>> it is 5:00 a.m. and here are your top five at 5:00. the trade war olive branch maybe, the white house considering another show of faith. trade talks continue one year since the first fatal 737 max crash. boeing will finally face lawmakers today. beyond meat getting burned we speak with an investor that

jumped in early. and hollywood outrage that netflix has a new feature that will let you binge watch all of your shows in hyper speed. >> good morning, good afternoon, good evening thank you for joining us on this busy morning the chart to watch today is beyond meat. shares are off 9%. posting their first profit ever but the market wanted more we saw shares fall over 10%. beyond meat, certainly a stock to watch down 9%. an early investor will be with us in a few minutes. a double dose of breaking new in the energy space new reports that saudi aramco

aiming to price anticipated ipo that will occur december 4 then the stock will begin trading in riade on december 11 separately, the wall street journal is reporting that marathon petroleum may spin off the speed way gas station chain. also reporting its ceo may be replaced the situation on marathon is fluid. the correct ticker is mpc. there are two marathons. often confused getting back to the markets. the s&p 500 as you might have heard about, coming off its 14th record close of the year the dow a little more than 1%

away from the all-time high. it is tuesday, kind of spitting rain here in the northeast we'll call it flat the bond markets and yields still very low we'll talk abouthousing here a well talking about encouraging more home buying or home remodelling. here is a hint it is. >> finishing up their night as well japan, one of the hottest markets in the last couple of months china flat but slightly down in the european trade, the uk has been the only market besides ours in a trend. optimism around trade progress is really keys to the story. that has been the market moving

thing. eunice yoon, it is always great to see you on. tell us where we stand right now in the u.s./china trade talks. if you don't mind. >> i am 12 hours ahead of you but besides that, the u.s. trade representative's office has said it could considerextending tariff exemptions. companies have from december 1 to 30 to pitch why their products should be exemption already cell phones and stainless have been added. beijing would welcome anymore of these exemptions they have been demanding that additional tariffs be removed as part of this trade deal.

it confirmed phase one of th agreement had been completed today on state tv, there was a commentary featured that president trump's remark that a deal could be, quote, ahead of schedule is, quote, realistic but not guaranteed, of course. foreign minister was very critical today of the fcc's decision to hold a vote on november 19 to determine whether or not huawei or zte are national security risks. because that designation would block u.s. companies to buy gear from huawei and zte as they try to build out the rural parts, the telecon infrastructure for rural parts of america >> always a pleasure have a good night. >> despite the optimism around

trade, your next guest says investors may be ignoring some warning signs. mark, it is good to see you. do you think the markets have gotten ahead of the fundamentals >> i think the markets are looking for the better side of this story it has been a mixed picture of the earnings i think what we are ignoring is negative earnings growth and a chance for earnings recession. good news priced in to the market people will get some sort of trade deal which tones things down this whole trade dispute is causing uncertainty. capital expenditures are down. there are a lot of warning signs from business. the labor market are starting to slow hours worked i think there are enough signs

out there that tells the investor, hey, we are not suggesting a crash or recession. i wouldn't think that this is a totally rosie picture for stocks those returns are quite muted. no timing of when we'll have the period of relative underperformance it doesn't mean you can't ink out the gain they are looking like they are behind us the recent activity won't become the market. >> is there anything you do

like starting to have the one handle and the slowing if there are uncertainty. look, that trade deal if it happens will be within a few months of the 2020 election. especially with some of the competing programs we have seen. consumer is still relatively strong staples have done really well. they are not overpriced and we continue to look there >> you have been warned and we appreciate it. have a great day there when we come back, downright ugly we'll reveal the name to watch that is the mystery chart.

why the mother land, you know. ireland could be the big winner when it comes to brexit. did you know it has the hottest economy in europe? uber revealing its next generation delivery system six propellers, no wheels. it is for the burger, not you. we are back with the story coming up. servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary.

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>> as we learned, the uk has reset the clock. extending the brexit deal. that leaves uncertainty for those who do business with england. companies looking to stay tied to the eu. ireland's economy the hottest in europe ireland has the youngest population in all of europe. >> joining us now, ceo of the agency responsible for attracting investment to his country. thank you for joining us do you have a view on brexit you must will it happen >> it is not going to happen in the next couple of days, which is the next milestone. we'll have to wait and see will it happen before the 31st of january. brexit has equated to cost and

disruption and created uncertainty, we've seen a lot of investment as a result over 80 companies have moved functions to ireland because of brexit pharma and medical technologies. anything touched by regulation how much of those moves are directly because of the threat versus that they want to be in ireland with the 12% corporate tax. >> we've had a strong run. even brexit, extraordinarily strong run that is a lot of things including a consistent transparent tax rate we have access to the u.s. labor market you mentioned,we have one of the youngest labor forces. so all of these things are contributing

brexit created the trade into europe they needed to continue to trade and they had to choose another location >> you've been so attractive on that side as well. you are clearly tied to brexit >> absolutely. is there a risk of an irish exit no we will continue to be part of europe investors continue to trade into europe support is really high over 90% popular sup porport >> how does a lower tax rate here impact your competitiveness? >> listen, all countries change their corporation tax from time to time. i think, people maybe read too much into the tax piece.

