make sure you join them tomorrow >> them. that's us. big show huge show. >> they will be -- they will be taking over tomorrow and friday. "squawk on the street" coming up next happy thanksgiving ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. futures are steady as china says it reached consensus with the u.s. on relevant phase one issues some increases in guidance europe's largely unchanged ten year 173 case-shiller home prices up 32 in september year on year. road map begins with the record rally for stocks rolling on,

renewed china trade optimism set to fuel further gains of the open >> retail's big week and the tariff impact into the holidays. best buy, dick's, dollar tree, abercrombie among the retailers reporting today. >> and ford challenging tesla to a apples to apples tug of war between pickups and elon musk says bring it on three major indices saw record closes, top trade negotiators from the u.s. and china holding a phone call earlier this morning the two sides continue to work toward a phase one trade agreement. trade rep lighthizer, mnuchin, both participated in that call and both sides agree to remain in contact over remaining issues on twitter, you said the phone call last night was very important in terms of furthering a deal >> yeah. it is real i've been skeptical. this was a real call phase one probably happens financial services get opened up president may believe that

intellectual property is for real that instead of just a soybean buy, a promise to -- they would respect intellectual property. do i feel they respect it? that's irrelevant. this was a major breakthrough. the financial services to win, even the casino stocks people involved in the casinos were integral. this is a very major change. major change for me, lighthizer went with the mnuchin side not with the hard-liners and people were buying the stocks on the idea that at least tariffs will be stayed or some phase one agreement or probably going to be right. major breakthrough last night. i was quite surprised. i didn't think lighthizer would throw his lot in with mnuchin who is the soft liner. the mnuchin camp is the swartzman camp, the paulson, thorton, very, very influential group. and i think if you buy the financials off of this, the majors, you make money. >> what about trump? where is he on this? >> he's with the lighthizer.

big change kind of just decided this is what is going to happen. believe that the waiting for somebody to blink, chinese blinked on intellectual property again, we could say that's crazy. but the president a buyer, that's my understanding. the president can be mercurial, he would say mercurial, that's how he negotiates. he told me that's how he negotiates that's when we were an apprentice, a dry run. big deal last night. i was surprised. i didn't think lighthizer was going to go with him the financials have been right this is a jpmorgan move. david goldman. goldman is a buyer this is big. >> interesting yield curves flattened for nine straight days. do you think all markets are on board with this narrative? >> yeah -- no, this is a big change this is as of last night the markets may have perceived

it, but this was jump ball to last night jump ball. this was a very important phone call the chinese are controlling a narrative, that is surprising, they're doing that they're pushing and pushing and pushing. telling you something is going to happen. giving in on ip is something that i think i was hoping that they would give in, maybe, talking about not state enterprising being cut back, doubling down on state enterprises, not doing anything about fentanyl the president wants a win after the impeachment, he'll declare a win. and this is very big the rally makes sense. if you see something going on -- if you see an agreement that is going to be phase one, and it is going to happen. and i really do believe it is going to happen unless there is some last minute betrayal. >> so december 15th -- >> gets on hold. >> delayed not canceled, but delayed. >> the prior rounds, december 1 and so forth, get rolls back >> not clear but i do think that you're going to see -- let's take american

express. this ev been wathey have an appn in i think it will be granted i believe there is a better feeling. lighthizer -- this was a call, who was on the call? anyone from the navarro wing on the call no has lighthizer sided with the mnuchin wing i think there is tremendous momentum being created by the chinese. i think the president can declare victory. >> you've been talking about how important ag was to all of this. has that changed >> no, more focused on intellectual property. that's the olive branch. intellectual property this weekend was a surprise to the administration the intellectual property is considered to be one of the seven deadly sins that they got along with fentanyl, hacking, nothing on hacking, nothing on state sponsored, nothing on dumping, nothing on currency manipulation secretary mnuchin, very happy that they have given in. and that's a win and he's taking it and what you're hearing from

the chinese is true. and that is a big change actually quite surprising. >> all right so then what happens to the market >> don't want to bet against the market i think -- >> you don't think it is a sell on news. you don't think they have been anticipating what you're saying? >> no. as of last night, there wasn't clarity. i think the financial services stocks have been robust because of this. versus the yield curve but there is a definite movement in the trade talks and it would be the presiden the last minute saying i don't trust the intellectual property. there seems to be a belief that when they gave -- they gave in on ip, and by giving in on ip, the president has a win and he can drive something. this is as of -- again, this phone call was incredibly important. i know that sounds like well, that's one more -- that's going to work. you know my feeling.

i felt this was very dim that we should not get ahead of ourselves. i've been right about this stuff. people on twitter say i've been wrong the whole way. but there is big movement last night. the ip, i did not think ip would be enough. i thought they would have to give more, i thought they would have to place a big soybean order. no the momentum is here for the talks. there is momentum and lighthizer on the call very, very big deal. he had not declared his lot. which way he was going i think he declared last night big deal very big deal. big change >> you made that clear >> well, i had to. i've been the opposite i've been saying there is no hope, no hope, no hope and now there is hope. the chinese have really -- did they bamboozle us? who cares. what you care about at home is i know -- >> now a date for potential signing of a phase one. >> yeah. >> december 15th will be the next important day, when we will

not see the new tariffs on -- >> that's my understanding stay of execution, just like for the turkeys. >> so maybe dollar tree and family dollar and all of them can rest easy, right >> that was -- >> gary philbin will tell you, next level of tariffs, now you're starting to see the real impact by the way, they said, listen, we haven't seen the impact of the tariffs, it is about to happen people bought stuff forward. i think that the amazons and the walmarts have already -- and target, have pretty much dealt with it. some of these other guys know. the dollar tree was disappointing. it was tariffs it was also labor costs, distribution center. you see amazon is arguing really arguing to try to get as many people as possible there is a big fight over trying to get people to be at the dc -- the region centers but they do need to stay of tariffs because they were hurt, were they -- when they convert the family dollars, still being better low market stuff, snacks, i went to the most recent one, in

asbury park, too much snack. too much frozen food, the margins are bad versus other seasonal products. and don't forget, the shortage of helium, there a helium shortage. >> i wasn't aware of that. >> that's bad news for kids' parties. >> oh, yeah. tell you for the holidays, i go to dollar tree for balloons, stressful. >> what is the helium problem -- >> not a lot of helium. >> is it lack of -- what >> i don't -- >> supporting it is this. >> i don't look like a helium merchant do i look like a balloon i'm seven miles wide and a centimeter deep. >> i figured maybe -- >> you're supposed to say, no, that's not true. dollar tree, so much wrong i come back and i say, geez, give gary philbin a chance, he's done a lot of good stuff but there are issues, frozen food ripping, but lowest margin category, not good, family

dollar still doing better, you have to pay through the nose to get people to work at a distribution center. that's true. that's not a job people really like, but they make a lot of money in a distribution center >> well, a lot depepd pend oz oo you're talking to. >> at the beginning, these people can't generate, they have to be taught, they make a living wage yeah you were the one, david did pioneer work on amazon in the distribution center. remember, invoke the 13th amendment, the 13th amendment, the one that lincoln jammed through, or was that done after lincoln. can't remember, trying to remember the sequence there. >> amazon wasn't around during lincoln. no >> no? >> no. >> they're paying everybody 15 bucks an hour and benefits amazon has a nationwide campaign >> how much does it cost, a dishwasher in new york >> per hour? >> 18. >> did you read my memo?

