"squawk box" begins right now. ♪ welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. u.s. equity futures are under pressure once again. dow futures right now indicated down by about 228 points, more than the 140 they gained yesterday. s&p futures are indicated down by about 30 points nasdaq indicated off by about 160 points and the nasdaq was the big winner yesterday, it was up about 180 points, a gain of 1.6% but on this last trading day of october, month to date the dow is down by about 4%, s&p down by about 1.5% and the nasdaq is up fractionally however, it has been an ugly

week for stock du do dow down nearly 6%, s&p 4.5% and nasdaq more than 3%. oil prices have taken a big hit too. we've been watching that all week there has been more volatility there as we've seen. but wti is down to $36.34 after being around $40 earlier in the week treasury market, you will see the ten year note is sitting right around the yields that we've been watching. 0.82%. we've been in between 0.7 and 0.8 and we're pushing a little bit above that this morning. guys, i will say the momentum this week has been a little concerning particularly with two stories that juchlg jumped out the reuters poll that shows 4 out of every 10 supporters both of president trump and joe biden say that they will not accept the results of this election if

it goes against the candidate of their choice and the second was walmart saying that it will be taking guns and ammunition off of its shelves because they want to make sure if there is any civil unrest, if anybody breaks in, it is not there for the taking. and those two things together immediately sit back and say, wow, where are we. >> each side would push to anecdotal evidence being capable of it. the right would say look at the cities cities, the left would say look at crazy proud boys or whatever. so both sides have something that they could point to where it wouldn't be totally out of the question and i guess the closer it is -- there are people saying the market has been weak not on either outcome, but nes closenes that it is seeing in the senate and the presidency

>> not accepting the election results is the scary thing >> all bets are off, covid and trump and everything else trying to figure out election and incumbents and markets 34% gdp. all bets are off >> but i think that walmart's decision yesterday to me even beyond just the polling issue of whether people would accept it suggests that there is a real concern about civil unrest in this country and at a level that i don't think i had taken into consideration. i think i understood that, you know, psychologically there are people who won't accept the outcome, which is always going to be the case and it might have been even a bigger case this year but i don't think that walmart does these things without doing their diligence, being educated and clearly suggestions clearly being made to them i imagine by officials and security experts

and others would suggest to them that they should be thinking that way and that is scary. >> the other thing is walmart is -- >> if trump win, there will be -- there are people ready to go that have been out already. i mean, you know, in the past six month, they have had a full calendar of events and protests. and if he wins, that is definitely going to happen >> that is why the walmart news caught me by surprise because when we were watching stores getting broken into during some of the civil unrest over the summer, most of the time it was the target stores. i don't recall seeing walmarts getting broken into. but that was what struck me too, this is broad, they are everywhere i guess i can see the concern

and they want to be safe rather than sorry but it did make me sit bank and really think >> i'd also suggest that looting is a terrible thing and should be condemned and is criminal most of those looting events didn't seem -- i mean, there were dangerous protests obviously, but the idea that people would be, you know, stealing guns to go do real things, i think it was a different level. >> there were store employees who are with wer-- who were und attack >> there are 300 million guns already, so you won't get anymore. and most of the people that have guns have ammunition, more than they will ever use so this is a step, but if it will hit the fan, there is enough -- you know, there is enough already out there we live in unbelievable times.

2020, you know what, it is not over yet go 2020. so i wouldn't take anything off the table. but tech stocks are easier to think about, aren't they >> let's talk about tech stocks, tech earnings. and hope that there is not a revolution in the meantime let's hope about some of the biggest market companies. >> reporter:ing, they did report last night apple, amazon, alphabet, facebook representing more than 20% of the s&p 500 joining us to break them all down is joe terranova. joe, why don't we walk through each and maybe we should start with apple earnings and revenue topping wall street estimates, but the company didn't give any guidance you did see the stock take a little bit of a hit here, or horn just a little bit

more than just a little bit. my take is of course people weren't going to be buying these phones ahead of the new phones >> yeah, and i would agree with that i don't understand what the surprise is here maybe a little bit of a surprise in the sense that geographically china was down 29% but i think that the runway is going to be different in terms of purchasing these new iphones. in previous years, you basically saw the bulk of the new purchases in one specific quarter. i think that this is going to play out throughout the duration of 2021. i think that it is a much longer runway so, yes, stock pulling back here full disclosure, i own the stock, i have no desire whatsoever to get out of it. i'm preparing to hold it if there is a little bit of a correction and throughout the remainder of 2021 because it is a 2021 multiquarter story. >> do you believe by the way this is a true super cycle i'm becoming a little bit more of a skeptic of the super cycle idea in part because i'm becoming more of a skeptic that 5g is really here and therefore

the need to upgrade may not be as acute >> well, do you believe that 5g is perfect in its current form i don't. i think 5g will get better over time i think the experience related to 5g in particular for the consumer will have to get better over time. maybe for corporations 5g will perform -- >> 100%. but the issue is that i think there was an expectation six months ago that apple would release a 5g phone, the network was going to be there, everyone was going to upgrade to these phones because they would want to get on their 5g network now if you get a 5g phone, you are looking at a man tp trying find the one corner and make sure that the leaf isn't blowing so that the 5g works >> that is an excellent point. and again, i think that is why the buying intention is going to be spread out over multiple quarters there is also the presence of

covid and i think on the earnings call, that was mentioned specifically do consumer behaviors change because of the rise in cases as it relates to covid? i think certainly here in the united states. dwron that you will s i don't expect that we'll see the lockdowns that you see in europe, but i think that there will be some form of se self-regulation self-regulation for individuals and what does that did for the holidays i think people really have to think about the holiday quarter. is it going to be as jeff bezos suggested an unprecedented holiday season or are consumers going to kind of step back and say, hey, let's take a look at the economy and see if we're pausing? >> let's talk about amazon you just mentioned jeff bezos. profit and sales there both handily beating estimates, but the current quarter guidance was wide just so wide and giving

investors a little bit of pause saying that they expect $4 billion in costs tied to covid as well. so while it may be a holiday season, there is going to be costs embedded in there for amazon to fulfill them >> yeah, so while aws -- let's start with that. sales were up 29% to $11.6 billion. obviously that is an excellent performance. but the profit margin was a little weaker than anticipated so i think post-earnings, the focus is on the moderation in the profit margin and as you cited, the $4 billion covid d covid-related expense. similar to the s&p 500 companies that have already reported a classic example of good news and bad price action and what i mean by that, there is not much here within the amazon report where an investor would say i need to liquidate my

holdings of amazon in fact these are strong numbers that are being reported. but what you are really doing is you are resetting the expect tagss tagss you move forward i think it is a pause that will ultimately refresh for the business >> let's flip it over to facebook that company of course has been in the headlines for quite some time now but let's talk about the economics of it. revenues and earnings beating the street, they were helped by a strong ad spend, the social media giant warning though of a significant amount of uncertainty for the coming year. that stock off about 2% this morning. what do you make of it in. >> yeah, similar and i heard the comments before with the conversation with becky, joe and yourself surrounding the potential, the fear, concerns as it relates to siflg civil unrest and i would suggest that ned segal who will be on with you

later this morning is really going to offer some insight towards that he did mention specifically on the earnings call the potential unknown related to that very unfortunate circumstance if it were to unfold but for facebook, again, consistent to what ned segal suggested, very uncertain environment moving forward i think the surprise for facebook, i don't know if you share this, but the july boycott, i think there was an expectation that we would really see a detrimental impact but i think on the other side of this as kevin o'leary has often talked about, small businesses, it is so critical to conducting your business that you remain advertising on facebook. i think it is reflected against in the strength of the numbers presented there. >> and then finally, let's talk about alphabet, the parent company of google, also a

company that is under pressure by regulators. looking to be a winner this morning. the company beating the street on the top and about the line. google parent seeing a return to growth in the digital advertising space and youtube exceeded the $5 billion mark for ad revenue for the first time, a milestone for that company >> 32% increase. extraordinary. and this is the one that i think the street will focus on and say it has been the underperformer year to date i think that it is up 16% when you obviously look at some of the other mega cap technologies that are up 50% or 70% in the case of amazon be. what you will see is you will see the analyst community begin to raise price targets on alphabet certainly i think already this morning goldman sachs has gone to 2250 from previously 1990

so this was a strong quarter going hogle cloud performed wel. and i think this is the one stock that investors will look at and on the decline overall for the markets itself maybe allocate some money out of some of the other mega cap technology names into alphabet. >> and final question for you. i know you have apple in your portfolio, but if i told you are only allowed to own one of the four that we just mentioned, and we'll have this conversation 12 months from today, who is the winner >> i'm glad you are not mentioning twitter because i also have twitter in my portfolio that is my biggest problem today. but to answer your question, apple. apple is the one that i currently hold in the portfolio, the one that i have the confidence in. and i also think the regulatory scrutiny that lot of mega cap technology is going to be facing over the coming 12 months, i think microsoft and apple, and i

do own microsoft as well, i think that they will both feel the least amount of pressure, scrutiny and therefore pressure on their share price because of what we'll be seeing from washington, d.c. >> really? because didn't y because don't you think even the efforts around what is happening to google will have a -- could have a row found impa profound services if in fact google is not able it become the default search engine and pay to do such a thing on a service like apple, and if apple's quote apple tax if that is what you want to call it, i call it a service fee that is built in, but whatever you want to call it, if that has to either come down or be changed, doesn't that change the dynamic? >> not fully insulated from what the outcome might be from regulatory matters in washington, d.c. i would agree with you on that

but listen, we're not breaking up apple, are we we're not talking about breaking up that technological giant like some of the others so i think that they are better positioned and i think that they have better relationships with washington, d.c. than some of the other mega cap technology names. >> okay. taranova, great to see you i don't know what you got on that chart behind you. you got a whole white board. we'll do a little white board later with you >> i need it all right, coming up, futures are off their lows for the session, but i don't know, monday, tuesday, wednesday, thursday, friday, and one day where we kind of are holding on to our chairs. pointing to a lower open as we head to break, check out some of the biggest movers from the morning session here

