cases, possibility of some lockdowns. do have corporate results, also an election upcoming soon. less than a week all in focus for investors on this wednesday, october 28, 2020, as "squawk box" begins right now. good morning, everybody. welcome to "squawk box." i'm becky quick along with joe kernen and andrew you roross so. take a look, you will see that we are down by more than 430 points right now for the dow that is a decline of 433 nasdaq down by 114 and this comes as a bit of a concern when you look at the addition of the declines over the last several days, monday

down 650, tuesday down more than 220. so far the dow on pace for its second negative month in a row for the first time since march also take a look at an intra day chart at the dow futures you saw a huge turn lower right around the time that european markets were opening and there is big concern there about dish there after angela merkel said they would like is to see bars and restaurants close beginning november 4 because of the huge rise in cases there. so they take additional cases in stride, but now lock dunns takes a turn deeper. seeing a real impact of what might happen with additional

lockdowns there. in fact three of 11 s&p sectors are more than 10% from their 52 week high and energy and financials more than 20% take a look at oil prices, another place that we've seen this play out all week through oil prices you will see right now, the wti is down by almost 4% it is being at $38 a barrel. brent at $39.89. and is this a concern about the world economy if you continue to see additional lockdowns coming. and treasury yields, right now it looks like the ten year note is yielding 0 pp.756%. >> and to that point about lockdowns, the covid concerns are a big part of the stock market story right now in the u.s. the seven day average of new cases topping 70,000 for the first time. hospitalizations hitting their highest since mid august meantime in europe, multiple

countries are now issuing new restrictions as they try to contain covid outbreaks as well. anita is live for us in frankfurt. >> reporter: we just today in the morning got news that angela merkel and the prime minister are going to meet today and we'll have sweeping changes to what is actually possible in public life here in germany from november 4 onward. so they didnon't want to call ia lockdown, but it is a lockdown they might call it a lockdown light. because we have another day of record infections here in germany. so essentially restaurants will close, gyms will close, theaters will close, operas, et cetera, everything will close down from november 4 onwards any travel apart from business travel will be banned. meeting other people will be

banned and the draft which they will discuss in berlin also foresees school controls that everybody will stick too t the rules because that was the problem white ru light rules, they were not ob bayed. so we'll go into a light lockdown, whatever you want to call it, but at least for four weeks time back to you. >> and talk to us about you said that people were breaking the rules. what do you mean by that in terms of you had restaurants open gyms open, and all of those things are much more open in germany for example than they are in the united states and to the extent that you are any type of precursor so what we may be looking at, i think that we're trying to understand what is happening >> reporter: well, exactly the rules were for example you were not allowed to meet more than five people from two

different households nobody was sticking to that. you should wear face protection everywhere on the street nobody was sticking to it. especially parties and big parties were banned. also nobody was sticking to that you had headlines coming out with private parties perhaps modelled like in the 20s of the last century when the prohibition was on it was sort of a fun thing to do in cities like berlin. this is why we're seeing the high infection rates, but not only berlin, also frankfurt is a high risk area nobody knows why and the problem is germany was very successful in the first wave by tracking and tracing and that is no longer working because they can't find the traces anymore and there are too many infections that the public authorities are overburdened already. and that is what angela merkel said yesterday, if we don't do anything now, we have full capacities in our hospitals by

mid-december that is something nobody wants >> anita, thank you for that report and of course we'll be watching what is happening there as we watch what is happening here as well joe. >> yeah, we'll keep checking the futures. do you know 4 down 414 now on the dow. nasdaq 110, s&p 42 so almost 1300 points just this week i'm talking about pre-market dow when we thought october, we talked about october in the past hasn't been a great month. but it was okay this time. why did i say that and it is october 28th, this is like 31 days i think in october. so anyway, saturday is halloween. but we have three more days. i don't want to say anything about october, which is usually -- can be a cruel month, but a lot of times the averages

bottom out in october. but we remember some bad days that occurred in that month. goldman sachs, beg, mi boeing, t the dow laggards all you had to do is think about the reepg stoc reopening stocks like the airlines and if there are lockdown concerns that we're talking about, you can see from low levels, they are still able to get back almost 2% are a little bit less across the board. you look at cruise lines, also down a little bit this morning no idea when that industry, if that industry -- i guess everything eventually comes back but not looking too good there >> you know, one of the issues is that we've talked to dr. gottlieb who says he doesn't think there is the political will to have the same sort of lockdowns that we had in march, but you are hearing from people

like bill de blasio and also in california where they are telling you that you shouldn't be traveling, you shouldn't be having people come for the holidays, you shouldn't go to other states if you do, you need to be really careful and make sure that you 2308 the mandatory quarantines when you come back so you may not see it in the same way, but there will be pressure coming from regulators and authorities to try to keep people in a little bit and inevitably, when you have elected officials telling you shouldn't travel unless it is absolutely essential or unless it is for work, you will see some sort of a crunch. now, yesterday jetblue ceo said they had not seen any weakness or lack of demand for the holidays but you have to wonder if day by day if this drumbeat continues, if you will see a downturn in the airline bookings and other places >> new york i don't think ever opened up like what we're talking about in europe though, did it maybe it did what about dallas or places

around the country were bars packed at those places like through the night >> you can go to bars, but they have to serve -- even in new york city, there were bars serving like peanut butter and jelly just to claim that they were a restaurant. >> but were there people shoulder to shoulder without masks all over new york? get the feeling that in europe people had been locked down for a while and really thought that they could go out and go to pubs because i hear about that -- >> i think what was going on in the uk is a different level than what was going on in new york. but i think there are parts of the united states that never experienced what happened in new york and that i think might look a little bit more like what was taking place in europe >> that is why you see north dakota, south dakota, wisconsin, some of these places >> he with talk about how we feel and i'm not locked in, i go out

and go places, but i certainly feel if someone comes within 6 feet of me -- someone the other day said, i turned around a couple times, and looked at this person, and she said you'll be fine, don't worry when it. east for you to -- and she didn't know me and it was like, you know -- i don't know people do get mad if you -- i feel it. i did feel it. and i like the little circles to stand in really brings a lot of order to my life. >> i tell you, i will say even in new york i think there is a breakdown and fatigue. i went out to dinner last night at an outdoor restaurant but i had to walk through the indoor version of the vaunts ret and i was shocked at home people were in there. i couldn't even fathom that they wanted those table, but i wanted to hold my blet and breath and k

that you are seeing more and more of that >> yeah, something that you continue to see. and we looked at the videos where you have people sitting outside at cafes in paris and other places and they are not wearing masks at the tables. and people walking by might be, but, there are questions about what happens with any of this. anyway, we are going to talk more about what is happening in the markets this morning you can see the dow futures are done by 416 points s&p 500 futures off by 42. nasdaq down by 106 much more coming on what has been happening in washington with what we'll be hearing today from facebook, twitter, alphabet in a moment. 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, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

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morning. among the stocks to watch, microsoft beat the street on both the top and bottom lines in its latest quarter there was strong demand for cloud services and gaming that helped results the stock right now down by 1.7% in washington today big tech is coming under fire. facebook, twitter and alphabet are set to testify before the senate committee that will be anything but friendly. ylan mui is joining us with a look at what we're expecting at least we're not talking about the stalled stimulus talks once again. >> right, something new to capture washington's attention right now. and conservatives today will be putting the tech industry's liability shield directly in their crosshairs even mark zuckerberg will acknowledge today that nobody is happy with the status quo, not republicans or democrats but he will also argue that

section 230 allows platforms to moderate content and without it, they could face liability for doing even basic moderation like removing hate speech and harassment jack dorsey will say erodings foundation of section 230 could collapse how we communicate on the internet and pichai will say let me be clear, we approach our work without political bias, full stop republicans have introduced legislation that will limt twile shield to just specific circumstances. senators were supposed to start debating that bill in committee last week, but guys, now that has been punted until after the election as well >> ylan, this complaining about please don't change section 230, is that one of those don't throw

me inhe briar patch issues i can't help but think that the more they complain, the more likely congress actually takes action >> they really don't want this to happen. they do see this as just an integral part of their business model and if they are open to massive amounts of litigation for the type of content that they pull down, that could be a significant risk to their bottom line and their ability to move forward. what i would say is that this has become an incredibly partisan issue there is a broad bipartisan big tech backlash, but this is an area that republicans have really chosen to sort of wave the flag on and use as their standard so you are hearing senators like ted cruz or tom cotton, marsha blackburn, gop senators who have gone after the tech industry over section 230 while you hear democrats really talk more about antitrust and market power

so even though they are seeing a lot of criticism from both sides of the aisle, the nature of that criticism is very different depending on where you sit >> and that means a lot is riding on this election. ylan, thank you very much. now to a cnbc investigation. cnbc has learned that popular financial app that promises high yield fully insured savings accounts is having trouble processing withdrawals at stake, millions of dollars in deposits, some customers have not been able to access their money for months federal authorities are investigating. and scott cohn is live with the latest good morning, scott. >> good morning, joe yeah, we have been looking in to this our investigative team and the company is called beam financial.