>> i think you told me >> less than 8 how many gym memberships do you have to provide to people at your restaurants they come in they say, i want to run, but i need equinox? what is the matter with the y? >> that's a thing? >> yeah, they seem to ask for equinox, that's the favorite. >> you have to give them a gym membership >> 90,000 and a gym membership i turned these people down >> dick's, the guide is nice here, it includes all the tariffs that are/were slated to go into effect. >> here's one. what was the hot item? women's apparel. now, my travel trust owns kohl's hold your ears what was the weakest part of kohl's women's apparel. if women's apparel is bad at kohl's but great at dick's, what your conclusion? >> what is my conclusion women are shopping at dick's. >> that's right, my friend he just -- he nails it soccer, replacing football incredibly strong. footwear, amazing. dick's is back it is bigger than ever

and they have kept with value. stack, amazing job i wait to hear -- >> they pulled guns, they suffered briefly and since then they had a lot of good quarters. >> not unlike cvs, they pulled tobacco. remember cvs, $2 billion hit. >> walgreens has not. >> did they keep vaping? >> it has probably nothing to do with it, but worth pointing out. >> i think it is important that starboard bought a position, which is unimportant. >> totally. >> the media presents it as being, like, what do you got there -- >> i'm checking. >> dick's was remarkable dick's truly has cleared the -- very little light inventory. that's such a buy, even up here. dick's is -- sells incredibly low multiple and has a great dividend and it has beaten the tariffs and they're not worried about the tariffs and they have the right merchandise, not unlike target. they're in the target camp, not

the kohl's camp. >> makes sense >> $100 million worth of stock as well during the quarter. >> absolutely. >> pvh, you got strength in europe, you got tommy up 10. low tax rate, someone pointed out. >> right, they're trying to keep it down. tommy, by the way, plus 12 constant currency. europe is incredibly strong. car registration is strong in europe tommy is strong. calvin klein restructuring work, department store problems, not going away there was a monster good quarter. manny tariqo bought a gigantic amount of stock in the '70s. sometimes it pays to follow a ceo who buys a lot of stock and can't flip it, of course remarkable quarter from what people thought tariffs, yes problems, china, yes he's cut china imports -- exports by 50% he's been moving what the president wants, been moving away china but china still in price -- not as great because of hong kong. only thing good in hong kong is the alibaba deal, which you

correctly flagged. >> yes, and up 7% its debut. yeah it was a large deal. and it an important deal. >> jpmorgan though >> yeah. >> jpmorgan could be the winner in china remember that. >> underwriters. >> do not -- goldman how about -- maybe las vegas sands could be a winner. >> as a result of what you're talking about with phase one talks. >> yes big win in phase people who like -- who believe in the trade talk, i think you're going to win unless the president watching the show right now decides to make me look bad. >> can we get to best buy? or -- >> it is important to hit it it was just a fantastic quarter. >> good quarter. they did slightly increase their guidance as well, right? >> i think it is terrific. >> 1% to 2% from .7 to -- >> macmacy's, miserable at kohl, i told you al roker is the key man. >> retailers have different

geographic distributions, jim, it's true. >> some are smarter than others. macy's has got to get it together, fast they do not -- by the way, here is what is going on at macy's. hard to find service registers all over the place not staffed. versus target, front registers we have to go, but i got to tell you, target has the mojo macy's lacks mojo per share. >> people get that >> that's an important metric we follow closely here. >> mps >> when we come back, cramer's mad dash, count down to the opening bell look at the premarket. we'll get to some of the guidance in tech, which is not as good as some of the retailers. >> enterprise is bad. >> who is taking chipotle to 970 when we come back. driverless cars, or trips to mars. no commission. delivery drones,

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welcome back happy to have you here on a tuesday at the new york stock exchange it is a shortnd weeened week. i'll be working friday, you won't. >> you had to point that out >> i'm a year older than you >> a year? >> a year? are we measuring years, 7 years,

dog year dws. >> we got a mad dash hpe, which is the enterprise, well, you know what they say, they say corporate data center spending is down global pensions, nutanex, corporate spending on global -- on cloud computing, up, strong, david, this is kohl's versus target we got -- this is kohl's, kohl's being the benchmark. by the way, take that kohl's cash, david, that's confederate -- boom, okay? you know what i mean >> i do. >> so nutanix is the winner here down for a while they have good iterations. >> that circle -- >> one company is awful. >> that's not true >> that's unfair one company is not doing as well legacies, problems at hpe.

they have some products that are selling well okay but the fact is that enterprise is soft. now, hpe is somewhat akin to cisco. they sell on the enterprise market global tensions. it is just down. nutanix is a come back because of its own product line. let's not be too hard on hpe it is kind of like cisco absolutely if you sell only in the enterprise, the enterprise is shaky, because of trade tensions. >> right >> matters >> it does. >> yeah, it does matter. >> hpe has a hard time -- has had a hard time -- >> hp, the computer company, enrique, reports tonight. >> we'll see that. >> and then all over xerox when -- >> xerox, we're going to share that -- >> another letter? >> a lot of letters. >> a lot of letters. >> pretty good. >> letters per share. >> there has been a lot going on. >> the helium, by the way -- >> xerox copiers, very busy sending letters.

>> party city being hurt by the helium shortage. helium, cross fire between saudi arabia and qatar and it is very complicated why there is a lack of helium. >> thank you u.p.s. is also gearing up for a busy holiday season. you're going to want to hear what ceo david abney says about that he'll be with us later on "squawk alley. more "squawk on the street" coming your way. i'm a regular in my neighborhood. i'm a regular at my local coffee shop and my local barber shop. when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.

a decent mix of retail earnings, plus constructive trade discussions between the u.s. and china futures hanging in there we'll get the opening bell in about six minutes.

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world. the opening bell in about three minutes. we covered some china trade news so far covered some retail earnings david and jim did hp at the board and paulo alto networks raising a few eyebrows today. >> this is one where a lot of the companies have been built by acquisition. and when you get acquisition after acquisition, you get revenue growth, but you could see a stalling in the actual underlying organic growth. i have to be careful here because palo alto has been a great stock of late and the cash reward was here and the stock is up substantially from here, even from this decline. people didn't like the fact that he talked about some sales execution issues i don't want to say that the cybersecurity business has gotten too competitive, but there are companies that whether be it a crowd strike, z scaler upgraded the other day, fort net had good numbers, but people feel palo alto moved up too much

givend fact thn the fact that tt was tepid. he's not from the enterprise. he talked about how hard the enterprise is, the enterprise is selling to big business, takes a very different skill set from selling to consumer, and the forecast was just downright disappointing. cybersecurity is a secular growth -- >> been talking about how it is the hole in the overall enterprise doughnut. just incredibly strong when you see hp and you see palo alto, does your mind go back to chuck robins everything sort of stems from his original -- >> chuck robins, chuck robins has been adamant that there are -- the global tensions have made it so and this is the really important thing you need many more signatures on a deal instead of just someone just saying check it off, has to go up and down the organization,

and when you take a lot longer than -- the sales cycle is elongated, you get what you have here i believe that that is also a problem, palo alto now, remember, they have the move from firewall to cloud. that's a very hard thing z scaler and cloud being the great growth, but enterprise is weak consumer is strong and so when you're dealing with enterprise tech, it is almost exclusively not great. amazon is not enterprise apple is not enterprise. facebook is not enterprise alphabet, some enterprise. which is -- their new google cloud service -- >> they're doing great >> they also -- >> they -- it is azure thomas curry, by the way, google cloud services, watch it formerly known as darth vader, now lebron james, you don't get a $600,000 bonus if you're a salesperson, go to another firm

