before the election are looking kind of slim we'll take you to washington for the latest comments from senate republicans throwing cold water on the talks netflix slumping after the company's earnings and subscriber numbers disappointed the street full rundown is straight ahead and a challenge to fintech companies, jpmorgan launching a new payment system for small businesses we'll show you how competing stocks are reacting. just are got a little less hip to be square it is wednesday, october 21, 2020 squawk "squawk box" begins righ. ♪ ♪ its hip to be square, it's hi to be square ♪ >> good morning, everybody i'm becky quick along with joe kernen and andrew ross sorkin.

it is hip to be square used to be at least. let's check out u.s. equity futures. things are relatively flat and that isa good thing. a bit of a difference after the big swings we've seen. right now dow futures up about 3, s&p 500 up about 2, nasdaq up by 13. of course this is after a done day for the m down day for the markets yesterday. treasury yields are something to start paying attention to because we did see a pickup in treasury yields to the highest levels we've seen since june the ten year is yielding 0.813%. and i know it doesn't seem like a lot, but it is the highest level we've seen in a while and there is so much that rides on that including mortgage pricing which has been a key part of what has been happening in the housing sector, a strong point in the economy so far. >> let's get over to washington.

we'll talk about i'd call it a soap opera, but really it is a reality show and means a lot to so many millions before nancy pelosi says she is now optimistic that democrats may be able to reach a deal with the white house on a new covid-19 relief package and get that aid out by early next month. but senate republicans she says aren't on board. el eloi. >> that's right. senate republicans are ready to throw in the towel mitch mcconnell has reportedly encouraged the white house not to commit to a deal until after the election he is worried that this could affect the timing of a vote over the supreme court nominee sweass well as divide the gone caucus ahe gop caucus ahead of the election mitt romney said that he will not support a $1.8 trillion price tag that the white house is offering and he is not sure that that would even pass the

senate meanwhile his colleague kevin cramer said that he is not sure the president can change anybody's mind >> where he could get republican votes if they would come to some sort of an agreement, i'm not sure that there would be -- >> so still the treasury secretary and house speaker nancy pelosi will be back on the phone again this afternoon as her office does say that they are moving closer to an agreement. even though they blew past the deadline that she set yesterday, she did say that it shoeed that both sides are serious about finding compromise >> so here is the question i'd have for you and by the way, credit to becky because she's made this point over and over again, that even if the president comes up with a plan, that the republicans may not ultimately go along with it. what does that mean in terms of that disconnect for i hate to say it the politics of the next two weeks?

>> i think that first we saw a division over dollars. then we saw a division over policy right now what we're seeing is a divide over politics and i think the calculus for a lot of vulnerable gop senators who are looking at whether they can even get reelected is, you know, do they go along with what the president wants, we've seen people like david perdue and kel kelly loffler sort of double down, but do they risk part of their base so, you know, this puts them in a really tough position. and that is why they just don't want to take this vote or have to make this decision before the election this is something that preliminarily could politically it could be better to kick it down the road and see how things shake out november 3 and then go from there >> becky

>> which iis kind of the point i've been making why wouldn't pelosi say okay, cut a deal with the president who does want to get stimulus checks out to everyone with his name on it and then put pressure on the senate. i don't understand why they didn't take this tact sooner unless it is a situation where nancy pelosi can't 2r0control h own party either if you are playing politics, i don't understand why they didn't do this sooner and if you want to get money out, i don't know why they didn't do this sooner. it is stupid >> hard to say that nancy pelosi wouldn't have her party with her because they already passed -- they have made multipl sure thay pelosi doesn't have her party with her >> but if you don't do it now, right now you have a president who is going to put pressure on the republicans in the senate. and if you don't win the senate as the democrats, then you where going to have an even less likely have a chance of getting anything passed post the election >> that was the question i was

going to ask ylan. >> and one more point too, becky, pelosi has been saying throughout this process that she is optimistic about finding a deal, but she says she is optimistic and then lists the 15 points of where they have disagreements and where she says that president trump disrespects scien science, isn't willing to crush the virus, et cetera so by continuing the negotiations, she is actually able to keep a spotlight on the talking points that the democrats have been trying to hammer home, which is that president trump doesn't have control of this. so perhaps by continuing to negotiate, she can continue to show the way that democrats and republicans are handling in differently and that becomes a political advantage. i think that you're right in that they waited almost too long and now that they are so close to the election, they simply can't bridge the political divide >> ylan, back to one point you've made over and over, that

it very well may be that we didn't get a plan until after the election, but we really may not get within one until februay how do you handicap that >> you know, i don't know. i think it really depends on what the dynamic is after november 3 it is possible that all of the negotiating that we're seeing right now is just laying the ground work if a defor a deal o december 11th when they have to pass a government funding bill that does provide? vehicle toward getting something done but if the nation and if capitol hill is even more divided than we are right now, which is hard to imagine but certainly possible, then it could be not until after there isstration or readministration if you will so i think that it really will depend on what happens on november 3, but it could be that they take out of the work that they have done so far and just transfer that to december. it is an option. but we'll just have to see >> ylan, thank you so much for

on helping us try to understand what seems like endless saga coming up, big dip for netflix shares if you look up pay it forward in the dictionary, there is a picture of netflix, what has happened in the last year to this company you couldn't possibility expect numbers not to this point, but earnings also fell women short well short of analyst estimates. we'll dig through the report next and then on today's agenda, we'll hear from verizon, bio again and abbott labs. we'll bring you interviews with the ceos of the nasdaq where i am i would put it onset, but maybe in the we'll stay separate. also auto nation "squawk box" will be right back.

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as amy first jober, is to care for derek. everything i do is for him. when i moved to this apartment after six months, we need to connect with the world. i use the internet to keep him in the language, because that's the way to connect to my family's traditions. he has to know where he comes from. we need internet essentials. there's no excuse to not get connected. welcome back shares of snap are soaring after the snapchat parent reported a surprise profit for the third quarter. earnings of one cent a share beat expectations of a five cent loss snap's he 249 million daily active users topped what the

street anticipated i guess no surprise, you tell people that they are going to school virtually, they can't go anywhere, this is their outlet >> that's right. and this next story, netflix is an outlet for things kids and adults. for me for sure. investors hammering the company, stock in pre-market trading after third quarter earnings fell short of expectations beat slightly on revenue, but missed on earnings and also net global subscriber additions by what it says is a whooping 38% joining us now is an entertainment analyst. he has a buy rating. the whooping number we just used maybe would have been more appropriate for the previous two quarters and the type of subscriber growth that the company saw worldwide.

in two quarters almost all of what the company had in 2019 things have been paid forward to the nth degree with netflix. and i'm not convinced necessarily that these numbers are that bad and you look at the stock, it was a third of where -- it was $80 million or $90 million company instead of a $230 billion company, excuse me, about 2 1/2 years ago. so it is reflected in the stock price. so this aseems like the normal course of business >> i think there is no question that the pandemic has accelerated the quarter volatility and subscriber growth but more importantly, i think that if you take a longer term view, i think the secular dynamics of broadband usage have been significantly enhanced as a result of the stay-at-home theme

of which netflix has proven to be a major beneficiary you look in the first half of the year, 26 million net additions. we knew coming into q3 that there would be a forward impact for the robust guns and thains should likely continue beyond that, i do believe that significant number of these subscriber gains will be lasting and permanent and i heard you talking about before the break around the content, you know, offerings, we haven't heard much about the content offerings coming off the shutdown of production of the company now resuming the film and television production globally on a very frantic pace we do believe that the content pipeline for next year will be significantly robust so the key indicators we look

for, so much was made about the potential backlash from the cuties child movie in france but that didn't seem to be a factor and also coupler engagement has never really been at any higher level. so all these things that we like to see in the free cash flow profile remains to be in-tax ta well >> i don't have a problem with the nuts and bolts, but i do have a problem with the content. and all the streaming services are struggling to come up with great content. and net flinex setting up a new leadership team, nbc universal reale lining operations for peacock. so it is still about content a couple of the new shows at netflix, i tried, but no thanks. and i'm thinking, i don't know,

maybe they just are crappy developers or writers or something. but i need content and the other thing which i alluded to, there is a lot of streaming competition. hbo max, disney wants to be a real player. so the competition is not going down >> indeed. it is a rat race out there and you know, i think that you will see significantly elevated levels of content spending and now you have live sports also coming back so the dynamics will be reset a little bit consumers will have more entertainment options. so that rat race will intensify. netflix talked about shooting almost 200 productions around the world since their production restarted just a few months ago. so it gives you an idea of the very frantic pace of content investment that is out there, whether it is hbo max or disney

plus or peacock, that is what should happen. >> they better ramp up their netflix movies better than that adam sandler or whatever -- i tried to watch their movies. they are mailing it in >> tuna, the question i'd ask is, you know, you just used the phrase rat race and joe talked about more competition coming. at some point, is there going to be some fallout meaning there are so many people racing to do so much of the same thing, there is quality issues, joe is even talking about there is a quality control issue at this point already. come next fall, come the fall after, who is the loser in all of this? it can't be that everybody wins. >> undoubtedly, andrew i think you hit a key point that there is inevitably going to be a fallout or shake jut out or

whatever you want to call it but i think the pandemic in our you view has expanded the addressable market of streaming. as i said earlier, a lot of these gains aren't expected to be lasting the pie has grown bigger and there will be opportunities for more winners we think and inevitably a consolidation one of the things that struck us that netflix mentioned yesterday, they are still hitting double digit penetration broad band households just last quarter. so it gives you the potentially significant wave that we have for this streaming growth especially internationally before we get close to sat saturation so there will be a lot of opportunities. >> i wonder if there is so much money that the mediocre developers and writers are getting a shot or something. i would think that more money

would mean better stuff. i think the pandemic is affecting it too but i'm hopeful, tuna. but i haven't seen it. i'm looking all over i looked at things that people are watching this, i go on t the -- they are a isz ma amazin terms of this is what you watched, this is the top ten, and i'm aware of what netflix is offering me, but i'm just not buying most of these things. so let's get our nose to the gli grind stone, get them working on good creative content. you got a good one for me? i'm like back on the tuners, which was 2012011 or something. i can only watch so much about the popes. popes were really different back then, they had families,

mistresses anyway, thank you. andrew, you got anything for me? >> friday night is going to be huge on apple plus >> i don't have apple plus >> hold on and then your favorite and becky's favorite, bill murray in a movie with sophia compaapola s dropping friday night. so my wife and i havewill be watching it. >> i watched the extended preview for it i want in. >> friday night it is. bill murray, apple plus. when we return, jpmorgan chase taking on fintech companies like square and paypal with its own card reader and app. we'll have a lot more on that service. and as we head to the break, check out shares of texas

