"squawk box" begins right now. >> good morning. welcome to "squawk box" on cnbc. we are live from the marketsite in times square. i'm becky quick. let's look at u.s. equity futures. you'll see green across the board. dow is indicated up about 53 points just about the amount it fell by yesterday. it was down 55 points yesterday. the dow is now sieeeing its longest losing streak. the s&p indicated up about six points and nasdaq up by 26 treasury yields look like the 10-year is yielding below 1.8%, 1.755. >> overnight, president xi said

he wants to work out a trade pact with the united states and has been trying to avoid a trade war but he also warned china is not afraid to retaliate when necessary. eunice yoon joins us putting in his comments du jour. there is always something for those who think it is going to happen and then a qualifier. what do you think? >> that is right it is interesting that president xi jinping weighed in. this is the first time we've heard those remarks. unfortunately, the content were not anything different from the standard government line about the trade discussions. he was speaking with a group of international visitors including henry kissinger.

his point was that china does want to have a phase one trade deal however there does need to be an understanding that u.s. and china are seen as equals and it has to be done with mutual respect. that's what we had heard repeatedly what was also interesting was how he hinted at some of the tensions saying when it comes to the financial opening, china still wants to have a financial -- what he called financial sovereignty. that is raising a lot of eyebrows here that it is just another reminder that even though china is opening up, it still wants to make sure the state has a lot of control the stock market wasn't particularly encouraged by his remarks dropping to a three-month low. u.s. naval vessels went to the

south china sea. there are a lot of concerns about whether president trump will end up turning the hong kong human rights bill into law. this weekend, we'll have another interesting referendum on the pro democracy movement the city is holding district elections. these are normally not particularly interesting they focus on very mundane issues this year, it looks like it will be very different. almost 4 million people have registered to vote in this election it is going to be seen as like a gauge of public sentiment towards these protests there are some concerns that beijing and the authorities in hong kong could end up suspending the elections if they see more violence. there is a bit of a hint of

concern because the hong kong media in the past hour or so have started reporting that the hong kong high court has reinstated a face mask ban for the next seven days which would mean that it would be harder for protesters to hide their identity if they were to go out and protest around some of these election and polling booths. but the security is very, very tight. there is a concern that there could be more violence a lot of people who watch this closely are also worried if these elections are suspended that it would enflame the public anger towards beijing. >> i feel some empathy for president xi if i were to examine my feelings closely when i hear him talk about these nebulous, we need to

be respected and both countries need to -- it sounds like gobblygook if you listen to some of the real hawks over here whether senator rick skcott or marco rubio, there are just some things china won't do. it seems like they tease us and we get close and then he comes out with these nebulous, none discrypt ways of stalling. more ways about what united states is asking china to do it is annoying me now. now i think it is annoying >> actually, joe, you are right about the blacked out part

what i think is interesting. kind of difficult is i hear what you are saying i feel like i have conversations with academics here. some of them are hard lined. it's as if i'm on a totally different planet i have heard over and over that the chinese feel that the u.s. has to make the next move. the chinese have compromised a lot. from the chinese perspective they said look at the opening. today, there was a negatives list put out they've already started purchasing some agriculture al products >> you can argue it is not the

50 billion they are saying we are buying all of this stuff, this is not a balanced relationship. >> we are living in different worlds i think president trump's perspective is that it is already an unbalanced relationship that has been benefitting the chinese for a long time as they were saying they were a developing nation and obviously now they are the second largest economy >> i mean, that's the argument you hear in the u.s. repeatedly, i have heard from many people here some of them either in the government or close to the

government or just privately that china is the one making a lot of the sacrifices. that's why there has been such a big push to get the tariff roll back the u.s. started this. they started it with all these tariffs. the only way they could start this is by having a roll back from tariffs there are a lot of people that say the partial roll back is okay we don't expect that the u.s. is going to lift everything even though we've been asking for all of those to be lifted. there is a very strong feeling here that the u.s. is the one that has to make some type of move on the roll back. from china's perspective, they'll feel like the trade deal is much more equal >> unfortunately that is kind of a perception that china doesn't always speak

totally forthrightly about things that's saying it a nice way. we've got president trump over here who you would say, you can tell when he's lying because his lips are moving. >> i didn't say that but you were saying there used to be say thing when you would cough and say that bad word. when you were talking, i thought about doing that but i thought it would be unprofessional >> you are right >> i thought about it. >> you just did it >> i thought about doing it but it shouldn't be something. >> you made your point effectively. >> same point. >> thank you eunice. >> meanwhile, we have some stocks to watch. wild week for retail shares of nordstroms rising. raised its earnings forecast for the full year. looking at that stock up close

to 8%. williams sonoma said sales fell dropping 2% versus the 1% expected earnings were in line with estimates. it is really a tail -- really an operations situation more than an economic or trend story we are watching shares of the gap. worse than analysts expected the company says it is committed to a plan to spin off old navy and continues to search for a new ceo. more on the wild week for retail coming up at the bottom of the hour we'll talk to the retail guru to try and make sense of all of this >> coming up, the video we can't stop watching.

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>> elon musk unveiling the new cyber truck. let's get to phil lebeau he has the specs of the new pick up >> good morning. some saying, look, there is a lot of potential but still a lot of questions about exactly how this vehicle would perform if you had a full payload or tow capacity i can't be the only person who saw it come on stage and say, wow, that is way outside the box. they are offering three versions the range depending on duel motor or trimotor ranges from 250 up to 500 miles fully charged. here is elon musk on what they were thinking when they designed

the truck. >> trucks have been the same for a very long time like 100 years we wanted to try something different. >> boy, did they they also tried a demonstration of the glass you saw the first time they through a weighted ball at the glass. watch what happens when they try to do it again he asked him should i try to do it again. he said sure, try it on the passenger vehicle. it broke both times. definitely a failure there in terms of how the vehicle would do if they build this and production is supposed to start by late 2021, starting at $39,900 for the base model and goes up to $59,000 for the tri motor version.

production expected to start in late 2021. i've heard everything from, this is a weird design. other analysts who are saying, you know what, it is a radical design we think it is going to resonate with buyers. that will be the hot debate. what do people think of the cyber truck. is it a niche vehicle or is it going to be a threat to the broader pickup truck industry, which some people do think it will be. i don't personally that's the debate today. >> phil, what qualifies as a truck? >> it is a flat bed there. there is a bed it opens up. it is a six-foot bed i want to say they have 3,500

pounds cubic feet. towing capacity is up to 3,500 it is an interesting looking truck. it does have a bed in the back it's unclear they built this little atv they road it up to the flat bed and said, look, you can charge this you cannot deny this is not a futuristic design that is going to get a lot of reaction >> you can't deny. >> i'm not going to say anything until sorkin says something. i'm afraid we'll agree >> if i wanted to be in a movie, i'd buy the truck. like a movie 100 years from now. it is like a halloween >> there is something you like

and then you realize you don't like it. i don't think you should strive to design the ugliest looking vehicle ever made. we've done it before >> would you encourage the sorkin family to get that or a minivan? >> if you told me you liked that, i was going to say you are in the market for a minivan. how can you possibly like that is. >> i'll tell you this. my kids like it. >> do you remember when people bought hummers so you could say, look at me, i'm driving a hummer that's the only reason people bought it. >> that's what it is >> phil, nobody thinks that is a neat looking thing i don't know what the hell it

is did they look surprised when the windows broke? >> i think so. elon looked at it and said, this isn't what we expected >> how many times is is ththat g to be shown today? >> that video is going to be shown a gazillion times. >> i think he's clever enough to not try it >> i thought you were saying -- >> i don't know if they tried it before >> joe, you can't see in the video. they dropped that weighted metal ball they dropped that from about 15, 20 feet down on a sheet of the window and it did no reaction at all. no crack, nothing. they said, see we'll give you another demonstration here

i don't think they expected that >> i don't know why they didn't try it let's try it in front of all these people with the cameras rolling? >> good question we weren't invited that's how he does it. they get a lot of viewers on the tesla website and then he goes off stage. remember whenford did their mach e not with tesla, it's a hollywood event. >> dan ives is here. what is your take on the truck >> in terms of the launch, i kind of view it as a disaster in

terms of other launch events because of the cracked glass in terms of the truck, it's the wow factor, the mad max, blade runner thing is it niche or mass market i think it is niche. to get north of 100 k units i think is tough i don't see it gaining ground against ford or gm >> the bigger question would be what happened in the third quarter. they did better than anticipated in earnings. >> they had the profitability. you've seen the stock react and rebound. can they continue with that profitability. right now, that will be difficult given demand in the u.s. right now, i think this is sort of the next one to two quarters

that will determine if this is $250 or $400 stock >> you are saying hold off and wait and see >> yes i think it is one where a lot of good news is baked in. street numbers continue to go above into 2020. when i look at overall demand and model y and some new products, they've done a phenomenal job in terms of the stock here, i continue to be more yellow light rather than green. >> what would change your mind you have to see demand continue to beat expectations a demand pick up in the u.s. if they could show sustained profitability, which we are spectacle of

>> is there anything that could happen that would make you go wow? >> you go okay, you've got 3 million pick ups in the u.s., if you could get significant share there. best case 100, 150 k >> you think it is niche >> i think it is blade runner and great to pull up to parties. outside of that, it will be hard to get mass. you look at that f-1501.1 million they are selling a year. >> is there a vacuum cleaner >> you can charge an atv in the back of that >> you could charge a dust buster >> that's a big thing for andrew >> the sorkin family just wants a charged dust buster inside the vehicle at all times

>> so easy to send the staff out when they finish one of the houses to do the car >> what staff? >> i don't know, the staff for the city house or the country house? are they different they must be >> we got to go. coming up when we return the investigation into a brazen crime. that's next. ♪