and it sounded great when it launched last year you deposit money into the app, and you could earn unto 7% annualized fully insured on your savings. which of course is a lot better than what you would get at a bank, a traditional bank, which pay as fraction of 1%. the app got a lot of attention including from cnbc when it came out as a way to fight inflation, but with some significant risks. one of which it turns out that none of this works if you can't get your money out >> i feel a little violated, you know and i feel pretty pissed off about it >> reporter: steve wolf who owns a small marketing business thut that he was being smart. with a toddler at home and a new baby on the way, he wanted to set up a college fund in a safe place. >> at the time it didn't feel like a risk. >> reporter: certainly not based on their ads >> meet beam beam grows your cash by 2% to 4% a year >> reporter: best of all, the money was supposed to be fdic

insured. that fdic logo gave you peace of mind >> absolutely. >> reporter: according to beam's website, it worked with a network of big banks, an app with no physical branches. you could boost the rate even more by doing things like recruiting new members >> one thing that interested me about this was a fintech company that was u.s. based. >> reporter: he put his money in up to the $15,000 maximum and watched the interest pile up, until this summer when he says the app briefly stopped working. >> i have that, oh, shoot moment >> reporter: trying to gethis money out, he called, ecmailed, reached out on social media. >> hey, we're not here, wait times are really long, crickets. >> reporter: he says blaming everything from the vendor it used to the covid-19 pandemic. >> i just think that it is shameful >> reporter: steve wolf is not

alone. we found dozens of complaints from people who say that they too can't get their money out. beam's website says it has 186,000 subscribers, though a source says the number of actual accounts could be less than 30,000 their deposits according kd to a beam vendor total some $2.4 billion. >> i don't know where the money is >> reporter: we found beam is not quite what it seems. the supposed cutting edge fintech company has its headquarters here at a noon descript building, closed when we paid a visit. the 51 member banks, not one of the 17 that responded said it had a relationship with beam which took the names off its website after we began asking questions. so what is beam? our investigation found the company revolves around what is known as a sweep account, which is legal each day beam's deposits are

swept into fdic insured huang accou bank accounts. a company like beam can earn fees and pass it on to the customers. though it is not how it can earn interest and the fdic insurance may protect the customer if the bank fails, but not apparently if beam fails since by its own admission, beam is not a bank. >> at this point, you have to assume the worst >> reporter: and now with stories like wolf's piling up, the company that handles beam's sweep account, r&t, says it is cutting beam off at the end of this week. the vendor that processes beam's transactions which beam blamed tells us that it has cut ties as well after learning people weren't getting their money. the fdic says that it wants answers about beam's claims regarding insurance. and we've learned the federal trade commission is investigating what it calls possible deceptive or unfair practices by the company

now, last night we did receive a statement from a beam spokesperson says the top priority is the customer the statement says that the service was interrupted briefly earlier this month by fraud on the part of certain customers, fraud by certain customers but it doesn't give much detail on what that fraud was and of course that doesn't explain some of the earlier complaints thinged that happens before this month and the fact that the ftc has been investigating since may. the statement is also at odds of course with some of the explanations that beam has given in the past. beam does say that it is working to process the most time sensitive transactions and that all of the transactions it said should be accomplished, should be completed action by the end of this week we'll keep you posted on that. and we've also learned that beam has sent an email to customers saying the money is secure in

fdic insured accounts. >> i hope so when you were going along, i was like -- you know, getting a bad feeling. but maybe this is all going to happen when you try to get customer service from a lot of things you did online, i've had -- you know, long wait times, we'll get back to you. and many times you can't talk to a human. you just can't >> yeah, it has clearly been frustrating for a lot of the customers. and there is this whole world of fintech, a lot of these startup companies, and they are all sort of finding their way and you have to realize that as you chase for this yield as we all are, you need to be cautious and conscious of the risks of course this was promised as something that was risk free i guess we'll see. >> so it looks like it is dark there, so what state you are in, whether you are on daylight savings time, start guessing about -- this has nothing to do

with that apparently >> nothing to do with that i live in california these days, joe. >> is that the best state for business >> no, it is just home >> and definitely not the best state for business all right. we'll look forward to that and ge is out, stock looks like it is up a little bit. posting better than expected both earnings adjusted of 6 cents which i think the street was looking for a loss of 4 cents. and estimate for revenue in the quarter was 18.725 and it looks like it was $19.42 million. and then it is not exactly the same company in terms of makeup that it used to be, we know that now. but ge capital revenue, $1.68 billion. aviation, you would think a

great business, but affected by a lot of headwinds recently. $4.92 billion. health care, $4.57 billion the continuing operations, there was a loss, but if you factor out the items, you do see that 6 scented adjusted profit even though organic orders fell 28% total orders, $15.5 billion was down 31% but the stock had been down the last couple sessions and it is back a little bit this morning go ahead, beck >> i was going to add, some of the stuff that they are talking about with the fourth quarter that might be helping, they say they are on track with cost and cash actions and fourth quarter flow of at least $2.5 billion and how they see industrial free cash flow turning positive in 2021 too stock up by about 2%.4%.

>> and larry culp will be on "squawk on the street. and coming up, so much more, big story stocks behind this drop in the futures this morning. we'll talk all about it, try to then you set up for the trading day ahead.

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welcome back want to take a quick look at the futures. maybe take a long look at the futures because we are down triple digits, about 440 points, nasdaq lower as well off about 121 points you have the s&p 500 off about 45 points. concerns about rising covid levels in europe, here and elsewhere. let's show you the faang stocks as well. they of course have been a bellwether for so much of this pandemic but right now, you are looking the a red arrows across the board, not getting hit necessarily as hard. apple and alphabet getting mitt t hit the most there are those hearings in washington today that will relate to some of this but not most of it anyway, apple off by 1%. and let's do today's executive edge a couple interesting stories to

tell you about right, becks >> yeah, that's right. we have christie's will be auctioning off the art collection of t. boone pickens who died last year he was a friend of mine and a friend of the shows. boone was one of the top collectors of american west art and the buffalo is expected to sell between $3 million to $5 million. one of his favorites was this piece called boon town drifters by jean harvey he kept it above his desk and estimated at up to $500,000. and in his final months, boone wanted to look at this painting the most, it is called indian love call, estimated at up to $3 million. his gold rolex which he got in 1964, wore it the rest of his life, that also will be sold and it is estimated at $10,000 to $15,000. that auction starts today appropriately at high noon

it is at christie's and you can bid online >> that's crazy. $10,000 to $15,000 >> maybe it goes higher. >> interesting niche for art, not surprising that boone focused on that and his beloved oklahoma state and everything else anyway, coming up from covid cases to the upcoming presidential election, we'll talk about the big headlines investors will be watching today. but first as we head to break, a look at yesterday's s&p 500's winners and losers

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we have futures pointing to another lower open on wall street, the dow already dropping

nearly 900 points already. and it will go lower this morning. dow down about 430 points right about thousannow. joining us now to talk about it, director of portfolio strategy at vernon capital advisers is this the volatility we were expecting, is this what was supposed to happen we've been talking about an election moment. why not if you think it is that or you think it is covid >> i think when we started this week and even last week, it was whether it was the election jitters or the fact that we weren't going to get the fiscal stimulus as soon as we thought we were. and now it is being replaced with the rise in coronavirus so i don't want to downplay any one of these factors, but this market has really been looking for a reason to pull back. and i think that we're getting that this week >> so the question for us is if everyone is expecting it, how far is the pullback and are you

buying on this, is this just a blip or do you think that there is more to go? >> we actually started raising cash in our portfolios back in august with the anticipation that the fourth quarter would be a bit choppier the easy work was done with the economic recovery. we got that v shape recovery now the choppiness of the economic recovery we think will go on through the furthourth que and beginning of next year so we were raising cash with anticipation to have better opportunities to enter the market right now we're watching the market we're only down about 4% or 5% on the s&p 500 and the s&p 500 still remains pretty concentrate theed in in a second number of names we still think that there is additional downside. we'd like to get more clarity around the coronavirus

and then lastly, we'd also like to get a little bit more clarity on the two sides of the economy that we're a little more concerned about, and that is the labor market even though we've gotten a big improvement there, it is not enough without another fiscal stimulus package, we'll see elevated unemployment, we'll see elevated jobless claims so this is something that we need to see get a little bit more consistently better and then this week you will also get personal income in spending. and personal incomes has been very weak over the past couple months that is another thing that we just want to see get a little bit breaker. we we -- better but the timing is unknown. >> and real quick, when you put that money to work, where do you wankt want to put it >> we like the developed international regardless of what is going on in europe with the

coronavirus cases because if you look at the amount of money that they have put forward from either liquidity support or fiscal stimulus, as a percentage of gdp, it still is a pretty astronomical number. we also think that they have lagged the u.s. for a significant amount of years, so valuations still look more attractive so we will be looking at the developed international. within the u.s., this is difficult because the tech heavy names, even though you would love to try to get into them, they are still expensive, they are pricing in earnings for 2021, 2022 so unless we see a pretty bigger drop in the nasdaq there, we would look at maybe some of the sectors that have really been left behind. industrials is one of them even if you want to go from the contrarian point of view, financials financials i think if you look over the next 12, 24 months, financials have room to catch up especially if we get a fiscal

stimulus package, a little bit of backup in interest rates. and remember some of these large cap banks have really increased their loan loss reserves to be able to weather any additional downturn in the market >> megan, we appreciate your perspective on all of it hope to talk to you again very soon >> thank you when we come back, we have this morning he's stocks to watch including u.p.s. right now that stock is up by 2.14%. including u.p.s. right now that stock is up by 2.14%. 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, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

welcome back today's stocks to watch, brought to you by charles dickens. best of times, worst of times. u.p.s. shares higher in pre-market trading, earnings at 2 pmt $at 228 a share even though they knew, they were at $1.90 and the company earned $2.28 u.p.s. continues to benefit from a pandemic related surge in home deliveries and then the other side, six flags, shares of six flags

entertainment dropping the company posting a bigger than expected loss revenue also falling short of expectations as you would expect the theme park attendance hurt by the pandemic. coming up, tom leighton.

