companies are put into the hands of professional investors who may be acting on the hand of packet stocks plummeting on earnings retail and investors that can do news we'll get you ready for the their own work if you are a high net worth bigger report from boeing. investor or qualifier purchaser, caterpillar and eli lily october 23, 2019 you have the ability to do more to get the information you need. "squawk box" begins right now. ♪ it is kind of up to you. when it comes to going to the public market, that's what the >> announcer: live from new york where business never sleeps, sec says, not everyone can find this is "squawk box. that information out themselves. >> good morning, everybody that's where the disclosure comes in it comes with different risks. >> final questions for me. welcome to "squawk box" on cnbc. we are live from marketsite at jay who runs the sec made the times square you'll see things are a little comment that often times ipos lower. the dow is down around 5 points are really just a liquidity event as opposed to part of a and s&p down around 2.79

longer journey and how do you get private companies that have starting with when we heard from texas instruments. it did fall short of revenue been private to think about going public earlier expectations in the third quarter. >> we've been advocating a long the company cfo said trade time we'd like to see companies tensions are forcing businesses cap into the public market to become cautious that stock is down by almost 10% this morning qualcomm off about 1.8%. sooner part of that is the view that similar declines for intel and actually there is certain micron all these concerns about the elements of the system that i dispute, the trade war and what make it much harder to be a that means public company and i would argue that some are not really texas industries number was better than some anticipated but designed to behaviorable included items revenue analysts weren't looking for. big concerns about what this >> if i don't have to go to the means for the rest of the chips. >> more than just chips. public markets it is a lot more to jump you worry about everything through. >> slow down >> we've said we have this

>> i need to eat more in the really ready capital against the morning, when you said chip. system that does require discipline we are happy to have that i thought chip wich. discipline so long as that is those are good designed to help the public make >> a new report says china is a decision preparing to replace carrie lam we want to try to get rid of with an interim leader those and maintain the disclosure we are proud of. we'll get to eunice yoon who is >> td a merry tad. in beijing it is all free >> getting ahead of the warren, >> reporter: china blasted a report that suggested they are about to oust carrie lam sanders presidency go nonprofit or no plans for that the foreign ministry called this >> we are pleased to provide report a political rumor value to our share holders and the background is that ft has been quoting sources saying that clients. >> and charge for it >> everyone assumes it happened carrie lam will be replaced by march and that an interim chief executive will serve out her term which lasts until 2020. quickly. i knew as soon as the first one carrie lam has been widely made the decision, they would all have to follow

criticized for bun gelling several decisions including they had been diversifying for several years. it is really interesting, some pressing for this extradition of the firms were very prepared. bill that bill was formally withdrawn today. they have building businesses, the ft named some possible asset managing businesses, etf successors the ex final secretary and businesses they've been watching robin hood and other free venues rise up. they saw it as something they former head of bank. would ultimately have to try for us, we provide a service those called too close to lam's that is efficient and effective the trading business is government they want to be careful because they don't want to be seen as affordable and a tiny fraction of what they were charging caving in too much from the pressure they are facing >> we have to head to this story has been heavily commercial let's check on the futures now censored on the internet and any indicated down around 47 broadcasts as well unclear how much her replacement we'll be right back. ♪ would really change the die

>> announcer: coming up, it is a between hong kong at the end of squawk ceo call. the day saying one of the key ceos of honeywell and biogen and demands is universal suffrage boeing quarterly results will be that would not include changing out the key executive. released latter senator marco rubio joins >> thank you on that report. us to discuss his tough stance on china "squawk box" returns after a break. >> we'll see a lot more tomorrow when you move homes, you move more than just yourself. talking about corporate news softbank has restructured that among talk of $5 million intending the offer among share holders and speeding up the commitment they'll now have about 80% in wework naming coo as executive chairman

cofounder adam neumann will become a board observer. softbank will pay neumann. he'll get $185 million consulting fee arrangement which includes a noncompete which may seem ironic. >> would you want to let him compete with competitors >> not $185 million a year it is a one-time payment part of that was a view when softbank was part of the group part of the uber situation, there was a view that they would have preferred better access to travis he knows where the bodies are

buried and more about the business in addition to all of this, there is a $425 million loan considered a bridge loan of that's why xfinity has made taking your internet and tv with you a breeze. sorts to take over the facility really? yup. you can transfer your service online that jp morgan had in about a minute. you can do that? yeah. and with two-hour service appointment windows, however when adam tenders into it's all on your schedule. awesome. so while moving may still come with its share of headaches... this $3 billion tender offer, he can sell it assuming there is a no kidding.

we're doing all we can to make moving simple, easy, awesome. go to xfinity.com/moving to get started. prorata situation, he has to immediately repay the first $1 million of that loan within a day or 10 days or whatnot of the offer and then he has been three >> welcome back. years for which the loan honeywell reported results continues. softbank can call it at will shares are up about 27% year to >> they keep him on the line to make sure he's helpful when they date our next guest took the helm in want had him to be 2017, that stock is up by 40%. remember all of this stuff with chairman and ceo of honeywell. travis, they wouldn't let him thank you for joining us >> a pleasure to be here ring the bell. there was some bad blood i love the show. >> i think the distinction between travis and atodam, there >> let's talk a little about the numbers and what you are seeing was a view that he was a genuine there. numbers missed by pretty wide liability to the company expectation. numbers were a little short but legally, criminally. it was a very different view the street's reaction is that,

look, this is probably pretty about travis good given a concerning economic environment out there. >> for us, revenue is one thing, made lots and lots of stakes bookings is very strong. along the way. we had double digit bookings gain in china, middle east even europe was up nearly double digit for us in countries like marge an was part of it, germany and uk one soft spot in italy softbank was made part of it not totally unexpected >> the only made made whole out we are not seeing the soft of it is adam. everyone else is losing their ennings of the environment shirts >> 100 is the immediate loan >> do you think the economies are better there or are you the other is a regular loan that taking some share from other can be called on at any time players? >> i think we are taking some the reason i mention, a lot of share. we have doing really well. we want to be local for locals

headlines have said, he gets the whether we participate in china or india, we have a whole supply $1.7 million sort of, sort of not >> if you could sell that stock chain there all the way from the at $1 billion, that's a good innovation stage, delivery and deal softbank is offering $3 billion. market that is proven to be a show of >> what is the total softbank, what do they have in there success. >> does that make you immune they put in $20 billion to own from trade talks if your supply chain is local, an $8 billion company? >> first of all, their new bar maybe you don't get hit. >> i think we've managed that well i think i'm consistent of every other ceo, we'd love to see this resolved we'd like to have a fair trade resolution between china and the u.s. hopeful will that will happen. on this. they get to even there is a little progress earlier this month they've spent $9 billion we hope that energy and momentum they add now at 10.5 continues. you add the three nequity. that is something not just from a pure tariff perspective but

we are at 13.5 trust and confidence factors in >> i thought that included to both directions. adam >> no. that's additional. hopefully trade administrations call it $14 billion. will come together to get then there is a $5 billion loan something done >> you see the rise and you are on top of that that softbank still able to get higher bookings coming in corporate is making to the company as well. particularly china or other let's call it $14 billion in places where we've had tensions. equity they are going to value -- they how do you navigate that >> we've been focused on local can't today, they'll value it at $7 billion today with the hope solutions. of getting to $15. we have very few expats in they have a three-year business plan we'll hear more about this honeywell these days probably less than 20 across the coming about how they think they'll get there. globe. we really believe in local for for all the employees that are still there, it requires doing a local mindset in terms of lot of work. they have to get out of some solutions, custom fit for that market that has enabled us to take cities there is a path to share. we don't act like a u.s. profitability. in cities that it is working, company. we act like a local company. we have a huge presence in the u.s. that will continue to be our

they'll start to cannibalize on heard quarters the margin >> new york, london, l.a not an export, import mentality. >> a lot of big cities >> your asset mix is where you the toughest have been in the want it. emerging markets people don't really know what there was a view that, we need honeywell's environment. we ran a few commercials to be where everybody is including on your network here those cities have been the top everybody thinks of us as the >> the focus on profitability and getting there quick. thermostat company we don't make those anymore. >> is softbank working well with we spun that business last year. wework >> good question whether we think about aviation, i spent so much time on the phone yesterday. oil and gas, in home automation. i think masason genuinely >> why you've always been such a believes this is the future of great target, you are $120 work space >> will we get in with softbank on investments are we part of this action billion market cap they were trying to buy you at >> you want a part of the $50, $60, $70 billion. you may go past. action >> we are not allowed anyway >> you have one division that

i'm doing enough trying to bet doesn't get a lot of attention on nfl games i don't need an expert to help that's quantum computing me how far along are you. they've had other good successes. google came out announcing they >> ali baba was the biggest. >> kind of weird isn't it. had reached supremacy. >> good for them for us, it is what i call a >> this is huge. breakthrough initiative. >> very strange. we have things which we fund bad day for apparel -- athletic i fully realize some of them will not come to fruition. apparel. i've done a lot of studying in >> i like him a lot. i'm excited for him. what quantum is, how it works. >> nike long-time ceo stepping we have something new and unique so much so that this would be down revenue building adventure servicenow ceo will step into i'm not a computer engineer by that role. closing bell yesterday, parker education. a quantum computer looks nothing elaborated on the move >> we've spent a lot of time like a digital computer. it looks like a science product. over many months working on succession planning.