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>> welcome back. imagine loading up a cart of merchandize and just walking out of the store retail loss is at an all-time high home depots said shrinkage hurt its profits. looking into how they fight the jo ongoing problem in this investigation, grab and go >> you are watching brazen retail left. the suspects are so sure, some even get aggressive when stopped. this surveillance video shows. most likely, these people aren't shop lifters or stealing for their own use. it is a bigger problem known as

organized retail crime with organizers working together for profit it all starts with boosters. >> somebody who is basically a professional shop lifter doing it for profit. >> are they just guessing what items are in demand or do they know it from history >> there are many locations out there giving lists to the boosters >> if they are giving lists, they are part of the crime too one of those here is this pawnshop the manager charged with selling stolen profit. the next stop this raid. helping when law enforcement served a search warrant on this utah home. >> we can provide them the value of the merchandize >> the suspect allegedly sold

stolen power drills on facebook. he was arrested. seizing a pallet full of items in the home. they were brought to this warehouse. it may look like home depot but this is actually an evidence room inside over $1 million worth of stolen product seized from a raid of seven pawnshops. >> we'll see lowes and home depot's price $199 our price $79. how is it some of these second hand merchants are selling at less they found the answer in these sting operations >> what do you want to do? sell them? pawn them? >> this is undercover video selling items that seem stolen to pawnshops this makes it harder for

pawnshops to buy unopened product. >> since the new law, it is getting better but we've seen the shift to e commerce. >> the power tools here on sale on facebook. >> organized retail crime is growing and nearly $800,000 for every billion in sales home depot said its profit took a hit due to the higher loss of goods. >> we don't comment on our particular numbers, we are seeing shrinkage rates rise. >> scott is in charge of asset protection >> organize retail crime drives other crimes drugs, guns, human trafficking i think opioid and drug epidemic is driving it. we have been very good about not raising prices as a result

if it gets to a point that we cannot continue doing business, ultimately, we'll have to pass it along >> it is not just home depot lowes said yes, this issue has hurt its margins in the most recent quarter as well >> crazy to think it has picked up in the last three quarters. you think about opioid issue rising, are criminals just getting smarter. >> they are not going to tell us about all of them because they are trying to detour the theft there are areas of the country where the opioid issue is a bigger problem and you are also seeing the higher rates of these organized crimes >> and the poor person home depot has there checking my reet for my light bulbs if there is three or four people pushing a shopping cart, they

are not in position to karate chop to stop them. what is the poor person that works for home depot to stop them or pretending they are armed. >> sometimes not pretending. they have the videos there they are building these cases. employees are told not to interfere because they are afraid it could become a dangerous situation. for the most part, they are walking out and the employees have to let us do that >> when we were in that evidence

place, there was literally a compressor still screwed to the wood pallet it came in on. and as we head to break, a look at yesterday's s&p 500 winners and losers >> that was wonderful. >> i loved it. >> it was great. it wasn't bad. >> parts could have been better. >> i didn't really like it >> it was bad. it was awful tom steyer: wall street banks took advantage

of millions of americans during the recession. so, my wife kat and i took action. we started a non-profit community bank with a simple theory - give people a fair deal and real economic power. invest in the community, in businesses owned by women and people of color, in affordable housing. the difference between words and actions matters. that's a lesson politicians in washington could use right now. i'm tom steyer, and i approve this message.

>> good morning. welcome back to "squawk box. we've been watching equity futures. the dow futures indicated up by about 29 points. s&p up by about four and nasdaq up by about 21 china's loss in the trade war appears to be vietnam's gain u.s. imports jumped nearly 35% while imports from main land china fell by 13.4%. main categories are computers and other machinery. uber cofounder has now sold

close to $1.5 million of his stake. another share holder bought more shares on monday later, trump hearing from share holders on the issue of vaping regulation. u ay tuned yoare watching squawk on cnbc. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

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welcome back, ush cofounder has been on a major selling spree since uber's lockup expired selling nearly $1.5 billion of it and another share holder buying

more stock the stock below the ipo price. >> a little selling. little bit >> joining us, bradley tusk, a very early uber investor and craig is here, cofounder of the disruptor foundation he teaches a class at columbia business school on disruptive businesses >> they are not the same thing as all you have been very critical of derek management of this company. i think you were a fan of travis the question is, what do you want them to do now? a lot of investors want them to show profits they are not even interested in the growth story the pied piper story

this is the same for adam neumann, has the world changed what you are asking for is a little different than what the public investor is asking for. >> there are two competing trends on one hand, private valuations and public valuations are out of line you have venture funds that keep raising bigger and bigger funds. it is not supportable. on the other hand, from when travis left until today, uber's po worth half of what it was. >> is that a function of the person at the company or the fact that pricing is so miss priced three years ago part of the fact that if it is a company based on radical

innovation, they are not going to reward them with buying the shares you could blame some of this on valuation. >> they did it to lyft too it doesn't matter about the leader >> juneau, i just got my discontinuation notice >> they don't care about the leader anymore the numbers make no sense. you can believe this person will transform and the market does not believe he can >> what do you make of this? >> one is valuation. the other is going to be what is the business model that gets you to profitability i think particularly in the wework case, was this a real estate company or a technology company. the valuations are different as long as the dream is that it is the technology company, you'll get the technology

valuation. >> this has been some kind of massive miss alignment it is impossible to look at it any other way. let's put it out there the last time i got a price on the bonds, it was 71 you run that through, there is a pretty big disconnect. >> somebody said sto me, an activist should show up on the scene with uber. it is the only unicorn out there. i thought, what could an activist do? are they going to go in there and say run the business for cash in which case the stock goes lower or says no, no. we want you to grow like a weed and we don't care about profits. i'm not sure the stock would go up either. >> i don't know if you saw the bill ackman comments on wework

the real question is can softbank turn themselves into a version of an activist >> inside all of these companies. >> issue of governance and duel classes. the real window of last resort is softbank. >> are you selling your shares >> yes >> all of them >> much smaller numbers than travis but similar some believe -- uber is predicated right or wrong on being the amazon of transportation whether you are getting a burrito or a truck or a person from point a to point b, they will own every part of that if you don't see reason of doing it, there is no reason to own

the stock. the only way in this particular case is that they have to be able to be on the position again. that vision to get to that vision, you have to run losses in the short term for a long time i'm not sure this public market is ready to do that right now. >> it is hard to know that for sure when there is both really big losses and no vision >> most of the early investors in uber you are friends with -- >> they are out. >> they are out? i was thinking of lance armstrong the other day. so much of the value of his family at this point was wrapped up in uber back then, he was thinking uber was worth $120 billion i think a lot of viewers aren't that sympathetic >> i'm sure he's happy you are

sympathetic towards him. >> i may be the last one >> someone with unperson. >> your sense is that early investors. do you know of any early investors who are saying, it has dropped too much i'm giving them a year or two. >> early investors are in the black. i came in at level a it doesn't really matter most early investors, that's the point. has anybody emailed or called me and said, you are crazy? not a single person. >> we and masa, you have seen the reports about how masa may have to reduce the offer he's already made because the banks in japan which are going to loan

him money and saying we are not supposed to tell you what to use the money for but if you are using it for wework, we've got a problem here >> the question with wework is two things they have an a to b transition we'll call it the red ink. we'll call it the adam neumann pay out. i'll make a comparison travis makes perfect sense to me call it 80-90% rational, 10% shakespearean. when you get to wework, you might want to flip it around there is still enough time for softbank they are talking about renegotiating. >> you think it will happen? >> not the way it is right now >> i think lawsuits will happen. >> lawsuits will go on for 10

years. >> you can't make a deal and then turn around and say i'm not paying you >> there is a famous case of texaco and they had to file for money financially to impact the softbank empire. >> right. >> it's certainly enough to shake the confidence you know, at the end of the day, both stories of arrogance and hubris. >> bradley and craig, thank you guys. >> good to see you. coming up, we're going to talk about what's working in retail because there's a big split. you can see some of the divergent fortunes in this sector just this week. talk about some of the names worth considering for your portfolio with a well known guest on the show, dana kelce will be here next. don't forget to subscribe to our podcast. you'll get interviews, original content and behind the scenes access look for us on apple podcasts or

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been a wild week for retail earnings for that whole group separating winners from losers take a look at some of the big moves so far this year amazing really crazy. how is that possible there is -- actually -- >> 93 -- >> i see a little bit of a pattern there. joining us now on set, tulsa advisory group dana tulsie digital, target, walmart, these are old stories but they seem to be getting worse, don't they what would you do if you were in charge of a department store at a mall >> department stores are in a lot of trouble right now they have to figure out how to compete and frankly how to offer consumers things that they want to come in and buy i think one of the things with the department stores, how do you reduce the assortment

apparel, how do you increase the inflection and you're competing against what you saw before. walmart and target who value convenience are winning. they have a rough road ahead of them nordstrom numbers were a surprise last night. think about why. the different innovation techniques they have, whether it's locals, whether it's their loyalty program. it's not just apparel. we've got to move just beyond apparel. >> is it possible for a company like a mazy's or a nordstrom to rip off the band aid how many stores would they have to close >> when you think about it, nordstrom has 116 stores. >> they're pretty clean. >> that's not the problem with nordstrom. >> right >> is it an overall mall problem? >> it's the cost of doing business that's higher you have to recalibrate your margins. when you're doing free shipping in some instances, when you're doing a local program, when you're doing delivery, labor costs are involved and when labor costs are involved, we have to be able to get full

price all the time. >> the difference is, we've spoken with brian cornell earlier this week at target. he said he's actually able to bring those costs down when you convince people to pick things up at the store, when you use a secondary service like shippet, you kind of have to do the stores there, too. you need the store base but you have to figure out a smart online. >> exactly the combination. online pickup in store is your most profitable. you can get attachment sales as a result of that when customers shop multiple channels they typically buy two to three times more than the single channel how do you make the store exciting how do you basically capture the customer on their phone to get to bring them into the store that's the conundrum that they're all running into differentiated merchandise, exclusive offerings. you're having really targeted emails going out to people texting them at the same time. what is all this about it's a service offering at the same time. target and walmart, the ability on price and the ability on

value and convenience in order to be able to offer that macy's is figuring it out. i think they're still figuring it out >> do you think they will succe succeed? >> i think it's going to be a tough deal they're still figuring out expense structure. >> would you buy macy's or nordstrom? >> nordstrom has a greater value on the top line. >> the off pricers are winning i like the tjxs of the world i like brands. brands are winning when you see what a bf corp is doing, nike. i think luxury lvmh, tiffany, that's going to happen. >> dana, nice to see you. >> you, too. when we come back, check out the futures. dow up by 40 points. we're going to talk strategy and later, a vaping summit at the white house after the administration backed off its potential regulation is it now back in play we'll be right back.

