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 us later in the program

speaker pelosi remains optimistic about a pre-election aid package. i don't know talks are continuing today not sure how mitch mcconnell feels about all that >> yeah, we got meadows on the tape too making some comments about that we'll get to that in a bit, guys let's start with snap. hard to start anywhere else as they crush the estimates, revenue up 50. rbc this morning says the growth looks less like a v and more look a check mark. and i saw you gave evan spiegel shoutouts on twitter last night. >> i had to. doesn't have a lot of followers. didn't bounce it back to me. unlike there is some people who get right involved like one of my guests today. one thing i found that was spectacular was when i first started the street, we had a guy from advertising, he said, look, the holy grail is to get someone to start using colgate when they're 16 snap augmented reality is all about reaching that age before

they decide, you any, look, it is going to be old spice or going to be whatever, i don't know, church and dwight or clorox, whatever they have and what matters is that you can reach these people, you can't reach them to conventional tv anymore. david, they don't watch the shows because they have commercials, okay? they don't watch the shows because they think the shows aren't any good. they like this and you know it. your kids are addicted to snap. >> they use it to communicate. we use it as we old people use text we're pretty proud of the fact we use text. i can't even communicate with my kids because they're not texting, they're on snap, which i'm not on but, jim, it is beyond just the daily average users, which was daily active users, which increased 18% over 249 million it is the revenue number and the revenue number up 52% to

679 million raises a question as to whether or not they also are starting to get some ad budgets diverted from tv >> that's exactly my point i think they are and i think that this is the day of traditional advertising, because the numbers we're seeing from snap, carl, from pinterest, i think advertisers, for a long time, were about having martini lunches. you can't go out anymore nobody goes out. what happens is they're not putting on tv, they're snap -- they're using snap, augmented reality, looking at pinterest, that's how you -- you want to figure out how to take a trip, go on pinterest, the ads are integrated, they're personalized i worked in radio. when radio was big before the screen got small but this is it how about that ella fitzgerald last night holy cow, carl

i do think -- if you don't follow carl, carl is the best to follow. >> totally, without a doubt. >> makes me want to buy twitter. you look at these numbers, you realize maybe tv is doing what it did to the movies, movies, let alone radio and now i think snap is doing to tv. it is really extraordinary >> let's talk some price targets, jim we'll get to the pins upgrade later today. two of them. yesterday, ever corps to 35 snap and it is basically there. we got a few more today, morgan stanley, 36. rbc, 45. how are we going to know when it starts to get rich again >> i think that this is a real moving target. look at facebook, where that is. once you get rolling, once you start -- i heard someone say, listen, it is mostly international. i don't really care. facebook is mostly international. that's when it took off. so i look at these numbers and i think, all right, you got a

juggernaut, in this market, it lasts for more than a quarter. and i think this is real by the way, spiegel on the conference call, he sounded every bit like someone who is -- if you list to be the early conference calls, they were, like, our gang comedy. not now. david, spiegel speaks the speak. >> he's focused. >> he talks the talk. >> he talks the talk they are -- they're closing that gap with twitter which is also something i heard this morning that is important and they, you know, they did to their credit, i'm told, in talking to investors, quite some time ago, they were talking about getting back to 50% revenue growth they were laughed at to a certain extent when they did that and now they delivered it. >> i laughed at them the same way that john travolta laughed at carrie in one of the greatest movies ever. like, you know, they're all going to laugh at you, i was part of the chorus, i dumped the blood on evan spiegel's head what matters is not only did he

beat the numbers, no longer are we worried about the fees. remember the fees he had to pay for his data center, everyone thought that was going to be the strangle and wouldn't make it and had that cfo, used to call you and, like, hey, listen, we're great, really not great. well, now it is just one professionally run company, maybe the most professional of all the internet conference calls other than facebook. >> really? >> yes >> have risen that quickly >> carl, this was a magnificent conference call. magnificent. >> just to give viewers a sense of what it was like, here is evan last night. >> as we look at, you know, competition more broadly, entertainment services compete with the content section of our business the core engagement on snapchat is communication and that has been impacted by covid in the areas that are more open, like europe and what not, we see less of an impact

we think some of that is due to the fact that people are making fewer -- when they're stuck in their houses that's why we're paying attention to but overall our audience in the u.s. and in north america is growing. >> jim, i know you were defending -- i know you were defending netflix before the top of the hour, but can you help viewers understand the difference in dynamics versus -- what is driving snap versus what is driving netflix in. >> only thing he did wrong, i'll get in touch with him, he used two, you knows, you never say, you know, i thought we learned that in fifth grade. he used, you know, it took away from the artistry of the conference call. what happened with snap is augmented reality. it is very much in touch with the customers. the -- the android redo, was incredibly important netflix if you want to contrast netflix, what they did in the previous conference call, what they do is basically say, here is our internal forecast, everybody is freaking out.

but if you listen to netflix conference call, you recognize that they have gotten this -- this national to international model where there are -- they mention mexican novella you must watch. i wrote down everything they have, carl and people watching 72 million, 80 million what plays in korea, plays in the united states, they're talking about having a slate of movies next year that makes you feel like, what is everyone else moaning about. i think netflix, which i call one of my magnificent seven, when it goes down, you buy it, i love the call. now, some may think that they're complacent david, they weren't complacent they're original they're artists. and they know how to produce a slate that makes it so that subs will go up. >> yeah, although there seems to be concern, not in the u.s., jim, but in their areas with -- they have been relight on for growth you mentioned international earlier and certainly for netflix that's been very

important to their growth. and in latin america, and india they had a lot of churn. that's an important area for them and so the growth could be a bit harder particularly in some regions outside of the u.s. that had been hit hard by the pandemic where unemployment is higher and people are turning off the service. >> he he isaid listen, he said, you're not going to see numbers like this. these numbers, he's saying these numbers are ridiculous it is completely pull through. in selling lysol or mr. clean, he recognized his products, once you've seen them, maybe you don't need to see them again, i keep buying mr. clean and lysol. >> by the way, look at those four things there. those four bullets don't exactly speak to your positive forecast. by the way, you very well may end up being right, you typically are. but q3 subscriber distance short of expectations, they

disappointed on their growth forecast biggest earnings miss they ever had and three straight quarters. missing estimates we know, that is sort of -- >> yeah, go ahead. >> what? >> go ahead. >> you don't think any of that points to -- if this company isn't able to -- it is an incredible company it has been, as we said earlier, has become what you refer to now as tv. they indicate it on their own, where shows that are produced by others that are on other networks don't actually come to life until they hit netflix. >> they used to have far more content, but, carl, just -- people have to listen to this call the notion of the call is, okay, we made this internal forecast we knew we pulled through a lot. we didn't make the internal forecast of the let me tell you what we're going to do next year i listened to the slate of movies, and when i see the awards and what they do, i just

