companies, business week of earnings season. a final campaign push with just one week left. you know what that means that means today is tuesday and elections are on tuesday, so it's next tuesday, one week. it's october 27th, 2020. "squawk box" begins right now. ♪ ♪ thunder, feel the thunder ♪ lightning and the thunder ♪ thunder, feel the thunder ♪ lightning and the thunder, thunder, thunder ♪ ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin and the u.s. equity futures at this hour a little different than what we were watching yesterday. things have stabilized a bit for now. you can see the dow futures up by 14 points the s&p futures up by 6. the nasdaq up by 36. but this comes after a very rough session yesterday. the dow at one point was down by almost 1,000 points yesterday. it's now coming off its worst daily performance since the

beginning of september end of the day it was down by 650 points closing below 28,000 for the first time since all the way back since october 6th this actually wiped out all the gains you have seen for the month of october for the dow the s&p, the russell 2,000 and the dow transports saw their worst day in the month as well we came off the very worst levels, didn't end at the weakest levels but still the dow was off by 650 points. all 11 s&p 500 sectors were negative yesterday the worst performer, though, was energy it dropped by 3.5% and that's because oil prices have seen so much weakness this week, too look at oil prices this morning, little stabilization there as well you'll see that right now wti is up by 28 cents to 38.84. then if you want to check out treasury yields, too, this is another area we watch pretty closely. the ten year recently who had seen that yield back abov above .0.8%, this morning,

0.789% the futures could be very different in an hour from now and that's because in the next 60 minutes we are expecting a flood of big name companies to start reporting earnings among them, 3m, caterpillar, eli lily, merck and pfizer in the next hour, andrew. >> thanks, becky. there's a lot going on let's tell you what's making headlines at this hour right now. eli lily announcing its ending its previously paused u.s. clinical trial of its antibody drug in hospitalized covid-19 patients the national institutes of health found while the treatment pose nod significant safety risks it was unlikely to help with recovery. we'll talk to eli lily's ceo in the next hour and so much more. separate news, a study out of england could suggest immunity of coronavirus is gradually wearing off. researchers looked at more than 365,000 randomly selected people and found more than 26% decline in covid antibodies over just

three months so that's little bit concerning, especially for those who had it. i know i have a couple friends unfortunate lip who had it but also like supermen afterwards or at least often feel like they are. now questions about how long that superman status continues. >> andrew, we need to -- we can't just look at the antibody measurements we need to actually look at how they react to a new introduction of the virus with t cells and still have circulating b-cells theoretically that could remake the antibodies you might not have tighter of a concentration of the original antibodies you made or may have t cells. i don't know this is preliminary. and god i'm being hopeful, imagine if it's -- if that just take that story and it is

absolutely true in the worst case scenario. that makes it -- that's a very bleak future for all of us hopefully that's -- the other thing just to mention is this is the remdesivir combo with eli lily that we talked about. it's a little bit weird that it didn't show benefit in patients that were hospitalized, that were more seriously ill because how are you going to give it to people who are less seriously ill if it's infusion you only can give it if you're in the hospital. how do you do it -- >> because there's limited numbers. >> the other thing is that i don't think that eli lily was that cocktail. remember we talked to the reagain ron ceo about how there's two different parts of the spike that they have so that it can't mu tate around the spike. wasn't the lily a single cocktail i don't know i don't know whether remdesivir in combination with it doesn't work i'll say one other thing i took as it could be as a way of

looking at this positively because we've ascribed the president's quick recovery to him getting remdesivir. >> right. >> and an antibody if it doesn't work, then very large 74-year-old man came back pretty quickly without something that -- if it didn't work. >> without a miracle cure. >> he's out there doing eight rallies a day. i don't know >> joe, can i ask you -- >> regeneron drug is different i'm hoping the cocktail works. >> can i ask one other question, the idea of the t cells in your body being able to produce those antibodies again -- >> no b-cells. >> the b-cells >> they're able -- if they're able to reproduce the antibodies because they have seen this before. >> right. >> that would be my guess on it, but then you also have the situation of what if the there's a mutation in covid, just like the flu. you can get it probably won't

get it twice in one season because it doesn't mu tate quickly probably although sometimes there's different strains going on that's in my head what i'm thinking but who knows. >> right. >> isn't there an expectation we'll get some form of a vaccine, not just once but potentially annually i feel like we had that conversation as well. >> oh, yeah. >> i don't know. >> yeah. let's hope it's not like 40% or 50% like these flu vaccines. >> 75, 80% would be nice all right. it is a week from today, though. that was news you can use i gave you that the election is coming. but 60 million people already voted. sit really like election day anymore? we have never seen anything like this before. but in washington news, amy coney barrett was confirmed to the u.s. supreme court last night. took the first of two oaths. she needs to officiallyjoin th high court

and i'm glad i preread a lot of this ch it says in 52-48 vote with only -- with only republicans voting yes okay they changed it, good. thank you. there was only one no and we know who that was because murkowski flipped at the last minute susan collins in a tough race had to go with no. but barrett became the first justice in more than 150 years to be confirmed with zero support from the minority party. it's slowly kind of gone down and down and down for the last four or five or six that we've seen when it used to be 98-1 or 97-2 something. she'll be the fifth female justice in the court's history and feel the seat left vacant by the late justice ruth bader ginsburg at the white house, justice clarence thomas administered the constitutional oath to barrett before a crowd of about 200. chief justice john roberts is set to administer a second oath known as the judicial oath at a

private ceremony at the court later today. andrew. meantime, let's bring you today's executive edge a couple different pieces of news for you. one, uber and lyft they're sparing no expense to convince california voters to back them at the polls it's called the yes on prop 22 it's a group that wants gig-economy companies to be able to classify drivers as contractors. they spent nearly $4 million in the past month on facebook ads it's more than any other political campaign including for president, if you can believe that the proposition would exempt the ride sharing companies from a state law forcing them to reclassify gig workers as employees guaranteeing them benefits such as overtime. it's a debate we had so many times on this program about whether drivers should be considered contractors or should be considered employees and get the benefits that come with that becky. >> andrew, this seems like it's

the final countdown, though. there have been so many times when they thought they were going to have to do this they have dodged it, gotten other ways around it but this is it either it passes or they have to go ahead and move forward and pay these people benefits, give them paid time off i think there's a stay for 30 days but that was 30 days and the countdown clock was a week ago. probably three weeks and counting you'll find out whether or not these companies actually have to do that and what that means to their business model is going to be something else, too. >> i think the business model is going to change is what's going to happen probably i think for the most part the costs of -- the cost of the drive in the state of california is going to change so materially that it would probably diminish the use of these things. that's the other component of it when you start to think through all the permutations of what happens. >> all right in other news zoom is rolling out end to end encryption for both paid and free users to make your video chats and meetings more secure

hosts and participants both have to switch on the manual protection for it to kick up started back in may to try to develop the feature after a huge surge in usage during the pandemic and a lot of question about how safe those chats were. >> i was about to make a joke but i won't. coming up, when we return, an exclusive interview with the robinhood co-founder and ceo vlad tenev doesn't speak that often. rare conversation with him that company has just taken off during the pandemic. first as we head to the break, check out this morning's biggest winners and losers stay tuned you're wchg quk x"atin"sawbo on cnbc 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.

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certain cases. in an exclusive interview i spoke with robinhood cofounder and ceo vlad tenev and asked about the massive user growth during this pandemic and whether anticipated it would happen like this >> i don't think anyone could have expected or predicted how 2020 would unravel or shake out. you know, the best we could do is control the things and improve the things that are under our control. so, as you mentioned, we had a huge increase in interest from customers, both new customers signing up for the platform and existing customers

the majority of the industry followed suit and replicated the model. and i think at that point you saw the barriers to entry go down for investing, not just for our own customer base but industry wide in the u.s and so that allowed a new generation and a new type of customer who was previously underserved to start investing for the first time and i think in march what you saw was a lot of these customers who were now able to invest became interested in it because they saw the market have a large

drop. >> back in early march you might remember there was a systemwide outage that disabled customers from trading on an historic market rally i asked vlad about what steps the company is taking in terms of trying to work with customers, especially in the options market during a time of such uncertainty and of course, all the potential volatility ahead including the elections. >> what we've seen is they typically see volatility in market downturns as buying opportunities just because they're at the beginning of their investing journey and i think they recognize that there's many, many decades for things to smooth it out in front of them. in terms of volatility, we have to be prepared for anything. it certainly would not be a surprise to see greater volatility heading up to the

election and the weeks and months afterward so we have been investing more in terms of making sure our processes are really solid and we're taking a look at things like margin and margin requirements for different securities we're also continuing to invest in the scaleability and reliability and redundancy of our systems. >> i also asked him specifically about the notion of people putting their stimulus checks to work in the market and how he tracked this among robinhood customers. >> we saw an impact of people depositing their stimulus checks into robinhood.

