it is 5:00 a.m boeing ceo denis mullenberg admitted to safety short comings in the 737 max you better prepare for round two. the earnings onslaught continues. apple, lyft and more how low will they go bracing for the latest decision from powell and the federal

reserve. at&t looking to start a screaming servicebut with a price tag that has investors very happy how about europe's big one auto talk to the tune of about $50 billion. a busy one on wednesday october 30 as "worldwide exchange" begins right now ♪ >> good morning, good afternoon or good evening from wherever you might be watching. i'm brian sullivan yesterday, we did see the s&p 500 hit another record looking similar to the way they looked yesterday dow futures, let's call them flat all ahead of the fed that rate decision due at 2:00 eastern. a rate cut certainly possible.

dow futures on a holding pattern. waiting for the fed. bond could react to the yield at 1.38%. japan can't go up every single day. a down day overnight the nikkei hitting a 52-week supply keep an eye on japan the chinese market lower noticing a trend, the trend is not really a trend a mixed bag in the markets one that we have been talking about a lot. the other is the fed first the earnings we are talking facebook, apple, starbucks all releasing their numbers.

expecting the first read on the third quarter gdp. down from 2% in the second quarter. you also have e fed. earnings and economy, where should you be focusing the majority of your attention joining us now, market strategist we know it will be a long day. what should be the most important? what will likely be the market mover if we have one >> i think it has to be the fed. brian, we have this situation where the bond market has changed quite a bit. back then. we called for a tradeable bounce now we've gotten that. but the point is any time you

get significant change in trend, sometimes it morphs. this could take interest rates above 1.9% in a key interest level. it could show a change of rates and hold all sorts of implications for the market. >> will the fed cut today? >> they will cut their guidance will be less dovish than it has been and than the money markets have been pricing in lately. part of the reason is, as much as the fed claims they are data dependent at time and showing they are quite a bit market dependent. i don't see them wanting to provide ubers amount of liquidity. i don't think they'll go

overboard. >> if they cut, will they be given the move if they don't cut, will that be a negative signal for stocks >> it will be. as much as the fed is easing now, it looks like this time last year where they were saying they were going to tighten forever. we don't have that type of situation where stocks get crushed and fall 20% it would throw a crimp into the bullish case this is particularly important the stock market is at the key level. slightly breaking the all-time highs. each time we've gotten that position without the fed helping out in any significant way, i think the market would come back in and we'd fall into that range.

we are seeing the markets creep toward new highs but on low volume our viewers at home, they probably don't care about the volume the accounts are going higher. do we have to be worried about the fact there seems to be so little macroreaction to the earnings >> we are seeing the break out as a more meaningful one should help pick up if it doesn't, it will be a bigger concern than it is now. again, in significant point in the stock market and the bond market even the dollar we have several different markets and people are waiting to see what happens. it doesn't surprise me that we

are seeing the activity. >> i'm pulling a homer here because of the space i cover here at cnbc when is it safe to dip back in to oil and gas stocks. trading at $15 or $20 per barrel >> this is an interesting one. i turned very negative on oil. this year, i've become more constructive on the group. a lot of different groups could change their stripes as you mentioned, the group is way behind the commodity it is incredibly underowned and

overhated. this is a group that takes off and people will have to play catch up going through the year. >> there is a lot of debt out there. we appreciate it, matt have a great day talk to you soon new this morning, at&t unveiling details about its new streaming service called hbo max. it will join a crowded field courtney always standing out in a crowd. >> so at&t and warner media hosted a presentation in los angeles saying hbo max will launch in may. more consumers are opting to cut the cord we have the price. it will cost $15 a month that makes it the most expensive of the new services that have announced prices as well as the cheapest netflix plan but the

same price of the current hbo now. they will offer movies and shows from hbo and the warner library including friends and will be the streaming home of south park it will have 50 original series in the first year such as a sifi series they won't release a season of episodes all at once they will launch a version with ads. aiming to have 50 million u.s. subscribers by 2025. you don't want to miss the interview with john stankey. >> how many streaming services does the average household have to pay for >> when you add them up, you wonder is that just too

expensive. you better have some good programs it all comes down to the content. >> the 50 original series but not going to release them at one time what is old is new again look at that >> when we come back here on "worldwide exchange," an auto deal in the works to the tune of only about $50 billion we'll break it down for you. later on, a big thanks to barbie why shares of matel are surging. and throwing nategive shade at elon musk. what he said turning heads next. robinhood believes now is the time to do money. without the commission fees and account minimums.