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latest creation. this is not your grandpa's pickup details straight ahead as the second hour of "squawk box" begins right now. good morning welcome to squawk books right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen this morning we are having fun. that's the good news. >> better news, it's friday morning. >> 2 1/2 hours before the market opens and we are in the green. dow looks like it would open up about 48 points higher nasdaq opening 27 points higher and the s&p 500 up about 6 points. here's what's making headlines at this hour let me re-emphasize this, on a friday morning, it's almost the weekend, the hong kong mask ban

is going to be remaining in place for the next seven days. there are local elections in hong kong this weekend and the recent protests are expected to continue. tesla ceo elon musk unveiling the new all electric pickup truck last night. the price tag starts at about $40,000. the unveil didn't come without some issues though that was supposed to be unbreakable bullet proof class that's what elon was promising but the tesla chief designer threw a metal ball and then the glass shattered. we're going to have more from phil lebeau. he'll try a second time. if i talk for long enough, you'll see this. failure second time, too >> well, maybe that was a little too hard >> i don't know. okay stocks -- we're going to watch that a lot stocks are coming under pressure dom chu joins us with a look at the biggest movers dom, things happening between

china and the united states today. i don't know if you noticed. >> i did they've been happening i think for quite some time now so i'm trying not to get worked up about it i will not, andrew, joe, becky, be throwing any metal balls at the touchscreen. this costs way more than anything i make. got the fancy logo >> let's take a look at this week as it plays out the dow is on pace to snap a three-day winning streak it would be the longest losing streak -- rather, three day losing streak. the longest losing streak we've had in the dow it would also snap if these gains stay where they are. it would snap a four-week winning streak for the dow let's take a look overall. that picture 1% away from record highs. we're not that far away. however, if you take a look at the internals and the stocks within the dow, there are big winners and losers among the names dragging the dow to the far side, you have home depot on the heels of earnings,

3m industrial china home depot, 3m united health, the biggest laggard. that's driving the dow action so far. with the s&p 500 we could be on pace for the longest losing streak we've seen since september for the s&p 500. again, just about 1% away from record highs just to put it in a little bit more context and as for the stocks that have been really in focus for the s&p 500 so far, it has been those retail stocks, right there have been clear-cut winners and losers this week on the heels of earnings. kohl's and macy's, the big decliners. macy's down 13%, kohl's down 9%. ecommerce sales down big divergence leaders and laggards, i'll send things back to you. >> dom, thank you for that. investors watching the latest manufacturing numbers this morning meantime, yesterday's session 8 of the 11 s&p sectors were in the red. real estate led the way to the

down side sliding 1.39%. energy, one of the worst performing sectors was up 1.63% but remains in correction territory. let's talk about all of this bob dahl is here doug ramsey, chief investment investor at leuthold you're sitting to my right so i'll go straight to you. where are we what do we make of all of this craziness? it feels like you hear one good story on one side, the other story is terrible. that's been the whole week. >> that's exactly where we are we have some good news and not good news. chopped beyond frustrating is the outcome on the market. the path of least resistance fear of missing out. there is no alternative. >> that's terrible fear of missing out is the whole -- >> but that's weak buyers, no question about it. but underneath the surface go back a couple of months, everybody is worried about a recession. we've gotten enough numbers now to say it may not be strong, but we're not going to get a

recession. that's enabled the market. >> right >> the problem is earnings growth is earnings jumped 1% it's a very stock specific you look at the earnings reports, especially retail and it's no longer let's tell us -- there's an overall story about the consumer or about the larger economy. it's now very specific >> agreed, meaning we've moved from the beta to the alpha market >> yes >> and the alpha market is harder but it's more interesting. look what happened right after labor day when you've got that crash in momentum, rise in value, increase in cyclic calls, decline in defensive stocks. that's what's going on that's the more interesting part of the market inside. >> except for the fact that most investors are buying indexes and funds in which case they're getting mixed up in all of it. >> correct i think investors would say i have to play this game.

>> back to the active game >> back to the active game hopefully. we have to get it right. >> the s&p 500 is only 3% compound higher than it was in january of 2018. we have the big down at the end of last year, the big up at the beginning of this year, but we're not making a lot of progress. >> that goes to the larger point, joe, nothing is happening. >> we're up consolidated huge gains from 2016. in fact, huge. 60%. >> agreed. huge, huge gain. >> doug, last time you were on, i just remembered this, i was kidding you about paulsen. you and jim paulsen are at the same firm and one of you is going to owe the other one dinner and i'm afraid you owe him like a week's worth of dinners. you could not have been more wrong the last time you were on. you're saying the same stuff now. you're still totally baerisearih are you going to stick with that now? >> so glad i came on

>> well, i'm just trying to figure out your thinking paulsen ended up -- did you tell him, geez, jim, you were right here's what i missed >> well, i mean, yes, i have i mean, quite frankly, i mean, what we've owned we've been allocated pretty well. i mean, we didn't get cautious in terms of what we owned. pro cyclical, very heavy in technology our big winner this year has been semicapital equipment so the group work that we do is sort of divorced from the macro view, which in this case has been good. i mean, we're not -- i'm not overtly bearish here in the short term i mean, i'd call our positioning low neutral. it's interesting, you know, you talked about the stock specific nature of this market. we see that situation technically. we have a situation where a lot of stocks are making new highs

and a lot are making new lows simultaneously that's strange given aulie quit at this we have. supposedly this was going to be a big, broad upswing we had in the quant quake. it's interesting we are back to the high market which typically is not a good sign for the next 6 to 12 months' outlook but right now we're going to finesse it we're not as low in equity exposure as we had been at points earlier in the year. >> and to back that up, the average stock did make its high in january of 2018 the cap stock averages are down, most international averages are down it's the cap weighted s&p 500 that's looking great >> what would you buy right now? >> i've got a list of six names. >> i know you do >> in managed care i want to own humana pick a different one if you want >> in this day in age you think you pick any one >> united health care is still

good joe has a love affair with that. biotech abvi got to own a bank. bank of america, citi. take your pick card company, capital one financial. target, go long target, short macy's cummings in industrials. i want to have some cyclicals as the pmis and the isms get less bad. >> do you want to agree or disagree with any of those picks? >> well, it's interesting. i think the pmis are huge here we've had all of this stimulus that's been injected over the last, you know, 9 to 12 months and it is not doing anything yet for the manufacturing sector >> i think -- sorry to interrupt. but my view is the tightening last year caused the economic weakness this year the easing of scentral banks ths year will be better next year. >> well, bob, i can see -- it's still on the come though >> without question.

>> industrial commodity praises are back near their lows for the year, which tells me we're probably not going to get great pmi numbers for the month of november and, you know, at some point, you know, low rates for ten years, i just think the impact ultimately, i'm not sure it's totally worn off, but certainly the beta -- i mean, the impact on businesses after this free money's been available for so long i don't think is going to be quite what it was back when you were at 9 or 10% unemployment and attitudes just couldn't have been darker. >> i'll leave the conversation there. appreciate it. >> addios. >> thank you guys very much. still to come this morning, president trump set to meet with representatives from the vaping industry later this morning as he weighs a federal ban on flavored ecigarettes dr. scott gottleib will join us right after the break to talk about options and what may happen. and later tesla unveiling the cyber truck last night, but

not everything went as planned we'll show you theid a veond talk about tesla's latest model. "squawk box" will be right back.

president trump's going to hold a meeting at the white

house. eamon javers has the information. >> reporter: they're calling this a listening session 1:45 p.m. eastern time a lot of the top stakeholders in the vaping debate will be meeting with the press to discuss what to do about vaping, particularly teenage and youth vaping the white house, you remember, proposed a ban on flavored ecigarettes back in september. nothing has happened really since then in terms of the absolute finalization on any plans. they insist that everything is still going forward. here's the statement that the white house gave us on today's meeting. they say there's a serious problem among our youth and their growing addiction to ecigarettes. the policy making process is not stalled. it continues to move forward this meeting will allow the president and other administration officials an opportunity to hear from a large group representing all sides as we continue to develop responsible guidelines that protect public health and the american people. take a look at some of the attendees we expect to be at the

event today. representatives of some of the big tobacco companies. altria, reynolds, the american vaping association, the american lung association and the american cancer society, cancer action network all expected to be at this meeting today, so a wide range of voices speaking to the president. you remember, joe, back in september the president talked about melania trump's interest in this issue because of their son baron. the president said that melania was particularly focused on this issue because of the rise of teen vaping. but the politics of this are really unsettled vaping is so new it's not like tobacco or other things where we know exactly where the politics shake out. there could be some political damage for the president because vaping may be popular among his base so there might be some people in and around the white house who are watching the political ramifications of this as well as the public health ramifications. guys, back to you. >> that was the narrative when

the backtracking started, that in certain -- in trump country there's a lot of vapors, i guess. >> yeah. >> smokers, vapors. >> yeah. that's the question. we don't really know how this shakes out politically, but that could be right the president could be facing a bunch of angry single issue voters if they're vapors and that's important to them there's the argument that the industry makes and others make that vaping is important to get cigarette smokers off because you have transition. >> transition. you have the normal libertarian type, antigovernment types that just don't want nanny state -- >> grover nordqvist is going to be sending someone to this >> don't tell me what to do. so what if it's bad, that's my business. don't tell this new entrant to the race. i had a 17 ounce sugary drink the other day, not in new york >> outside city limits

