of their stock >> if the max comes back later or doesn't come back at all. they've figured it out weather doesn't always last forever. >> it is seasonal. >> let's talk about another one. home builders. we always focus on the big names. len ar, toll brothers. you like century communities who are they >> a lower end, entry level. they are in texas, colorado, georgia. >> all the states people are moving to. you name the top three states

for incoming populations >> it is ee con mall now to own homes instead of renting very inexpensive i think these things are setting up >> are these the demographics. they are going to move to the suburbs. there is 85 to 88 million millennials in their 20s and early 30s, they are going to start wanting homes, even with their student loan debts they are now 3.5%. if you are buying a house, all of a sudden, a year later, houses are 25% cheaper if you are financing it that's why you are seeing the low end there.

they are in denver and charlotte. finally ncr corporate. i can't rep the last time we talked about ncr corporation >> the analyst and stocks of 31 and change analysts have been interested in it >> national cash register. they are known for their atm businesses but they have this point of sale it used to be a hard wear model. now two-thirds of their business is service revenue they are putting software in that the theme out there now is find companies with recurring revenue. because of that recurring revenue, that will spur it on. >> we've been showing our viewers all of these red hot

stocks i think we are the only show talking about this stock you look at single best performing stock, it's an ncr competitor do you know what it is >> dibolt up 370% this year. they make digital display atms it goes to your theory >> they have new management that just came in there hodges capital is a great turn around >> you like american airlines, ncr corporation. >> the general consensus is that we'll see what we saw last year. look at the market, it is telling you things are okay. >> craig hodges. thank you.

we have to get dibolt ceo on the show on deck, a new report on how much american consumers plan to spend on gifts this holiday season the numbers may surprise you one more stat. the best performing international market is turkey down now but up nicely in the last 90 days or so the worst, argentina we are back right after this ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good.

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>> welcome back. making headlines

a new survey finds americans plan to spend as much or more on holiday shopping than last year. an average of $337 they expect to do half their holiday shopping in a physical store or a mall. >> this is amazing video and quick thinking by an o'hare worker look at this a runaway golf carton the ground the driver had fallen out. getting dangerously close to a jet when a quick thinking ramp worker hops on another machine and blocked it when it was seconds away from hitting a jet and possibly knocking the landing gear out that groundworker, smart, brave. deserves a round of applause,

maybe a bonus, maybe a name on the side of that plane awesome stuff. let's talk about something else, maybe that golf cart symbol eyes the economy right now. joining us, our guests lori, i'll start with you, you feel like the market is spinning out of control sometimes with brexit, with the trade war, you name it. maybe the fed or investors may be that groundworker that had come to the rescue what do you see in the fourth quarter? >> we think markets pretty much deserve to be where they are today. we have a target at year end and don't feel any pressure to change that at this point. >> you are not calling for some

sort of october crash 16 major global banks on their own. how can the feds around the world save us? >> they can't go much further. that rise is affecting u.s. interest rates possible the central bank has reached the central point. fiscal authorities don't have a lot of money to spend.

it is not easy to borrow the world will need to depend on capitalist for growth they've pulled through the central bank has reached their limits >> it's amazing. we have the equity strategist. the bonds up 17% almost exactly the same with the s&p 500. how much longer can all the asset classes keep going >> the quick answer is until there is a recession in europe, interest rates are negative same in japan. investors think about them as if

there on a desert looking for food they find it what is the food the dips in market prices. the food that is poisonous is the one that equals recession. that's not oven horizon. showing that airplane earlier. economies are approaching a speed that is similar to stall speed. they need to clear up avoiding that stall speed economy >> if we do stall out, what does that look like >> that's where global voeftors in the desert devour food and end up eating poison they avoid equities and credit that's not our baseline. that's not our policy now.

>> it has been a great year for equities the best performing sector group has been bullish these are regulated businesses i would say first off, investors have to think about who is coming into the market we've been looking at companies that have higher yields. that thirst is pushing people into u.s. equities we tell people sure, they do look

overvalued we actually think there is plenty of room left to run >> great discussions thank you. thank you, folks for watching. "squawk box" begins right now. >> it does breaking news out of hong kong with protests. corporate intrigue and spying scandal takes down a major exec. and jobs in america when you read which businesses are hiring and which are not. "squawk box" begins right now. ♪ >> announcer: live from new york where business never sleeps. this is "squawk box. >> good morning.

welcome to "squawk box" on cnbc. we are live. stocks are best since 1997 dow futures up by about 80 points nasdaq up by 27 and the s&p 500 up by seven. let's check out the returns for the year so far, the dow up by 15%. s&p up by 19%. nasdaq up by 22% mike, you love this. >> they are real and factual it is a unique year because we had such a dramatic low point right before the market year clicked over looking a year ago, the market