out there. people in sales listen to me, move west, young men and women >> got to buy a house. >> you can sell. >> opening bell. and we have s&p and at the big board this morning, it is kaleyra, mobile messaging services, celebrating a listing at the nasdaq calamos investments doing the honors we'll keep our eye on chipotle as kalyn from 800 to 970. >> does that ever make sense the new dish is working. all the technology really working. the delivery really working. that last quarter better than people thought i think that kalyn is spot on. that stock is going higher. >> they call these things chipotlanes, drive through that is digital. >> the technology revolution, he's brought this -- remember, this brian nichol came from taco

bell. >> yes, he did. >> he's all about through put. if you get good through put and good food, there is no stopping you. i don't know if you have all had the new -- >> carne asada, very good. >> it is not beyond meat. >> it is real meat. >> millennials love that stock so much. do you know robin hood has the same number of accounts as e-trade and valued at 7.6 and e-trade is valued at just a little bit more. >> really spent a lot of time talking about robin hood the last couple -- schwab and ameritrade deal. >> when i'm out there, millennials are -- they love stocks, they love etfs. >> beyond meat at 230 bucks a share or they like it now -- >> 77 is better. >> it is ethos >> ethos >> it has nothing to do with the price. it is like tesla beyond meat in a tug of war against, like, regular beef.

hook them up to each other. >> like the tesla truck, would crush them >> yes >> i can't tell whether your new found love for tesla's price is sardonic or honest. >> it is wife. >>it is wife lisa >> wife and kids we were in the model x this weekend and she just said, okay, enough with the balance sheet. i was the former cfo, he goes, look, the balance heat is problematic, the experience, the balance sheet is trumped by the experience my daughter in spain this morning texted me, you got religion here. so i'm done. >> you're tired of fighting. they wore you down. >> they did. they did i'm waiting for elon elon, the day he stopped tweeting, and started focusing and the ten month -- ten month build in china, this new pickup that i didn't like in 200,000 people signed up and people, the bears are saying, hey, it is refundable i got my model 3 money back from

my first order, first one who said, look, first order, she gave up after six months, couldn't get -- >> i got to tell you, three stories in cars today. one is audi is laying off 10,000 people >> how do you like that? >> fitch says on the sales by units will decline more this year than they did in '08, global number. and ftp subprime auto loans again these low rated slices are 4 to six times oversubscribed. >> expensive and loans and got ahead of themselves in terms of what people put down the consumer would tell you, do not worry about the consumer i'm with jamie dimon on that the tesla thing is rather incredible because i think beauty is in the eye of the beholder. i bought a ford super duty and loved it this is obviously not a super duty but by the way, gasoline and you need diesel is what everybody told me. but this tesla, i cannot believe -- by switching and saying i like the stocks, it is

like suddenly i'm man of the year rivalling that woman, gretchen, the one that came in front of congress and the treat, which is possible man of the year it reverses global warming >> tree is very important. plant a tree. >> a tree is a tree is a tree. >> plant one. >> i'm planting many >> glad to hear that. >> if we plant a couple trillion trees, weentirely, marc benioff, co-founder of sales force. mayor bloomberg planted a lot of trees here he reversed global warming here. >> any number of them have already perished, but -- >> well, had to just be such a downer >> i'm very -- >> you could bring anyone down. >> not easy being a street tree in new york city. >> trees -- >> people throwing litter in your little area. >> they have ginkgos, they stink but they're indestructible if the event of a nuclear war,

hide under a ginkgo. you get one on your shoe, it is worse than dog -- >> a lot of trees in brooklyn. >> many trees grow in brooklyn. >> a tree does grow in brooklyn, that's true. >> that was a good novel. >> very good. >> great picture too movie version is amazing >> throwback >> jim, disney, reports say million signups a day for disney plus "frozen", the biggest november ever for an animated movie and the biggest ever for disney animation ex-pixar. >> the only negative thing for bob iger, green bay looked material this weekend. huge packer fan. that's the only thing going bad in your life, how about that >> i don't know about you guys, verizon wireless unlimb ited, we signed up. i did it i did it very easy to navigate. >> the first thing you bought this year. >> boom, worked. >> tjmaxx and disney.

>> i think that's right. >> and dom chu -- >> the consumer is back, jim. >> 6:00 a.m. he bought it. >> it is free for the first year >> that's okay >> yeah. >> a little late in my house i have to say, watching all of those titles of which i own every single dvd somewhere in a closet -- >> you bought from disney before. >> yes >> dom had the -- i watched the show at 5:00 i watched the 4, the 3 that's how bad my life is or good dom was the actual first person to sign up and going to the discount because he already owned -- he already got disney plus, i get espn plus because i'm the king of fantasy. >> how many customers will turn off after year one if and when they actually are to pay service, unclear but it is a question at this point. and we're talking global scale is what they need here 2024, a number of years away until they want to -- and how much they're really spending some people dispute the way that

they are not dispute, it is not just the incremental spend, it is giving up certain programming that you're getting paid enormous amounts for to bring it back to the service. sky, for example, is paying you hundreds of millions of pounds a year for your -- to distribute disney product overseas, that comes back are they accounting for that as well the lost revenue and the cost, plus marketing, still going to be interesting to watch. >> and how about att >> how about the at&t piece, elliott on one hand, incredibly rigorous people. and then you have moffet nath nathanson. where do you come out, david >> we have to watch and report >> plant your flag is the jury still out? >> the rest of the day, one way or the other, will be spent taking phone calls

i don't need to do that. >> i'll take calls all the time. >> i know you do that's the way you like to live your life. i choose not to. >> i do like it. i'm like a living talk radio. >> questions in terms of ability for them to deliver in the wireless business, the growth they need to put up that 1% revenue growth number, it doesn't seem like much, given the views at least others have of their ability to gain traction with the direct to consumer offering, with warner, with the continued sublosses and directv. they're going to keep the higher margin customers they already have, still doing 4 billion, and that they're going to be successful with hbo max. >> the 39 is about to break out. >> it was. they crushed it. >> they crushed it. >> they did. >> they crushed it they beat it like -- like the ravens did in the rams last night, which was really extraordinary. did you see the numbers for the football game? >> i did i did. the patriots and cowboys highest rated game since '96.

>> what does this say? you got to own -- boring too i didn't find it boring. i thought it was a tremendous victo victory. >> not rooting for the cowboys >> did i miss something? >> jets are back >> the defense is great. >> yeah, amazing we're great. >> they could beat the eagles. >> they could. >> you think the jets could beat the eagles >> yes, definitely. >> they're a better -- >> oh, now >> yeah. >> i'm looking at them -- i have to tell you that a lot of teams could beat the eagles right now. >> speaking of things that defy logic, as we take a look, can't always watch football highlights i can watch them over and over again. i see your twitter feed is filled with football highlights. >> football highlights, yes. i do my bull market fantasy and i'm trying to get -- people are in the last rounds now, this is the fight to be able to -- >> the last couple of weeks. >> is your son in the post >> it is unclear >> yeah. >> what does he need