think that their programming is going to be brilliant. hillbilly ig, i read the book, i'll watch that. it is ron howard, for heaven's sake david looks at it and realizes, that's jim's right, i got to watch that the first time, the first time that david's looked at me in 22 years like, one of those -- like a scooby-doo he did a scooby-doo on me. >> well, jim, your point is good in that hastings has long talked about various forms of competition that are nontraditional, sleep being one of them. last night he did specifically reference hbo and tiktok listen to that >> we compete so broadly, we compete for time against, you know, tiktok and youtube as well as hbo as well as fortnite really the limit for us is what

is the quality of our service, how often, how many nights do you say, i want to go to netflix and watch the next show? >> well -- >> this morning, jim, more suggestions about pricing power, phasing out free trials, don't try setting up new gmail account to get a few months free, those things in north america look maybe like they're coming off. >> yeah, listen, don't try to pry my netflix from my cold dead hands. netflix is rather remarkable he welcomes these guys, he welcomes them. can you imagine if you're watching major league baseball, the world series, i don't know if you're aware, and you say, you know what, i really welcome football against us. you would be fired like, well, did you know, thursday night game that we're playing against the giants and the eagles wow, i welcome it. you would be fired you're not supposed to do that but reed hastings is so confident, he welcomes the

competition. that's my kind of guy. that's my belichick. he's my belichick with a human face >> he's your belichick, huh? >> with a human face though. >> right, right. all right. we'll get to free cash flow a bit later. did generate more than might have been anticipated but not spending as much given the production shutdowns. >> admit you gave me a scooby-doo. >> i did >> thank you >> you're welcome. >> done. >> guys, we'll take a break. hans vestberg will join us to talk about verizon's quarter, nice beat on wireless subs, raising their guidance to gm and texan and the pins upgrade and thsle ack downgrade when "squawk on the street" comes back ♪ you can go your own way

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hans vestberg will be joining us later in the hour the stock doesn't appear to be poised to do too much. won't be down, maybe up a bit. 136,000 retail post paid net ads as well. 1.5 was the overall earnings per share number adjusted after special nongap excluding special item gets you in line at 125 versus 125 a year go there is concern and question about a price war. and something we're going to want to talk to vestberg about as well. some good money to be made,

turning in your old iphone to get a new one. that subsidizes things and we got three big competitors now. it is not like t-mobile taking customers from sprint anymore. >> no. they're not. i think they have a pretty darn good network yesterday we spoke substantially about antitrust and about the notion that somehow apple and google have a tieing opportunity that they have been abusing. david, if you had a price war, at&t is the loser. it would be a -- it would be a price war where you identify whether sure giving it away below cost in order to terminate at&t's ability to compete. is there a possibility, david, that they could get to the point where at&t can't spend enough to maintain its network because you see that there is a 7.7% yield for at&t and i find that anything north of six is unsustainable. >> you do?

>> yes. >> i don't know the answer to that we know at&t has a sizable debt load they have no trouble handling that debt load at present in terms of maintaining it, maintaining the dividend, given where they are in terms of how much cash they generate, they are also in the process of raising some offloading some debt it would be seen as a positive maybe there is other asset sales that might be coming as well for at&t, unclear. stankey has not given any real articulation of any plan on that front. but we'll see. >> what would happen if someone charged them, verizon, with predatory pricing and t-mobile predatory pricing, which would sell below their cost, which then knocks out at&t >> you really think that's a possibility? you're bringing up the idea that they would engage in some sort

of price war to -- >> they could signal each other. i'm not saying -- look, it is a violation of sherman antitrust i'm not saying they'll do it but, you know what, a price war, it is not like, look, if vestberg picked up the phone and called t-mobile, no. but if vestberg cuts rates big, and then -- >> they are all fighting with each other and, again, we do have three now well capitalized competitors. >> right i don't think it is going to happen carl, i look for situations where i can get more than 5% yield. that's about all that you can afford 6%, i've been going over ibm, i think they can pay the div deid because i look at the cash y ie dividend i don't know 7.7 is not reassuring. it is a red flag, carl i don't want people in this -- in this thinking i think i can pick up more

never reach for ink at home. buy verizon, 4%, very good, like a bond with a kicker i don't want people in something that may not -- that is risky. >> to your point, exxonmobil with -- it is coming up 10.3% yield, don't reach for that. >> no. don't. thank you for that >> you're welcome. >> the prosecution rests >> okay. >> yeah, jim you mentioned chevron several times through the lens of the yield in the last couple of weeks. >> there, worth is -- mike has come on our air, and said over and over again, not to worry his balance heat is quite good, though he did not wreck his balance sheet, he's made a series of good moves i have more faith in his 7% than i have in anybody else's 7%. something in your eye, david can i get it for you >> i'm okay. thank you. a little itchy. >> i got -- >> you have a virtual pharmacy over there. >> not virtual actual what do you need

za za send me a holograph of it. >> i have everything other than a test for -- got that at 2:00 today. >> that's right. covid test day hooray >> still to come, guys, we're going to talk to larry kudlow about the status of stimulus talks, about liability protection, whether mcconnell did warn the white house and a lot more that's cinupomg think we'll make it in time?

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we stand again, you know, socially distanced, times two. >> i don't think you're -- i think your droplets end right

about here. >> sorry we're all getting tested today every wednesday here. >> great, after, after you've given it to me >> i wouldn't want to do that. mad dash, we got about six minutes before we get started with opening bell. texas instruments. >> well, it was a wow. what made it a wow was really incredible everyone knew the personal electronics was good, you got that from best buy, it's good, intel later this week, we know pcs are good it was automotive. that's what drove it, the rebound of automotive, this is important, because autonation reported good. i have lithium motors, huge, they're reporting great numbers. >> right. >> and you're going to start to get phil lebeau with an amazing piece about a hummer -- hummer, $110,000 autos are back remember in february, we put the death of the auto, talking about uber, well, now it is the death of one of those -- well, uber

had a nice comment yesterday, but everybody wants a car again because we're all driving alone and we want to get places. the heck with mass transit, we regard that as not being socially distant i thought this was amazing we have to start emphasizing the car companies. i have fisker on this morning. they have a deal with magna. i thought automotive was the star of the show. >> a read through to nxpi? >> absolutely. thank you for that nxpi should be up 10% right now. >> wow. >> they have even more auto. and good read through through the illinois tool works, okay. these are the ones everyone should be doing that homework and i just gave it to you. >> all right we got a lot more coming up, including hans vestberg, the ceo of verizon will be our guest shortly. and opening bell 4 1/2 minutes from now ay wh o"sawon the street."