welcome back futures this morning are under pressure this is a pretty familiar scene this week. in fact the first couple days of the week, the dow was down by more than 650 points this morning it is indicated down by another 430 points and this comes as we continue to see cases climb in europe and the united states. but in europe, there is more talk of additional lockdowns

particularly in germany and that has been putting pressure on the markets this morning s&p futures down by about 43, nasdaq down by about 118 more people relying on connect differencity to work from home, and akamai business is soaring as a result. it is a technology up 24% for stock year to date joining us to talk about this and the latest quarterly results is akamai's ceo. earnings of $1.31 versus $1.24 the street was anticipatinanticg what's happening revenue was better than expected. >> akamai is doing better than expected

we're seeing strong traffic numbers across the internet. there has been an increase in the attack traffic the prize is greater now that so much business has moved online quarter over quarter seeing doublings of malicious traffic. >> doublings of malicious traffic as people are trying to break into corporate networks. is that because they see an opportunity with people working home, they think it's an easier target >> it is an easier target. people are working remotely. a little bit less secure i think a lot of enterprises still haven't totally caught up with the security. the prize is greater because so much business is online now. just in the last couple of months we've seen an enormous increase in the extorsion ddos attacks. dozens of major enterprises, mostly financial institutions, national stock markets being

threatened with massive ddos attacks if they don't pay up this is an area where we've really been able to help our customers and now new customers. >> ddos. >> denial of service attacks how are you keeping up with this i assume you have your people working at home too? >> absolutely. we have over 95% of our employees working remotely we did that very early on in the pandemic that's worked out very well. been very, very pleased about that you know, in terms of security, we make enormous investments and have for a long time to be able to stay ahead with the various kinds of attacks out there, you know, denial of service, application layer attacks where someone's trying to corrupt the content on a website you've got attacks on enterprises where you're embedding malware into employee's devices and you can try to cause a data breech

because they reference third party sites, those sites are compromised and anybody who goes to the site gets hacked. >> what do corporations need to be thinking about? i know you have a long list of well-known corporations that you serve as clients, but what should a company do at this point if they're still dealing with work from home? we're more than six months into this we're past the early days of trying to figure out and make sure people can work what is the new sort of solution that you're thinking about and that you think companies need to think about too? >> yeah. i think it's all about zero trust and security in the cloud. your employees are no longer on prem and trying to secure that with on prem devices has been the norm justdoesn't work anymore and that's why you're seeing all these data breeches i would reach out. companies have figured out, as you say, how to enable employees to work remotely they haven't totally figured out

how to make it be secure. >> tom, one of the things i love about you is your story. for those who don't know it, you were at mit. you had an incubator company you were working through the labs and picked up and moved across the street that's when you started akamai people may not realize you did the programming, the math that goes through this. i know when it comes out to trying to figure out a better way of web congestion, you yourself came up with an algorithm to solve web congestion using applied mathematics and pre the cloud. what kind of gets you interested today? what are you thinking about in terms of mathematics, in terms of how that kind of works in the world of the internet that excites you about the future >> it is very exciting and it is a mathematics algorithm's challenge. there's a lot still to discover. of course in security, the

threat actors, they are working very hard to figure out how to penetrate the defenses because the prize is so big, but as you look to the future, you know, 5g is going to be deployed. i think that's going to enable the internet of things and we're going to see billions of devices get connected. they're going to have very low lay ta latency at the last mile higher threw put and we'll see a plethora of new applications much like we did when broadband was deployed figuring out how to support those with computing at the edge close to the devices, how to make it be secure because a lot of the devices themselves are not secure that's a very exciting area for the future, and i think we're going to see a revolution in how the internet is used and applications that come online. >> well, we love having you here thanks for joining us this morning. congratulations on the quarter

we look forward to talking to you again soon thanks for your time today, tom. >> thank you. by the way, we should mention tom is going to be one of the key notes at tomorrow's cnbc technology executive summit go there today and you can sign up for it. andrew a lot more on "squawk box" ahead including dr. scott gottleib who's going to jump in on what's happening with all of these rising covid cases and what investors should know about what might be next we'll also, of course, look at the markets as futures continue to tumble. right now it looks like the dow woulop dn out d enowab450 points we're back with two big hours ahead. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online.

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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. stocks set for a sharply lower open virus fears. we'll walk you through what you need to know dow component boeing set to report the second hour of "squawk box" begins right now.

good morning welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures indicated down 460 points after dropping almost 900 on monday and tuesday. the s&p indicated down 49 or so. nasdaq down 147. still only down maybe 4 or 5% on the s&p and as it has been pointed out, there are, take your pick, no stimulus, covid concerns, election uncertainty, all these things playing into it but i guess this first fact, andrew, is probably you take europe, you take the united states and then you take the possibility of lockdowns on top of just rising cases and that's where -- and oil and everything else, that's where you get to where we are -- where we're at. >> i think that's how you get to

where we are >> now why people didn't think this was going to be a possibility to me is a bigger question, but as you know, let's just walk through some of the math on covid right now. concerns are such a big part of the market story in the united states, the seven day average of new cases topping 70,000 for the first time. hospitalizations city hitting their high since mid august. meantime, in europe multiple countries trying to contain the outbreaks. all airlines falling this morning. united down 2% delta down more than 2%. southwest and jetblue off a little over 1% cruise lines, as you might imagine, also down this morning as covid cases surge worldwide carnival down 3% royal caribbean in the 3% range be as well becky? >> andrew, thanks. let's get over to karen cho. she has more on the new european restrictions and the market

reaction there karen, good morning. >> becky, good morning to you. we have been hit with a wave of selling on the european markets particularly in the first hour of trade where we've touched some of the lows we're trying to claw back some of the losses. still fairly grim if you take a look at the ftse, we were trading below 5,600 points we have reclaimed that handle. keep in mind that's more than 2,000 points where we've started so we're right back around april levels on that particular market when it comes to both france and germany, we're trading around some of the may levels been a grim trading level from the dax after a proper earning so some of the losses just compounded if you consider what weare setting up for, the french president emmanuel macron will announce a new national lockdown today for france that said, the majors are not thought to be as strict as the two-month lockdown for mid march. it would be a step up from the nighttime curfews, roughly what

you're seeing at the moment across the country so while we are bracing for that news, also in germany where the rules have not been that strict angela merkel has been talking to regional leaders about a lockdown that would force bars, restaurants and public events so we are waiting for news flow on that when it comes to the u.k., there's discussion about circuit breakers being required. we're not at that point of the stage. steeper ones in various parts of the country. not london at this stage, but it would suggest that we might see stepped up measures if required. there are concerns right across the u.k., france, germany that way we are seeing health services becoming overwhelmed spiraling particularly when we are talking about france here in the u.k., almost 20 thousand new cases and we've reached the death toll of an average of 200 a day that was much sooner than anticipated according to some of the chief scientists the data is not going the right

way. there are concerns about impact on the fourth quarter profits. becky, andrew, joe, back to you. >> thank you we're going to talk more to one of our frequent guests get some insight into the science and the pandemic, scott, and also try to touch on the market impact with you i know that's not your -- necessarily your domain, but it has to do more with -- i think more with the potential for lockdowns than the rise in cases, which are bad, obviously, in and of themselves dr. scott gottleib, former fda commissioner, cnbc contributor serves on the board of ilumina and pfizer some people are saying the weakness is imported from europe, we had weak markets over there and the potential for lockdowns at this point at least might be greater with what's

happening with the pandemic than here although we are seeing troubling signs of rising cases here then i want to move on to another part of that in a second, but do you agree with that, that europe could be closer to lower lockdowns than we are >> europe is closer to having to contemplate those measures than we are right now i don't think we're going to be issuing broad stay at home orders because there isno popular support for that and you can't implement it if you don't have the support of the people the reality is the density of the epidemic like europe, italy far exceeds. we're three weeks behind europe, maybe a month at the most. we're on the trajectory to look a lot like europe as we enter the month of november. so i think things are going to get worse. the reason it doesn't feel that way right now is because for the most part it's a little bad everywhere in the united states. it's not really, really bad anywhere with the exception of

wisconsin, the dakotas, utah what we have is very diffuse spread which is at the beginning of that steep part of the epidemic curve right now i wouldn't be surprised if we challenge 100,000 diagnosed cases and we get close to 100,000 if some states report. could be some states don't report until later into the week. >> somehow, scott, "the wall street journal's" lead editorial today is able to point to some less pessimistic details about what's happening here, and i'd like to get you to comment number one, you have said again and again that we are dealing with the disease better and fewer people are succumbing to the disease in terms of mortality. that's one thing we can handle it better. they went in and looked at some of the states you just mentioned, even the hospitalizations there are places where you're getting up to the upper limit but the journal's point is there

are fewer hospitals being set up if necessary and a lot of places are not as close -- nearly as close to capacity as they were back in the summer but you think that that could change and there could be a real problem with accommodating everybody that has the disease in some places, scott? >> i think we're going to do a better job you still have to do a much better job in the south. it's much better prepared and success will be messy. hospital setting up surge capacity, field hospitals. that's not a failure, that's the system absorbing an epidemic length of stay has increased because we've done a better job. criteria is going up we're treating more patients at home that will alleviate burden i don't think we're going to issue broad stay at home orders. there is much more resiliency and we can tolerate much greater deals of infection you are going to see bars and

restaurants closed, maybe curfews put in place, but not broad stay at home orders. >> breaking up a little bit. i think we'll try to continue here then it's also pointed out that mid next year maybe there's a vaccine. dr. fauci says maybe april for vaccine. maybe there's something like that coming. now i wanted to get your thoughts on something we were discussing earlier this week about a worrisome sign in terms of immunity in that you don't see a lot of circulating antibodies in patients three months later i've seen a lot written about it and i've kind of looked into it and there could be some varying reasons for that i'm wondering if that's troubling yet. one of the things is people said you would see already in people that had the disease, you would see already a rising incidence in people if they had short-term

immunity just circulating it doesn't mean overall immunity do we need to think this will come back in a couple of months because your body doesn't recognize it again >> well, what we see with coronavirus is we see the antibodies dropping off after a brief period of time so you don't have durable antibodies the same as with other viruses they don't last as long. you see people eliciting t cell, cd 4, cd 8 t cells this is behaving a lot like sars and mers the antibody response doesn't last for a sustained period of time the presujts is you will have durable immunity from other immune cells antibodies aren't the full complement you're receiving from infection or from vaccination. >> there was news out from eli lilly. they're still talking about