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>> good morning. welcome back it is raining here in new york and there in chicago we have so much in common. major moves in the auto space today. one of the biggest mergers of all time geoff. >> absolutely.

renault and chrysler were in discussions but they failed. where are we now fca is now talking to psa. this is the peugeot business there are all sorts of financial assets ahead the french government while it doesn't have a financial controlling stake, it does have a stake that gives them a seat at the table potentially the government could still be partially in the driver's seat on this arrangement. the other big issue we have to come to terms with is whether

the markets decide if this is ultimately in the best interest of companies we had volkswagen numbers. the word is that they see auto deliveries slowing in many of their key markets. that's why we got excitement here in their deal everybody understands not only the cost rising but you are seeing slowing sales globally. a combination of these two businesses might ultimately give them some pmomentum and scale moving forward >> not many players left vw, audi and porsche what we would see is a europe with effectively two major car companies.

i'll put renault still with nissan this is a major consolidation. >> it is astonishing it tells you a lot about how the auto investor views the space. trading at six or seven times forward earnings the reality is in spite of this john going trade war story it is probably worth pointing out that

don fanni don fang motors is in this too talking about the ramifications because there is an american story in the mca business and a chinese story. will this current administration want to see these get into bed together >> true story. i think in 1980, my parents owned a peugeot diesel wagon for about three months on deck, the ncaa says college athletes can get paid but is it going to be a double edged sword? p but first, 12.4 billion is how much california wildfires cost in 2018 as two major wildfires

continue to burn in southern california right now we'll go to jay gray with the latest on the devistaastating situation there. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

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perhaps one reason stocks have been up. number two, airbus, their shares lower as well but airbus is cutting delivery targets primarily due to production problems at a plant in germany airbus says it is working to find solutions for customers hit by new u.s. tariffs. >> bayer numbers rose but the number of lawsuits related to the monsanto weed killer has jumped up to 42,000 on deck, we reveal what is the biggest long-term question for boeing as its ceo prepares for a second day on the stand in capitol hill

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>> welcome back. california governor touring the fire damage and slamming pg&e over its continued role in the disaster jay gray has more from l.a. on the current status and where the blame is being passed, jay >> brian, look, right now, we

are inside the command center and staging area the national weather service issuing its first ever red flag warning, extreme red flag warning. fire conditions this week are the most severe they have seen in recent history. >> framed by the dark overnight sky. the smoke and ash, raging deep orange flames define the fight the kinkade fire burning out of control. more than 4,500 firefighters many working 24-hour shifts. the threat to the south in and around l.a. is not as clear but incredibly dangerous >> we have the most significant wind event in los angeles of the year >> santa ana winds that could gust to 80 miles an hour and

continue to swirling for two days or more possibly reenergizing the getty fire and many fear sparking new problems >> things could be tossed overnight or tomorrow. we could see new fire or fires in the area. >> already fully engaged in the fight. uncertainty wearing on hundreds of thousands across the state. really frustrating you can't imagine. just not knowing what to do. and not knowing wear the flames can turn next. >> right now more than 26 million people from california to arizona under those red flag warnings that could continue to thursday it is a rough go >> over the last couple of years. it looks like their aging infrastructure, perhaps poor

management of their own wires and trees around it continuing to come back into focus. >> reporter: you are right, brian. the governor of california really lowering the hammer on them saying it is inexcusable that they put profits over people here. it is going to take time and money to focus on containing these fires. that is a battle that will take some is time as well >> we appreciate it, jay an important story thank you so much. >> still to come back to business we'll break out the tech earnings playbook. you've got these apple and facebook companies on tap. why the head of instagram, owned by facebook says he is worried about the 2020leio ectn. it is trending it should be and it is coming up robinhood believes now is the time to do money.

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cut today or will the president get nasty if we don't. you are watching "worldwide exchange" here on cnbc. ♪ good wednesday morning thanks for being with us it is exactly 5:31 in the morning. futures are flat the markets are waiting on the fed. the fed's decision and rate call will come at 2:00 p.m. today the cut is not only possible it is probable based on what most on the street expect that does not mean mortgage rates will go down bond yields have been ticking higher the bonds are more of a predictor of mortgages something to pay attention to if

you you are looking for a house. the nikkei in japan fell off see what is happening in the early trade in europe. they'll wait for that. in france, the market is higher. getting to the top story that is boeing their ceo is set to take the stand on capitol hill today. in his opening remarks, denis mullenberg apologized to the family members of the families of the victims of the crashes. >> on behalf of myself and the boeing company, we are sorry deeply and truly sorry as a husband and father myself, i'm heartbroken by your losses