jim was mentioning autos the gm news about the electric hummer a moment ago. jim, autonation will open above

68 that's going to take out the 2015 high. >> this is a good example of what i was talking about earlier, keeping with netflix. but certainly with a lot of stocks like texas instruments. everyone knew texas instruments was going to be good how could it still go up after they reported a great number the answer is when you read the conference call, it is about how this permanent change in people's behavior and buying autonation is a permanent change procter, permanent change. people want a car, people want a truck, people do not want to be in a car pool and they don't want to be in mass transit and got to get around and autonation is the place to buy a car. same with lithium motors lithia is where my daughter lived in oregon, it sounds look a car dealer, it is nationwide autos, we'll get through them, we're starting to realize we're almost through -- looks lo s lia cloud stock.

you finish with the used auto business an d go to new, i think this is in bull market mode, like housing was watch autos, every single one. i like the parts magna, another great name. ppg, another great name. >> ppg, yeah and texan as you mentioned a moment ago opening bell here as we await more headlines regarding stimulus, which we'll talk about in a minute. you were watching the gm interview with phil lebeau and the promise that nicola deal being finalized and the tightening of the race as phil put it regarding battery technology what implications does that have for tesla? is competition at scale finally here >> i think that -- i know that the gm people are very nice, okay so they should hold their ears you're not going to catch -- you're not going to catch elon he's just not going to letit happen he is one step ahead of the

posse at all times and what did we say this morning on brian sullivan's show, tesla, something like their ev is big, bigger than all the other evs combined i think there is room. i don't think it is a situation where reed hastings says i welcome competition. i think -- look, i think that elon wants to destroy competition. i'm not that worried but, remember, younger people want ev and want ev stocks henrich fisker on because the world came into my twitter feed and said how can you not love henrich fisker he's a designer of pollution free cars. and because bill mcdermott, from service now, joined the board, magna made a deal with them, i felt like i'm cornered here in being skeptical. ev is so -- do you know how much ev is loved? >> yes, i'm aware it is in favor. yes. >> could you be more enthusiastic >> what's wrong?

>> why it is loved, okay. it is loved. the planet over. what percentage of vehicles on the road are ev? >> like 1%. >> yeah, about 1%. >> that means there is room. >> there is a lot of room. a lot -- a lot of upside. >> a lot of -- people come on the show at night, on "mad money" and say tamm is great it is total adjustable market. don't act like you're in second year business school which nobody goes to anymore there. i said it. >> jim, you know what is get something play this morning is this news out of pay pal, that they're going to allow merchants to work in some crypto stock was up 3% premarket, but what do you think that means >> well, crypto, there is kind of an underworld of crypto again. the crypto people think it is not an underworld. they think it ises ve very easy buy, you can call anybody, not true, not true this is a brilliant move by dan

shulman. remember dan, square does it too. one reason why square went up so much dan schhulman is about the democracy of money it is going to be part of our daily, it is hot for the year, look, this is -- bank with dan and get some crypto. i think you should get some crypto for your kids buy crypto for both your kids. >> they're going to enable their customers to buy, hold and sell crypt yocurrency from the pay pl account. they'll make it available as a funding source at its meer chrc worldwide. what about the russians, what about regulation that certainly is the likes of some of the -- >> when the mets won the world series, were you able to find a downside, you felt bad for somebody >> 1986, so it has been a long time. >> do you have a downside of

anything >> i can find a yodownside of a lot of things. that's what i'm here i'm your debbie downer >> i do think -- >> how about jpmorgan and pay pal. >> what about it >> in my ear, my producer says -- >> they are taking a shot at square and pay pal, with this new thing called quick accept. >> this is -- >> one example, this is like their -- how many times are they going to try to get -- try to beat pay pal it is embarrassing they had myriad times. people don't use -- they don't go to chase for that kind of thing. >> bitcoin cash, light coin, directly within the pay pal. you talked a great deal about digital currency not digital currency, digital payment systems. look at the market cap on this thing. look what it has done since it was split off from --

>> they have been using -- courtesy of lisa ellis, the best analyst on this, she said -- your friends moffett and nathan son, small business to medium size they keep losing business to square, it clover, to pay pal, and do you remember once they -- they had chase pay and chase net. chase is -- chase is, like, no, when it comes to this stuff. small, medium size business, chase is not done it they're just too big to handle small business square's not square pursued my restaurant endlessly. endlessly. finally couldn't take it anymore. >> well, listen, to your -- to the point we have been making, pay pal is a larger market cap, far larger than bank of america. >> there are different things. >> they are different things and one is growing very quickly. and now it is going to allow its merchants to accept bitcoin. >> i'm doing a panel tonight for

robin hood, i cleared it, it is all fine, it is not -- it is the robin hood that doesn't lose money, it is the charity and we're talking about the notion of what the young people want and what the new investors want and they're not looking at market cap they're not -- traditionally we look at market cap and say it is ridiculous they don't do that >> i do want to add, guys -- sorry, carl, to put a quick -- i did raise this question. pay pal has been granted what they call a first of its kind conditional bit license by the new york state department of financial services which is a significant regulator. >> yeah, that means the end of money laundering in russia, just kidding, you're right. carl, you know these new -- they don't lock at it aok at it and almost as big as jpmorgan, it is almost as big as u.s. steel. >> i retweeted a chart this morning of the -- on various

platforms, which participants have the largest share of sub $5 stocks and robin hood is far and away -- has the biggest share, users of robin hood, more than ameritra ameritrade, more than schwab they're not looking at overall aggregate market cap. >> no, it is an abstraction for them and we may hate that, the people on the panel did a little pre. people don't like that it is not rigorous but or it is 1999. they always use this example they're not phony companies these companies. this is not 1999 it is not. you can say fisker is -- the spacs, good execution this mornimorn morning with the woman that runs nasdaq, but they like spacs too. >> spacs have been getting a bit battered lately. enormous amount of supply, look at some of the names, some of

the big ones, that have been done down like that multiplan that i followed closely has been hit hard not stopping anybody from continuing to create new spacs, still every okay, virtually every day. still waiting on a lot of pricing though. >> i have two friends that are going to have spacs -- three friends. and they are going to announce them and one bought one, it is kind of interesting, i don't want to -- carl, when friends call you an say, listen, i've been approached to do a spac, it is incredible how many people are approached i was approach to do two spacs and i reminded them i have a job. it didn't even matter to them. if we got you, our spac would sell i work for gsmcnbc if you don't have a spac, you're a loser. >> you're nobody. >> yeah. peter navarro's spac, how is that doing >> kodak i haven't looked at -- >> i'm not kidding