supplying the government with a certain number of viles of their anti body treatment. are you optimistic in certain situations that anti body is effective? do you think regeneron is superior because it's a cocktail does it depend when and where it's used? >> i think it's the latter i think it depends when and where it's used. you need to use it early we saw with the lilly trial when it was stopped, it wasn't creating harm and it wasn't providing a benefit for those who are far into the disease we saw the same with ebola these ned to be delivered early when patients are first infected lily has two therapies, the

monotherapy and the cocktail cocktail seems to work better. >> one of the reasons that the journal wrote this piece is about the quote it's going to be -- vice president biden, we're about to go into a dark, dark winter. a dark winter. a dark winter. versus we're rounding the corner on the pandemic from president trump. are we somewhere in the middle of those two how should we view it? >> i think we're entering the most difficult phase of the pandemic it was always going to be this way. we long suspectedthe fall and winter are going to be difficult months we are much more prepared to deal with it 2021 will look different as the epidemic curve declines and we have better technology. >> that doesn't include necessarily any additional lockdowns, just more social distancing, more mask wearing, more things like that, but not lockdowns in your view >> targeted mitigation i don't think you'll see broad stay at home orders in the way

you if in the spring certain cities, certain states will take certain steps as it becomes epidemic in regions. we see chicago closing bars. newark implemented a curfew. that's what you saw in the south as well. you didn't see broad stay at home venues. they implemented mask mandates that's what you're going to see. what we should be doing is trying to implement things now that are easy or easier to get ahead of it. not wait for this to truly become very dense. my concern is we're not doing that masks are the most obvious thing you would want to lean heavily on. >> okay. all right. very good, doctor. i guess it doesn't matter to call it first or second wave just semantics, but it's still a continuation of the first wave >> that's right. it's another surge in what really has been a continuous

pandemic 2021 will start to look different with the combination that we will have infected a good portion of the population so the rate of transfer will decline and we'll have technology more widely available. hopefully a vaccine but certainly therapeutic vaccine heading into 2021. we will round the corner, we just have a hard phase to get around the corner. >> thank you appreciate it. >> thank you >> becky. thanks, joe. when we come back, aflac ceo dan amos will join us. before we head to a break though, blackstone just out with its quarterly results. came in with earnings of 63 cents a share. 6 cents better than expected that stock up by 1/3 of a percent. the chief operating officer jon gray will join us in the next hour to talk about the quarter "squawk box" will be right back. at calvert, we know responsible investing is hard.

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if you add that 484 from monday and tuesday, you're getting close to 13, 1400 points that's getting close to this week, what, 4, 5%. that's starting to add up. becky? >> you're right. we've been here for over an hour people should get up earlier and be here. >> come on let's get with the program >> that's right. it's started we're here you should be too. global insurance company aflac reported higher third quarter earnings after the bell yesterday. joining us is dan amos covid has been difficult because for you guys a lot of the sales

are face to face, is that right? >> that is correct and we are adjusting we've been doing that even prior to covid, to do -- to be able to do more sales through intranet and internet what covid has done is fast forwarded us to move toward that even at a faster pace than we have before. we're spending a little bit of money, but i think long term being able to see people through the internet will be a good thing. we also like our one-on-one presentations, but we have to adapt. that's part of our job in business is to find a way to adapt. >> what does that mean in terms of the employee base is that going to shift who you're hiring, how you're hiring, how things work? i mean, if you're a salesman who's used to doing things in person face to face to sell somebody additional health

insurance, are you hiring a person to do that over the internet >> just to give you an idea, what they're doing in japan for us, we just started it, in fact we got our first 100 applications just this week is they call the individual and set up the appointment and they actually with their cell phone can enroll them on the application and it's a very simple process so instead of me showing up at your house, i'll call, set up an appointment, we'll look at each other on the internet like you and i are doing now and at the end we'll close the sale and say, now, if you'll just pull your phone out and do this, this, and this, you're signed up that's all there is to it. so i think it's going to be very positive just like anything else, some people want to do one on one and meet with you, we want to be able to do that.

the younger generation, certainly the people we've been dealing with under 40 had rather have it that way and some of the older people would prefer still the one on one we're going to be flexible in the way we do it >> what has it meant for covid from your customers' perspective? because i know hourly workers are a big part of the customers that you've served how have they been impacted by covid? what's their economic status and can they afford to pay for insurance with aflac >> well, i think everybody's been affected in some way that we all know. what i will say about us is there are a lot of out-of-pocket expenses and we provide cash to fill those expenses for whatever it might be, loss of income, whatever it might be but we did see a downtick in claims because people, especially in april, may weren't going to the doctor, they

weren't leaving their house at all. one of the things we did starting in the third quarter was we did a mail out to all of our existing policyholders to use our wellness benefit two reasons, one we know with the wellness benefit it will start the process to make sure you're catching things early one of the things we worry about is the tail on the business where someone's not going to have a checkup for cancer and then all of a sudden they check a year or two later and the cancer has gone from stage 1 to stage 4. so we want to encourage people to go ahead and do that. we also have encouraged them by telling them we're paying the covid test if you needed to use that but interacting with us improves persistency, and we've seen that we were able to see a little up tick which we wanted in our claims because they have been a little bit lower

we think they'll come back, but it just takes time with this covid. >> dan, a question we've talked to you about in the past insurance companies everywhere have struggled with trying to figure out where to put their money when you have treasury rates so incredibly low. that's typically been a place where insurance companies say they know they can get a constant return. what are you doing in terms of trying to just make sure that you have some return of the assets you've taken in >> you're right, it's been a challenge. in japan it's been a challenge for more than ten years. what we've been able to do is look for other forms of investments. you know, we're doing some u.s. treasuries because our assumed interest rates on our policies in japan are so low. we can still make it work to some degree, but there's no doubt it's a challenge and it's affected everyone in the

industry but we've been able to do some real estate, some private investments. but all in all it is something we continue to watch carefully and look for things. and we've come in this year a little bit higher than our overall yield in the last few months than what our original goal was but our main job right now during the pandemic and other things is to protect the assets we've got. you know, you go back to i was around when the financial crisis hit and the fear of what would take place in that regard so making sure our assets are protected, they're diversified those are very important to us that's the first thing we look at and then we're looking at the yield and the combination of the two is what we have to have to hit our objectives, and we think we'll be able to do it >> yeah. i remember talking to you during

the financial crisis about this issue, too it's good to talk to you good to see you. we'll have you back again soon. >> thank you very much. >> thank you andrew coming up when we return, thanks, becky, we'll talk about mortgage applications. dow component boeing set to return the numbers and the reaction on what continues to look like a market selloff day to day. we're going to keep our eyes all over the markets "squawk" returns right after this ready to take your immune support to the next level?

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welcome back to "squawk box. i'm diana olick. refinances got a slight boost last week thanks to a drop in mortgage rates it fell to an even 3% with 3.02 with performing loans at 20% down not a huge drop. applications to refinance a home loan which are more sensitive to weekly rates increased 3% for the week and were 80% higher than the same rate one week ago. mortgage rates had fallen four straight weeks were essentially

flat last week rising just 0.2%. they were a strong 24% higher annually home buyers are struggling not just with a record low supply of homes for sale but this was apparent in the average purchase loan application size last week which set yet another record high of $372,600 we've now seen price gains increasing for both existing and newly built homes this fall. some of it is skewed for homes on the higher end of the market for sale on the low end where competition is more fierce, prices are still gaining more making the record-low mortgage rates less powerful in affordability. andrew >> okay. diana, thank you for that report we're going to keep our eyes on all of it as we keep our eyes on the markets this morning we've got boeing's results they're coming up in a minute. that's a dow component we're looking at the dow with an implied open close to down 500 points 485 points right now the numbers,ar mket reaction and

all of it in just a moment

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welcome back to "squawk box. boeing results just out. of course a dow component

getting over to phil lebeau with that story phil >> andrew, let's go through the numbers and then we do have important news for boeing as they released the third quarter financials for eps a loss of $1.39 which is better than a loss of $2.52 revenue slightly better at $14.1 billion. operating cash flow, negative 4.8 billion. the cash burn, negative 5 billion. but they do end the quarter with liquidity of $27.1 billion now the news that's going to get plenty of attention today, certainly during the analyst call as well as by investors all day long boeing setting a new target for employment for the end of 2021 remember, they are expecting to get down to about 141,000 employees by the end of this year now they are targeting getting down to 130,000 by the end of next year, which would mean another 11,000 jobs being cut. they expect about 7,000 of those

to come through involuntary or voluntary layoffs. what you have for boeing is further job cuts here. about another 7% if you go back to the beginning of this year, guys, from the beginning of this year to the end of next year, they will plan to cut about 18% of their work force. no change, by the way, in the commercial production rates -- commercial airplane production rates. don't forget, we're going to be talking to dave calhoun, ceo of boeing you don't want to miss this interview coming up at 9:00. boeing in the process of saying we have to cut more jobs through the end of next year, about another 7% is what it looks like, about 11,000 jobs. guys, back to you. >> all right, phil you know, the wall street view -- i was trying to see what the stock's going to do on that. it's obviously a reflection of how tough things are >> sure. >> many times you see things like that, you know, it can mean a positive -- it can have a

positive effect on cash flow and obviously the bottom line. it's unfortunate is that about where expectations were for how this company needs to downsize given the new environment? >> i don't think -- yjoe, i dont think it's going to come as a surprise the fact they haven't changed the production rate, that might be a little reassuring you don't want to cut the production rates any more than you already have they're in the process of gradually bringing back the 737 max production rate once that is ungrounded, which is expected to happen here in the next month or so then you will see production which has already been gradually increasing, then continuing to gradually increase deliveries increase as you go through 2021 the fact that they are going to be streamlining their operations further, i don't think it's a surprise given what we're seeing ayana was out.