for the wealthy. and i think what you're seeing now is sort of a cultural relevance ascribed to investing that hasn't been there before. if you look at, for example, spending and consumer activity in america, nobody really asks the question of is it too easy to buy a flat screen tv with one click and get it delivered but people are now asking the question of should it be this easy and low friction for people to invest in the markets and our belief is the more we lower the barriers to entry, the

more we level the playing field and allow people to invest their money at a younger age, the better off our economy will be and the better off society will be because we kind of live in the intersection of capitalism, democracy and innovation and i think that it's a very interesting place to be. >> we'll have a lot more of that conversation with the ceo, co-ceo of robinhood in the next hour, including how he thinks about dave portnoy, who we also talked a lot on this show and how the bar stool founder is impacting millennial interest in investing and talk about so many other issues, including some of those order flow questions that we talked about in terms of how that works becky? >> hey, andrew it's fascinating interview i think the real rub comes down to that last point you were going back and forth with him. we want to see younger people able to invest you want to see the barriers to

entry come down. you want people to have a longer time frame so they can really make the most of it because the law of compound interest is your friend if you invest in the market much earlier. i think the question that comes back and forth is do these people who are just getting involved do they have enough of an understanding about the volatility that could be coming, that it's gambling if you're pulling your money in and out and making trades on a constant basis. it's investing if you pick stocks and leave it in and ride through that volatility. that's the huge question with things no doubt i would rather see stimulus checks in some way go into investments for people because this was $1,200 check to every single person who came through below a certain income level great news if you're actually putting that to work for you and getting some savings done for your retirement or for other goals you might have whether it's to buy a house or go to college or something that question of the volatility and especially at a time when the market has gone straight up for so long. that's where you get a little nervous with it. you don't want to see people get burned. >> and i should note, there's a

lot of trading that goes on and on robinhood it's not all buy and hold. in certain cases a lot of leverage used, options used. so understanding how the markets work in the like become more and more important i will say and i any he said it in this clip and i know we have a clip later which was so interesting to me about the mindset. he believes that because so many of these people are young, that he thinks they're putting their money in now and even if the market is going down, that they don't care because they just see that as more and more of a buying opportunity every time which is an interesting signal about maybe how this generation thinks which would be a very positive thing, but what i always worry about is of course if you have another downturn do they take their money out just at the worst time and we talked in a couple other pieces of this interview about how they're actually working with clients to actually think through some of their trading because that's the other thing. there's no phone call there shall there's no broker to call, nobody to say stay in the

market, don't sell now or buy now that doesn't exist in this world. >> can you imagine your whole life interest rates being at 0 when i was a kid, i -- remember when i walked -- i've got stories. but can you imagine growing up with the fed on full bore your entire life, grade school, high school, college, investing, zero what are they supposed to think? there's been a fed put their entire life. it makes you wonder. i hope it's not a bad ending we'll learn about loss you know who said that max katie. you'll learn about loss. hopefully that's not the case. we digress speaking of gambling. >> that's right. why las vegas sands could be leaving sin city

we've got that story coming up next first, though, as we head to a break, check out this morning's biggest pre-market winners and losers a.i.g. leading the way this morning up by 7.2% "squawk box" will be right back.

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♪ ♪ welcome back, everybody. las vegas sands shares are rising on reports that the company is considering a sale of its las vegas properties for upwards of $6 billion. the company would only confirm that it is in early discussions.

the stock this morning up to 49.74. sands owns the venetian, palazzo and account for 10% of revenue at the company ceo shelden edleson is betding on growth in asia. when we come back, we're waiting on quarterly enis.arng get ready for the flood. we'll be right back. at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice,

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♪ good morning, u.s. equity futures at this hour have actually improved a little since we started watching this morning. we're kind of flat and the nasdaq actually doing a little bit better, as you can see, up about -- nasdaq had a wild session yesterday initially tried to make a stand then is a coupled then put the brakes on what could have been

worse. i had visions of a really bad day at one point when we were down 1,000 guys. do you remember the last time we had a real covid scare we had come back a long way and had that 1900 point day. and i don't like saying 1900 as a -- putting those words together we were down 1,000, i was like, wow. i hope this doesn't really accelerate and it didn't. it came back down 600 and now stabilizing a little today any way, what do you got >> 3m out with their -- we have been waiting for these numbers it looks like the company came in with earnings of $2.43 versus the $2.26 the street was looking for. also looks like revenue beat earnings, too. revenue sales at 8.4 billion versus 8.32 billion the street was expecting. the 3m has so many more businesses this is so much more than the post-it notes you're thinking about.

we heard about 3m because of the masks they make, n95 masks they did say they have seen challenges because of the covid-19 pandemic but they returned to positive organic sales growth they had sequential improvement across businesses and across geographies. if you look through some of the things they really saw strengthen they talk about the areas where they saw very strong strength heading into this was personal safety. you got to think the masks there, home improvement, data centers and bio pharma filtration that's one of the things that 3m does they saw that not only through the quarter but continued to see momentum in those end markets into october as well improvements in other end markets versus the second quarter, so sequentially they're talking. they saw a lot of them remaining down year over year including healthcare elective isn't a surprise given what's happening with hospitals and how many haven't been able to do elective surgeries. in terms of the guidance the company says it is not because

of covid not able to give the full duration estimate for what's going to happen with this, the magnitude the pace of recovery across the businesses because of this it's not prudent to issue guidance at this point. that's pretty standard for most of the companies seeing this interesting to see they have seen improvements across geographies and businesses that stock up. andrew, are you looking at other numbers? yeah, we have numbers in from caterpillar reports results. earnings coming in at 1.34 per share adjusted versus 1.18 was the estimate revenues up $9.88 billion. versus $9.8 billion coming in marginally better there. but, that stock not loving it either, down just marginally but this is just obviously seconds after this is crossing and some people will be trying to adjust to all this.

>> david ricks the ceo of lily ch we'll have him on later lily already had the news from late yesterday about its antibody drug in combination with remdesivir and they're going to end those trials because it didn't look like it was working. there you can see lily right now at 139.90. i have 141 closing and lower bid and ask. we'll see what happens because the company is reporting adjusted net, which looks to be below where wall street was at the adjusted earnings per share is 1.54 andthe estimate was fo 1.71 now for the full year, the company -- the estimate is 7.20 and the company still sees 7.20 to 7.40. that appears to be okay, but the revenue number in the third quarter was 5.74 billion and they were looking for 5.88

billion. for the full year revenue, looking at that, 23.7 to 24.2 and that seems okay, too 23.869 is the estimate what you're seeing in the stock. i want to see the stock trade number one because i've got a much lower bid and ask right now than 139.90. i have 133.70 to 135.80. and i haven't seen that trade, that change. so we'll see but you had the set back last night, which i don't know financially how big that would have been necessarily on the booi antibody, but this looks to be lower. andrew, we will talk to david ri ricks in just a little while. >> yep, we will. we have merger news to talk about right now. amd acquiring xilinx, price tag

$35 billion in total you might remember that we've been talking about this potential deal now for a couple of weeks so this was expected you're looking at advanced micro down 3.5% on that price tag. xilinx up about 12%. we're just going through this right now to look through exactly what the terms of the transaction are. it will bring together it looks like what they're saying brings together 13,000 engineers and collectively $2.7 billion in annual rnd investment. interesting they're making that point. but, in terms of the exchange ratio, it will be 1.7234 shares of amd common stock for each share of xilinx common stock 134 per share of xilinx common stock. becks? >> we could probably add to that that they are targeting $300 million of cost energies within the next 18 months or within 18 months of that being the deal

being done cost energies a lot of times that means layoffs they do say that the acquisition will be immediately to margins, earnings per share and free cash flow. joining us right no talk about all the news and help us digest it is joe taranova and is a cnbc contributor what do you think? let's run through some of the earnings news that we just got coming out companies like 3m, lit better than expected. but saying it's really hard to see how long this pandemic is going to last and what's that going to mean for the results down the road. >> yeah. listen, 3m needed that they need the improvement in the transportation and electronics division more than anything else it's good that they returned to organic growth, as you know, they suspended the buyback program so the return of that capital allocation strategy is going to be important looking forward, becky i'm not sure if i'm ready to suggest stepping into 3m right now. i think there are multiple head

winds still ahead of it. >> what about caterpillar? a similar global company. >> that's the interesting one. >> waiting for a rebound, right. >> well, that's the interesting one. there's been a strong outperformance, full disclosure, i own caterpillar. it's been outperforming relative to its peers and it's really doing that on the belief that there will be some form of a wave whether it's blue or red and therefore you're going to get some infrastructure spending but i do think you're at the point we're dealing inventories are reaching the trough. they've done an excellent job in terms of de-stocking and really now it's about the ability for there to be a sustained economic global revival if we get that inventory levels are at a low enough pace where i think that you will see 2020 be a rebound year for caterpillar so that's the one i'm excited about, becky we were challenging towards an

all-time high within the last couple days we're falling back a little bit, but for me, caterpillar over 3m offers more of a compelling investment opportunity. >> you're excited about it, but the market is not this morning that stock is down almost 2%, even though the company beat both on the bottom and top line. what do you think is going on? >> i think the expectations were high and you know, that's been the case listen -- >> beat expectations. >> it's been very difficult -- well, the expectations were very high but it's been very difficult for companies in this quarter to have price performance that equates with earnings beats. very challenging most of the companies that are reporting, they're reporting strong quarters. but we're not seeing the strength and reaction for the share price. so i don't know, you know, if that suggests to investors that maybe there's a full or fair evaluation for a lot of these stocks but, there's a very high bar to

exceed i think that was in place for caterpillar. i want to look through that. i want to have more of a long-term focus and understand that they're navigating a secular shift here that i think is finding its trough in the moment and that's where the investment opportunity is for me >> you know, i get your point about hoping that there's going to be additional infrastructure spending that might come through next year or soon afterwards, but when you look at caterpillar as a global company and it's so tied to the global economy, what are your thoughts about the global economy is that something you feel pretty confident in given the increase in cases of covid we have seen lately. >> there has been a manufacturing v-shaped recovery if you measure the domestic ism manufacturing readings here we're recording mid 50s something -- >> quarter over quarter. >> well, on monthly basis those ism readings are at levels we haven't seen since early in

2019 in addition to that, even european manufacturing readings are at their best level since early in 2019 and chinese manufacturing is recovering at its best level in nearly two years. i think it's been very surprising the recovery that you're seeing in manufacturing and just by the nature of the industry itself i think there's a return to work that would be faster for manufacturing than in the services segment just because of the distance that the industry itself allows itself to operate. so, i think there's been surprise in manufacturing. >> joe, did you see this amd -- i looked at it and it's like -- >> i did >> i got deja vu all over. why is xilinx up another 14 points when we heard about it it was going to be 30 billion this was just a couple weeks ago and it was up a lot that day and amd finally consolidated now it's 35 billion. and we knew about this you don't normally see stock you

already know is play go up that much amd is 35 billion instead of 30 billion, are people going to say that expensive they were saying 30 was expensive for amd to pay i'm just wondering this is weird, isn't it? >> but here -- >> go ahead. >> yeah. joe, i think what's important here is now we have clarity on the structure of the deal. listen, lisa su over the last six years has done an incredible job navigating this company to the position where it's in right now where one could make the argument that not only are they performing better than intel but they're gaining so much market share. >> okay. >> but this deal is now a cash deal it's not a debt deal and that's the clarity that investors wanted. >> all right, joe. i think we got some places to go, people to see. thanks, joe. i think we'll see you again any way. we'll be right back. i can't believe it.