>> he started some -- he made some bad choices of late, from what i understand. >> i heard he cut lamar from baltimore. >> i don't think he did. >> yeah, pick the up baker mayfield. >> speaking of things that defy logic, not that he does, not sure what does, but you know what, guys in the latest letter from xerox to hp, another letter. another letter. >> okay. >> your refusal to engage in mutual due diligence with xerox defies logic so says xerox. john vizentine to chip berg, the chair, and enrique, the ceo. they go on to say other things there as well. one of the most important parts we can share with you, look at the performance in both stocks, they come back at them on this question of dissolving the fuji

film joint venture and whether they lost intellectual property. and that was at the end of yesterday's or sunday's hp letter they say, hey, we monetize d ou liquid interest at over 20 times, 19 expected aggregate cash flow. favorably restructured the terms. and we will continue to have supply, protect our high value interelect intellectual property significantly more cash. to support growth. >> i wonder if this is well timed versus the quarter that will be reported this evening. where you got problems on printer and believe me, intell is hurting them. intel is hurting them. they cannot produce the chips. this may be in prep for hp going down. >> most important thing here is what the xerox side will tell you is that they're having extensive conversations with certain hp holders, they believe they're getting incoming calls, not they believe, they -- incoming calls, reference it in the letter, from these holders, saying, hey, we don't understand why hp won't conduct diligence

excuse me. won't allow xerox to conduct diligen diligence, and so they're going to continue to push on that. if they get somewhere, great, hp reverses their stance to allow xerox to have diligence, otherwise, as i indicated earlier or yesterday, the expectation is this is to be talked about for months to come. >> it is getting ugly. the gloves are off there it is ultimate fight club. >> letters back and forth. it is a fight. >> it is a fight. >> we like a fight we sit there, we're like those people -- >> what is this we stuff these are nice companies hp, you got to give them -- all i'm saying is give enrique a chance >> you like a fight. come on. >> of course you do. >> i do, thank you >> absolutely. >> enrique has his hands full because of intel

not being able to make as many chips. untold story, we don't talk about it enough. it is a fiasco it is a fiasco >> what is a fiasco? >> they just put it in the 8 k. >> that letter they put out. can't make the product, we can't -- we have problems. >> 14 -- >> yeah. >> who does that hasbro, want make monopoly they have a long monopoly game now. name a company that puts out a release saying we can't make the product, who else? >> can't think of one off hand. >> party city with the helium balloons >> the helium is a problem. >> helium and chips. >> those are really -- both really high grade products we have to move on i've never seen a major american company screw up like intel. and amd is the beneficiary lisa su. no two ways about it buy amd. >> we got a record at the open slid back a touch here let's get to seema mody.

>> 24 record closes for the s&p. ten minutes into trade, we're slightly lower for the dow and nasdaq and s&p at the open markets digesting the latest xhen tare writ commentary from the chinese, consensus on properly reserving relevant issues, but still unclear as to whether a compromise will be reached before that december 15th timeline, when the new tariffs are set to increase. we're watching shares of alibaba closely, gaining over 6% in hong kong trade after raising $11 billion in secondary listing, easily the biggest offering this year remember, uber raised about $8 billion back in may. and now we have to see what we'll get from saudi aramco in december take a look at shares of alibaba, worth noting outperforming other chinese tech stocks this year, up about 14% versus the msci china etf up over 14% two stocks in notice this morning, macquarie initiating

square at outperform analysts there say venmo should boost growth potential that stock is up 1%. and callum aramco, increased consumer demand for food transparency, that stock had a nice run, bouncing off its february 2018 lows, up over 140% mixed bag for retail best buy shares spiking on a strong beat across the board earnings, revenue, comps, all better than expected the company raising guidance but dollar tree, down 14% after earnings came in a nickel shy of expectations the discount retailer also gave a weak forecast for the holiday season, expecting to take a hit from tariffs in the fourth quarter. dollar tree down about 16% tonight we get earn frings from box. back to you. >> let's get to rick santelli at the cme in chicago. >> good morning. we have another option today, we're on a different schedule,

two-year was yesterday instead of today, all because of the holiday. and do remember, the auction of 2s, 5s and 7s, which will complete tomorrow, will settle on monday. lately settlement dates have been of major interest that issuance has to be paid for. and writing those checks may affect short-term liquidity. though this one doesn't happen to correlate with taxes due as well as, of course, other issues like t bills that also settle early in the week. look at one week of ten year note yields. 173, if you open the chart up month to date, the lowest yield close of november is 171 if we're to close here, this would be the second lowest, all maturities drip down as we finish the month of november china is about to do something quite historic look at a month to date chart of a chinese ten-year 320. ours, 173, which would you rather have? there is credit risk and

currency risk. china is about to launch a 6 billion plus dollar denominated ten-year sovereign debt deal it is the biggest ever on record and, of course, will pay very close attention to that. there should be lots of demand and finally, let's look at what's going on with the dollar index. the dollar index is very fascinating here because as it sits at 99.37, it is now just one cent away from the high close of the year, which was, of course, at the end of september, at 99.37 carl, jim, david, back to you. >> all right, rick, thanks so much. meantime, comedian sacha baron cohen going after social media giants again after ripping into them last week. now penning this op-ed in the washington post on the issue of hate speech and the spread of fake news. he writes, facebook, google and twitter are unthinkably rich and they have the best engineers in the world. they could fix these problems if they wanted to but it won't because its entire

business model relies on generating more engagement and nothing generates more engagement than lies, fear and outrage. he's becoming the point man on social media. >> i urge people to watch -- i saw his previous speech, which was quite well thought out i remember meeting him a few weeks ago, worth bingeing on he is a great intellect and he's done a tremendous rap, like marc benioff. >> when you buy this argument more than zuckerberg's connecting people, bringing people together. >> they're both -- i want to be a little bit like david, take no stance, don't agree with -- don't commit, just kind of punt, say fine, fourth and nine. >> i don't do that all the time. it is important that i try to remain an impartial actual

reporter this, however, i to hado have an opinion. >> you do understand -- >> when it comes to free speech -- >> you understand cohen. he's brilliant >> smart man >> how about -- >> yeah. >> underrated. >> erudite fellow. >> two guys who have marc benioff introduced him to, sacha baron cohen and david blaine walked into david blaine last week, made me disappear. just kidding he doesn't like it -- he likes to talk dogs so do i. he knows mydog, nvidia, is sick he's got -- >> is that why you see david blaine >> i bumped into him on the street he's my friend. >> he's your neighbor. >> he's my friend. >> he lives in your neighborhood. >> he's my friend. david, on the one hand, on the other, that'syou >> be thinking about nvidia, jim. sorry to hear that. >> i'm very worried. he has this very bad kennel cough. but we can't find -- we have to do the endoscopy

he's 13. >> always tough. when we come back, a roller coaster ride for shares of dollar tree this year. today the stock taking a hit on this disappointing guidance. tariffs do play a role we'll talk to the ceo. record it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius.

