as there there is a fear of another wave of covid-19 fears. sneaker success, we'll talk to a company that wants you to treat footwear in your closet like the ultimate investment it's monday, october 19, 2020. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we are seeing green arrows this morning when it comes to the u.s. equity futures. dow futures up by 127 points the nasdaq up by 91. the s&p up by 16 this is a big deal it's been a strong four weeks for the market strong october, but you're looking at four weeks in a row that we've seen gains for the nasdaq even though it was down 4

out of 5 segs laeout of 5 segs s out of 5 segs laessions last we. a lot of that potentially around the possibility of vaccines. we'll talk to dr. scott gottlieb about that pfizer already saying that it's made several hundred thousand doses of its vaccine they could have 100 million ready by the end of the year if they receive approval. let's look at what's been happening in the treasury market this morning as well last week you did see those treasury yields under some pressure this morning back a little higher yielding 0.774%. >> thanks, becky busy day ahead let's look at the "squawk" planner. a group of oil ministers are meeting today. they'll be talking about the weakening demand and increased output by some members immediate action is expected on the economic front, fed chairman jay powell will be

speaking at the international monetary fund meeting at 8:00 eastern time then we have some earnings news. ibm, the big name to watch it's going to be reporting quarterly results after the bell of course the big story right now is in washington, joe. >> yes average blue, used to be big blue, medium blue. maybe medium blue is what we call it. any way, we will report those numbers. the top story out of washington, house speaker nancy pelosi is calling on the white house to reconcile its remaining differences on a new coronavirus economic stimulus package. she's giving the trump administration a new 48-hour deadline if it wants a bill by election day in an interview yesterday pelosi said she's optimistic even amid all the back and forth pelosi spoke with steven mnuchin for more than an hour about the package over the weekend >> what's with the 48-hour deadline by the way, does that start today or did that start

yesterday? it's going to be done by tomorrow >> i don't know about deadline i was thinking about the hour-long conversation that's a long conversation >> what that might be? >> i don't know the last time i spent an hour talking about anything you know, i -- >> we spend three hours every day talking about stuff. >> we do but not on the phone not on the phone for a solid hour i get they both had land lines that would have been dropped eight times. is your cell service any good? constantly getting dropped i have to walk around different parts of the house >> where do you live >> you know where i live you've seen the gates. you talk about them all the time the gates, the hounds. release the hounds remember -- was that -- mr. burns. >> i remember release the -- >> montgomery burns said release the hounds i just wonder, i guess there's a lot to talk about.

god, they had a lot of conversations. it's got to be hours and hours and hours by now between mnuchin and pelosi you know, i don't know >> it's minutia that they're talking about. it's the language they're really talking about. i think even in the testing we had mnuchin on the program on friday he said they would say okay to everything they wanted but they're still arguing back and forth about the language, testing, may versus must recommended versus required. it's down to words like that that's why you end up spending an hour on the phone >> an hour all right. we'll try it so you really have no problems with your cell phone ever? they don't drop? >> sometimes if i'm in the long place, sure, but i organized my life like i hope others have tried to organize things in their home -- >> outside manhattan >> you don't say call me on a land line if it's possible and you -- do you have one in your home

>> never >> you don't have a -- >> never >> no kidding. >> i have a land line but never. i never pick it up >> did that work when you were in connecticut >> never pick up a land line never pick up a landline >> wow >> i need your cell phone service. >> he may have some type of double secret probation cell service like "new york times" -- >> it's about setting up the phones the right way >> there is some bandwidth still left do you have the sorkin bandwidth because you're an ace reporter >> there's some important news out of china the only thing i'll say if you don't have good cell service, get yourself a mini tower. you can probably get one for 150 bucks, you hook it up to the cable service and your wireless service on the phone will be perfect. we should talk about china >> okay. >> china's third quarter gdp grew by 4.9% compared to a year

ago. that was slightly smaller than the 5.2% gdp growth economists had expected retail sales in china rose by 3.3% in september compared to a year ago >> then in corporate news this morning, let's tell you about american airlines, planning to return boeing's 737 back to service in late december, pending faa approval american scheduled a daily flight between miami and new york from december 29th to january 4th. it's already on the calendar >> do you have a mini tower? >> i have a mini tower not in new york city i don't need it, but in connecticut i need a mini tower as it happens. >> so you got a mini tower no wonder -- you act like it's just normal -- >> it's not called a mini tower. it's a -- it's not called a mini tower. it's like a mini cell thing. >> some portable thing you move around >> you can get one

they're available to anybody 150 bucks, 200 bucks, they're available. >> 150 bucks, 200 bucks, then your phone will work $2,000 phone >> you don't have one, do you? >> i don't, but i'll look into it >> a mini tower that you move around with you in the minivan >> i don't have a minivan. never got the minivan. coming up, a new report on wall street bonuses. first as we head to break -- check out this morning's biggest dow leaders and laggards you're watching "squawk box" on cnbc at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes?

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welcome back to "squawk box. we've been watching the futures this morning on this monday morning you will see some green arrows once again. it has been a strong number of weeks for the markets. the s&p 500 and the dow both up for the last three weeks in a rowf row. nasdaq up for four weeks in a row. the nasdaq is leading the way this morning, up about 80 points for the futures. dow futures up by 110. s&p 500 up by 13 we have to talk about this headline employees of big banks, many of

whom are our audience and if they're expecting big bonuses, they may be big bow nunbonuses. big banks are trying to manage expectations and one of the way they do that is putting money aside for loan losses in a surge of defaults. if you're an employee two years down the road and some of those provisions get pulled back or don't get used, whether that will change the bonus structure, if you will, not in 2020 but in 2021 joe? >> okay. back to the markets now and what investors should expect leading up to the election and then just after. joining us is ed mills, washington policy analyst at raymond james. your viewpoint at this time is that the relatively calm and actually the markets seem to be in an upward move.

not -- certainly not volatile. the vix, et cetera you say that the market is starting to think, which may not be consensus, but the market is starting to think we'll have a clear winner on or around election day that's what is most important to the market at this point >> joe, you're right so, a couple weeks ago people were really concerned especially as the race was tightening up it seemed going into the first debate really the question was is when will we know the winner? we've been focused on how exactly will all the votes be counted. so as of this morning, florida is already counting all of their absentee ballots starting this week arizona, colorado, north carolina will start counting their ballots. on election night what we'll be looking for is whether or not we get a clear indication of which direction, in this race has fallen we talk about these states as

swing states because they generally swing altogether if there is a polling error, that's generally highly correlated maybe cnbc or the market or the news stations have not called the election but the market might start calling the election as early as election night on november 3rd >> right i wonder -- i don't know how you would interpret what the market is saying. if it goes up on election night, what is that telling you >> you know, when i look at this, what i've told clients at raymond james, there are headwinds and tailwinds regardless of who wins as it relates to a potential blue wave that is more stimulus than kind of the status quo. if donald trump is re-elected, you know, that is faster stimulus i do think that the market has largely been trading on a lot of stimulus headlines so from that perspective, you

know, there are kind of not traditional knee jerk reactions that we should have to this election and i think investors are taking a much more nuanced look to this election than previous years >> one of the things that struck me, you think the swing states seem to move the same way and that polling error would be across the board with the swing states i don't know what you're saying about whether that -- i think biden is still ahead i don't know whether polling error means you think he's more ahead or if it's closer. then i do see when you talk about what to expect you give equal time to a biden win as to a trump win. as far as underappreciated risk to the market, you give equal time to a biden victory and a lame duck trump victory. so i'm not gleaning anything from what you're saying here you don't know, do you >> no. so we right now think that joe

biden is in the lead what i'm talking about when i talk about swinging one direction or not is that when we go back and talk about post-up states if i give you eight toss-up states, you should be able to come back to me and say all right, ed, you said 50/50 probability this state would go one direction or another what happens in elections is you go back in these toss-up states, you go 80%, 90% in one direction or another when we look at 2016 there was polling error in the state level results. so i'm looking at the state of north carolina, one of the closest states when we look at polling. and if it is clear on election night that joe biden has won north carolina and the senate seat has gone to the democrat i think it's an easy call to make that it is a blue wave if donald trump has clearly won that state, i think that there will be more conversation on

whether or not the polls were wrong. ultimately we are having to see if there is that hidden trump voter out there. right now the polls would have to be more wrong than they were in 2016 for that to impact the outcome. but i think there's a lot of questions by investors on whether or not we will see that repeat and so i have to address that >> ed, appreciate it some of the predicted things are changing a bit we have the 17th -- what's today? the 19th i don't know it's october, right? >> yeah. i think most of the predictive markets are in the upper 60s for joe biden and kind of it doesn't always add up to 100 there's the high 30s to low 40s for donald trump in the betting markets right now for the election in the senate, it's about the same for the democrats

>> you have not looked recently. it's 59/6 on rcp average to 40.9 that's a long way from the high 60s. if you talk to your clients today -- real clear politics predicted average. 59.6 to 40 -- >> i looked this morning i think we get somewhat different predicted markets. >> the other one is actually -- that's the straight predicted market 65 to 39 >> that's what i was highlighting yes. >> all right ed mills, thank you. >> thanks. 15 days. two weeks from tomorrow, joe, election day coming up, whensneakers ar more than what you wear just around the block we'll look at company taking shoes to the new investment level. and oil prices this morning, there's an opec meeting today.

wti recovering at $40.60 a barrel stay tuned, you're watching "squawk bo ocnx"n bc

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with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. as people are stuck at home and stores are not a favorite place for people to be, one beneficiary is global resaler stockx >> there's a lot of sneakerheads out there. a lot of people are going online to express themselves in a way that you just can't do any other way with sneakeres and other high-end footwear.

as stores closed and in-person shopping ground to a halt this spring, consumers moved online one big beneficiary, secondary marketplace, stockx. >> we were surprised by what we saw as in may and june and july again unprecedented volumes in the platform >> valued at $1 billion, stockx says global sales came in three times higher during the pandemic than the year before >> sneakers as a category outperformed the market. when you look at the returns if you were in the asset class of sneakers we have other categories in the market like puzzles as a category has grown 600%. >> for sellers like vernon simms, selling goods has become his full-time job. >> the past couple of years i'll do 2 million, $3 million in sales a year >> when covid first hit he was worried about his livelihood he feared with stores closed down his supplies would dry up

first. >> at first it was a little scary. you didn't know what was going to happen. personal friends of mine had gotten laid off. they lost their jobs but like a month after that i had the biggest month i've ever had, the month after that was bigger than that >> we're seeing a bit of the consumer reaction of just wanting access to something that provides happiness and joy and for many it is economic opportunity. >> reporter: analysts estimate the global resale market currently valued at $6 billion could reach 30 billion by 2030 as the category expands, so does the demographic of users >> post-panndemic, people over the age of 45 grew 30% with the digital divide being overcome, we are seeing growth in those consumers on the platform which is exciting >> year to date the average selling price of a sneaker is

$60 a pair nike has the top five best selling sneakers this boom in the resale market points to people investing in an experience during the pandemic, something they can enjoy, collect and look forward to the day when they can leave their homes. >> frank, it's an amazing business i remember visiting them in detroit a couple years ago seeing how the whole thing works, how they check to make sure the sneakers or the handbags or the watches are real is something to behold the question i would have for you is how -- this is the question i had for the company for a long time. how expansive do you think they can get in terms of other types of collectibles? you mentioned one of the collectibles they're getting involved in now that's expanded during this period but shoes and sneakers still are the game do you see a day five, ten years from now when there's all sorts of other things or is this a specific niche area?