i think it is the stability that has benefitted us. i they the companies know what they are getting >> you don't have politicians there saying let's raise the corporate tax rate >> no, the two parties that have governed have pretty similar policies there is no prospect they had been extraordinarily clear. >> who is your competitor? many companies based there and we are talking about dispersing head quarters. frankfurt? london new york >> i think all of the above. i think some companies have looked globally to see where they want to regroup to. i think the uk remains a strong competitor

if you look at independent analysis as to where financial services, brexit services related. you got hot, then really cold. you are hot again. are you making the same mistakes you did last time? >> no. i don't think so our mission is sustained growth. i think we are making the right decisions and investments. we have a really good proposition for investors. >> cranking on all cylanders a rare stumble for google. those shares on the rail later on, facebook dipping its toe to try to help you stay healthy. will you like this story?

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shrinking tumors in patients with advanced lung and colocectal cancers and alphabet reporting ad sales did drop but costs pile up rising faster than revenues as it vests in new business google shares down finally, the ugly. grubhub, shares sliding more than 30% 32% to be expect gave a weak outlook. they blame per mipemisquis dines people using more than one app when we return, wildfires

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>> welcome back. 5:23 here. we have a developing story as numerous wildfires continue to

rip across california. the massive kinkade fire continues to grow. p garchd pg&e plans for more blackouts. jay gray is there with us. what's the latest. >> reporter: brian, i want to give you an update here over the last 30 minutes or so. a flurry of activity we've been pushed down the hill. they've been dropping water about 100 yards behind us. flair ups in areas already burnt out. devastation for miles. a string of fires burn through wine country and burn out of control. you've got hundreds of thousands of people evacuated. those still in their homes

many without power you've had structures burn a bit of a dip in the winds moving into today, those winds are expected to pick up late in the week trying to make any progress understanding that mother nature is coming back fiercely towards the end of the week. they'll be dealing with a much different animal that is a tough scene. they are indeed very brave be safe, stay on the move. thank you very much. >> utilities remain in the crosshairs of this terrible story. pg&e stocks were hit hard. remember they have been operating in bankruptcy protection since january costs will likely cut into recoveries that's why you are seeing many of these bonds and stocks sell

off. others to watch include edison international and sempra energy as well. still to come, why wall street has a ways to go if it really hopes to rewrite the record books your story of the day. we'll make y mouore smarter are coming up after the break. re se. as a mom, i knew it had to work. there were babies involved... and they weren't saying much. i envisioned what it's like for babies to have diapers around them. that's what we do at 3m, we listen to people, even those who don't have a voice. at the end of the day, we are people helping people.

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>> his favorite team, the 49ers

are undefeated half way through the earnings season, have the numbers for the markets been that hot? why isn't anyone building houses just how hot the home renovation market really is and boeing ceo in the hot seat headed to capitol hill facing tough questions on the safety of the 737 max jet and can he keep his job. "worldwide exchange" rolls on now. welcome back 5:29 on the east coast i'm brian sullivan we are half way through the 5:00 a.m. hour. the dow down 32 points

a long way to go the s&p coming off the 14th record close new records for the overall market the dow, still more than 1% away the bond market not moving much. yields around that 1.8%. now that we are finally at a new record high. who better to do that than our good friends over at bespoke investment group we are in day 3,085 of this bull market this run is only the second longest of all time and by a long shot. the longest bull market was run from 1987 to 2000 just before the nasdaq bubble popped that run, 4,494 days

gained 582% without having a 20% drop on a closing basis ever that record may norv be broken then there is this run which would have to go to june 2021 to tie that record. third longest bull market of all time, post war 1949 to 1956. just how far we've come and how far we need to go. more perspective today marks the half way point of the earnings season dom chew joining us now. have they come in more like the 49ers or the browns? >> all about expectations. i think the 49ers are good because they came in with

relative wi relatively low expectations. this earnings season is all about expectations six dow components are part of that as well no shortage of big corporate catalysts. remember, this is going to be a big day as well with energy earnings all of these names scheduled to report exon and chevron on friday we are just about there. if we tally up everything and whatever comes out this morning by two or three hours from now when the count is all done, we should see a half way point. with about 204 companies reporting from refinitiv, you have a nice beat rate. generally speaking, that beat rate pretty good and just about in the same line as historical