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if you are just waking up, check it out, futures in the red once again it has been a rough week for the markets. you know that if you have been playing along. enough of the trading after what we've seen for the week dow down nearly 6%, s&p by 4.5% and nasdaq by more than 3%. you can see right now the dow futures are indicated down almost 300 points once again tomorrow an up day yesterday, but the give back yesterday is more than that some of the biggest nasdaq

losers this morning, seage nechl n, cadence stein and apple. acti activision blizzard and also micron >> investors are trying to figure out how to position their money. almost started laugh, dom. democr dom chu joining us with more we have no idea on the election. senate, biden, trump, i mean -- so that is tough enough. even if you did know, you have no idea what the market is going to do in relation to what you think you though so you could be right about the election, right about the market reaction and wrong about the election and -- so i don't envy you. but i think that you could buy solar maybe and renewable stuff if you think that biden will

win. maybe that would -- maybe sectors you could do but overall market stuff seems very difficult >> that is the whole point, remember the dart board approach back in the day, just throw darts at the "wall street journal" and pick which ticker comes up you're right, but there are certain themes that develop. certain things that you can say hey, if there is more spending on fru infrastructure, these stocks would do well. the folks at cnbc pro which is our subscription premium service, and this is a shot out, this is a story on cnbc pro right now, the team there looked at analyst reports from like barclays, goldman sachs, credit suisse, you name it. and we tried to put them and distill them into certain themes that are happening we wanted to put proeblt numbers a ploeb probability numbers. and these are the ones there raymond james. so what happens if there is a blue wave?

biden wins the presidency, democrats control the senate and house. raymond james says it is a 55% chance according to them that that could happen. if that were to happen, to your point, what sectors do well? it could be financials, industrial, tech, materials, utilities. and the big media and communication services companies don't do as well social media perhaps getting more targeted heavily there. and another scenario, things just stay the same raymond james says there is a probability that that happens, but it is more about 30% chance. if that were to happen and president trump stays in the white house and the republicans continue to control the senate but the democrats control the house, you will see com services do relatively better, energy do relatively better and industrials do relatively better, meanwhile technology and materials do worse and then there is another scenario that is not as likely, but it is a 10% chance that maybe we see vice president joe biden win the presidency, but

then you have a republican controlled senate. they say it is a 10% chance. if that were to happen, media com services does okay relatively well, energy doesn't do as well, he retail doesn't c did do as well, but tech does better there are so many different scenarios. and again the rest of the storyc have you talked about the buskin bakery in cincinnati their cookiesdicted th last nine winners. >> when he said buskin, i jumped a little are you going to cincinnati? there is graters, skyline, montgomery inn rib, certain

things that sarah can confirm. but yeah, the cookie thing, cincinnati -- >> 23450inine winners predicted >> last time i was back there, i will tell you, be i was at the montgomery inn and i had ten people come up and say don't believe the polls. do not believe the polls and they were right. i don't know cincinnati though i think in all of ohio, that is about as conservative as you get, you know that. so i don't know if we can read anything into that for buskin bakery but if you don't win ohio and florida, i think that you will go home. >> here is the thing, remember, it may be more conservative, but those cookies also picked obama twice, right >> that is weird >> it is weird, right? just are saying. >> yeah, that's weird. although ohio went for obama both times and ohio went for -- yeah, didn't go for romney i mean, romney, missouri i think the state -- poor mitt

we got to go see you later, dom i was listening to some indy rock yesterday the group's name was rip momney now, that is interesting that they decided to pick their name -- look them up, pretty good >> okay. we'll be on spotify during the commercial break when we come back, chevron and exxon both posted quarterly results. oil prices on track for their second straight month of declines on virus spread and economic fears take a look at yesterday's winners and losers in a few moments, rackspace technology will enter a

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coming up dr. scott gottlieb

on the spread of the virus that we're seeing u.s. equity futures at this hour are down triple digits, more than 200 points but off their lows nasdaq down 132. s&p down 28. going to be a week where the averages end lower looks like. stay tunled. d. sx stay tunled. ed ap every morning to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works. if you're concerned about the environment and climate change,

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the earning parade continues this morning honeywell just out beating on the top and bottom lines it is $1.56 profit per share 7 cents above estimates with revenue coming this above forecasts. the company is seeing strong growth it is saying in sales of personal protective equipment. and it is time for our executive edge as well mcdonald's facing lelg actigal n after being hit by a class action suit of black franchise owners accusing it of racial discrimination for steering it for underperforming stores this was filed by a firm representing 52 black former franchisees who filed a similar

lawsuit in late august mcdonald's says that we take the allegations in this case very seriously, mcdonald's is a values-led organization committed to equitable opportunity and the claims made by plaintiffs fly in the face evof everything we stand for. and numbers of those testing positive for covid-19 across the country continuing to spike. joining us with more is dr. scott gottlieb, former fda commissioner and cnbc commissioner doctor, i think it is the numbers that we're seeing on a daily basis that are the hoths concerning earlier this week we crossed 80,000 cases a day for the first time and now overnight we saw 90,000 cases in a day. i know you said that we are looking at europe and that is us in three to four weeks, bruh i want kerr if now the uptick

brings the prediction forward a little bit no, i think that is where we're at we're starting to find ourselves on a steep slope of the economic curve. i think that you will see cases accelerate rerow duks numb reproduction number is greater than one and so doubling time has fallen to about 80 days so it is starting to accelerate. i still think we're probably three weeks behind where europe is if you look at the proportion of infection they have over the hospitalizations, the numbers are astronomical if we get to those levels of like france and italy and spain, it will press our health care system across the country. but right now, i think that we're starting to see cases accelerate again, i said that i would be surprised to see us hit 100,000 cases today or tomorrow. if all the states report, and

that is a question, we should be well into the 90,000 range today and maybe hit 100,000 unfortunately. now, obviously diagnosed cases can just one part of the story we're seeing the positivity rate increase as well, which means there is more infection out there that we're not turning over >> yeah, i saw that in new jersey at least the positivity rate for those tests came back north of 6%. i know that you will see we won't see the lockdowns that we saw in the spring, maybe see shutdowns in targeted areas. but what are the metrics that you should be looking for in your state or your community to tell you that this is a dangerous area >> positivity rates is the first metric you want to look at some states like south and north dakota, their positivity rates are astronomical if you have rising infections r, that is a worrisome sign

it depends on the leadership of states the pandemic plan envisioned the litigation being on a rolling basis. you would take steps when the epidemic came to your part o the country. the reason that we inch pmplemea more uniform approach back in the spring with the national stay-at-home recommendation, it wasn't an order, was because we didn't really know where the virus was spreading. now we have good testing so we can know which states have denies epidemics and which states don't i do fear in this winter we'll have spread really across the country. at some point we'll reach that threshold. maybe the northeast will be able to keep it under some level of control because of the policies that they have taken and they have had a lot of infection and people here are being careful. mid-atlantic so far has maintained some control. so there may be parts of the country that get spared on a

relative basis but it will probably spread everywhere >> "wall street journal" had a story how germany is rolling out plans to start vaccinations by the end of the year so that it will ready to go as soon as they get approval for it. what are they doing that we aren't doing >> well, we have plans in place it roll out the vaccine. i think the regulatory process will allow for a very staged industry of the vaccine in a staged fashion so hopefully if things go well, and i'm on the board of pfizer which has a vaccine in advanced well, we'll be in a position to start making it available this year but it will be made available to a high risk population probably elderly patients, maybe with one or horrific factor, maybe certain frontline health care

workers. and even people who get vaccinated this year won't have protective immunity until 2021 so the vaccine is really a 2021 event. it won't offer immunity it anyone really in 2020 in time to affect the epidemic over the next two months. in january hopefully we're starting to round the corner and looking at a more better summer who will be coming off a dense epidemic >> we haven't done very well at least so far in this country of kind of protecting ourselves around holidays. you see spikes after memorial day, after july 4th. we have lal wean thhalloween thd what would you you tell people around trick or treating, around gatherings i know you said that you are not planning to having a thanksgiving gathering this year but what do you think about halloween? >> people need to be careful look, kids are at less risk than adults at both transmitting the

infection and having a bad outcome, but that doesn't mean that they are impervious to infection. and as we try to preserve the ability of kids to go to school and learn either at home or in the classroom, having big parties around halloween doesn't seem prudent to me we're in the sort of final stages of the a acute phase of this pandemic. we'll still be grappling with covid next year, but the being a ki acute phase really was a 2020 event. so we should try to remain vigilant and be careful these last two or three months so i would say the same rue denies around halloween and thanksgiving we've protected people for a long period of time. we've got two or three months to go here that we need to be careful. >> doctor, can we just talk about your time line because i have to admit that i'm confused, we hear a lot of people with different views, the president obviously thinks that there is going to be a vaccine potentially even in several weeks. you've talked about it being an

early 2021 event and you talk about that if we can just get through the next two months, i think that you are suggesting come february, march, april, the world will look a lot better but then you talk to somebody like a ken frazier just yesterday on our program who really talked about vaccines being available at scale in his mind effectively the second half of 2021 which frankly therefore puts you into the summer and there are other people who have frankly even less optimistic views that you won't really have scale fwrakbasicall until a greyear from now. and so when you talk about these sort of periods, talk to us about how you are thinking about that and also what it ultimately means to behavior and masking. because that is a huge part of the sense of normalcy. >> yeah, i heard ken's comments yesterday. let's me talk about the epidemic curve and then the interplay with the technology. we'll have a dense epidemic over

the next two months to ten weeks. we've seen the curves before they go up, down how sharp depends on the policy actions that you take. in january, at some point we'll be coming down an epidemic curve. we'll be rolling into the summer, the summer and spring will provide somewhat of a back stop against spread. this is not a virus that spreads aggressively in warm months. and at the same time we'll be rolling out a vaccine. ken is right that even if we're successful with the trial, be won't have a vaccine for general use probably until the second half of 2021 but in the interim, fda will be authorizing the vaccine for successive populations at first elderly, maybe over the age of 65 with one or horrific factor, then maybe everyone over 65, then maybe over 50, and they will walk down the risk benefit

continuum. so people will start to get protective immunity from the vaccine starting at some point in early 2021. so let's just say we authorize it at some point in december that is an optimistic scenario takes about a week to roll it out, people start getting vaccinated, even by mid-january because it will take time. getting a vaccine initially will be a lot like voting, you will have to go to a seb place certat a certain time so that is the first dose. and you need a second dose so let's say everyone gets the second dose by some point in mid-february takes a week or two for the immunity to kick in. so the first trafrnche really won't have immunity until february but once it starts kicking in and you vaccinate these successive group, you are taking a lot of high risk people off the table or reducing their

risk and you couple that with the therapeutic antibodies, that is a pretty good technological backstop against most of the acute death and disease that we've seen from covid. >> let's hope that is the case that is definitely something to hang our hat on and really hope for. dr. gottlieb, thank you. we'll see you again next week. in the meantime chevron's results are just crossing the wire they lost on a diluted basis 12 cents a share. if at it on adjusted basis, both better than anticipated. the company did this not because revenue came in better than expected, rev kneeenue actually missed expectations. but they did it based on tight management this is michael werth saying we remain focused on what we can

control. compared to last year's third quarter, or beganic capital expenditures and operating expenses were down 48% and 12% respectively so they have reined in capital expenditures 2340eb8 ener noble energy they just have taken over stock right now up about half a percent. but again, this is chevron really controlling its expenses and taking care of what they can in this environment. 'lta me outh in a little bit as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will...