>> i do think sneakers >> reporter: definitely a niche category a lot of us kind of enjoy not only the styling but the idea that they're practical and some of the branding. the company said they have seen growth in watches, puzzles, apparel that compliments the sneakers while i think sneakers will always be the core business and dominate what you think about when you talk about stockx or g.o.a.t. or stadium club, there is growth for some other categories the question is if and when the economy reopens will we go back to experiences and really getting out and doing things like taking trips and stuff? that would take some of the consumer discretionary dollars away from this category. >> all right frank holland, appreciate it are you wearing jordans right now? >> i'm barefoot right now. i'm working from home. >> i never kept mine clean >> i have tons of pairs. i'll bring in a pair, we can compare our collections. >> one of the things they do to make sure the product is real is

they smell it. i don't know if you know about this there's a smell test so when the shoes come in to make sure they're not counterfeits, it matters what kind of glue has been used on the shoe and how they smell. i don't know some people might think that's a little bit of a tough job. coming up, we'll talk about a lot more on "squawk" later becky, what were you saying? >> i know a tougher one. when i was at the "wall street journal" i talked to one of the guys who worked in the victoria's secret factory whose job it was to sniff the stuff that was sent back to victoria's secret to see if it was okay to put it back on the market. >> andrew gets his tommy johns, i was afraid to go there >> i talked to the guy who did

it i used to cover victoria's secret at the journal. i was like you have to be kidding. i went and talked to the guy >> excellent excellent. there is a job for that. okay excellent. >> there is. >> my lips are sealed. okay when we come back on the other side of this break, this morning's headlines including fedex and u.p.s. they're throwing red flags about commerce and this morning we're in the green. maybe that's based on some of the growth out of china and which we hope portends for us if we can get our act together. dow up about 100 points right now. as we go to break, look at some of the biggest nasdaq winners. you're watching "squawk" on cnbc

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good morning you need something to pick you up for a monday morning? some stories are front and center ant group getting the okay for the hong kong part of its planned $35 billion dual listing. the fintech giant is 30% owned by alibaba and is looking to list in shanghai and hong kong. twitter blocked a tweet by president trump's top health adviser. the move came after he said face masks were ineffective in preventing the spread of covid-19 twitter said it violated its policy against spreading false or harmful information. fedex and u.p.s. told some of their largest shippers that most of their holiday capacity is spoken for, this is according to the "wall street journal. let's look at the u.s. equity futures at this hour. they've been higher all morning long the dow looks to be up by 98 points the s&p 500 is up by 12. and the nasdaq up by 71.

joe? >> the nasdaq closed down on friday i think the s&p -- >> it was down four days in a row. >> yeah. yeah >> it was up for the week but down tuesday through friday. kind of weird. >> when you say stocks are up or down, it's becoming less and less -- it's not a moneymonolit coming up, dr. scott gottlieb did you see the cover of the "journal"? i think we're almost allowed to go back to europe. but aren't covid cases rising in europe that's paris those people -- it looks like -- that looks like -- there's a lot of people there. all of them -- there's no social distancing it was weird to me when i thought wow, we're reading about europe >> paris is going into new lockdowns. >> what is that? what is that

i don't know >> can't catch covid in the day they say >> seems scary to me that so many people are in one place. as we head to break, here are some of the biggest premarket movers stay tuned, you're watching "squawk box" on cnbc

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welcome back we are indicated up, green across the board the dow up 105 nasdaq up about 78 s&p indicated up by 13 cvs wants to hire 15,000 workers to prepare for an expected rise in what they say will be more covid and flu cases this fall and winter more than two-thirds of those will be full and part-time licensed pharmacists they have hired about 76,000 full and part-time workers since march and has more than 4,000 drive-through testing sites. and eurofins received

approval for their at-home nasal testing product. there's a self-collection kit and the person receives an email about the results 24 hours after the sample has been received we've been doing a lot of testing in our house recently. kids have to do it weekly now. we have to take the stick, go up the nose with it put it in plastic, they take it to school the next day >> they're going to school every day now? >> yep every day. five days a week >> mine are, too, but they're not doing testing. >> i don't understand. it's a parochial school, catholic school in new jersey. one day a week one day a week it's tough it's tough, not for us i love having them around. >> joe, it depends i should clarify, for the high school they're going a couple

days a week. for the younger kids they're going five days a week half days. high school they figure they can do better remote, for the younger kids it's harder that's why in our school district it's different. >> it's sad. you know, i want it to be safe and i worry and i know about immune systems and young people and you still worry, but just socially and everything else, senior year. it's like -- >> i know. >> it's just -- >> there's no good answers >> i'm worried about next semester do we know >> i know. no we don't know about the fall of next year. let's try to get some answers. we have somebody who can help us out on that. at this point the u.s. has recorded more than 8 million covid-19 infections. joining us right now with his take on where we're headed is dr. scott gottlieb, former fda commissioner, a cnbc contributor and serves on the boards of illumina and pfizer. he has a new op-ed out titled

"where do i go to get my covid antibody cocktail. let's just start off with the state of play on where things stand. we know that the cases are going up again you heard what we were just saying with concerns about schools trying to figure out where we get back to these levels at the same time i saw some good news over the weekend. it looked like pfizer has already got hundreds of thousands of doses of its vaccine ready to go so that it can start getting those out as soon as it receives approval if the tests come back and show it's safe. also saw that astrazeneca's oxford vaccine looks like they're planning on having that go available potentially by christmastime. tell us where we stnand. tell us how we should feel about this >> starting with the vaccine i'm on the board of products and advanced development if these trials are demonstrated to be safe and effective, you

will see emergency use authorization filings probably late november. it will take the fda from two to four weeks to review those applications if the fda authorizes those vaccines, it will be for a select population, the elderly and high-risk. it will take two to four weeks to vaccine sate that population. then they'll have to wait two to four weeks to get a second dose. they'll have to wait a few weeks after that second dose in order to have full protective immunity we're looking at a scenario where the first tranche of people to get vaccinated, which is the elderly population are not going to have protective immunity from the vaccine until february or march. we'll have to get through the next wave without the benefit of protective immunity from a vaccine. it looks like we're entering a difficult period right now cases are accelerating around the country. there's not going to be a national shutdown. there's no therapeutic intervention that will turn the

tide short of these antibody drugs which will be hard to distribute the vaccine really is not going to start to have its impact until 2021 so we need to look at the fact that we'll face a difficult situation. we'll get through it we're probably in the seventh inning of the acute phase of this pandemic now. the hardest part is probably ahead. >> so when you hear things like what happens with school, and i know the elderly population is not going to have something available until february or march, it will take longer for kids to get anything available because they have not started the testing on them yet or they're just in the early stages of that, right >> that's right. the vaccine trials are testing now 12-year-old and 13-year-olds and above, there's amendments to start testing down to 12 once you get below 12, you have to formulate the dosage. the current dose may be too potent for a younger child

so reformulating the vaccine for a child younger than 12 or 13 will require new phase one and phase two testing. that's a long way off. the reality is what you want to do is get the vaccine out to protect the population that's most vulnerable and at risk, get enough people vaccinated that you can create some semblance of herd immunity. the children are not key vectors of this virus in the same way they are with flu. it's not pivotal we vaccinate the kids, they're not the ones causing the community spread they're vectors, but not on the same order as they are in other disease settings that's what the evidence does show >> wanted to get your reaction to the tweet by dr. scott atlas, adviser to the president saying that masks don't work and then twitter's decision to take that tweet down >> look, i think we lose sight of why we put the mask recommendation in in the first

place and why cdc was willing to recommend cloth masks, it wasn't to provide you as an individual as protection, it was to protect other people around you in case you were an asymptomatic spreader masks cut down on the propensity to allow respiratory droplets. if you have coronavirus, and you don't know it shg, with a mask n you are less likely to spread it a cloth mask won't protect you all that much. it's going to provide some benefit but not a lot. if you wear a procedure mask, that's going to afford you a better level of protection, about 67%. if you wear an n95 mask that will afford you good protection if you can wear that consistently so, if you want to protect yourself, the quality of the mask does matter >> just to clarify then, are you telling us that -- telling

viewers they shouldn't wear a mask are you in the camp of dr. scott atlas? >> no. absolutely not everyone should wear a mask. if everyone wore a mask we would dramatically cut down on transmission of coronavirus. what i'm saying is that people are arguing oh the masks don't protect you. the masks do protect you first of all i want to be clear about that. the reason why we are asking people to wear masks is not protect the individuals, it's to protect other people from you in the event you're an asymptomatic spreader if you want to protect yourself with the mask, the quality of the mask does matter cloth mask does provide some protection not only will that provide you with protection it will protect other people from you. that was the original purpose of trying to recommend the use of masks. if you want to afford yourself a higher degree of protection, quality of mask matters. try to find a procedure mask if you can get one, try to find an n95 mask. masks work, they protect people,

most of all they protect other people from you in the event you have the virus and you're asymptomatic and spreading it. >> scott, let's get to what you wrote about in the "wall street journal" today, that's the idea that there is not going to be enough of these drugs or these antiviral cocktails or any of the things you could use to try to ease covid when it hits how do we figure out who gets what i mean, it seems like if you have money, if you have an in, maybe you're at the top of the list is that how it's going to work >> i hope not. i think the challenge -- these antibody drugs can be a bridge to a vaccine we've been saying this since april or may we won't have enough supply unfortunately because we didn't make the right decisions back then to ramp up production the companies have done good work trying to ramp up production, but we don't have a deliberate strategy. the biggest challenge right now is for these antibody drugs, you