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once again, a blow up in retail dollar tree leads the s&p lower along with hpe isorngtalk with both ceos later th mni dow up 24. oh yeah, he's ok. just ok? guess who just got reinstated! well, not officially. nervous? yeah. yeah me too. don't worry about it, we'll figure it out. i'll see ya in there! just ok is not ok. at&t has america's best network, now with our best plans, at our best prices, starting at $35 a line for 4 lines. new from at&t.

jim, what's on "mad" >> we're making a trade deal, we have one of our favorite stocks. you always should have some gold we have zappos, which is opened by amazon, it's on fire and time to celebrate amazon. it's going to be an amazon christmas. >> maybe the stock can catch up the to the rest of faung for the year. >> there's very few days now, much shorter season. you will see more amazon you have david adeny on. what a great get. >> cyber monday is coming up. >> that changes my whole lifestyle, by the way. no, i have to buy a tesla monday

to satisfy my wife and kids. >> really buy a tesla on monday? >> to support the stock at this point. >> i need a charging station. >> in brooklyn. >> with that i would have to buy four. >> now there you go, david committed to something. >> finally committed >> we'll see you tonight, jim. "mad money" at 6:00 p.m. when we come back as jim says, it is a rough day for dollar tree the ceo is up next if you're on medicare, remember,

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the street." rick santelli here live on the floor of the cme group with some breaking news. consumer confidence releases their confidence number. this is november expecting 127. a disappointment 125.5 sequentially following 125.9. that is the weakest level since june of this year. look at present situation deteriorated from 172 and change to just under 167. expectations actually moved higher from 94.9 to 97.9 new home sales october number,

733,000 seasonally adjusted annualized units, with a subtle revision from 738,000 last month, that is down 0.7. for more color on this number, let's aim east, diana olick. >> thanks, rick. there was a huge revision to that september number, so the street was actually looking for much less than this. it is actually a much bigger gain than it looks like in the numbers right here we did see mortgage applications to purchase a newly built home jump very dramatically in october. so again, not a surprise to see this big number of 733,000 annualized what i'm looking at here, though, is the price the median sale price, 316,700 that is down from 728,300 a year ago. the builders are bringing prices down, looking at that more entry-level supply of homes for sale and all the buyers out there, they are looking for that entry-level again. to see that price come down is really a good sign we're looking at 5.3 month

supply down from a 5.5 month supply last month, so supplies are coming down, builders are seeing a lot of action and remember, mortgage rates did pop up a little bit in october of this year, but they are considerably lower than a year ago. a lot of demand especially with that shortage of supply on the existing home side. >> thank you very much good morning, everybody. welcome back to "squawk on the street." i'm carl quintanilla with david faber and morgan brennan in for sara eisen at post nine. despite that slight disappointment in consumer confidence the melt up here continues. record highs across the board and a fresh 52-week high for the russle >> our road map starts with more record highs for stocks as you heard just say the nasdaq and s&p hit the open. >> the tariffs impact on retail, we'll talk with the ceo of dollar tree with the stock sinking on today's numbers. >> what mike bloomberg's presidential bid means for the democratic field with the race for the white house heating up. >> let's start with the health

numbers. best buy is moving higher after posting better than expected results raising its forecast ahead of the holidays. dick's shares surging after reporting its strongest comp since 2013, more than double the system over there. dollar tree is the blow up down sharply after lowering its holiday quarter outlook, citing the impact of tariffs. later this hour an e cluesive with the ceo gary philbin, one of the worst laggards on the s&p this morning if there were success stories point to best buy and dick's, that includes the impact of tariffs in place and slated to go in place. >> yeah. the theme continues in terms of the retail earnings we've gotten which is winners and losers. tariffs certainly in focus for dollar tree. one of the other things is freight costs. we have the ceo of ups coming up in the next hour on "squawk alley. peak shopping and shipping season certainly with that next round of u.s. tariffs still slated to go in effect in mid-december

we'll see what happens with the faze one trade deal. with that still slated to go in effect, the addition of tariffs will be a theme to continue to watch. all right. progress on the trade front, speak of, the u.s. and china are said to be moving forward on a phase one of a deal but it may not be enough for investors' liking the s&p is little changed after hitting its 24th high of the year yesterday meanwhile on the economic front, fed chairman jay powell says the glass is more than half full and that the expansion still has room to run. >> the outlook for further progress is good forecasters are generally predicting continued growth, a strong job market and inflation near 2%. at this point in this long expansion, i see the glass as much more than half full with the right policies, we can fill it even further >> we're joined by pimco head of

public policy and the prudential chief strategist we see stocks move to fresh record highs you think it keeps going from here? >> it never keeps going. you will reach an over bought situation and the market will pull back before we saw the move up this week. that's healthy but, you know, this is a good season for the market. you do have window dressing, make no mistake about it that is a function of the end of the year trying to get your performance up, vis-a-vis your competitor's, and i don't think that's going to change the other thing we have this year versus last year is we have a fed that has basically said, no matter how much they want to pause, they will lower rates again if need be the market is taking that in despite the concerns over trade. those concerns, i just want to add this, the market will be happy as long as their top keeps going and we don't get the escalation of the trade war in

mid-december >> libby, do you think investors are factoring in the possibility there could be escalation. we've seen the talks get close like this before and not work out. >> we have i don't think they are i think in some ways the market continues to be sort of priced for perfection as it relates to this phase one deal. i think if talks, as you said, morgan, break down again, which we have seen now several times, i think that would be a real surprise to the market i mean the mood music is good, right. it's good from china, it's good from the u.s.' perspective but there are certain obstacles in the way to securing the phase one agreement and the phase one agreement is pretty skinny what we're talking about isn't the big, grand bargain we had on the table earlier this spring. the hong kong human rights and democracy act f that is signed into law, that's a poke in beijing's eye and securing issues on the structural

fundamental issues continue to be an obstacle even if we get phase one, is that going to be that big of a deal it remains to be seen. >> we talk so much about u.s./china trade but there's this u.s. mca sitting in congress, that could be moving forward, we haven't seen auto tariffs go into place on europe, things with brexit seem to be moving forward somewhat right now. are some of these broader trade tensions easing? >> yeah. it's a great point the market is understandably focused on china and u.s. and uncertainty there. on the usmca in particular i think our view has been we are much more optimistic that we do see a ratification of that trade agreement, only because honestly, i think the democrats and speaker pelosi are expedient here she knows she needs to give her 31 centrist democrats a win simultaneous to sort of impeachment and proceeding with the impeachment inquiry. she will probably bring that up. it may not be when the market

wants. we may see that in january or february i think we're feeling optimistic on that front. >> how should an investor be positioned right now >> i think across the board, i think one of the things that i really like are the small and mid caps, starting to get a bit and working higher if you look at the subsectors, it was industrials, it was health, biotech, and financials. you could either spread that out in the large cap or go into small cap. if we could keep that small cap momentum that doesn't come from retail investors that move came from hedge funds or institutional money managers betting that the u.s. economy is on solid ground going into 2020. i think for retail investors, they can actually mimic that in the small cap space and large cap space. >> so this emerging narrative we've heard that maybe the -- the slow down in economic growth is bottoming both here in the u.s. and abroad, you buy into that >> i do. you know, for every negative that we're seeing, there are a couple of little green chutes

and remember how the market moves. we move when things get less bad. we don't get in when everything is great that doesn't sound scientific. things are getting less bad and that's good. it's good for the market i think that's why you're seeing the market move higher again, for the trade issue, just don't make it worse. everyone is getting too much into you need this, you need that, you need structural reform all the market says is don't make this worse. >> libby, when does wall street start really i guess honing in and caring about some of the drama out of d.c. right now? we had another continuing resolution passed. can't get the government fully funded for fiscal 2020 all the impeachment stuff going on and elections into 2020. >> yeah. i mean the market has been pretty impervious to the impeachment inquiry and the sort of possible shutdown drama where they may be more attentive will be on the election front and, you know, what our -- my view is to sort of my recommendation to our clients

and investment committee it is still early days felt like this election process has already been drawn out if you look at previous election cycles the front runner at this point in the election cycle rarely becomes the nominee the only exception was president trump and hillary clinton in the 2016 cycle when basically every other cycle in the century is where the frontrunner has not become the nominee it's still early days. bloomberg's entrance and deval patrick's entrance in the race underscores that from an investment perspective, market's perspective, let's not make positioning changes based on where the pulling is now because invariably it will change. >> put the same question to you, quincy. >> you know what is interesting is how the market and the algorithms, sniffing out, is elizabeth warren the frontrunner? you see the health care providers, mayor pete got in there, health care providers moving higher.