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penn national gaming said at the end of the quarter and improved financial condition, thanks to reopening properties and the reopening of the app everybody in the world should

have stopped gambling and bought penn national stock a year ago, and they wouldn't know what to do, would they, jay? they would be like wait, i have more than what i started with. for most gamblers, it would be a totally unique experience. i got excited thinking about the different conversations we can have because you're multichannel and there so many variations let's start with the old style legacy stuff so you got real brick and mortar properties you got 41 and 40 are open tell us about how you open them and how it's going. >> well, listen, joe, good morning. it's been a real roller coaster of a year. we went from beginning of the year, we announced our partnership and investment in barstool sports in january, very well received throughout the investor community, and it wasn't but a month and a half later, covid hits and we were mandated to shut down the entire company. since that time in march, we

have been able to slowly reopen a number of states starting in may and june, and by the time you got to july and august, we were able to reopen all of our properties but one we have one property in new mexico that has not been able to reopen now we have 40 to 41 properties. the trends have been interesting, and very very consistent, very stable, where visitation is right around 70% of what it was pre-covid what we're seeing is when customers come to the casino, they're happy to be out of the house, doing something that's fun and entertaining and safe, and they're spending more time, and spending more money. when you take it as a whole, revenues were down in the third quarter 11% year over year, and ebita was up 17% we have made a lot of adjustments obviously to the business model and thinking about efficiencies, and really get sort of one chance in a lifetime to reimagine your business, and everything that you do, and how you do it, and so as we reopen these properties, we have been able to do it in a different manner,

really reliant on technology, and different thinking around how we run our businesses and the offerings and the results have been really good since we've reopened. >> we have had lots of conversations about sports ratings and, we have also seen how sports betting has exploded. i'm starting to hearing that tv ratings aren't the complete indication of how you should measure engagement in sports now. does that answer why betting is still so strong versus ratings being down a little or a lot >> joe, there's so many variables to consider, it's hard you have the stacks right there in front of you, and what do you make of that during a year where all of the sports have been sort of truncated into this short time line, and you know, you had nba and nhl, and football and baseball actually all happening on the same day at one point so i think everybody's sort of adjusting to what is normal versus what is now, and am i accustomed to watching baseball

at this time of year or watching basketball this time of year you've got football games on tuesday night. it's confusing and there was a day the other day, eng it wi tht was tuesday, i don't remember having a major sport in the last two or three months. i don't know what to read into that from a sports betting perspective, we launched our app with bar stool in pennsylvania, on september 18th, and we have had tremendous results we're averaging over $2 million a day in sports betting handle or total bets placed on the sports betting app, and spent virtually nothing in external marketing because our partner at bar stool is so amazing at what they do with their audience. their audience is very loyal they taught their audience in a way that just creates that loyalty and following and, so we have been able to generate a lot of interest and a lot of bets and a lot of downloads we broke every record in the history of sports books online in he did it of downloads and registrations and first time deposits on our opening weekend.

and we spent zero in advertising from a tv or radio or traditional linear stand point i don't know what to tell you besides people are still very excited to watch sports when we're on they're trying to juggle which sport to watch, and definitely interested in betting on sports. >> are you positive in the next year that you're just going to see multiple states join in so that all those new markets will be open for you? >> well, i can't say positive because it's not in my control there are a number of initiatives on ballots coming up next month in the state of maryland, the state of louisiana, and there are a number of other states, ohio, massachusetts, kansas, missouri, that are all talking about legalization of sports betting, so we're going to do our part. we're ready to go, next year is going to be a busy year for us for sure. >> this should be a part one of a five-part series, when you come back, i want to talk about all the stuff with bar stool we can talk for a half hour just

about, well, you know, everything that's going on at bar stool, and all the personalities and everything else over there, and the ancillary businesses that you're generating anyway, thanks, joe, or that's me thanks, jay. i read the teleprompter, it says, joe, and i caughitt jason snowden, thank you. coming up, we're going to talk tech stocks and the broader market selloff

good morning, and welcome back to "squawk box" onc cnbc. i'm andrew ross sorkin, along with becky quick, and joe kernen take a look at u.s. equity futures ahead of the market open looks like a down day, at least that's how things look to open, down about 150 points. nasdaq off about 95 points, and the s&p 500 off 61 points. we have all of the tech earnings late afternoon yesterday which i'm sure we're going to talk more about and more numbers coming in this morning joe. >> yep, 140 points is not 500 points that's where we were earlier anyway, not during the show but at some point overnight. that has come back quite a bit after a tough monday, tuesday, wednesday, and a small bounce yesterday, but let's see, the pressure on the futures comes

after a number of big tech quarterly reports. we'll get to that in a minute. first, diana dianahas more. >> the mortgages and covid related bailouts got bigger again, back over 3 million since the start of the month this is 5.7% of all active mortgages. now, government and private sector mortgage forbearance programs allow borrowers to delay monthly payments for a year in three-month increments the number of mortgages up 15% in october compared to november. the borrowers extended their plans. 33,000 new plans were started just over the past week. 50,000 borrowers did come out of the bailout. that's the smallest number since the recovery began more than a quarter million borrowers are in plans set to expire this month. we're likely to see more extensions

the fha is seeing the largest share of loans in forbearance, followed by private label or bank held loans. the smallest are loans backed by freddie may and freddie mac. mike. >> diana, thank you very much. a little bit of a bounce we have seen the last little while in the futures it's definitely a highly contested area in the market and the s&p 500. we pointed this out yesterday and it still remains relevant. this area not too far below where we closed last night 32 and change. look at all the things it encaps latelies he -- encans lates herpsulates he. are we seeing any confirmation bond yields are holding up right now. this is kind of the trench that the warfare is happening over at the moment, and then take a look, since the market peak at

september 1st, cemeseptember 2n. significant losses before yesterday's reaction to earnings and the average stock, equal waited stock, and equal waited s&p, it has been about the crowded megacap names melted through august, have been mostly responsible for the market cap coming out you can take that one of two ways, the leadership group that got us to new highs is flagging and tired and doesn't look like it's actually regrouping enough to make a new run at a peak. however, the average stocks doing okay and maybe it's a less concentrated market from here, guys. >> it's tough, mike. to really get the type of data you need on this side of the election to make really firm decisions right now.

it seems like all we're going to get -- >> stimulus. you got the gdp number we don't need stimulus but resurgent covid, and we're not getting any stimulus so after the election we don't know the outcome of the election. >> so stimulus was the binary trade. some people think it's the election outcome, do we have a clear election outcome others are saying i'm going to take my lead from the bond market and the dollar. i would point out again in the lead up to the 2016 election, the market was down nine days in a row. it was a similar kind of heavy nervous trade and people didn't want to make too many commitments and on the november 4th of that year was the friday. you were down a few percent just a week or so before. it's not unusual to have people go to a neutral corner so to speak before you get one of these events that's easy to be wrong about. >> thank you and diana might be gone, but

thanks to diana. becky? >> thanks, joe when we come back. do you trust big pharma to deliver a safe vaccine we're going to bring you the answer to that question from our cnbc all america survey after this break there's some concerning results there. we'll also be speaking to dr. atul gawandi, staff writer for the new yorker. bi mked earnings from exxon mol,art reaction, stick around, we'll be right back. hey, dad!

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welcome back to "squawk box" this morning, we are looking at futures pointing lower this morning. the dow looking to open down about 136 points lower nasdaq off about 107 points right about now, and the s&p 500 looking to open down looking at 16 1/2 points for now. getting a little bit better than we were about a half hour ago. joe. >> andrew, thanks, as the race for a vaccine heats up, our cnbc all american survey asks americans if they trust big pharma to deliver. steve liesman joins us now with the details. hey, steve. >> good morning, joe, the all american economic survey the concerns of key demographic

group create a roadblock toward widespread vaccination and adoption of the vaccine. just 52% of the 800 americans we surveyed say pharmaceutical companies will make it available when it's safe and effective 30% believe they will rush due to political pressure. 20% say they're concerned companies are motivated by profits. the next one is politics 7% say both. one big split that's in there along party lines. 62% of republicans trust big pharma, versus 47% of democrats. independents match the concern of democrats another big split that's out there. women, 18 to 49 are among the most skeptical groups when it comes to a coronavirus vaccine, and that's a critical group when it comes to a family's decision about whether or not to take the vaccine. what's more interesting here is

that the differences don't really show up when we ask generally whether the public trusts the pharmaceutical industry you can see here that the pharmaceutical industry is about average when it comes to the public's trust in a specific industry 28% say they trust the industry quite a bit or a great deal. less than online retailers, about even with the financial industry above the national news media. social media, you can see right there. they're in the dog house with the american public. also the big take away here is that politicians, government agencies and sfindustry, they hv a lot of work to do with the safety of the vaccine and approval process that would appear to be true no matter who wins the election, becky. >> i think that number among 18 to 49-year-old women, 60% think this is going to be motivated by politics or profit, that to me is the most stunning number. did they ask specifically on the poll, does this mean they won't take the vaccine or they have