have to give them when someone is first diagnosed before they're very sick, ideally before they're symptomatic so they'll be authorized for vulnerable patients, older patients initially because we don't have enough drugsment we'll have to ration them, and you'll have to ask somebody who is not sick to go into an emergency room and get an infusion that's the government plan to deliver these inside an emergency room if someone has coronavirus and they are going to an emergency room to get an infusion, answer tha chances are they are in a place where there's lots of spread mind you, patients are reluctant to take injectable drugs to begin with people perceive taking an infusion as riskier. i think there's going to be reluctance on taking these drugs. they should be distributed at home we should use home infusion to

administer these drugs the othering that with bringing people into the emergency room, you're bringing covid patients to the emergency room, you're asking someone to take them to the hospital you'll expose a lot of people in the process versus sending a trained nurse into someone's home to give them a home infusion and that nurse can protect themselves with an n95 mask i think we will have to rethink the distribution strategy. >> scott, quick -- returning to the mask for a second, quick question so i had -- years ago, 3m sent me a couple of n95s. i had them ready to go i had them since march i've been wearing them, two of them every day i alternate i used to microwave them for a little while -- not microwave them, put them in 210 degrees in the oven, you know, to kill the stuff. i stopped doing that and now i just -- i still wear them. do they last forever that little thing in front am i still at an n95

they're not looking too good to people who see me. you know, they're -- >> i would -- i would probably swap those out the other problem, you may have dona denatured the mask they're available on the company's channel. >> but are they working -- it's still working. i'm saying it's still working. it's got the thing i feel it going through the front end. >> treat yourself to a new box, joe. >> all right i'll treat myself to a new n95 my birthday is coming up >> i think you deserve it. you're in that age group, joe. >> really? how do you know that you don't know that. look at my hair. do i look like i'm in that age group? no, i do not we could be -- we could have been in high school together gottlieb don't give me that crap. that's my story. >> scott, thank you.

we will talk to you soon when we come back, the ceo of financial wellness app acorns will join us with a new project aimed at helping people reach "sre gls quawk box" will be right back.

welcome back to "squawk box" this morning, financial wellness app acorn is announcing an initiative to help customers reach their career goals joining me is noah kerner, he's the ceo of acorn nbc universal, comcast ventures

are investors in this company, but it's great to see you with this announcement today. not just to help people save money and invest money but to create some new job opportunities for them as well, noah. >> how are you, andrew >> i'd like to see you in person, but i'm good how about you? >> good, good, same here, man. hope all is well >> so help us understand what you're trying to do here you've done some survey work of the people on the acorns platform and a lot of them trying to look for either other work, either what people call side hustle work because they don't think they have enough money to make it at the moment or people looking for new jobs entirely >> yeah, i mean, we've seen both obviously, so statistics say that a third of workers today have a side hustle alongside their current employment, and 1/5 of young people have started a side hustle.

30% don't know what kind of side hustle they could have and then you have statistics like 33% of americans dipping into their savingin savings or retirement account to pay bills. what's the number one people don't have enough money to save and invest it's because they don't earn enough we asked a question, why don't financial services companies and banks get into this space. why don't they help people earn income when it's really the foundation of your financial life we said this is the perfect time to do it we built job finder, we're offering millions of job opportunities, remote opportunities, part-time opportunities, side hustles to our customers and in a few weeks we have opened up a hundred thousand job opportunities for our customers to date. >> so walk us through, what kind of jobs are we talking about everybody wants obviously passive income, if they can get it, but what kind of side hustles are on the platform? >> yeah, you're talking about everything from doing surveys at home to being a lyft driver to

renting out your place amazon workers we have over 100,000 job opportunities with amazon, essential worker jobs, medical jobs you know all the kinds of jobs that can be really relevant to people right now, and also stuff you can do from home, from the comfort of your home where you can make extra income. if you have a full-time job or don't. >> so give us an example are there any of the amazon jobs, for example, jobs that can be done from your home or jobs in a warehouse, jobs where you have to go somewhere >> both, actually. so there's jobs like mechanical turk jobs where you can do work online and things like that, and there are jobs where you go into amazon and work full-time. but there's a whole host of things you can do from the comfort of your home and make extra money. with some of the opportunities, we invest into your acorn account as a reward for taking it on, so you get a double benefit there. >> real quick because we have to

run, are people using your platform, we have seen the rise of robin hood and lots of people trading. you have focused on the savings idea but people can obviously invest are people doing more of that now? >> yeah, i mean, i think there's a lot more going on. there's a bunch of ways to invest today you can round up spare change into a diversified portfolio you can set up a retirement account. you can start investing for your kids that happens easily. we're seeing a lot more engagement, and during this time, we're happy to say we have seen much less churn than we would have expected and withdrawal rates remain steady they are listening to the educational message, stick with it, stay the course, and every downturn ends in an up turn. >> noah, it's great to see you we appreciate you joining us it's a great project, and we should let viewers know if you want to register for acorn's career day, you can do that, october 29th go to acorns.com/careerday, and a disclosure, our parent company, nbc universal and

comcast ventures are investors in acorns. we have two big hours ahead, we're going to head to washington for the latest on the stimulus talks house speaker nancy pelosi giving the white house a new deadline stay tuned, you're watching "squawk box" on cnbc

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the markets keeping close tabs on the race for a virus vooen. we'll g vaccine. we'll get you ready for the trading week skprchg. we have an update on the latest from washington that's coming up. and a christmas present coming for boeing. american airlines plan to fly the max in december. we have the details straight ahead. the second hour of "squawk box" begins right now ♪ ♪ >> good morning, welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures on this monday morning we have some green arrows to show you

dow up 140 points, nasdaq looking to open 84 points higher the s&p 500 up about 17 points, possibly on the back of stimulus news, joe. possibly on the back of some of the good news out of china and what that may portend for us if we can get there. >> yeah, below -- china was a little bit below obviously the recovery looks firmly entrenched. i always like to read the different financial web sites and how they characterize. so the futures are up this morning, and the headline was as traders eye the covid cases rising and as traders eye so that way you don't have to say one way or another it's just these are the things that are happening and the market is eyeing the things that are happening and it's either up or down, and i really have no idea i love it, though. it's great house speaker, nancy pelosi sending a hard message to the

white house. you've got 48 hours to get something done around taxpayer stimulus, ylan mui joins us now. i don't know about stimulus with the markets anymore. it used to mean everything now we're up, and i don't know, are the prospects good they don't look good. >> reporter: well, we're eyeing the prospects of future stimulus, joe. so this deadline is technically going to run out tonight but as pelosi put it over the weekend, much work remains one of the many hurdles in these negotiations has been around the language over testing. now, the white house had said that it had largely agreed to democrats' demands on this, but now pelosi is saying there are some unacceptable changes, including on measures for minority communities in a letter to her caucus, pelosi also said they are still at an impasse over child tax credits, state and local funding and even the scensus the treasury secretary and pelosi are scheduled to talk on

the phone again today. meanwhile in the senate, republicans there are charting a totally different course they're going to be taking two votes this week. the first vote on coronavirus relief will be on a stand alone measure to extend the payroll protection program for small businesses on wednesday they'll take another vote on a broader $500 billion package neither of those measures are expected to go anywhere. and in a statement, majority leader -- senate majority leader mitch mcconnell said it is heartless for democrats to continue their total blockade of any aid unless speaker pelosi gets her way on countless non-covid related demands. even if pelosi and mnuchin do strike a deal, the president would have to strong arm senate republicans to pass it, and it's not clear he has the time or the political capital right now to do that. back over to you. >> so there's not chance really, as you said, of the senate

deals, and then even if mnuchin and pelosi do come together, unlikely mcconnell could get the senate so you wonder why people sitting at home are like, i mean, why bother with some of this stuff just so you can be on the record of saying we did this even though it has zero chance. normal people would be frustrated. >> reporter: i think lots of people are frustrated. i think even abnormal people in washington are frustrated, joe i think all sides do need to show that they're trying, that they're at least still at the table to try to hash this out, but, you know, the treasury secretary said last week that the prospects of getting something done before the election were basically nil, so he had kind of given up. now you're seeing pelosi set this deadline to show, okay, you know, she's tried her best, and now she's going to give up on getting something done before the election, and the person who's left holding the short end of the stick is the american people who are waiting for this

relief but there's a lot of frustration, but no movement so far in washington. >> okay. thanks we have a takeover deal just announced in the energy sector c concho will receive 1.46 conocophillips shares. david faber had reported last week that the two sides were in late stage talks looks like that was true, and conoco's ceo will join "squawk on the street" at 9:45 eastern this morning becky. >> you know, it's kind of interesting watching the stock reaction to that today because concho shares after david had reported that last week had already risen. that company is a 9 1/2 billion dollars company. this is a $9.7 billion deal, and you see the move this morning, up another 11%

i'm not sure what that's signaling, conoco shares up $9.45. investors are paying close attention to rising coronavirus cases along with stimulus talks. mike santoli joins us with more on this. i'm not sure how or why to explain the rise in the futures this morning you're just over two weeks away from the election. you're seeing a rise in covid cases but there are other things out there, like the hunt for a virus vaccine. >> markets always watching all of it, and i think one of the ways to explain the markets drifting a little bithigher is we have been here before we were higher on friday, anything that happened on the weekend doesn't have to be the cause of what's happening this morning. the year-to-date chart of the s&p 500, 3515 midday friday. 3550 earlier this week 3588 back on september 2nd the point being we have been kind of traveling this territory for a little while right now, certainly at the upper end of the range. i do think at least having that

prospect out there of potential fiscal help sooner or later is in the back of folks mind. we had the fed, we have a lot of the known risks have been chewed other, including the election. that might be one explanation for what's going on. one of the sub stories is also this value stock trade, inches in the right direction look at folks saying there's some significant thresholds here that we might be approaching now. by the way, this isn't purely financials in energy people think of it as cheap stocks health care is the largest sector in the s&p value. a lot of big pharma. so this would probably be a positive thing if the market were expecting near term stimulus you would probably see the value stocks maybe get a little bit of a lift because of some of the financial holdings and other stuff in there, but it's not necessarily a pure play on just the cheaper stocks one final note the market might think on the

deal, conocophillips shares might be positively impacted, in which case it raises the value since it is an all stock deal and raises the acquisition. >> mike san ttoli, thank you vey much q health receiving $480 million from the department of health to dramatically ramp up production of hand held diagnostic tests of covid-19 it was also used by the nba. the company's ceo is going to join us next. join us next. and more on the marketat cae investing is hard. if you're concerned about the environment and climate change, mohammed mohammed el. more on "squawk box" after this. which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good.