one person who told me they had a spac, they had the greatest idea and they were -- she was probably 40 million. they're giving away money. people say, that's the fault of the fed. no, it is the sec. if they want to make it -- >> it is a way for hedge funds to park money. instead of putting it it in cash, put it in a spac it is ten bucks. and you can vote against the deal or not, gives you an option, and that's been happening as well. >> it is like everybody is able to print money it is really fabulous thing. we can all print money >> better than getting no return whatsoever when you're in cash and no downside conceivably, not until they announce their deal and then people don't like it and pull out. >> are the mints mad is the denver mint mad san francisco mint philadelphia mint? are they mad they print it. >> got it. carl >> you can tell, the letter on

the coin guys, ten-year, 81 basis points. let's get to rick santelli >> absolutely, carl. we're seeing all along maturities, the entire curve, but 10s and 30s start to zoom, zoom, zoom a bit look at 24-hour chart of 10-year, updating 3 1/2 at one point. look at 4-day chart, you should see we built upon the previous days high yields every session today's no exception and as we continue to do that, and look at the yield curve spreads steepening, i said for five weeks, the knobs, the steepening of that spread on the long end is always symbolic of all rates generally going up you add in this kabuki dance of trying to doll out more money with regard to congress and i think that the table is set. more fiscal stimulus will be higher rates pure and simple. but if you look at the long end indeference to the last time we

were up here, it is june you see whether it is 10s or 30s and of course many are thinking that we can get through 90 basis points and test a whole 1% in ten-year note yields which sounds high considering the all time low yield, not that long ago, was a half of 1% or 50 basis points just to put that in context. here is something very fascinating, though. if you look at that is going on with regard to 10s minus bunds, we continue to outrun european rates. right now the difference is about 140, 141 basis points. look at 10s on top of dollar the dollar should be going up with higher rates. but it is not. maybe deficits are going to play a big part in that particular trade. and the chinese currency by far winning. look at the dollar yuan. the dollar is at 27-month lows carl, jim, david, back to you. >> rick, we'll talk to you later, rick santelli in the meantime, after the break, we'll talk with hans vestberg of verizon, shares up three quarters of 1% we're back in a moment

coming up later this morning, larry kudlow, director of the national economic council. and the next 48 hours are critical that's later this morning. don't go away. hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. ♪ ♪

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welcome back as we told you verizon out with an earnings beat for the third quarter this morning company raised its guidance and as i said, beat expectations as well and the number of subscribers added for its wireless service joining us now is the company's ceo hans vestberg. always great to have you fresh off your conference call a lot of questions and a lot of concern out there that we're entering into another potential price war among what are the major -- three major carriers. you being one of the key ones. with what will be significant promotions or subsidies for the new iphone and potentially hit to margins to help secure sort of longer term growth. is that the environment we find ourselves in now >> first of all, i think we feel really good about our position and first of all we have the

best network, we have the sole transformative -- and we have the iphone coming out with all the iphone models having the ultra wide bend inside of them we updated our guidance for fourth quarter when it comes to eps. we feel good about the position we have now. and most important we feel good about what our customer is going to get from us and how we can support and with different type of offerings and the best network. so all and all we feel really good about it and we're used to this type of competition and we feel really good about how we're doing our offering and how we are getting new customers. >> understood. but, i mean, you reference a competitive environment. yes. it is always competition but we go through cycles it seems where there is more competition in terms of price and less are we in one of those where there is going to be more? >> so when it comes to our

offering right now, on the preorders of the iphone, that's very similar to what we have earlier cycles when iphone has come out it is not much of a difference this is what we're used to handle and have a huge confidence in my team and the consumer team to continue develop that to contino develop that offer but we are used to working in this environment and we feel really confident to grow the top line and grow with the new customers and continue to actually expand our earnings as we upgraded our so-called -- >> yeah, but hans, hans, an analyst that follows you who we follow estimates you're offering $800 subsidy for new customers. >> no. i think we are very similar in that set-up but we have always been prudential. we know what we're dealing with

to do the right thing for our customers and the shareholders and i feel confident about the situation we have and i don't think we should be only concerned on the situation this is sort of a big event that iphone is coming out with 5g second most important launch on the iphone seasoince the first launch and we think it's exciting especially with our network and our distribution, our customers. >> hans, jim good to see you. >> good seeing you, man. >> i'm worried i don't know how your network and talked about this yesterday and reviewed today in "times." how can your network deliver meaningful 5g performance with what you must acknowledge is limiting coverage? >> yeah. i think that what we have built right now is something so unique and so transformative. we have been on to this strategy for many years when it comes to our ultra wide band and last

week we turned on 90 more cities we continue to augment in all the cities we are. the last two months we have built more out of wide band sites than 2019. that is the speed we are augmenting the 5g ultra wide band because it is so different from any other in the market how they build the network and remember we launched our nationwide last week so we both have that and we have the both network so we feel really good about the situation and giving this experience to your customers. >> what does it mean to say that you feel good about iphone orders as you said on the call is feel good mean you're shocked there's no many? a great launch feel good like, eh, feel good?

>> feels good, remember now, the pre-orders is for two of the models the other two will be 6th of november and only a couple of days of pre-orders but i'm happy what i'm seeing and the customer interacting the first couple of days and as well as we need to know on the second match of the models in pre-orders but we see a good traction in the stores, a lot of customers making orders so we are happy. >> hans, to come back to the network, of course, which you talk about a great deal, the competitors including t-mobile which is very aggressive in the criticism would say when it comes to ultra wide band right now, your availability is less than 1% of the network

is that true >> remember what i said a couple minutes ago. last two months we did more after wide band than entire 2019 so whatever measurement and things that people are talking about that's old stuff we continue to augment and again we talk about our own network and strategy and customers and we feel really good. >> nobody would argue with your network through the years that's been the key for the company but what speeds will customers see on the nationwide 5g network if they're not on millimeter wave >> what we will see in the initial right now is on par or better than the 4g and 4g is the award winning 4g, the best network by far in this country and has been in it for i'm not sure how many years but won consecutive years so the 5g nationwide will be on par or better and i have the iphone

here and i have a very good 5g signal right here where i'm standing and it is working. >> hans, the reviews said over and over again -- i will buy the phone and this is a little devil's advocate but the 5g right now will let you down and seem like 4g and unbelievable when the buildout happens. i don't want people to be let down by saying this is no faster than the 4g right now and isn't it right there's not a difference in lots of parts of the country? >> as i said the nationwide on par or slightly better than our 4g but remember you're buying something that's future proof. the majority of iphone users they keep the foreigphones for a couple of years and you will see so much more from us the next couple of years. remember a year ago we came up to 1 gigabyte per second.