>> outside of city limits. >> if you have a good contact, they can smuggle it in >> can't wait to have the whole country -- >> oh, stop it. >> i can't even believe it >> you bet. >> the most -- >> everybody getting stopped and frisked. >> the most accomplished competent person -- >> giuliani? >> that -- >> come on, let's go. >> let me get to scott hold this for a moment in a recent op ed former fda commissioner scott gottleib detailed what the administration should be doing about vaping dr. gottleib joins us now. we should point out he's a cnbc contributor and a member of the foo pfizer board you would like to see strict regulations coming down on this. what do you think will be happening at the white house what's happening behind the scenes you know a lot of the players. >> this is a legitimate process. they're trying to back into a policy process this is a legitimate meeting to gather stakeholder input and

have the president hear from different voices if the concern is the vape shops, which is where i think the concern is resting right now and the idea that if you put in a universal flavor ban you'll shut down the adult only vape shops, i think there's a way to cavre around the vape shops. you can make a public health argument why you might exempt the vape shops for the time being. if a vape shop is adult only, if it age restricts to allow people into the store, you couldn't allow that store to continue to sell flavored products on a direct relationship to a customer what you need to go after are the mass produced products that are cheap, disposable, very sleek and attractive that kids are buying in gas stations and convenience stores because that's what the kids are abusing. it's typically not the open tank big contraption sold to me vape shops because they're hard to conceal. they consume large plumes of vapor and the kids don't like them. >> that is the push back grover norquist and libertarians

might come up as eamon mentioned, stay out of my business this is my decision to make. your concern has been the huge epidemic that's been taking place among children >> right. >> how about that? it's gotten worse, not better. >> no, it's gotten worse juul upped their marketing it's quite extraordinary i think there's a way to target the portion of the market of the products that the kids are using. you can consider taking the cartridge based products, disposable products off of the market pending successful applications with the fda where they need to prove they provide a net public health benefit. you can argue, they don't have enough redeeming public health value given all the youth use on the market and carve out the stuff adults use you have to make sure the adult shops age restrict remember, the united kingdom doesn't have the youth problem we have. they have a large population of

smokers transitioning to vaping but the difference is that most of the products sold in the u.k. are the open tank vaping systems, these large kwer cr contraptions you don't have the 5% nicotine because it gives you a quicker buzz. >> you know the president. it's political he was clearly ready to go on this until he wasn't. >> look, i think the reporting's been accurate. they're concerned about shutting down the small mom and pop shops. from a public health standpoint i can make -- >> hold on, scott. you're talking about in a very practical way. this is not a philosophical conversation. >> i think they can carve around the vape shops i outlined it in the washington post if an adult vape shop age restricts and is selling to adults, you can allow them to continue selling the flavored products

we're going after the mass produced flavors the problem with taking the flavors off the market and those products, i think the kids are going to start using the tobacco flavor. >> who is going to come -- i want to know -- this is the thing i don't understand politically. if the president really is against vaping, which i think he is, across the board by the way, across the board. >> i agree with that. >> the idea that he's going to somehow lose his base because he's going to go after something which would benefit the public and the public health and he's going to lose his base to who? the base is going to transfer itself to elizabeth warren or to joe biden because they like him better i don't understand this. the whole thing is so cockamamy to me that i don't get it. >> i don't know that they necessarily look at the polling reports. they're worried about the political implications there is a legitimate argument to be made that there are adults using these to transition off of combustible cigarettes to vaping

products you don't want to sweep the market of everything you want to leave something for the adults leave the open tank systems sold in stores that age restrict. you have to be over 18 to get in the store. then you take everything else off the market so you preserve some portion of the market for adults who are legitimately using these to quit smoking. you know i'm not a big proponent of this altogether, but i think there's a way to carve around what the adults are using responsibly and what the kids are abusing. if we look at what's been happening, what's been overshadowed by the ecigarettes epidemic, smoking rates have plummeted. you have to acknowledge that some of that at least is a result of the vaping some adults are using these products to transition off of cigarettes on to these vaping products so you don't want to disadvantage them entirely i think there's a way to carve around this. it helps them go around shutting down the small shops. >> it sounds practical, common

sense, a plan that could get done but will it >> i think it will i think that something is going to get done here they seem very committed they wouldn't be putting out these statements doubling down on the fact that they're going to do something if they didn't intend to do something i think they were spooked by the politics of this and the push back, it's another backing into a policy process and an open process, taking dialogue they'll come out with something that probably cavrves around the vape stores. you can get them off the market or restrict the kids' access. >> scott, great to see you thank you. >> all right if i get an apology for the big gulp like with the stop and thrifts, i'll start thinking about it if it puts out an apology -- >> i don't understand. business -- successful business people who are good business people and not only was mayor bloomberg a good business

person, he's created more value than you can possibly imagine -- >> i just was talking about libertarian big gulp. >> i understand, but -- and then he managed the city for 12 years remarkably successfully. so i don't really understand -- >> i'm impressed with him. >> i could find two or three things i don't like and you could point them out but at the expense of -- >> you know how i feel about other things if he's focusing on those other issues that i think are less -- his entire post mayoral -- >> if you care about the global economy -- >> i care about big gulps. i care about sugary drink, to be able to buy one here and not retrofit all the factories we'll be right back. how much does political bias play into the market call. we'll discuss that. time now for today's aflac trivia question. on this day in 1900, where did the first mercedes take its inaugural test drive x"onnusqwk when cnbc's "ua bo cties

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investor don rogers joined "squawk box" earlier this week and raised some eyebrows with his comments on impeachment. >> we need to be thinking what does it mean when we have a president pence and how will he handle that? we've been doing a lot of research we think over the next six months we could have that kind of leader. >> and a lot of people after the most recent election were not very bullish on the markets. for example, john rogers had the s&p by 800 basis points. part of that might be because of the occupant in the white house. joining us to talk about how politics can affect market calls, elizabeth kemp, assistant professor of finance at the booth school of business she co-authored the study partisan professionals this is from credit rating

analysts the study and you did an actual study where you tried to factor out other variables and it's found that these professionals can make it harder to make money if the current occupant of the white house is a different party from what they are personally. it puts them in a bad mood or something. it doesn't -- it actually skews their ratings lower. is that basically what the abstract that i read summarized? >> yes the study which is done with my co-author from cornell, we show that political views of analysts affect credit ratings, specifically alignment with the president seems to be important. so when they are supporting the president's party they tend to be more optimistic they are more likely to upgrade and less likely to downgrade firms. >> here's what i'll tell you

the year that you use was 2016 i think for the lion's share of this you point out it's a more divisive time. did you do it in 2008? this is historically like nothing anybody's ever seen. are you sure that isn't an outlier? because you saw the forecast for what the stock market and the economy and the bond market, you saw a lot of the forecasts from mainstream financial analysts when trump was elected and kind of the opposite happened. >> yeah. so our study was much broader in the sense that we studied data over 18 years. we looked at more than 500 analysts we did not just study the trump election, but we did find that the disagreement between democratic and republican analysts was particularly pronounced during that period.

and we also find that it tends to be particularly high when the environment is very politically polarized. >> i'm looking at it there i'm trying to figure out the bush 1 and bush 2. bush 2 republican analysts were more positive? >> were more positive. >> they were more positive during w's term than the democrat analysts, but -- >> that's right. >> that's just a measure right there on the right what is that blue democratic analysts during trump, that's a measure of trump derangement syndrome moody's analytics had a report on what was going to happen to the bond market. i mean, i have never seen a more dire forecast for what was supposed to happen that they came out with. it obviously did -- none of it came to pass couldn't have been more wrong probably did you look at that one

>> not that one in -- specifically, but certainly the data that we've been looking at tells us there is something special around the trump election because there was -- that was the time where our disagreement, we saw a large spike just looking month-by-month around the election but, you know, it was not the only time where people disagreed. so it's, you know, particularly pronounced now, but the problem was also there before. >> you did it with -- so this is upgrades, downgrades for basically corporate debt >> yeah. >> by the ratings agency >> yes. >> can you extend this to equity commentary from the major firms in terms of the stock market or do you think that -- have you thought about doing that study is it possible could you do a controlled experiment there >> we would -- we would love to, actually, and i think it's definitely on our research

agenda to try to understand how broad is this phenomenon and whether other groups of professionals and finance are also affected by their political views. we thought that credit rating analysts are actually very useful starting point because, you know, they're very geographically concentrated and so that made it easy to match it to party affiliation information but also i think because we know from prior literature that ratings are important determinant of firms' cost of debt, that suggests that, you know, if we do find evidence of partisan bias there, it actually has consequences for the rating firms. >> do you see austin goolsbey walking around do you know him at the booth school of business is he one of your colleagues >> yes, i do see him regularly, yes. >> did he try to stop you from disseminating this information in the interest of disclosure? did he say, you've got a

breakfast to attend? did he say, here's where the studio is and give you the wrong address? did he try to stop this from getting out or no, elizabeth >> no. no my colleagues -- >> he may not have known about it. >> they've been very supportive. >> i can't believe he'd let this getting out. we love him. i'm kidding. i did this because i noel' watch the video and he still wants to have lunch but never really tells me when he's coming here thank you, elizabeth appreciate what you've done. interesting study. >> thank you very much for having me. >> i think i should check journalists out. >> shocking he's giving you the brushoff i'd love to have you -- >> i owe him lunch >> i'll get back to you on dates that work. >> he does economist math on things we bet on. when we come back, some stocks to watch and then tesla claimed its cyber truck was bullet proof and then it smashed its window with a metal ball

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welcome back to "squawk box. futures in the green solidly 53, 54 points on the dow the s&p indicated up 6 nasdaq up 24 basically getting back some of the -- what we lost yesterday. let's take a -- oh, this is you, andrew. >> thank you, sir. let's take a look at some stocks to watch this morning. earnings from gap beating by 2 cents. same store sales falling by 4% that was worst than analysts had expected it's committed to spin off old navy and continues its search for a new ceo. take a look at xerox giving hp an ultimatum right now. in its effort to go hostile in the bid unless the company agrees to pursue a friendly combination. they turned down the 22 a share offer saying it's significantly under valuing the company. still to come this morning,

elon musk unveiling his company's latest skreeation at an event last night in california this isn't your grandfather's pickup truck not your dad's pickup truck 'rgog tk wee intoalabout that after the break. (people talking) for every dollar you spend at a small business, an average of 67 cents stays local. shop small and watch it add up. small business saturday by american express is november 30th. when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.