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welcome back fintech companies have begun moving into traditional banking and jpmorgan is retaliating today unveiling its new fintech inspired service called quick accept aimed at its more than 3 billion small business companies.

jpmorgan is pitsi inpitting itsf against the likes of paypal and square joining us now is our banking reporter for cnbc.com. hugh, this is a move, the question is how successful it can be >> andrew, shots fired in too fintech land for sure. when you think about it, they actually have 3 million plus accounts, they have roughly 10% of the wholedeposit base for small businesses in this country. and so for the most part, when they flip this on, they are set to do that this week, their customers will have access to something that people who use square or paypal or clover have mad for years which is this ability to do point of sale credit card transactions through a little hardware device so i think the story of this is really ton square and fintech, square and jack dorsey invested

this category a decade ago and now jpmorgan's clients will have access to it >> and your sense though in terms of square and paypal's ability to fight jpmorgan, i mean jpmorgan say they are hamstrung to begin with because they are regulated entity and they say that paypal and square are getting away with murder eventually with no regulations >> certainly the bank lobby would argue that the fintech and square for instance has its own bank i believe in utah now so basically they are all competing on all grounds in all areas both small business and consumer, and for the most part, if you look at this from jpmorgan's perspective, they are actually the differentiator. if you can't be first, you have to be a little bit better. so jpmorgan is offering this with essentially same day funding. so for instance if you're a merchant, you sell something at 10:00 a.m., that money hits your chase business account that same day. and if you are working with

square or the others because they don't have integrated -- the same offerings, they don't have the checking account necessarily as well as the fintech offering, they take at least a day or more. and on top of that, if you want instant payments with square or other, they typically charge an additional 1.5%. so this is a wedge that jpmorgan thinks they have, they basically say if you work for us, you will get same day payments and it is for free >> hugh son, thank you for bringing us this story they will start tying these things together. i'm worried if they have any success, we'll have the department of justice doing what they are doing to google at conversation another conversation unto itself hugh son, thank you so much thanks and when we come back, researchers in the uk are planning to infect healthy people with coronavirus to test the efficacy of multiple vacc e

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♪ ♪ and i'm hungry like the wolf sthoe ♪ welcome back to "squawk box. let's take a look at the u.s. equity futures something you don't often see, very slight moves from the futures. lately we've seen big swings in the mornings, triple digit moves for the dow. this morning dow down about 12 point, but s&p s&p futures are up you by just under a point and nasdaq by about 15 this is after a down day for the markets yesterday. amazon is launching a new service for prime members, free

one hour groesh wricery pickup e food stores. orders have to total at least $35. before today's announcement, rhyme members could only pick up grocery orders at select stores. i don't know if you've tried this service, biggest problem i've seen, it is a rare misstep for amazon, but they don't have a very good idea of the inventory in any of those stores so you can order it online and they may not have it and they substitute pretty crazy things and for something like amazon, you'd expect the technology to be really good, but i haven't seen them be able to link up the inventory with what is offered on line. i don't know if you tried it >> no, no, no. >> i wasn't talking to you i wondered if andrew had >> it is above my pay grade. they call it whole paycheck. we're not a whole foods family >> no. >> i saw you tweeting about some

of the yogurt or frozen ice cream ire eatiyou're eating. >> the most expensive yogurt you could possibly buy i don't know if they sell it at whole foods. but we're not a whole foods family >> and you can go to king's which is three quarter paycheck. i mean, why pay less, but kings are beautiful, great, it is a great place and it is close. >> kings are nice stores >> and that is one of the things that has been different. i've gone either every day or every other day since this whole thing. >> you do the grocery shopping i appreciate that. >> my wife has about six jobs and she's busy as -- i do a lot of things. >> i know. this is a big step up for you helping out a little bit at home i appreciate it. >> that is not true at all i haven't loaded the dishwasher very often, but i do do the shopping and i make my son lunch

and stuff like that. i make myself lunch. >> i'll give you that. and i know you clean up after the dogs >> i do go into -- what is the other one, shop rite or something. you can't believe the difference in prices. like $4 for this and it is like $12 at king's. >> i love that you know this you can do price is right any day. >> i probably could. >> i'll take what is behind door number two irobot reporting a huge beat on third quarter revenuearnings as revenue soared ceo pointing out that the company actually saw stronger than expected orders from retailers and direct to consumer sales growth as well the stock down, but still up 80% for the year >> and coming up when we return -- i'll have to get an

irobot and by the way, i picked up a very good vacuum cleaner during this pandemic. and an update on the growing spread of the virus as many states see record infection rate, we'll talk to dr. scott got leib for t gottlieb for the latest. and gm unveiling its electric hummer, we'll hear from the president for the specs. and you can watch or listen to us live on the cnbc app. ok, just keep coloring there...

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people traveling to new york from 43 states and territories are now ordered to quarantine for two weeks upon arrival or face fines the latest outbreaks have become so severe that even connecticut and new jersey would have landed on that list but governor cuomo said there is no practical way to quarantine new york from those states

he said new york would help try to contain the outbreaks the states that aren't on the list include washington, oregon, california, hawaii and a block of northeastern states but that could cause a problem if you are no longer allowed into new york there your homefr new jersey >> i saw how the governor characterized it that we're like one big -- the tri-state area is one big state. just no way you could do it. it is impossible i mean, i know we go over rivers and bridges and stuff like that, but i'm trying to think of how that would work. >> taxes reach through all three too. it would be such a huge economic hit hit. >> are you going anywhere for thanksgiving i was planning on going somewhere again and i may be back in my basement again. i figure these states would

start dropping off the list eventually >> the question is whether ultimately we can do it with more precision that has to be the goal from an economic perspective and potentially a health perspect e perspective. hot spots obviously in new york, new jersey and customer. whether there can be quarantines in those particular area, i can see that, but a state by state basis, it is a broadway to do it >> i think that you will have scott on later -- >> yeah, right now >> he wrote a piece about -- nobody wants to get this horrible thing, but the death rate, we're certainly learning oh how it deal with it much better than before. i don't know what that says about how we do things, but -- anyway, go ahead >> let's bring scott in. and i'll also mention a story becky had talked about, which is the uk researchers are planning to start infecting healthy

volunteers with decembers dosee coronavirus, a way to speed up multiple vaccinations, called the human challenge trials and they will target 18 to 30-year-olds who have been free of covid symptoms and have no other risk factors to talk about that and other issues, dr. scott gottlieb is here he is former fda commissioner, cnbc contributor, serves on the boards of lumen and pfizer which of course has one of vaccines in development. i don't know if this is a moral issue, a brave ry issue, the ida of purposely infecting younger people to test vaccines will work how does that work >> just to pick up on the last discussion about new york, i'd be very surprised to see the tri-state region break apart, that new york wouldn't be in solidarity with connecticut and new jersey those states were tightly

coordinated when new york was having a dense epidemic. i think governor cuomo will reciprocate. in eterms of the challenge studies, i think right time would have been perhaps two months ago, three months ago before we got the big efficacy trials under way so i really don't see the point of the challenge studies they will probably look at some of the second and third iterations and think that they can sell those to market but i'm not sure that it will make a real big difference, it is something they should have considered earlier and we probably can't do it here in the u.s we considered it in order to do challenge studies, you actually have to manufacture a high quality grade of the virus and there is really only one lab in the u.s. inthat can do that and getting that up and running would have been prohibitively difficult. so it wasn't plaquractical but i'm not sure that it make

sense at this point. what we learn could be transferable to some of the other vaccines in development. >> and dr. gottlieb, the other thing i wanted to mention is the issue that joe raised, something that you have been tweeting about the last 24 hours, some of these other studies suggesting that those folks who have been to the hospital, older ages and younger ages, are actually doing remarkably well, much better than i think people anticipated. that is great news in so many respects the question of course, do you think that changes the confidence factor with which people would decide to engage in the economy, engage in travel, engage in other things, or not >> psychology is changing already. people are becoming amounts more complacent i think that ultimately it will require a vaccine. we've said many times that death

rates are substantially down and this is a study that substantiated that in-hospital death fell more than 50% that is partly a function probably of better care and partly a function of different cohort getting infected, doing a better job of protecting but ther dramatically reduced in-hospital deaths steroids, being less aggressive about intubating patients. and now probably of probably therapeutic therapies coming on to market. but i'm not sure it will be enough to change the psychology. this is still deadly, much deadlier than the flu. but the outcomes will continue to improve heading into the fall and winter the challenge is that we'll probably be in-fenkfecting more people so even though we'll save more lives, i think more people will

end up getting infected over the upcoming season. >> interms of that psychology, i was talking to a friend yesterday and we were saying if you told me that every american was going to have access to the cocktail that president trump did between regeneron and remdesivir and these other drugs, the same cocktail it seems like governor chris christie had access to, you might be willing to take more risks than you otherwise have thus far >> that may be true. but the problem is not every american will have access to these drugs. first of all, they will be rationed because we didn't put enough effort in manufacturing them back in may, june so distribution will be getting difficult. the drug that looks the most promising of the three, there are two lilly cocktails and a regeneron drug and also amgen has product in development but what looks most promising is