this is not something that happens in a matter of weeks we are getting interest. i think it is a promising it is unrelated to oregon or any technology the reason we are in it, one of the fundamental technologies you other issues need is control. at the base of it, we are much it is ab t board and more of a technology company than a industrial company. adding to the strat di he'll technology is our core area of expertise. >> in your daily life, you have an mba from harvard. masters in electro gearing and stay on at service now shares computer science do you use them all? >> it is helpful i'm very comfortable with numbers and analysis fell as much as 15%. i like to make fact-based the company announced mcdermott decision you can overdo that. if you are looking for perfect decision making, you will never will become its new ceo. >> talk about musical chairs find perfect data. in the mid-90s, i said, do i really want to be an engineer

they have built momentum in the rest of my life? terms of how they could put is kind of changed course. things together. i really love business and bringing technology to the marketplace. i love being ceo of honeywell. >> you immigrated when you were 11 from poland jo john doneis a great guy. >> correct >> do you remember the >> and you are going out on top. difference in the way things are >> looking at it in reference approached >> sure, a little bit. >> there are people that come that it is up. from hungary >> facebook ceo mark zuckerberg is set to appear before house finance committee later today. do you appreciate -- the subject of the hearing is >> sure. the plan to launch libra's this country has done great things for me. digital currency but lawmakers are also expected to question i came here. didn't speak the language. i'm definitely a patriot of the him regarding discrimination country. they are facing backlash over >> thank you failure to protect user's >> once people come on, they usually want to come on again

privacy. there have been called from and again for earnings or anything >> we'll make this a regular politicians to break up big tech companies. later on, we'll talk to thing. >> i'm not kidding you guys are on every morning in facebook's former chief security my office. >> you don't have to leave officer and the representative stay right there >> thank you for joining us. holding the hearing. 40% since he took the helm in keep watching cnbc for full 2017 >> honeywell had outperformed a lot of peers already. coverage >> coming up, we'll get you ared >> for the last decade, we out for earnings reports and a look at some big movers we've already performed s&p and sli by 2 x seen results they are moving in pre-market. meac wn ow you thosehewe >> everybody should have an co bk. ♪ engineering degree and then go into english lit you should have to have an ee degree to start. ♪ i don't have one i wish i did >> it is a little painful to get ♪ one. >> it is coming up, quarterly results ♪ from boeing. what the company may or may not

♪ say about the return of the 737 ♪ max. we'll return after a quick break. ♪ >> announcer: time now for today's aflac trivia question, ♪ which publicly traded company ♪ services over 100,000 miles of rail for all of the north american major railroads the answer when we continue. no, we still have bills. aflac gives you money directly to help with those. aflac! and your deductibles, knee brace, whatever you choose. aflac sounds like a winner. umhum... umhum... we try. get help with expenses health insurance doesn't cover. get to know us at... duck: aflac! dot com

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now wild wings -- >> somebody is hungry this morning. >> wild swings for snap this morning. now look at where things are the company posted a smaller loss than expected s that coming up on monday >> announcer: nout answer to >> we'll hear from boeing, today's aflac trivia question. caterpillar, eli lily. which publicly traded company services over 100,000 miles of joining us for that, our guests. rail the answer, caterpillar. chris, i'll start with you >> not the only reason you've got a lot of very caterpillar is making news specific things you think investors should do right now. today. do you future is down around 72 the one common at in all of it points because caterpillar came appears to be, it looks like a in missing earnings

global slow down expectations mike santoli is here you even like long bonds what did you think of those get out of faang, you think we numbers? >> a weak for global industrials. it will be tested here are at the end of a cycle or i will say cat has not been one something. you are in a bad mood. of the leaders of the sector trying to figure out that global you hungry too industrial down turn is over >> i try not to worry on what i >> let's get to phil lebeau, is want to happen and pay attention to what is going to happen it trade off earnings anymore or we have had a wonderful run for anything else? >> these are bad numbers the platform technology this is going to be the day. companies as long as the environment stays the same, that $1.45 a share. well well below the estimate of trade will continue to work but we see a lot of flashing warning $2.09 a share. revenue, better than expected at signs. the yield curve was inverted $20 billion. the estimate of $19.66 billion it isn't inverted anymore but it was inverted long enough free cash flow it is predicted 7 out of 7 last negative 2.9 billion they only delivered 62 airplanes compared to 190 in the third quarter last year.

there are no charges but there recessions we have pmi that tanked. is an increase in cost of the 2020 looks like the recession. max program. the cost will increase by $900 better than ever odds for million. recession. they spread that cost out over that decade long bull market the lifetime of the program. growth this will be now handed off to it is now up to $3.6 billion value stocks >> let let me give you an indication of guidance for the return to how wide that stock is service for the 737 max. difference in valuations boeing i wh the as wide as it was in the nifty guidance that it has at least one regulator to approve this plane to service by the end of the quarter. fifty and nearing the tech bubble levels. once they increase production, i think both an election and once they are certified again, recession in 2020 is going to they expect production rate to steadily increase from 47% up to cause a big rotation to what has been outperforming into much 57 per month by end of next cheaper opportunities. year some say you are stretching it a yes, long bonds. you look backwards and long little bit that's the guidance now.

two other pieces of guard ans bonds look like the deals. today on the wide bodies long bonds in the u.s. are a from 14 per month down to 12 per screaming buy. month by the end of next year. >> have you totally shifted now. reason why, the trade tensions do you want to agree or revise have caused the chinese airlines -- remember china is everything you told us the largest commercial airplane market it has caused this emto hold off is. >> i think there are good points on orders. as a result, boeing says we are made but i disagree. not seeing what we expected. >> so respectful >> i try to be professional. the prudent thing is to cut i don't think there will be a dream liner production recession next year. moving to an extended period of then the triple 7 x, originally patience extending to a restart. they planned on first deliveries you've seen the housing market getting better end of next year that is feeding into some parts that is moved back coming by early 2021 of the value chain if you think you are going into again, guys, a big miss. a recession, it feels like buying value into the face of

what would have been a pretty $1.45 compared to expectation of dramatic earnings decline would be early your comment, i like defensive $2.09. >> you see what i'm saying, down staples and securities and the 2% i don't think that will dictate value. >> and long bonds. the trading? >> are you asking is that base >> you need some duration ahead going to be there and support of a health. i like quality the 330 range? quality still has the ability to >> yes compound and there is still a here is the reason why even though the max continues to be plagued with these problems trade off. ultimately quality that hits a bump along the way they just had this leadership i think those are going to change look at the backlog, it has not continue to be served up for us. >> particularly, i think what we changed. would agree on is you combine still roughly 4400 a plane value and quality. something like that. there are some nice etfs that if you don't lose those orders, you know you have cash flow could do that thing. >> or you could buy stocks coming in. even with the increased cost that is what people are banking >> i would agree

there are a lot of companies that one could find and will protect you on the down side on at some point, we'll hear more particularly if the political color in the conference call today, if they say we lost 50 environment turns on the faang orders this month and then maybe another 25, then you will see stock. when it turns, you'll want to be the stock really start to hurt that is what is supporting it avoiding netflix and google and now. the knowledge that they have all of these orders in the bank, boring stocks like at&t and eventually, they'll start making verizon. that money >> there are communication >> if you can call these things. stocks about growth and for more >> i'm not calling it. i'm just telling you consistent cash returning. the nice way to participate and >> i try not to either if we protect your abilityt just point out the notion that the stock is down from $440 dividends and dividend growths show me the money today such that i can be more patient with solely as reflected in the financials and out look. if we remove the uncertainty you you as you resolve >> when you hear the music,