concerns about this but they might take the vaccine anyway. if that's the case, we might as well just write it off even if a vaccine is developed, it's not going to make a difference if you have 60% of women making the decisions for families on whether they will get the vaccines. >> the answer is we did not ask that particular follow up question, becky. getting down to that level of detail on the profits versus politics was about what we could do on this, and whether that translated into not taking the vaccine, that's a different question we'll ask in a follow up question. others have asked it and there is widespread reluctance in the public about taking the vaccine. this r 53% number for the general public is in fact even a little bit higher than findings by pugh and findings by gallop, which were in the 51%. what we wanted to do, what others are not doing is drill down and see to the extent to which the cause of that concern is is it politics, is it profits and then which groups have it, and we were able to do that, and compare that with overall trust in the industry, which is not

that bad there's not a whole lot of trust in industry among the public in general. but we're able to find that the problem is not the concern about the pharmaceutical industry in general. it's all of the talk that's out there, and what we saw is that comments by president trump moved democrats more forcefully into the ones who were concerned about it, if you look at some of the trend in the other polls, but we'll follow up with that in the future as whether or not that translates into actual reluctance in taking the vaccine. >> is any industry over 50%, steve, the only ones >> no. >> 38 is the high? what's going on. so how about government, that's probably 20% so we are just a cynical group of people in this country right now, are we not, is there anything that the majority -- who is trusted, then, at this point? maybe health care workers or something. that's not really an industry. >> we used to find that the army was trusted, the u.s. army was

trusted. military in general. >> i trust those guys. i'm way above on those we've just been hammered by too much anti, i don't know. >> look at facebook and twitter, joe, look at that 13%. >> i'm at zero trust for them. that's way too high. what did they get, 18% or something? i'm at a negative number. >> 13. >> oh, no, no, i'm negative 13 what's the lowest number how low can you go >> you know what's so great about that, chart, joe, is there's somebody from the national news media to be above. >> exactly >> i'm much lower on that, too i guess i'm self-loathing. >> but restaurants, restaurants, i love chipotle? >> but remember, joe, the question, let me go back to the question here. it's a pretty high bar, right, so we say i'm going to read you

a list you take the survey, a list of institutions in american society. i would like you to tell me how much confidence you have in each one. a great deal, quite a bit, some, very little, or none at all. so there's a couple of middle ones there i can back in the some confidence, and i would get back over 50% when we asked for a great deal or quite a bit, that's where you get those 38% numbers. not shown there, airlines 28%. what else did i not tell you there just to make room for space, which we have a problem with health insurance companies, 25%. so yeah, when it comes to a great deal or quite a bit, which is a high bar, the american public is a little bit skemt ca - skeptical, joe. >> fine. be that way. maybe we'll like socialism with no private companies we're going to get a chance to see. kidding, steve i guess we better get going.

i love doug mcmillon, i trust walmart. >> you live in that space. you talk to these guys every day, most americans don't. >> they're getting pounded. >> online retailers. >> profits are bad capitalism is bad. they get pounded day in and day out, but duo it more and more. >> nobody likes anybody. >> i know. >> nobody likes anybody right now. >> nobody likes me, everybody hates me, i'm going to eat some worms. >> i like steve. i like everything. mac, i like everybody. >> it's a kumbaya morning. >> steve, thank you. let's get more insight, joining us with more on the screen chase and the future of health care america, dr. atul gawande, a staff writer at the new yorker, and a professor at the harvard school of public health his latest piece in the new

yorker argues that controlling the pandemic is the first step toward rescuing a failed system. doctor, it's good to see you this morning before we jump into the latest article, let's talk a little bit about steve is telling us, this idea that there's not a lot of trust out there. motivating the pharmaceuticals for the vaccines >> a couple of things, there is actually very strong trust in national surveys in health care, health care institutions, doctors, and even with the polarization around scientists i think the critical thing is that the approval process follows science, and i think the fda has asserted its independence and indicated transparently what their public process will be, what the evidence will be they'll need to see. i'm more concerned about a couple of things that, you know, as a vaccine comes to approval, it will be health care workers

who will first get it, and the willingness of health care workers to get the vaccine will help engender trust. however, what we see is moderna announced thatthey will have about 10 million courses of vaccine. pfizer might have up to 20 million courses of vaccine if one of them work, that means we'll have enough for 10 to 20 million people we have 20 million high risk health care workers and first responders there won't even be enough for that group, let alone getting to the second group, which would be the elderly and nursing homes, people in very high risk settings so in these early stages, the worry to me is less that there won't be enough people to take it, the worry is having enough doses. it will be months until we have enough to get to the next level groups where we're worrying about that lower risk demographic taking vaccines. >> that's what we heard from ken

frasier from merck, it's going to be months before we get to that point we have heard from dr. scott gottlieb, it's probably the next two to three months that are the most critical. that's the time you're going to see an increase in cases, you've got the flu potentially being confused with things, and maybe once we get through to the spring, we hope the case load will come back down. there will have been more people exposed to it. people behaving more safely f what do you think of that? >> i think dr. gottlieb is right. the next two, three months the wave we're in, we're at half a million cases per week takes just weeks to jump from 8 million to 9 million cases, hospitalizations are up. deaths are up. wisconsin yesterday hit an all time record high, a single day high for cases, deaths, and hospitalizations all on the same day. so, you know, these next two, three months are absolutely

critical, and we can control it. the alarming thing is how many states deciding it can't be done, pushed by a white house that has said, you know, they're not going to enroll out a national testing strategy. so, you know, we know what needs to be done in hospitals we actually have learned how to control it. it's extending elsewhere those are, as we always talk about. the masks, being able to socially distance, and really avoid crowded indoor spaces. that's the big thing that has changed, we went from 3/4 of people saying that they were avoiding gatherings indoors with friends and family to now it's under 45% who are avoiding those settings and that's where a great deal of spread is happening. finally i'll say if you look around at the current rates we're seeing of infection, if

you come into contact with large groups of people, there's a high likelihood someone in that group has been infected and will spread to you. especially in indoor settings and especially if people are not wearing masks. >> so atul, how much of this is a behavioral science question at this point, just people fatigued and just deciding they're going to go inside and have dinner with friends, and that's the problem or how much of it is that we still don't have enough n95 masks, something you have been calling for since the very beginning, which would probably be the cheapest way to change the die nynamic, though i don'to if friends are going to sit inside with their n95 masks on, and then of course there's still testing and what needs to happen on a national testing scale because it feels like all of the momentum and emphasis has been on therapeutics and vaccines to the detriment of testing the question of whether we'll need the testing in the future,

some people think we will. some think we won't. >> let's break it down you started going through those nicely masks, we no longer have a shortage of surgical masks, and surgical masks are more effective than cloth masks i would suggest people go ahead and order, get your surgical masks. they are baetter than the cloth masks. they're also more breathable and easy to use. 91% of americans report they are wearing masks. we're starting to be a lot better the key issue is we take them off when we go to restaurants or other indoors settings or we have high risks groups who really do not want to wear the masks and attend large group functions where things can spread we can do better on that front testing. testing has become more available, but as cases climb, we're running back into that situation where the turn around

times on tests are getting longer and it's getting harder to get the tests case in point would be north dakota and south dakota. in north dakota, you have the test positivity rate over 43%, which means that even with 100 cases per one hundred thousand people which is some of the highest spread rates in the world, we're still not capturing a fraction of the cases that are out there. we need much more testing and that means investment, telling all of the labs around the country, order your reagents now. hire those workers, we are going to use those tests and we are not sending that signal a lot of my work has been around building logistics and operations to tap into that untapped capacity, and we can triple, quadruple the amount of testing capacity within the next few weeks when we can make that commitment, when we have done that and finally it's investing in

the tracing. >> who has to do that? >> that is without question the administration can do that through operational warp speed they have cash on hand, and then it's congress. which needs to add on additional dollars. but warp speed has dollars for not just vaccines but therapeutics and testing and deploying more dollars to the states is going to be critical >> dr. gawande, i want to thank you for your time. we appreciate it >> absolutely. >> meantime, want to keep you up to speed on the markets this morning. implied open right now is down 163 points on the dow. s&p 500 looking to open down about 20 points right now. the nasdaq off about 113 points. we'll break it all down for you in just a moment after this.

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a rainy day in new york city this morning, and some rain also on some tech stocks or at least on the tech stock names. some of the returns came in pretty well. a number of big tech numbers of tech companies reporting

quarterly results yesterday. let's walk through them. apple beating wall street expectations and iphone revenue was down, maybe that was expected or should have been expected given the fact that the new phones were coming and people were holding off waiting to see those new phones. meanwhile, facebook saw a decline in users in the united states and canada. amazon shares falling off what was a blow out quarter let's be honest, its projection for the fourth quarter profit margin was lower than analyst expectations, given the gap they are offering in terms of how wide it is, and a couple of other bright spots as well here to break it down is henry blocka blodgett, new owner of morning brew it's nice to see you this

morning. let's walk through some of these stocks let's go straight to apple, if we could, which is to say, were you surprised at the results and so you would we be happy i mean, the results were good results. it's just a matter maybe of expectations here of what's going to happen next. >> yeah, i think stepping back, all of these companies had what can only be described as staggering performance these companies are gradually quarter after quarter swallowing the world, continuing to grow at rates that would have been unthinkable for companies of this size ten or 20 years ago, and yes, i think you can poke it at each quarter and say something was wrong here, something is wrong there, and certainly the stocks are expensive. as we have talked about every time most of them are in the low 30s in terms of pe, that's a high pe, could be less than that. but overall, fundamentally, the companies are still in amazing shape, and i think what's happening is there's a lot of noise around the corner, and i'll leave it to your guests who are smarter than i am. the fundamentals are great the market itself is expensive covid is resurging, that's not

good news for anybody. i think that's playing a role as well let me ask you a question about apple. this is a tweet from charlie >> apple revenue was up 1% over the past year. its stock is up 92% in the past year what gives >> well, we've seen tremendous multiple inflation across this sector, and part of it is that investors are recognizing the truth which is again the fundamentals of these companies that have been extraordinary, and apple a little bit less so on the revenue but they're still rock solid, they're tremendous, the cash flow is amazing. so investors are recognizing that at the same time, the multiples are high we have pointed that out so no one should be surprised to see if we get multiple compression, especially if the market is under pressure, which seems like it's possible >> i want to press pause for a second, bring becky in because i