the lilly cocktail, it is a two drug combination that lilly is manufacturing and that is the drug that chris christie got there will only be 50,000 doses of that drug between now and the end of the year. that is the closest thing we've seen to a cure for covid but we're just not going to have it in sufficient quantities to provide to most people so we'll have to wait until 2021 i think for these things really to be widely accessible to most patients in the community. >> and we're talking about some of the better results recently, but the cdc also coming out with a study saying that there were 299, about 300,000 excess deaths thus far in 2020, in particular and this to me was the sir pricing part about it, it said that it struck 25 to 44-year-olds very hard, their death rate up 26.5%. so how do you square these numbers we're seeing >> yeah, we have to break down

those cdc names a little bit two-thirds of those excess deaths were from covid-19, the other one-third were from other causes and i expect a good portion were due to other reasons we've seen a spike in overdoses and i would suspect that good portion of those excess deaths in that younger cohort were from drug overdoses and other deaths triggered by some of the implications of what we've gone through to try to deal with covid-19 so only two-thirds of those excess deaths were actually directly related to vile ral infection. the other third were related to other factors probably indirectly related to the pandemic >> okay. dr. scott got letlieb, thank yoa always and when we come back, we'll talk about what investors need to watch ahead of the election and we'll tell you where mario

cabelli will be focused on the two jays ♪ ♪ ♪

welcome back, everybody. investor mario gabelli spoke yesterday. here's what he says he's thinking about ahead of the election. >> from the point of view of the election, clearly from my perspective i worry about who will be appointed to succeed the two jays who's going to succeed what you just heard from jay clayton. who's going to succeed jay powell who's going to succeed the federal -- >> joining us to talk about the election and how it may impact the markets is brian gardner

he's at stifel what you're watching is what happens to the senate at this point. you think the market is pricing in a potential biden win but not a democratic sweep why don't you explain that. >> i am. i'm also paying attention to what mario gabelli said. i think key appointments are important. i get the sense that investors are skeptical that if he wins he could get his agenda through a closely split senate, thinking 51/49. i think 52 is a magic number it's a tipping point if they have a good night and get to 52 seats, all of a sudden it gives the majority leader a little bit more room to start changing the filibuster, easing the rules to get legislation through. most of your viewers know you need 60 votes to get the votes

through the senate there will be a move and that makes a tax hike easier and green deal easier. 52 to me is a pretty big number as i'm looking at election night. >> that means what in terms of the markets? >> i think if we get to 52 or higher, i think there could be a bit of a reversal of this reflation trait we've seen i think part of the reflation trait has been thinking that we're going to get more relief, more stimulus but discounting the prospects of a tax hike. if we -- if democrats get to 52 or higher, all of a sudden the tax hike becomes more realistic and i think investors start to price that in a little bit more than they have to this point >> what about what happens -- i know there's four scenarios, you've gamed each of them out. one would be the democratic

sweep that you just laid out another would be biden wins the presidency but the gop maintains control of the senate. what happens to the market in that situation >> i think the market kind of likes that scenario. it would be disappointed with the prospect of lower stimulus, lower fiscal support i get that it is going in that scenario that would be more relief coming, it would just be at a slightly lower level the tax hike is off the table. some of the progressive agenda items are off the table. there are would be more attention on the regulatory side, this goes to mario gabelli's side i think there would be landing places in a biden administration for progressive regulators at the same time, if it's a gop senate, that makes it a little bit more difficult for biden to get through some of his more controversial picks to the extent he would pick an

elizabeth warren or bernie sanders ally to key positions, it might run into a roadblock. so the regulatory risk for certain sectors would be reduced. >> what happens if the president gets re-elected and the senate is maintained control by the gop? >> under that scenario i think there's a bit of a relief rally because the tax cut is off the table. the regulatory environment, which had been very pro business and markets have liked that, that stays in place. stimulus probably again at a lower level. the problem for investors off that, there is a follow-up question what's next? what is a trump 2.0 agenda i think the campaign has not put out a detailed agenda. i think investors are left

airing out what's going to happen over the next couple of years, next four years trade tensions probably elevate. they don't fool as they probably would with a biden presidency. i think they elevate as we saw in 2018, 2019 with the negotiation of china, those are market moving events they weren't propping up the market we had some really big selloffs and i think that comes into play. >> brian, so you really think that not knowing what trump might do economically is as bad to the markets as a possible biden presidency >> no, i wouldn't put it in those terms, joe i think there would be confusion about what's next. >> we know some things he wouldn't do. >> what's the policy action -- >> we know some things he definitely wouldn't do that we're hearing from biden i think a small relief rally, okay. >> joe, i think you and i are

talking by each other. i think we are probably in agreement on this stuff. i do think there is a relief rally but it's after the relief rally. what policy proposal -- >> i don't know. >> -- can he come up with that's going to move the market. >> can we have a sigh -- i think banking on stimulus to take us anywhere past the first couple of months is ridiculous with the other stuff they're thinking about doing. i'd look at it that way. thanks, brian. >> thank you, guys. coming up, quarterly results from verizon plus we have first on cnbc interviews with the ceos of nasdaq and autonation after the company's report we're coming right back. at cdw we get you want happy, productive employees.

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stimulus talks continue in washington we have a look at what you need to know and what it means for your money straight ahead. zwroo earnings roll on we hear from the ceos of nasdaq and autonation also, going big and going green. general motors unveiling the all new and all electric hummer to the world. we'll speak with gm's president who joins us first on cnbc as the second hour of "squawk box" begins right now.

you good morning, welcome back to "squawk box." i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equities this morning let's show you where things stand as we await or not some form of stimulus right now the dow looks like it's opening down 35 points. the nasdaq opening up 3.5 points -- the nasdaq up now about 2 points the s&p 500 looking to open down 3 points we are watching two big stories this hour. mortgage applications hitting the wires. diana olick is going to bring us those numbers and an outlook on housing. we begin with ylan mui ylan >> reporter: deep in

negotiations over another round of relief with the treasury secretary and house speaker nancy pelosi scheduled to talk on the phone once again this afternoon. now the administration has under the offer to $1.88 trillion. on cnbc yesterday mark meadows said they're willing to add more money for small businesses, for manufacturing tax credits and they're willing to send out big checks but he conceded trying to win over democrats could turn off his own party. >> i can tell you it probably will divide the republican conference you have some senators who really believe that we've done enough for the economy and want zero you have some that believe at the 1.88 number that we're at that certainly we have been more than generous on a variety of issues and they support that number and then you have a number of others that are in

between. >> reporter: still meadows said mitch mcconnell has been fully engaged in the discussions he said he will hold a vote. he did not say when he would bring that to the floor, before or after the election. back over to you >> okay, ylan. we will, i don't know, slim. slim is that the word we're using, slim we haven't used slim to nil yet but i think maybe slim >> reporter: they're still talking so it's not nil but slim slim works for me. >> i told you yesterday, i got some milk that the expiration date is the election that drove it home to me if milk is going to go bad -- >> i hope it doesn't turn sour. >> she had something that goes out a year i don't know where she got it. let's say that diana's all business she's waiting for me rolling her

eyes right now she's all business let's get to diana who has the latest on the mortgage applications go ahead, diana, get to it >> reporter: all business, joe out here in the fog giving you the news home buyer demand incredibly strong compared with last year there appears to be a slight pull back this month mortgage applications to buy a home fell 2% for the week and that's the fourth straight week of declines. purchase demand is down nearly 7% compared with four weeks ago. buy in still 26% higher than one week ago a year ago. rates did move slightly higher the average on the 30 year fix with conforming loan balances increased to 3.02% from 3.00%. that's for loans with a 20% down payment. the rate is a full percentage point higher than it was one year ago the tiny move higher did not dampen the demand for

refinances that rose .2% from the previous week it was a strong 74% higher than the same week a year ago it may be seasonal it's more likely due to the incredible shortage of homes for sales, we're seeing huge demands to purchase a newly built home as we saw in the housing starts numbers yesterday, builders are not keeping up the supply of new homes for sale is about half of what a normal market should be, joe, so i don't think you need to worry about this pull back yet. you're probably going to worry about the fog, whole halloween thing, people jumping out behind me we don't haveany foliage. >> that's my favorite. you're right it always looks like that scene in haddonfield with michael myers and i get really -- >> reporter: i know you worry. >> i get worried do you have it i don't think they've used it for you yet but we have made some things to put behind you and we haven't had the nerve to do it because we think you'll get mad. >> reporter: me, mad