finishing up your thoughts that was perfect would think it was not trading you guys disagreeing, that is perfect. >> new reports coming up on the positive. adding to that we have a ceo triple play. yesterday's high-flying stock >> absolutely. biogen >> i think as an investor -- you you are watching "squawk box" on would be stepping aside now or cnbc stepping in? recognizing a theater event taking place in washington next week the question is how do investors react to that? >> that's where you make your move think about it in the past with buying opportunities and great stock is when p it looks darkest before the dawn. >> you said the company expects to have at least one major

regulator that approves of the 737 max to the sky that has to be the faa, right? right. >> because they have egg on their face, you take that along with what has happened over the last six months and the trained relationship between faa and boeing, it is clear that faa will be tougher about certifying the max. they asked, look, we think they'll have their certification flight in november they'll turnover their paperwork to us. we'll look at it could be we'll take a look at it after the certification flight

and say you are not there. at this point, boeing believes they'll get one certification by the end of the quarter the european component to the faa, they've already said january at the latest. lord only knows that there is a political aspect there >> i'm sure. trying to run through some of the dow kmocomponents running through strength like jp morgan and procter & gamble. >> stock was up 2.5% mcdonalds a little soft, down 5% if the stock performs well, then the bar is higher. we don't know yet whether the market has been corrected in

looking at this phase. it is so far encouraging when it comes to boeing, phil mentioned, no new charge maybe that is a positive stock is also down it is not as if it has come in with high expectations >> a lot of times the charges don't matter i'm off to college. i'm worried about my parents' retirement. don't worry. it is all going to trade on voya helps them to and through retirement... dealing with today's expenses ...while helping plan, investor's assessment whether this new timetable seems invest and protect for the future. i think they'll be fine. voya. helping you to plausible. next year, this is a lost year and through retirement. for earnings next year, they are expected to grow in shares way lower than numbers in this period >> looking at caterpillar numbers. they are indicated around $131 >> eli lily came out with earnings also raised the full year out so only down 1.7%.

look to 5.75 to 5.85 this stock was up 13.5%. maybe the street is going. >> still the market is going to >> looks like revenue is flat. try to say that this ism wonder with the pressure on drug manufacturing is probably a low. pricing if they have to be more we are reflecting up from there. weary of what they are doing in the united states. >> time for today's executive edge a new report on venture capital. trying to look through the noise. it is believed it is possible to >> we just spoke to the vest in diverse areas and make returns. how investors can put this research to work honeywell ceo. focused on local employees and head of multicultural client supply chains. still, ifs that an indication of the economy there, to your strategy group >> tell us about the new point. >> then you've come off the research in terms of how people worst of the macronumbers.

can change their approach as a we'll see how that goes. result of it thank you. the report was surprising. we'll see both you of later. we found out when one of the issues could turn away, fit is often cited. biogen's announcement of the new easily 20% of portfolios are companies you could call that drug and zuck othe n hill have expansion risks things that they don't know "squawk box" will be right back. about. think 20 years ago, software as a service or cloud computing or more recently driverless cars. but when they see these represented by entrepreneurs that might represent a demographic they say fit maybe you should think about changing the lens and things that represent multicultural entrepreneurs. >> do you think this is just

racism what is going on here? when you say fit and that's their rational, what do you think the real rational is >> what they cite is that the but in my mind i'm still 25. that's why i take osteo bi-flex, companies fit the others or to keep me moving the way i was made to. perhaps this entrepreneur has it nourishes and strengthens different profiles, so i can't my joints for the long term. osteo bi-flex - blame it blanketly on racism now in triple strength plus magnesium. this doesn't fit yet these other things like cloud computing or driverless cars, at some point, they didn't fit either think about hair care products for a certain demographic think about duel security. that wasn't around for a while that was sold for $2.35 million to cisco

where were the vcs vesting in that >> right two things going on. on one end, there seems to be a push towards esg issues. on the other, there seems to be a pull back. they were looking at certain types of things that they had divested from where they decided it had been a bad decision -- >> i hate to do that, some bad news out caterpillar out with bad news. it missed revenue $12.8 versus the $13.5. they are talking $10.90 to $11.40 well below the 11.70 the street was expecting.

they are looking at end user demand they think dealers will make ♪ further reduction due to uncertainty. the last six quarters have been ♪ disappointing to the street. this is a bigger decline at synchrony, >> the primarily decline was a $1.2 billion movement in dealer we're changing what's possible inventory. die creasing inventory after every single day. but what does "changing what's possible" increasing by $800 million mean anyway? ♪ during third quarter of 2018 well... >> lowering expectations if you run a business, it means a lot. they are going to focus on exit for starters, we provide you with financing options strategy they are going to bring numbers for your customers. down significantly that way, you can help them buy the things they love caterpillar, again, biggest dow instantly and pay over time. and that turns them into serious fans. component we've seen a as miss hang on, there's more. want customer insights?

mcdonalds down yesterday and we've got those, too. we use data to show you what your shoppers boeing we had been looking at the dow have already bought so we can tell you before this and we were down what they might consider buying next. slightly now the dow looks like it would and you can offer them the perfect products. open by about 33 points. that ceo gets it. from adding unique capabilities >> we were just interrupted by to your company's apps to bringing you loyalty programs, our technology and financial solutions are changing what's possible in all sorts of ways. this news. one final question is where are so, how can we change you on the ipo broadly what's possible for you? we were just talking about wework and some type of the bell what about next year >> the ipo market, it is volatile there is a lot of uncertainty. that is something that has a major baring we have to leave the conversation there i wish would could do this longer we'll do this again, i am sure >> we'll take another look at caterpillar.

you can see it is giving back significant amount of the decline of almost 6.5% that is putting pressure on the dow. we'll talk more about why the company is lowering its outlook peatnsy they missed exctio that is coming up straight ahead. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

>> biogen, a lot of people's mouths dropped making a reversal on the alzheimer's drug with plans for approval i remember the first time when it looked like it wasn't going to work. the demise of the treatment was greatly exaggerated, right >> apparently so, biogen said it was stopping the development of the drug yesterday, a complete about face said more look at the data the company plans to file for regulatory approval next year. if approved, this would be a big deal for biogen and the

alzheimer's community. still,a lot of skepticism around the new data despite the major move higher in the stock yesterday, guys. >> stay with us, you are going to help us out here with this. joining us now first on cnbc, the biogen ceo there is a lot of skepticism i don't know in the analyst community, sometimes skepticism is good when they don't understand they are not buying into new results. >> thank you for having me what it demonstrates again is the road to breakthrough

innovation is full of twists and turn it is a process. the persistence and passion and specialization of the company in that space demonstrates that it >> announcer: welcome back leads tosuccess. you are watching "squawk box" live from the marketsite from times square >> good morning. take a look at u.s. equity futures right now. we just got this news from caterpillar. not good we'll talk about it in just a designed to the data seen in the second but the dow turning south patiences, you are saying it there. looks like it would open actually removes the plaques downright now. nasdaq off about 28 points, s&p you are convinced beta analoid off by about four points >> caterpillar came in with is the key >> more than ever. we are seeing this antibody who earnings of $2.66 below the estimated earnings

joining us now, the founding is binding to the right part of partner at research. the beta is able to erode and lots of bad news what happened? >> what happens is as the eliminate the plaque leading to economy has been getting more the benefits we see in terms of uncertainty, dealers have decided to take down inventory their dealers are independent. cogniton we are seeing effects in terms if they get too far down the of memory and more >> not in all the studies you did though curve. doesn't mean it is good but they >> because these were different are getting behind the curve >> taking fast action but not antibodies with other products what the street was predicting >> i think joe means one of the phase three studies wasn't heading into this as people thought maybe this would be a successful >> there are many reasons for little better. >> there has been inventory that the data was wrong this was a mistake coming out this is what we know now that has been okay the importance is that working we cut estimates a month and a with the fda for months, is half ago and saw products.