but so we have so much more to do so this is future proof what you are buying right now and especially buying it and being part of the verizon network. >> so you're future proofed. when is that future? we have talked about it so often. we have talked about it and with the enterprise and the different applications and you are saying, yeah, a bit better than 4g right now but when's the future we have been talking about going to be here when i buy the phone and get out there wherever i am and use it >> no. so the ultra wide band is that future proofed and transformative moving into 2021 we will continuously improve this and that's happening right now the applications coming out only on 5g. one is a super app or the super stadium app with nfl to sit in the sofa and have seven screens at the same time on the iphone

and the other to launch soon is the gaming which is a multi-gaming on the phone on the 5g and could not have done before and they're coming out with applications right now that could not have been done on 4g so it's happening right now. i'm excited and the customers are excited. >> we'll be keeping a close eye on it. it is an important story for verizon and the country as a whole and we always appreciate you taking time with us. thank you, hans. >> thank you >> all right good stuff jim, what's on "mad" tonight? >> we have to push him he was articulate. we have an unbelievable show parsley, the deal. we have them both. we have lithia which is an unbelievably big car company and then there he is henrik fisker! the man that people feel is the

savior and the real competitor to elon musk you know what? we'll find out is it smoke? is it mirrors or is it money rurp. >> that was great, jim we'll see you tonight. 6:00 p.m. eastern time we'll take a break here. s&p 3461 don't go away.

good wednesday morning welcome to "squawk on the street." markets weighing a familiar mix this morning covid levels, q3 earnings mostly solid and stimulus negotiations. dow taking a nice leg up higher. our road map this hour is going to begin with what else? stimulus larry kudlow will join us next. then it's the worst earnings miss in the history of the company, yeah. netflix. what went wrong this quarter finally, one of the ags behind the google anti-trust lawsuit. let's get right to the first guest this morning talking about

a status check on the stimulus talks. larry kudlow starts us off this hour welcome back good morning. >> hello, carl thanks. >> all right so it's another morning. the viewers trying to get a sense of why as mark meadows said this morning the next 48 hours are so critical. can you explain? >> well, one easy factoid is we're running out of time at least between now and the election so you have the large bills and this one has gotten bigger and bigger as the negotiations have proceeded. you only got two weeks i guess two weeks? just a day or two longer than two weeks before the election and even if you could get this into the legislative language to everybody's satisfaction it will be difficult operationally to execute every part of this i know a lot of people are concerned including the white house, the president, about

unemployment assistance and the ppp small loans and also the direct mail checks so i don't know, carl. operationally. but i will say this. i spoke to a number of people early this morning and it's an optimistic morning regarding the negotiations that's the best way i would characteristic it's cloudy here in washington but i think there's optimistic morning and some emails from secretary mnuchin who's overseas and coming back tonight and will be negotiating with speaker pelosi today mark meadows said this morning, chief meadows, that he is going to be up talking to the republicans in the senate. and i can tell you that the committee chairman in both houses, key committee chairmen, are in discussion now so that's a fairly optimistic point.

we got senator shelby who runs -- chair of the senate appropriations committee, house member from new york apparently in negotiations and with respect to the ppp small business loans which as you know is a very important area for all of us, marco rubio and ben cardin in the senate are talking to steve shait. so i would as i say, it may not be a sunny morning but i think it's an optimistic morning. >> right biggest stumbling block? meadows mentioned state and local aid. liability protection mcconnell said would prevent him from bringing it to the floor in july can you 'seassess those obstacls >> they're under negotiation not the only factors but very

important. i don't want to -- carl, you and i could probably settle this but i'm not in power to negotiate this with you this morning they will be on discussion on those key issues and i would underscore senator mcconnell's view going back to day one liability insurance for small businesses, covid related potential lawsuits they want to put some safeguards or curbs around that restaurants. so forth i frankly think if you had some safeguards on liability insurance, some limits, gross negligence is different. then you're going to jail but less than that, you know, i think that would help the recovery i think more businesses would open and mean more jobs an ena stronger recovery. >> larry, the sticking points are the same for weerks now and lawmakers and the white house

have been talking for months at this point so can you help give us a number? what's the percentage chance that there is a deal before the election which is in about 13 days >> no. i really can't give you a number i'm not an oddsmaker the lags lative process has to be respected and the negotiating process has to be respected. it's a bit cloudy down here in terms of the weather but i think a relatively sunny, optimistic morning in terms of the negotiations. >> larry, it is david. if we don't get something before the election is it possible -- i mean, obviously we don't know who will win the election but i'm wondering about lame duck. is that a possibility? do we expect we get something very soon after if this doesn't work this time >> yes, david. it is always -- could be a possibility. you could, for example, i don't want to stretch this too far but

we're having some fun here on probabilities. you could have a final announcement with legislative print coming out of both houses presumably an agreement, presumably have a vote only reason i say that because i think the announcement and vote if it's a favorable vote on a package would be very helpful and constructive to the economy and financial markets, perhaps the actual execution might go beyond election day but folks around the country, people going back to work, people worried about nemployment assistance, worried of reopening or opening the small business might feel reassured, better certainty that they have gotten it done and just a question of pushing the money and the loans out the door and that could happen easily after the election.

>> yeah. i guess just back to leader mcconnell for a second, do you have a sense as to where he stands and stands with obviously the senate at this point you know, it's been a long-returning battle here are they going to get on board if we get really close >> you know, i do not -- i just cannot possibly speak for leader mcconnell. he is a very old and dear friend of mine, a wise man in the thick of it to me and that's reassuring but i wouldn't want to speak for him these issues will be or won't be resolved but again we're moving closer there's a seasonse of optimism. i think it began late yesterday afternoon. the chief reflected that optimism this morning in an interview on another network i have been emailing secretary mnuchin who's on the road. things are moving in a favorable direction.

i can't promise anything but things are getting better, looking better for this. >> larry, census has some data out today for the prior week about a quarter of american adults expect someone in their household to experience a loss in employment income in the next four weeks you have talked about further stimulus being good to have but not necessary. given what you think the economy is doing overall you still feel that way? >> yes i think all the incoming data let's see particularly the housing data points, consumer spending retail data points, automobile data points, all that stuff is very powerful looks an awful lot like a "v" and you have to rebuild inventories to meet all these new demands and that's going to

spark even more growth and spill over into the fourth quarter and into 2021. we have made good progress on labor markets but not enough progress on labor markets. i certainly acknowledge that about half the job losses have gone back to work but that's not enough there's still way too much hardship unemployment has come down quite a bit to 7.8% but that's still too high we had it pre-pandemic 3.5% with record low unemployment rates across every category and minority group so we need to do better one of the reasons i might add again i think that you could get a guarantee, a legislative guarantee, if you will, for more unemployment assistance, the president exacted with an executive order but that's going to run out soon.