>> yeah, you always get mad when i change the subject you seem like i'm too frivolous which -- and i don't want to be frivolous because this is important. this is business news. this is business news. we have three hours. that's the other thing are you going to put michael myers back there it is foggy. that's a nice shot >> it is very halloweeny. >> they're scared, too the guys in the booth. they said, no, they have big foot we do have a policeman we put big foot back there when he's in sun valley -- jackson hole all right. thank you. we digress we do have to go now diana, thank you we'll talk later becky? get me out of this >> thanks, joe when we come back, if you watched the world series last night you saw gm's ad for the new electric hummer. we will speak to gm president mark royce after this break. then dana freedman, ceo of the

nasdaq to talk quarterly results, ipos and much more. mike jackson is our guest today as well. we'll talk about the boom in used auto sales, the rush for pickup trucks and the state of the consumer let's get a check of the markets right now. looks like we have turned a little bit lower dow futures indicated down by 56 points s&p down by 26 the nasdaq off by 23 "squawk box" will be right back. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

gm revealing the electric hummer during the world series phil lebeau is joining s. >> let's bring in mark royce, president of general motors an somebody who has been working closely with the team at gm that developed and built the hummer ev sut, sport utility pickup truck. why a truck as opposed to an suv ev >> good morning, phil. i appreciate the opportunity the truck piece of this, we have done a lot of talking to customers around the truck segment and, you know, when we're debuting our new ltm

battery and our platform called the battery electric truck that will be built here in detroit, this seems like, you know, a no excuses super truck opportunity for us so, you know, with four wheel steering, 0 to 60 in about 3 seconds and 1,000 horsepower, this is a no disputes way to bring back the hummer name plate under gmc for our customers. it makes a ton of sense and we're going to be first. that's important. >> the first price point, if you will, for the first edition, $112,000 some people will look at that, and even in the later years when you get into 2022, '23, '24, it's still going to be over $80,000 for those versions of the hummer did you do that to, a, make sure you turn a profit on this vehicle and, b, of the belief that, look, there is a segment up there of buyers that want

that all electric ev suv, sport utility truck, whatever you want to call it >> you know, actually, the price that we sought for the first edition, which is a special edition is in fact $112,600. we took reservations for the first time last night. yes, as the truck rolts out we will have the entry point at under 80,000 all of the features locked up. you get a ton. in fact, a truck that no one's ever seen before for those price points it was very carefully researched and developed and engineered the production of it will be in our factory zero here in detroit which is our first really truly dedicated all electric factory along with our orient and spring hill c plant for the cadillac. this is just the beginning those price points and that

content level and capability level for the hummer truck just hasn't been seen before. we're extremely proud of that. the creativity of our engineers, designers, manufacturing engineers and our folks that have worked so hard on the lt and propulsion system that is vertically integrated inside of gm it's our chemistry, electric motors, our packs, all of that this is just the beginning so, you know, what a way to start, right >> will you turn a profit though right off the bat on the hummer ev >> yeah. i've gone publicly and said this from our ev since day one, our electric vehicles will be profitable, end of story >> mark, let's talk a little bit about what's happened with nikola i know you have not finalized the deal there where do things stand in terms of the discussions between gm and nikola >> sure. i think you hit the nail on the head, phil

they're not finalized yet. we're excited about the opportunity. we've been developing fuel cells here for commercial use for a while. we have a joint venture with honda made in michigan on our fuel cells we think we have a technological lead on it nikola agrees. the opportunity to put our fuel cells into a clash 7 and 8 vehicle is spectacular we know there's great operational cost advantages. there are great efficiencies and great opportunities. so we continue to work the opportunity with nikola and that's where we are. >> as you watch this unfold, should general motors have done better due diligence regarding some of the claims that trevor milton was making that more than a few people have now looked at, including hindenburg research and said, these claims were not accurate didn't gm know this before they decided to get in bed with these guys >> look, the due diligence was

not only done by general motors, it was done by the entire banking community and wall street community as the company went public. there's a ton of time spent on all fronts so that's all i can really say about it. >> mark, why isn't gm getting enough credit for its ev portfolio? when you talk to people in the auto industry, they're hesitant to make comments about other automakers but almost everybody says the same thing, gm has a portfolio they should be getting greater recognition for. how do you unlock that in terms of what those assets represent >> that's a great question you know, i continually and mary and the whole employee base of gm are so committed to this. we just have to start delivering the product and the manufacturing system and the technology in our battery packs. i think we've seen the first evidence of all of that that you

can touch and feel and now buy so we've got to just keep doing that there's nothing like a product like the hummer ev there's nothing like the cadillac lyric, nothing like all the things you're going to see roll out in these plants where these investments have been made so, you know, we are just on it and we're going to keep on it and the sustainability of a 0/0 approach has been in place for a couple of years. we've got a truck in less than 24 months. we're going to keep hitting it and keep hitting it as hard as we can never give up, never give in in fact, that's where we are. >> mark, one last question. >> sure. >> what's your take on the economy overall? improving auto sales not quite back to where they were a year ago but far better than where they were in april. what's your take for the rest of the year heading into 2021 >> boy, actually, phil, if you look at auto sales and the resilience of the marketplace and the whole industry, it's

particularly impressive and, you know, the demand and the recovery of that has been very linear and very steady and very good so i think the whole industry is very excited about that and, you know, the demand just keeps going back from shutting down all the factories across the industry and it's just day by day, month by month, week by week that confidence in the economy piece of it continues to grow back those are very encouraging signs. we're very optimistic. as you can see across the industry in our dealer ships, across all makers as well. steady as she goes, right? it's a good thing. >> mark reuss, president of general motors i believe you're in the design building in warren, michigan. >> i am. >> with the new hummer ev sut behind us. thank you for joining us guys, this vehicle will be coming out first edition is coming out late

next year and those limited editions, the first editions start at $112,600. back to you. >> did you see the commercial, phil >> i did >> i saw it run live it was very long and very cool, i've got to say. >> yeah. >> right they did a great job on the commercial it's like the front of it says hummer it's a great gm commercial the k i thinkthat's going to get attention. did you see how the vehicle can move at diagonal move? >> i saw when the roof was taken off a certain way. they had a name for it, too, that i was like, wow, that's pretty cool. >> yeah. >> the battery at the end. is the battery technology really, really good at this point, phil? i worry technologically about gm ev and tesla. that's all i was thinking. >> reporter: they're closing that gap very quickly. the battery technology that's in

there, when you talk with third party people, i'm not talking about another company who's going to sit there and disparage general motors or tesla, when you talk to those who look at it independently, they're very impresswide it so far. the key is, you've got to get the volume up. that has to start next year starting with not only the hummer, lyric, some of the other -- they have 20 evs coming by 2023. >> i thought it was cool they decided to go with the hummer name, phil. >> yeah. >> by the end of the last hummers it was a big gas guzzling look at me thing. >> smart move. you cut through the clutter. you immediately recognized the name. >> i'm pulling for them. gm all right. phil, thank you. >> you bet. >> andrew? coming up on the other side of the break, nasdaq ceo adena friedman will join us. yes, the ipo landscape

an interview you don't want to miss. meantime, check out shares of netflix the stock under a lot of pressure after the company missed on subscriber editions and the bottom line. the stock is down 6% this morning. time now for today's aflac trivia question. what percentage of the world's total stock value is made up by e sw wn bcsqck market? thanerhecn "uawk box" continues aflac! now tell me, what does aflac do? aflac pays you money directly to help with unexpected medical bills. and is aflac health insurance? no, but it can help with expenses health insurance doesn't cover! that's right. are there any questions? -coach! -yes? can i get one of those cool blue blazers? you know i can't play favorites. alright let's talk coverage. it's go time! get help with expenses health insurance doesn't cover. mmm hmm! get to know us at aflac.com

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and now the answer to today's aflac trivia question. what percentage of the world's total stock value is made up by the u.s. stock market? the answer, 54.5%. >> pretty interesting. nasdaq out with its latest quarterly earnings beating estimates by 7 cents adjusted profit of $1.53 a share.

also, revenue 24 million above the estimate at 715 million. joining us now with more on those is the ceo of nasdaq adena friedman she's somewhere. we're in the same -- >> we're in the same building, joe. >> we are definitely socially distanced. you're on a different -- >> i'm on the second floor, yeah we're one floor away but we are definitely in the same building, which is nice. >> it is nice. it's like, only us, too. which i really like. we are starting to bring people back here, 10% or so me, you, mack, the producer max and a couple other people. that's the way i like it a huge building in times square and it's mine. >> it's become the joe kernen building. >> i know. we don't need to rush. no, we want people to come back. these numbers, adena, let me ask you a philosophical question should we look at the nasdaq as one of these beneficiaries of

the -- in the perverse way some companies have actually performed better during the pandemic are you like that or are you really just able to sort of do what you've been doing all along in spite of the pandemic or has it actually benefitted >> i would say, first of all, we are really pleased with our results. we had top line 13% approach and bottom line 20% growth when we look at our business, we are leaning into some of the trends that have come through the pandemic one of which, of course, is the market performance but we also have a very strong index franchise. that's one of our biggest growers for this quarter and has been for the year. we've launched three new index products that are in this quarter. nasdaq next gen 100 and we're doing that with invesco. we're launching a water index feature in connection with cme and we've launched a volatility index as well. our index business is

benefitting from the markets we've launched a new product which is an antimoney laundering solution for the industry. we see our business leaning into longer term customer trends but then also benefitting from the market performance in terms of volume we had 105 ipos in the third quarter which is the most of any of the exchanges seen in the last ten years we continue to see a strong environment in that regard as well all of that is benefitting our shareholders. >> some of your fastest growth is not necessarily in your core businesses and that's something that we talked about all the time when you're on.

you're continuing to innovate that way. >> yeah. that's where we're seeing longer term trends in terms of leaning into more advancement. prime technology, more advanced market technology and more advanced analytics all of those things are areas we're making long-term investments in and they're paying off in terms of growth. we invested in markets next gen technology, power markets around the world, we deploy that in one of our options exchanges in the last quarter. we continue to make sure we're advancing our markets while we're also really focusing on the areas of long-term growth in the country. >> andrew? >> adena, i want to get your thoughts on the frenzy of spacs we've seen over the last quarter and whether you think it's an indictment of the ipo process given that so many companies clearly are wanting to use this

approach as opposed to a traditional ipo. >> i look at it differently, andrew there's been innovation in terms of capital raising methods we have spacs and ipos they have been around a long time we have seen a significant uptick they are launching them and finding a combination and bringing a company into a public market i look at it as a great innovation in terms of being able to continue to offer corporate clients the ability to tap them we've had almost 200 ipos coming to nasdaq thus far we have seen 137 companies operating and coming to market share. for us, that's an 80% win rate of all of the companies that have come to market. then you have the spac landscape

which gives companies the chance to say, i don't want to take the risk of how investors will invest i will do a combination of a spac manager and i'll know what the valuation is going into the public markets and that gives them more certainty or they might choose to do a direct listing where they want to raise money but they go direct into the market today there are more choices for companies. >> adena, are you long the spac market in large part the fee structure is so much better than just about anything else you can do right now. in fact, some people say that this is a compensation scheme massacre raiding as an investment strategy for the sponsors the question is if there is compression ultimately on the fee structure whether some of those big name managers will actually ever want to be involved in this business.