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tesla unveiling its highly anticipated cyber truck last night in los angeles, but debut

didn't go according to ceo elon musk's plan. an on stage demo that was supposed to show a break proof glass went wrong phil lebeau joins us one of my viewers, i have to give it attribution. a love child between the pontiac aztec and the deloreon. >> was that a joke on all of us, do you think >> no, that wasn't a joke. that was just a bad, bad, bad design choice by general motors. they were in a bad period when they made the aztec. >> that's not even the ugliest. >> then they had a baby and -- >> now, listen, in elon musk's defense there is an axiom in the auto business that you want people to have a visceral reaction to a new model. that's the only way to know

whether or not it's going to succeed. if you build something like everybody else has out on the market, it's just going to be just another model they clearly made sure this is not viewed as just another model when they unveiled the cyber truck last night by the way, there are three versions of the cyber truck depending on the size of the motors, the number of motors, the battery pack that determines the range which is going to be between 250 and 500 miles when fully charged although it's unclear what that range would be when they're hauling a pay load of let's say 8,000 pounds or 10,000 pounds. they didn't give the statistics last night the reaction from analysts, two camps, bernstein think it will be a niche model tesla's cyber truck looks weird, like really weird. then there are the analysts that say, look, this is a radical design but it will resonate. jed dorsime said we believe this

will resonate with consumers leading to solid demand. then of course there is the demonstration of the windows that you guys were showing earli earlier. look, this was bad it might be years from now that was a really stupid idea to test the strength of the windows live on a stream here that clearly did not work the first time and then they said, well, let's go try it for the passenger window in the back. it shattered just like the first one. take a look at shares of tesla, the price on the cyber truck when they start selling it, which is expected to be late '21, early '22 is going to be $39,900. goes up to $59,900 if you are looking at the trimotor. >> it's like the foldable phone. hey, we have a phone that's foldable you try it and it breaks >> breaks. >> they should have tested that,

right? >> there's a cynical view that they knew. >> i don't buy that. >> you don't listen to anything i say. >> i don't buy that. look at elon musk's reaction >> we'll play the video 100 times. >> you didn't hear me go off on that >> no, i did you said it this way you moved yourhand and when yo say it it actually becomes relevant right? >> depends who's listening. >> phil, thank you for that report >> ears are micro targeted so are mine. like 100 people. >> phil, stick around. want you to be part of this as well joining us right now is alex kanterwicz, the senior technology writer from buzz feed and a writer from "the new yorker." author of "habit." are you going to buy this truck? >> no. >> you need a leather jacket if you have the truck by the way. >> and you need chance and

hoops. >> i would buy it. >> if i could buy it, i would park it. >> would you buy a hummer. >> did you have a visceral reaction -- >> i liked it. it was beautiful. >> let me ask you, do you own a truck? have you ever owned a truck? >> i don't own a truck >> i grew up in new mexico i have never heard a truck owner say, you know, i just love cyber punc and what i'd love to buy is my next truck to be from blade runner. >> it's a utility truck. it won't cut into the market. >> that's exactly right. i would love a truck that costs $10,000 more than a ford f-150 and at 4 in the morning when i'm driving it out to the field if it dies and someone comes by with a gas can i'll say, no, no, i need a generator can you get the generator. >> i disagree with you the people who have pickup trucks today, they have brand loyalty. they'll keep buying them this is for the next generation

of buyers, the group of people who grew up buying video games. >> you're saying the same thing. >> yeah, i don't think -- >> maybe you're right. maybe in 15 years the video game buyer when they graduate from high school, go to college -- >> then like me needs to get a mini van that's one of the problems then there's kids to put in the back seat. right? that's the conundrum. >> a truck is a utility vehicle. you use it for something that being said, is this necessarily a failure? we're talking about tesla. we're not talking about the fact that none of their numbers make any sense. they had to dip into set aside to post numbers so perhaps for tesla this is a big win. >> we are going to switch gears. see the pun segue. switch gears >> that's one of yours. >> we're going to talk about

executives at softbank looking to reducethe size of wework soft stock adam neumann being a beneficiary. talks are focusing on shrinking the $3 billion tender offer to limit the payout for adam neumann. it would come after they announced layoffs of 2400. it comes because many of the sn japanese banks who have lent softbank money are saying they won't give them the money if the money is going to wework. >> if you are sitting here a hipster neighborhood, and you hear a whooshing sound, that's the death spiral. >> go to zero? >> i don't know. softbank can make decisions to keep it away from zero is there a lot of enterprise

value there? if you come and you pay more for your office we'll have a bunch of employees who will change the beer tap, teach yoga, show up at your parties by the way, we just laid them all off yesterday. what do they sell you for that premium you're paying for the office rental except for some ironic wallpaper i'm not sure how they make an affirmative statement to say, we're cutting staff to make our business succeed. >> have you ever been in wework? >> i have. people are going to be doing gig work and out there freelancing and need a place to work they went way over their skis on this one if you ask me, there's -- >> you're alex >> that's right. >> you're the buzz feed dude.

>> that's right. >> you're "the new yorker" guys? >> charles >> there's people that i sometimes agree with you're the new age buzz feed dude that disagrees with him you are at "the new yorker." >> i think alex is exactly right. >> now you're agreeing. >> it's a new world. >> it's a business model. >> the model is real gig economy. >> but the truck is ugly. >> truck is cool >> i totally agree with him too. i think the difference is is wework the company that's going to be able to execute on this opportunity? >> right. >> or are they so crazeily so over cap toollized -- >> exactly. >> i want to switch gears to one final topic which is political ads on facebook, on google obviously google switched their policy yesterday my question is will it force facebook to change their policy?

>> yes. >> you think facebook will change their policy. mr. zuckerberg you think is going to have to change what they're doing? >> they're changing. they still aren't going to fact check ads, that's not changing what they will change, they'll make a change on targeting we already know in 2020 they're going to limit the amount of placements advertisers will be able to do so a politician running 2 million ads, that's going away i think they'll continue to ramp down this to this segment and this to another. >> zuckerberg left the door open for making changes on the conference call twitter announced it we're still thinking about it. i could change my mind. >> a facebook spokesperson told me everything is on the table. i think we're going to see changes. stay tuned for what's going to come. >> final words >> i think the other question and the bigger question is it smart what google is doing and what facebook would be doing look, if you're changing rules about how elections are held and

you're doing it in a way that the people in the left and right don't like, both the left and right hate what they announced, they'll hate it if facebook does it, i think you're going to pick a fight that you'll lose the regulators will step in. it's a question of whether they do something or do something that looks like a band aid. >> thanks, guys. >> thank you >> fun conversation. >> iacocca was testing the dashboard of the mustang years ago and it was supposed to be padded in case you were in an accident and he did it with eggs and they all broke he missed a couple times and hit the assistant in the shoulder. he did 11 eggs and most busted. >> but did he do it on a stage in front -- >> i think he did it in front of people. >> tried that before >> hard boil the eggs, right

>> did you own -- you liked the pontiac aztec. >> i didn't own it you want to have some eye catching. >> we understand the taste issue. >> do you own a car? >> i got rid of my 1991 mazda proto zay and now take scooters. >> you are buzz feed >> i'm here for ya. >> can you stay. i want to talk just about everything. >> when we come back. >> i don't understand a lot. you have a pulitzer. war on the battle of political ads on social media. the futureha bs veeen indicated higher dow up 56 points we'll be right back. ep one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.

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toyota let's go places. can markets keep the streak alive? major averages tracking their first down week in at least a month. the nasdaq in almost two months. tesla's truck play is it shrewd or just a stunt the electric car maker rolling out its first pickup it looks like the love child of the pontiac aztec and the delorean. and the confusion over online political ads deepens there's a new report that facebook is reconsidering its own policies facebook's former chief security officer will join us live.