know she's got exxon mobil results which are crossing the tape >> thanks, andrew. exxon mobil as you mentioned just out taking a look at this. the company came in with an j adjusted loss of $0.15 a share both numbers are better than street expectations, looking for a loss of $0.25 a share. this is a similar story to what we saw with chevron earlier today, where they came in with better numbers a smaller loss than expected and in chevron's case turned a profit on an adjusted basis. they did this not because of strength in sales or anything else, this is kind of, again, closely watching their spending and cutting back on a big way in capital expenditures, for the third quarter, exxon had $4.1 billion in capital expenditures that brings the 9-month total, it looks like they're on a run rate for $19 billion for the end of the year, and that's down from what we had last heard. remember, march, they were

saying they were going to spend $33 billion a year in april, they said they were cutting that by 30% down to 23 billion. now we're looking at a closer run rate of $19 billion for the year that's not where it ends they will continue to cut capx, 16 to $19 billion in capx spending in 2021 in april, they said $23 billion. again, both companies looking at ways what they can control as you have seen significant hits in crude oil prices and things along those lines. also want to say, chevron is saying it's reassessing its portfolio at this point, strengthening the portfolio, they're looking at all of their resource base, they're looking at gianna to $9 billion of oil equivalent, and moez am bzambiqd papa new guinea, they're going to be looking at those things

currently included in the corporation's development plan and looking at reassessing nothing has been decided the company says they expect to complete the assessment in the 4th quarter and the board will be considering this in the 4th quarter as part of their plans of going after this. they're looking at the short-term price fluctuations, but longer term they are spending the money talking about cutting that much capx, you have to decide where you're putting that money to work, and that's what they're in the process of doing right now exxon shares are down 30%, a decline of 9/10 of a percent again, both of these companies coming out on the same day and talking about controlling what they can control with the capex and kind of looking at their spending, their operating spending, too. chevron shares down by about $0.07, but a lot is going to be considered, not just in the 4th quarter, but probably into next year too, with exxon cutting capx for next year as well

>> thanks becky. i'm going to try to connect the exxon story to the apple story, and let me ask it this way, henry. you know, exxon mobil was once the biggest company in the world. and that was, you know, the question is, ten years from today, is apple or amazon going to still be the biggest company in the world >> i would say unlikely, given the way dynamics work in these busine businesses amazon is in enough massive businesses, if things continue to go well they could continue to have a great run. it's fascinating watching oil and energy, from my perspective, know nothing about it, and struck from a distance as a citizen and watcher of the markets at just how binary the expectations are for these companies. it was ten years ago, it's going to be peak oil, oil is going to $500 a barrel. now they're all going to go out of business because we're all

going to be on battery power, and step back from it, and renewables if you step back from it does the world need energy and is oil going to be a source of energy for a long time, and other things, seems reasonable it's just fascinating to watch investors trade around these. >> are you betting, by the way, on the big tech companies, and this goes to the issue of whether we'll be talking about them ten years ago they are going to ultimately get broken up. we have been talking obviously about google, which was in the news with their earnings a blow out, by the way, on you tube but a lot of people have suggested that you tube will get spun off either because the government will force it or because people will think it's a business imper ative. >> i think there's going to be more regulation of these companies. you can't have this concentration of power without leading to that, and i think the point we've made before on this, i've made before on this is it's

going to take a long time to figure out it's incredibly complicated. the companies make the argument. it is a good argument in the lot of cases, what they are doing is improving the consumer experience, and making it better and better, and is it better for the consumer if you tube and the search engine of google are spun apart. i don't know why it would be necessarily. it's certainly better for competition, i suppose i think the key point is if any of these companies are ever broken up, investors in the companies are going to own both, and the companies will then continue to do well. you tube is not just doing well because it's a part of google. it is doing well because it's an absolute juggernaut unto itself, and it will continue to do well, even if the two companies are separated. i think in general, the regulatory fears are overblown in terms of it being an existential crisis, but i think it will create uncertainty, and it is going to take a long time for each one of them to work through how you regulate them.

>> henry, broader question, just about uncertainty in the markets today, how concerned are you and how concerned should investors be broadly about the possibility of civil unrest. genuine zifrl unrest over the next several weeks we were talking in the 6:00 hour about this news that walmart is effectively taking guns and ammo out of their stores, frankly out of genuine worry and concern there could be looting and the like, and people, you know, robbing these stores, taking this stuff, and taking to the streets. that is really concerning because i don't think that they would make such a move lightly unless they were hearing from officials who were offering them intelligence about this kind of potential. >> i think unfortunately it is reasonable to be concerned about it i think the hope of every american is that if there is anything like that it will be very short lived and brought under control and calmed down

quickly, but i just think it's such a sad state or a sad commentary on the state of the country that we have to worry about that we have been -- a wedge has been driven in this country between the two massive groups who see things incredibly differently, and i think it would be wonderful if we could remember that we have a lot more in common than differences and begin to think of ourselves as americans again together and that would be great for business, by the way the uncertainty doesn't help. >> and that's a great message in the broadest sense, as an investor, though, for those who are watching, investing in the markets, what do you do? >> i think it's tough, i think high level, the markets are expensive. and that is a big concern, and the folks who say it's fine, it's liquidity driven, the fed will be back with more stimulus from congress, and so forth, so you know, it's going to continue they may be right. the recovery since the bottom in

march has been incredible, maybe that continues, but i think that longer term, leaving aside the current expensiveness and so forth, markets have come through wars many times. they have come through centuries. there are a couple of examples of markets that have effectively gone to zero when you have had a complete change of the government system in a country, but otherwise markets have come through, even periods that have been much much worse and more divisive than the one we have. long-term, knock on wood, we should be okay. >> okay. henry blodget, nice to see you appreciate it. thanks again. >> great to see everybody. still to come, kraft heinz, u.s. president carlos abrams-rivera i trust kraft heinz, i like macaroni and cheese. i like ketchup

how about coors, becky. >> did you see "the new york times" things where they took pictures of people's refrigerators and you're supposed to guess if they're a biden or trump supporter based on their refrigerators guess what mac and cheese and ketchup. >> let's ask people, that's 50% plus wine, beer, how about brown foreman. i'm 50% on that you like anything, "the new york times," you like any companies at all? you like -- anyway, "squawk box" will be right back this is decision tech.

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♪ ♪ welcome back to skoks this morning -- "squawk box" this morning. s&p looking to open up 23 points, nasdaq looking to open off 113 points the u.s. president of kraft heinz and then check out shares of twitter and their latest quarterly report the company announcing user growth fell short of

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oh, there i am oh, my god i'm waving kraft heinz now posting strong quarterly numbers, with the third quarter beating expectations on both the top and bottom line. raising its forecast signaling it's prepared for a lock down boom in demand as virus counts continue to climb across the country. joining us now, carlos abrams-rivera. president of kraft heinz u.s. zone, the company's largest. we went through this before, carlos and you were there for us, i'll say, in terms of stocking. it's got to be complicated when demand goes up so quickly, and then it subsided a little. now it may happen again. how are you preparing for this

resurgence that we're seeing >> first of all, glad to be with you here today as you said, i think it takes actually quite a bit of agility because the situation actually changes week to week, and as you know and have been tracking, even within the united states, there are different pockets. what we're seeing is we have to work with our customers and retailers to make sure that if they see different pockets of search in certain areas of the country and sometimes county to county, that we actually move our inventories and logistics, in order to better serve our consumer, the great news is that that's working everything we're seeing so far with the progression and performance in q3 suggests all this is working. >> if you maneuvers perfectly carlos, i could see how this horrible situation we have been through over the past ten months, whatever it is maybe not quite, this horrible

situation, if you didn't have cho shortages, you could have higher sales year over year just in case this could be a net positive for kraft heinz in terms of overall sales. >> let me put it in the context that obviously this is a difficult situation that we are going through as a country, so at the same time, i think our role at kraft heinz is how we can help our people right now actually continue to benefit from feeding them the great products that we can provide so it is a tough situation now, you talked about ability and capacity, i can tell you that as we sit here today, maybe there's a couple of pockets within our portfolio where we have constraint, but really those situations actually are behind us. we have been able to get much more out of our factories, in fact, even in our constraint networks, we're getting 20% more than we have gotten. we have expanded a network to

better serve our customers we are in a situation right now where we are in fact able to serve the needs of our consumers as we stand here today and why the result that we show yesterday continues to build our momentum as well as we go into the end of the year. >> carlos, earlier i was kidding around about apparently u.s. consumers are mad at all of the corporations what about kraft heinz and i mentioned macaroni and cheese, and what i'm getting to is there are niche brands that have a lot of sizzle, like i think it's called annie's, and i like annie's but i still like sometimes falling back on brands that i know. have you seen any of that as times, we go through these times as a country are some of your more established brands having a resurgence at this point >> i think that there's three ways that i look at that one is if you think about the

household penetration we have gained over this time period it has been dramatically across all of our portfolios, and in fact, you know, half of our brands are seeing double digit growth in household penetration. we know that, we are the ones that have been chosen by our consumers. the second fact i'll give you is today consumers are telling us that 2/3 of consumers will prefer to buy a trusted brand, so in moments of, you know, where people are looking for, making sure they have the right value, that does speak to quality, taste, and something the whole family would really enjoy. our trusted brands are winning in that environment. the situation in which we're seeing household penetration gains, people believing that our trusted brands are the ones that really fit the value that they're looking for today. and as we are bringing new consumers into our brands, they're reepeating a higher rat than we have seen in the past. they're coming in. they're enjoying a brand they're seeing, you know, how

great the mac and cheese is. and now they are actually using more and more than we have ever seen in the past >> does this mean that there's less of an impetus to go with the latest trends on some of these niche brands that millennials and others just seem to prefer over their parents' products i mean, are you diminishing your efforts to do that or still looking around constantly for new things >> i think for us it's a two-tier strategy. i think first, we continue to drive our brands and continue to support our business and in fact spending about 40% more this year in marketing than we have last year. and 70% more than we did in the first half so we continue to focus on those. at the same time, we also actually have quite a bit of those challenging brands, whether that is things like primal kitchen and other brands that allows us to actually go talk to different

consumers. the one fact i will tell you, if you look at household penetrations, the places we make the most gains have been with younger households, less people, and more diverse so people who in the past have not had a relationship with our brands now are coming to our products and repeating at a higher rate. they're coming in. learning about our approach, enjoying it, and why you and so many others are enjoying things like kraft macaroni and cheese. >> we have to run. i am grateful. there's been nothing i really couldn't get through all of this, and i think everybody, you know, has tried to make that happen, and it wasn't easy in terms of warehousing and stocking and distribution, and grocery stores and everything else so thank you, appreciate it. >> thank the many people who are doing this today, and appreciate anyo thk u. >> thank you and squawk will be right back