>> joining us now to talk about this, principal at kaplan research it is not just that boeing is on the cover of business page new york times, boeing ceo had warning before second crash. senators pressure boeings chief. on the post as he looks back at some of those family members not just on the business pages but the stock actually higher so far this week. is this more a measure of the fact that it is really a duopoly. if you want to buy a airplane, there are two companies you can

go to. >> no surprise he took a beating yesterday and he'll take another one today in the house. you look back past corporate crisis some say what about chip olte, you have other choices there are only two places to buy big airplanes. if you are southwest airlines and you have 700 737s, you really want to believe in boeing customers aren't supposed to think about what kind of airplane there on. >> exactly

what i mean by that, could you see a situation where let's say you are delta which flies a lot of airbus, you might want to reassure the public and say hey, we don't fly the 737 max we fly this airbus and you should choose delta. there is a consumer choice story to this. is it not? subtly making the public aware i was in houston right before the max. united was the last airline flying a max i was booked on the flight on a 737. i was going to get on it i had flown those for years but i will say it was in my head

>> absolutely. and delta is very glad to be one of the only four giants without that exposure. most of that is because it is not dealing with the operational headaches. on day one, there are going to be consumers aware of the fact i'm not sure there is anything boeing can say to reassure people >> i'm sure you know a lot of pilots i've spoken to a couple of pilot friends who have flown the 737 max. they have talked about the plane, they don't really like it they say it is kind of jumpy is there any chance this plane will never fly again

>> i've thought about that it is a good question. it is obviously a very, very small chance we have seen other things happen here that seem improbable. the idea we've been looking at a year of grounding. that is possible as march comes around here. it is a different kind of airplane boeing not being able to just slap new engines and then dealing with mcas at some point this plane will get back in the air flying safely and people move on. >> we have to go but just because we bring it back to service doesn't mean you have to get on it. if you are united and american and people say, we are not

getting on that plane, they might go back to boeing and say, give us a refund people are rejecting getting on that plane let's talk more about corporate earnings facebook and apple tonight two little startups hoping to make their way in the world. >> facebook shares up nearly 45% this year despite all of this scrutiny over issues like antitrust, privacy and advertising. the stock has been under pressure shares have been down nearly 8%. no doubt investors will be looking for guidance on how those issues will be weighing on the companies out look and

skpernss earnings expected to come in at $1.91. well street looking at revenues of $17.4 billion rbc says it expects active monthly user to hit 2.45 million users despite robust activity on instagram. >> what about apple with the newest iphone 11 any insight to how that is doing? >> we are going to get a read on the initial sales of the 11, 11 pro and pro max. the report includes 10 days of when those phones were on sale it is an important indicator especially going into the holiday quarter. looking at apple's guidance plus

any comments of the possible tariffs that could hit apple products we've seen shares bounce back since it issued that guidance cut. that stock up more than 50% this year part of the reason for that is this growing focus on services investors are highly anticipating the launch of streaming. apple tv launch and that will be a big topic on the call. >> it will be a big topic of conversation going forward >> joining us now, live from his pajamas. cnbc contributor and great guy good to have you on. apple is up 44% and facebook up as well. >> hello, brian.

i'm glad to be on this fine morning. in terms of facebook, they can expect a pretty decent quarter in terms of apple, you know and i know that facebook is not. facebook topped out in 2019. you've seen some big peeks since. not the least of which was that move down to i think 125 back in december 2018. i think it sets up ska extraordinarily well into earnings this evening, you are looking at a stock that will blow back to those levels we saw in 2018. in terms of facebook, the set up is really good i want to dislike facebook for many reasons nobody is leaving the space because of users

if you go back and look. quarters have been pretty solid. the moves in the stock have been based on the fact that the headlines have been such that facebook needs to spend more on security and those types of things if you are looking for a move in earnings, facebook sets up really well. >> twitter in particular, cancel facebook, their user numbers keep going up. people say one thing, they do another. they want to look up their past flames >> three of my two friends are on facebook. what is the number one thing you'll be pulling out of those facebook numbers >> it is amazing how moosing you can be this early in the morning. >> i'll be pulling out active users. if they lost anybody on the

platform if nobody leaves, advertisers will be leaving. those numbers have been sub only strong >> let's talk about apple. still a phone company. are iphone numbers still the most important thing to pull out? >> a year ago, i think that was true but now, to your point and elizabeth's point. services numbers are over 22% of their revenue. their mix is changing. that's what you are seeing apple will earnish $14.75 next year if they start to get into a multiple that makes sense, you get a blended multiple of the

earnings and you are looking at a $280 stock people like from morgan stanley have slapped a price target on it a lot of people are starting to do the math. the run this stock has had is historic if you really look at it since the middle of may this was a 175 stock and now we are at 244 yesterday was a big move i do think the quarter is going to be good the question in terms of apple is did it run too far too fast if you are asking me to choose, i think the price reaction might scare some people.