>> i look at it as the managers are raising capital. they can raise in the markets with professional investors and the private markets. they can do that on a regular basis whether they're a vc manager. private equity manager at the end of the day they're still going to be held accountable for the returns they can generate whether in the private markets they do it in a co-invest vehicle which is a single company vehicle or they do it through the public markets through a spac, they will be held account abable because the investors have a chance to vote on whether or not they support the company. the investors have another say before the spac gets populated they have to go through the normal process of being vetted by the sec or nasdaq before they come to market

i do think there's a vetting process and there is an expectation and accountability for the manager as well. >> all right, adena. we've already spoken about this. i know you have an answer for me probably i'm not going to get anywhere with this i love your inclusive capitalism, we're doing new things, capitalism 2.0 so your inclusive capitalism, i love it because it means you're going to include more people in capitalism you're using the same capitalism that's generated all of the wealth, it's not a software reset for capitalism, it's not -- it's just -- i think a lot of it is virtue signaling. all you're really doing is bringing more people into what is working and what's made this the greatest economy in history. >> right i have to say, joe, i think you

and i are in agreement. >> okay. >> capitalism is a great system. it's a matter of making sure everyone has equal access to it. that's where the execution of capitalism is. >> okay. i'm with you on that i want that to happen. >> we want to make sure that more and more people have that equal opportunity to take advantage of the great system that exists. >> john hope bryant was on this week talking about unbelievable entrepreneurialship he's trying to engender and that's the way we're going to do it. >> that's exactly right. our entrepreneurship are the types of things we need to do. >> you're not going to a non-profit i was kidding you about that you're okay? >> very good where i am, joe. >> you're bragging about these numbers of increasing profits. >> absolutely. we're delivering to our shareholders i feel very good about that. >> no guilt? >> no guilt. >> all right hiring at the red cross.

anyway, thank you. we appreciate it thanks for playing along it's because we -- we spoke here >> i think that one day we'll be able to do that again, joe i'm looking forward to it. >> looks like you really are thanks, adena. >> verizon, andrew. we have earnings news crossing the tape as adena was finishing speaking verizon out beating by 3 points. revenue coming in slightly below forecast increasing the full year forecast looking at that stock up about 1% on this news thus far ceo hans vestberg will join us an interview you don't want to miss becky? >> andrew, just one of the numbers looking at for that. their consumer and business groups reported 144,000 total

fios internet net additions. that's the most fios internet net additions since the fourth quarter of 2014. that's a number we're following with all of the internet companies. as people are working from home and so much more need for broadband. when we come back, autonation's ceo mike jackson. we'll beig bk. rhtac ♪

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autonation out with the quarterly numbers. adjusted profit $2.38. that is well above the consensus estimate of $1.65. revenue beating the forecast gross profit margins, 64.4%. that's 800 basis point increase from just ayear ago. mike jackson is here mike, explain that what happened? >> becky, good morning how are you? yes, it's our absolute best quarter ever first, from the bottom of my heart, i want to thank all of the autonation members who put

on their masks since april and take care of our customers the results are driven by a significant shift of the american consumer towards personal mobility. they have rediscovered it gives them a sense of security, independence and freedom and coming out of the lockdown that, you know, so much for sharing everything i'd really like to have my own space and i want more of it. and you see this shift in the consumer mindset impacting housing, home care and most importantly retail now combined with that we have a shortage of inventory. plants are closed for ten weeks and they're gradually ramping up but industry inventories are 25, 30% below where they should be, if not even more

so it was challenging to adjust pricing to reflect the shortages. we cannot forget housing our customers absolutely just love it. i think rates are going to be low for years. so you put it together, this shift, pivot to personal mobility sim pollized by the american automobile combined with low rates gave us very, very strong performance. also our investment in digital as you and i, becky, have talked about over the years have given us the ability to operate much more effectively through higher productivity you have increased gross profits and you have the best quarter in the history of the company. there are so many things i

want to dig into here because this is fascinating. i've been looking forward to talking to you about this, mike. we have chronicled with phil lebeau about the used car prices skyrocketing inventory 25, 30% below what would be there how long do you think the high prices last for used automobiles? how quickly do we get inventory of new cars in >> here's the point, becky this demand shift that i'm talking about is across all price points, across new vehicles, across pre-owned, across the entire spectrum of individual mobility. that's the headline. the demand for individual mobility has gone through the roof and, you know, i think this pandemic/delta in place has shifted the american psyche in a long-term way and it's hard to

predict past five years. in the next three to five years there has been a shift in demand as far as the inventory situation, that will drastically improve. it's always as a retailer a balance between pricing and volume and we're managing that well as we can do a bit better, we'll adjust to that, but net net we'll either sell more volume and adjust pricing or the availability is not there and we'll get it on the pricing side. >> so do you think prices will still be at the elevated levels, let's say, three to four months from now >> well, there's no question that the demand will be there three, four months from now. i think we're in the first quarter, if not the second quarter depending on the manufacturer until availability will improve they made absolutely no progress in the third quarter our inventory is lower in the

third quarter than first quarter. imagine you have a complicated global supply chain. you had to put social distancing in all the plants. we all had protocols to keep our workers safe, and if something happened there's an interruption in the work. also, shipping and transportation is extremely difficult on the supply chain, even getting begin fished units to us. so i think we'reinto next year on the supply side the demand will still be there next year. >> mike, questions quickly you have an idea about how the consumer is feeling. this might be a more difficult environment to try to figure things out people have gotten stimulus checks and the aid has kind of dried up i don't know how you can kind of read the consumer real time. secondly, if you think people are into the idea of individual mobility and putting the money down, this is a serious shift for the american consumer, what's that mean for uber and

lyft >> yeah. well, i think if you look at the ridership levels for individuals, i think it's way down now combined with all of this, uber eats or other of those services are through the roof, but if you think about it, it's the same american psyche, you know i think that's going to last twice on time. to be clear, i'm not so sure for the auto industry about the fleet business next year i really don't know. the retail component which is like 70% of the industry will be strong next year >> very quick, 20 seconds just on the consumer. they're showing up in trucks right now? >> it's truly a tale of two cities and you see the consumer is focused on prioritizing certain things and if you're in the

category of prioritizing, you're doing very well. so they're spending money on housing, automobiles, fixing their homes. anything that they control if you're an airline, cruise industry or in the travel/hotel business, it's difficult and i think it'll take a vaccine for that to begin to gradually come back next year >> mike, we see it in your results today. want to thank you so much for your time and look forward to talking to you again soon. >> great thank you, becky good to see you this morning >> you, too. andrew okay coming up, we're going to talk the elections, stimulus, your money and so much more later, the business of robots. the ceo of boston dynamics is going to join us to discuss how they are helping during the pandemic eiu're not going to want to miss seng this. "squawk box" returns right after this ♪

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welcome back to "squawk box. i'm dominic chu. we have a combination of social media and stay at home media shares of snap are soaring around 23% roughly 840,000 shares of volume pre-market the company behind snap chat still strongly bid after a big quarterly earnings report after yesterday's close. this morning analysts at truist are upgrading from buy to hold

and playing catch up with a boost from 23 to 25 bucks. they cite trends in users and it will lead to sustainable profitability in the coming months and quarters. also then you have shares of pinterest which are up around 7% pre-market on roughly 205 shares of volume. another social media company getting positive mentions at bank of america and goldman sachs. goldman makes the same call. both cite better user trends bank of america's price goes to 58 points from goldman goes to $61.47 i'll send things back over to you. >> okay. thank you so much, dom, for that want to start talking about some of the other big stocks that are on the move this morning steve grasso is with us, director of institutional sales at stewart frankel cnbc contributor

let's talk about how to play a couple of these. verizon reporting this morning what you do mado you make of it? >> verizon has not done much to get the investor's attention verizon down and at&t has been getting demolished that one is down considerably and the chart is terrible. at&t is down i think 31 or 32% making its yield just under 8% so people are buying these for the yield but they're getting wiped out in capital very quickly. so how about if you look at where you don't get yield in the telecom space, which is t-mobile they took out sprint they're up dramatically this year they went from being the top three, four, now they're the top three. they're competing with at&t and verizon but it's not a real sexy place to be as you've noticed by

the year to date space >> so that's all true, steve, but the question i look at an at&t and i say to myself, okay, either the whole thing is a disaster or maybe it's a value play >> oh, i agree with you on that. i wasn't -- thank you for asking that follow-up because i believe at&t is worth buying and i do like it as a value play, but people get caught up in this, oh, i want to buy it for a yield, and then two days later they've lost three times their yield. so i think what you need to do is say, okay, i have a longer time period, which is what you're suggesting. i would agree with that, that at&t is probably worth taking a stab at here. >> let's talk about netflix. it's been a blockbuster for so long didn't meet expectations maybe the expectations are too high these days in terms of how you can even ever get there, but how do you look at the stock now? >> yeah, this one got ahead of itself obviously oncor roneaso

on corona and shelter in place they should continue to raise prices when we first chatted about this we thought you were going to have two or three streaming plays. it's more like you're going to have ten streaming plays so i think joe had said you end up cutting the cable box but you end up spending more on streaming monthlies. i think that's accurate. netflix you have to look at it like this. netflix spends a boat load of money, but they were way ahead of corona because they had a lot of content already done and already ready for the streaming process. so i think ultimately it will be okay, i just don't like investing in the high flyers now going into an election year or an election process. i don't like this. there's plenty of reasons not to own tech right now, andrew cap gains are going to be

double marginal rates are going to be increasing you had a boat load of profit in all of these tech plays. why not unwind it with the suggested spending that we're going to see i think you're going to see people dump their tech and wind up buying, as you said before, the value plays and the chemical space and the paper space and the industrial space where those have lagged at valuations. go ahead >> let me throw one other tech name at you because we've been talking about their earnings which were way better than expected and that's snap who said facebook's a monopoly snap seems to be doing quite well all of a sudden >> right snap is not headed to these judiciary meetings so i think that is -- and when you see -- i said this last night on the show when you see a stock pop over 20, this is crazy that it caught the analyst community this off

guard. jeff f jefferies were at the top of the heap on ad spend that is correct, it was them and facebook it went from low 20s or even 14, 15 when i first got involved i no longer own it and now it was just seen as a filter for young kids. now companies within corona environment are using it for advertising. so i think this one caught the analyst community off guard. it probably moves sideways to higher for just a bit, but i wouldn't be a buyer here. >> okay. steve, a lot of people putting that filter on and sticking their tongue out and seeing a lot of green, a lot of money right now. we appreciate your time and your perspective on all of it i'm going to send it over to becky. >> sticking my tongue out, too when we come back, senator marcia blackburn will join us to talk about the latest pressure out of washington on names like facebook and google. that's next. plus, boston dynamics robot

spot is getting a face lift. the machine's newest upgrade with the company's ceo we'll be right back.