the final hour of "squawk box" continues right now. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq mark site in time square, i'm joe kernen along with becky quick and andrew ross sorkin dow up at 55 points. we'll see if that holds. the nasdaq indicated up 25 and change s&p indicated up 6 treasury yields now down in the low mid 1.70s. 1.755. we are watching three big stories at this hour the markets as joe mentioned, futures are pointing to a positive open this morning

the dow's been up for four straight weeks at this point the s&p has been higher for six weeks. the nasdaq hasn't had a down week in seven. number two, china's leader speaking out about trade overnight. president xi saying china wants to work out a trade pack with the united states and has been trying to avoid a trade war but he also warns that china is not afraid to retaliate when necessary. third, tesla's truck play. the electric car maker rolling out the ev pickup. it's called the cyber truck. the price tag starts at $40,000. the unveil did catch some attention. didn't go off without issues musk had promised the truck was bullet proof, the windows. the tesla chief designer threw a metal ball as part of a demonstration to prove that and the glass appeared to shatter. >> let's get over to nbc's phil neely. joining us live from the asian hub this morning

good morning >> reporter: yeah, good morning. the focus of the protests in the last week has been the university, the scene of quite extraordinary clashes between protestors and police. it is quiet today and it's been quiet for the last two days. it is still completely surrounded there are still several dozen protesters inside that university riot police inside but they are waiting it out one by one those protesters are giving themselves up it's thought that there are perhaps several dozen hard core protestors still inside. as they come out if they're over 18 they are arrested by police if they are under 18 they are allowed to go home so that festers on on sunday we have elections here so one week after those protests began, we have important elections here remember, hong kongers only get

one chance, and this is it, to directly elect any level of government on sunday 4 million people will go out to polling stations that will be guarded by riot police and it's thought that the government here will get an absolute drubing in those elections because they are a referendum on the five months. on a poll conducted, 83% of people of hong kong said they blame the government and the police for what's happening here not the protestors so it was thought on sunday that the pro democracy candidates will do far, far better than the pro government candidates. as you said just before introducing me, behind all of this are the u.s.-china trade talks and don't think that hong kong and what's happening here isn't part of that it is, andrew. >> all right thank you, bill. let's get to the markets with all of the major averages

tracking towards their first negative week in a month this morning's wall street journal reports that ray dalio's hedge fund bridgewater is betting $1 billion that the markets will fall. it's currently one of the largest against the markets and that it will pay off if the s&p 500, the euro stoxx 50 or both see a decline. joining us to talk more about the markets, sarat sethi, a cnbc contributor and mike santoli i was reminded of a couple of things, mike, and that was sorro sorrows's bearish bets never worked out and another guy that loved dealing in puts named buffet he sold billions of dollars and made -- added so much to his

when you sell puts you're just betting that the market is going to continue to rise. >> sure. >> so we seem to say how high every time dalio makes a move. >> i mean, the first thing to say is that the report kind of lacks context. you don't know where this fits within the constellation of all of the things the firm is doing. it's not a bet the firm trade on the market going down right away i think you have to point that out. i think it reflects some sort of general activity among big institutions saying puts are cheap. you might as well lock some in if you can look at sort of the slope of hedging activity going out several months, there is this welling up of concern that's concentrated around early march, which is super tuesday, which is when somehow people think that's when election outcomes are going to be relevant for the market.

so it reflects that activity it doesn't mean the market is going to tell you it's going down. >> when puts get really cheap there's a reason sentiment wise and sentiment dictates a lot. >> expect calm market, we're at new highs. puts probably should be cheap. >> he's playing the odds every 18 months you get a 10% correction on average. >> on average. >> sometimes it happens. for all of those who have missed this 20% plus rally, especially the hedge funds, we've missed most of this, how do we say we're charging you 2%. there's something we have to do. i don't know when he's going to be right he'll be right at some point. >> you follow bridgewater. >> yeah. >> he has more -- his hands are directly involved with some funds more than others, right? some did well and some did just miserable, right >> there's the classic bond

fund. >> the all weather. >> the all weather -- >> the all weather is the man mouth sized fund. >> which over 20 years has a great record. >> a couple of them he was more involved with. >> it's not that he's more involved with them or less involved, it's -- >> you can find some poor performers. >> very moodle driven. it's not like the cowboys -- this is not that ray dalio wakes up and says, i want to buy apple. that's never happening that's not part of the -- >> then he doesn't act on his recession calls that we hype whenever he makes them in the last few years we've hyped a lot of different calls none of which -- >> i don't think that those calls per se -- first of all, i think a that we, i put it more on us than i do him. >> i would too. >> in hyping >> yes >> no, that's what happens >> we're doing it again today. >> mike's explanation is perfect. >> have you gotten hurt by saying yields are going to stay

low around the world and there's a lot of macro -- >> very few of the big bond guys stayed long. >> mike's explanation is perfect with the nuance that puts are cheap. this isn't a bet the firm and you don't know what else the firm is doing and balance the risk on the other side. >> by the way, you want that you almost want people thinking just around the corner there's something you have to worry about. >> that's not new thinking over the last year. >> it's finance 101. if we didn't have it, you'd be off to the races and worried about sentiment. >> right >> as we've gone to new levels on the s&p have you decided to raise cash >> i raise cash on specific companies that are over valued i'm still bullish, invested fully. i think the parts of the market that are still cheap, trading local value or book value, i think some of the techs are extended i think oil's getting very cheap here so there's opportunity here

within the market but if you're fully invested i think you stay to your objectives you don't have to be at the higher end. >> when you say fully invested that means everything you sell you file it back into something else or always a certain amount of cash? >> no, i'm mid range if somebody's objective is 60 to 75, i'm at 65. i'm not at the higher end. the market has given us that higher end but if i have cash, i will deploy it i won't sit on the side completely. >> do you think the market, either one of you, is getting desensitized i'm looking for the next thing -- >> i'm surprised the futures are higher after what president xi said yesterday. >> but at some point in time, is the election the next big -- >> even within china i think the market needs something decisive one way or the other before it reacts to it because the premise right now is we've kind of de-escalated to a certain degree we haven't foreclosed on the possibility of, you know, pushing off the tariffs in

december so until we get out of that band of probabilities -- >> what are we talking about after the first of the year? the recession, we stopped talking about that. >> the recession i think elections are going to be front and center. >> you do? the national elections are everything. >> well, i think who's going to be on the democratic side. that's probably why you're seeing all of this stuff as you mentioned. it's always a question of what we don't know that causes the markets to go up and down. today's data on what we have, you have a pretty good market of 1.5 to 2%, but it's always that uncertainty that's the premium bonds at 1.7 not a lot of value. >> we have to test this premise that the markets are based on right now, which is that we are going to get a reacceleration. in the next few months you have to see the data come around to the market's view and we're off

to better numbers next year. >> i think after the first of the year we've refocused, too, don't we >> i think earnings have to go up next year if they don't go up, you're going to get a market with a multiple compression coming back down. >> when will we know if they're going back up? >> i think this tariff is huge with a lot of companies with cap ex, at least when we talk to companies. great balance sheet. that's providing some bottom to the market you're getting dividends above the -- your ten year so that's providing some support to the market >> so when we're showing dahlia's new market wave, that's a billion dollar stock it's possible they have been married but to a long position, too. what's the long position what's the long position 80 billion >> how much altogether >> 150 how much in equities >> that's like 30 to $50 billion

position >> i don't know. that's a married put >> one thing it's signaling. we don't know what he's trying to do. he's not trying to beat the market the whole objective, the clients are going to lose the money. >> as of 2018, i don't know if this is right, $125 billion. no, i'm sorry, they're saying about $160 billion in total. >> all right i figured you'd be -- when we asked you to come on we were going to say, i'll do a phoner, but that's it? >> i managed to get him. >> you're available for a phoner just about any time? >> the relevant people here have my number. >> that's not you. >> he said that looking at me that's why i knew exactly what you were saying, mike. sar saras. >> any time. >> they're staying here. in fact, when we come back -- >> it's a phoner you're going to leave and come

back. >> with charles schwab negotiating to buy t.d. ameritrade, we play takeover talk we'll hear more about this deal. by the way, who's the player who could get bought next? stay tuned, you're watching "squawbo rhteronnbk x"ig he cc. 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. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps.

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welcome back to "squawk box" this morning take a look at futures where things stand as we speak dow looks like it would open up 47, 48 points. nasdaq opening 19 points higher. the s&p 500 opening up 5 points. as i first reported yesterday right here on cnbc "worldwide exchange," charles schwab is in talks to acquire t.d. ameritrade. sarat sethi is here and mike santoli. sarat, i know this is an industry you know pretty well. >> we have over 2 billion in schwab

>> serving on their advisory board for many years >> schwab cut trading fees they were the first people to do it it's really a consolidation of complementary assets so i think if you're schwab you're looking at a big potential of complementary sinner kynergies on the revenue. you have customer base, clients like us that are sharing both and if you get the synergies especially given td has 25% of

trading going to zero. so you can see it from their side the question is how big do they become you guys are controlling 40, 45% of the business. >> would it affect you as a customer >> no, it wouldn't it would make us simpler we do use fidelity we have a couple others as well. does it provide any variety to our customers? maybe there would be more money spent on technology. >> what would be a fair price? >> i think when you look at it -- >> that's what's up in the air right now still? >> right right. it's a question of what are the expected synergies i think you'll get mid teens ecretion and the stock reflected yesterday. a lot of that has to go right. they have to relinquish the

control. that has to go right you have to get more negotiation. if this doesn't happen, i think t.d. is going to be in play and you have some other player. >> i was going to say, is t.d. in trade or etrade >> i think they would both be. a lot of them are looking -- etrade is more self-directed, so is t.d a lot of these players like schwab, you may get somebody looking for wealth management. that's the highest turn on investment then you add the cash value and you expand the pie most of them don't have all of their capital at t.d. and sch b schwab that's another area. schwab's done a great job in that business. >> the deal has to happen because is there a price at which there's a problem for them i think they're forced to do the

deal >> obviously there will be some price. if t.d. says we're up 20%, we want 40, schwab would walk away. they have usaa that they're still trying to digest there's a lot on the table for schwab they have a lot of opportunities. the market is telling you they like this deal. >> the fact that the market took schwab up, that's the -- >> if it's a stock deal, schwab has more cash on hand. they are more easily able to pay for it. >> we look at the prior deals, prior stocks have not been going up so the market has been telling banking stocks, which everybody thinks is cheap, and you have asset management saying, wait we're seeing more synergies and you have two people combining and really after that there's no publicly traded bohemoth you have goldman sachs and different things similar that would be good for the industry as well you would see more of a