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♪ welcome back to "squawk box" i'm meg terrel we have pfizer's third quarter earnings to bring you. it's a slight beat in terms of earnings per share coming in at 72 cents adjusted basis versus streets 71 cents revenue was a miss for the quarter $12.1 billion versus estimate of 12.32 billion dollars. basically looks in line.

the company saying that the guidance is based on the trajectory of the pandemic's impact on pfizer's business which was less severe at its peak than originally anticipate bud recovering at somewhat slower pace than it originally expected the company says the current guidance continues to assume no revenue contributions from a potential covid-19 vaccine of course, we are potentially awaiting for data on that vaccine this week from pfizer, not seeing that this morning the company is noting that its vaccine trial enrolled more than 42,000 participants and almost 36,000 of them had their second shot as of october 26th. pfizer there down about 1.8 brs in the premarket guys >> okay. meg, hopefully see you again at some point because we want to talk about a lot of pharma news today. we want to talk about merck at this point merck is also reporting results just make sure i have the exact estimate for the company

merck is reporting as they do they break out a lot of different numbers. the eps number adjusted looks like 1.74 for merck. 1.74 and just make sure that this is an adjusted number that first call has first call -- it's coming up right now. also 455 to 465 is what is company is looking for 1.34 would be a good beat for merck. see whether the stock bounces on this 7887 bid now to 7942, so that would be higher. 1.44 was the estimate. so this is in sharp contrast really to what we saw with lilly. 4.55 -- here is an adjusted full-year net. 5.91 for the full year on merck. 5.91 to 6.01 and it's 5.72 is

where the estimate is right now. so that is raising the range to above where wall street is at this point then you have the breakdown of a lot of different -- if you watch nightly news, you heard of all these things vitoran, guardacel, zedia, used to be a big drug, remember, and now it's all the way down to just $103 million as there's been competition as things go off of patent. but, big pharma day. lilly, merck, pfizer and we will have david ricks on in a little bit, beck. >> yeah. all of that, by the way, has helped all the dow components, the dow is indicated up by 73 points when we come back, as joe mentioned, it's a big morning for the pharma companies all reporting quarterly results

so many of them. how will the election impact that industry? we'll talk about that with an analyst right afr isteth when i was in high school, this was the theater i came to quite often.

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feels like really like it's pharma day showing on the squawk news line, sell hearty, analysts, joe terranova ve joirejoins us, a c market strategist and cnbc contributor. there's things that affect the industry itself and the individual issues. let's start with the bottoms up here so lily is saying that there was some lower sales, i think, of one of their drugs also higher marketing and higher

r and d for covid research is this today a disappointment about the trial not working on the antibody or was this a fairly significant miss on the top and bottom lines for lily? >> good morning, thanks for having me. despite all of these expectations, we still anticipate a solid quarter with strong results we started making increase in the third quarter ets of $6 billion, which points out 8, 9% year on year growth essentially that's correct r and d expenses will be higher due to covid research, particularly on the monoclonal antebod an antibody we have a long-term, a strong brand, particularly when you

think about tr, it made a recent acquisition of therapeutics, so we clearly see the focus on innovation, and it has a really solid balance sheet which is really important in the current environment, so essentially, yes, there was a setback about the monoclonal antibody and hope to hear more today those calls are common as we have seen, which was able to quickly resolve it and with astrazeneca, and we think it's a good approach, and the company is taking precautions. so essentially we're very positive about antibody treatments, and we think it's something that eli should be able to resolve. >> you look at the group and think, wow, we've got pressure from washington, d.c the president talks about lowering prescription drug costs. we have all the things we used

to talk about with patent explorations and drug development. can you look at them monolithically or do you have to look at the fundamentals of each one and decide what to do? joe terranova? oh, he's frozen. take a shot of that, because it looks like he is thinking so hard about that. i mean, i asked him that, and i was looking over, and i was thinking, this is going to be the greatest answer in terhis entire career because it was so measured they didn't tell me anything they froze it on him like that we're going to unfreeze joe terranova. thank god his eyes aren't closed or his mouth's not open. anyway, we're going to unfreeze joe and take a quick break, work on some of these technical issues you know what, i bet you he still does have a great answer

eli lilly, david ricks on his company company's quarterly results, the futures are indicated up 110 we have gone to triple digits, and we've got caterpillar reported and merck stay tuned, you're watching "squawk box" on cnbc

my name is henry. working within amazon transportation services, i really saw the challenge of climate change. we want to be sustainable, but when you have a truck covering over 300 miles, or you have flights going hundreds of miles, it's a bit more challenging. we are letting the data guide us to the best solution. it's inspiring to try to solve a problem that no one else has solved. that's super exciting.

good morning, and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. let's show u.s. equity futures we've got so much earnings news crossing the wires literally as we speak that this is all moving around right now, the dow looks like it would open higher, 101 points higher, nasdaq up 55 points, the s&p 500 looking to open about 15 points higher. becky. >> andrew, thanks, we've got all the major stories affecting your money covered this morning phil lebeau is covering jet blue results. we start with meg tirrell who

has a break down of all the earnings from the big drug makers so far it's a bit of a mixed picture. >> it is let's start with pfizer, that company reporting a bit of a mix, beating on the bottom line but missing in terms of revenue, sort of tightening its full year guidance, and of course everybody is looking for pfizer's commentary on its covid-19 vaccine we are expecting data potentially this week on that. stock down less than 1% now. it's recovering from where it was earlier. merck was a beat across the board. revenue coming in at 12.6 billion, versus 12.2 billion a huge beat by about $0.30 in terms of adjusted e.p.s. k keytruda, the company also talking about efforts in covid-19 it's a little bit earlier than other companies are, and it's a little bit quieter about communicating what it's doing, but it reports that its antiviral drug, an oral pill for covid-19 is now in two large

phase 2/3 trials, two vaccines in development for covid-19, one of which has started phase 1 the other will start phase 1 soon that's going to be a big commentary later and eli lilly, it was a miss, and we're seeing the stock down. talking with folks this morning, partially the earnings amiss, and also the news that the company's antibody drug for covid-19 didn't appear to work for hospitalized patients. the company has had more positive results in earlier stages of the disease. it's waiting for an emergency use authorization decision from the fda on that, and interestingly, the company says that achieving the higher end of its revenue guidance for 2020 is dependent on getting some revenue from anti body drugs for covid-19 the company says for the entire year, it plans to spend $400 million in its covid-19 research and development efforts. guys i'm going to toss it over to my friend phil lebeau know. phil. >> we have jeff blue's quarterly results for the third quarter,

and like other airlines, it is better than expected but still a loss for the third quarter the company had a loss of $1.75 a share. the estimate was for $1.96, revenue 492 million, a little bit better than wall street was expecting. the estimate for $466 million for third quarter revenue. they end the quarter with $3.1 billion in cash on hand we're just going through to take a look at other metrics in terms of daily cash burn, what the projection is for the 4th quarter. we'll go through those we'll have a little bit more a little bit later on. guys, don't forget, we're going to be talking to robin hayes, coming up this afternoon you don't want to miss it on the closing bell we'll talk about the third quarter and more importantly, what impact they're noticing from this increase in coronavirus cases around the united states. guys, back to you. >> phil, thank you now let's get to the market slide that we saw yesterday and what you need to watch today as we head towards the opening bell dow is down by 650 points.

that's just over 2%. that happens to be its worst daily performance since september 3rd. mike santoli joins us with more. we were down almost a thousand points at one point. we didn't end on the lowest levels. >> exactly which is why in a sense it was perhaps important but also inconclusive in the short-term the market did break down below levels that a lot of folks have been watching very closely to see if they did hold up or give away for the s&p 500 that's just above 4,400, 340 on this s&p 500 etf this is preopening level about to regain about a 1/2 percent of yesterday's losses we lost about 64 points on the s&p last night, so up about less than a quarter of that right now. 34 hundredish, let's call it that last week's lows, 34.15. the pressure points were the rising covid cases, you did see the travel and leisure stocks go, and s&p did impact software

areas, but apple, amazon, the bullet proof names of the nasdaq did do the best to support the nasdaq there we're rising in the pre-market up to levels that last week represented the lows that's the back and forth happening. industrials very the s&p, we had 3m and caterpillar reporting, a back and forth response to earnings in general have not been particularly good that's still an uptrend for the industrials. this was your closest approach right here, june 8th when we were excited about the big jobs report and the reopening since october 12th, that was basically the first big week of earnings the market has peaked out there, down a few percents. that's the back and forth we've got going as we are a few days away from an election, which i think just in general puts people a little bit on hold. it's not about laying big bets about potential results or impact, guys >> mike, you saw on the news this morning, deal news today, too. amd, and xilinx, just out in the

last half hour, does that tell you anything about issues or a one off on amd and xilinx. >> amd being one of the leading companies in a leading super sector of tech, and pressing the advantage, a market share gamut. the market has generally rewarded m and para in this last stretch. the market wants to see people do shotgomething with those high priced currencies and some of the capital they have working. >> good to see you, and we'll see a lot of you through the day too. eli lilly announcing it's ending its previously paused clinical trial of its antibody drug in combination with remdesivir in hospitalized covid-19 patients. eli lilly ceo david ricks will be joining us on the company's global covid-19 response the recently reported quarter,

numbers are a little bit below expect tag expectations, top and bottom line before we head to break, let's get a check on the markets, "squawk box" is coming up next, not quitup te o triple digits anymore but looks better than yesterday. we'll be right back. ♪ frds it's moving day. and while her friends