backed up in the u.s we saw that as a positive. if end demand isn't there, that >> at some point, you must say this isn't working isn't good >> they said end demand isn't we must have done this wrong what was your reaction -- tell that good. >> that is not yet terrible. us the happened? doing the right thing but could >> we did the analysis based on go either way. >> does that sound like a buying a smaller data setarned is thats opportunity to you then? >> throughout this quarter, were not exposed enough toh we've had pretty weak results dozes of aducanumab, we started to have some hope and we concerted with leaders and with the fda with the first one >> looks like the trade war, the mid-june and following -- deal with china, going to get a deal not going to get a deal. is treading water good leading to the day before

yesterday, the path forward to >> it looks like the trade war filing for regulatory approval that is going to weaken as it in the u.s. >> the dose wasn't high enough drags on and on. >> correct it has to be sufficient and getting the resolution as a sustained dose of aducanumab to remove the plaque. >> tell us more about your plus. >> other things that aren't in interactions with the fed. line with what is happening. they indicated it was reasonable this is probably not that big a to go forward with the filing based on the data you have now do you anticipate that you'll be surprise >> not a shocker we've seen people bring in able to get approval with just this data and will that be inventory. not sure what is going on. enough to convince insurance companies to pay for what would let's stock up ahead of the be an expensive drug. >> it was a thorough engagement tariffs. with the fda over months and the >> who else do you do? evidence came over time. >> deere and others. we collected tremendous and >> what do you do with all the rest of those? complex set of data including >> again, investors are waiting biomarkers and imaging and the forest cuts. fed dedicated a lot of time to engage with us so we come to the there has been an estimation in second meeting it was not just a talk where you all of this.

can try your chance and go for they've held up well in all of file this was a thorough engagement this and as a ceo, i'm reasonably >> you think caterpillar is well confident that can this lead to run? market approval. >> yes >> they say, you know, turn in they've done a good job. the results, we'll give you an oil and gas is not all that answer but there's -- in this, there's great. it hasn't been a powerful no implicit recommendation from the fda that they're going to upcycle. okay this at this point. we'll see how they manage. >> the fda hasn't communicated about it. >> when we return, more earnings >> they'll look at everything. is it 50-50 or do you think it's news we'll tell you why some big more than that >> by the way, since the beginning of the process, the companies are blaming the trade fda has the entire data set from war. don't miss our first on cnbc the studies, the entire -- so the data we have, they have. >> good and bad. interview when ned segal is with >> we worked in full transparency with the regulator. now we have to respect the us twitter ceo. process obviously and concerning the -- and the most important is that based on this data and we'll be back after this we call it the mother standard of care. work, the fda is encouraging us to redose the patients from the

two studies. >> we talked with one of those patients yesterday who was in the trial, thought the drug was helping him and had to stop in march. he's elated that he gets to go back on the drug. >> 60 million people per year globally. >> yes very unfortunately -- >> 70 to 80% of dementia is alzheimer's. >> since we started this discussion, five or six patients were diagnosed in this country with early mild alzheimer's extend a million patients in the u.s. only. >> give me a pie in the sky market potential it could be a hundred million dollars? >> you would understand that i will not discuss the stock -- >> what could the market potential be for an alzheimer's drug. >> you have to -- there's a spectrum of how well things work and that's a question, actually, i want to ask michelle which is

the data are not obviously straight forward and so if you get on the market, there could be questions from insurers about who should be covered for this drug, who should get the drug. anybody with alzheimer's will want a drug that's been shown to help, but it's not a cure. do you need more data to convince insurers to pay for this. >> for the time being, the only trial that we plan to do is to redose the patients if it is a trial. we will redose the patients. we are confident with the data that we communicated, including the 40% improvement versus placebo on activities of daily living, but think what it means for the patients, the caregivers, the ability to get out of the home, the ability to eat alone, the ability to dress it's the idea that if our mothers alone. were diagnosed with cancer, to take care of one's finances how would we want them to be treated? this is tremendous. >> all right very good. that's exactly how we care for you. >> we are all rooting for you. we're rooting for humanity. with answers and actions.

>> and for the patients. to hear your concerns, >> and for the patients. quiet your fears, lift your spirits. that's the mother standard of care. thank you. i hope this works. this is how we inspire hope. >> thanks. >> we're going to transition and this is how we heal. talk about facebook and its ceo cancer treatment centers of america. mark zuckerberg testifying on appointments available now. capitol hill later today he will face questions from the house financial services committee from their plans to create a cryptocurrency called libra. zuckerberg will address the company's trust issues he says, when it comes to calibra, it comes to trust if america doesn't innovate, our financial leadership is not guaranteed joining us right now is the former chief security officer at facebook he's also a cyber security analyst. do you think it's been fair or

unfair that libra or calibra has been targeted the way it has been by regulators >> well, i think it's fair for regulators to ask lots of questions about any proposal by an american company to massively change how payments work i think perhaps some of the stuff thrown at facebook in this case are about totally irrelevant issues and that's going to be zuckerberg's big challenge today. a lot of the things people talk about are relevant to what kind >> waiting on quarterly numbers. of policy facebook has and political ads and the none of that has to do with the security and safety of a cryptocurrency the company announced the he's going to have to privet off airlines chief is leaving. boeing has lost about $40 of those concerns. >> why do you think facebook led million in market value since with its foot forward or the crisis first emerged backwards or whatever, but as the leader of this group, as >> i got to tell you, the

chatter about mccall i sister opposed to when they first came out of it, some companies that have distanced themselves from this effort, but rather than had been long coming make it a facebook effort, make a lot of people upset about how it a collective? and what happened with all of >> that's a good question. i think clearly david marcus, the former president of paypal the pressure there, you knew who ran the messenger group at somebody would go under the bus. facebook through huge growth, >> you new kevin mcallister was, he's the brains behind the project and i think it would have been difficult for him to lead the project and to make it do you not remember? >> you are talking about a movie look like it was from somebody else i think you're right i think the rollout was a reference now. mistake of having it tied so aggressively to facebook >> i thought i was not there's a world in which you can try to create a subsidiary that's owned by many, many remembering correctly. companies that has a much more >> "home alone." independent brand and i'm >> mcallister was his last name? guessing looking back that they wish they would have done something that didn't make it so clear that calibra is tied to

the facebook brand the idea that zuckerberg is one the testifying about it is yes. kevin. >> let me tell you about failure right there. you want it to be an investor as whirlpool. hurt by lower sales. the face, somebody who's totally they've raised prices twice to independent. >> to the extent that investors counter higher costs from and the rest of the world is going to be following what tariffs but says it won't raise zuckerberg says today in his them further until the costs of testimony, what is the larger threat or risk to the business raw materials changes. i know the conversation is supposed to be about crypt toe >> check out shares of irobot and libra, but i imagine it's going to go into many other after company beat estimates but places given the conversation and speech he made about free lowered holiday estimates. speech last week. >> yeah, it will be interesting. the company announced it will clearly there's a number of people on that committee who are roll back a price hike that hurt really looking forward to be able to hit zuckerberg oheir pe sales. you can see that price is down by about 20% >> when we return, has softbank's infusion impacted the >> aoc was on twitter asking people for questions for him >> yeah, which i think is smart.