the $300 plus $100 from the states so why not legislate? ppp i think was very effective i think a lot of the reason we had a return to work is the temporary job losses were temporary because of the ppp and why not bolster that there's $135 billion not spent there's emergency money not spent. those are areas we're concerned about schools and covid, concerned about liability insurance. the chief has been mentioning and quite correctly we're looking at some investment tax credits for businesses to return home to the u.s. from abroad in order to put their supply chains in better position because china's proven to be rather untrustworthy so there's elements that would be enormously help. but i think the consensus now, the blue chip forecasters, 29%

growth in q4, the atlanta fed 35% growth i've been saying we'll get better than 20%. >> yeah. but -- >> strong recovery >> larry, a lot of the improvements in the v-shaped recovery is certainly true in the stock market and the macro data points have certainly provided a nice slip but 8 million more americans slipped into poverty 1 out of 6 renters behind rent in september as we look at the factors, do you think it's really providing a true picture of the economy and if we did focus on what's going on underneath would there be more of a fire for these stimulus plans >> actually underneath, if you will, i think business, the business spending is exploding gross output now by the bureau of economic analysis, a very important measure an enin fact another

data point, new business start-ups, new business applications are soaring so we have lost a lot of businesses, most unfortunate, however, in the american entrepreneurial tradition, people are coming back and restarting a business or going into another business now look it's been five months, this recovery is -- seems to be five months old so you can -- there's no question we are not back yet. a lot of these data points including the housing stuff aen the retailing stuff way above year ago levels so that's a terrific recovery but not all of them labor market is slower it seems that's a tougher nut and we will do what we can that's part of the assistance package business and that's the reason why we are pushing for unemployment assistance and i might add

middle class tax cuts. the president will be campaigning on middle class tax cuts for incentives for people to return to work, for incentives or small businesses to open or reopen and provide new job opportunities. so you know, five months, give us time. this thing, you can't rebuild it overnight and i think some people are way too pessimistic about the economy, might be in denial but i think the overall outlook improved immeasurably right now. >> one last thing, larry, on direct checks. to the degree that they're less of an emphasis in this particular round of aid, is the fact that so much of it was used to pay down debt or saved? is that an element in these discussions? >> no. not -- i say not particularly. i haven't heard much of that the president has always been keen on the direct checks. not everybody in the senate on

our side but the president certainly has been very keen on that and as you know he wanted a payroll tax deferral that would be forgiven later and apparently will not happen and will propose a middle class tax cut very shortly. there was no particular analysis the building blocks here, you talk about the poverty rate and so forth, pre-pandemic we had the most extraordinary numbers, three years of president trump's tax and regulatory cuts, let's not forget this history. family incomes rose to record high our three years, five times the rate of the prior administration's eight years poverty rates fell substantially. urn employment rates fell across the board, all minority boards inequality fell substantially. basic incentive structure is still there. right? still there. may change after the election or may not.

but right now it's still there it's a liberalized economy that rewards work and success so that's a big plus and people take advantage of that we think as a guarantee to help those who most need it we'd like to see the checks go out they can spend it, save it you know who knows? it is a tough call but no. the president's -- he would -- he said he'd overbid on that he would be happy to overbid if that's necessary. >> that's one of the things that's taking the market by surprise larry, our viewers need to hear from you and we appreciate your willingness to continue to communicate often: we'll talk to you soon. >> thanks, carl. appreciate it very much. still ahead, netflix posted the worst earnings miss ever we'll tell you why and what went wrong next shesowmo tn rhtar dn reha5%ig now. -twins!

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snap shares at an all-time exceeding the price it had on the day it wept public on the blowout quarter. yulia boorstin has more. hey, julia. >> reporter: carl, that's right. snap's results beat expectations across the board with revenue growing more than twice as fast as analysts expected, 52% rev knew growth in the quarter and a surprise profit of one cent per share rather than the loss expected this has the company added 11

million daily active users in the quarter, far surpassing the 4 million to 6 million range that snap forecast snap's executive looking at snap's ad format. >> our success underscores the excitement that our community and our advertising partners have around our innovative products and services. the adoption of augmented reality has happened faster than we imagined and we feel well positioned to execute on the many opportunities that lie ahead. >> reporter: snap projecting growth of as much as 50% and expecting this quarter's 18% user growth rate to continue into the fourth quarter as they see increased engagement on the time spent watching the snap shows. quote snap seems to have made it to the other side of the pandemic earlier than we thought. we believe that growing user and

advertiser scale will yield sustainable profitability starting in fiscal 2020 causing us to turn more bullish on snap. atlantic equities is cautious saying with the stock trading at 16 times revenue at a price of $35 we believe the company's potential is fully priced into the stock and therefore remain neutral. leslie, looking ahead at the trends the fourth quarter is traditionally the biggest for snap with holiday ad spending very important there. >> thank you, julia. now on a different earnings picture this morning, netflix, earnings per share 19% below street estimates making it the worst miss in the company's history and steve s tifel joins us where's the disconnect >> i mean, the quarter

subscribers are volatile you have to look at netflix on an annual basis in terms of subs and they did only miss the guidance by 300,000 subscribers. the challenge that netflix has at the moment is that they did almost a full year in the first half the company added 26 million subscribers in the first half relative to 28 in the prior 2 years and dooling with a consequence of the after effects of the benefits of covid but going forward this company still on a run wait to kind of do 25 million to 30 million subscriber additions a year in the few which are of this bumpy period right now. >> right to your point, do you think the numbers for q3 largely a result of the full forward in the first half of the year or emblematic of a slowdown in the fact that they have a user base that's largely penetrated at this point? >> it's a little of both

you have the fact that it's a very large company now the company's exceeding 200 million global subscribers theened of this year and not the netflix of old but it's a very large company and it is a blue chip company now and transitioning to steady top line growth. 20%, 25% and expanding operating margins and free cash flow generation that's a different narrative of the netflix of old and we have a hold rating on it. >> i wonder is that a narrative that argues for a lower multiple over time, scott nobody's arguing incredible success and almost describe it as tv now and doesn't mean in a period of slow slower growth that people aren't willing to pay less for it. >> i agree it becomes more predictable from here there's not any noticeable kind

of optionality on the platform relative to other peers that are at similar points in the life cycle, like an alphabet, but you have to be very valuation sensitive. i think the dream in terms of the upside to subscriber numbers played out over ten years. the next ten years is expanding margins story which is going to lead so some multiple compression but paying about 55 times forward earnings for 20 to 25%. i wouldn't argue it's cheap yet either. >> hey, scott, social media remains under a lot of pressure regarding content moderation and political bias evan's been pretty vocal about the president and snap no longer promotes the snaps but how have they managed to fly under the radar on that front and how long

can that last? >> well, our team covers the social media stocks and i could comment at a high which is that snap is a closed community relative to some of the other social networks and much less prominent in the discussions so i think that when you talk about some of the issues that social media faces it is more of a facebook and twitter issue snap isn't really part of that debate. >> all right scott, thank you for joining us to discuss a wide range of earnings stories today we appreciate it. >> thank you. let's get to the etf spotlight now with the vanguard services etf of vox. disney saying updated state of california guidelines will keep disneyland closed for the foreseeable future county officials say no theme park of capacity over 15,000 people can reopen until the

covid risk level drops to the lowe lowest tier. shares of sn uovdieyp er 1%. we have more "squawk on the street" straight ahead ♪ ♪ ♪ ♪ ♪ as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected.