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welcome back to "squawk box," cue health receiving $480 million from the department of health and human services in collaboration with the department of defense to ramp up production of its rapid diagnostic test for coronavirus. the company plans to increase its production to 100,000 test kits per day by next march the ultimate goal of providing 6 million tests to the federal government those tests were also used by the nba in their bubble.

joining us right now is ayub khattak, he's cue's health cofounder and ceo. good morning to you. i want to talk about testing, the state of testing and where we really are. i just read it, you're not going to really have testing at scale for your company until march we're walking into this period, dr. scott gottlieb has talked about being a very difficult one already in the next two or three months in terms of what you're seeing, not just in terms of your own production and ability to produce, but other people testing, where do you think we really are, and what did toes tt marketplace look like over the next six months? >> so i think that the testing team at the white house has done a good job of really ramping testing from, you know, nine months ago there was almost none to you're seeing over a million a day testing overall. so i think it's come a long way, and there's different categories

of tests and the laboratory tests to the rapid antigen test, and we're in that other category of fast molecular tests. so i think things have really dramatically, you know, ramped up and improved over time. and i see the need for testing as being a longer term situation so the best that health and human services are to increase and be cognizant of the fact that there will be testing and we want to increase the infrastructure around testing so that we can have, you know, a protected domestic supply of very good tests. you know, our test is very accurate, and comparable to lab quality, and that, you know, that's an important thing to -- a capability to add to the armament. >> you just made a comment about we're going to need testing a long time into the future. obviously there's a whole effort and hope that we're going to get

to a point where we have vaccines at scale. some people are talking about that in the second or third quarter of 2021 at scale we'll see. what do you look at in terms of testing post vaccine, meaning do you believe that employers are going to be testing for the next year, two, three years when you go into a stadium, do you imagine there's going to be testing. if you go on to an airplane, do you imagine there's going to be testing. once the vaccine comes that all of this testing goes away? >> well, i think that most experts don't think that the vaccine will be a silver bullet. it will obviously improve the situation but, you know, it's important to not entirely rely on one mode of defense against covid. you know, the virus has been a very tricky one over time. and to be able to have, you know, additional weapons in the

fight is a really important idea and so i do think that testing will be part of a very long tale of covid, with or without a vaccine, and i'm sure we'll have a vaccine, but most people do not think it's going to be like a sterilizing vaccine, and so you're going to need testing for a long time. so yeah, i do think there will be testing, widespread for organizations, including for sports venues, including for flights, so i think that's going to be something that's persistent in the future for sure. >> what do you think you can get the price down to? meaning to make this economically, i imagine if the tests are going to cost anything more than 5 or $10, a lot of companies walking into an airport, walking into a stadium, walking into certain places, if it's going to cost materially more than that, and you can't get the result in less than five minutes, it's going to be hard to make it work.

>> you know, when i was on the show here in the summer, i mentioned that our test price was going to be, you know, per test was going to be in the tens of dollars, and the reader is going to be in the $200 range. we have been able to really be close to that, and provide that test at that, you know, comparable price point to other point of care tests, and so that's what we're planning on sticking with, and you know, obviously government is going to get the best price, the function of them buying volume. and i think that, you know, over time, the test price could come down, but, you know, for a molecular grade test, you know, it's still quite a bit less costly than a laboratory test which can easily cost over a hundred dollars. >> what about the sensitivity of these tests? one of the big issues is you know well, and we saw the super spreader event at the white house just two weeks ago now,

there are people who are going to be asymptomatic who are not going to get picked up on the test initially but a day or two or four days later, it's why people are asked to quarantine, then it shows up on the test is anybody doing any testing work that would make you think they could catch these things at the outset or is that just impossible >> well, i think that, you know, in the public's mind, there's a dichotomy between the really, on the one hand, accurate but slow laboratory testing and on the other hand, we have the rapid test, which, you know, are relatively easy to use and deployable our test, we actually just concluded or the mayo clinic, rather, just concluded a independent clinical study of our tests compared to a centralized laboratory test using gold standard method, and we were able to perform very very comparably to the

laboratory tests, and that was on both symptomatic and asymptomatic people. >> so i think that the key message there is that, you know, what we're talking about is the category of both fast and really accurate and sensitive molecular tests that, you know, we're helping to bring to the market >> hey, ayub, just a quick question, can anybody get access or how do you do it, do you have to be affiliated with a school or workplace or somebody else that's setting up big testing. >> currently our authorization by the fd allows any authorized provider this is a point of care test, so any physician, you know, with a clear waiver can get this test our goal and our north star has always been to provide this test for home use we have been working with biomedical research advance authority the last two years developing the platform for home

influenc influenza testing, so we adjusted and added the covid-19 test so i think that the, you know, the progression there of being able to go from, you know, influenza testing to covid was great but being able to get it into the home is the next frontier, and that will make it more accessible still. >> we have to run but i have one final question, one of the reasons the government has been reticent to do home testing is because the results, it's unclear whether they would be effectively reported to the various states and communities, so that people know and they're able to keep not just a count but also then to do the tracing. has anybody come wup with a technological solution, and people have been willing to give up privacy for the only way to get results on your phone is it also gets delivered to the cdc

or your local state, and whether people will accept that? >> that's a really good point. you know, with our platform, the results are natively digital, so they get blue toothed over to a mobile device, and you know, we inquired about privacy testing, nfc, contact tracing type of technologies from google and apple that if this product ends up in the home, we would hope to be able to leverage in order to make a highly respective of privacy type of contact tracing happen so that, you know, you get the test results in your mobile device. it's been tracking with the nfc, in a privacy respecting way, and it's able to alert the people who you have been in touch with that, you know, there's a positive in their network. >> okay. ayub, good to see you. we appreciate the work you're trying to do and we look forward to following your progress thanks.

>> thanks for having me on >> you bet joe. thanks, andrew coming up, stories making headlines a number of items to watch this week that could impact your money. today you have the opec meeting and the nahb housing survey. an mts fda vaccine pelee on thursday, we'll be right back it's either the assurance of a 165-point certification process. or it isn't. it's either testing an array of advanced safety systems. or it isn't. it's either the peace of mind of a standard unlimited mileage warranty. or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned. or it isn't. the mercedes-benz certified pre-owned sales event. now through november 2nd. shop online and build your deal today.

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welcome back, everybody. a couple of stocks to watch on this monday morning. american airlines is planning a december return to service, pending faa recertification of the aircraft american will schedule a daily flight between miami and new york on the max from december 29th through january 4th and cvs health is planning to hire 15,000 pharmacy technicians to prepare for a jump in covid-19 cases over this winter, and to have sufficient personnel in place for an eventual vaccine rollout when we come back, the biden tax plan and what it means for high income earners ♪

when disaster strikes to one, we all get together and support each other. that's the nature of humanity. ♪ it has encouraged other people to take the time for each other.

♪ ♪

let's take a quick look at the futures this morning just smooth.

becky, i was told to do the futures, i see where the teleprompter is but i don't think we're going to go there. anyway, you can see we're up 116 points now on the dow jones futures. you have the nasdaq indicated up 75, 74 1/2, and the s&p indicated up 15. you might recall on friday we actually had a down nasdaq after all the averages were doing pretty well. the dow did manage to gain triple digits, the s&p was basically unchanged. we're in the green today we're going to come right back dealing with a couple of issues. trying to get senator heitkamp to go. but we're coming right back after a quick break. everyone wakes up every morning to a world that must keep turning. moving. going. the world can't stop, so neither can we. because the things we make, help make the world go round.

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under vice president biden's plan, people earning over $400,000 a year would pay a combined federal and state income taxes of over 62% robert frank is adding up all the increases and joins us with what it means for high earners in certain states. was that a misprint? what did i just say? i was just reading, 62%, robert? >> yeah, joe, let's look at that

number there were some nonpartisan studies out showing that biden's tax plan would indeed only raise taxes on those maekiking $400,0 or more and cut taxes on everyone else. top earners could face combined state and local rates of over 62%. let's break that number down on the income side on the federal side, there are two basic increases that biden is proposing, the first is a top rate going from 37 to 39.6%. and then you've got the payroll tax of 12.4% applying to income over $400,000. so half of that payroll tax is paid by employers, so you add those two changes together, and you get a new top federal rate of 45.8 percent. then you add the net investment income tax and other provisions and you get a total top rate of 49.6%. let's go to the state side on top of that. if you live in california, that combined rate would go to 62.6%.