context. if every company reports as expected, you could see blended earnings growth come in 2% lower. that is where we've been eyeing things out blended revenue growth up 3.3% things look pretty good but because of expectations for earnings season have come down so steadilies it easy to beat those lower expectations >> we got it what about sector by sector. you mention the energy if that sector was stripped out, you'd see modest earnings growth there is a reason why. if you take a look at this, energy is expected to drop by the earnings growth. technology is down about 5% as

well those represent the biggest drags. the two biggest tale winds real estate and health care. those are the out performers, underperformers. we'll see if those play out as we hit the half way point. back to you. >> thank you now to arguably the most talked about stock in the entire market not tesla. it is beyond meat. shares off again concerned about two things, driving and selling. more competition and more shares as a lock up expires welcome back good to see you. we are the media we focus on the fact that stocks have gone from 220 to over 90.

about a 250% gain. what do you think the stock's issue has been >> i think with the ipo lock up that was released yesterday. you have many investors that have incredible profits. stocks up about 4 x. that stock is off its high you have a certain amount of dislocation. how i look at it, markets are efficient. last year, they did $88 million in revenue on an annualized basis, there was $360 billion they had 36% gross profit margins. when you weigh that against any other meet product you are looking at tyson with 12% gross profit margin.

this company continues to underpromise and overdeliver >> one man's opinion i will say this, i've noticed their products in the super markets. i keep an eye out. it wasn't there before it is there now. is that a good sign or bad sign? >> this is not going to be a winner take all market more competitors will come on. who will be the other competition coming on. but right now, they are in over 50 countries the product, most people eating this are reporting they are flexitarians not just vegans or vegetarians plant-based meat is here to stay you've got healthiness and

sustainability as the big trends >> you hear the estimates about the size of the fake meat market are they overstating it? >> no. look at the plant-based dairy market take that out and if the meat market is 1.4 trillion, start to play some what ifs if plant based meat can be 10% of that. massive. this could be coke and pepsi >> you are staying in? you are still in >> i'm actually hoping the stock pulls back >> because you'll buy. >> i would be a buyer. i think the long-term life of

this is incredible >> next, beyond shrimp that is in investigation with new wave foods. >> the title will be shrimp fraud. >> pretty ugly like jumbo shrimp do not miss the ceo of beyond meat look at that, holding the burger and got the t-shirt on coming up, facebook getting into the business of trying to keep you healthy. we'll check on how they are doing that and other stories you'll be talking about. call this the baby shark boom. how that song is being used to hopefully help the nationals win the world series

it is random but interesting i apologize.

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>> welcome back. the case, schiller home price coming amid concerns about the strength of the sector because nobody is apparently building new homes but they are remodelling. joining us, ceo of the kitchen and bath association love having you on this is the real stuff somebody deciding to spend $8,000, $10,000. you know they end up spending more how is that market doing now >> it is doing well. predicting 2.5 growth in

remodelling spend up from a report 2018. it is still expanding, just at a slower pace. >> new home construction is down 54% since 2005 yet, 85 to 88 million millennials getting into home buying age >> weak affordability right now. 60% increase only 26% increase with wages combined with student loan debt. housing is not where we want to be but not bad. >> how are people paying for their building are they using t as atms >> working with equity cash? >> not using equity lines or

bigging up under their homes but cash >> biggest trend is cash >> do you see this trend with boomers. boomers are getting older? >> but houses are getting older too. 65% of homes are nearly 40 years old. combined with the fact that people are staying in their homes longer whether for aesthetics or functional reasons, you have to accommodate your spaces and where are you spending the money, kitchen and bath. what are your members concerned about? they are cautiously optimistic housing slow down has dominated the media. remodelling because people are staying in their homes longer. are they vesting, our numbers

tell us. >> you do not see a near term recession. >> not near term people who are afraid of the economy do not spend $20,000 on a new bathroom we hear a lot about what is happening. a lot is driven on housing, in residential kitchen and bath, we see continued growth that is growing rapidly but still growing. >> why are there 800 types of faucets. i was redoing something, i was like why do we have 800 faucets.