consolidation. better for the customer. there's no trading fee so you really have to say how is this going to affect returns schwab has a lot of other things that they have they have their own mutual funds and products i think they're looking at, hey, we can get this at a cheaper price than it was six months ago. >> it's a massive acquisition of accounts and a huge cost save. to me, that's the way i see it you're not buying a brand. the active trader business, everybody coveted and it's a lot less because you're not charging basic commissions. that's a significant thing the cost of customer acquisition is tremendous. >> the risk on this is acquisition. >> on the schwab side? >> on the schwab side. >> because they're both strong brands. >> both strong brands. are you going to have customers that go somewhere else that say, wait, i don't want to be part of this how do you even deal with the customers? because the t.d. customers never really had a lot of people to talk to, right they've been self-directed now all of a sudden somebody comes in will they move to somebody else? i think a lot of this is done

because of the rollover. you've gone robin hoods, the betterman's of the world schwab has that, too i think this is an interesting play being on the offense, kind of what they did with cutting commissions but now they're saying to the players that are getting funded by venture, hey, we make real money market likes real money at this point as we've seen in any publicly traded company. i think this will be an interesting shot across the bow for all of the other players to say we're going to be the bohemoth of this business. >> sarat, thank you. we'll see you at the stock exchange, mike >> are you connected to people, to your peeps? have you seen anything happen recently just in the last 20 minutes or so? >> i don't know what you're -- >> it's friday you love fridays anyway, right >> yeah. >> john bolton, glad to be back on twitter. >> i saw that. >> after more than two months. >> yeah. >> for the backstory, stay tuned, dot, dot, dot, dot, dot

his last tweetwas on september 10th and it said i offered to resign last night and president trump said, let's talk about it tomorrow that was his last tweet. this is his first tweet. >> and you don't think the next treat is going to say, buy my book >> pretty sure it's not going to say, i'll be testifying. >> maybe not but i just thought it would make your day anyway, i don't know what's going to happen. coming up, tesla's truck play. the electric car maker unveils the highly anticipated pickup. first impressions are just ahead. i'm staying tuned. coming up, a fork in the road for online political advertising. today twitter goes its own way while facebook and google prepare to go theirs just ahead, we'll get expert analysis on each strategy from facebook's former chief security officer. u' w tuned yoreatching "squawk box" on cnbc it also has the highest groh in manufacturing jobs in the us.

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welcome back to "squawk box. futures indicated up 42 points on the dow we've had some green most of the session based on some comments from president xi that could be taken positively but then said that we can retaliate but we want to do a deal

these are a small move on the percentage basis youtube is preparing to overhaul the way it displays kids' content on the platform. kids are worried it could be the end of their business model. our ylan mui explains why. >> jeremy johnston explains his days are family and plenty of fun. >> 1, 2, 3, go. >> and he shares it all on his youtube channel with his 2 million subscribers. it's his full-time job and a big business it takes up to 40 people to put together all these videos, but lately the most important place for johnson to be is washington, d.c. >> we're trained to inform the fcc legislators. >> reporter: johnson is worried his channel and his ad revenue are about to take a big hit. that's because youtube is

changing how it shows its content. it comes after the company was forced to pay a record $136 million to the federal trade commission over allegations that it illegally collected children's personal data privacy advocates say the change is long overdue. >> i do understand that this is going to affect their bottom line and they're upset about that, but i think one thing they need to recognize is that the business model that they were using was an illegal one. >> some content creators predict their ad revenue could plunge by 60 to 90% so now they're fighting back. >> this is very serious. >> so family friendly content is kind of in danger right now. >> we may not be able to create content on youtube. >> reporter: creators argue that youtube's rules discourage them because they can't make any money doing it some of them could move to amazon prime or netflix where the rules are different, but most of all, they just want washington to hear their side.

>> as they're getting this new information they're reconsidering. they're thinking about it and they're realizing that this is a bigger problem and they don't want those unintended consequences. >> reporter: guys, johnson had planned to create a second channel next year that was more focused on education but those plans are on hold. back over to you. >> thank you, ylan appreciate that. coming up when we return, top stocks making moves ahead of the opening bell we'll bring you the biggest names next. next, twitter's ban on worldwide ads starts today is the social media making the right move facebook's former chief security officer will join us next as facebook is considering making policy changes stay tuned, you're watching "sawbo ocnquk x"n bc e middle wi♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere,

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welcome back to "squawk box," this is cnbc we're live from the nasdaq market center in times square. microsoft says that the commerce department has okayed its request for a license to export mass market software to china's

huawei the tech giant sells windows and office software to huawei. also, uber shares are rising this morning upgrading that stock to a buy saying it's showing signs of sustainable improvement and that its valuation gives investors good entry point check out the futures. the dow indicated up by 57 points nasdaq up by 20 and the s&p up by 6. let's talk about social media as twitter's worldwide ban on ads goes into effect. facebook taking a second look at its own policies criticized for the decision to allow politicians to say whatever they want on the platform facebook is thinking about increasing the number of users who can be targeted by a political ad from a hundred to a few thousand that could cut down on the practice of micro targeting or targeting small numbers of users

based on specific criteria joining us to talk about all of this is alex stamos. >> good morning, andrew. >> the real question is take us inside mark zuckerberg's brain how much of a push, a shift is this going to be for him do they want to do it? >> i don't think they want to do it they don't want to be the arbiters of what is an accurate political ad they don't want to be in the place if trump has an ad that says the u.s. economy has never been better, that facebook has to decide whether that's true or not. >> when you look at what google has done, do you think that they're going to be taking positions on that? i don't think that's what we're talking about. >> no. that's why they're looking at limiting micro target ging. the truthfulness relates to all. >> why don't you think mark zuckerberg from a philosophical perspective is willing to take on the issue of saying for the most egregious stuff i'm going

to deal with it? >> i think they could. i think they could have a standard that is about claims about your opponent. >> the costs for them in terms of human beings being required to deal with these ads, because that's got to be part of the problem here. >> it's not. the truth is the volume of ads that run on facebook is minuscule compared to the volume of organic content the volume has tens of thousands of viewers what he doesn't want to do is he doesn't want to break the seal on the idea that the super powerful targeting products are dangerous at all he doesn't want any kind of idea that -- >> let me ask you about two break the seal ideas though. how do you feel or do you think it would do it, turn off political ads. right now on facebook you can say, this works for me, this doesn't, work through the algorit algorithm. if there was a toggle on/toggle

off, is that a slippery slope? it says i want to turn off all ads or ads like this >> i think giving users choice is reasonable. the truth is when you work on these products you have the tyranny of the default. >> to me the ultimate band aid would be you can turn this off. >> people aren't talking about their individual choice. what they don't want is they don't want politicians running ads for their own supporters. >> you would turn nothing off? >> i wouldn't. >> neither would i >> i understand why you want to limit micro targeting, why that makes sense in the context of a presidential campaign or whatever, however, if i was running as mayor reaching 100 people might actually be all i want to reach. >> right if they came up with a micro targeting standard you could have tears you could say presidential candidates and house candidates have to do on a congressional

district basis you could say if you proof your mayor or local town council you lowered the limit, we're going through a verification what for issue ads that's the problem twitter has backed themselves into in 2019 everything is political. what are they going to do when nike runs a colin kaepernick ad or exxon runs an ad saying they're caring about global warming. is that political? twitter is motivating the advertisers to fight them over and over you're not limiting their targeting, you're banning them from the platform totally. >> so what do you think is going to happen? how soon do you think this all gets sorted? >> if i'm going to make a guess i think in the next couple of weeks you will see facebook announce some kind of limit on targeting. >> does that placate people -- by the way, does it rile up one side of the base or the other in terms of political class >> well, this is the interesting thing. i think people have over pivoted on the democratic side pushing against this i actually think in the end

limiting the power political ads is going to hurt trump's challenger he doesn't need the ads. he has the ability to hit them. >> all of these democrats are screaming. this is going to hurt democrats? >> it's a dumb move honestly by the democratic candidates. the moment we have a democratic challenger they're going to need to spend tons of money to make up the enthusiasm gap. mayor pete, he doesn't have name recognition. he has to define himself he'll be limited in his ability to use online ads when trump can use his massive organic base to define him. >> wait a second tell me this again >> because trump -- >> no, i understand. i'm just wondering -- >> so many followers. >> i'm going to have to re-evaluate. i've got to be you. >> yes >> yes okay i will then. we've got to censor all of this stuff. it's awful terrible lies, lies, damn lies. no, we've got to switch places. >> right >> are you ready

>> not really but -- not really. does google get any high ground for this, any credit for this? is twitter getting any credit for this does it really matter? >> i think it matters. the first thing is this demonstrates why we need a legislative move by congress only three companies have done anything, google, twitter, facebook those are the only three that have launched ad transparency projects there are thousands of other companies that have done nothing. you could run a very vigorous silent campaign, perhaps even with foreign money and just avoid those three companies and hit tons and tons of content. >> what do you make of this sort of critique? you saw this report yesterday, mark zuckerberg and peter teal have dinner at the white house there are people within the silicon valley and facebook according to some reports that are -- can't believe what's happening here >> yeah. >> that makes no sense to me i think you should be out having dinner out having dinner every night.