i think it's great that she's vision fund more recognizing that there's a lot of really complicated issues here, none of the responses were relevant to the cryptocurrency, right? and i think facebook is in a difficult position right now if you become the world's most important communication media for political speech, you will end up with almost all politicians wanting something from you and you saw that in the georgetown speech of zuckerberg begging for facebook to stay neutral. and i think you're going to see a lot of inconsistent concerns from the two sides of the political aisle in this meeting. bl he can bring it back to actually being about a cryptocurrency is going to be a huge challenge one of zuckerberg's weaknesses in these kind of situations is he doesn't do well with concerns about facebook that are more emotional than logical, right? there's a lot of directionally

correct things that people say about facebook that are not totally rooted in true fact and is i think he's going to get a lot of that from this panel of people --pushing back against that is a hard thing for him. >> we will be watching today we appreciate your time of course and hope to see you soon. thank you. >> thanks, guys. >> check out the futures, the dow was almost up in positive territory, caterpillar is now just barely down and boeing was up 1%. it went from down seven point to up three points. it's $340 right now, so that's reflected in what we're seeing in the 8:00 hour and it begins right now. boeing posts results amid the 737 max crisis cater pillar under pressure. >> mark zuckerberg heading to capitol hill today

the committee's ranking member will join us live as the final hour of squawk box starts right now. >> announcer: live from the most powerful city in world, new york, this is squawk box. >> good morning and welcome back to squawk box on cnbc live from times square the futures right now down 20 points, the two big drivers this morning for -- first row is quite a bit lower, boeing and caterpillar, the company sticking with guidance that the 737 max will return to service in the fourth quarter and pushing back its first delivery of the 777 x. >> they say at least one of the major departments they expect to

have -- in one nation, maybe the faa would be the first one they would expect shares of caterpillar trading all over the place this morning >> welcome back. following its quarterly report softbank announcing they'll take here's what this analyst told us control of wework the company shortly after the release hit valued at about $8 billion, the tape. >> we've seen mixed reports out of industrials there's been inventory that's been coming out. people acknowledged that and taken it down, that's been okay. probably closer to $7 billion. for cat, we caught estimates a let's talk more about the impact of their other big investments month and a half ago we saw in some of our products that production was coming in. including uber, slash and if demand isn't there, that isn't good doordash >> caterpillar shares down as here, the former edit tore and much as 6.5% but also turning chief of the group positive as other points it's down about 1% >> good morning. don joins us now >> the big question. he's got the full story. >> those profits and sales, they both missed estimates, so this massason basically stormed the is the world's biggest maker of

construction and money equipment. it cut the full-year guidance gates of this area earnings as well that stock was peeking positive what does the wework story mean at one point to everything else it was down about 8% at one >> he is a true believer that point earlier on new technology and processes are the disappoints results were going to change our future he's vested money this that, driven by the increasing caution among cat's dealer network made a money in that that's the big hurdle right now when you are out in the front for the ceo who says that in the year, you are going to hit some current quarter, he expects end road blocks. he's living in that reality. user demand to be flat and that dealers will continue to reduce their inventories due to global economic uncertainty the biggest drop in sales is for resource or mining industries, i think he wanted to be. that was down around 12% certainly with wework, they are construction sales were down 7% paying a price and energy and transportation fell by 2% frchlt a geographic were they ever worth that? perspective, those margins in asia lagged as construction sales fell more sharply.

>> where are they coming up with caterpillar has been seen as a the $7 billion big bellwether for the status of >> i believe that is pushed -- i u.s./china trade talks believe the $7 billion is as low you have other proxies, they've as you can humanly make it so managed to reclaim highs for the they can turn around and average year the same cannot be said for in the $15 billion and a shot at caterpillar and other industrials that will be one of getting it back. the big divergences that traders >> they started breathing their own fumes. will pay attention to. you have to be a believer in we'll see if that canbreak out given what's happening with order to have the conviction on u.s./china trade talks. >> thank you for that. we have other stocks to watch. these but they overly did it blackstone reporting if anyone has the value, it's distributable earnings those guys assets under management growing by 21% the stock, though, off just marginally right now >> when i said seven, it could eli lilly shares fell a bit be eight or nine >> i don't think he's going into short. down 3%. this to flip it. he believes it is worth more down the road. and hilton worldwide, the it is a better investment at 7 company raising its full year

earnings forecast, but it than 47. >> what does his experience do narrowed its forecast. in terms of his ability to buy new companies in the future. anthem offering upbeat guidance if you are a founder, do you of its government-backed health look at that and go great. plans and those stocks moved putting into next the next fund. 1.5% this morning. you are a start up with the >> a bipartisan coalition of senators is pushing for a great idea the next uber. divestment of china. do you look at this and say i want to be in business with him? marco rubio is a member of the foreign relations and >> i think you do. intelligence and small business committees it's good to see you i want to talk to you about >> not tha hself divestment from china but i would like to ask you some broader questions about these trade talks with china >> he's going to make you whole given what we're seeing today, i when it is over. >> i might be ali baba in the know you've been very hawkish on end instead of wework. this, we've heard from a lot of companies today hearing howthe i know some who are -- trade talks have impacted their >> who are weary >> well no business the honey well ceo is hoping to

that getting rid of adam was the see a deal get cut down the problem but that they found that road what do you say to those companies who are struggling to be a dishonorable situation >> if you think the trade talks are impacting your business, if you were an investor, would wait until one of china's companies puts you out of you give massa money >> would i put the core of my business, they've stolen your portfolio into the money intellectual products. no i never would have i'm not in favor of divorcing china, but i think we have to rebalance our relationship these are all risky investments we have a 20 year practice of he's talked about this 300-year assuming that once china got plan or business rich, that they would behave for like us, that's not been the that's a long time a lot of things may go right or case they are actively subsidizing industries and they want to displace us and it ranges from the construction of rail to heavy equipment to pharmaceuticals to high-tech there has to a rebalancing from wrong. a enjoy owe political perspective and of course for he's done well we sometimes our national interest. >> do you trust the chinese in terms of what we've seen so far

with this deal we think we may have with them. start to believe these folks are >> i don't think we have a deal going to get everything right. in the first tranche it is just not the reality it's been difficult to get the chinese to admit that they >> coming up, a ceo triple play agreed to what's been reported that they've agreed to they're going to try to get away interfaces with the bosses of with what they can get away with nasdaq honeywell and the ceo of biogen. and they will agree with things that they don't intend to comply with >> what do you think the next is real real step should be the analysts are a little we should get tougher on these things or try and come to some skeptical. we'll drill down on that peaceful detente wow, the boss is here. >> we're trying to recalibrate a 25-year pattern here it's not going to be easy. hi dena. they're experiencing some market pain, but what's the after a big business appointment alternative? the alternative is a short-term from caterpillar continuation of the status quo, but long-term it's devastating don't forget, mark zuckerberg on for the country. my job is to act in the best the hill in about three hours. interest of the united states of america, not just today, but 15,

20, 30 years from now. >> let's talk about the move that you're taking right now, there's a letter that you have written to the federal retirement investment board, you don't want to be indices be allowed to put chinese companies into these indices and i guess find a way around what you think is supporting companies that should be on do not do not business with lists. >> there are chinese companies supported by unfair chinese practices, undercutting our companies and stealing intellectual property and we are helping capitalize them with the dollars of federal employees and i think that's a problem in the broader economy where you have other indices that are listing chinese companies. but the most outrageous is that federal employees, including members of the house and senate, your retirement dollars are helping capitalize companies that are actively trying to put american industry out of business forever and displace

it >> you've specifically targeted mcsi what have you heard back from that company >> we got a letter back. they didn't answer most of our questions and they admitted to not doing any vetting. they're not comparing their list of investments to companies that are sanctioned by the united states or the international community, companies that are involved in e greejs human rights violations. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view there should be some disclosure there about that reality. is to go around the world to get it. >> i think in another interview can i rely on deep research to help make quality investment decisions? had pointed out that they're not breaking any laws. what do you say to that? with capital group, i can. >> i think that's interesting. maybe the law should change. talk to your advisor or consultant for investment risks and information. i think that gets back to the broader point, these are companies, these are individuals that benefit from all of the freedoms and all of the opportunities of the united states of america provides in

our free and open market but at the same time they believe that they have no moral obligation or national obligation to do the bare minimum to act in our national interest. i disagree with that and i think that our policy should reflect that. >> what do you think you have in terms of the likelihood of being able to change that law? >> we're not going to be reckless about it. we were hoping that we could sort of nudge the industry in the right direction on some of these things, but ultimately we're going to be careful in thinking about what it is we can >> it is a big hour here on do from a legislative "squawk box. standpoint people rush to write legislation joining us on first on cnbc and it has untended interviews >> boeing to report market consequences we're going to continue to work on it with our partners across moving analysis ahead. the other side of the aisle and >> mark zuckerberg on the hill see what progress we can make on it >> senator rubio, thank you for today discussing crypto your time, it's good to see you. ambitions. a preview of the hearing straight ahead >> thank you. a programming note, don't the second hour of "squawk box" miss our exclusive interview begins right now with her henry fernandez that's coming up on friday at