good morning, futures pointing to more losses as we get ready to wrap up what has been a scary october for investors. the dow is tracking for its worst week in seven months. helping to lead the charge today, slumping tech stocks like apple, amazon and facebook

we'll bring you the latest from their quarterly reports. plus, we'll be talking to twitter's cfo after user growth that that company badly missed estimates. twitter shares have plunged 15% in the premarket 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 at this hour down just under 200 points becky, we can't do it now. i want to hear about those two different refrigerators eventually it's finally friday, since the beginning of the week, the dow has lost, i mean, i'm seeing kale and i'm seeing, you know, tofu and veggie burgers in one,

and big cholesterol filled steaks on the trump side had horrible spiking coronavirus that we're seeing in the lot of different parts of the country, some big numbers with perhaps deaths expected to fall, not yet, but they're rising as well. and that has people worrying about a potential lock down or just scaring consumers into being, you know, pulling their horns back in. a lack of stimulus from washington that we have seen, and next week's presidential election, all having a hand in giving the index its worst week and month since march. we've got a huge lineup of guests this hour to talk about the markets and your investments, andrew. >> let's start, though, this hour with today's market action coming off yesterday's avalanche of big tech earnings cnbc's senior markets commentator, mike santoli joins us this morning with that. mike. >> the numbers across the board

were good with the results last quarter. the other stocks that reported, facebook, apple, amazon, coming in the context of the nasdaq, that's been in correction mode for two months, coming off this sharp momentum peak here this rhino horn that you saw peaked september 2nd so you have been kind of correcting in this zone for a little while right here. it's been underperforming, although this week the nasdaq has done been done, at the pre-market levels. this is really an evaluation adjustment and basically a lot of crowding in those big tech stocks that is now being unwound to some degree, and its evaluation story. here's apple, it's an exaggerated version of the nasdaq 100 chart apple is 13% of the nasdaq 100 etf. here we traded at 22 times forward earnings for apple now you're back to something like 29, depending on how it

comes out. all the analysts are defending apple, facebook, we'll see if they get response in the regular trading hours. this is the stock split right there. really only at levels that you never got to before early august kind of just skipping away the froth. there's an outsized index on the underlying index when you do that. thanks for that. we are now just four days away from the presidential election leading up to tuesday, we're focusing on the most critical areas within america's battleground states, and brian sullivan joins us now from another one, this is almost as fun as when scott cone goes around looks like it might be cold. that's a good look for you, bri, not sure why >> reporter: because it hides my ears with the hat on keep this on for the rest of my life we are in rochester, minnesota, olmstead county, the other places we have gone on our

election road map road trip have been states that trump flipped to him this is going to maybe flip the script on that minnesota obviously went to hillary clinton in 2016 but not by much, and so that is why we are here in this battleground state. clinton won by about 45,000 votes, 1.5% of the population, by the way, and she was up 6% on a polling average coming into it, so trump narrowed that he thinks he might be able to do it again, and there's a lot of intrigue around minnesota as of when we drove in last night, guys in the last 24 hours, joe biden announced he is going to do what he calls a drive-in rally at 3:45 p.m. central in st. paul. president trump is going to hold his rally here, and there has been drama around that he wanted to have a big event to an airport, moved it to a private company, and moved it back to the airport, and then the governor said that he can't have this big open rally with thousands of people because of covid and so they're limiting it to 250 people. trump taking jabs at the

democratic governor over that. there was also an appeals court ruling about counted ballots here, guys, saying that any ballot, mail-in ballot received after 8:00 p.m. on election night has to be segregated and may not be counted so there's all of a sudden all of this drama around a state which a lot of people probably consider, guys, reliably blue. again, if you look back at 2016. 45,000 vote margin for clinton, 235,000 people voted for third party candidates sort of a staunchly independent state, minnesota there are seven candidates on the presidential ballot, including kanye west and others here there's a lot of other candidates, unlike pennsylvania, you've got this court ruling about mail-in ballots. you've got whatever poll you're looking at one of the few polling companies that got it right in 2016, has biden and trump statistically tied i can find you a poll that shows that biden is up 10%, too, but either way, both candidates must

feel it's in play because they're both coming into the state today. >> i was surprised at that you know, he is venturing out, the vice president, and i thought it was, you know, to get him out, and now he's going to minnesota. i thought that was really strange. and that's what people say, that you can tell what's really happening with the campaigns themselves as to where they send individuals. remember, they asked president obama to go to philly, and you know, pennsylvania would -- i think biden reportedly had a big lead when he went there, so you know, of course all the usual suspects like florida and ohio and you're going to see that, but mediciinnesota was a real interesting one. i don't think biden is going to texas. they talk about it, but he's not going there, is he >> reporter: not that i know of. trump is going to wisconsin, michigan and minnesota today listen, you know, sometimes better to be lucky than good, i

guess. our election calculus, our team putting together this trip must have gotten it right we planned to be here, and now trump and biden are going to be in the state, even a blind squirrel finds a nut sometimes i don't want to give away exactly where we're going to be on monday as part of the trip, but we're going to end this road trip in michigan, and now we're just finding out that biden and obama will be in michigan on monday as well we don't know where yet. they're not announcing hopefully where we happen to be at we kind of got lucky with trump coming in here the map is wrong, because of the weather, i'm not going over the top through saint escanaba we're going back around the other way to chicago and back up a lot of drama around minnesota, guys ten electoral colleges here. obviously you have the court ruling about mail-in ballots i want to highlight the point, not taking away from the election night coverage. it is possible we will not know the winner of the presidential election on election night, and

i say that because michigan, wisconsin, and minnesota have about 7 million mail-in ballots as of this morning they are not allowed to begin counting those ballots until the morning of election day. so if we believe in three states where a margin of victory was about 100,000, that you can count 7 or 8 million mail-in ballots in a day, that seems like a big job no matter who's doing it, so it could be a long election week. but we're going to be here in minnesota, certainly all day as trump is set to fly in should be interesting later on this afternoon joe. >> yeah, it should if it's any consolation, we'll be here at 5:00 a.m. on this wednesday. we'll take the baton path whenever it happens. hopefully someone will be here something will be going on to talk about it. you'll be back by then, you'll be there for election night. i don't know how late you'll be staying there. bring your sleeping bag. and then we'll be back

>> a heater. >> they're cozy. i love sleeping bags anyway, thanks, brian. we'll see you. thanks for playing along, too. great minds. you knew great minds, the hat, great minds. anyway. >> here we go. boing. anyway, love you we'll see you later. andrew. we're going to talk a little bit about next week's election as well as what we can expect or when we can expect another stimulus package from congress if we will at all. democratic senator tim kaine, he was his party's vice presidential nominee in 2016 good morning to you. what's your expectation? we were just talking to brian about when we may have an answer here >> andrew, i think we may not have the final answer until late in the night, but let me just use virginia as an example, and i think most states will be able to do this, we will have really

important data as soon as the polls close that will tell us a lot about the evening. so for example, in virginia, about 4 million votes were cast four years ago in the presidential we already had 2 million cast in person or by mail that were in the bank by last sunday. it's probably going to be 3 million by the time the polls open on election day morning now, you don't know how those 3 million people voted but you know who they are. the parties know who they are, and you can look at them, and say, wow, this person has voted in six democratic primaries and never a republican primary that's a democratic vote or vice versa. we're probably going to have about 75% of the votes in the bar bank on tuesday morning, and we'll know who the voters are. even though the race might not be called for a while, by the time the polls close there's going to be really important data on the table in virtually all of these states that will tell us how the election is going that night

>> senator, you know, one of the news items that crossed the tape yesterday i think has a lot of people concerned walmart made a decision to take guns and ammunition off of their floors in part because of genuine concerns that there could be civil unrest post election and you have to imagine that they didn't take that -- make that decision lightly, and i imagine could have been informed by officials and others about what may come. how concerned are you about that >> i am concerned about it when you see the law enforcement having to arrest a group of militia members who were plotting to kidnap the governor of michigan and talked about kidnapping the governor of virginia, i am concerned about it, and that's why i think, you know, those of us who were in positions of, you know, political influence, we have to preach a message of calm you know, i was real disappointed after 2016, but i

introduced hillary clinton on wednesday morning and she conceded we didn't like the outcome, but we gave calm concession speeches to suggest that there was now going to be a peaceful transfer of power, and we should hold all of our elected and all of our candidates to that standard, deliver a calm message that's consistent with our country's democratic traditions and we should expect everyone, every candidate and every office holder to do that. >> senator, though, are you imagining this is going to be a contested election i mean, we were just discussing this issue of so many of these ballots that have to be counted: this real question, which ultimately could go to the courts about whether some of these ballots should be counted after 8:00 p.m. and the like >> right i think you might see contests in some places look, i think there's going to be some states that could be close. there will be some senate races that will be close there will be some house races that will be close

you'll see some legal contests, but again, using virginia assen a example, we close first in the nation, 7:00 eastern time. we're not a, you know, deep blue state. we're a purple state that's trended blue recently. if we get data that this is going to be dramatically better for joe biden than four years ago, we think that could send a message early in the evening it could go on for a while somebody could file a lawsuit. but florida closes early on election night new hampshire closes early on election night pennsylvania closes early on election night michigan closes relatively early, so does ohio. in eastern time, we're going to get some early results that even if they're not the final results, i think can give us a pretty clear sense about how the election's going >> senator, can i pivot the conversation for a moment to this issue of stimulus which is also such an important one for the country right now. >> clearly. >> clearly nothing has happened

thus far, nothing is likely to happen before the election the question i would ask you whether you think in a lame duck session or in whatever period you want to describe that you're going to actually see stimulus come to the floor. >> so democrats want a big stimulus the house passed the fifth bill in may the senate has yet to pass one because there's a division between democrats who think it needs to be robust, and republicans who want it to be skinny the election is over next week the dust settles, what's going to happen? i still am hopeful that we're going to get a significant stimulus bill in november or december here's why, if president trump wins, he doesn't want to go into inauguration day with everything collapsing we're still 3 1/2% down on gdp from 2019. we're nearly 11 million jobs down, and covid case s are spiking. we need a bill stimulus. what if joe biden wince, ts, i k

republicans in the senate may decide if we don't need to worry, president trump's going to be gone in two months, we don't need to worry so much about what the white house thinks, we have to worry about what your voters think, and their voters are asking for relief i'm confident we'll get a big stimulus bill. i hope it's november, december, rather than january, february, but i think once the election is over, the need for this, the amount of suffering, especially as covid cases are spiking, make it absolutely critical that we do a bill, and as fed chair powell says, it's not the time to go go small it's the time to go big. >> senator kaine, we appreciate you joining us we hope to talk to you again very very soon >> great you bet. >>. it has been a boom year for used car sales, so will the new spike in coronavirus cases strengthen that or make it worse? after this break, we're going to ask the ceo of online auto

retailer, carvana. first check out shares of honeywell, lower, despite beating estimates on the top and bottom line. results were helped by strong demand for warehouse automation equipment. that stock is down by 2.4% that's the story today, companies beating on the top and bottom line. something else is given the street cause for concern maybe it's a change in aite.ttud stay tuned, you're watching "squawk box" here on cnbc. my name is henry.