new jersey would be over 60% new york state would jump to 58%. not too bad, but new york city residents, would see a combined state and federal rate of just over 62% now, with tax increases being proposed both in new york and california, those rates would likely go even higher. guys, back to you. >> okay. i thought i heard you say 62 okay thank you. thanks, robert beck >> can i ask one question of robert robert, before you go, would biden roll back some of the higher taxes or allow for those salt taxes that were unallowed in the last go around, and would that lower the numbers at all? >> these numbers that i have bake in a salt repeal, a repeal of the cap on salt reductions. here's the interesting news that

came out last week is that the salt repeal is no longer officially in the biden tax plan now, it was in an earlier version or earlier analysis. now it's not in there. the biden camp initially said we're going to repeal the salt cap. now they're saying, well, we'll work with congress it's not officially in the biden tax plan we know the democrats in congress will do anything to get that through and biden would approve it, but it's not in his current tax plan. >> so if you didn't have salt repealed, the numbers would be even higher than 62% >> that's correct. >> wow thank you, robert. >> for a closer look at the trump and biden economic and tax plans. let's welcome heidi heitkamp, the former senator of north dakota, the founding board member of the one country project and a cnbc contributor in fact her latest piece is on cnbc's invest in you page,

entitled personal health means getting health care right, and david walker, former controller general, now a professor at the u.s. naval academy and an author of the new book "america in 2040, still a super power? a pathway to success." i want to thank you both for being here, and in terms of fiscal austerity, these are messages i have seen from both of you in the past this seems like a tough time to get that message out it wasn't a message that people took to too kindly even in flush times. how do you go about getting a message like that across at a time like this >> becky, good to be with you. first, we have to do whatever we have to do to beat covid-19, and we will beat covid-19. that means we're running very high de high d high d high d high d high def sits, we are much worse than we were in 2012, for

example, and neither candidate has a credible plan to restore fiscal sanity. you have to raise revenues, you have to reprioritize, and reduce spending and you have to reform social insurance programs. if you don't do those three things, you won't solve the problem. >> heidi, when you hear what robert was just talking about, taxes going to 62% and higher on some people, you think that's a plan i mean, you have been in a position of having to deal with taxes on a local level, what would you be thinking right now if that was going to be your plan of action >> first off, becky, i never look at nominal rates. i think people always to nominal rates and say, look, this is what's going to happen look at your tax return. you're in a higher bracket but your effective tax rates are much lower after listening. >> not really. >> i would say i never want to hear anyone talk about how poor people don't pay taxes anymore because if you include fica, the payroll taxes in all of this, you're going to see higher numbers but you're also going to

see social security lend itself towards solvency, which deals with some of our fiscal issues so you know, let's not overreact to all of this the wharton study basically says that people between that even over $400,000 in gross income will actually only experience a 2.5% increase. now, i can't speak to what happens in states because that's going to be dependent on state policy, but as to your question on salt, chuck schumer has made this his hill to fight on, and so i expect that you're going to see state and local taxes once again achieve some level of deductibility on the itemized return the problem is that not a lot of people are filing itemized returns because of the doubling of the standard deductions i think the more critical part that i would like to have an answer on is whether they're going to extend those middle class tax cuts that were part of

the tax reform act in 17 >> what's your thought on that should they? >> i think they should i think that that was -- the part that could have gotten broad bipartisan support, and we're also looking at what we can do for working families, and part of the biden plan is extending those child care credits or child tax credits, which i think are so important looking at refundability, rather than just the credit if you pay taxes and getting that money in the low income brackets. this is a recovery that has been heavy appily favored for rich p, and bottom quartile has not done well, it's so important that we understand our economy is trickle up if you get money in the hands of people who actually need to spend that money, you're going to grow the economy and so tax policies should all be about how do we get our economy going again, how do we help working class families achieve their results, and that's going to

help everybody up and down the chain. >> david, we are looking at deficits that are greater than 100% of gdp for the first time i think since world war ii obviously right now is not a time that people worry about deficits we have heard that time and time again from both sides of the aisle, when you face a crisis, you have to do emergency spending ch wh spending when you're looking at longer term planning, what are the things that would concern you? >> we clearly need to do more on infrastructure, clearly need to do more on research and development. we're not spending enough with regard to investment, and we're spending way too much with regard to consumption. there is a path forward to restructure that and reprioritize that. we're going to need additional revenues we want to raise revenues in an equitable way. the tax benefit at all income levels it benefitted people in the top

1% more. you can't look at individual taxes, you have to look at corporate taxes. it's estimated that the corporate tax proposals by the v vice president will end up reduce k economic growth by 1.2% we have anemic economic growth we've got to be able to reprioritize spend more on investments, less in consumption and rationalize our social insurance problems where we have ten of trillions of dollars in unfunded promises. >> in terms of the biden program, historically, when you look at taxes on one side, and higher taxes, you think that that's going to slow the economy. what you're looking at in this program is that huge amount of spending on the other side it is a redistribution, and we can argue philosophically or id logically about what redistribution may do or not, but the question i would ask you is do you look at these programs

and say they're going to slow down the growth of the united states right now or do you think it's actually going to improve the growth of the country? >> you raise a good point. first, you can't just look at the revenue side we clearly need more revenues and we need tax reform we need a more equitable tax system, no question about that, and a simplified tax system. you've got fo loto look at the spending the vice president is proposing to raise $3 trillion in revenue, and he's proposing to spend about 11 trillion in spending. we already have a huge deficit, even after we get past covid-19. a lot of that spending will stimulate the economy in the short term we have to keep our eye on the ball, debt as a percentage of the economy. as becky mentioned we're going to pass the post world war ii record, unlike where we brought debt and gdp down dramatically, we're on a path to increase to

200% of gdp, and potentially more by 2050 that's third world nation status that's unacceptable, and it's time the politicians woke up and recognize that reality and do something after we get past covid-19 >> can i respond to that, yes, please. >> becky, can i just mention that post world war ii, the highest effective rate was 90% for taxes. if we're going to look at post world war ii, there's two ways we pass on debt and deficit, and i think one thing we're missing here is when we let our infrastructure go to pot, literally potholes, we are passing on a debt in a way we should not be passing on debt. i agree with david, if we can, in fact, make the right sn investments now, we can grow the economy. we also can be dealing with the infrastructure debt and deficit that we're passing on. so i think this is all going to be part of a huge negotiation

when this is all over. i think that throwing a bunch of money into the economy without thinking about where it's going is absolutely foolish, and i think that we need to actually make the investments, so i don't have a disagreement there, but i think that you've got to understand that infrastructure gone unattended to results in passing on debt and deficit to our children. >> heidi, you knew this was coming i'm not going to let you go without talking to you that day, heidi, it's good to see you. the new season of "fargo" is out. i don't know whether you've seen any of that. but, no, i was just going to make one quick point, and that is you're quick to say, and i guess i'll take your word for it, we don't really pay 62%, don't worry about it, but then you got to also say, you just cited the 90% eisenhower rates, rich people were paying like 2% of those if it's good for today to say there's deductions that don't mean 62.

you have to go back and realize no one paid 90% back then. you admit that, right, just say you behcha. >> you can't look at nominal rates, you have to look at effective rates when looking at tax policy >> okay. real good. all right. sorry. >> the effective rates, heidi, are very tied into whether people have loopholes or other ways of making money it looks to me like many of those loopholes would be closed it time around because they would be taxing on capital gains. they would make sure they're going after social security taxes, up and above the limits that it's on right now i mean, it seems to me that those marginal rates would be a much more likely marginal rate that people would pay if they're w 2 employees, not hiding it in other ways. >> yeah, i think take a look at

what happened with the heroes act, you saw them roll back the changes they made on the corporate side i expect you're going to see a pretty robust ability to include social engineering. >> why don't we have a straight tax people that doesn't let people wiggle around it with no loopholes in it? >> it's interesting. one of the proposals that hasn't gotten a lot of attention is the 15% alternative minimum tax on bookend. there's your flat rate tax on book income that no fooling around unless you're fooling around with your books. and the s.e.c. might have something to say about that. so, you know, it's a pretty interesting proposal it will be an interesting time what i really hope is that this time around there will really be a true effort to deal with bipartisanship, because then we'll get the certainty we need.

>> david quickly, i know you were trying to make a point there. >> yes, keep in mind, the top 1% don't make their income from wages. and payroll taxes are applied to wages, and so therefore there are plenty of ways to work around that, but you also have to keep in mind, the capital gains tax would increase significantly for people over 40%, and the deductions would be limited to the 28% tax bracket in the final analysis, i agree, the effective tax rate is what matters but neither candidate has a comprehensive plan to restore fiscal sustainability, and we should have a separate capital budget and a separate operating budget like most states, and we should focus on debt-t debt-to-gdp, not deficit, and the debt limit and other factors that have frankly failed david, heidi, i want to thank you both for your time i think this is something we're going to be discussing a lot in

the months to come i want to thank you both for being here check out heidi heitkamp's op-ed on cnbc, personal financial health means getting health care right. and "still a super power, a pathway to success" thank you both, andrew. thanks, becky. when we come back, we're going to get you ready for the trading day ahead, mohamed el-erian is next take a look at the futures now we are in the green this morning. we'll sort through why that may be when we come back on the other side of the break. vironme, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

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as we approach the 8:00 a.m. hour on the east coast, futures are still positive, till in the red across the board our next guest says covid numbers, you're watching closely this week, especially in europe, along with any progress on fiscal stimulus, and joining us now. adviser, mohamed el-erian, i was reading your latest op-ed and you've got a lot of homework you've got to analyze every single thing that the u.k. government is doing now in relation to covid, and i'm reading it, and you got to analyze all that, and you got to, you know, you got to look around corners now you got to do it there and here i'm just wondering, miss us yet

with what you're watching over there? >> so joe, first in the short-term, this market is going to go higher on the back of the stimulus hope, and on the back of the expansion in the fed's balance sheet. the longer term question is europe a leading indicator, and cnbc.com had some pretty frightening numbers. it shows that the case load in europe is up 44% from a week ago. and in the u.s. is up 16%. so the big question is is europe a leading instinct tdicator, an important because they're having difficulty dealing with it focus on the specific areas, don't do a national lock down, and it turns out that was analytically attractive is very hard to implement. >> there are differences, i think, and you're over there,

you would know better than us. how much more open would you say that the english society was than over here in the states i think quite a bit, wasn't it >> yeah, i think what's very different is people's behavior people here still do not wear masks, unless they are in shops. when we came over, we were shocked, honestly, to see how few people wear masks. so there's different people's behavior, and it raises something interesting, which is the behavioral aspect, not the health aspect, the behavior aspect, it is really hard to get people to focus on the collective responsibility for a long time. we all want to go back to our comfort zone we all want to go back to what's normal, but in doing so, we end up by complicating things quite a bit in terms of public health. >> right one of the other things, and we

have been talking about it again and again and again. and that is the risk of asset inflation with the fed, but you think the realization is now becoming more appreciated by whom, the fed, by the markets, by players, by you >> so i've been concerned about this for a while but i don't really matter. what really matters are the policy makers, and what we have heard over the weekend is some, i want to stress some federal officials are publicly saying we've got to worry about this disconnect of financial assets from the underlying fundamentals having said that, joe, i think that from recognition to doing something about it will take a long time, and that's why the market has basically shrugged this off the market says look at the balance sheet, it expanded by the most in quite a few months clearly the fed is all in. >> you know, mohamed i was also

thinking about, we just heard former senator heitkamp talking about the exacerbation of income inequality during the pandemic, and there's no doubt it reminds me of the financial kr crisis, when the fed marks up assets, left and right from zerp and you have to own assets to benefit. by definition, whenever there's a crisis, that's going to happen it's been worse in terms of health with covid. that's the other downside to the panacea of central bankers saving us every time >> so what's scary, joe, is this time around, it's not just a worsening o. worsening of the inequality of wealth it's the worsening of inequality of income as well. people who have been able to engage in the economy really are quite differentiated but the worst one, the one i