what's the problem >> yeah, i -- you see this in two places you saw it with zuck and then -- >> tim cook. tim cook different because he effectively was participating in an advertising campaign for apple -- i'm sorry, not for apple but for the president. >> his entire business is based on being able to import from china? >> that's right. he decided that the gamble here was i'll be in the ad and the cost of being in that ad is i will keep the tariffs off. >> to me this demonstrates why you want these companies to have the least power possible in political advertising. the truth is the president of the united states has spectacular power over every company in the united states, right? he controls the entire regulatory state he can start investigations from the doj. you don't want companies to be in a position where a person like this is over. that's why if there's going to be rules, the rules need to be finely targeted and fairly enforced if you end up in a situation where they have a lot of

discretion, you'll see people like trump trying to use that. >> it suggests that maybe companies -- here we always are saying companies should come out and deal with political issues, immigration, social issues everybody wants to be socially responsible. >> who says that >> we talk about it all the time >> you say that. >> i know. >> don't look at me while you're saying that. >> then you look at the situation that tim cook is in -- >> what do i care about? >>. ♪ money, money, money, money, money ♪ >> shareholder value. >> that's -- ♪ money, money, money, money, money ♪ >> that's the true green movement. >> do you like the truck or what >> the truck from the future, i'm not sure i would ever do a demo where somebody has to smash a window. >> do you like the way the truck looks? >> i'm probably not the target audience i don't know who -- >> is that what you meant? >> people who are buying the flame thrower, that's the target audience. >> if it had a weapon mounted on

it, that feels like it would be much more -- >> there are flame throwers everywhere. >> it looks like a stealth bomber or a leather jacket to own this car. >> is it stealth i wonder if you're not on radar. >> no, i think -- >> is it really a serious truck that they're trying to introduce to the -- >> yes, that's what he said. >> i don't believe it. we're going to talk more about it thank you. you're not the demo. >> i have a tesla. i love my tesla. i have a model x i wouldn't touch this thing with a ten foot pole. getting out of that thing in the parking lot. >> they have leather jackets on. you wouldn't look cool without a leather jacket. >> when i do the carpool i have to put my kids in matrix jackets. >> walk out with a flame thrower and start -- coming up, can tesla crack the markets for pickup trucks? i don't know. >> crack it how? >> rolling out the latest electric model let's say it doesn't resemble any pickup you've ever seen. we'll tell you about it when "squawk box" comes right back. don't forget to subscribe to

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for every dollar you spend at a small business, an average of 67 cents stays local. shop small and watch it add up. small business saturday by american express is november 30th. its namesake jams, folgers coffee, milk bone dog biscuits sales were ever so slightly below estimates and smucker's did cut the full year profits and sales due in part to softness in its premium dog food offerings. the shares off 1/3 of 1%

next up shares of foot locker higher by 3.5% 336,000 shares of volume they posted better than expected shares of profit sales did phi shy of expectations sales growth at established store locations, same-store sales came in better than expected so did profit marge kbins. they were better than last year. those shares on the move higher. we're going to ind with shares of a smaller company. this is a big pre-market mover we've got buckle which is up about 9% on 6,000 shares of volume the apparel retailer posted better than expected profits and growth in online transactions. so, joe, those shares up 10% it's only a billion dollar company. >> i've heard of it. never been in one, dom do you know anything about it? >> i've never been in one. what they do, they apparently sell apparel to young adults i don't know if i can call them a teen retailer. they say they are targeting younger adults. >> got nothing to do with

buckles though, right? they sell clothes that don't have buckles. >> i see jeans there on their website but they may have belts that have buckles on them. i don't know i don't shop there >> do you own a belt >> i own a belt. i don't like belts as you know. >> i know that >> yeah. with you it's not a mistake. >> no. >> you're not groggy and forget? >> no. my pants have the tabs. >> i know. >> because if i travel, i don't want to -- >> sodifferent yet so alike. thanks, dom. let's talk about tesla's big night. elon musk's company rolled out it says here, interesting looking pickup truck phil lebeau joins us now with more you've had three hours, phil, since we've been talking about it do you like it more or you're not -- i'm trying. looks like a stealth bomber sort of, too, doesn't it? >> reporter: yeah. absolutely it looks like something out of "mad max." look, i think it's a great niche vehicle for a statement.

will it look like that if it's ever built starting in the end of 2021? will it look like that if it is, it's going to be a niche model. that's my prediction i could be wrong could end up being wildly popular. it will start at 39,900. production is set to start late 2021 here's what they're offering with the cyber truck three versions of it the range depending on whether or not you go with the dual motor all the way up to the tri motor. between 250 and 500 miles when fully charged. towing capacity, between 7500 and 14,000 pounds. as strange as this looks, and that's getting a lot of attention today, it was the demonstration of what was supposed to be shatter proof glass. the windows are supposed to be shatter proof. look what happened when the head designer, he threw a weighted metal ball at the passenger door window or driver door window that shattered give it another crack. try it at the rear passenger window let's see if it does better there? by the way, he did not throw it

as hard as he did with the driver's side and as you can see here, yeah, it didn't work the second time either here's elon musk on the glass failure. >> we threw wrenches we threw everything. we even literally kitchen sink at the glass and it didn't break the reason it broke now, i don't know why fix it and post. >> by the way, most of the analyst notes out today, they believe the cybertruck is going to be a niche model. lifestyle vehicle, if you will, that is going to have limited sales or limited appeal here one other thing, guys, as you look at the analyst notes, you know how much discussion there is about tesla stealing away major market share from the big three and pickup business? zero very little discussion of that because that's just not a vehicle that is going to be likely making somebody who is a contractor with an f series say, oh, yeah, i'm switching over to the cybertruck that's not the opinion as of right now.

>> "mad max," retro fitted old trucks what about the johnny cab from total recall do you remember -- how about that >> i like that. >> that about that >> that's not bad. >> johnny cab from "total recall." >> i thought you were going to call up the urban assault vehicle from "stripes. >> the big toe, yeah he watches sometimes what was his -- sergeant husker? okay, anyway, phil, we got to talk about this in business, the business side of things. craig irwin, senior research analyst at roth capital. tim higgins, reporter at the wall street journal. when wants to start? business wise? >> well, it makes a lot of sense in some ways if, you know, tesla is trying to get into the pickup market, you know, toyota, for example, struggled for a generation to get any traction there because of the detroit freeze stranglehold on that

segment. so if you look at where tesla's market is in the u.s., it is largely in california. that's one place that toyota has seen success with its midsize truck. >> is it a business -- >> no, a niche product. >> phil is right about that. >> you know, there is a lot of jokes this morning this is more of a brand building event than anything else, you know elon played way too much minecraft over the last several years. that's what allows him to connect with the kids out there. >> you think the younger generation will buy the truck and wants a truck like this? >> there are people that want a truck like this. i was out to dinner last night with the ceo of a silicon carbide company from texas, like, man, i'm buying one. there are people that definitely want something like this. >> you think they thought the glass would not break? >> of course they had no idea the glass would break. that was -- the best part of the demonstration was atv. i think that could crush everything right? that's a cool little toy

so, you know, last night was really just elon having some fun. he said -- he said in public before that, you know, he doesn't really expect the truck to be mainline product >> really not trying to break the f 150 stranglehold then? or are they? >> yeah. no, they want to take it -- they want to be tough, but if their talk of bulletproof siding and windows and stuff like that, but clearly not a vehicle aimed at commercial buyers that would make a lot of that segment, people using these trucks in the business world something also interesting here on the pricing, and kind of suggestion of the rollout, the cheaper one, the cheaper version of this truck is -- looks like it will be one of the earlier ones to come out you normally see the high end one come out first you want to kind of get all the money you can out of the hot new vehicle. but the company's signaling it will be late 2020, 22 before the

higher end truck with the performance features hits. >> i just wonder so they'll never sell 100,000 of these? >> they're going to outsell the delorean that's a safe bet. but they probably won't outsell the aztec and that peaked at 28,000 units a year. it will be something similar to the s and the x, maybe better, maybe better than both. >> is it good for people to take their eye off the financials of tesla or that's not part of the -- >> tesla needs to do whatever they can to keep the multiplei the stock. and part of that is driving enthusiasm for the rest of the vehicles and enthusiasm for the company. and retail investors are a large part of the trading dynamic in tesla so, you know, this is something they're doing to maintain their multiple. >> you never could figure out the whole flame thrower thin think if they did have a couple attached to the siding and it

came out with those things, you know, on full bore. that could have been -- >> maybe even more popular. >> i said, should come with flame throwers and -- >> there is the atv. >> this is going to freak out. >> craig, thanks tim, thanks. to jim. >> that's right. jim is still in san francisco at one market plaza jim, i know you already talked a little bit about how you grabbed live wires when it comes to telling people they should sell pot tax right now, why don't we go through the trifecta and talk about tesla too? what do you think? >> well, geez, i hesitate to call it anything other than a disastrous launch. i thought this could be something that would be additive immediately because pickup truck market is the most robust. suddenly the big backers say, listen, never really important i don't know the stock is up gigantically since we first started hearing about this and this is all they got the momentum trade may have

ground to a halt here. never have to say that, i just said it. >> all right hat trick, way to go, jim. what else is catching your attention this morning what should we be following? >> foot locker surprisingly strong growth. mall-based player, talk about appealing to youth and it looks like it is working i don't know many people who felt that would be good given the fact that i thought the mall was dead nordstrom had a good number. williams & sonoma had a good number and people are finding fault. i beg to differ and think the stock could rally. >> awesome jim, thanks for the quick tease on all of that we'll see you in a few minutes by the way -- >> very good, thank you. >> great stuff out from san francisco this week. by the way, an exclusive interview on "mad money" with the ceo of clorox. that's coming your way at 6:00 p.m. eastern time. stay tuned "squawk box" will be right back. this is an incredible milestone for 10x on our journey to

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quick final check on the markets. half hour before they open the dow looks like it would open up 65 points higher. nasdaq looking to open up about 25 points higher the s&p 500 up as well, about 8 points higher. the ten year note now, looking at 1.760 and -- >> on an -- >> where is bolton >> bolton, stay tuned for that >> stay tuned for bolton. >> trump saying on another network, we have a deal with china, in his words, potentially very close

but then says he told president xi this can't be an even deal. >> which is what president xi responded today that it has to be on equal -- >> does this move anything >> probably not. >> a lot of basketball today a lot of little tournaments and stuff. >> have a fabulous weekend, everybody. >> college. >> we'll see you on monday join us then "squawk on the stree "squawk on the street" begins right now. ♪ keep walking on good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber at the new york stock exchange cramer at one market in san francisco. dream force gets ready to wrap up today futures getting some balance out of the comments from the president on fox a few moments ago that a china trade deal is, quote, potentially very close. plenty to watch, whether it is the flash pmis, la guard's first major speech, the tesla cybertruck europe is up ten year 176,