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

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except about that. xfinity home. simple. easy. awesome. hey look, i found the tent! get xfinity home with no term contract required. click or call today. auto sales, especially used auto sales preowned have been a recent bright spot for the economy. carvana, called the amazon of automotive retail posted its first ever profitable quarter. shares are up this morning, and the company is now worth more than ford. joining us now ernie garcia, ceo and one of the founders and chairman of carvana, you got to love those vending machines, is that your id idea >> there's a lot of members on

the team to chip in on the idea. it's a way to give a great experience, and normal marketing dollars. so they're pretty fun. >> it helps. i'm telling you, they look like great cars, and youp you kn kno great marketing tool we have heard about people not able to get, do you call then preowned or do you use the u word. >> preowned sounds better. let's go with that >> are there enough around to satisfy demand right now >> you know what, there weren't for a long time. i think across the industry now in general, pre-owned cars are at a place where there is more stable supply, and it looks a lot more like the past on the new side, there's big constraints, and for us, given the growth, we are at half the levels pre-pandemic, to keep up with the demand we have seen. >> you finally bought more than you sold, right, which anybody

that, i mean, i think if i could sell a car easily, i might not lease. it's a hard thing to do and it must be great with no touch covid concerns and anything else right now. that's played into your business model as well positively. >> sure, that's been a huge deal for us so as part of building out the retail model, delivering cars to customers' homes, they can go to our web site, get a value in two minutes, and use the same infrastructure to pick up cars from them, bring them back, and put money in their account we bought more cars from customers than we sold we tripped ld tled the number ow bought, and it's been great for the business and for our customers because it just collapses more of the value chain of automotive retail, allowing us to give customers a lower price and driving the financial results that you saw yesterday. >> did i buy a used tesla out of your vending machines?

>> you could and that would be the future meeting the future >> only if it drives itself out of the vending machine and takes the later down, and then drives over to my house 0 to 60 in like a second natch, something like that: are you everywhere where do you need to go. what do you need to do >> we are most places in the u.s., so we have first party delivery to about 75% of the u.s. population. to the remaining roughly 20th%,w have the ability to deliver using third party, and we have been growing that quickly. >> so do you contract out maintenance and, you know, refurbishment, and everything else to get these cars, you know, put in that stuff that makes it run for the first 50 miles, and then the engine conks out. who does that for you, ernie >> we have our own

reconditioning centers we opened our 9th in the quarter. we opened our 10th after quarter end. we're going to open our 11th by the end of this year those are large, roughly hundred acre facilities that can produce 35 to 75,000 cars per year each. every car that we sell, we put about a thousand dollars of parts and labor into to make sure the car is in great shape for our customers and so we done do the 50 mile special juice that you're talking about. >> i don't know if anything really works with that i guess some kind of sealant might work if you've got a leak or something you made money, so do you need to do anything else in terms of raising money, debt, equity, anything like that, to build out all this stuff >> how much, are you 20% done with everything? what would you say >> i think we're still a tiny fraction of what we want to be in terms of our ability to deliver great experiences to large numbers of customers we're in a great position. customers are shifting their preferences in our direction

a lot of demand since the beginning of the pandemic we're continuing to grow quickly. we've got about $1.8 million of liquidity resources. i think we're in a great position, and our job is to keep delivering great experiences to customers and keep scaling the business as fast as we can to keep up with all the demand. we'll be running hard as far as the eye can see. >> what's your number one seller >> oh, man, i don't know to be honest with you these days that changes around a lot. >> a little suv. >> they're all tied for the best >> some kind of little suvs, that's all i see everywhere. >> there's a lot of those. >> everywhere. >> ernie, thank you. good luck. appreciate it. i love those vending i'm going to go see one. i haven't seen one in person. >> go check it out thank you for having me. >> got to bring a lot of coins, though, right, you're there forever. >> one big coin. >> a bitcoin someday. coming up, when we come back, an interview you don't

want to miss, we've got twitter's cfo, ned segal, the company missing analyst estimates for users badly in the latest quarterly report. the stock tanking 17% after hours. we head to a break check out shares of starbucks, the coffee company forecast a return to sales growth next year as quarterly earnings and revenue beat street estimates stock off 1 1/2% don't miss kevin johnson with the gang on "squawk on the street" at 9:30 this morning. stay tuned you're watching squawk on cnbc squawk ceo call is sponsored by truist securities experience expertise

welcome back to "squawk box," we have been watching the futures on what has been a long week for bulls in the market, it is getting longer on this friday dow futures are indicated down by 262 points, believe it or not, that's not the worst levels if you were up early, you saw the market down by 500 points. down by less than this, half as much as we are now it has been a long week, and you have seen a lot of declines. the declines in the futures are more than the gains that the dow made yesterday three sessions before that, lost a lot of ground. s&p is indicated down by 31. the nasdaq off by 132. we'll see how things shape up as we get closer to the opening

bell let's also show you big technology names once again. many of them playing into this morning' premarket decline after earnings last night. apple down by 3.8. amazon off by 1.7 and twitter down by about 15%. alphabet is hanging in there, up by close to 7% when we come back, we have two more big interviews. first on "squawk box," after earnings first, activision blizzard ceo, and twitter ceo. we'll talk to bobby in a moment. check out the shares of the two companies, as we showed you, twitter down 15% this is after the company came in with great numbers. however, it was the user growth that concerned people. we'll talk about that in a moment activision blizzard beating on the bottom and top line. it was concern about the outlook. we'll talk to bobby about that. shares of under armour have been jumping after the company reported better than expected quarterly profit, up by 6.7%

the ceo, patrick frisk is on "squawk on the street" at 10:30 eastern this morning lots of earnings, lots of in-depth analysis in these interviews coming up stay tuned, you're watching "squawk box," and this is cnbc

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all right. well we just spoke a few minutes ago about greater auto demand during the pandemic. in fact, the demand for entertainment has also been off the charts as people were staying home video games and entertainment companies have been some of the greatest beneficiaries in fact, our next guest heads call of duty, maker, activision blizzard, which by the way, just reported better than expected third quarter results both on the bottom and the top line. joining us right now is bobby kotick, the ceo of activision blizzard, and bobby, it's good to see you thanks for joining us. >> like wise, thanks for having me >> last night you reported better than expected results on the bottom and top line. the stock came down after hours. it's rebounded quite a bit, off by 1 1/2% right now. the concern from analysts was that the guidance for the current quarter was below expectations what happened?

what are you seeing right now? >> well, we're seeing incredibly strong sales you know, we're on track for what will be the best performance in the company's history. and we keep executing against our growth strategy, even in what are very difficult conditions for our employees we're delivering greatgains across all of our franchises, we're seeing tremendous growth, and what we're really experiencing, we think, is a systemic change in the way people think about video games and it has become a staple of entertainment, but probably more importantly, it's the way that people connect and engage around the world. we operate today in 196 countries and so we have the ability to entertain people, but also connect them and give them a different type of purpose and meaning through their entertainment experiences. >> and that's what the street has kind of picked up on on some

of this. it may be a reflection of why the stock was down last night, and rebounded. when we talk to analysts, they point to this and say, hey, they think the company is being question of fact, meaning they think you're being conservative about what you're seeing and anticipating for this quarter. let me just tell you, when web bush securities analyst said he said, if you assume that shelter in place goes to zero in at least 200 million gain per quarter so far and call of duty sales are flat year over year, you should be up 300 million, rather than down 300 million that's what we're wondering, as we go into lock downs in places again like germany and france, why don't you think the numbers are going to be closer to what the street was expect something. >> i don't spend a lot of time worrying about that. i'm focused on our players and our employees and, you know, there are economic times of uncertainty. however, we have a lot of

momentum, and while there is room for substantial overperformance, we always take a cautious view when there's this much volatility having said that, every one of our franchises is performing far better than expectation, and when i look out over the next few years, it's, you know, we're one of the few companies where prioritization of opportunity is our greatest challenge and, you know, i don't know very many companies that are performing the way that we are right now, and that have the growth prospects that we do. >> what are you seeing just in terms of geography, and in terms of gains, because i know that people were downloading the games much faster than amend you picked up a lot of new users, women who weren't playing as much before, have you held on to some of those people as we started to see the economy open up a little bit more >> yeah, we have had record increases in our user base across the company i think when you look out over the next few years, you know,

we're continuing to deliver more consent on mobile devices, in more geographies, across more platforms and so we'll just have a greater opportunity for growth over the coming years than i think we have ever seen in our history. and our challenge will actually be to find the talent and, you know, i think we're looking for something like 2000 programmers, designers, and artists right now. finding that talent is going to be the only thing that prevents us from taking advantage of the changes that exist in the market >> where are you finding most of the talent now i mean, i guess you've got people around the world, not just in california >> well, we have studios almost everywhere in the world. our studios in stockholm, in berlin, in barcelona, in the u.k. are all expanding their staff.