7:30 a.m. eastern time we'll talk to him about all of ♪ the issues the senator has >> announcer: live from the beating heart of business, new raised. a flood of corporate reports and wild market swings called york this is "squawk box. for technical call we're going to read the charts >> good morning. you're watching squawk box on welcome back to "squawk box" cnbc trends here from the nasdaq mosh pit on driving specific sectors of outperformance. where a rising middle class times square powers a booming auto industry... >> it is a mosh pit. a leap into the digital era draws youthful populations to mobile banking and e-commerce... >> looking at equity futures trade and travel surge between emerging markets. every day, our 1,100 investment professionals down as caterpillar had worse than expected outlook. around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. we had an analyst say at least they are managing things >> depends on in demand. getting caught up on some ♪

stories. as joe mentioned, caterpillar took a hit in terms of revenues, they were talking about $2.66. the street had expected $2.88. the heavy equipment maker says dealers are cutting inventories. end user demands are lower they said demand growth was lower than anticipated right now indicated around 4.5%. martage applications fell 11.9%. the average 30-year mortgage rate jumped to 4.02% netflix has raised $4.2 million

in the sale of junk-rated debt the soon to launch disney plus service. stock now down by 39 cents down after hearing verizon was going to allow subscribers to get disney plus for free for the first year >> coming up in nasdaq earnings at $1.27. joining us now, the owner of the house. nasdaq president and ceo good morning >> good to be here >> what turned out to be a crazy quarter turned out to be good for you. why? >> we had growth and 8% in trading services where we have a lotf demand coming in from changes

the ipo environment has remained ♪ healthy. >> i imagine you want investors to look at your company away from the trading business. >> we have been focused on nasdaq as a technology company welcome back to "squawk box" the growth continues to this morning take a look at futures right demonstrate that we had 9% organic growth and 27% now, it's -- well, we'll show overall in market tech and 11% you where we're at now growth in information services the dow off about 14 points. the caterpillar news sent us driven by index and an a down nasdaq off 27 points >> turning our attention to littics. >> project what you think you can in terms of growth and cap technical indicators in the stock market, our next guest says there's a chance of the s&p ex and how companies are 500 could be on the verge of a thinking in terms of spending on break out. here to explain is founder and products and the other side to the extend you think markets and managing partner at fair lead

trading and ipos are also all strategies breakout sounds just good because i think it means break connected on this. out. >> sure. but it could be break down there are a lot of trends is break -- would you use the driving demand word break down if you meant break down. >> right >> because it's been a long we can offer market technology time and the benefit of better and i think, you know, you've -- there have been times when it performance and trading so they got a little dicey where you can compete effectively. were talking about support levels probably holding and then more services that help them to resuming an uptrend. we haven't necessarily made any avoid fines. money, but there's been times where it's gotten a little scary our market technology helps where you were right about it not breaking down. exchanges and dealers to be more now you think it's consolidated enough to where the next move will be higher. >> we'll see a little digestion profishent even in a trend, there are still a buyer. >> i was walking down the stair here but the levels are so close by way here, they were putting up for not only the s&p 500 but new photos major indices around the world that was a tiny bit of follow

i think you had a win rate out through on the upside. >> and in your work, how much there. with some of the weakness you've seen, do you think the window does a breakout with -- has closed something that doesn't seem to is it closing? have any affect on what we're >> first and second question, i doing here because we think we have a domestic economy. would say the overall volatility does it -- are they correlated has been helpful for us from a >> yes, generally speaking trading perspective. we want to see it be broad you are right, becky, we have had about a 76% win rate based. the stock 600 is approaching when we look at the rest of the year and into 2020, we have not final long-term resistance been anticipating that the around 400 fourth quarter would have as that would be a major, major many ipos as in the second and breakout for it. third quarter fr just with a little follow through we'll get those that has been something we've breakouts. >> i'll tell you what's expected going into 2020, it is a really frustrating, i want to try to healthy pipeline tie some fundamentals to what would be causing that or if it the performance of a few names, were to happen like you're everyone assumes they are an saying, it kind of means maybe individual story some other things don't happen they'll look at how their story there's a lot going on between resonates. they are preparing for that.

now and next year in 2020 and our conversations continue to be the election about whether we're enthusiastic in a slowdown, whether a >> what do you make of this wework situation recession could bring in a >> we have to recognize when a change in the executive branch company chooses to go into the on which party is running open market, there is a lot of things if you're bullish and you think disclosures there. we're going to breakout, i want as companies are coming in and to extrapolate to what that tapping investors. means, we're not having a recession, the prospects are every day savers trying to put better for a second term. >> those would be natural their money to work. drivers for a continued uptrend. and what those things that -- those disclosures in this >> if there was not a recession? particular caseworked. >> exactly a positive economic outlook, an so investors could make an informed decision. election that's favorably >> do you think there is perceived that type of thing something broken around the you mentioned several things valuation? >> i think it is just priorities creating this sort of i guess tug-of-war for the market and that's what's created the investors are concerned about hyper growth trading range -- your ability to attract into the >> trading war >> that's exactly right. market on open business. and the break out needs a they are really focused on catalyst, probably, fundamental or macro i don't know what that's going to be.

growth focused on how do you drive that to me, as long as we see that and generate profitable growth confirmation, that's where i think you can get more aggressively long. as private investors are notice of course the cyclicals thinking about moving to the are gaining some traction here public markets in relative terms whereas they are thinking about how they staples and utilities, those should drive towards that yield sensitive type names are growth. >> how did they get it wrong taking a little bit of a backseat here and i think that's important as well. >> they were in the front seat for a while. a lot of people got hurt in >> they were for some time >> because we just had someone this if i thought $40 billion, $30 recommending them again. >> they lost momentum in relative terms and the pull million. the companies that underwrite. backs that we're starting to see in some individual names are really creating that loss of -- they are telling adam neumann, >> when do i get excited what do i need on the s&p? they are saying we might be able 3028. >> that's the final summertime to get $80 billion or $100 highs basically. need to see a couple of days above that level on a closing billion. you are in the private market. basis. that's your breakout and the

>> right target from that breakout we do support companies that do becomes 3120 with a short time secondary actions. >> right so people like adam were able to frame. you're assuming the trajectory will maintain itself. >> any idea of leadership there? get out. you said probably the i would look at it and say we'll cyclicals -- >> some rotation into financials look at it from the process for one, we're seeing some base development. among a relatively professional break outs that are pretty exciting investor audience. it is up to the investors to technology is very solid even make sure they are digging into despite the loss of strength what they need to know behind the software names. it is up to them >> and the lows on the ten-year there is no disclosure regime in are in on the yield. >> they are. private markets. the long term oversold condition >> do you thy there should be in seems to have generated a time where so many public improved -- investors are buying into >> boeing? private companies through >> i can kind of picture it. >> is there a technical column, private markets as you look at boeing. >> when you see a stock gap down like it did and trade back up into that gap, that tends to be indicative of a shakeout i didn't take out a major

support level that was close by. i can't remember the number. professional invto, they >> 92 or something. have the ability to go in and >> there's the chart we've all been sitting around thinking when is the worst of the news out -- >> i told you to buy it. >> he's claiming to buy today -- >> i told you when we were down seven that's what i was alluding to it's not about earnings. >> i was suggesting that next week there would be more of a risk, because he's going to be testifying on capitol hill -- >> he's got a glazed look now. she's like who >> listen, i want to see it stabilized, that would be the convincing factor for me when you see the gapdowns, you see a few weeks of that turn and that's important because that's where the accumulation happens. >> awesome thank you. how often do you come on >> not often enough. >> i agree we'll put it on the calendar because there's times -- especially in the middle of night where i was questions. >> you're worried.

>> that's what i'm here for. >> do you have anxiety while you're sleeping. >> i've described this first you wake up and it's like, okay, and then it's like -- >> you have to pick up your bucket of worries again. >> that's today. you don't? >> i'm going to get you some cbd gummies to level it out. >> you know what, they don't have to be cbd, just give me gummies and i think i would be in a better mood. we're going to talk about caterpillar and boeing, amazingly enough, boeing up by just over a percent right now. caterpillar which has been down as much as 6.5%, it's down by less than a percent. don't forget to subscribe to our new podcast, you're going to get interviews and much more stay tuned you're watching "squawk box" on cnbc h? you know it's an suv!