worry about most is the inequality of opportunity. i remember being struck by one number, which is in the school district, the second largest in the country, once they went online, they lost touch with 30% of their students. think about that 30% of students no longer are engaging with the schools. that is just the tip of the iceberg in terms of what's happening to the inequality of opportunity. between you and me, that's the one we should worry about most. >> real uick, a story in axios from our former colleague at nbc news, hans nichols, said some black lawmakers are demanding that joe biden if he wins taps an african-american nominee to lead the treasury, putting on the list, roger ferguson and melody hobson saying it would complicate prospects for the likes of janet yellen and sarah bloom ras kin. who would you like to see run the treasury, and who would you like to see the run the fed if

biden were to win? >> gosh, i mean, this is really hard, andrew, and i'm sure it's going to sound like i'm opting out but everybody you listed there would do a great job look, i honestly think signaling is important, so if everything is equal, you know what i would go for, i would go for nonmajority candidates but all of the names you cited there are people who would do a very good job. so i don't worry too much about whether we have candidates we do. the important thing is can we go beyond just monetary and fiscal. you know, you and i focus on monetary and fiscal but there's a third element which is as important which is the productivity, growth your previous segment was all about debt, and rightly, one of your guests said, it's not just debt it's debt relative to gdp, and growth gets us out of this mess, whether it's the mess of

insufficient draw ups or inequality. >> thank you, i appreciate it. i mean, we can come to you for anything now, we have both coasts totally covered. >> as long as we don't talk about my own stress. we won't talk about that. >> the only team without a win we got to go see ya. >> we stand out. coming up, house speaker nancy pelosi says she feels optimistic on prospects of a stimulus deal and has given the coile house 48 hours to rence differences. we've got senator chris coons coming up. (♪ )

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good morning, futures point to some nice gains this morning ahead of the monday open the dow and s&p 500 are on three-week winning streaks the nasdaq on a four-week run, but a lot of unknowns for investors to contend with, including a stimulus deadline set by the speaker of the house, and rising coronavirus infections we just passed the 40 million case count globally. and covid-19 has decimated the 2020 box office. how much longer can movie theaters hang on we're going to ask the ceo of the theater chain of amc the final hour of "squawk box"

begins right now ♪ ♪ good morning, and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures have just now pulled back to being up less than triple digits but for mos of the premarket session we have been up a little over 100, the s&p indicated up 12, and the nasdaq indicated up just under 70 points. we'll take a quick check at the yield curve. look at the 10-year, which you can see right now is at .776 thanks, joe. house speaker, nancy pelosi putting the white house on the clock. the california democrat calling on the trump administration to reconcile remaining disputes on coronavirus stimulus legislation by tonight she says that that will help get a deal done before the election,

which at this point is just over two weeks away, two weeks from tomorrow joining us right now is senator chris coons. he serves on the small business committee and senator, with the focus on the small business committee, i can only assume that you must be desperate to get something done at this point because small businesses right now in this country need some help what happens next? >> that's right, becky i hear every day, literally i just got a text while i was waiting to go on here, from small business owners in delaware eager to hear about news that there may be some breakthrough it's been clear from republicans i've talked to that president trump would like to get a deal obviously speaker pelosi has been working hard because she and the house democrats who are in the majority passed a big, bold, excuse me, a big and broad package four months ago, but majority leader mcconnell has been completely absent from these negotiations he's only put out one bill in the last four months it was a small bill that had

some key provisions that prevented any democrats from voting for it. and while he has told us we'll have a vote this week on those issues, he hasn't released any text yet he hasn't reached out to democrats. as i have been talking in recent days to republican colleagues, if we had a chance at amendments that would allow us to build a broader bill that would actually deal with the 6 million americans who are late on their rent or mortgage, the record lines at food banks, the increase in hunger, and aid to state and local governments, we could get a deal done. but i think it's appropriate, speaker pelosi put a deadline on this it has been dragging on for months, and our key problem is the republican majority in the senate will not support the kind of broad bill that the white house is talking about and that the speaker has passed and sen to us months ago. >> senator, hold on just a second let's put the senate aside for now. let's put mcconnell aside for this moment. >> that's pretty hard to do. >> if pelosi and the white

house -- >> but you can't even get it past what pelosi is talking about with mnuchin at this point. that's what i find incredibly troubling. i don't think there's an easy way to get mcconnell on board but we don't know that why would you let the perfect be the enemy of the good in this situation, and if there's a lot of common ground that the white house and the house could find, kwhint put that together and t put -- why not put that together and put the pressure on mcconnell. >> president trump ran as a deal maker, someone who would put everyone in the room, and sort it out he hasn't spoken to speaker pelosi in a year and frankly in president trump and speaker pelosi hammered out a dole, no one has more leverage on mitch mcconnell than president trump. majority leader mcconnell is up for reelection he's in the fight of his life. he needs support from president trump. if those two work this out, i think it's possible to get the votes in the senate.

as for where we are right now -- >> you don't think mnuchin is speaking on behalf of the president, the treasury secretary you don't think has the full backing. >> if you miss this point, just over a week ago, president trump announced he was cancelling all further talks on any kind of a stimulus and within 48 hours reversed himself >> i saw that. he did it because it put him in a terrible position of saying we're not going to pass this it was the wrong move, clearly i don't understand why nancy pelosi is saying 48 hours or in this case 24 hours or we're out. >> because she's trying to get to a deal. she's made it perfectly clear, she wants another round of stimulus democrats want to get this done because we're getting calls every day from our constituents, those who have been unemployed, there's 25 million americans collecting unemployment. there were 900,000 new unemployment filings last week that's the entire population of my state in size there are state and local governments laying people off.

and there are record lines at food banks, obviously we need another round of stimulus, for small businesses, nonprofits, families and for our communities. the differences that divide us should not be insurmountable the only bill mcconnell has advanced in the last four months had two provisions that were designed to prevent any democrat from supporting it we should be able to close this gap. we need to have him release his text and have them negotiate in good faith. >> the two issues, one has to be in terms of liability. that's one, what's the other. >> aid for state and local governments. more than a million and a half public employees have been laid off. >> the aid for state and local governments, that is an issue that the administration has put on the table maybe not to the full extent that nancy pelosi would like to see, but they have moved that

number up. and last i saw it was much closer to what she had originally asked for on that again, why don't you cut that deal with the administration and put the pressure on mcconnell, if this is where it gets held up, my question is if there's not something before the election, when i heard an analysis the next time might be december 11th, maybe when you have to go back and ask for funding, maybe something could get cut into that short of that, you're probably looking at february after the election, and the inauguration day. it's going to be february before any help gets out, and how do you knowingly and say we're not going to offer any help to people who need it until february >> becky, i'm one of the folks who helped write both the ppe bill and the next round to prioritize paycheck protection program. that piece of this has been endureingly bipartisan in the work on the small business committee. our challenge really is the larger structure, is going from

the $3.5 trillion bill the house democrats passed four months ago, and majority leader mcconnell's $500 million there has been steady progress the speaker has come down twice substantially. as you heard, as we discussed, the on again, off again nature of president trump's engagement, meadows saying no, no, no, mnuchin saying yes, meadows saying no has made this very difficult to get to yes. i think if pelosi and mnuchin reach an agreement that kofcoves the issues we know feed to be covered as jay powell the fed chairman said, we need another round of stimulus f. that deal happens, i think mcconnell will ultimately get in. right now, he can not get a majority of senate republicans to vote for any significant stimulus package that's a real challenge. >> i know that you are one of the people who has worked in a bipartisan effort. i know that you are focused on

small business do you get frustrated, though, seeing this get caught in this position at that point >> absolutely. >> i don't think mcconnell could get this past republican senators at this point, but i wonder if nancy pelosi couldn't get a deal she cut with the administration past some of her caucus too >> i'm confident that speaker pelosi, if she goes back to her caucus and says this is a good and solid deal, that she has the votes in her caucus for it just she has demonstrated over and over again that she is both a master legislator and negotiator, and that the initial $3.5 trillion heroes act f we had pushed that into law and delivered it, you would see a solid economic recovery right now, more kids back in schools, skilled nursing facilities have the resources they need, states having testing they need to get fully open we would be in a much better place. instead, president trump and majority leader mcconnell have

diterred and disagreed about the path now we're talking about a bill somewhere between 1.8 and 2.2 trillion you're absolutely right, i cannot tell you how frustrated i am i have had a number of conversations with the secretary, deputy secretary, and republicans in the senate and democrats in the senatement t the larger point is we have to get to a deal that meet the needs of the american people, and by putting a deadline on it, she's trying to get serious about getting this done before the election >> okay. a deadline that ends by tonight. if there's not a deal, what are your odds, just give me quickly, we're out of time, but what are your odds, do you think that something gets done between now and the middle of november >> i'd put it at 50/50 at best, frankly. and that is frustrating. >> yeah. >> senator, i want to thank you for your time. >> but nobody wants to see this move forward more than me. an open amendment process and a

commitment to pass in the senate whatever gets done is what we should see >> thanks, senator andrew okay thanks, becky. when we return, new york's governor announcing movie screenings are finally coming back to the empire state but new york city is not included so is this any more than a drop in the bucket. after the break, we're going to ask the ceo of the theater chain amc, futures are up. check out the stocks leading the s&p 500 higher in the pre-market right now. we're looking at a whole bunch of them including wec energy up 8% you're watching "squawk box" on cnbc

breaking news on the air travel industry. and phil lebeau joins us now >> yesterday, more than 1 million people flew in the united states. that is the first time that the airline passenger level has topped 1 million since mid march. the airline industry thought they would be there a lot quicker but they have finally gotten to the benchmark of 1 million passengers, technically

1.031 flew yesterday andrew, this is a small, but important victory for the airline industry now that they have topped 1 million passengers in a day >> phil, it's fascinating, whistleblower going to get back -- we're going to get back to you in just a little bit. in the meantime, we're going to talk about another industry hard hit by the pandemic, another tough weekend for the box office liam neeson's "honest thief" taking $3.7 million in north american ticket sales, and it was the number one film. this time last year, the second installment of maleficent earned ten times that amount. we did get a little good news, new york's governor, andrew cuomo, saying that theaters outside of new york city now have permission to open at 25% company. joining us is adam aaron, amc's amc president and ceo. serving guests in 44 of the 45

states it has theaters, beginning on friday. i think the real question i would ask you is, you know, how many people you think, what's the capacity going to look like, and do you think you can fill whatever limited capacity that has been created here? >> well, you know, the news from governor cuomo on saturday was a monumental step forward for the cinema industry. i think the governor, by the way, has done a fabulous job managing the virus remember what new york looked like in march when it was the epicenter of infection in the united states, and now it's been tamed. amc has been able to open our theaters across the country. now that we can open in new york, new york state first, but that means new york city is right behind that also means that the christmas movies are going to hold that should mean that we will see new block buster movie titles in 2021 you know, like the airline industry, we're doing a fraction

of what we did a year ago but the question is not what we were doing yesterday, it's what will we be doing over the next three, six, nine months, and i think finally with new york open, we can say our future is bright again. >> just walk through this, though, what is going to be the limited capacity in each theater starting friday for you? >> in new york >> 25%, 50%? >> i think the governor has limited us to 25% in the theaters in which we open. around the country, amc has been, depending upon the theater and the locale has had a seat limitation of 20 to 40% but you have to put those numbers in perspective. movie theaters aren't typically full our industry is church built for easter sunday. last year, when amc sold more tickets than any cinema chain in the world, we only filled 17% of our seats.