good morning, everybody. i'm sue herera a major shift by the catholic church in its view of homosexuals. pope francis has endorsed civil unions for same-sex couples saying they quote have a right to be in a family end quote. the pope also making news for not wearing a mask in a service today. this despite vatican rules requiring them endoors bishops that spoke to the pope took off the masks before approaching him. purdue farm suit call will plead guilty to three criminal charges and pay more than $8 billion part of a settlement with the justice department. that is according to the associated press an official announcement is expected in about 30 minutes. and a judge has ruled that deposition transcripts and other

legal proceedings with ghislain maxwell must be disclosed by tomorrow morning you are up to date that's the news daupdate this hour. >> thank you, sue. 11 republicans attorneys generals signed on to the lawsuit against google yesterday. arkansas's ag rutledge joins us now. ag rutledge, thank you for being with us. google says this lawsuit will do nothing to help consumers to the contrary artificially prop up lower quality trace technologies what do you say to google's response to your lawsuit >> well, of course, they're going to say that and it's important that americans understand when they google something while it may seem free it is not necessarily free because you don't have a freedom of choice. the reason we joined with the

justice department and the ten other states is to ensure that when you do in fact go to a search engine and the results are the best services and the best product putt in front of you and not simply something they want you to see google has about 90 plus percent of the search engine and this is an anti-trust lawsuit to ensure that other companies have room to get in and to expand their business. >> how much time did you spend talking to the doj in other states about choosing to join this it is all republican states as i understand it but give us a sense of what goes on in your office and the conversations you had as to why you felt this was necessary. >> we had ongoing discussions for months actually about this and investigating google we lanunched the invest and met with attorney general bill barr.

and we want the republican ags, we welcome democratic ags to protect the consumers in their states as we are protecting the consumers in our respective states and i reach out across the aisle and say let's all protect american consumers and again to make sure they get the best results when they type that in the best results shouldn't be hidden they shower uld be on the firste of a search. >> leslie here i'm curious if you have heard from people in arkansas about the suit and whether they are concerned about the -- what the suit alleges to be anti-trust violations by google google's defense as david mentioned is that it actually helps the consumer, they don't go to google because they have to they choose to are people in the state worried about this have they come out in support of

your decision to join this filing >> ironically, google claiming that people choose to when part of the reason for the lawsuit is exclusionary contracts with companies such as apple going to the phone or device, google pops up by default and most people don't change that default setting. it is a choice to leave it but we warrant to give americans the choice and we hear from people across arkansas, we get 2,000 to 3,000 calls per week in arkansas at the attorney general's office and may be robo calls from individuals calling from out of country but a number of come plar plants and people concerned. maybe they don't advertise enough with the companies but not just protecting us to make purchases but looking to sell products and services. it is protecting small businesses and all businesses

and we want google not to break google up to allow others back into the marketplace so we can have a free, innovative market place for everyone to participate. >> you just said yourself that although it's the default most people don't change it to a difficult engine but they can. at least that's google's defense that they can and they can do it more easily than cd-roms in the computers. why is that defense not convincing to you? >> we'll see if it's convincing to the courts and this is google's initial response. again, we want to give americans the right to choose and if my daughter were sick, my 2-year-old baby girl sick and googling to see the best doctor, the best medicines, i want the best for her and not the one that google or the advertisers believe i should look at

that's what everyone wants on the internet we say it's in violation of anti-trust laws and we simply want a free marketplace for every idea to be available. >> ag rutledge, google competes against very large companies microsoft has a search engine of bing one would expect that microsoft could pay apple the same amount of money if not more from google to have the same deal. you know to that point, google says, listen, we do pay to promote our services like a cereal brand might pay to have a supermarket stock the products on the shelf. why is that illegal? >> it is the practices of exclusionary searches. google is a verb

when people use bing, for example, they may say i'll google something on bing i understand that sounds odd but we want to again -- it is a practice that we are -- working with department of justice in this lawsuit not to e liliminate google but to ensure that companies and consumers get the best information in front of them. >> yeah. that was picked up by people combing through the complaint yesterday and the response then are we going to sue kleenex. when did becoming a verb become a legal liability? >> again, i said that's not a legal liability but the business practices of the company have caused it to be in violation of these anti-trust laws and it is the monopoly, the practices of pushing other companies out, not allowing them in that space is why the states felt it was necessary to file a lawsuit against a juggernaut such as

google. >> yeah. finally, how long do you think this is going to play out over >> i don't have a crystal ball it simply depends on the courts but i imagine it's not a case decided in the next couple of months but certainly go on into 2021 if not beyond into 2022 but we are hoping to be able to work with the company and to have things settled out so that way it doesn't drag out and americans have a great search engine to choose from making buying decisions and selling decisions. >> understood. ag rutledge, thank you for taking time with us this morning. as we head to break, take a look at shares of pinterest up almost 13% after upgrades by bank of america and goldman to the stock to a buy citing montization improvement. ♪

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early voting, still laus talks, the confirmation vote for judge barrett, there's a lot to happen before election day eamon? >> reporter: yeah, carl, that's right. we have the new cnbc change research states of play poll this is battleground state and focusing on likely voters here, the people we believe cast ballots by mail or show ump to vote and joe biden maintains a strong national lead and in the battleground state, all six of them we look at here but inside this poll there's some interesting stuff that gives you a sense of what voetsers are concerned about before and after the election this number surprised me, the number of voters already voted, 38% of the people in battleground state voted this election is nearly halfway over already in some of these battleground state, that's a sense of not a lot of time for

the president to turn and the trajectory of this in terms of concern after the election, look at this 37% of the voters have concerns that joe biden won't concede if he doesn't win 49% have that concern about the president, that indicates some concern here for a contested or contentious post-election period of time. the president is upside down in this poll on coronavirus 45% approve of the handling of the crisis 55% disapprove and a message for congress looking at what should the senate's top priority be, 62% say passing the covid relief package. only 38% say filling the supreme court seat should be the top priority that's the opposite of what congress seems to be doing, though, with the congress on track to approve the supreme court nominee. leslie, there's a message for

lawmakers and politicians at every level but surprising in terms of the early vote turnout, something we have not seen before and impacts the dynamics of the last two weeks of the election. >> absolutely. shocking we have 13 days to go you will be busy, eamon. thank you. one week since fastly warned that the revenue would come in short of announcements the stock plunged 30% sending it to the lowest levels in a month. fastly still up more than 300% this year. you can see shares down more than 3% right now. more "squawk on the re" teth bakstet turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that.