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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 p-tech students around the world. it's a game changer. welcome back to "squawk box. futures paired their losses now, 17 points is where we are on the dow. the nasdaq a little bit worse. the chip sector is weak today. and the dow as we've been reporting all morning, caterpillar and boeing have been way down and then unchanged and boeing is now actually trading

higher and i think caterpillar at this point is indicated down just fractionally. now we have a dow that's unchanged. we have some news out from google this morning. the company says it's achieved a breakthrough called quantum supremacy. >> we talked to the ceo of honeywell because they're involved in quantum computing. >> tom cruise in scientologist, i think he's at a level 7 -- that would allow new kinds of -- >> why are we looking at you because someone was entering the set. >> i thought they were trying to catch my glances at you. >> a reaction shot >> it was eye-rolling. >> did you know he was quantumly

supreme. >> what does that mean >> it means he can do calculations at speeds that are inconceivable. you can't conceive of it it says that quantum computers took 200 seconds to perform a calculation that would have taken the world's previous fastest supercomputer 10,000 years and that kind of puts it into perspective 200 seconds with the new one, 10,000 years with the old one and that's why it is called a quantum leap, and they're occurring faster and faster and that's why people propose it around the year 2040 when computers know the billion times the sum of all human knowledge it's all very exciting. >> i liked what he said earlier, whatever. >> he was not impressed with google. >> we're talking about the

honeywell ceo. >> we'll see. >> when we return, we're going to talk more facebook under pressure again mark zuckerberg is going to be grilled by the house financial services committee it happens today but first, that panel's ranking member is going to join "squawk box" le.iv stay tuned for that conversation when we come right back. i'm embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free ♪ we have no debt, we don't owe anybody anything, and it's fantastic ♪ ♪ ♪ ♪

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♪ ♪ go big or go home, we're just an hour away from the opening bell on wall street. welcome back to "squawk box. we're live from time square. here are some of the stories that people are going to be talking about today, a bump in interest rates took its toll this week. applications fell by 11.9% as the average 30-year mortgage rate jumped 30 basis points. premiums for health plans will

drop in 2020 average rates for the most popular mid-priced plans will fall by 4% that reversed the years of double digit increases we have more big name companies that are set to release results, microsoft, ford, tesla and the dow futures turning positive even after the reports that disappointed the street today, boeing and caterpillar. dow futures are up by about ten points and that's because those components have reversed some of those earlier losses >> let's talk facebook mark zuckerberg set to appear before the house financial services committee today congressman mchenry joins us this morning he's the ranking republican on that committee but first we begin with what investors should

be watching with today's event. >> andrew, we are ready and waiting for zuckerberg to arrive he'll be testifying before the house financial services committee and there are 60 members of that committee. each member will get five minutes to question him. you're looking at a minimum of five hours of testimony. this hearing is supposed to be about libra. in a written statement, zuckerberg said that he agrees, he promised he would not launch libra anywhere in the world as long as all u.s. regulators approve it and he supports delaying the launch. the other big focus of the hearing is supposed to be housing, that's important to the chairwoman and facebook has been accused of hosting discriminatory lending ads on its site in his statement, zuckerberg

says that facebook is working to end red lining on its platform and is also working to di fers fi its own worse force we're expecting zuckerberg to get questions on everything from election interference, anti-trust, political ads. he has put in a lot of leg work here on capitol hill to make personal relationships with lawmakers. i saw him up here as recently as yesterday afternoon. he met with the chairwoman of the committee one on one as well as the ranking republican patrick mchenry last week. we'll see if he can leverage those personal relationships during his testimony today back over to you >> thanks. let's bring in our guests who will be questioning mark zuckerberg at today's hearing. joining us now, congressman patrick mchenry. like this quote here, patrick, the knee-jerk reaction to innovation in some corners of dc is if we don't understand the technology, kill it. more recently we saw that with

libra, now you point out you're not advocating on behalf of libra, but you have questions, but you're not willing to say i'm against it like many are saying just right from the start. do i have that right >> look, we've got plenty of people that are against it what i'm telling you is as a policy maker here in the united states, that is not my judgment. we make the laws we're not approving an individual's opportunity to comply with laws and so what i'm -- what i think today should be about is the nature of libra and the nature of this new payments platform, the opportunities it has for americans -- american investors as well as those that move money across border, i think that's what the hearing should be about. but my fear is that we now have american innovation on trial by

policymakers here in washington because they don't understand it >> and a couple of things that you point out, i think, are very relevant and very pertinent and that is that you're not sure that libra is a cryptocurrency you would refer to it as a stable coin rather than a cryptocurrency and that's not the way it's perceived by most of your peers or most of the public i think and you would like to get it out there exactly what libra really is. >> it's very different in its nature it's a closed-off system it uses the words and language of cryptocurrency but uses the underlying technology of block chain and so there's a lot of confusion about that if you have an open distributed ledger, it truly means no one is in control, the whole network, the whole block chain in and of itself is the security measure and so that's very difficult for us to understand because what we've had since the existence of

human beings doing exchanges are trusted partners or trusted third parties that we have hold things for us. that's why we have banks, that's why we have custodial banks. these very specialized systems that have arisen over hundreds and thousands of years what we have here with true cryptocurrency is a new invention where trust is built into the exchange not given to some third party. >> that's a great quote. and you're talking -- and we've had this conversation before you think bitcoin is much closer to a distributed noncentralized crypto than libra could hope to be. >> it's the original actor here and whoever wrote the bitcoin white paper. it is the original actor here. it is truly the gold standard,

if you will, of cryptocurrencies. >> it's digital gold and it's the gold standard as you say. no pun intended when you said that, i don't think, congressman. >> maybe there was it's too early in the morning for me to be too jokey. >> patrick mchenry, you've turned into this libertarian and as a result i think you are -- you would say that bitcoin is already out there and you would probably hesitate to regulate it too much at this point is that where you are on bitcoin? >> yes and i believe that as a policy maker here for the united states government, i believe that's in our national interest. i also think that if you look at examples around the globe, you think of the most repressive large country in the world, i think of china, china tried to cut off bitcoin and they couldn't do it they have the great wall of china, the fire wall that

restricts speech in china and they weren't able to block bitcoin. it is deep into the nature of bitcoin that is a trustless system. >> what i don't understand about this whole situation is right now -- and i know you may be on a different side of this, but it sounds like so many of your colleagues are more update about libra than they are about bitcoin which makes -- which is completely baffling. because bitcoin, nobody can control as we've just -- and you've just outlined so very well and libra is actually something where there's command in control and if you want to pick up the telephone you can figure out how you want to regulate and it and deal with it that way do your colleagues not understand what you're talking about? >> you have a big company, facebook, facebook has massive trust issues and anti-trust issues at the same time. they're a deeply distrusted company right now by especially

the political class on both the left and the right because they're a big company doing this type of innovation, you have american policymakers trying to pounce on them before they can innovate. this also sends a chilling signal to innovation in the united states, number one, and number two, sends a chilling -- has a chilling effect on people going public and that unwillingness to go to our public markets and being subjected to the tortures of many public companies in terms of washington action on them and on top of the overall expense is a concern for me let's be measured in our approach let's not have this breathlessness that this is going to be a new global currency it may not even work, the technology is simply a white paper at this point. but let's face it, if it were some random payments processor, we'd not have this conversation. we'd not have additional

congressional hearings, but it's facebook. >> congressman, last week we had david marcus on, the head of libra, and they're trying to make the point that this is not a facebook project, everybody is going to have an equal vote. zuckerberg saying, i won't launch it anywhere is this a facebook project or not? >> it's clearly a facebook project and one of their enormous challenges. david is still an employee of facebook but is the main spokesman for the libra distinction which is supposed to be separate. that raises a number of questions. my bigger question is, isn't this just basically facebook's response to ali pay. that's a significant piece of competition that we as americans should want countries to export

our cultural imprint on the law and we're letting the chinese write the code. >> and the project is written in switzerland. >> that's going to be one point of contention not just for me but for other committee members. if this is really about an american project and an american company exporting our rule of law globally, then why in the hell do it in switzerland. let's drill down on that is that because of regulatory uncertainty here in the united states or is there something about the swiss that we lack here in the united states. >> have you taken a look at your colleague, aoc's, twitter account today? >> no. i actually seek to have a happy start to my day, i don't start my day with reading political twitter. >> shea member of

congress given five minutes to question mark zuckerberg, what would you ask? >> i get to ask questions about four hours before she does. >> you can go on line and see if you like any. >> okay. >> crowd sourcing your questions. >> it's not a bad idea because right now if you're lower down on the dais, the difficulty is trying to find an original question i get to ask questions, sadly it's not first. >> do you own any bitcoin? >> i do not and it's an active choice on my part to have a pretty refined set of disclosures, financial disclosures. i disclose my access >> well done. >> policymakers day trading is not a smart move and not a good look the only change in my assets