the market sniffs out going into who the candidate is going to be you sort of get a little bit of a relief rally in those subsectors >> all right libby and quincy, thanks for joining us today happy thanksgiving sticking with the market outlook, let's get to steve liesman who sat down with the dallas fed president robert kaplan today and made quite a few headlines. >> yeah, carl. the dallas fed president expecting a weak fourth quarter, but saying the economy should bounce back to 2% next year. 2% growth, he said, about as good as it gets for the u.s. economy. >> if you want to grow faster we need policies away from monetary policy monetary policy is not going to address this you need infrastructure spending, you need immigration reform, you need policies that improve education, skills training >> kaplan's big concerns for the economy, high corporate debt levels, specific worry the blooming amount of triple b debt, which is the lowest investment grade. >> it's not like an 809 because

in that -- the problem with 0809 the lenders were overleveraged we have an issue where the borrowers are highly leveraged and my concern is if you have a downturn where we grow more slowly, it means that this amount of debt could be an amplifier. >> that is making the current situation worse in that event. now on interest rates, kaplan saying that rate cuts are over for now. quote, for the time being, i think policy is in the right place. carl >> steve, as for powell, people said he's not going to make any news in rhode island. >> that's what i thought. >> this bit about glass much more than half full, the positive social impact of a prolonged expansion. >> yeah. >> you know, reevaluating, it's pretty interesting. >> he's been sort of warming up to that idea, carl, this idea that there's a really social program in running a hot economy and he's been talking a lot about this idea of how many

people are brought back into the workforce, that employers are reaching, for lack of a better way to put it, down the scale in terms of skills and experience as well as overlooking things like even prison records or credit ratings of employers, that they don't have the luxury of -- that they have the luxury of doing when the job market is not as tight so this is a new thing for the fed. the idea that they can keep going and remain essentially the real funds rate at zero for some time here. >> between powell and kaplan, you're keeping the fed fire alive. good stuff talk to you soon. >> not my intention, but go ahead. >> when we come back we'll discuss what billionaire michael bloomberg's run might mean for the wealth tax debate. dollar tree, stock down 16%. record highs across the board. livongo's mission is to empower people with chronic conditions to live better and healthier lives. we started livongo with a vision of transforming the

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michael bloomberg entering the long list of democratic candidates running for president, but with a net worth above $50 billion will voters have his back as many of his rivals call for a wealth tax for more on bloomberg's past policies and leadership we welcome writer eleanor randolph her book "the many lives of michael bloomberg" is out. >> thank you for having me. >> is the democratic electorate those who show up to vote in primaries in the states going to

warm to one of the wealthiest men in this country or does he need to somehow change who michael bloomberg is, given his many lives, in order to appeal to them? >> i don't think he's going to change i don't think that's going to happen he's 77 years old and he's, you know -- he was here in wall street and then he took over the city for 12 years, new york city for 12 years, and then he's been this very active philanthropist, so i think he's going to stay with that. but it looks like he's, you know, this week, he's spending $35 million to introduce himself to people around the country, and so that michael bloomberg and that ad, that's going to be most people are going to understand who he is. >> and what is that going to be? what is he going to be stressing in your opinion and given you've done work obviously and written a book about him, as to why he's

qualified and/or should be leading the country? >> well their view, the bloomberg people, feel that when you look at michael bloomberg, he started out with almost nothing. you know, his parents did not give him a million dollars when he was in the third grade or anything like that and so he, basically, he came -- he went to johns hopkins, he went to harvard business school, and then he was at solomon brothers and he was -- he was one of the first people at solomon brothers to realize that this was not going to be an economy based on paper anymoree mouth at solomon brothers and he took $10 million and created this company he likes to talk about himself as a fixer, a person, a doer, not -- i mean frankly he's not a great speaker, but, you know,

he's going to try to sell himself as somebody who would like to try to fix the federal government. >> speaking of fixing things, whether it's guns or soda, these policies that he's worked on to fix troubles, has become a bit of an albatross. >> right. >> what do you think the strategy is to address them in middle america we're to the going to iowa, but eventually going to have to talk to some people in the middle of the country who thinks he wants to run a nanny state. >> you know, i mean i think one of the things that he keeps saying is that people in new york city live after he was here for 12 years, people in new york city lived three years longer than people in the rest of the country, and part of it was that he stopped smoking in most buildings, including i'm sure this one, and, you know, he rolled back transfats and he would tell people to walk up the

escalator and all that is sort of thing the big -- the big gulp was one of the failures for him, but he likes to say that he won because people now look at that huge bucket of soda and decide, i'm not sure i want to drink that much sugar i think he could sell that in a way that will make a difference. >> tens of millions of dollars towards ads. he's going to self-fund this campaign, which means he's going to be sitting out some of these debates. it's an unusual path to take how does it speak to i guess how he does employ strategies as a businessman and now someone on the campaign trail >> you know, i think -- i really think it's very hard for me to imagine why he's gotten out of these first four states. that strategy did not work for

rudy giuliani, who tried the same thing and came in third in florida in 2008. but that's what he wants to do he wants to head for the super tuesday on march 3rd when 34% of the democratic delegates are chosen i mean that's his strategy i don't -- who knows whether it's going to work or whether the, you know, elizabeth warren and bernie sanders view that he's just too rich to be a real candidate, whether that will take hold. >> finally what about bloomberg the company, an enormous company, worth an enormous amount of money? was he bored and wanted to do something else and what about the future for that company? >> i don't know about the future of that company. i mean they -- you know, there's some competition, obviously, with rifinitive and reuters. he loves that company. he loves going in and learning

about all of the brain power he's got a couple of brain operations, one is in princeton and things like that but if he became president, he would have to get rid of it probably. >> yeah. conceivably. that's certainly a key question. thank you. appreciate you taking time with us. >> thank you as we go to break, take a look at best performing stocks on the s&p, with best buy leading the way right now. that stock is up 8%. intuit is higher "squawk on the street" back after this break n't know what's. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions.

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like flu shots and annual physicals. you could also get over $150 in free health and wellness products. so now's the time to look at unitedhealthcare's variety of plans, and let us help find the one that works best for you. also ask about our ppo plans that let you see any doctor who accepts medicare, without a referral. and take advantage of in-network costs, at home or traveling, when you see doctors in the unitedhealthcare medicare national network. with many of our medicare advantage plans, you'll have $0 copays on the most common prescriptions. in fact, last year our medicare advantage plan members saved an average of over $6,500. and with renew active, enjoy a free gym membership and up to $115 in rewards for staying active. you can count on our guidance and support to help you get the most out of your plan. we can also help you schedule appointments or find a specialist. annual enrollment ends december 7th. start taking advantage of all the benefits...

of the only medicare advantage plans with the aarp name. we make it easy to enroll, too. so call unitedhealthcare or go online today. [sfx: mnemonic] time for our etf spotlight taking a look at the ishares nasdaq biotech, coming off its best daily performance since june and aiming for a sixth consecutive day of gains it's currently, well, currently dipping back below the flat line right now.