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. drug maker eli lilly out with third quarter results reporting an adjusted profit of $1.54 a share. that was below expectations. revenue slightly below as well and eli lilly also announcing its ending its previously paused u.s. clinical trial anti body drug of covid-19 patients. the national institute of health found while the treatment didn't pose significant safety risks, it was unlikely to help with recovery joining us is eli lilly ceo david ricks. thanks for joining us. this is the one with the remdesivir where we had the pause briefly, then it went back on and now it doesn't seem to be beneficial for which class of patients that matters, doesn't it >> it does thanks for having me on on earnings day, and i would like to touch on earnings, but this study was paused a few weeks ago as independent investigators looked at the data they were concerned, perhaps,

patients weren't benefitting as we had hoped in hospitalized settings these are patients who had symptoms many many days ago. they advanced in the hospital. many were on supplemental oxygen this is one setting we're studying this medicine, and i think it now shows probably this won't continue in hospitalized in that later phase. on the other hand, we're also studying and have very strong results in newly diagnosed patients, so catching the disease early where you can reduce the viral load with an antibody appears to be making a significant difference we're studying in a large prevention, this is one of many studies we're doing. it's disappointing of course we would have liked to have shown a benefit in a hospital. it doesn't appear that that benefit is there so this chapter of that study will close the study will continue looking at other medicines as is appropriate. >> it sounds like the viral load gets to a certain level and maybe the antibody is isn't e t

effective or there's already too much virus or concentrations are too high it's not a cocktail. regeneron has the spike protein where they've got an antibody to two different areas of spike protein in case it mutates around it. do you think that a cocktail, and i know you're developing one of those, i think, as well does that seem to be what we're talking about here that it needs to be more than a single antibody? is that the problem? >> i would be surprised if that's the problem i think this was monotherapy we also have a combination of two because it's two just antibodies, very similar to the regeneron approach you mentioned. i suspect this more has to do with what we know about covid-19 is it's a two-phased disease you have the initial phase which is characterized by significant viral replication and the effects of that on the body, causing symptoms, and the second phase where unfortunately people develop their own immune storm,

which causes organs to shut down, and you end up in the hospital and it's probably, remember, remdesivir is the background in the hospital, which also reduces viral load there may not be enough viral load left to reduce. that's how this drug works instead, we might want to use anti-inflammatory drugs like steroids and illumiad which has proven effective in this setting. >> how can you get to earlier patients if they aren't seriously ill or in the hospital, how can you do that? >> in our study we asked people to volunteer if they are newly diagnosed, a new pcr test that is positive, in particular those at high risk we know we're going to have not enough supply for everybody, given the current state of the pandemic, those over 55 or at high bmi or obesity indicators, they did well on the therapy if you caught them early. that would be the treatment

strategy we're seeking with the emergency application. >> we have hardly any time becky wants in she may want to talk about the antibody i want to talk about the results, you said you wanted to do that. most of the short fall in the top line is due to trulicity, are people not getting treatment for things like that because of covid, is that the problem >> no, that's not the problem. we had a strong quarter. i think this quarter demonstrates the resilience of a company like lilly, 5% growth, amidst all the difficulty in the health care system we do see some dampening in new starts on therapies like diabetes therapy that's concerning for the long haul but this miss on trulicity versus the street expectations was primarily driven by prior period accounting assumptions we make about rebates and discounts into government programs we had assumed those would be back end loaded. it turns out people refilled

trulicity aggressively in government programs in q2 and q3 we had to put two quarters of discounts into one that was the biggest part of the miss and we're selling more into medicaid than we thought and that channel mix is adverse, because medicaid has lower prices, still profitable but lower prices for tr urulicity. and we spent $25 million in covid therapies that wasn't in our guidance we're reaffirming the original guidance for the year, 720 to 740 non-gaap and that includes 400 million in covid expenses. overall, we expect a solid year for the company. >> hey, david, just back to the antibodies for a moment, this is kind of a follow up on what joe was asking if we don't know who's going to get really sick, and you have to reach them early, that's always been my question with this, how do you know if the people who have signed up before they really got sick when they were first diagnosed, if that was the drug helping them out, the

antibody helping them out or if they're people who didn't have a bad reaction to it the most confusing thing about covid is how it affects people differently, and the comorbidities f you're overweight, have asthma or diabetes and there are other people who are seemingly healthy that have bad reactions from time to time, too. have you made any progress on who's going to have a bad reaction, and who's not, is it something to do with genealogy or something else? >> that's an area for scientific inquiry. we specified two indicators of risk, over 65 and a body mass indicate over 35, which is obesity. there's a lot of people that fall into those two categories who get infected with covid, probably more than 20 or 25% what we did in our study, becky, was to randomize people to placebo or drug and blinded that we know that when they got drug, they benefitted by staying out of the hospital, emergency room, and with reduced symptoms and

viral load that was true across both groups, high risk and low risk because of the scarcity of supply we anticipate, we want to focus the therapy on the highest risk individuals for us, that's over 65 and higher body mass index the idea here would be if you have a new diagnosis, and someone you know, or if you fall into one of those categories, to seek out a treatment like this, so that your odds of advancing into the hospital get greatly reduced. that's the strategy with this medicine >> part of the, i mean, it's expensive to try to get involved with all of these things, too. at a moment's notice, i guess, as well, david, so costs are a little bit higher. that would affect the bottom line. >> in the grand scheme of things it's a good investment for society and a good investment for us i think we've proven if nothing else, we can go from 0 to 60 very rapidly nine months ago we didn't know what this virus was. today we have an application at

the fda that could potentially keep a lot of people out of the hospital i think that's what drug companies are here to do take those risks, invest accordingly, and help us hopefully escape from the situation. >> you mentioned earlier in talking about trulicity how, you know, it's sort of very difficult just to understand exactly what's going on with rebates and middlemen, and everything else. you have washington, a huge target on your back from both democrats and republicans, and you've got this convoluted sort of delivery system with the middlemen. we need to keep developing drugs, and it may be the cheapest thing we can do in terms of chronic conditions. how are you going to thread the needle and more likely to be put on, you know, pbms and the way that it's, you know, medicare operates, et cetera. >> well, it is a convoluted system, and i think we have to make estimates about how all of these discounts and rebates for our company, more than half of

every dollar we sell $0.50 on the dollar goes to other entities, to hospitals, pbms as you mentioned, insurance companies, those costs lower costs in other parts of the health care system they haven't lowered costs for patients out of pocket than they pay at the pump. that's problem number one in our health care system we want to see the discounts flow to the patients secondly, i think, as you're pointing out, we could de-convolute the system. we look forward to whoever is in power to try to do that, because it certainly is complicated, so complicated, most experts can't even understand it so we're interested in reform and making the system look better for patients number one, and more transparently for everyone else as a second priority. >> david, we wish you well, and you're right, after the election, a lot of things need to be figured out in terms of -- because it just constantly hear the pharmaceutical companies bashed for price gouging and

everything else. that's not productive either so anyway, we appreciate it. thank you. >> thanks for having me on take care. >> you're welcome, andrew. >> okay. thanks, joe. when we come back, robin hood's cofounder and co-ceo on the rise of the retail investor the idea of gamifying investing. we'll talk about the aflac trivia question. on this day in what year did china's population reach 1 billion people we'll have the answer when squawk returnsft ts. aerhi congratulations! welcome to the aflac program. 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.

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box," everybody. the answer to today's aflac trivia question, on this day in what year did china's population reach 1 billion people 1982 meantime, online trading app robinhood, which pioneered commission free trading boasting 13 million users through the pandemic it is seeing record growth among its user base in trading action. we have talked about this company a lot before the company also making more per share than any other established

brokerage. i asked robinhood cofounder and co-ceo around the skepticism known as payment order flow, and whether other people are getting in front of the trade, something else we have talked about on this show. >> we didn't introduce payment for order flow but we did create the commission free model that the entire industry has moved to, and that's by and large led to better cost structure for consumers, and you can tell that by looking at what happened to the stock prices of the discount brokerage houses right after they made the change i mean, some of these companies, their stocks fell by over 30% because it was clear they were losing a major revenue stream, and the economics for consumers was only going to get better over time. >> but it looks like from my math, you're doing better. meaning, robinhood makes more money on a pay for order flow

than your rivals can you explain what that deal is and how that is the case. >> it's a standard regulated practice across the industry, and it is a revenue stream that robinhood has, one of several revenue streams, and as we continue to roll out more products including our debit card will get access to more revenue streams for the business as time goes on. >> i also asked vlad about how much he ascribes the growth of robinhood's business and trading overall, especially among the millennial generation to bar stool founder who of course has become the day trader dejour during the pandemic. >> certain customers who do trade more actively and invest in options, i think about a

little bit over 10% of our monthly transactors engage in an options trade, even smaller number than that are what you would consider day traders, so certainly we've served these customers. we continue to serve them, and we think that the pricing is attractive the majority of activity on the platform is what i would consider long-term buy and hold and habitual activity, and i think that's the avenue we're focused on making really really butter smooth. if we take someone who's never invested before, and turn them into someone who can invest in a diversified portfolio over a long period of time, and make that very very easy, i think that's going to have a profound effect on the markets and on these people's lives >> there has been some criticism about this idea of gamifying investing across the board, by the way, just at the industry

because you're seeing other companies to some degree add these gamification elements. i want to read you what lee cooperman said on cnbc recently. he said the government is giving you more money to stay at home than to go to work the gambling casinos are closed and the fed is promising you free money for the next two years, so let them speculate let them buy and trade from my experience, this kind of stuff will end in tears. does that concern you? >> there's a lot -- there's a lot going on in that quote where should i start it appears to be the case that the fed has determined that it's important to maintain the stability of the markets and support the markets, and the economy by lowering rates and delivering stimulus checks to people on an individual basis,

which is, you know, in history, been an unprecedented act. so the government is stepping in and doing aggressive actions to maintain the sanctity of the economy and the markets, and i do think from a macro level, that's an opportunity for investors. >> should say that some of the ways that vlad says he is working to encourage long-term investors is through tools on the platform such as fractional shares or reoccurring investments and we'll have a lot more of that interview with the cofounder of robinhood vlad tenev in the next hour, including what the company is doing to address a recent hack and what he thinks about the opportunity for cryptocurrency becky? >> andrew, thanks. looking forward to more to come up up next on "squawk box," we'll have more on the markets

the dow is indicated up by triple digits, this comes after a big slide yesterday when you were looking at down 650. plus, what ceos are thinking about the election, the impact of the pandemic on business resultanmu me. "sawbox" will be right back. everyone wakes up every morning to a world that must keep turning. 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. so with every turn, we'll keep building a world that works.

welcome back to "squawk box" this morning, we've got a very busy morning, we should say for earnings reports want to start with caterpillar boating on t beating on the top is bottom lines, declining to provide financial guidance you're looking at that stock down 1%. 3m beat estimates on the top and bottom line, still seeing declining sales on products for industries impacted by the pandemic you're looking at that stock off just marginally. and amd, advanced micro devices with earnings and a huge acquisition this morning it is buying rival chip maker xilinx, we have talked about the potential for this transaction before in an all-stock deal. price tag is $35 billion amd also reporting better than expected earnings in revenue for his latest quarter you're looking at amd down about 2% on that news as people begin

to try to, amd's ceo is going to join us on "squawk on the street," a conversation you don't. to miss at 9:00 eastern. lisa su who has done just an extraordinary job. ceo of the year, if not ceo of the last five, if you just look at the stock price of that company. >> i mean, sorkin, it was up already. we knew there was a deal in the works. if we could buy, i mean, i wish i could have called vlad the impaler and bought some options, i would have bought the xilinx 125s because it was down at 114 or something even after we knew amd was probably going to buy it, so you buy the -- uh-oh, i'm getting yelled at by the -- okay all right. i'm not going to buy any options. i was just saying that it could be nasdaq.