17 17%, so this capacity limitation is not the issue for us. the issue is making sure that we have block buster movies that will appeal to consumers so consumers come to theaters and we have only had one major film release since march of 2020 that's going to change. >> but adam, you're an expert on your industry more than i am, but my understanding of the business is that there are tent pole films, which you know so very well about, where you have 100% capacity filled, and those are the very very profitable films, and then there are other films that either stay in the theater frankly for too long or get in the theater and really never gain some traction, and that's what takes these averages down to such low levels and the real question is whether tent pole films are going to be put in theaters and if they were, whether you would actually be able to make a profit because you would only be limited to

having the 25% occupancy >> well, number one, we do expect 25% capacity limits to increase remember i said we're already much higher than that around the country. but the way you framed the question, you're about 2/3 right. you are right that tent poles drive our volume, but even the tent pole pictures do not sell out, and if they do, they might sell out for opening night, not even opening weekend, and knows movies run for eight, ten weeks. so we've very carefully modeled these seat limitations on our capacity that really doesn't take many people out of our theaters the issue is consumer demand, and what will drive consumer demand is if we have movie titles you know, we're a new car dealer, and there have been no new cars that have been manufactured we have had one major movie since march, and that's all

going to change, especially now that new york is on the brink of opening. >> so finally, adam. you think that the movie studios are going to start releasing these films. if you've got the bond film, which i know keeps getting pushed out and pushed out, you think you would say, okay, i think i'm going to do this in the midst of this. you don't think you would push it out another year until after they have a vaccine. and real capacity is 100%. >> bond has been pushed out to the spring of 2021, but wonder woman is holding for christmas wonder woman at christmas is a big movie. our theaters are safe. we're at many millions of people have been through our theaters since they have reopened we haven't heard of one instance of covid outbreak. you know, amc signed on very early. we partnered with clorox, we signed on with harvard university school of public health our safety protocols are

comprehensive and intense. they're not just social distancing and mask wearing and sanitizing we have invested millions of dollars and upgraded ventilation systems for our hvac systems, heba vacuums, we're taking this virus very seriously our theaters have never been cleaner literally. we measured cleanliness and our guests are telling us that our theaters are the cleanest they have been in decades but we need movie titles what new york needs is that movie titles will be coming. >> adam, we look forward to all going back to the movies, and we appreciate it. and wish you lots of luck. thanks. >> thank you when we come back from stall speed to warp speed, that's the range of estimates for growth with new cnbc data we're going to bring you those numbers. as we head to break, a

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if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

the third quarter brought a strong economic rebound but now it's time to start focusing on the fourth senior economics reporter, steve liesman joins us with a look at the high level of uncertainty surrounding the current outlook for growth steve, i looked ahead, cheated and looked ahead at your script because we haven't gotten the 3 q number yet it's coming in a couple of weeks, right, and i looked at it, and i guess is this us is this our rapid cnbc update is 33% for the third quarter? >> yes. >> what's the atlanta fed right now? are they about there do we still pay attention to them >> i don't follow them, joe. our number is better it really is. >> so 33, and so that's what you're expecting >> so it's down 32 it, up 33 but if you just go now to the next full screen, which we're going to talk about. i'll show you the 4th quarter, which is the one we just put together over the weekend, and it's up 4%, if you look at the

4th quarter number, 3.7% you've got the ongoing battle of stimulus, you've got the elections, a lot of uncertainty. 4% for the 4th, the full year we're going to be down 3.3%. some are as low as .2. others as low as 8% for the fourth quarter deutsche bank. the labor market recovery appears to be slowing more than anticipated which is another reason we're hesitant to raise our current quarter, real gdp from .2% the outlook for the consumer, some arguing that the springtime c.a.r.e.s relief package put enough money in people's pockets to keep america spending stephen stanley from amherst pierpont writes, households have more than enough purchasing

power to sustain growth in spending but annette markowska, we would argue it was probably the last hurrah for consumption this year. what we have in the spring forecasters, they underestimated how far the economy would fall, and then they underestimated how much it would come back. but the argument over stimulus, these differences in the forecast show how much is at stake with the political fight over stimulus. joe, we had down 32, up 33, and then you do three 7s so that is still above a normal growth rate of 2%. there's still a long way to go the earnings seem to be coming in strongly. >> i was sitting here thinking of the, you know, the way either side would spin things i'm thinking, down 32 is

horrible horrible should we just assume up 33 that was coming that seems i would hate to glass over a big number. 33 if it was down 32, up 10, i guess that would be really disappointing. but could it have been down 32, up 40, up 50, could that have been just getting back what we lost go ahead >> you know that down 33 and up 33 is not 0, right, that's the key. you know that. >> the math is you've got to come back. >> if you've ever invested it. if you lose half your money, you got to double it to get back to where you were >> you got to double it. >> i went to m.i.t. briefly. >> you have to come back 42% i did the math a couple of days ago. i forgot what the number is. bottom line, we're still looking at a decline for the year, and that number for political reasons or not comes out, i believe, the friday before the

election >> and it's going to be hyped t. that that's the biggest ever. >> it's a good number. both sides got together and put this stimulus out there. you had decent underlying momentum the question now is the uncertainties, joe, it's the spread of the virus. you've got to be an epidemiologist it's the politicians, and you have to be a psychologist to understand are people going to go to the movie theaters from the guy you had in the last segment. >> i think it's a good idea, even though we don't have that number yet, the third quarter, you're already looking at the next one because that's the more important one, i guess, because you're back to sort of, i guess, wherever you are is a better look at how we're actually going. all right, liesman, thank you for explaining about the down 33 still work on that but thank you. coming up, can we expect more controversial decisions from facebook and twitter in the final two weeks of the presidential campaign. we're going to speak to top tech watcher, henry blodgett about

the social media that landed them under the microscope. people on both sides get mad at facebook and twitter it's crazy you're watching "squawk box" on cnbc this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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i'm jerome gage. i'm a full-time lyft driver. when this pandemic first started, i bought my own ppe because uber and lyft didn't provide it. these companies have been exploiting drivers like me for years. now prop 22 denies us basic rights like unemployment benefits and sick time. uber and lyft are billion-dollar companies, and they still won't let drivers get access to unemployment benefits. that's just wrong. tell uber and lyft to stop exploiting their drivers. vote no on prop 22.

. welcome back to "squawk box" here on cnbc let's get you caught up on some of the stories that investors are going to be talking about today. first up, the uk's national health service could initiate a wide rollout of the coronavirus as early as december that's according to the sunday times. the paper says the health services deputy chief medical officer delivered the news to members of parliament last week. the vaccine in question was developed by oxford university and is being manufactured by astrazeneca. the stock up .8% china's economy seeing more

upside in the third quarter. the national bureau of statistics reported gdp growth of 4.9% of a year ago, below the 5.2% estimate. slower recovery and consumption dragged down official numbers. conocophillips going to be buying rival producer concho resources in an all star transaction valued at $9.7 billion concho shareholders will receive 1. 1.46 conocophillips share for every share they own concho resources up by about 3.6% david faber first broke in news last week, and conoco's ceo is going to be joining "squawk on the street" at 9:45 eastern time this morning andrew thanks, becky. meantime, plenty of businesses battered during the coronavirus. one you might not know about, though, that's thriving, the market for used pickup trucks, and that's a story that phil lebeau is going to bring us

right now in what's become the hottest car on the lot, phil. >> it is the hottest one if you can find one we talked with a dealer just outside kansas city who had a buyer coming all the way from spokane, washington, in order to buy a chevy silverado, why going that far because this is the pickup truck he wanted. he said, look, it has the features i'm looking for at the price i want, even if that price is at a record high relative to other used pickup prices wholesale auctions like this, they see the dealers, this is where they buy used from other dealers. they are paying record prices not just for pickup trucks but all vehicles, but the biggest gain is pickup pickup trucks, look at the price before february, after covid-19 exploded just over $16,000. if you bought that same truck in august, you were paying $5,000 on top of that previous price, an increase of 31.5%, and the dealer that we talked to in kansas city, he says he's got people coming in from around the

country because they want a specific model. >> at least two or three times a month we have customers that come long way away we sold a truck about two months ago to north carolina. we sold a dominican republic truck into laredo, texas, this one into washington. che ch customers seem to be able to find things on the web more than they used to >> if you're an investor, how do you play this? should be playing the auto dealer stocks, at or near 52 week highs auto nation, group one, penske automotive you hear about them primarily because of their new vehicle sales but the used market is where the dealers make their money. and if you look at the dealerships that are a little bit more geared toward the used market, if not exclusively on the used market, car max, lthis

is where the dealers are making the money right now. if you were in the market not just for a full-sized pickup, becky you know this with minivan as well, if you're looking for something specific you're going to have to really hunt for it. >> but, phil, here's the question, is this sustainable? meaning how long do we expect this to go on for? this is a very tight market. at some point you would think it would open up, no? >> i bet you it opens up within the next six months. that's the expectation of people in the auto industry what started with the covid-19 plants being shut down from canada all the way down to mexico you had a tight market and then the new market became even tighter because there was no new product coming out into dealerships. that forced people to say, look, i want a vehicle, i'm going to have to go to the used market, and at the same time, guys, more people have decided i want to drive myself, i don't mean to to take ride share. i don't want to do mass