i will be curious what kind of questions boeing gets with this. i think boeing is not surprised to have further cuts. >> a conference call -- >> hey, phil -- >> what time is the conference call >> i believe it's 10:30 eastern, 9:30 eastern i'll double check. we'll be on it and can tell you about it. >> phil, to clarify the numbers we're talking about. this is a company that had a work force of 160,000 over the summer they had originally said 16,000 in cuts. this number brings it closer to 27 to 30,000 because, you know, when you add it up i was thinking 27,000. we say -- >> let me start from the beginning. becky, the easiest thing to do, you know how this goes this is not a flat out we're cutting this x number. it adjusts over time start of the year, started this

year, 160,000 employees worldwide. they plan to get to 130,000 worldwide by the end of next year so 30,000 in jobs eliminated between the start of this year and the end of next year where are they at right now? in 2020 they are in the process of cutting about 19,000 jobs some through voluntary leave packages, others through -- we're taking -- we're going to have to cut that job, there are going to be some layoffs there they're going to get down to about 141,000 this year, at the end of this year, or somewhere in that neighborhood and then another 11,000 in 2021 >> we know are these jobs primarily in the united states? are they in the back office? >> they're primarily going to be -- the biggest hit is going to be in the commercial airplane unit you're talking about here in the united states where you're going to take the biggest hit there. that doesn't mean they're all here this is a global company so

there is going to be some impact outside the u.s. borders, but the commercial airplane division, the bulk of those jobs are here in the u.s. >> all right great, phil. thank you. stephanie link is hightower chief investment strategist, cnbc contributor stephanie, we've been talking about some of these earnings -- company earnings that we're seeing let's start with boeing. i think you were able to hear everything phil said so the numbers are one thing, layoffs another. what do you think? >> yeah. i was surprised about the layoffs of the commercial aviation business. just in a world of hurt. look at ge, look at raytheon the commercial oes for their businesses were down 45, 50% the aftermarket business is down 50%. this is not surprising i will say on the positive side, from an investor point of view, the liquidity of 27 billion is

very encouraging the production rate very encouraging. you know, i don't think earnings really matter for this company it's all about the 737 max as phil said, looks like it's going to get back up in the air in the next couple of months we got very good reviews from the european regulators. they're saying they're deeming it safe. the faa chief flew the plane twice, 737 max twice and said very positive things so i think they're making progress there. in the meantime, they've got to cut costs because the overall environment is still just really challenging. >> they do have the liquidity that you point out that's one thing they have a defense business that is not, you know, worth zero on top of everything else what do you estimate that's worth? >> yeah. i think the defense business is worth about 80 to $90 a share. it's sort of interesting back in march when the stock fell to the lows, it only got to 91 it got to around that level.

it is a good business. it doesn't get the credit, i don't think, in terms of the operations of the efficiencies and that sort of thing and the relationship, but it is a good business and overall they're going to get -- they'll get through this it's just going to take time you have to have patience. the stock is down 51% year to date i still think it is a buy here, especially in front of the 737 max. >> ge reported -- you referenced it earlier along with raytheon in light of the boeing news. i mean, can you imagine being ge and then the pandemic hits can you even -- it's unbelievable, right? you still think at $7 it's a long-term hold based on confidence in cult >> absolutely. i mean, turnarounds take time, right? most importantly the industrial was better than the $1 billion

burn rate that people were expecting. aviation actually turned a profit, which was interesting. power did as well. renewables did as well i think there's a lot to be encouraged by. i'm most encouraged by the debt reduction. year to date, they've now lowered debt by $11.5 billion. 2.6 billion in the quarter itself he's doing everything he can they are making progress they made progress before the pandemic and then the pandemic hit and they have a lot of issues i think they're going to be making themselves a better company and get out of this as well these are two turn around stories. they're hard, not easy you have to have patience and i think they do provide some value here. >> tech's important. microsoft. the faangs for people who think that the whole market got ahead of itself, the faang is a poster child. do you think so? >> the faangs are over owned some of them had a lot of really

good moves the one name that i would highlight that hasn't had enough of a move is google. i think the setup for the quarter to google is pretty good versus the others. that's because digital ads are recovering we heard that from snap. that should benefit them that should also help ebitda margins. we can see mid single digits this quarter youtube is growing in the mid teens. all depends on travel and if that has come back for them at all. i like the setup and the valuation for google into the quarter. >> stephanie, thank you. >> thank you have a good day. >> you're very welcome you, too. >> thanks, becky. joe, wall street's pointed towards a lower open this morning as investors continue to track those rising coronavirus cases, not just here but in europe the potential for additional lockdowns putting pressure not just on equity futures but on

oil prices too in fact, take a look at what's been dragging the dow down this morning. you can see in the pre-market the big laggards, first of all dow down by 2.75%. caterpillar was one of the two big decliners. caterpillar had earnings report and chevron also down this morning. we'll have more on everything that's happening this morning when we come right back. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert.

welcome back to "squawk box," everybody. the futures this morning under pressure if you haven't seen it yet, dow futures indicated down by 450. a big deal because of the losses we saw yesterday of 220 and the day before that 650. it starts to add up. let's get over to dom chu. a lot are to the down side. >> yes, they are to the down side first of all, let's take a look at the s&p 500 because we are still trying to hold at around some of the levels around the 50-day average price that kind of level is 3408 at this point here. you can see we're below that now on a closing basis we will likely be below it again given the implied down side for the move to the s&p.

some people will be watching to see if that becomes a potential cap on some of the shorter term moves. if you take a look drilling down to some of the components of the market factor wise, we've been looking at momentum stocks doing very well for others compared to the value oriented sectors, perhaps industrials, higher dividend paying energy-type stocks you can see the massive gap in performance. you can see the orange line. that means we've been lower ten of the last 11 trading days with regard to semiconductors seeing a bit of a rollover with the more software oriented gains. they're outperforming. becky mentioned the down moves we are seeing up moves

pre-market with earnings reports. ups is 2/3 down. ge shares up 4.5%. better than expected just out in the last half hour, you have garmin, tupperware brands moving solidly to the up side catching tailwinds, we have some green specs in a sea of red. back over to you >> okay. dom, thank you for that. appreciate it very much. meantime, on the other side of this break, camping world ceo and host of the profit, marcus lemonis. he has a new foundation we'll discuss. he has a real hot take on where things are and where things are headed a conversation you don't want to miss the next hour, a huge lineup still to come. john thune blackstone president and coo jon

gray on the quarterly results, the markets, the economy and so much more. glenn hutchins will be joining a palantir co-founder joe lonsdale ♪ you can go your own way

it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get 5g included and save up to $400 dollars a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile. welcome back to "squawk box" this morning take a look at airline stocks. they are under a lot more pressure as covid casing around the globe rising again yesterday we saw stay-at-home

stocks on the rise on a down day for the broader markets. zoom, amazon, peloton, video game makers and others rising on that news of more cases. today, we should say, some of those down slightly. zoom looking to rise again meantime, covid-19 is forcing so many changes from flying, restaurants, outdoor activities, biking, hiking, camping over destination vacations. for more on the changing habits and marcus le lemonis we should talk about the launch of lemon aid committing $50 million in cash and stock to that foundation we're going to talk about all of that in a minute i want to start with business with you first, marcus

you own a big business and we're now living through covid, watching these cases rise. i'm curious what you think the impact is going to be psychologically on the consumer and how they're going to change their spending patterns, if they do, come this winter >> i think, andrew, how people are thinking about how they are existing i'm hearing people are saying, covid is a temporary shift for how they're behaving i think the longer covid remains in the marketplace, the longer the shift isn't going to be temporary, it's going to be relatively permanent people are changing the way that they actually leave their home, if at all. and when they do, the activities that they're engaging in are very different we've seen a dramatic shift in our business in the last 12 months at camping world. and while the business was already on the rise prior to covid, the alternative of going into the outdoors and being in the marketplace has really, really shifted we've seen a definite change in

demand. >> but, marcus, you're not of the view that -- there are a lot of people, especially people of means with money who are frankly saving a lot of money. i talk to people all the time who say my credit card bill is lower today. you don't think that when and if there's a vaccine that all of a sudden they're going to spend that money but they're going to spend that money the way they used to spend that money they're going to get on airplanes, have big dinner parties, go to restaurants they're going to do all those things, the an him in mall spirit of human nature is to go out not saying in the wilderness by themselves but in the current version of the pandemic that we're living through >> well, first of all, all of us as americans should be very concerned how public transportation is being looked at you can read articles about airlines should go out of business we should remember the airlines are part of our national infrastructure we need to be able to get around

on planes, trains, things of that nature. this idea that camping and going outdoors is a new fad is totally nonsense the industry has been very robust in fact, 2017 there was more manufactured rvs in america than there will be in 2020. as people -- as the vaccine does come around, it is true, people are going to go back to some of the habits like going to sporting events and concerts, but i think in large part you will see that families through this process have re-engaged with each other and they're looking for activities that are different. i don't see that changing regardless of when the vaccine comes out. >> marcus, what do you see about the strength of the consumer and how worried are you about where we are in terms of the employment picture in the united states we just got news obviously that boeing is going to be laying more people off. what does that look like to you over the next 12 months? >> it's very odd i'm seeing a dramatic shift in credit scores, at least in our business we look at hundreds of thousands

of transactions and credit scores on a monthly basis. credit scores have been on the rise and we're finding people have more cash to make a down payment or spend money if you really think about it, andrew, there's cash in the economy, it's just parting from people's pocketbooks in a very different way. but i'm hearing from people that they have more cash on the sidelines. don't be fooled by that and think that this economy doesn't need a stimulus. there are individuals and small businesses that need that help now and i think the longer it goes on, the more damage that could be unrepairable will continue to happen >> marcus, there's a view if there's a blue wave that private companies are going to try to sell themselves before the end of the year for tax reasons and other things i'm curious as an investor yourself as you're looking at businesses to buy in whole or in part, what you're looking at right now. >> well, companies that have always been stable and had great cash flow are not going to change at least in the short term -- at least in the long

term, excuse me. when i look at businesses to invest in, i was not an investor of technology but as we look at our life and the leading technology to have food delivered, mobile contactless service or package delivered, i'm looking to invest in things that i think are going to be a major shift in the way we behave but this idea that everybody is going to go out of business for this period, i don't agree with. >> tell us about lemonade. >> i'm very concerned about

businesses in communities and businesses with women and minorities and their ability to access the credit market i've decided to allocate $50 million to get the program started to invest in loans, grants, equity into small businesses it's not a gift, it's an investment but we're looking to deploy that capital very quickly. >> marcus, it's a great cause. we look forward to seeing what happens with it. we thank you for joining us. we thank you for what you're doing. >> thank you. >> look forward to talking to you again very, very soon. ava big hour ahead of "squawk box" right after this. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions.