that day going crazy with just the idea the 125 call, if it was at 115, probably, you know, that far out of the money, and we knew about it no wonder vlad, vlad is smart, isn't he did cryou hear how he answered that lee cooperman question? >> he started a high speed trading company long before he was at robinhood, he started a high speed trading company he knows the business, he does. >> he does and he's a hell of a front man for that indy group, too i don't know if you've seen those guys maybe he's not he could be, though, couldn't he he definitely could be >> he could. >> anyway, we digress. you know what i mean we knew about xilinx we knew. it's up another 13 points, it's killing me. >> xilinx asked for more, and amd paid more. >> that's not always the way it works. you know how it works when you

announce a deal, and you say, well, it's a 2% premium because news of the deal already headed the two weeks before the average price was blah blah blah, but here it is, it's still a nice premium. pretty crazy we seem okay right now, but that might happen again. >> we do >> down here >> yeah. >> the voice of god. the dow futures are indicated up triple digits up 112 points bad day yesterday down 650 after being down almost a thousand earlier this session a busy week of earnings continuing this morning. investors are gearing up for kwafter kwa quarterly results from microsoft and amd after the bell, and more than on the earnings season and how companies are handling the pandemic at this point, we're joined by leon, chairman of the institutional clients group at ci citi, let's talk about what we have heard from 3m and others.

sequentially, they are seeing improvement across geographies, across businesses but year over year, still some pressure when it comes to trying to get things back on track. how do you think companies are handling the pandemic so far >> good morning, i think companies are handling it reasonably well. you're starting to see a return of earnings here in the third quarter. our outlook is gradual improvement into the 4th quarter and into next year, and hopefully some of the volatility we have experienced in the last few months will start to mitigate as we get past the election i think people are focused on getting past the election, starting to project their businesses and starting to get a return to normal in 2021 our outlook is reasonably positive here right now. obviously tempered by what we may end up seeing in terms of the virus, and its containment going into the winter time >> yeah, most of the companies that we've heard from have not wanted to give too much indication of what they expect the guidance to be because there

are so many unknowns you don't know what's going to happen with covid. you feel reasonably safe we're going to get back to better shape in 2021, whether that be covid dying down, whether that be therapies and vaccines kind of coming on. >> i do, becky, and you're seeing obviously the m and a activity has picked up, the third quarter at one point, 1 trillion, a huge increase over the second quarter you saw the amd announcement today. those are all indicators of confidence obviously people are using their stock as currency at this point in time in many cases, or you are seeing private equity coming back so whereas people may be uncomfortable giving public guidance, i think what you're seeing is privately people are being able to evaluate acquisition, project out 2021, and beyond, and begin to act so we think we'll start to see a resumption of activity based on what i would call reasonable confidence that you can start to project, certainly not the conversation that we all had on early march, mid march, a

different environment today. >> andrew? >> hey, leon, it's andrew here, wanted to just ask you about what you think the regulatory environment might look like in terms of transactions either under a biden administration or a second trump administration and how to the degree that conversation is happening in the board rooms that you're spending time in, people are calculating and going through that >> well, firstly, i think in the board room and the c suite, andrew, they are factoring in, in effect, a biden victory at this point in time simply based on the polling numbers. as such, when they look at the regulatory aspects, i think people think there will be more cross border activity. obviously people are going to look in cases like energy and other sectors and see whether in fact, there will be more regulatory constraints but i think at this point in time, people are looking and saying

whoever wins here, we will have a balance structure going forward. i don't think they think there's going to be any huge change in terms of regulatory environments at this point in time. but i do think that we will see an uptick in cross border transactions, no matter who wins because i think people will be able to project forward exactly how the regulators will evaluate those deals. so i think cross border will up, and i think that will be the factor >> i think this fascination with spacs is going to continue, what do you hear from board rooms on that front >> that's so interesting obviously we have been around this market for 15 years, and it reminds me of the early days of the high yield market, which no one seems to call the bond market anymore the stock market has had huge volumes, 140 specs this year, well over 50 million raised, i think the fascination will continue on but i think the product will continue to get

refined and i think what's happened in this environment, as you know, is high quality sponsors, better investors, better companies, i think we'll mean that this will be part of the fabric of going public, going forward, just like direct listings or i think the spacs will have a much bigger impact than direct listings, simply because of the fact that high growth companies can put projections in the documents and therefore be able to envision the future and be valued based on that. i think it's going to be around permanently, and it will continue to get refined. >> hey, leon, thank you for your time today it's good to see you. >> be well thanks aotevyo. l, erne >> you too "squawk box" will be right back. ♪ ♪

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bockey ball, hockey ball, you name it ball. i'm gonna be ready. just say show me peacock into your xfinity voice remote or download the app today. welcome back, everybody. the results of the latest cnbc all america survey are out steve liesman joins us he's got some of the highlight, and steve, how are americans feeling about the economy right now? >> they're feeling okay, and i will tell you, becky, with just one week to go before the election, we'll give you the political results. former vice president joe biden has an 11 point lead over president trump in the cnbc all america economic survey, but data from the poll of 800 americans show there are still ways for president trump to tighten this race up biden leads trump 50-39 in the survey conducted wednesday through saturday so picked up some of the post debate time has shown a steadily growing biden

lead going back to april and the poll shows in addition to his rock solid base, working in president trump's favor are the plurality who say they are better off financially than they were four years ago, seen as better for the stock market by a wide margin, and increased his stands with independents working in biden's favor, the covid-19 pandemic is the top issue for voters, he's tied with trump with seniors and white women, two groups president trump won in 2016, and the democrats have the toss up vote according to our republican and democratic pollsters, they likely favor biden voters chosen health care and handling covid-19 as the top two election issues. those are issues where voters break for biden. the economy and law and order, they're in the next two slots, they break for trump we went down now and left out a bunch of issues show you the bottom 4 three of the least important issues, taxes and immigration, and relation with china. climate change, a top issue for

biden ranks low among voters president trump goes into election with an economic approval rating at an even 47% well below his best days in june in 2018, and better than his worst in september 2019. looks like a dna helix there caution now, a national poll with a margin of error, plus or minus 3 1/2%, it doesn't reflect the closeness of the race in critical swing state, that's why cnbc conducts a separate state we'll get another one on election day on tuesday. and you can see from this poll that biden has a commanding lead but there are clearly ways this race can tighten up. >> steve, before you go, that's what i was going to ask, if you were to be advising the president to change the dynamic, what would he need to do in the next week based on the work you have been doing here >> so we're really lucky to have two great pollsters, one

democratic and one republican. they both agree on the issue, the president needs to make the economy a more important issue two is they think his best route to success here is to deepen his base that is there's a large group of white, non-college educated voters who don't vote, and he has to deepen his base in that group. for binden, it's interesting, a lot of his lead come from voters who didn't come out in 2016 and they're young. those are two really relatively unreliable voting groups biden has to rely on those folks, and president trump has to deepen his base to talk more about the economy. >> i can't remember september of 2019 what was going on, why was that the low point for the economy? >> the market was down the market was down, joe remember we had that big concern about liquidity. >> when gdp goes down 35%, that

might be a worse economic time, but that was obvious >> i find that interesting, joe, there's a lot of concern back in september about recession but not necessarily that came with the covid crisis. >> i like your dna thing, although you would have a problem if you had the big opening there. you know what it looks like, it looks like there's dna or rna preliminaries, right there on the left, where it's unwound, that's where you're actually seeing rna or replication or something. actually, that could be possible. >> some gene splicing. >> yes >> you know what i like about this, joe, is that it really shows the public following what's going on in the economy back in september of 2019, when that approval rating was down, there was concern about the economy then. >> they're patriotic, too, steve, the red, the blue, the wh white numbers and everything

else swelling with pride, red, white and blue pride. >> i wore a green tie because i'm reporting these issues i thought purple would be a cliche so i wore green. >> you could hide from me. anyway, that's from caddy shack. never mind mr. crane. all right, andrew. >> steve, thank you for that joining us right now to continue this conversation and what those in the c suite are most concerned about as we're now of course just days away from the presidential election is rich lesser, ceo of boston consulting group. rich when you sort of take the pulse of the board room or the corner officer, what's the single biggest issue you hear about >> so i think there are two right now. one is as it relates to the election specifically, the risk of a contested election and not being able to get to a clear resolution, i think that weighs on people. obviously how the votes play out will shape that, but what

happens after the votes are cast will make a big different, too, and there's real risks there the second is obviously getting control of the pandemic. we have vaccines coming. it's amazing to see the progress we have made it gives encouragement for the medium and longer term the short-term battle is not going particularly well, and there's a lot to do to gain control of that, and that has real health risks for many people, some societal risks. the economy stayed pretty good, quite good there's challenges. >> let's talk about the possibility of a contested election for a moment. not necessarily unlikely it's almost, and i think there's a lot of people who expect there will be some form of contested something at some point. the question of course is how long that lasts. what's the economic impact of that to the extent you're

talking to ceos who say they're concerned about it, is there anything they're doing about it? >> well, first in terms of what's the impact, obviously there's a societal disruption, a drain on consumer confidence, depending on how it lasts and results itself there could be delays in getting the stimulus package through, which most business leaders believed we need right now the first stimulus package made a big difference it's been a while, and we'll need a second one. the third is we need to have strong alignment of messagings to be able to roll out vaccines effectively, get the pandemic under control, and there's geopolitical stability and a concern about the legitimacy of democracy in the u.s. depending on how that plays out. those are the elements on people's minds ceos are encouraging people to vote, encouraging in nonpartisan ways to be poll workers or to contribute to society. i think they're really trying to send a signal that democracy here is an important part of being a citizen. people should participate.