transportation i feel more comfortable having my own vehicle that's what's creating this environment. >> phil, though, the hard part now is the stock fairly valued meaning if you're looking out 12 months, and you're thinking there's not going to be the same kind of demand or at least given the demand supply situation, is stock price too high, too low. >> i'm not going to say whether it's too high or too low one thing in favor of the auto dealer, these will see strong demand on the new market that's the expectation that market continues to increase every month, and at the same time, remember, whenever they sell a used vehicle, a lot of times they're seeing a customer who will come back for service, and service is where the dealers make their money for them right now, it is a really strong market >> phil lebeau, thank you so much, sir. >> you bet >> appreciate it, joe. thanks, andrew two weeks and one day to go before the presidential

election if you thought social media wasn't going to be a part of the story like four years ago, well, the last week proved you wrong we saw facebook and twitter limit distribution of articles reporting on a laptop reportedly owned by hunter biden and assorted e-mails involving his father then a reversal of that decision by twitter also allegations of censorship from lawmakers in washington it's gotten many looking to haul tech leaders before congress for testimony. joining us now, a widely respected tech watcher, henry blodget. i think it gives you a little more class, cofunder and ceo of insider. not easy to totally alienate both sides we have the head of the adl on constantly saying facebook doesn't take down anything ever. you know, hate speech, white

supremacists, it doesn't take down now, go to the other side, and you really have got everybody upset on that side with this whole, what do we even call this thing now, lap gate or something? do you have a name for it, henry? i don't know what to call it. >> all i can say to the social media companies is, well, well done building the most powerful social communications media platforms in the world and now welcome to the controversy that goes along with being a publisher because that is what they are, and yes, that was a surprising decision, particularly by twitter last week to actually block the url obviously an enormous outcry maybe they would be dragged in front of congress and beaten up. we'll see what comes of this the general picture is for the last five years most of the social platforms including you tube have been increasingly raising the bar on the kind of editorial content, and here on the platforms. i think that will continue

there's a long way to go, and the question obviously is what does congress do, do they suddenly eliminate the section 230 exemption. how long do the companies have what are they going to have to do particularly. a lot of questions will come from it. the broader story is the bar is going to increasingly by raised as to what is published. >> people have made the point that either way, if it's a big, make hoax, russia, spy, craziness, if it's that thing, that would be a great story to know that. or, i mean, it goes without saying that if they're authentic, and it is his laptop, that would be a big story. i would want it as twitter or facebook or mainstream media or anybody, i wouldme want to look very closely at the details as a quest for what's true and what's not. how do they get around that

rationale? >> absolutely. and even what you just said would be controversial at media organizations. >> i didn't mean to. >> they would say it's not a big deal this is the vice president's son, it's not him, et, but let's not talk about that. yes, it is incredibly complicated and the idea that twitter is actually going to have their own team of fact checkers go deep into a story published by another news organization, cnbc, "new york times," fox news, before they allow transmission of that url, that would be a huge hurdle for them, and i think it's wi thhy reacted quickly and said we screwed up, sorry about that, we're going to put language on tweets going forward three or four months ago, they didn't do that, and now they're regularly putting language on tweets and so they are, whether they want to be or not, they are media distributors, they have long had lines around

pornography, and drugs, and things like that, now the lines are going to get even higher, and eventually they will start to approach the lines that cable networks, newspapers, family newspapers and others have always had to deal with, and it's tough as you've just pointed out, joe. >> henry, you know, i love the way airlines in the old days, you would look up a fare, and it would be to the penny no matter who you went to. how do facebook and twitter both know this is something we can't share? does jack talk to mark they seem like they're not always on the same side. somehow they knew, this is something. how did they both know, henry? >> that is a very good question, very good story. would love to hear your journalists and ours deep into figuring it out. it was very quick. it was one particular story. obviously very controversial going to get a lot of view, and

scrutiny, and but yes, day they both reacted both companies getting beat up by both sides constantly they're getting a sense of this. that's going to continue the environment is not going to change maybe we we get past the election it's going to calm down a little bit, but it's not going to change. >> something you tweeted out is interesting. we have a bunch of companies worth more than a trillion dollars, and the technology makes up more of the market than ever before, but you still aren't convinced that the valuations or at least, i don't know whether you're saying they're not overvalued but saying it's not the same type of evaluation. >> yes to both of those. they're expensive. there's no question. you look at facebook and several of them are trading around 30 times trailing earnings. that is a big multiple for

companies this size, but it is nothing like the late 1990s, even for big companies cisco i remember was 75 times earnings something like that. the other factor coming into it, digital has moved so deep into the economy that you've got a lot of companies that are considered tech companies that are really in the retail business in the case of amazon, the media business in the case of google, facebook, and so fort, so they really go beyond what traditional media is. they're expensive, no question, but not like the late 1990s. >> once we get through this election, henry, i think there's reckoning m coing. i don't know what it looks like. section 230 survived do they self-regulate? i don't know looking to the future, what do you see? >> very good question. i think they have to continue to self-regulate, and i think they

will i think they will continue to raise the bar because in part, internally you have a lot of dissent among people who work at the companies saying what are we doing, why are we contributing to this, can't we be better, and that is going to drive a lot of it it will also be very interesting to see what happens with section 230 and congress i think congress will try to regulate i think as they dig in, they will figure out how complicated it is, and they will also not want to hurt their ability to get their message out because a lot of this, the underlying message is let us say whatever we want, at least on our side. so it's going to be very complicated but high level, i think these companies will survive and do just fine as long as they have time they can raise the bar and get through it i don't think this is an existential event for them. >> henry, thank you. i appreciate it. >> great to be with you. >> i don't know what the supreme court would do on this issue

i don't know whether it would be 8 to 7 or 9 to 6 or i mean, who knows how they'll come down next year. so hey, henry blodget, we appreciate it. we'll see you again soon good to see you, henry thank you. >> good to see you thank you. >> thanks, guys. when we come back, jim cramer's first take on the trading season ahead. earnings season ramping up over the next few days, and by the way, a big report from this morning, halibut beating analyst efforts on the top line but missing on revenue, that stock down by about 1 1/4% this morning. stay tuned, you're watching "squawk box," and this is cnbc hey, dad!

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welcome back to "squawk box" now up on the dow 62 points and triple digits for most of the premarket session until just recently the nasdaq indicated up about 56 or so and the s&p indicated 10 still, becky, i think we got a pretty good look too much making sausage and we

see exactly what the problems are with stimulus. unbelievable and i really don't know what to think at this point. but i don't think i want to eat any of that sausage. >> i don't think it looks very likely that they can all get together and some up with some solution and i think that's bad news for americans in need we'll see. let's bring in jim cramer standing by at cnbc headquarters what do you want to talk about you want to talk about the stimulus and vaccine race or earnings or conoco phillips. >> shows there is a pulse that there is a recognition that there needs to be fewer oil companies that we don't have the opportunities that we thought. you mentioned hal burton was looking good and then when people realize fewer, it goes back down. this is a group that is very challenged and desperately in

reason to be in search of. this deal will make it so. my problem with conoco, they just raised their dividend by a penny. what is that about this is a group that is desperate to show, hey, we're alive, focus on us no one wants to focus. we want to focus on ev and tesla and i just think their time has come and gone. >> for good? >> yeah. for good >> i mean, you don't, i can see gone for good is an investment, but a long time that we're still dealing with fossil fuels moving and generating most of the electricity on the planets, right? >> no doubt about it the group's upside is very compromised and, look, you have a president that was willing to drill pretty much everywhere all it did was produce a lot of supply which kept the lid on their actual earnings and then maybe if they all merge. take a look at chevron

you have mike worth on mike worth is as good as it gets and where is that stock? mike worth is a thoughtful, good man. but that stock doesn't budge and it just tells me, look, be careful. a lot of other segments out there that are really rolling and it's not oil it's just not. >> you know, just to play into this a little bit, part of the reason that they had so much problem and there's an opec meeting this week and good luck trying to stabilize it at higher prices right now when we see demand pick up in the world and when we see the other side of the virus, could that change at some point or is this just a situation where every time demand changes, it's way too easy to ramp up production again >> we were looking for 7 million or 8 million and then was it 5 and then we dropped to 4 because there's just not a lot of demand we're not a very good swing producer as they told people

the weight of the evidence is on ev and maybe ev is going to be much more a faster adoption than people think because these stocks just act terribly and like exxon and maybe the days are sunsetting for traditional fossil fuels obviously, vice president biden wins it will just be accelerated. >> jim, thank you. and i did listen with interest when you were talking earlier about the plays post election. you're not excited about any of the plays if trump wins a second term in terms of the sectors there. for a lot of the reasons that you just laid out. we'll see you in just a few minutes. but happy monday morning good to see you. also, some top stocks to watch ahead of and after today's opening bell p 'll have that coming uin just a few minutes stay tuned, "squawk box" will be right back ah!

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welcome back to "squawk box. we approach the top of the hour with dom >> good morning, andrew. shares of halliburton you can see moving between gains and losses right now down about a percent 116 shares of volume and the oil

fields company and revenues fell shy hurt because of olow oil prices and those oil company customers didn't spend as much and those shares off as much as 1% american airlines up around a percent and roughly 830,000 shares of volume and overall market optimism helping but americans plan to resume flying the boeing 737 max jet and this is america's and flights daily between new york city and miami, florida, at the end of december are planned. we'll watch those shares and shares of tesla up over a percent. helped along by analysts who raised to 500 bucks and it was 475. they keep the neutral rating and they cited expectations around more operating efficiency and a better than expected earnings report on wednesday.

keep an eye on those, andrew, back over to you >> dom chu, thank you for helping us through this monday morning. green arrows the dow up 63 points and nasdaq looking to open 58 points higher and s&p 500 hoping to open about ten points higher. becky and joe, we will all see you tomorrow make sure you join us tomorrow "squawk on the street" begins right now. good monday morning. welcome to "squawk on the street." i'm carl quintanilla q3 earnings kick into second gear and pelosi sets deadline and the anniversary of black monday our road map begins with stimulus countdown the speaker does set a 48-hour deadline for any preelection deal >> plus, mega oil deal that's where we