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good morning markets set to drop sharply at the opening bell as the u.s. sees a record average of new coronavirus cases and hospitalizations jumping in the middle of all of this volatility, quarterly results from some major u.s. companies including boeing, ge, and ups. we're going to run down all the earnings action. big tech under fire in washington

the ceos of facebook, google and twitter get set to testify in front of congress with a long standing law that helps protect them may be hanging in the balance. the final hour of "squawk box" begins right now good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures are down just under 500 points after the dow already lost nearly 900 points this week in particular, focus worrying levels of new coronavirus infections data from johns hopkins shows the average number of new daily cases in the u.s. has been just shy of 70,000 over the past week that's a record. in addition, the covid tracking project says that

hospitalizations are up by 5% or more in 36 u.s. states meanwhile, chicago is shutting down indoor dining and across the atlantic, germany is seeing another record for daily cases. the country is going to be closing restaurants, gyms, theaters for at least four weeks starting a week from today european markets are getting hit. this hour we have a big lineup of guests to talk about all of this, the virus spike, what it means for the global economy, lockdowns, what it means for your money and today's other big story, three tech titans testifying to d.c. lawmakers lots of i williteration. >> too bad it wasn't tuesday. >> anxious anchors put in high places, yes. >> before we get to that story and the rest of these, we have

to tell you about quarterly results out from big names on wall street. we'll start with boeing. adjusted third quarter loss was less than the street had been predicting revenue beat the street forecasts, too boeing also said it was targeting a work force of about 130,000 by the end of the next year that is additional layoffs from what had already been announced. the company started with a work force of 160,000 at the beginning of this year announced in april that they would layoff about 16,000. now you're probably talking about an additional 11,000 plus layoffs and, again, going from 160 at the beginning of this year to 130 at the end of next year that stock this morning up by .4 of a percent by the way, don't miss boeing's ceo dave calhoun he'll be here with an exclusive interview in "squawk on the street" at 9 a.m. eastern. what they're seeing in terms of the demand given the lockdowns that seem to be taking place again in europe today. let's also show you ups.

that company beating analyst forecasts on the top and bottom line as it continues to benefit from a surge in home deliveries because of the covid-19 pandemic that stock down by about 1%. ups's ceo will appear on "mad money" tonight general electric above expectations 6 cents a share. street was looking for a loss of 4 cents. ge said that it was managing through a difficult environment but added that it is on track with its efforts to contain costs, conserve cash that's cheering news on the street it's up by 5 1/3%. ge's larry culp will be on at 9:45. the ceos of google, facebook, twitter will testify virtually to lawmakers as pressure mounts on the big tech companies over issues like free expression on the internet and for a look at what we can

expect, let's welcome senator jon thune of south dakota. he's chairman of the subcommittee on communications, technology, innovation and the internet what will be the key things you want to hear or look into today, senator? >> well, thanks, joe yes, we are very interested in hearing from the tech ceos principally today about what they -- you know, how do they decide when they decide to moderate user-generated content on their platforms about that of late data privacy is a big issue and the anti-trust issue and concentration of market power in the hands of the countries and could get probed a little bit. that's a little bit off of the

country's jurisdiction how are they making that decision and why i think it's really important for consumers who use those platforms to know and there needs to be more transparency. that's one thing we're going to certainly strive for going forward and this section 230 of the communications act which gives them a liability shield when they do that is something that's under a lot of attack lately and is right for reform i have a couple of bills that would do that. we're hoping to shed some light on that subject today. >> into the future, let's say the government takes a light touch. what could these companies do? how much would it cost how many new people would they have to hire do you feel any sympathy at all for trying to and a half have i gate through these waters as a ceo of one of these companies, senator? it seems very difficult on how to satisfy everyone and it's

almost impossible to do it effectively. >> i think that's right. i am sympathetic to the challenge they face right now, joe, because there's so much it's such a proliferation of information and content on those platforms, but if they -- i think they have to make a decision are they simply a neutral platform that acts as a host for user-generated content or are they acting as a publisher we're hearing more and more studies of these big tech companies censoring information. i'll tell you, it's a concern on both sides of the aisle. they think they moderate too much it's time to take a look at section 230 and whether or not even if they're -- if they continue to have those protections under that liability shield, whether or not there should be some requirement that there be more transparency, that users actually know, for example, if their content is

being taken down why there ought to be some sort of an appeal process. all they're looking for here is transparency and accountability to the consumers out there this is also an issue of consumer protection but by and large i think what most of us want to find out is, you know, how do they go about this? how are they deciding when they make these censoring decisions or content monitoring decisions, why are they making those decisions? let's be transparent let's let consumers know exactly how they're going about doing it and giving them a process whereby they can challenge some of those decisions i think that's fair play i don't think that in any way steps on these company's abilities to continue doing what they're doing and doing it well. >> can you explain the antitrust concerns that you and some of your colleagues have and how you think that relates directly to this idea of censorship and relates directly to 230?

because i have to say at least by my mind, i understand that these companies have meaningful size and scale, but it's unclear to me that any regulation or breakup plan of these companies would fundamentally actually change the scale with which they have, if you will, in terms of the social media space that they would otherwise own. >> well, i think, andrew, that's a fair question, too in many respects a lot of people, the consumers who use these platforms in many cases choose to use them there's a question from an antitrust standpoint about the interlocking agreements and contracts and exclusionary contracts, for example, that google has on their search engine and whether or not other types of competitors might be blocked and consumers not have the option of choosing some other potential competitor most consumers, i suspect, would choose to use the google search engine i think from an antitrust standpoint, the question is is

there concentration of market power and are the companies using market power that shows the potential of other competitors. my guess is that's an issue the justice department is going to be looking at. that's more of an issue for google google controls about 90% of the global search market and so that's something that has been announced already the justice department is going to look into i think the antitrust issues have to do with whether or not there is concentration of market power, whether or not it's being misused. that's not the focus of what we're looking at today >> senator, but when you think about the market for news, and i actually think this doesn't get talked about enough in the context of social media, let's talk about the market for news because really what 230 is about and this conversation about censorship is whether news stories that certain people want to see or other people don't want to see are getting censored or not

i always talk about it in the context of a newstand. one newstand might carry one newspaper or magazine. another newstand might decide not to carry another newspaper or magazine. at the moment i would make the argument that as big as some of these social media companies may be, they do not have a block on all the news and access to every american, it's just not -- it is a way that some americans are getting news a lot of them are getting their news that way but there's logts of other outlets in terms of how they're getting it. >> that's true 60 poers percent got information acting -- if facebook were a newspaper, some other form of media organization, they would have editors making editorial decisions about what news people see. the platforms have argued for a long time that they are knew the

fral, a -- neutral. we found that's not true we had mark zuckerberg testify in front of our commerce and judiciary committees in 2018 and in response to some things that they were doing that we through oversight decided we ought to take a look at they found out it wasn't an algorithm driven sort of process, it actually was one where you had editors that were stepping on, you know, in some cases amplifying, in some cases suppressing content. we just think people need to know that. if they're going to act as publishers, that there be some expectation then that perhaps the liability shield that applies to them that they don't have, that other news organizations don't be have, that there awed to be some sort of a level playing field i'm not saying it should lead to anything significant in terms of

change although i do believe 230 is right for refoorm as i mentioned, i got a very balanced approach to re230rform it that gets to this issue of transparency so people know what's going on there. >> let's just shift gears. this is a lead story here. why north and south dakota are suffering the worst covid-19 epidemics, four to five times the weekly average per 100,000 does that concern you? what steps need to be taken? i know you're not governor, but can you comment on that? >> right no, i think that it needs to be -- it does need to be addressed, joe we've seen a significant up tick not only in cases but hospitalizations, deaths and things that for a long time we were somewhat insulated from i think in many respects, of course, we're heading into the coileder season, people are closer to each other, schools are open up.

we give people precome to now use of masks, social distancing, all of the things that stop the spread in a state like ours people perhaps got too comfortable with that it's something we really need to step up our game and make sure we're doing this thing that people can to the degree we can slow the spread take those steps until we have a vaccine. >> senator, we are out of time thank you for talking about different things, different topics and good luck to north and south dakota appreciate it. >> thank you when we return a lot to talk about this morning big-time market volatility selloff. what to expect in the market runoff straight off the firm's third quarter results. do take a look though at futures

right now. we are in the red. down all morning long. nasdaq looking to open down. the stocks leading the s&p lower this morning right now, whirlpool off over 6% norwegian cruise lines, others, akamai down close to 6%. stay tuned "squawk box" continues after this hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like... like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most plus $0 commissions

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your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save up to $400 a year on your wireless bill. with the carrier rated #1 in customer satisfaction. call, click, or visit your local xfinity store today. welcome back to "squawk box," everybody. the futures this morning have been under quite a bit of pressure right now looking at the dow futures down 400 points. we showed you the airlines suffering at the top of the hour hotel stocks tied to the state of the covid pandemic and any concerns about travel restrictions and lockdowns taking a hit hilton will ride down 2.9% mgm resorts down 3.5%. then there's the cruise lines

and we wait to see when people will go back on cruises, when it will be deemed safe. carnival corporation down 4.8% and royal caribbean down 5.2%. norwegian cruise lines down 4% disney down 1.75%. andrew >> hey, thank you, becky right now want to bring in somebody with an intimate view of the markets and the economy jon gray, president and ceo of the blackstone group reported quarterly results this morning. distributed earnings came in -- per share came in above analyst estimates. revenues beating forecasts with a boost from blackstone's emphasis on technology related investments. jon, great to see you this morning. i want to talk about your earnings but iwant to talk about them in the context of where they are and what you're seeing in the economy as we watch the market continue to be so volatile as we head into the election but also as we see

these continuing rise in covid cases around the world you own businesses around your portfolio around the world and have, therefore, what i imagine and hope is some insight for all of our viewers for what you think is happening and how you're thinking about it going forward. >> andrew, it's great to be here i'll start with the earnings we had really a terrific quarter despite the challenges out th e there. what we saw was strong performance in technicals. real estate up 6.4%. that was a reflection of exposure to technology, life sciences, renewables, logistics. the pivot we made has made a difference for our investors it's all about delivering for our investors. we raised another $15 billion in the quarter.