>> that's why you need help. >> and the environmental faucets are awful. it's like drip drip. >> i can't believe there are too many faucets >> why, why? >> here is the question actors are asking netflix want users to binge shows even faster. actors want to know why. it let's users speed up the play back speegd up the speed or slowing down content cr content creator says not so much saying no way they will move forward with this.

bingeing the show on netflix from london. sometimes the accent is really thick. slowing it down, maybe speeding it up, never. >> like listening to an audio book on 1.5 times speed. >> i listened to a podcast last night. totally missed it. i need slow speed. >> facebook will create a personalized list of health screenings through a new preventative health tool from basic reminders to more serious reminders about cancer screenings and heart check ups the second for way to health tools. >> also they are not going to send you ads based on activity you can't post accidentally your

activity and only a very, very small group of people will see the data >> they don't want to use your data >> not at all. >> drones may become a reality the uber eats delivery may start next year. uber described the drone to deliver the order in eight minutes including loading and unloading. it has passed critical design reviews and expected to waunch in 2020. >> do you need the burger? with the cannabis boom, you need the drone. you are not going anywhere you might be a little hungry i'm thinking shaggy from sk

scoobydoo and why he was always hungry >> on deck, several major automakers throw their support over the fight of fuel efficiency standards boeing ceo will face angry lawmakers involving two deadly crashes of the 737 max jet what will likely be a very enouheinarg. 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 p-tech students around the world. it's a game changer.

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>> in the recap. all the headlines you need 40% in part to weaker oil price. top analyst estimates down from

3.8 billion from 3.8 billion from a year ago. saudi aramco up. does that mean they need to price that argument on december 4 and retrading on december 11 the company behind tiktok denying it is trying to go public weighing an offering as early as next year. several automakers siding with trump administration in letting states set their own fuel efficiency standards gm, and others said they would side with trump. boeing is set to face critical questioning over the 737 max jet. appearing before congress. denis mullenburg expected to say

his company made mistakes. phil, it will be a hot one >> sure. the questioning will be intense. he will admit boeing has made mistakes and did make mistakes in the voeflment and manufacturing of the 737 max this will come down to a few key areas. first, the the question of how far up did the development of the 737 max come this might go all the way to the top of the company did boeing mislead regulators with the faa text messages, they came out from a former boeing technical pilot who suggested he may have misled regulators.

those were understood. those messages finally, does denis show contrition the tenor and tone will matter he is going to say that they are learning from the experience saying i can assure you we will learn from this and continue learning we have changed and will continue changing. there you have it. one of the quotes we'll hear from denis mullenburg today. this is the one-year anniversary of the lion air 737 max air cras crash. >> it is a bipartisan thing. they'll all go on the attack, as

they should? >> they'll be tense. his tenor and tone will be critical you'll hear people today, i have no doubt hearing people say, you have no business running this company. you should be fired by now i'm interesting to hear his reaction to that question. >> turning back now to the markets, the s&p 500 in first new record high since july what do you do now that yesterday was so yesterday joining us head of product at direction. what are your clients doing? squ >> interesting this has been the year for the s&p 500. looking forward, the momentum is

behind the markets we are continuing to see the investor and trading community follow suit. >> how so? a lot has been the s&p 500, we've seen people move back to tech market leaders are an interesting mix. if utilities, real estate and tech you have two very domestically oriented continuing to show growth of the cloud platform that got investors to get back on their toes they are betting on big tech and names like microsoft, how are they doing that? >> we are not actually seeing significant amount of risk being taken, we have two leverage etfs

that allow investors to amplify their composures we are not seeing volumes really pick up. we are seeing volume names pick up it has been a mixed bag with some of the earnings coming up with more reporting to come. >> are what are people getting out of >> we saw significant amounts in the gold product that has begun to come off the table as people dip their toes back into the risk area. market this earning season, it has been okay investors -- companies have beat expectations but they are not beating them as much as they have over the last two or three

years do we need to rely on the underlining liquidity. you can have that additional liquidity. >> a lot of your products mirror the moves? is. >> exactly you only have to go buy and sell individual securities with in flows and outflows any given date, there is significant trading happening

more reflective of the macroeconomic environment we've been in. there is a little clarity but not an all clear issue >> betting on big tech time for your morning rbi. baseball once again, random but interesting. if you've been watching the world series and feeling like that baby shark song is in your head >> the outfielder was in a slump. trying all sorts of music. rock, pop, nothing worked. his young son loves the baby shark song he went 2 for 4 on the day that was the thing

nearly 5,000 baby shark items have been sold baby shark, big man. astros can close it out tonight in houston thanks for watching. we'll see you tomorrow "squawk box" begins right now. >> the earnings parade continues with the s&p 500 new record high. results from merck, pfizer and more beyond meat shares what is weighing on that and bringing you a first on cnbc interview with the ceo of beyond meat. and gamer walking away from star wars on netflix. more right now

>> announcer: live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box" here on cnbc we are live from the nasdaq marketsite on times square let's look at the u.s. equity futures. you'll see the dow, nasdaq and s&p all weaker today yesterday, s&p closed at a record high for the first time since july 26. you saw the big run. nasdaq took a shot at a new record didn't get there. dow only 1.1% of its record high the fed meeting tomorrow, so lots of market speculation around that. we'll see what happens again, red arrows this morning in