>> tend the hard way the double five we'll see you tonight. thank you. coming up, houston looks to lock up the world series in game seven but they've already lost the ability to tie one other amazing record why that is and why the '96 yankees should be very happy and new concerns from instagram's head over his concerns of parent company facebook's ability to handle the 2020 elections

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so servicenow put your workflows imm-hm.cloud, huh? your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you. a double dose of stocks to watch today. let's blast through this amd third quarter revenue. q 4 missed estimates drop in sales of theent prize.

stock down 2.5%. young china topping forecast revenue no short of estimates strong same shore sales. young china down 3.3% blame pigs things like barbie and rubber baby buggy bumpers i got that out let's get to the favorite section of the day trepdi tre trending stories making fun of my tongue slips. >> our brains aren't always working. let's talk about some trending stories. these are fun. pay pal founder says elon musk may be an innovative ceo but may

not be the best role model he says his work intimidate young people it may be easier to start a internet work from their college dorm room. >> allowing facebook's role to spread misinformation saying it was naive and late considering the consequence of connecting billions of people while facebook has made progress the company still has work to do on the platform of those looking to spread information. the ncaa will allow student

athletes to profit off the likeness of their name, and image. crafting their own rules marking a major shift in what has been a decades long hot issue. >> here is a problem here is the problem. the big ten and sec are going to draft rules that are so lose the big decision come to ohio state and get rich. i don't know if that is good for competitiveness. let me ask you this, if ohio

state goes undefeated, you think they'll win? >> i don't know. >> stand by your buckeyes. >> i hope so but some of these sec teams are so good. >> i don't think they are as good as they were last year. >> lsu quarterback was ohio state bred >> wasn't good enough for ohio >> elks for life >> my wife was a lumber jack >> astros hoping to secure their title last night but tho juan sotto hit a home run i think still hasn't landed. beating the astros forcing a

decisive landing another rbi. had houston won last night's game six, it would have landed in the record books among extremely rare company houston would have been the fourth baseball team in modern history to lose the first two games at home and then come back to win the whole thing 1985 kansas royals, 1986 mets and 1996 yankees the 96 yankies did something they could have done w lose the first two at home and then win the next four to sweep it so the yankees are the only team ever to lose the first two and win the final four

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>> time now for your executive recap. hbo max streaming service will launch may next year and cost $15 a month. hbo ceo will join us this morning. shares of j&j up after the

company found no signs of asbestos in its baby powder. the fda found trace amounts purchased on line. a deal between fiat and peugeot could create a company worth $50 billion. the fed expecting a third rate cut for the year. will we get a rate cut today >> i think we will do we need one, no >> you'll get more and like it >> the consumer is not liking it the confidence kind of peeked sinced fed started cutting

rates. that's not behavior that suggests consumers like it if no one wants it, why are we getting it >> answer your own question. >> wall street wants it. if you look around the world u.s. and china are moving closer and closer to a trade deal we don't know how those are going to look. but the range of out looks are getting narrower >> is this the last rate cut for the cycle? >> at least for a year we get a cut today, will the next cycle be up? >> our view is that the next

cycle will be down you think we need to wait and save their amo >> i think people were benefitting from it. savers were beginning to benefit. consumers were benefitting you saw the consumer rate coming down something that shouldn't happen but it was in my view normal is always better than abnormal >> i like it given our best investment play right now. what do we do? is it that hard of a question? >> it is where you are getting yield, you are not getting a lot of yield anywhere you have to be willing to take a little morris being than you probably would want to maybe things are just going to resolve themselves and maybe you

should just wait >> sometimes waiting is the hardest part i appreciate the candor and love the jacket >> thank you it is velvet a special "squawk box" now >> good morning, a key gdp number, fed and earnings from two faang names. >> grilled on the hill, today house members get their turn >> hbo max will get their new service that will cost triple the competitor "squawk box" begins right now.

>> good morning. welcome to "squawk box." i'm becky quick. welcome to our new set we are still live at the nasdaq marketsite old school where we are all looking at each other. back to the future you and i this way, becky in the middle >> i got to get used to this >> very much like our set years ago. >> i like the round table. >> i have been the umpire in a tennis match for years at this point. >> this is nice. we get to look at each other and ou