$63 billion for the first nine months of the year we got to record aum and that translates into very strong earnings, distributable earnings were up. the fee-related earnings we had were up 39% in the quarter it's a difficult environment we certainly should talk about that but the business has really rode through this storm quite well >> i want to talk about that but what i want to talk about, now that you have even more money under management, how you're going to be putting that money to work. let's just start with the portfolio companies. you have a famous monday morning meeting. take us inside the meeting this week, next week. what is the conversation about what's happening in the global economy? >> well, i think what we're seeing in the global economy, obviously, is the challenges from the pandemic continue, and that's troubling from a health care standpoint. that's concerning from all of that when you're seeing it from a

health care standpoint is a tale of two cities. it's like a hurricane that came through an island where on one-half you're seeing a lot of pain, that's in travel, meetings, businesses, entertainment, energy, retail. on the other half you see this technology area, zoom, netflix, all those areas that are doing well, consumer finance has held up quite well as a result of increased savings, also as a result of lower interest rates and then things that are really essential. the walmart part of the economy. that's holding in there quite well when you look at that, i think the key to say is what is short term in nature and what's longer term in nature and short term, i think the pandemic is challenging as it is, we know at some point we're going to get through this, and when we do a bunch of those businesses that are impacted will come back so if we're going to invest in those businesses or lend to those businesses, take a longer term view, realize you need

capital to get to what could be a difficult year or two, but we're going to get through this, and then think about the long-term recovery on the other side, are these other businesses really benefitting from long-term trends so we're saying we've got to look through this near-term environment that's always served us and our clients well and it's no different today. >> let me ask you given that we do have the election coming up, there's some prognosticators suggesting there could be a blue wave one of the things being talked about on wall street is whether actually private companies are going to want to sell themselves to capture lower tax capital gains rate in this calendar year if that is the case. how are you thinking about that, both as a seller and a buyer >> well, i'd say the focus for us, i'd say, is on the buying. the selling is really when it's the optimal moment in the market when we get good value for companies. we've seen a pickup in sales for us which has been a positive as markets recovered, but i think

it's more as we look out in terms of deploying capital, we are seeing some owners who say can we get a transaction done by year end so there could be a little bit of a surge of activity between now and the end of the year. >> and what do you make of the phenomenon known as spac, special purpose acquisition vehicle companies, effectively blank check companies to some degree are going to be competing with you. >> well, i think spacs are another evolution of the markets. it's a way to get synthetic with the market they become a reference shareholder. i think overtime we'll see spacs exist. it will look like ipo economics.

we had been seeing for a while a shrinking of public companies. >> you've been a long-term investor is the acceleration that's happening do you believe sustainable? the same goes for some of the cyclic calls there is a view that it's going to blow up from a pre-pandemic world. >> i think the trends are really

powerful the change in what's happening in goods being delivered directly from manufacturers to consumers via ecommerce will continue and continue on the strong path. the same thing in the media business where your things are going direct over the top. green energy is quite positive cloud migration. digital infrastructure life sciences. i do think they're real tailwinds. that's a reason why we've seen up tick in valuations. we've also seen it because interest rates have come down sharply. if you are taking a company that's growing quickly and you're discounting future earnings, it's worth more today. all of that said, there is froth in the market and where is that froth. it tends to be in companies that have limited to no earnings and tend to trade on sales and those are more volatile. there's more risk involved and people can -- there's more risk of loss as well.

i think overall the faster growing parts of the economy makes sense given the transfo transformation we're seeing. >> jon, we have to run but i have one final question. you've been working on all of these new esg projects, 15% reducing carbons firm-wideman date for 1/3 diversity on portfolio companies. is it changing the companies you buy? meaning not just what you're doing yourself, but are you changing what companies you might buy otherwise? >> i don't think it's changing the companies that we buy. i think we're trying to change the companies. we have a real multiplier effect because of the breadth of what we own and what we can do so i think what we can do is buy companies, change the way they deal with sustainability, change the composition of their boards and really be a force for good >> okay.

jon gray, we always appreciate seeing you look forward to talking to you. >> see you andrew. bye-bye. >> you bet coming up, congress preparing to question some of america's top tech ceos today. that's just ahead. we're going to speak to someone who knows a little bit about powerful technology. the co-founder of palantir just don't look directly at the orb, you could see saran you don't want to do that. much more "squawk box" after a break.

>> 2020 battle ground states brian sullivan will be on tap. >> just outside of kenosha county one that donald trump won by 250 points coming up after the break, we'll tell you why wisconsin matters why this county matters so much wh t heck that is. that's next on "squawk box."

that is a great shot, brian. just six days away from the presidential election leading up to tuesday focusing on the most critical

areas of the battleground states brian sullivan is on the road ahead of the vote. that is not actually a geodesic dome, brian. you need to -- what is that? que pasa >> i will get to that. it is part of fox con. that will give you a hint on where we are just outside of kenosha, wisconsin wisconsin was maybe the most important state for donald trump in 2016. kenosha county hadn't voted for a gop president since ronald regan back in 1984 donald trump storming back to take kenosha racine county where we are now and the state but he won kenosha county by only 255 points. now i was last in wisconsin about six weeks ago and a lot has changed in that time number one, unfortunately the

number of covid cases has spiked the number of people who know somebody who's had coronavirus or covid has gone from about 30% to about 83% a lot of the hospitals have grown in capacity as well. and with that, donald trump's approval rating and chances of re-winning wisconsin seem to have come down, at least according to pretty much every poll you can argue about the spread some have him at 4 or 6%, some wider as a loss to biden, but we know this, coronavirus cases, covid cases have gone up and of course social unrest as well, refiring up outside of philadelphia that sparks memories of kenosha. guys, fox con also a big issue highly taughted corporate project by the president and the taiwanese manufacturer promising 20 million square feet and 13,000 jobs and as of now, this dome, which is like an i.t. center sort of globe theater and a much smaller warehouse are the only things that have so far

been built here. >> are they -- i mean, they're going to finish that and it's going to be -- that would be horrible to just have that sitting there, a shelf something. they're going to do it right, brian? >> that is going to be finished. this is probably most everybody's first look at it not quite done yet it literally got built there is a 1 million square foot facility new roads. bunch of power generation units. talked to some people and they said they expect this project will get done. fox con is the biggest taxpayer in the county. the odds of 20 million square feet and 13,000 jobs seem to be dwindling. i only mention that because this was a touted part of the trump administration this may mirror trump's chances as we count down to the election as well. as we noted, biden has taken a bigger lead in most of the polls. the polls, many of them were

wrong about wisconsin in 2016. i can tell you, joe, in the eyeball test, i've driven back and forth across the midwest, just the anecdotal signage test, it seems to be a lot of trump or maybe fairly balanced. we're going to be later on today in kenosha we'll be there to tell that story. talk to business owners about how they are trying to recover, not only from growing covid cases obviously but from the shooting of jacob blake and unrest little kenosha county, k town, guys, taking an outside role in 2016 and maybe 2020 as well. >> forgot about -- that's right. yeah kenosha. that is absolutely right brian, impressive looking structure. if you see that like up in the sky, you need to run because there are slimy things in there coming down in space ships going after -- get out of there if you do see that. >> you know, i think, joe, first off nothing would surprise me

this year. everything comes back to the simpsons i'm going to quote the great line, don't blame me, i voted for kodos. >> that's good that's good. you're fast. you were ready with that thank you. thanks for the shot. we like that, brian. >> dave grogan. >> really? grogan >> it looks like epcott. >> it does look like epcott. >> it does look like epcott. you're right >> yeah. little greener, but epcott. let's talk more about the election, the markets and volatility, all of this leading up to it in the post election economy. joining us for that is glen hutchins north island chairman. glen, when we spoke with you last we were still looking at the potential stimulus bill making its way through washington now the senate has left and there's basically no chance of anything getting donnie time soon most people say it's not likely

to happen until after inauguration for whoever wins this election and when a new congress is seated what does that mean for the economy? >> it means it will be in a state of stasis between now and when the lame duck occurs. i certainly hope that they get something done in the lame duck. i think we need about 2 trillion in stimulus. it should be targeted largely in unemployment i would put the unemployment supplement back in as i did before around $300 i would make sure it's been extended to people who have been laid off, part-time workers, gig workers, i would focus it and have a fair amount of money as well on small business and get it right i would target some money for state and local. >> that's what's going to be

necessary. >> that all means we're still down at a little over 10%. that means there was about a point or point and a half of growth >> what about getting something done in the lame duck? is that just the idea that the budget is going to have to be dealt with on december 11th or just because you think the issue will be much more in your face at that point that something is needed >> well, i think the politics will be out of it. the election will be behind us and all it needs purportedly is 13 republican votes, 47 democrats are for it and the capability to get that support stronger post election

season this would be the first order of business, i think, and i would strongly urge it and i also think it's the responsible thing to do and being in the post election seas season that is looking at these big tech companies to try to regulate them in some manner potentially taking 230 out of the mix so that they would no longer be immune from the sort of regulations that publishers face in this country a, do you think that is likely to get passed and, b, if so what impact will that be? >> i don't know about the politics of that vote, but i think there needs to be a whole look at the -- what's called the platform companies, google, amazon, facebook, et cetera and the regulatory environment in which they operate.