over the years is i got married and whatever my wife had -- well, i get to disclose. >> we had -- that was -- nevermd there was some -- some of those guys had some crazy stuff going on years ago >> yes well, look, i don't want to get into -- i don't want to get into those questions here in washington we've got enough of a dumpster fire of a debate here on other things. >> right the swamp fox right behind you, hiding behind that pillar, congressman. the swamp fox was a good guy. >> he was. american revolution, he was from south carolina which in north carolina we call the lesser of the carolinas. but that's -- you know, either here nor there. >> you can go through some of the places where they used to hide out, up and down there. >> all right, congressman. he knows a lot, doesn't he >> he does. >> compared to -- >> you don't have to cast stones

at the others but he knows a lot. >> okay. i've seen some of the questioning from the others for years -- >> we're thrilled to have you on the program. it's always good to see you, sir. >> a lot more on squawk. we're going to talk about boeing it looks to battle back as it deals with the -- as it tries to deal with the 737 max crisis we're going to talk about the company's latest quarterly results. don't forget to subscribe to our podcast, you can get interviews on the show. dcore it out on your favit poast app. you're watching "squawk" right here on cnbc

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welcome back to "squawk box. today's top corporate story is boeing phil >> andrew, we sometimes say the numbers don't really matter when a company reports quarterly earnings, but in this case if you look at what the stock is doing, it doesn't matter they reported a loss of a dollar -- earnings of $1.45 a share. revenue came a little better than expected and when you look at the free cash flow, negative $2.9 billion any way you look at it q3 numbers were ugly it's because of the 737 max guidance the guidance would be driving this stock they stick by their guidance of return to service, that means a

regulator, the faa improving it to fly again in the fourth quarter. production ramps up next year. costs will increase by $900 million but there's no special charges that are being taken in the third quarter that ramp in production just for a reminder, right now, they're at 42 per s to ramp that production up to 57 per month by late 2020. boeing's ceo's comments will be in focus, people want to hear for him for the first time and get a better sense if they feel comfortable with the guidance on the 737 max, as you take a look at the stock over the last month, keep in mind that they are also changing their guidance on the 787 dream liner they're going to bring it down to 12 per month by the end of next year due to concerns that the orders they expected from china are not coming in.

that's a temporary drop in production. >> thank you for that. joining us right now to continue this conversation, cnbc contributor and research analyst at bank of america does it change any of your forecasts? >> the things that jump out to us are what phil mentioned, the 737 return to service. we have it returning to service in march are we changing that because of what the company said? no this is a company that has a history of overpromising and underdelivering. >> march is still it >> march is still it. >> how do you get to march >> if you look at all of the hoops that have have to happen, that's how we get there. it's not just the faa you have to deal with the faa, the asset, transport canada, the brazilian authorities.

there's a lot of pieces that have to come together. >> how much headline risk is there? are people going to look at this next week when dennis is in washington is additional dip or that's an opportunity for him to hit it out of the park and somehow the stock moves higher >> my sense is what will happen on the hill, typical d.c. theater. that's how it is going to play out. i think they did a decent job, this quarter, ring fencing some of the risks investors were worried about production rates they cut that. investors were worried about the return to service. they put that out there. i think for a little while, the negative catalyst that could happen, where to from here, quarter to quarter cash flow, return to service, that kind of thing. >> jeff, let's talk governance here they just effectively pushed

kevin mcallister, the unit out, they have split the board -- split the chairman and ceo role at the top of the company. how much room does dennis muilenburg have to move next week had he's in front of regulators and policymakers? >> i think dennis has to be clear, concise and accurate. these are all of his strengths it is separating the roles as you know, i nevie is a govera sometimes it makes sense like when we saw the new york stock exchange, john thayn stepped in at a time of crisis we had an issue where it was great for restoring public trust. a chairman was the former ceo of citigroup over him, vikram pandit at citigroup, somebody parachuted in there dick parsons to help run cover and that was very helpful there as some of his best days.

>> what is your assessment of this board do you believe it is a strong board? >> yeah, i think this is a strong board with incredible bench strength there are people who know safety, who know the aviation business, having david calhoun there as the new nonexecutive chairman is an excellent move. between us, i wish calhoun was going with him to washington next week. person you just had on, who was coming off, very reasonable, patrick mchenry, you were worshipping as a wonderful balanced legislator. tim sloan, no daylight between what that kindly seeming patrick mchenry did to tim sloan at wells fargo, genuine hero, fi h fixing problems that he inherit and what elizabeth warren did to him in the senate. there are problems on other fronts at boeing the company has been great about disclosing them. the board has been a great job

centralizing a focus on safety, that maybe should have done it even earlier, but unifying it -- the country -- company wide and having that report in a central engineering fund a great move. >> just to disagree on one set, you said they have been great about disclosing things. the company would tell you they thought the most latest -- the latest disclosure which came friday they said was unfortunate in terms of how it was done and how it was brought to the public >> you think the company did something wrong? in that revelation that came up? test pilot from fall of 2016, put off some weird instant message that nobody now can figure out, and they -- the company has been trying to get him, as soon as they discovered it they went to him and who did they hear from his criminal attorney. they turned it over to the government, to the department of justice. and the department of justice did not want the transportation department or the faa to know about it why? because the faa like boeing is under criminal investigation

so they couldn't fork it over. why the justice department decided not to give it to their peers and the executive branch, that was a government to government call. boeing did nothing wrong there we have no idea what this test pilot was talking about. >> i disagree with the legal analysis you suggested i will say by default there is a public trust issue and part of that public trust issue is a function of what has felt like a drip, drip, drip in terms of information that has come out. >> there is always pulling back the band aid, always somehow trickling of more bad news the fact that in chicago, perhaps, they didn't know it as fast as they did in seattle, there was some combination of alert equipment that wasn't on an instrument panel, that no commercial aviation would have on an instrument panel, angle of attack it was coupled with something else, the sensor inconsistency indicator which maybe should have been on the instrument panel. and done by a subcontractor, one

of the 900 vendors, they made a decision and maybe didn't hear about it fast enough in chicago, the headquarters these were issues. the problems with the tanker, that phil had alluded to, the 777, there are problems out there which is the 777 is the long haul plane, there is some problems with -- there are cracks in other 737 ngs, not the max, but cracks in some wing issues they're going after these are things backing up in commercial aviation that they the head of commercial aviation now has left the company but it wasn't any overt deception, no deceit and when company head bad news about the dreamliner, the delays, they put that out there >> we're going to run out of time we have to get to jim cramer >> thank you for your perspective as always. ron, thank you we have to get to jim cramer and see you soon, both of you. >> jim, what do you think about boeing this morning and caterpillar? >> well, i'll tell you,

absolutely boeing did fence these issues i believe that like andrew just said there are many people who feel look, the customer is always right and the customer in this case, the aircraft companies that want them, in other words, the airlines, or the people who fly, and if the customer is always right, the company is not done. the company must make more tough decisions because nobody is bigger than the institution, the institution must be preserved. caterpillar is amazing my travel trust owns it. i told people to get out of it i can't believe the stock is going up when it was flat. this was a terrible quarter. you got to call it a terrible quarter. you can say listen, not as bad as we thought. what is that i think the stock should be appreciably lower. it is in my trust. i don't care i tell people, listen, i can't trade. this should be down 10 unless you fell we'el we're abo have a trade revolution. there is just a rush to own these stocks that i think is

somewhat ill informed. >> jim, thank you. we're going to hear more from you in a few minutes >> give me liberty or give me death. he's a good guy, eviscerater sonnenfeld calling the ax man. he seemed look a patriot to me. >> might have turned on jeff to go to his conference or something. you never know i don't know >> jim, thank you. we'll see you in just a few minutes. and tonight on "mad money. don't miss john donahoe, as he leaves service now for nike. the ceo of csx too we'll be right back. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs.

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make sure you join us tomorrow we got to go "squawk on the street" is coming up right now ♪ good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. premarket, largely looking past these weak results from cat and boeing shares of both rebounded from early morning lows big day with zuckerberg back on the hill meantime, the future of brexit remains cloudy we might have an election before year end that seems more likely yields have come in on growth concerns, ten year now back below 1.74 road map begins with cat and boeing big earnings