i think we've got studios in southern california that are expanding, and, you know, we're benefit in some ways from the distributed work model now so we're actually hiring people where they are, and we have the ability to manage people from remote locations and in different places we're looking for the talent wherever it is. >> so that's maybe something that's not going to change after we find a vaccine or find some way to tame covid, that you'll continue to have people working from home because it's an easier way to find talent who are you competing with for the people you're trying to hire >> it's a great question, when you look at things like art and animation, and design, we will compete against tech companies, we'll compete against entrepreneurial start up companies, we of course compete against game companies but i think if you want a career

in video games and you want to come to a company that has a 30-year track record for growth, and providing opportunity, we're probably the best place to go. the challenge for us now is that it's not just finding talent but on boarding talent because historically the way we have on boarded talent has been in a physical location, and so we're now coming up with new clever ways to -- >> yeah, it looks like we just lost bobby, he was frozen. he was going to tell us the secret of how he can find people and hire them. he was going to tell us the secret to all of this. maybe somebody pulled the cable on that. we're going to look at this just a second and see if we can get that corrected act vision shares were down by 5

5% and we have bobby back, so what is the secret to that. it got cut off just as you were about to tell us the secret for how you on board these people, bring them into the firm and show how things work. >> zoom meetings, and a lot of zoom conferences and trying to figure out ways to bring people on board where we're giving the benefit of introductions to different people in what is, you know, it's a different experience than an in-person experience, but so far it seems like we're able to manage, you know, we have even on boarded a new president of the company who joined us in april. >> and i guess it's easier when you have a younger work force who's probably not thrown off by the technology, right? >> listen, our work force probably is average age around 31, and so they certainly are more comfortable with technology and we've had distributed

development across different franchises for a long time so it's reducing the studios to studios of a single person, but you know, this year, we have managed to deliver all of the content that we intended to deliver more or less on time or within let's say 30 days of when we had originally expected it, and when the pandemic started, i couldn't tell you that that was -- we would know that that was the case and so when i look out over the course of the next few years, making sure that we have the same rigor and discipline in our execution and we're making sure the games are the highest quality, going to continue to be our priority, but i think, you know, we will be able to find the talent and on board them, it just will be in a way that's different than what we have been accustomed to. >> bobby, always great to see you. thanks for taking the time this morning. >> thank you for having me >> take care.

andrew >> okay. meantime, we want to get straight over to cnbc's headquarters, jim cramer joins us right now let's talk big tech. which ones do you like which ones don't you like. we're going to be talking to the cfo of twitter in just a moment, jim. >> i think ned is being sold short here yes, they didn't have the right number of daily average, i wasn't happy with the users. nobody else was, however, i mean, the franchise is in tact i don't know how they did 20,000,001 that's kind of strange, you'll have to ask him that i think that the second half could be better but it's not my fav. my fav was alphabet. they hit it out of the park, gave you a lot more guidance, gave you a sense of how great you tube is: i feel like that company is coming in on the cloud, doing an amazing job. search is so good, once again, it will be part of the government i liked apple. call me a dreamer. i think this was not the quarter you're going to have 5g. that's next. if you sell apple. you don't believe in 5g.

facebook cwas awesome. my, they decide to spend on safety, should we blast them i think it was a great thing i guess, in some i like them if they're taking down the market, they have a chance i think it's covid, and the election taking down the marnke, and all of these were good except we have to find out about twitter, and maybe ned has a better story he's a great guy, even after speaking with him, it's hard to rationalize. it's a great franchise. >> if you could only own one stock, which ones of the ones we mentioned. >> alphabet. >> okay. >> jim, we'll see you in just a couple of minutes on "squawk on the street." as we have been mentioning when we come back on the other side of twitter, cfo is going to join us on his company's latest results, the shares getting hit hard this morning, we're going to talk through all of it after the break. ua rur ia ment

coming up, parsing twitter's latest results and its plans for election day, with company cfo ned segal, that's just ahead when "squawk box" returns.

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welcome back to "squawk box. twitter coming under fire by president trump for flagging some of his tweets and limiting the spread of a controversial new york post article about former vice president biden. just this week, jack dorsey faced intense questioning from members of the senate commerce committee and election day could present another challenge if one or both candidates claims

victory prematurely. joining us now is twitter chief financial officer ned segal, the company just reporting quarterly results, beating on the top and bottom line, but shares of the social media giant have dropped hard as monetizable dal daily av users missed estimates let's talk about all of this in many ways it was a blowout quarter on the top and bottom lines, a remarkable thing to behold, and yet the investor class seems to be focused on those monetizable users and adding just a million when i think the expectation was something like 10 million. what happened? >> thanks for having me, andrew. we're delighted to talk about the quarter and all the great things that happened first, remember, we grew our ads revenue 44% subsequentially in q3 because of a much larger audience, 42 million more people using twitter than we had a year ago. the improvements to our revenue products, the choices we make as we lead the service that makes it easier for advertisers to

give their next dollar and all the events and product launches that came back in course in q3 we had a big surge in usage, in march, and the great news about that is we're retaining that group of people better than we have historical groups because of all of the product work we have done. we don't get surges like that all the time, and so the way it flowed through our monetizable daily active usage, we grew this quarter, 42 million year over year we're really excited about the fourth quarter because whether it is on the advertising side, where this will play out dfrn ldifferently with the u.s. election happening here in the united states, there are great advertiser and engagement and audience opportunities for us as well >> i want to talk about the election and the advertising market in a moment but just let's get back to -- i want to talk about the users for -- just to put a button on this, in large part, because that's what the investors were

focused on what do you think you have to do to increase that number come next quarter >> we have done a lot of things to make sure that when people want to find out what is happening in the world and what people are talking about, they will come to twitter give you a couple of examples. today, 70 million people follow a topic on twitter that was basically zero a year ago, 50 million last quarter when people follow a topic, whether it is a hashtag for a stock like twitter or a topic like investing, they let us do the work for them, to find the tweets that they'll care about most when we do that, they engage more, they click on more things, this he retwe they retweet more things and comment more frequently. that's what twitter is all about, forming conversation for people so topics is a great example of this second, you brought up the election we have done so much work to make sure that we can be a trusted source for "conversation and information, before, during

and after the election so this is a great audience opportunity for us right here in the united states where 20% of our audience and almost half of our revenue is >> so let's talk about what you think the next week, two and three look like in terms of what you're having to do operationally around the elections, if you believe the election is going to be contested and what you're hearing from the advertising community about whether they're going to want to be on the platform during whatever this unknown period may or may not be >> well, let's talk about the audience side first and then talk about advertisers in terms of audience, it is always an election year on twitter. we had the opportunity to learn from elections all over the world, and to apply those learnings to this election here in the united states we labeled who the candidates are, so people know they're getting trusted sources of information. we point people to trusted sources, when something might be confusing to them. we make it our policies really clear to people so they

understand what they can expect from us in one situation or another, and when we do those things, people are more likely to come to twitter whether it is before the election, to find out about it, on the day of, or in the aftermath around it. we're really proud of this work that we have done to inform the conversation and it will take a lot of work from our team to make sure that we can continue to be a trusted source of information throughout that period >> you just said trusted source. i want to ask, just a quick question, i hear the cfo, there is still an elephant in the the room, glen greenwald, you've seen that article, a site that he founded, intercept, now he's leaving because he said they're censoring, the editors are censoring that he summed up what some people say fairly well here, that facebook and twitter cross a line far more dangerous -- leave that up, please, far more dangerous than what they censor. just weeks before the election, the tech giants unite to block

access to incriminating reporting about their preferred candidate. just got that totally wrong, there is nothing to that, ned, how would you respond? >> well, we're here to serve the public conversation. and that means whether it is around sports or politics, we want people to see all sides of a conversation not just one side. >> but -- >> we want them to interact with all sides. we want them to be able to tweet and retweet the perspectives they hear from different candidates or different people with various opinions around an issue, world series or presidential election. and that's critical to serving the public conversation and we feel like we're working really hard to make that happen. >> i know you're trying to do that, but that was his point there, that in his view you're failing miserably at trying to represent everybody and trying to let everyone air their different views. >> well, that will be different

perspectives about the principles and the choices that we make when we try to inform the public conversation with all different perspectives and the best we can do is make sure we're really clear on what our policies are, that we enforce them transparently so people know what to expect. >> the board official that couldn't tweet out we're making progress on the southern border, how did that fit into the policies you stated? >> well, this is a great example where sometimes we will enforce a policy, and upon reflection or appeal, we'll realize that it makes sense to reverse our initial opinion and so that's what happened in that case and there is certainly other cases where that will happen from time to time. we try to be open and listen to the people who use a service and make sure that we're applying our policies, consistently, fairly, and transparently. i want to go back to advertisers for a minute, you asked about the fourth quarter and how advertisers could -- how they could embrace twitter during the

election and afterwards. you know what, what we have seen historically, a moment where there is a conversation bigger than an advertiser's product or service on twitter, they sometimes choose to slow down or pause. black lives matter in june, in the united states, is a great example of this. what we saw in the weeks afterwards, is that afterer have ties afterer have ties advertisers spend through the budget, they realize it in a shorter time frame. we're excited about the fourth quarter and our opportunity to deliver for advertisers in an environment that changed so much where their customers are more likely to be on line, more likely to deliver their products and services on line and when there is pent up demand from them to reach their customers. >> ned, have advertisers talked to you about being prepared to pull advertising next week if need be? is that an ongoing conversation right now? >> we're always talking to advertising partners and some of them may want to wait and see how things go next week.

others have going to run get out the vote campaigns and each of them has a different perspective about how they want to show up before, during and after an election, whether in the united states or another part of the world. and we just want to work closely with them to help them adapt their message to what is going on in the country, or the world at that time >> ned, real quick, about jack dorsey an article this week that suggested that perhaps he delegates too much that he's a little it too hands off. what do you make of that assessment >> i love working with jack. he is involved in the most important issues we deal with at the company. he builds the team he sets the tone and the principles that we use to lead the business and i couldn't think of somebody better positioned to lead twitter at this time with all the things that we're navigating i was so proud to watch him offer a real differentiated

perspective around 230 in front of the senate the other day important that the senators in country could hear a perspective that represents millions of websites and apps who want conversation on this service >> all right ned, we appreciate you joining us i would love to have you back to talk about 230 and so much more. you got a big week ahead of you and we look forward to seeing you again very, very soon. make sure everybody has a great weekend, we will be back on -- see you on monday. "squawk on the street" begins right now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber solidly red as q3 earnings for megatech cap don't offer many assurances about the quarter to come covid cases cross 88,000 for first time in a single day dow on pace for the worst month since march. our road map begins with stocks set for another drop as twitter,

apple, facebook an