there are network companies regulated and treated. that's a good thing to look at not as much talked about and progressing and having national policy on net neutrality we've lurked back and forth into administrations between two completely different approaches on net neutrality. that needs to be on a bill, too. i have some thoughts about that if you want to talk about it and finally i don't think there's a need for new antitrust doctrine but we need to look at how existing antitrust laws apply. >> glen, that's pretty reasoned and, you know, fairly well

thought out but the type of things that we hear from the senate on both sides are not really that calm, cool, collected. they're mad about things on both sides of the aisle and there's probably going to be something that results from that what do you think the odds are that cooler heads prevail and that maybe more thoughtful legislation gets put in place? >> i think first of all it all comes back to the fact that we're six days away from election and cooler heads won't prevail until that's over. that's on the minds of all of these politicians so i think we have to understand that some of this is political theater that we're seeing and then whatever -- whichever way the senate comes out to get 60 votes to get something done will require the republicans reaching into some part of the democratic party or the democrats reaching into some part of the republican party and that means that's how the senate was designed to work, that's how the filibuster operates and that

means any legislation that comes out has to be relatively reasoned i'm not concerned about them getting this wrong what i'm more concerned about is what we've had in washington is them getting nothing done and then we're in the situation where these three big issues, in fact, the technology industry are left unresolved. that would be a bad outcome. >> you know a thing or two about fintech. it will be the biggest ipo ever at $34.5 billion >> i think it's fascinating. as you know, i was an investor in alibaba.

>> no idea it's also part of it. one interesting piece, i'm interested in digital currencies this year we're on a pace to settle $1 trillion in stable coins and 2 trillion total if you include bitcoin and aethereum. people just completely missed that because they're not focused on this. you saw recently where paypal announced it's going to enable 300 million to buy bitcoin paul tudor joins made bitcoin. these are happening a pace

the other thing i would note is your interview this morning with the ceo of akamai which was very good he talked about the potential of 5g, at&t investing very broadly in 5g. the device companies coming out with 5g devices and as the ceo of akamai outlined, there are a whole bunch of technology groups building out that's a whole fascinating thing going on that we shouldn't lose track of as we have an appropriate focus on the pandemic and the election. >> never enough time because i wanted to get into all of those different issues with you. we'll have you back again soon great to see you we are watching the market continue to sell off with the futures down by 600 points thank you. great to see you. >> be safe. >> okay. you, too. when we come back, palantir co-founder joe lonsdale when the

big tech testifies before tus wnss furedo, dow down 600 points stay tuned "squawk box" will be right back.

we're on a trajectory to look a lot like europe as we enter the month of november. so i think things are going to get worse. >> that was former fda commissioner dr. scott gottlieb earlier on "squawk box." jim cramer joins us right now. jim, the markets have turned a little weak, down by 626 points below fair value you think this is because of what we heard out of europe today? >> yeah, i just think that there is going to be a call for a lockdown the likes of which we have seen in chicago and i think that the lockdowns without the stimulus equals what we're seeing and i think it is a shame because had there been stimulus, we would then be focussing on earnings and earnings are pretty darn good, even if it means some might cutback. so it is almost impossible to avoid the european syndrome. if miracle werc merkel was talk closing bars and restaurants

with we're not going to do that here because we believe in a version of freedom that is not available anywhere else in the world. it is the kind of thing where we do a stay in place voluntarily, which means that without being told or being paid to stay in place, it is going to continue to purse the numbers hard to buy a lot of stocks when you see the numbers. with stimulus, we would be tempted to take -- to own some of the stocks. right now i think everyone is fearful. >> glen hutchens just said he thinks a lame duck congress will be forced to act and do something in terms of stimulus you think that's the case, we get something done before inauguration day >> yeah, i think so. i think that there will be realization that it does matter in washington. what is happening in the rest of the country. right now it doesn't, it is just theater. but i think that when you see 14 million people laid off in hospitality within the next

month, it is certainly realistic to expect something will get done i think we're going to return to the market where digitization is in the works and hygiene works and stay at homeworks. and you can probably buy those stocks tomorrow, not today today is just a full blast off of europe and people are trying to figure out health versus work it may be voluntarily. because right now the statement out of washington is it is up to the states and so we have got a state like wisconsin making its own decisions and texas making its own decisions. florida making its own decisions and i think we all recognize that the founding fathers discussed this and ruled against exactly what is happening. then again, the constitution has been kind of relevant for the last, i don't know, four years good read. >> good read >> i would take that class >> constitutional law. >> yeah. >> we are looking forward to a lot of the big interviews you have coming up today including dave calhoun, a lot of things we want to hear about, boeing,

another company that is talking about more layoffs too >> you know what's funny, becky, whoever takes the most layoffs wins that cuts the stimulus whose stock do we like the most? the people that cut back 30%, who do we like the loeast, the ones that cut back 15% the companies that are being rewarded are the companies that slash the most people and send the most people home what are those people supposed to do? go work at just wings? >> it is the right question. we're going to be watching thank you, jim. >> i closed my two places, you couldn't make any money. now we follow chicago, everybody gets laid off. and even david won't go out to dinner david has been known to frequent inside dinners. >> we will be watching and thank you. we look forward to it. good to see you, jim andrew >> meantime, big day on capitol hill when it comes to tech but big day for tech in the markets as we continue to watch this sell-off this morning

want to bring in joe landsdale, founding partner, palantir, co-founder as well to the conversation the tech companies, joe, really want to talk to you for a moment, given what we're seeing in the markets this morning about your take on valuations for these tech companies in the public market, which of course have such a big impact on the private markets that you live in, i do want to read you a quote from david einhorn who says we are now in the midst of an enormous tech bubble, working hypothesis which may be disproven that september 2nd was the top of the bubble, and it is already popped what do you think of that? >> you know, the tech valuations have gotten to be quite high in the public markets that's why everyone is trying to do this now, the public markets, first time in a while, seem to be ahead of privates i tend to think this tech is like venture, some tech, it is vastly undervalued it is going to change industries and you see a lot of public

companies about standard value and similar to other times, like venture, not like these things go down 80% it is a risky thing. you better know your companies well >> real quick though, what is overvalued in the public markets in your mind and what is undervalued? >> you know, there is a lot of stuff tied to e-commerce brands in that people think because this year is going so well, they're going to keep doing that forever. i would be very careful to really only own platforms there, owning brands and owning parts of e-commerce and public markets. and a lot of stuff tied to them that has growth this year, won't repeat next year, hopefully. won't have this pandemic going on forever >> on the issue of some of the big tech companies, we have twitter, facebook and google at this hearing today around this issue of 230

how much of an impact do you think this is going to have on any of these companies >> you know, the biggest impact it is likely to have is that these guys are likely to capture the regulation, make a lot of rules and make it so it takes people like me and others building companies have to spend tens of millions of dollars on lawyers. the thing i'm most worried about first of all is whatever rules we put in place, we make sure it doesn't screw up the startup ecosystem and make us have to hire 20 employlawyers to start a company. that's number one. >> so interesting. so you don't think they get broken up then >> well, this hearing is not about monopolies so much this hearing is about section 230 and the shield and what the rules are there. mark zuckerberg is stuck in a hard place i had my disagreements with him but he's being screamed at by the left and right right now it is complicated what you censor and what you don't censor

i think i is nihe is naive. i think no censorship can be neutral. this is a philosophy question more than a tech question. people need to study the philosophy of free speech. the obvious answer is there should be more transparency require me requirements, but when you put in too many requirements, you make it hard on upstarts and lock in big companies. you have to spend $100 million on lawyers to do this, no one will be able to compete with them. >> right joe, but let me ask you, should it just be an open platform where anything goes, and you have been a libertarian on these things to some degree in terms of having access to both sides but at the same time, these are private businesses the other side, shouldn't they be able to make choices? >> you know, my thinking is evolved open this to be honest as i look at our society and what is going on these really are public squares.

i try to get the word out and things i care about. it is great to be able to come on cnbc and talk about things. if you look at twitter and facebook and google and control, a large amount of our conversation, i think it is very scary to live in a democracy, you have the public square being censored, taking away the principles that our founder had when we started this country, we want to allow free and open speech wherever it comes from and not have to base it based on what the elites think is appropriate. >> and therefore you do what 30 seconds >> yeah, therefore i say you modify section 230 you put in for the very large companies only, certain transparency requirements and if they -- if they show they areg going to be censoring certain things, it should be clear where they are taking publishing opinions they have the same danger you have going on tv and talking. so i think section 230 has to be

modified to force them to be a lot more neutral and more transparent for companies that size >> okay. joe, great to see you. we'll continue this conversation, debate hope to have you back very soon. dow continues to sell off 615 points looks like we open up, nasdaq off as well. join us tomorrow, "squawk on the street" begins right now good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are solidly red as the covid spikes in europe and the u.s. erodes sentiment, the finger pointing has begun as to why pre-election stimulus failed q3 earnings for the most part the bright spot today. road map begins with covid cases surging. investors fear an increase in infei infections could halt the recovering economy. >> the ceos of both boeing and ge will join