so far this november the ibb is up 10% on pace for its best mostly performance since january. biogen is leading the gainers. vertext down 1%. >> the tariffs impact on retail. we'll have an exclusive with the ceo of dollar tree stock is down this morning about 15% here leading the s&p lower back in a minute

welcome back, everyone i'm sue herera your cnbc news update at this hour a 6.4 magnitude earthquake striking albania this morning. the quake injuring 600 and killing at least 14 people rescue crews working to free people trapped in the rubble of

collapsed buildings. this is the second major quake to hit albania in as many months. rocky relations between google and its employees four employees who had been active in labor organizing there have been fired. the company cited, quote, clear and repeated violation of our data security policies end quote. amazon has scored a win over its rival microsoft winning the it contract of the seattle seahawks from redmond washington based microsoft following the defense department awarded microsoft a lucrative $10 billion cloud commuting contract the fda released an update on cbd saying a lack of scientific information means it cannot conclude cbd is safe for use its official regulations are expected in coming weeks but its strongest statement to date. you are up to date that's the news update at this hour back downtown to you, carl. >> thank you very much. meantime dollar tree shares are sinking, lower than expected

guidance, the retailer signaling a disappointing holiday quarter. joining us is dollar tree ceo gary philbin >> thank you, carl. >> we mentioned the price action today. it seems like the market's known the potential impact of tariffs on the sector. why is this a surprise >> i think the change was while we had a good q3 we did change q4 guidance. around list 4a specifically. i think the opportunity was in q3 when we went to guidance well, did not include that and our team works hard on mitigating tariffs that's a short window. we thought best get into our guidance for q4. >> what is the strategy to mitigate tariffs at this point >> we negotiate lower costs. sometimes meeting face to face with our vendors we are moving some product out of china we're sourcing it elsewhere.

we are redesigning product 4a is a bigger spread of for us and on short notice we won't get a chance until january when on one of our major buying trips to meet with vendors face to face again. >> is there no ability to raise price? >> well, everything is a dollar at dollar tree and family dollar we have that opportunity it's about really getting the value. we've never promised the exact same tim item. we promised great value at a dollar the opportunity to pick and change items is there or negotiate lower costs. >> so ex-tariffs strength the consumer overall. >> dollar tree we like comps at 2.8 at dollar tree, 2.3 at family dollar. that's four consecutive quarters our renovation of our store base is working at family dollar and we have mixed pressure at family dollar our consumables are doing great. you know, the items that a customer needs more jingle in

their pockets, goes into the holiday season, that's where our pressure is right now. >> are you planning as if the next round of tariffs on chinese imports is going to go into effect in mid-december. >> that's what we called out, morgan, for q4 we expect all the tariffs, including 4 b to go in. >> what does that mean in terms of freight costs have you been pulling items and inventory ahead of that? >> as best we can. some of these notices we don't get that much time and you're buying this often four months in advance so our ability to lanz freight sooner, we take advantage of it but that will change in 2020 if the tariffs are in we're back to going after lower costs, changing product and countries. >> i wonder this, though, if, in fact, the tariffs come off at some point in the future you will have taken costs out of your business. one would imagine your margins will be higher than they otherwise were prior to tariffs? >> i would not wish tariffs on us, but exactly right. this has combined our teams to

really negotiate in a different way, look at the value of the product, look how we pack the product to go into ocean containers so it lands cheaper in the u.s that toolkit is there. yes, there's a margin there to be had if and when tariffs go away. >> you did get a number of questions on the call about margins overall at the family dollar stores and how that's going in terms of your plans, h2 and what you're talking about. do you expect to see margin improvement or happy how it's gone so far. >> we're not happy with the margin we sat down it change the face of the store base with over 1,000 renovations this past year we announced another thousand next year. we like the foot traffic the transaction count has gone up in h2 and the fleet that hasn't happened consecutively in a long time at the banner our changing face of family dollar is really going to be the fundamental change we've got work on the mix now, but we had to get transactions more customers in the door.

>> every day investors wake up, we come into the office, try to figure out where trade is, right. what happened on the call last night? what's the read out from the chinese versus the united states is the radar any better at a retailer how do you find out where things are moment to moment >> that's a good question. i follow maybe you folks as soon as i do every morning, but when talking to our vendors, there is the opportunity because there is a nervousness of who is going to get business, because we can combine within china, who is going to lose business, because we can find folks outside and sometimes it's a better deal just to change a packaging and get a lower cost coming into the states. >> what's the best example of a supply chain migration you've made >> solar lights. i mean our little decor that you can right this week get all your santa claus solar lights to decorate your driveway is moving out of china >> to? >> vietnam and burma. >> and capacity is there >> to do most of our product

that's key because you can't pick up with a volume we do and give somebody the first po that's going to shawk and awe them with the quantities qualify them and give them a test order. >> we've done some work on this, whether it's capacity or getting it to port in time, reliability of vendors, has there been -- has it been frustrating overall? >> i give great credit to our marketing and our merchandising teams. we have done this without a hiccup as we parachute into the fourth quarter with all the merchandise coming into our stores. >> we were having fun with the helium shortage this morning a bit, but for you, it's serious business it does have an impact is it going to continue? is there a light at the end of the tunnel for when helium will be abundant? >> impact first half when you think about valentine's, mother's day, graduations, clearly a bigger impact this year it's a real thing. folks, we're known for it.

folks come in, if they buy that they buy something else. that's what we commented on. we have to redesign what's the next helium balloon. our teams are working real hard on getting other exciting product in the assortment. >> what's the best-selling item? >> in our store? >> yeah. >> at dollar tree and family dollar it will vary, your basics, but when you think about toilet tissue, number one item in both stores think about items this time of year, charger plates, on-line at dollar tree become the number one item somebody is decorating their table, all those items that you can put on your table including the centerpiece for a dollar, those are the items that change this time of the year. >> are you surprised that a 15% loss in market cap today >> you know, we went into it really with the thought we need to be as clear as we can during this whole year starting off with our store optimization, how should we think about our business, get transactions i think we got credit for that i think today saying where we

were headed for q4, again we wanted to be as transparent as we could listen, we'll be rewarded if we do the right things going forward like we talked about on the call. >> is there any clarity on 2020 or is there so much emphasis figuring out what the next 12 weeks -- >> listen, we're focused in stores and with our merchants on the next month really to go. we're around the time when our budget is coming together for 2020 really mitigate the things we called out today. >> store base going to change much >> we're going to grow stores. you've heard us call out a thousand more h2s for family dollar, we will new stores for dollar tree and family dollar coming to somebody's community next year. >> outlier in retail overall. >> it is we're proud of it and added that store count for the last three years. >> cnbc headline last week, fda flags dollar tree for selling over-the-counter drugs made by companies of patterns of serious

violations what's the update? >> we have a response to the fda. we take it seriously we have a testing protocol for our items and we're going to work very closely with the fda to really understand what it is they would like us to do on top of our normal testing today. more to come we import a very small group, small number of items of our otc assortment we're looking forward to meeting with the fda in the next coming weeks. >> gary, appreciate you coming in >> thank you >> the stocks coming off a little bit of the lows if that means anything. >> thank you. >> when we come back a check on how nordstrom is gearing up for the holiday season after opening its flagship store last month. more "squawk on the street" after this the dow up 13 points