people should make it easier for their fellow citizens to participate, and to really represent what the values of the country are at this critical time. >> by the way, rich, do you think this is a singular event there's a one time moment where the business community is getting behind voting, as you've noted. there are a lot of companies that are allowing their workers the day off. there are people giving them time off this week in certain states where they can actually go to the polls already. they're encouraging people to do mail-in ballots. do you think this is going forward or this is such a particularly unique election that there's a view. you talked about democracy being at stake that ceos are stepping up in this way >> i think it's actually the beginning of a longer term trend. remember, we have had the whole racial equity and justice crisis that has emerged many companies have made longer term commitments part of that is encouraging

people to exercise their rights and to vote. it may be a bit extreme this year, the focus on it, relative to what it might be in future cycles i think we'll see an ongoing emphas emphasis on participation. >> rich, in terms of covid, and this pandemic you talked about vaccines, if you were to average out, to think about all the conversations you have had with ceos that are your clients right now, about the time line with which they're thinking about when the world goes back to some semblance of normal, what would you average that out to be >> do you think people think this is a first quarter event, a second quarter event, a third quarter event, a fourth quarter event, 2021 or longer. >> i think you first have to separate the economy and controlling the virus. if i just focus on the health aspects of it, we believed that the optimistic case meaning things go well, the viruses are approved, the rollout's

effective and consumers are willing to take the vaccine is the q3 it starts to feel normal. and more normal, and whistleblowwe're getting the pandemic under control. we believe in the next nine months, we'll make progress, that's the hope, and i'm optimistic in that, but there will be a long way to go for people to feel safe and going back to leading what we would consider normal lives, that that's more the latter part of next year or if things don't go as well, the beginning of the year after. >> rich, we appreciate it. q3, 2021, i think that's your optimistic take. that's pessimistic for some people let's hope we get there sooner than later we appreciate your time this morning as always. thanks. >> joe >> my pleasure. >> thanks. there's some semblance of normal, i guess, very disturbing hospital rates and everything else, but it's more normal now than it was at least we can only hope it gets better

and better and better. coming up, senator rick scott joins us to talk the latest out of washington on stimulus, big check, and much more that's next. as we head to break, take a look at the biggest winners in the nasdaq 100 this morning. see some chip stocks there, not my kind of chips, but semiconductors "squawk box" will be right back. everyone wakes up every morning to a world that must keep turning. 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. so with every turn, we'll keep building a world that works.

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r good morning, the first big day of earnings season is underway caterpillar, 3 m and merck and a slew of other companies too. it's official, no stimulus package before the election. is it possible d.c. will have to start over on a new plan after november 3rd. and the ceo, the co-ceo of robinhood on election season volatility crypto trading and more from the exclusive interview is on the way as the final hour of "squawk box" begins right now.

good morning, and welcome back welcome back i can only hope to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin where's the cat, where's cocoa is he really there >> oh, my god, i have been watching you it's adorable. there's nothing better than a little kitten. well, maybe a little puppy either one just depends there's puppy people. >> babies anywhere >> so kult i told you, you got to get one of those things, becky, that are like this, and they're like a flexible thing with a thing on top. >> have it. >> you have one already? >> i have it >> i even like playing with that i do and, i mean, i understand why the kitten likes to do that. you know, it bounces and it moves around, and the hand-eye coordination, they're like little computers more so than dogs.

they're just, i love being alive, where kittens are, i don't know, if they're like, who's on my side, who's not, is there any birds, mice around >> u.s. equity futures. >> women versus men. >> is it like that, venus, and mars i wasn't going to go there, i'm not sure, but definitely different, the whole cat family versus the k-9 wolf family yesterday's big drop, getting back a 6 on the dow. nasdaq up a lot. dow down nearly a thousand points at one time yesterday, recovered from some of the losses going into the close. nothing worse than an ugly close. the index had its worst day in close to two months. the dow is negative for the month of october, but that's the only saying, bear markets go to -- that's a month where bear markets go to die. it hasn't been that way necessarily this year. probably couldn't be andrew,

because of the fed the fed is our friend and we were talking about that even with vlad. >> that is very very true. we'll show you some of the vlad interview. it was expected but maybe not at this price tag xilinx is going to be bought by amd micro devices. the deal valued at about $143 per share. the transaction expected to close by the end of next year. separately, amd posting better than expected quarterly revenue and profit for this morning, and we should tell you that amd's ceo lisa su, who has just done an extraordinary job with that company over the past several years, is appearing exclusive on "squawk on the street. the price for xilinx higher than investors expected and now there's an arbitrage play in

understanding how those stocks are moving the way they are this morning. i don't think anyone expected the price tag to be this high, up 13% alone, and that's still lower than where the final trade would be, but as we know, there's a stock-for-stock exchange earnings out of three dow components to tell you about this morning, that also moving of course the markets. we're going to start with merck, reporting third quarter revenue and adjusted earnings per share above analyst estimates, with results getting a boost from rising sales of its cancer drug keytruda that stock up a little over 1% right now. meanwhile, we've got caterpillar beating forecast for third quarter sales and adjusted profit, however, the heavy equipment maker still not issuing guidance amid this continued global economy uncertainty, and you're looking at that stock down close to 1 1/2% on the back of that news. and then 3m also beating third quarter revenue and adjusted eps

estimates, expecting sales to be flat to up, quote low single digits in october, but that was the only guidance it gave and it's virtually, marginally down on that news hard to ascribe the earnings to that move now. amd, three, four weeks ago was down on the initial announcement, and then it came back now it's down told on the announcement it's down 3 or 4 points, and it's now unchanged that's why xilinx will go up based on that. for a market check, if they're looking for a market check, that's a very positive market check, right, because it just immediately gets that arbitrage effect where the acquiring company, a lot of times, people do it, don't even think about it knee jerk. >> no thought. they just buy to buy or sell to sell. >> for $35 billion, this looks like it's really being, you

know, that's expensive but the market is accepting her judgment, giving her the benefit of the doubt no deal in d.c. as you look at 3m, the company did report results. thought we would show you that the prospect for another covid-19 economic stimulus package officially off the table, at least for now. ylan mui joins us to lay out what might happen after the election work in 3m if you can somehow because we showed it you got to be flexible >> i don't know. >> that's what we want >> what happens next for policy of course is going to depend on what happens at the ballot box next week, but there are still some opportunities for congress to act no matter which party wins control december 11th, that is the dat

the government runs out of money. congress is going to have to act just to keep the lights on and that could open up the door to other potential legislation. even if it's just something small like extending the ppe or aid for airlines december 31st, that is the day that 14 million workers will lose unemployment insurance. and look out for january 5th that is the date of the runoff in the georgia senate races if none of the candidates gets a majority of the vote next week those seats could determine the balance of power in the senate and change the political and policy landscape in washington, and then of course january 20th is the day that whoever wins the white house will be inaugurated. even if there is a blue wave it's unlikely that democrats are going to get 60 seats in the senate i'll leave you with this word, reconciliation, that is the prose democrats could use to

push a package through congress. this has a lot of rules and strings. that could make it hard to get money to state and local governments. money for schools could be tricky the ideal option remains good old fashioned compromise and bipartisanship, but so far that strategy hasn't worked so great. back over to you guys. >> trying to think, ylan, you were probably watching, you remember the last big reconciliation, and it was obamacare, the aca, and they still had to do some crazy back flips and behind the scenes deals. the nebraska purchase or something, they had to do all kinds of stuff with reconciliation, and that is tough, and there's nuances that have to be satisfied to take that road. you could get rid of the 60 votes which we're hearing might happen too. >> reporter: getting rid of the legislative filibuster, that is

an open question if democrats are in control of the senate if and when that happens is important. is that something they would want to do for a covid relief package. is that something they would want to do for other legislation that's down the line the other thing with reconciliation is you only get a couple of shots at it, you only have two reconciliation bills that could move in next calendar year you would have to use it for something that you felt was a top legislative priority, you know, is this something, if they could find republicans that could get on board with them that they wouldn't need to use this process for these are some of the procedural machinations that folks are going to be looking at because really in washington, process does end up driving policy for better or worse. as you think about the scope and size of the types of fiscal stimulus we could be seeing next

year. >> only two a year, what rule is that >> you only get one per fiscal year because it's tied to the budget process because there wasn't a budget resolution for this fiscal year, you could use fiscal 21s budget resolution. >> you can save one. within draftkings, i get odds boost, and i don't want like to use them up. that's what this reminds me of the republicans might prefer this to doing it on the green new deal, for example, or something like that. they would rather have a covid stimulus deal and something that's totally politically unpalatable for them maybe this would be it right? >> well, if you had republicans on board, you wouldn't need to use reconciliation you only need to use reconciliation if you only have 50 votes, a simple majority. it's a way to get around that 60 vote filibuster threshold. >> we'll see

all those things are going to be decided and the scotus and we may have more states becky, here we go. joining us now to talk about getting another stimulus deal through congress, the spike in u.s. covid cases and much more, we're joined by senator rick scott, the former governor of florida, and serves on the commerce committee thanks for being with us today. >> it's great to be there. it's frustrating we don't have a stimulus deal done. >> yeah, i think that echoes the sentiments of a lot of americans. we had governor sanunu, and all senators and representatives should be thrown out we'd have better luck. >> i think pelosi is making the calculation that this is good for her and hopefully, you know,

winning elections. republican senators we have passed two bills we have been blocked by the democrats but we extended the unemployment, we extended the ppe, money for our schools, more money for testing, more money for vaccine, and the post office and the democrats have blocked it they did it in september, they did it last week so it gets pretty frustrating, then they go on television and say, oh, you know, republicans don't want to do something we do. what we don't want to do is spend another 2 or $3 trillion. >> you don't want to do what they want to do and they don't want to do what you want to do you guys have different plans and the frustration is that nothing is getting done because nobody can agree or compromise. >> here's the difference what pelosi wanted toos s to dos noncoronavirus things. we were very targeted. we took and re-purposed money we

allocated in march that wasn't being used we did it in a fiscally responsible manner, things people care about unemployment, the ppe, help our schools get open, testing, vaccines, those are the things americans want. they don't want a whole bunch of liberal priorities that nancy pelosi has she has made the calculation they'll help her november 3rd and we'll see what happens i wish she was more focused on helping americans. >> marco rubio when we spoke with him last week said look, he wasn't thrilled with the bill that the administration and nancy pelosi were working on or the amount of money that they were talking about, but that he'd vote for it just because he wanted to make sure something got done it's more important something got done than nothing. i take it you're not of the same opinion. >> i think we have to act fiscally responsible we have $27 trillion worth of debt, you know, even without covid, trillion dollar deficits every year, look at the balance