good morning the nasdaq just snapped its longest losing streak in a year. futures are muted this morning investors feeling some uncertainty over stimulus as the house and speaker -- as the house speaker and the treasury secretary, they are still talking. meantime, dow component verizon topping third quarter profit estimates and raising its guidance. plus, investors pummelling netflix. we'll get you up to speed on the latest wall street earnings. and see spot there for othe others the robot helping health care workers weather the coronavirus. the final hour of "squawk box" begins right now.

good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures are little changed this morning although we are seeing all three in the red now. see the dow down 30 points nasdaq off 29 or so. s&p down 5 and change. you can say the earnings parade is slowing but today not a lot netflix important. stock's down verizon, 10-year note .81. there was a time i thought an 8 handle was good. >> decades and decades ago i know their first mortgage was 8.5%. >> double digits. >> now look. >> .8. surging. cranking the economy >> right

let's get you caught up on some of the stories that investors already talking about today. some of the things joe just mentioned. verizon earnings out a couple of minutes ago. beating by 3 cents with quarterly profit of $1.25 a share. verizon also increasing its full year guidance and adding a greater number of phone subscribers than wall street had expected stock is up by 0.4%. don't miss the first on cnbc with interview of hans vestberg. netflix taking a share after they posted a lower than expected profit. it was netflix worse ever miss the company saw the weakest subscriber growth in three years. you have to remember, they really built things up for the first half lots of people subscribing as we got into the lockdowns stock this morning is down by 5.3% we will talk about netflix later this hour. on the other side of the ledger, shares of snap are surging.

social media company reporting stronger than expected user growth in the latest quarter revenue above expectations and an adjusted profit of 1 cent a share. had been looking to are a 5 cent loss a share up a massive 21.5% these are teenagers they're not using it they can't go out anywhere and this is what they turn to. joe? >> indeed. all right. thanks, beck. less than two weeks now until the november election and some brand-new cnbc polling data shows a tightening race in two key battleground states. eamon javers joins us with the latest states of play survey eamon, i think i heard about this yesterday afternoon from my son immediately it hits. i think i might know -- >> yeah. >> -- right when you know, i think so >> reporter: you might you have pretty good sources around the building. >> yeah. this is at home. around that building yeah, i heard about it tell us about it

>> reporter: yeah, look. what we're seeing is that joe biden maintains a pretty substantial lead nationally but take a look state by state at these six battle ground states we've been tracking throughout the entire election season what you see is a very tight race in a couple of states maybe a widening gap for joe biden which would put some states out of reach it would seem for the president of the united states. let's go across the country starting in arizona, 51/45 for biden in arizona wisconsin, 52/44 for biden in wisconsin. florida, michigan, 51/44 this gives you a sense why they're spending so much time in pennsylvania 49/47. such a huge, important battleground state in north carolina, 50/47 that's relatively close as well. you can tell why the candidates are spending so much time in those two states overall biden is leading in these battleground states, 50/46

as the president's job approval continues to decline he saw a tick up over the course of the summer. now he's back down to 46%. in terms of the handling of the economy, this is a traditional strong point for president trump. 49% approve of president trump 51% disapprove of president trump on the economy that is yuntd water. that's not the direction the president wants to be going in guys, what we saw in the latest survey is nearly 40% of people have already voted this is an overwhelmingly late stage in this game right now there's not a whole lot of time for the president to turn that around but, of course, we have the debate coming up on thursday that may be the last big inreflection point for the president to change direction in the key states, guys back over to you. >> eamon, is this the first time we've seen president trump below water on the economy, eamon? >> reporter: yeah. the economy is his traditional strong point

it's not the first time but it is the first time we've seen it in a while he was under water on the economy in june as the fallout of the coronavirus was rippling through the economy. then he was able to right the ship and get back with his approval higher than the disapproval through the course of the summer. now that number has turned south on him again and as i say, that's his calling card, the economy, that's what he hoped to run on he voices that frustration at the rallies time and time again. not good timing for the president, but like we say, there's still that debate coming up tomorrow night. that might be where you see the president putting distance between himself and biden on the economy. >> eamon, thank you. andrew. >> you bet sticking with d.c. house speaker nancy pelosi and treasury secretary steven mnuchin made some good progress on coronavirus stimulus talks yesterday. that's what they said. major differences remain that's according to white house chief of staff mark meadows.

pelosi and mnuchin are expected to speak again today even if they can strike a deal, it's unclear if congressional republicans will go along with it want to welcome senator marcia blackburn from tennessee senator, good morning to you i'll ask it straight up and down, if the president and treasury secretary reach a deal with the speaker on a deal, would you vote for them? >> what we're going to do is put our bill that we have already had on the floor black on the floor and give the democrats the opportunity to address the issues that most people say we need to address. more ppp, plussing up unemployment, money for vaccines, testing. we're looking forward to having that on the floor and i'm looking forward to voting for it >> so just so we're 100% clear if in fact a deal is reached between treasury secretary

mnuchin and nancy pelosi, the speaker, and they come up with a deal, that is not a deal that you'll support or it is a deal you'll support >> we don't know what kind of deal they would come up with what we do know is that we have a bill that has been there in the senate it's a great -- pardon me, it's a great bill it's about a $500 billion bill we're repositioning $350 billion of the c.a.r.e.s. funding and that is the direction that we should go. it pluses up that ppe. it pluses up the unemployment. money for vaccines, testing, liability protection is something that i hear from every tennessee business out there that they want to see us address. >> i hate to keep pushing on it to try to put a fine point on this you have both of these -- you

have the white house negotiating for weeks now over this but it sounds like they don't necessarily have your buy in and that seems troubling no >> it is not troubling to me if they're going to come up with a $2 trillion bill that is going to put money on items that are not needed directly related to covid, then that is not a direction we should travel when i talk to tennesseeans and tennessee businesses, they are quite explicit another round of ppp plussing up on unemployment. addressing testing, vaccines, getting people back to work, getting children back to school. this is not the time to be bailing out cities and states that have mismanaged themselves. it is not the time to be

addressing marijuana sales or usage or research. this is the time to focus on getting people back to work and children back in school. >> to that point, let me ask you. the white house, it has been said, has prevented about $9 billion from being spent on testing. money that was earmarked for that but the white house has thus far prevented that money, at least that's been the allegation, from being spent how do you feel about that >> i have not heard that stat or figure but i'll be happy to look into it and get back to ya >> okay. let's transition there's so much going on that we want to get your views on in part because you are a member of the senate commerce committee which will hold a hearing on big tech ceos a week from today. wanted to get your reaction to the department of justice case against google >> yes

we had all been waiting to see what doj was going to say about google and how they were going to move forward, and of course we know that the lawsuit against them centers on search we also are getting a better look at some of these anticompetitive deals that google has put forward with developers and one of the things that we want to make certain as we go through this process is that we have a competitive, innovative marketplace and if you're going to have google transacting these deals where it is forestalling competition, this is something that, yes, we're going to look into this. the hearing that we're going to do -- by the way, we had subpoenaed these ceos with a

unanimous committee vote a couple of weeks ago, nearly three weeks ago, and now they have decided to come voluntarily to the committee that's a good thing. next week we'll be able to delve into the practices on privacy, section 230, antitrust >> let me ask you about that i've read the entire complaint now and, you know, you talk about the free market. it looks to me like this was the free market of play. yes, they were effectively buying or paying for default privileges in terms of where their search were to appear. it's unclear what the answer were to be if i told you google can't pay that money, it's not so clear that somehow, you know, apple is going to start using bing tomorrow as their default unless maybe bing is going to pay them. then you're back to square one

because you have people paying for chef space which has been going on for years. >> what you're looking at, you have the chart on the screen with the market dominance with google and they are at that 94% market share and then you have duckduck, yahoo and bing with a 2% market share. you look at how google has moved to this dominance in the marketplace. and the bundling that they have practic practiced. the way they pushed against developers or worked with apple or mozilla this is -- it is proper and appropriate that we delve into th this we'll begin that process with our hearing next week. we'll see what happens with google people really are -- and i have to tell you, i think that much

of this has been driven because now so much of americans' function aal day-to-day life has moved online with zoom meetings, work from home, children doing classes online and they're paying more attention to the data mining and the lack of privacy that is happening online plus the preferencing google does in their search model so it's a -- the right conversation for us to be having it is the right type hearing for us to be doing and this is an issue that across the political spectrum as you can see with our committee there at commerce, democrats and republican, a unanimous vote to bring the ceos in front of us. >> senator blackburn, we always appreciate talking to you. we look forward to watching that hearing and following the

process and seeing what happens next thank you. >> absolutely. thank you. >> becky >> andrew, thank you when we come back, robots can pick up computer viruses but not the coronavirus. so the global pandemic might end up being their time to break into the mainstream. after a break we'll speak to the ceo of robotics firm boston dynamics check out some of these new robots, too. take a look at shares of autonation revenue beating the street, too. we've talked to mike jackson he said there's a situation where there's demand for individual mobility. everybody wants a car. there's not as much supply they had their best quarter ever stock is up by 6.7%. stay tuned, you're watching "squawk box" on cnbc ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans

is always part of the plan.