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we never stop taking care of you. welcome back to "squawk on the street." nordstrom gearing up for the biggest shopping season of the year after opening a new flagship ny c store. joining us is jamie nordstrom and courtney reagan. >> good morning to you thank you for being with us. >> thank. >> has been a big month. you opened the new flagship store and reported your earnings for the entire company when we talk about the company as a whole, good performance, especially in the face of rival department stores. sales were still down 4% is this a format that is not going to see growth again when it comes to sales? >> well, the way we look at our business and how our customers are shopping, it's hard to tie them directly to a channel our customers are increasingly

shopping across multiple channels and our strategy for some time has been to create a seamless experience, no matter how they want to shop. what we started to do last year in los angeles is to bring all those assets together, our digital capabilities, supply capabilities we invested in, as well as our stores and people, to create a number of shopping journeys that were completely unique and so those sales are showing up in lots of different places the way we report obviously is one way through the segment reporting, but we look at our business as nordstrom and we know that the customer has lots of choices on where to shop. they're not choosing between one nordstrom store or another or nordstrom.com. if we do a good job of creating a lot of really seamless experiences, take a lot of the friction out of it, we think we're going to get more of their business so far we've seen some really encouraging signs. >> so when you connect all of

those things together, the stores, the e-commerce, service locations, the local pick-up locations in new york and l.a., you are actually seeing a lift in sales, but why is this i don't -- tie that together for us >> i think new york is a good example. we opened two local service hubs, one in the upper east side and one in the west village. our flagship store that we opened last month. express services in our two racks, one on 31st street and one in union square. any customer in manhattan can order an item from nordstrom on their phone, have it delivered same day or they could pick it up that same day or next day at any one of those locations and for new yorkers, having a location on their way home from work right by their train station, that's really convenient it's hard to get stuff delivered to a lot of places around here returns is another big opportunity. we're goingic to take a lot of returns. we're in the clothing business

if you take friction out of the return process customers return stuff faster and we get more market share from them being able to really focus on a market and figuring out how do we take friction out of the shopping experience, create nor selection that can be delivered faster by leveraging all of our assets and so far, particularly here in new york it's working well. >> yeah. returns are such a high growth part of logistics business right now and just continuing to grow. you mentioned rack the discount stores help or hurt the full price stores? >> absolutely help we have a product business, nordstrom, nordstrom rack. we have 280 rack stores and they are some of the most productive stores we have the way i think about it is, a customer who walks into one of our rack stores and has a great experience and walks out with a smile on their face and a bag in their hand, the value of our business went up the better job we do of giving people a great experience, no

matter which format, channel, off price, full price, no matter how they want to shop, if we do a good job for them, the brand nordstrom just went up and we will get more business them. >> they have been reluctant to pull holiday sales forward you're closed on thanksgiving and you hold off on decorating you've also set the gifts a little earlier why are you changing that? is it helping drive those sales earlier? >> we've always felt that it's important to celebrate one holiday at a time. we traditionally have not decorated our stores until after thanksgiving we realize that customers start shopping for gifts earlier than that this year much more than in years past, we started a real concerted effort to be purposeful about having that gift assortment out the first of november we have gift hubs in prominent locations in our stores. gifts are called out much more so on-line and i think we've done a better job than we have in the past

around really nailing those price points we know that most gifts are under $100 and really under $50. and we've done a better job this year, we've got a ways to go on this, but having really great gifts under $50 in a great location we can make that easier for the customer, so far so good on that. >> the partnership with rent the runway, will there be more of those types of tie-ups >> we are looking to be the place where customers discover something new, new brand, buy clothes and rent the runway and other models around e-commerce are things that customers are clearly voting for we need to be opportunistic around trying things that we can. rent the runway is the latest, but we know that particularly the younger customer, they're going to want to shop differently. we can't keep doing what we've been doing for 50 years. we have to find new models out there and bring them to our

customers and see what works. >> i hope you don't mind a question about lvmh/tiffany. what it says about brands trying to survive at the high end. >> we have a lot of respect for both of those companies, certainly. they're very, very good at what they do and i think it's another testment to the brands matter and particularly in our full-price business, we know that customers look for brands it's not about price point necessarily. they're looking for brands that mean something that could be nike, it could be tiffany, it could be van's or converse, top shop. >> do you think tiffany tried to democratize too much >> i'm not going to be the expert on that i think those guys know what they're doing and run a really good business. i think they run a global business and they're looking at their business globally and i'm sure lvmh is as well and they

see opportunities to get some synergy out of combing those two companies and i wouldn't bet against them >> for the holiday you're offering free next day shipping. what does that cost you? >> we've been doing free shipping for, gosh, ten years and we know that's something customers really value, customers don't value -- for shipping more recently we've done free next day shipping in markets like los angeles and new york and the way we can do that is because the merchandise is here. we have a lot of inventory in the market that we don't have to fly from somewhere else in the country, so we can get it to that customer really fast without putting it on our airplane we have just within the manhattan market, we have probably about 90% of our total company selection that's available next day >> we would be remiss if we didn't ask you about the state of the consumer going into black friday what do you think? >> we're encouraged.

we see the opportunities that we have to do a better job job for customers in giving them a great experience, serving them well, particularly around gift giving occasions. so far it is very early. the consumer seems to be responding, particularly in the new york store reception has been fantastic we're not economists, but see how customers are shopping, gives us reasons to be encouraged over the next months. >> jamie, thanks to you for joining us courtney, thank you for bringing it toy us. let's go to jon fortt with a look at what's coming up on "squawk alley. >> david, we'll talk about delivering bits and atoms. the ceo of hp enterprises. the stock down 8% after earnings the ceo of ups joins us with the busiest weeks and months just ahead, that's coming up on "squawk alley. hop.

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comcast business. beyond fast. welcome back to "squawk on the street." another day, another fresh record high for the s&p 500. hovering near the best levels of the session even though it is just about flat. near best levels of the morning.

defensive groups like real estate and consumer staples are outperforming the overall market, but the energy sector has gains for the broad other market overall one of three sectors trading in negative territory in the course of the past month. among names leading energy to the down side, cabot oil and gas. that's despite another update for oil prices, trying to close higher the fourth time in five days underperformance, carl, in the energy sector. back downtown to you guys at the new york stock exchange. >> dom, thanks. a strong debut for alibaba in hong kong shares jumped almost 7% in the world's largest listing so far this year. company raises more than $11 billion in the offer, which comes despite unrest and pro-democracy protests in hong kong not the number, david, some were thinking they might get, but the fact they pulled it off in that

town given the year they've had says something >> given unrest, it was questionable they would try to list at this time, despite that they wanted to create a local listing. what's interesting about alibaba, it trades here and has for years. most consumer basis located the -- base is located there. those are perhaps the constituents for the shareholder base that no business is doing >> intelligence group and wisdom of crowds. meantime, the most watched regular season nfl game in over a decade patriots turning that 13-9 win over the cowboys sunday, game with the highest ratings since '07 look at games broadcast on fox, it is the most watched since 1996 coming a couple of weeks after

kaepernick back in practice, trying to get back in practice. >> i watched i actually had that on in the house. great game >> the matchup was interesting. >> always goes to show the power of the nfl when you think about stocks, think about companies, what the next negotiation will be like for rights cbs always comes into the conversation, fox of course very important, abc we know has said it is going to compete as well and what will amazon or facebook or any of the other companies consider trying to do. >> also wasn't that long ago we talked about whether nfl had peaked and we talked about declines in ratings, declines in viewers, declines among younger people, younger viewers. interesting to see the come back >> speaking of amazon, pivotal got the target from 2500 to 2100, keeping a buy. interesting piece out of pivotal in the past few minutes. when we come back, exclusive with the ceo of ups ahead of the

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