sheet of the federal reserve i mean, we've got to understand that we've got to get our fiscal house in order you know, we've got issues with how do we fund medicare, which we have to do. we have to fund social security. we want to make sure people can rely on programs, and at the same time, yaw canou can't say, going to spend whatever it takes to get the other side to agree let's do things that are important. we can't be wasting money. somebody is going to pay for it. kids, grand kids, we can act in a responsible manner we don't have to say, we're going to spend trillions of dollars without having any idea if it's going to have a positive influence or not >> steven mnuchin has said now is not the time to worry about deficits, though i agree with you at some point you have to worry about it we have heard from jay powell who said it's better to do too much than too little because the economy really risks having a hard core damage inflicted over the next several months while you go back and forth and fight about this again >> well, i'm hopeful maybe after

the election, the democrats want to do something responsible. right now, if you go look at their bill, it has a whole bunch of things that have nothing to do with coronavirus. there are things we ought to debate and look at what we oughtto focus on is ho do you help the american people right now, unemployment, extend ppe, vaccine, testing, get our schools open that's what we should be doing now, and if we want to focus on these other priorities, we can have a debate about that but, you know, the democrats don't even do the things, i mean, just remember, chuck schumer is the one who blocked extending the unemployment back in august. he went to the floor to block it how does that make any sense >> senator, i've talked about this on the floor the white house has $9 billion to send out for testing across

the country, based on dr. scott atlas's advice to the president and others that money is not being distributed for testing. do you have a problem with that? >> we have got to get testing. we're very hopeful very optimistic that this vaccine will be done quickly, effectively. in the meantime, we have to get way more testing out there the money has got to get out and the states have to be doing it. >> have you called the white house to say that money should be distributed i mean, that's targeted money that was already procured for testing. >> i have talked to the white house about getting testing out. >> that's not being distributed. >> say that again? >> it hasn't been distributed and it's unclear whether you or others, whether you're part of the party or not, are calling

them saying you have to distribute the money so testing it take place. everybody is talking about testing and you feel unfortunately a white house that has avoided oftentimes wanting to test as much as we would like, right? i think we can agree on that. >> i have talked to the white house about all of these different issues, whether it's making sure we're getting the money out on testing, making sure we're allocating money on vaccines, making sure we're holding, you know, people accountable for how the money was allocated, making sure we have accountability. i have been talking to the white house about both of these. we have had significant conversations with mark meadows, and steven mnuchin, how do we make sure we do everything we can, even though we see the democrats blocking things. senator, i want to thank you for your time today, and i'm sure we'll be talking to you soon good to see you. >> all right have a good day. bye bye. >> coming up on the other side of this break, we've got more from our exclusive interview

with co-chief executive of the retail trading platform, robinhood, volatility around the presidential election, a people ip over robinhood itself and so much more. ne talk about all of it, stay we're back right after this. our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room,

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welcome back to "squawk box" this morning, online stock trading app robinhood seeing record growth throughout the coronavirus pandemic, the company adding 3 million users in the first four months of the year robinhood is dominating app downloads, in an exclusive interview i sat down with the ceo of robinhood, cofounder and ceo vlad tenev, i asked what steps they were taken in potential of volatility. >> what we have seen is they typically see volatility and market downturns as buying opportunities, just because they're at the beginning of their investing journey, and i think they recognize that there's many many decades for things to smoothen out in front of them. in terms of volatility, we have to be prepared for anything. it certainly would not be a

surprise to see greater volatility heading up to the electi election and the weeks and mont months afterward we have been investing more in terms of making sure our processes are really solid and we're taking a look at things like margin and margin requirements for different securities we're also continuing to invest in the scaleability and reliability and redundancy of our systems. >> you know, there have been a recent hacking attack that exposed 2000 accounts. why should the customer trust robinhood over one of the more established classic players, if you will >> you're referring to instances where customers have been compromised outside of robinhood, typically through their e-mails. and using e-mails and other means sometimes malware and

phishing, cyber criminals have been able to take advantage of customers. so in these case, i think the first thing to note is we've done a lot of work, and accelerated that work recently to encourage customers to sign up for two factor authentication in the product, which is on top of the additional factors of security we provide by default teaching people about password safety and password reuse, and of course if customers do end up reporting fraudulent activity on their accounts, we have been compensating those customers 100% so we've been doing more on the prevention front, but also if this does happen to a customer, unfortunately we work with them to make it right as quickly as possible

>> one of the specific critiques among robinhood users is the lack of a customer service hot line or a live chat feature. i asked vlad about this. >> we're working on customer support across the board, and we've made huge investments and are continue to go make huge investments, both in terms of head count, opening up offices in tempe, arizona, and south lake, texas, along with our existing locations and really going across the product from different channels all the way through to handling edge cases better, and surfacing information and tools to customers before they even need to contact an agent. so it's a multi-facetted solution where we're making huge progress across the board, and there are, you mentioned phones,

there are instances where we're already doing outbound calls to customers to resolve certain issues, and that's certainly one of the multitude of tools that we're exploring to get people the service they need, and resolve their issues as quickly as possible. >> there's still no 800 number, though robinhood started offering cryptocurrency trading on the platform a couple of years ago, and i asked vlad about whether he's bullish on crypto himself >> unfortunately, i probably shouldn't give particular advice or recommendations about different assets it is something we are, you know, we're looking at we hear from our customers that supporting crypto has been a great feature that they appreciate that robin hood is doing, and we're continuing to invest in the space and make our crypto product better.

i think giving people the choices and the abilities to have access to a wide variety of financial assets to sort of reflect points of view that they might have about things like inflation and the future of the economy is something that we're very passionate about. >> and then i asked vlad the question that i think everybody on wall street wants to know, when will robinhood itself go public >> it's certainly not lost upon us that it would be interesting for our customers to -- who are obviously inversisting in stocko one day see robinhood on robinhood. wo we're not in a rush. to us, it's a financing event, and we have done several this year alone, and we feel very

confident in our capital position the primary focus is on making sure we offer customers the best possible service and make sure the systems are available when they need them the most. >> and robinhood investors are probably standing by the news we're standing by for right now. rick santelli has breaking economic data that may move the markets around, rick. >> yes, and robinhood investors might be happy about this one, durable good orders coming out three times more than expected, almost four. we're looking for a number up 1/2%, up 1.9% just shy of up 2%, the healthiest number since july when it was up close to 12%. a nice number here these are september preliminary orders so they will get revised in a couple of weeks, give us our final number take out transportation, i don't see that data out.

air craft, a proxy for capital spending out double expectations, up 1%, up 1% that is solid. now, transportation is out up 8/10 double the .4 we were expecting. if we move from orders to shipments, up .3 that's the only number up on the light side, up 3/10 of 1%. on headline up 1/2, 1%, but extransportation grew from .16 to 1.0, and capital goods orders, nondefense air craft for final number for august moved over a% from 1.9 to 2.1. it was definitely better than expected i think durable goolds ds is onf the spots in the economy is more driven by issues regarding strong demand and shortages of supply whether it's cars or

washing machines, and this is going to be highlighted as we pay attention to all inventory levels joe, back to you >> rick, thanks. steve liesman joins us with a more muted response. not much in equities, steve, what do you make of it >> this is expected but you shouldn't fail to highlight that the durable goods sector of the economy is one of those that has come back faster than many expected some of the economists suggest that it shows the difference with the '09 downturn where capital seized up, where banks seized up. that is not the case this time, and it kind of shows the importance of keeping the banking system and the capital markets open and running so companies can borrow money to invest you had a huge downturn in april and in march, and that's come back now, come back strongly we do have to kind of sort out the big down followed by the big

up to understand what's going on we have a couple of challenge industries this was the big story economically, or two of the big stories economically before the covid cry sisis, what was happeg with boeing and the oil industry i don't expect the oil industry to be coming back strongly, a bit better than it has been doing, but boeing has an opportunity to come back substantially to the overall economic data we have here that's good news rick is absolutely right, by the way, that some of what you're seeing here, it could be better, pardon me, if the manufacturers could get the parts they need. there's still massive disruption in trade that we could watch and have an impact on production this is good news. we'll have to see if there's yet better to come as we get past the disruption and the rebound from the covid crisis. joe. >> steve trying to figure out, you know, what people are doing. kind of like people staying at

home, i guess they buy some stuff, right, while they're at it i have made the point, i don't know why you need clean clothes if you're staying at home. deodorant, soap, anything. but people apparently, i guess, for the other people that are in the house, right, steve, is that what you do? >> i'm wearing clean clothes every day, joe clean clothes every day. pants, socks and shoes just so you know i don't know about you, joe. >> i wear clean clothes. >> i'm not saying anything >> i wear clean clothes here, when i go home, i have a uniform, and that does not get changed. that stays pretty consistent anyway, by uniform, i mean -- >> we're getting close to a place that they should cut off the conversation, joe, i think. >> all right let's do it then, head over to becky. >> a uniform, a maid's uniform, a little french number that would be cute >> you are surprising. no, jeans, a shirt and then a shirt over a shirt

same thing. >> you know what, honestly, underwear sales are down in a lot of places, so that tells you a little bit about what people do buy and don't buy. >> the jobs at the return counter for underwear you told us last time >> true story. >> anyway, trumpversus biden o taxes, spending, and overall plans for the economy, with one week to go before the election, we're going to break down everything investors need to know stay tunes, you're watching "squawk box" right here on cnbc. we started goodrx in 2011 because too many people in the united states can't easily get to a doctor or afford the treatment they need. that's why goodrx has built a leading consumer-focused digital healthcare platform. we wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. as a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford.