we're totally excited about the opportunity. we've been developing fuel cells here for commercial use for a while. we've got a joint venture with honda made in michigan on our fuel cells we think we have technological lead on it nikola agrees. so the opportunity to put our fuel cells into a class 7 and 8

vehicle is spectacular so we know there's great operational cost advantages. great efficiencies and great opportunities. we continue to work the opportunity with nikola and that's where we are. >> that was gm president mark reuss earlier on this hour in "squawk box." don't miss a doubleheader tonight on "mad money. joe? >> thanks, becky if you ever watched any "squawk box" you'll recognize the boston dynamics robot spot. take a look though, spot is getting an upgrade in the time of the coronavirus it's also being used to help take care of patients. joining us to talk about new robotic applications for a pandemic world is boston

dynamics ceo robert plainer. there's about 300 spots deployed at this time. >> we're just approaching our one-year anniversary from the launch we have 300 robots out in the field with customers and one of the needs was recharging station so that that's the dock so that the robot can automatically go back and recharge itself and then continue on its missions. that allows spot to cover a much broader range and be located remotely and autonomously.

the arm is a module that we can add to the robot that lets it actually do work it will be able to open doors, drawers, throw a power switch, turn a valve you can remotely dial in and if there's an issue and it needs a little manipulation, the robot can do that for you. >> so it's 75 or approximately base level what is it with the arm and the docking? what would spot go for at that point? >> we haven't figured out exactly what the pricing is going to be for those additional items. they would be ad-ons above soft of the explorer option we're calling that the enterprise version, especially when you add the recharging station and that arm >> you also -- we'll get to the pandemic uses, but i just want to quickly mention this alliance with trimble where you're going to be able to actually --

unfortunately i think there's people doing this now. it's the way of the future, i understand that. can you explain the alliance with trimble and what that would allow you to do at construction sites? >> yeah. we're very excited about this partnership that we just announced yesterday. trimble is one of the biggest manufacturers of precision scanning and surveying and by mounting that equipment on spot, you can repeatedly and even continuously collect data on your construction site and so, yeah, people are doing that now, but i think to increase the data rate that we're operating a construction site with, you might want a robot that's doing it every day, for example. >> exactly what -- none of us obviously would like to be around covid and the greatest heroes we have

are people that put themselves in that position how has spot taken some of the onus off of people for dealing with the pandemic? >> even on construction sites, you know, they're trying to control how densely workers are located there. so i think if you could have spot collecting some of the data that would normally require people to be there and do it in a remote fashion, can you get the same data or better data and have fewer people on site. that's generally true about all of these mobile robots in the logistics space. same deal. a lot of workers packed into logistics, you know, infrastructure of the country. if you can reduce that somewhat by having robots doing some of the repetitive menial tasks, then maybe you can reduce density. >> so that's a point that you make and you made it in an op ed for us last month i think. it was a different op ed, if

you've written one for us. it's not going to take away jobs it's going to make the jobs that humans perform safer and more efficient? >> the reality is two days ago "the wall street journal" reported the partial delivery infrastructure is already at capacity they can't get enough workers in place and keep them safe and reality is these robots still need to be managed by people so we don't see it as taking jobs but really elevating what they do, allowing people to use their true intelligence and common sense which robots don't really have and manage them at infrastructure operational. >> given the internet of things and where technology is moving, i can think of dozens more ad-ons to spot i guess you have a whole division trying to figure that out at this point, right >> i think it's one of the interesting things that we built spot as a platform that has

software and hardware interfaces so that you can build different kinds of pay loads i saw one the other day, there's a radiation sensing pay load so for when spot goes in and look at a nuclear power plant again, you know, the arm and different manipulators there's a lot of options and we're working with over a dozen companies building applications on top of spot which they have expertise for. we provide the mobile platform. >> john, i don't mean to sound cute with this, but with artificial intelligence making such leaps and bounds, i really do wonder, do they have self-awareness is there a point where they will have self-awareness. how far away are we from irobot? >> they're a long ways off they can get around, they're mobile, they can avoid

obstacles. they still don't have common sense. something silly might happen that any person would recognize instantly but the robot hasn't been trained to recognize that that's why it's important to deal with the common sense kinds of intelligence that robots aren't capable of. >> you actually are saying that most people do have that common sense that robots are missing? have you not been -- are you following the election season this year? >> not talking about politics, i'm talking about whether or not a bot can get it. >> you were picking on spot. i think it's a lot closer than you think between spot and humans. >> spot has a kind of intelligence that we worked really hard to build in. we call it athletic intelligence it's an intelligence about the way its body moves in the world. it was really hard

there is real intelligence in the world. we've had it since 2, 3, 4 years old. >> no, we haven't. i don't have any athletic -- robert, thank you. appreciate it. we look forward to years in the future to see exactly what spot is up to thanks, robert >> andrew? when we come back, hot issue on the campaign trail. most americans want higher taxes on the wealthy coming up next, you'll hear about one campaign against this in the midwest that the 1% appears to be winning. ay tuned, you're watching "squawk box" on cnbc . the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward.

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americans broadly support higher taxes on the wealthy, but you might not know it in illinois where a few billionaires seem to be winning campaigns to stop rates from rising robert frank has more on that. >> good morning, becky in illinois a proposed tax on high earn er faces a battle. they are voting on a ballot measure that would replace the state's flat tax with a graduated tax. that would allow higher taxes on the higher earners

the state's billionaire governor j.d.pritzker is spending $56 million of his own money to support this change. on the other side you have hedge fund billionaire ken griffin spending $20 million to defeat the measure. he joins two others against it a recent poll backed by pritzker showed the measure had 55% approval that sounds good but it is well shy of the 60% of voting that it needs to pass. opponents say the tax hike wouldn't -- that voters don't trust illinois politicians and the government with $3 billion additional a year in revenue pritzker's group saying opponents of the fair tax receiving millions have don't

want to have their fair share in taxes getting their message out. >> robert, i would guess a big part of the rub comes on how you describe what wealthy is i know on the national level joe biden's looking and saying anybody making more than $400,000 would pay taxes what are they going after with this particular potential? >> this ballot measure doesn't set a level, it just says, look, you can have a graduated income tax rather than flat tax the next step they proposed starting at $250,000, raising it from 4.95 to over 7% and those over a million would rise to 7.95%. 250,000, which is the top 3% in illinois those are the folks that would face the increase. so much lower bar in illinois than we would see in the federal level. >> yeah. i guess the potential of this is a graduated thing. people thinking maybe they come

to me next even if i'm below 250? >> that's right. that's a big part of it. they've been saying, well, it's not just those over 250. it could affect the retirement income, it could affect your job. that's why even those who wouldn't pay the tax are voting against it and why this campaign has been effective, even for those that won't be affected by the way, everyone under 250 or most of them would get a tax cut. so you would think this would be more popular than it is. >> robert, thank you >> thanks. coming up, inside netflix's worst earnings miss ever what went wrong for the streaming giant in the third quarter? is it really something to be concerned with long term the results mean tough days ahead for the biggest competitors of netflix osguthe ys stay tuned you're watching "squawk box" on cnbc ♪

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coming up, two tech stocks two different directions this morning. os'll talk netflix and snap with clely followed analyst rich greenfield that's next. "squawk box" coming right back

welcome back to "squawk box. netflix just reported its worst ever earnings miss investors not fans of the quarterly results. jool ye jewel gentlem julia boorstin is live was it netflix or the analysts, julia? >> reporter: expectations were certainly high and netflix shares, we see them plummeting on the biggest earnings miss since netflix went public. those earnings falling short

knelt flicks it's always about that subscriber number it fell short of the company's already lowered expectations the company added 2.2 million subscribers in the quarter and guided the addition of fewer subscribers than anticipated that's not all looking ahead to next year, netflix warns of very tough comparisons. co-ceo reed hastings saying he's not concerned about competition. >> we compete so broadly, we compete for time against, you know, tiktok and youtube as well as hbo as well as fortnite, so really the limit for us is what's the quality of our service? how often -- how many nights -- when you say, oh, my god, i want to go to netflix and watch the next show. >> in contrast to netflix, snap shares soaring beating expectations across the board.

snap's revenue growing 52%, more than double the growth rate that analysts projected with a surprise profit of 1 cent per share compared to the 5 cent per share loss that analysts anticipated. the company's daily user growth of 9 million new daily active users far surpasses guidance with 4 to 6 million daily users. fourth percent growth is 50% is attainable projecting 19% will continue into q4. becky, what's interesting here is snap has really benefitted from covid pushing advertisers to try their augmented reality ad formats there was a subtle dig at facebook sounds like they may have benefitted from the facebook ad boycott. >> wow julia, stay here we want to bring in another voice to the conversation as well rich greenfield joins us he's partner and co-founder at light shed partners.