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welcome back to "squawk on the street." i'm dominic chu. stocks are higher this morning s&p up led by gains in big it can no long and communication services type names. social media the material sector up a percent right now and outperformer there. the best performer within that group is avery dennison after raising the quarterly dividend by 7% and resumed the stock buyback program after halting it in march other leaders in the sector today, freeport and ball corp. and ppg industries and all of which reported double digit gains in the past month. resqwkn e street" coming up.

institutional investors analyst of top rated analysts on the street, robin farley is number one spot in the leisure spot for the tenth time which hardly ever happens and putts her in the hall of fame, robin

good morning and congratulations. that's a very bigdeal. >> thank you very much i eerm lucky to have a great team that works with me. >> let's talk about what you like i'm curious to know if you have a point of view broadly on the airlines we printed a million tsa screens this past weekend. united is doing work with allowo to travel to areas like hawaii are we seeing market improvement in that area >> well, so far when we look at the hotel names, we haven't seen much improvement since late august as we get into this period where we would be normally seeing more business travel, that hasn't picked up. many of us are still working from home. so we've seen the revenue at hotels for each room had been improving every week from april until the end of august, and now has been pretty flat and, by the way, you could argue that flat is a victory in this market, that it's not declining worse as we get into the fall. >> right

give the viewers a sense of what kind of timeline they might expect, if any, for corporate travel to -- i'm not saying get back to pre-covid levels, but to show that it's making an effort to get back to those levels. >> sure. i think seasonally here from november to february is usually the lowest occupancy part of the year anyway, so even if things start to improve more from where they are, it might not necessarily show up that strongly in the numbers. longer-term, we do think it will take probably until 2024 for revenue per room to get back to where it was, and group travel, convention business in the last downturn book seven years to get back to the same number of group room nights. so some parts of the business are going to take longer, certainly. >> robin, i'm curious about the cruise ship sector, which are obviously sitting idle right now. once they do get back into operation, assuming that happens one day, how do you make the math work? these vessels are expensive to run, tons of staff, obviously

fuel, they have to pay the rights for the ports and so forth. so, you know, is there a way that they can discount enough to entice people to come and does that even work if you're not able to fill up an entire cruise ship >> well, it is a very high fixed cost business, but at this point, anything they can come back, if they can get a ship to be 30% to 40% occupied, just cash flow break even would be a big improvement from where they are now. and when they restart, historically they've had full fleets, but you don't have to have every ship back in service and certainly ships going back into service will start, you know, probably not more than 30% occupancy at first so you don't need -- even in q1 next year, we're saying rooms are ships will be down 93% year over year. you'll need a little bit to restart. >> robin, you were on the all-america research time for ii for ten years in a row, i guess that makes you a hall of famer

i know they asked you during the interview what the best call you ever made was. you said the best calls are the tough calls when everyone else is saying something different and you're not following the herd what would that be right now for you? >> well, hard to know how it will turn out. i would say, you know, it's royal caribbean that's our favorite name of the cruise stocks there's risk to this name, there's risk to the cruise outlook. but if these companies have the liquidity, royal caribbean has t the liquidity and if we can look past the period where they're not operating, there's upside to this name. it's difficult right now and obviously a lot of investors are concerned about the cruise lines sitting there burning cash >> yeah, you know, travel and leisure, the areas of concern tend to get put into buckets, geographic buckets we worry about orlando and las vegas, obviously new york city and disneyland now is becoming

an increasingly point of friction because of what the state is saying to disney about parks reopening. but of those four or half dozen, what would you say has the most promise, at least in the near term >> sure, maybe the bucket i would think about is leisure travel versus business travel and group and convention, because leisure travel, our expectation is that's going to come back more strongly and that drove a lot of improvement at hotels over the summer and people continue to book cruises for next year, even though the cruise lines are not operating now. so there's pent-up demand for leisure travel people will want to travel it's going to help domestically, because probably for a lot of 2021 people won't be comfortable going abroad, even if it becomes possible so that leisure travel is going to help things it's going to take a little longer for business travel to come back and as we were talking about seasonally, this is the period when the hotels would be getting a lot more business travel there's not as much pent-up demand for that. but leisure travel, that can't

be replaced with a zoom call people are still going to want to get out for leisure, and i think convention are a longer path, especially because of the density of those events. >> right we've talked about pent-up demand for leisure and how americans have foregone a lot of vacations this year, obviously, and as a result they've spent more money on their home, they've bought cars, consumer electronics. do household balance sheets have the ability to have spent more on those things on the swimming pools and pelotons and still have some left over to go on vacation when the situation allows >> well, i think a lot of travel was foregone this year and the travel that it's being replaced with is a lot of drive-to markets and beach markets. and one of the reasons we prefer hilton, is they actually have a lot of exposure to limited service hotels, the hampton brands and the homewood suites where people are driving and taking their vacations that way.

and the properties that are doing worse are the luxury and upscale in the larger cities, in new york and san fran and boston, where typically you're going to get a lot more business travel that's not coming back. but leisure travel, those drive trips, and especially i think because so much was foregone this year, even though we see it recovering, there will be a lot of pent-up demand. >> robin, again, congratulations. it's an achievement. congrats to you and your team. robin farley on travel and leisure. and we're about 20% through earnings so far on the s&p with the worst to this point out just last night, netflix. b >> netflix was a disappointment, but by and large this has been a spectacular earning season let me show you some of the other winners besides netflix, but snap, that is up 30% wd-40, tremendous numbers

overall. teradyne, tremendous numbers and nasdaq, tremendous trading going on, of course, in the last few months they've reported great numbers on top of that let me show you one problem. texas instruments, a company i follow, a real bell weather. earnings and revenues, huge beat for them q4 guidance above all the expectations automotive was strong, personal was strong here. here's the problem great numbers. look at this, the stock is not moving this has been a problem with a lot of these companies reporting great numbers, but the stocks aren't moving that much. and that's part of the issue here so we've got about, oh, 20% reported, 85% beating expectations by wide numbers, almost 17% but we're still not seeing a move up. and look at the s&p 500. it topped out august 12th, the day before earnings started and you see it's been going century nowhere. we need to get stronger moves on the upside on top of these great

earnings reports, guys, back to you. >> still got a lot of numbers ahead, bob thanks "squawk alley" is going to srt in a moment. don't go anywhere. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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