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we are just a week away from election day, and the markets are waiting for clarity on who will lead the country for the next four years. ahead of november 3rd, investors are closely examining former vice president biden's plans to heighten capital gains plans robert has more on that front. >> good morning, becky, one of the questions in the market is whether that big capital gains tax increase proposed by biden, that would be the highest rate since 1922 whether that's going to cause a big market selloff if we get a blue wave but only a fraction of stock investors as new research shows would actually be affected by any increase. according to research from steve rosenthal of the tax policy

center, only 25% of all u.s. stock is held by taxable accounts or investors who pay a taxable gains tax. 75% is by retirement accounts, not for profits and foreign investors. none of them have to pay a capital gains tax. they wouldn't be affected by a hike, and biden's tax hike only applies to people with annual income of 1 million or more. that's about 500,000 of investors. a subset of that 25% would actually have an incentive to sell off before any tax hike rosenthal and others don't deny there could be a selloff, but other factors like stimulus would be far more important. guys, back to you. >> robert, do you have any idea how much this might raise if they do increase the capital gains tax by that much and it

only affects about 25% of the people out there, and second of all, what have we seen in past tax increases? >> on how much it would raise the first year, assuming this started in 2021, it would raise about $5 billion so not that much it kicks up to $30 billion or $35 billion in the next sort of two to three years, and then it drops off again. so relative to let's say the payroll tax increase, it's not a huge number. i don't know whether the biden campaign has factors all of what i'm talking about into their calculation. as far as in the past, in 1986, we had that tax hike under reagan where it went from 20 to 28%. we had big stock sales, capital gains realization, but the market was strong, and that's because markets react to much bigger macro forces like at that time deregulation and a stronger economy. it results in stock sales, it doesn't necessarily drive the overall direction of the market, becky. >> i was just thinking, what about people that own businesses or people that own property or

anything that's not a stock that they own, and now they're going to have much bigger capital gains, does this gum up the works, doesn't it just -- isn't it a damper on economic activity in that regard or no >> in the short-term, it unleases a lot of selling. we're hearing to your point, a lot of realize, private companies getting teed up for sale, because people want to get out ahead of that increase, and then you have a big falloff. that's what we have seen in the past, but you're absolutely right, it distorts a lot of things in the market my point is not necessarily in the stock market, but throughout the economy, it distorts things because you have that short-term pre-selling going into the tax hike, and then it drops off after that for a while it takes years to recover. >> yeah, yeah. >> a week away a week away, robert. anyway, for a closer look at the candidate's economic attack

plans, let's welcome in the two jasons, jason trenner, chairman of strategic resource partners, ja jason, you actually manage money, you've got the capital gains possibility. i know you don't know if the election is a done deal yet, you have made that point before, but you've got some other aspects of it, higher corporate rates are you going to do anything if it becomes in your view, if you think it's likely that this will happen, are you going to do anything between now and tuesday? >> well, i will say, joe, you know, we're much more of an adviser, a research boutique. >> you advise people to do things >> well, my opinion would be not really because you're guessing, you're betting. >> what about afterwards >> i don't think the election is over. >> what if it happens?

>> if it happens, it will not be surprising to me in any way that you'll see some selloff immediately after that, and i think as you said, private companies in particular will have a very strong incentive to do something before the new administration if there's a blue wave that comes through. i think in the past, when you have looked at the capital gains increases in the late 60s and 70s, '69, '70 and '76, the stock market was lower in each of those instances and the capital gains tax went from 25 to 40 during the late 60s and 70s, and that was not a particularly good time for the stock market. so my opinion is you tax something more, you get less of it you're going to tax capital gains, you're going to get less capital formation. >> jason fuhrman, we're hearing about infrastructure, but we

have have paul tudor jones on who said he would worry about as far as the corporate side, margins not being good, and multiples might contract a little just pretend for a moment, you're a pro business capitalist do you think that the infrastructure spending, you just let me say that, and you're not even laughing at it, jason pretend you're a pro business capitalist, i thought you would like that. just for a moment, if you can put that hat on. if you can, conjure that up. >> i forgot that, but i have a mask >> do you think that the infrastructure boost, the stimulus boost would offset just what most people think about what higher taxes do long-term to the private sector? do you think it would be okay? we're going to be okay >> yeah, joe, i think we're going to be okay i think you can relax, be happy. everything will be under control. my advice to joe biden would be,

one, focus on controlling the virus. big market selloff yesterday that had nothing to do with fears about joe biden and his capital gains. that had everything to do with the virus being out of control and focus on get the economy growing. focus on gdp, that's what you're being elected to do. you look at the tax changes, the net tax chain in fiscal years 2021 and 2022 is 0 there's some tax cuts, some tax increases, then you do the fiscal expansion that's several trillion dollars. that's why goldman sachs, other analysts have said it would add about 1 percentage point to the growth rate per year for the next several years he has an economic plan that's very expansion in the first run. all of that is important to the economy and the stock market than any of this tax stuff we're talking about now. >> when you talk about controlling the virus, i wish we could wave a wand.

sometimes you think that controlling it, and hurting the economy might go hand in hand to some extent, jason, before the vaccine or before the therapeutics. >> masks are a win-win for both. >> i understand. jason trennert, you still have a look on your face that you're not feeling great about the prospects for much higher taxes and what would happen to the economy? >> it's just hard to feel good about it because you're not just talking about an increase in taxes on capital gains you're talking about an increase in taxes on personal income, corporate profits, dividends, capital gains, small businesses and estates. so, you know, and when they go in, and when they don't go in, we can discuss, but clearly that has, in my opinion, i can say that has a chilling effect on confidence i think that's almost undeniable, people will wisely ignore it because there might be

some more government spending in other parts of the economy i just, it just runs counter to my experience. we calculate that the biden tax plan, if it were enacted, would take about 10% out of s&p 500 operating profits next year, 2021, after corporate profits are down about 20% this year because of the virus, so it strikes me, this isn't the best time i don't know if there's ever a great time to raise taxes, frankly. but at this point, i don't think it's particularly a great idea. >> you know, jason, fuhrman, paul tudor jones conversely said it may hurt the markets, but it may be what it's designed to do for i didn't understan point, for people on the lower end of the economic scale, but i would -- i always think that organically you want a strong

economy and you hope wages start rising organically i think maybe he was talking about transfer payments, i hope he wasn't just talking about fixing income inequality by bringing down the top end. says that always what people worry about, you don't want to do that either, i'm sure >> you know, we want to invest more on children we want things like preschool. we want child care, which also enables and makes it easier for their parents to work. things like the earned income tax credit help encourage and bring people into the labor market all of that costs money. and reorganizing a system around investing in a lot of the people that are key to our economy because we need them in the workforce, we need them contributing, you can't just do that for free and rebalancing our tax system is part of how we're going to need to do that,

foster growth. capital gains rates went up under president obama. stock market -- i would be worried. >> don't give me that. already sold off 50% it is pretty easy to get the stock market to go up fuhrman and to create jobs at 13% unemployment those are horrible examples. stop taking credit for that. >> the gdp number. >> all right all right. i'm just glad you got out of the pod. i'm glad you're not in that -- one of those rented pods where you were, like, you know, willy wonka, down like this, looking at it. anyway, thank you to both jasons i think jason, i think, friday 13th, thank you. >> coming up when we return, jim cramer is going to give us his first take on the market action this morning and then stocks, we think you're going to want to keep an eye on ahead of the opening bell. we'll show you some of those as

we head to a break, though, check out shares of eli lilly which missed estimates lilly impacted by slowing sales of diabetes drug but investments in covid-19 treatments that were not in its prior guidance also hurt result. here is rick talking about the quarter overall. >> we had a strong quarter i think this quarter demonstrates the resilience of a company like lilly 5% growth even amidst all the difficulty in the healthcare system at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change,

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want to get over straight to cnbc headquarters, jim cramer, joins us now a big interview with the ceo of amd in just a little bit she's done a remarkable job, but what do you make of the price of the transaction with xilinx? much more than anyone expected. >> i think that lisa has done a remarkable job she is my heroine. she has built an incredible company at a time when kind of under the radar screen because it was always question of how

great intel was doing. intel is not doing well and not just because intel is executing poorly advanced micro is operating a level very rare, i haven't seen it since the '90s. the reason why the deal is not expensive, we'll talk to david about it, the extraordinary performance of amd this quarter. the stock went from 77 to 82 when lisa su described the true blowout, this is not one of those manufactured blowouts we see, it is just they're in charge of the data center with everybody who is anybody in the data center. now they have to expand beyond the data center. it is a brilliant move. >> real quick, why do you think investors missed it, though. this has been in the news, we talked about it now this transaction was expected and yet look how much the stock moved already. >> i think there are a lot -- yes, true. a lot of leaks i think there are a lot of people felt she would do this because it is not accretive and that was wrong i know when i speak to lisa, i

was not encouraging this transaction. she gave -- never played her hand, just because i felt its would hurt amd stock, ways ignorant of the quarter itself extraordinary quarter with phenomenal guidance and era where people tell me they don't have their destiny under control, it is because they are not executing at a level that lisa su is >> okay. well, we're looking forward to seeing lisa su as you remarked quite a ride. >> excellent interview with robin hood if we don't get there, all of us i this i will be left behind >> we will see we will see. jim, looking forward to seeing that interview with lisa in a little bit want to send it over to becky right new. >> thank you dom chu is standing by, looking at some of the morning's biggest stock movers >> outside of the chips, busy week of earnings season, biggest mover this morning tied to maybe some of the reports.

got caterpillar down 2.5% now. roughly 40,000 shares of volume. the biggest maker of construction and mining equipment. this company reported profits and revenues of top estimates but isn't giving out future financial guidance because of that pandemic and the economic uncertainties. next up you got shares of harley-davidson, motor and higher, 9%, 189,000 shares, it blew away consensus estimates on profits and revenues, helped along by efforts to streamline the operations target markets, geographies and better selling prices for new and used bikes 9.5% gains premarket stanley black & decker, down 3%, 16,000 shares of volume, tool maker reported better than expected profits on weaker than expected sales, it did see growth in its tools and storage unit, sales fell in its industrial and securities. so movers there, back over to you. >> okay. good old stanley

stanley black & decker never knew him, but great company. thank you. thank you, dom chu final check on the markets, dow now up just 8 points what happened? anyway, good durable goods but it is a long ay. we'll see by 4:00 after that session yesterday, i like your -- i like cocoa the cat, cocoa the kitten i hear you make sure you join us tomorrow "squawk on the street" is next good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are trying to get back some of yesterday's sell-off the worst day for the dow since september 3rd. earnings out in force. pre-election stimulus all but dead as the senate adjourned until after election day some blockbuster m&a as amd buys xilinx lisa su is going to join us in a