i want to start with netflix and then we'll get back to the snap story. netflix, you say the real story is that the bear story is gone these are disappointing numbers. it comes after a very strong first half for the company for subscriber ads. >> yeah, look. i heard the commentary you were looking at with the biggest miss in the history of netflix. this is a company where people are very focused on the subscriber trends. the subscriber trends far outsided the miss here the real story people should be talking about is not only are they generating substantial free cash flow this year, but even next year's production is in full swing again, they're talking about they may be at break even free cash flow. the thesis on netflix for years was that they don't have the money to finance all of this content. they're going to run out of capital. they won't be able to finance or raise capital. that was the bear thesis

they're self-financing the view that netflix has a capital-raising issue is now gone and if you start to look out over the next few years in terms of their pricing power, you're starting to see the move off pricing in canada, recently in australia we think the u.s. will happen in q4 or early q1 pricing power and all of a sudden you don't have any cash flow needs in terms of having to raise capital, this thing will generate dramatic free cash flow you'll see this scale to billions and billions of free cash flow per year missing numbers is never a good thing for a stock. i get why it's down today. makes sense that it's down it's had a huge run. i think this is more about consolidating as it continues to move higher. >> to that point, i think the company said on the call if there had been another 48 hours in the quarter, they would have met their projections or even exceeded some of their projections on this. rich, when you see a pull back

of 5.3% today, does that represent a buying opportunity given how much the stock has already run this year? >> absolutely. i think the thing you need to be thinking about, becky, when you think about what's happened over the last -- sort of like six weeks, what's really become clear? one, the pandemic isn't just disappearing you're seeing it flare-up again in the u.s you're seeing it flare-up across a lot of europe. even parts of australia, asia. this is not going away we're all more home bound in terms of kind of entertainment activity for a longer period of time unfortunately over the course of the next six to nine months at the same time, the movie calendar has cleared out all of the movie studios have delayed all of their content into second half 2021 if not into 2022. so the path for netflix, the runway, has been completely cleared. they have a ron howard movie,

"hillbilly elegy" and no other competition. i think that will bode well. >> there is no alternative. >> there is no alternative rich, let's talk about snap and this other story that julia just set up with it. >> incredible. >> you did say a year ago today that you were initiating coverage on this stock with a $20 price target you took some heat for that. obviously we're well past that now, especially with the gains that we see overnight on this. is this a pandemic story you think about kids who use this so heavily not being able to do so many other things they would. very few outlets for where kids can spend their attention these days is this something that outlasts the pandemic >> sort of the funny thing is that this wasn't really about user growth in the u.s daily active users, which is the dau metric, the u.s. was flat. this wasn't about skyrocketing

numbers of users in the u.s. overseas i think they grew a lot in india and that was very helpful. the real story here is that advertisers are embracing snap chat and i think the team that's been hired, jeremy gorman who came over from amazon, peter nail lor from hulu, they have done an amazing job of showcasing to advertisers the power of the snap chat audience. this is a very tough audience to reach on linear television it's hard to reach this group. they've done a great job showcasing that. they said they had a record number of new advertisers come on board there's still a fraction of facebook i'd say the trend here this is not just snap chat this is helping facebook, helping pinterest, helping twitter. there's something going on fundamentally where advertisers because of covid i think are shifting faster away from traditional evening television and looking for how can they reach this audience, especially a younger audience, more and

more content on places like snap chat obviously there's a lot of up side as you think about growth they talked about 50% growth in q4 which i think you mentioned was their guidance commentary. they exited the quarter growing in the 60s if not mid 60s. feels pretty conservative especially if we're going to be locked -- not locked but certainly more home bound over the course of the next several months which is going to mean the ecommerce trends broadly across the market. it will continue to be a tail wind it speaks to evan spiegel has done a great job bringing on executives it was a $5 stock and it was dying. they have morale up. people are excited advertisers want to be there now. >> julia >> reporter: yeah, i think what's really interesting, becky, you asked if it's a covid story. i think the covid story is about the advertisers. rich mentioned this, but it's

really about advertisers being pushed to try new formats. the advantage that snap has, it has all of this augmented reality technology that was first only useful for the fun filters that were just for fun they were not revenue generating now those filters are being used to help sell things. we're seeing such a broad away of advertisers say, okay, i'm not going to be putting my ads on tv. i'm going to look for a measurable way to reach and invest in my younger consumers let's let them try on the nail polish with an augmented filter or try on the glasses. there's a whole group trying to figure out how to leverage the tools. if the tools are working, which it seems like they are, then that can benefit snap and convert the advertisers more personal nebtsly, becky. >> julia, rich, thank you. great to see both of you. >> thank you >> when we come back, we'll get jim cramer's first take on the trading day ahead. as we head to a break, check

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breaking news from fed governor lael brainard steve liesman has the headlines on that. steve? >> thanks. lael brainard out with one of the strongest warnings yet about what happens to the economy without additional fiscal support. she says looking at the current unemployment numbers and jobless claims, the recent rise in claims, she said the pace of job market improvement is decelerating and the number of permanent job losses are on the rise and she sees a decline in labor participation of prime age women and saying there is long-term implications for that. goes on to say that persistent unemployment can hurt the economy's long-term growth potential and also says that households are unlikely to be able to sustain recent consumption levels without additional fiscal -- she calls

for additional fiscal support, saying a lack of it is -- here is a quote from her speech, saying withdrawal of fiscal support would allow recessionary dynamics to become entrenched. back to you. >> steve, thank you. i'll take it let's get to cnbc headquarters, jim cramer joins us now. netflix is one of your magnificent seven, jim did you have a hateful eight >> hateful eight >> you should have a hateful eight. >> they would all be oil companies. occidental, yul brynner. >> did netflix become more magnificent after this morning >> yeah. look, down 30, down 50, down 70, just go buy it was anyone on the call they said all the stuff they were going to say, they said they would, and then they gave you a slate -- and they give outnumber of people who watch

things i mean, holy cow i found myself looking at -- maybe i want to watch the hillbilly thing, i don't know. there is the watcher, the witch -- geez, the lineup. that is one of the most impressive ads for netflix, that call the buyers will come back. maybe they wait a day, maybe there is some big seller out there that says i want to ring the register it is really just another assault on netflix that will prove to be wrong. it is a good quarter. >> does faber not know you're doing a broadcast, just walked right behind you >> i know. >> could care less. >> i was going to ask him a question, but he's got the mask on. >> just tv this is tv little respect here. anyway, jim -- >> he says he feels weak when he wears the mask >> faber does? >> yeah. he feels weak. >> he looks like a little -- >> unlike someone else. >> not --

>> idiot dr. fauci lately, david. >> he looks look a capital v with his -- i've seen that -- he does the butterfly, man, he just -- >> butterfly, more than bob hope does it. >> still fixated on the attack on fauci the guy is like that -- i was going to give him the nobel prize for medicine, instead i found out he's an idiot. >> he went from faber walking behind you to -- that's skillful >> fauci, like, you know, one of those things what do you call that? guilt by association. >> freudian slip maybe >> the liesman thing was interesting. i want -- damon john was on last night. black-owned businesses, 41% failed during this period versus white 17%. we don't need a stimulus how is that possible it is because of the fact that these places need stimulus let's get going. >> all right, jim. thank you. we'll hear more at 9:00, i'm sure

thanks andrew >> thank you, joe. we got a lot more to talk about in terms of the markets as we approach the opening bell on wall street in just a little over half an hour. jeff mill is chief investment officer at brynmark trust. we're trying to make sense of how to play the next two weeks, maybe that's the question. how do you play that with the potential of the stimulus out there, if you think it is even happening, and then the election right in front of you. >> good morning, andrew. that is the big question, the question we're getting the most from clients let me start here. it will be a nonanswer answer to start and then we'll get into more details i started with this quote yesterday during the cnbc fa summit it is all of humanity's problem stems from man's inability to sit quietly in a room alone and that's everybody's problem right now. everybody is sensing this change everyone wants to do something in their portfolios. mike santoli wrote an article not long ago, what he said was,

look, to use the election, to use the next two weeks as a catalyst for making specific investment changes is just so difficult. you have to game out who is going to win the election, the makeup of congress, the policy priorities, the impact it is going to have on the economy, and all the way down the line. i think to be able to could that without the benefit of hindsight is just so, so difficult >> right jeff, let me ask you about this, if presidenterally as you were o the air there, he said remember biden is going to rise your taxes at a level never seen before, this will not only be very costly for you, it will destroy our economy which is coming back very rapidly you buy that argument or not >> well, look, i think it is a time horizon thing it is interesting, if you look at some of the macro indicators, the ten-year treasury is a good one. in the near term, i think the market is gaming out a biden victory means a larger stimulus. if you look at the debt projections over the next number of years, there are more or less

the same for trump or biden, but the policy mix of spending is so different, biden is going to spend $11 trillion and then have that offset by taxes and savings. so a lot of that is probably going to happen up front in his administration so if you look at the ten year treasury as an example, it has been so highly correlated to the odds of a democratic sweep that i think the market is trying to anticipate what that means for growth in the first half of 2021 i think you get this big fiscal thrust however, i do agree with the president in the sense that looking out past that we're crawling out of this really big earnings hole now. anything that is going to reduce corporate earnings, major increase in corporate taxes, i do think that ends up being a longer term head wind for the market this narrative that a biden win or democratic sweep is necessarily good for the market longer term, i don't necessarily buy that but i do think you could get the fiscal thrust in the economy in the first part of the year, which could have implications for the market >> real quick, do you think if there is a biden win, there is a

sell-off in stocks, temporarily as people try to make good on their taxes? >> yes i do think that that could happen but, remember this, i'll say it again, tina, tina, tina, where are people going to go public pension funds, annual return targets of over 7%, people still need to own stocks, there is a gravitational pull toward risk. you could have near term selling but i don't think it matters that much. >> okay, jeff, appreciate you joining us this morning. thank you so very, very much i want to take a quick final check of the markets right now we should show you right now, the dow off 16 points, nasdaq up about 8. s&p 500 up -- bitcoin is on the rise, pay pal now going to be using bitcoin or allowing cryptocurrency on its system that's big news. we'll also keep our eyes on netflix today, which is hard hit after missing those estimates. make sure you join us tomorrow "squawk on the street" begins

right new. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures essentially flat here as the stimulus waiting game continues. some differences narrow, but skepticism remains it is really netflix, verizon. netflix down 4%, but snap shares surging to what may be an all time high today. >> verizon delivering an earnings beat, continued concerns wiconcer s about a new price war. hans vesburg will join u