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 and amazon fall but google is a bright spot.

>> plus, we are closing out what has been a volatile week and it is the last trading day of october. the s&p by the way on pace for what would be its worst weekly performance since june >> starbucks signaling a return to growth, forecasting up to a 30% spike in comps globally next year amidst what they hope will be faster than expected return by customers ceo kevin johnson will join us in a first on cnbc interview during this hour carl >> we look forward to that jim, you've been pretty explicit in your tweets this morning. i know it is hard to buy you have to buy in front of election day why? >> well, i think that what's happened is that everyone is trying to square off negative. betting that whoever wins or if there isn't any winner at all, it makes it so we have to go down we are oversold. there are opportunities. the month was a terrible one i don't think that you can make a lot of money selling here because i don't think you'll be

able to buy back quickly remember what happened in 2016, a snapback no matter what because we have the uncertainty that is gone yes. it is is true. there could be a contested election no doubt but you have to be -- start preparing yourself for an actual decision that comes up if it is a decision other than healthcare, which will be a disaster, if a democrat wins and you have to get out of those today, i see opportunity and i see opportunity with what happened last night. i cannot believe the negativity with which these companies were greeted. i was on the phone with tim cook last night and i got to tell you, the idea that apple somehow had a bad quarter, i feel it is laughable. you didn't have 5g in china. that's all they want so i don't know, i can give you a bull case for everything i'm going to not do that i'm going to say if all the stocks come down viciously, pick at one choose one maybe not choose twitter, twitter did not deliver.

i love ned segal but last night was a great night, not a bad night we decided to indict the evening because everyone seems to have had it with stocks david, having had it with stocks is not something you do in the stock business >> no, but you do need an incremental buyer for companies that are so widely and deeply owned by everybody >> or overowned as you would say. >> you got guys -- we call it hiding in them, right? you think about just apple's impact overall and the percent of what it contributes to the nasdaq, given its enormous size. the question is who is incrementally going to be the buyer of these names despite what to your point and i got the same chorus this morning from the people i spoke to, which is facebook was very strong what was wrong with amazon the revenue guide was tremendous we come in, we knew amazon was going to have a monstrous quarter. cloud was also pretty strong again, it is an expectations game, perhaps, with alphabet, which has been the laggard

overall performance, outperforming and part of a result of that and having what you a you say also is a strong quarter. >> the cfo of amazon, okay, he doesn't get talked about a lot, low key guy, talking about the fact that they had to spend more money on healthcare and covid than people think. is that really a reason to sell? do we sell because -- do we decide, you know what, got to dump that stock, they're spending so much money on healthcare >> 7.5 billion in incremental covid related costs, the first three quarters and another 4 billion -- >> downgrade that one. >> just to fill in the number for people, yeah >> it was unbelievable people think, if they hadn't spent on covid it would have been a really good quarter no if they hadn't spent on covid, elizabeth warren would have a few things to say, you know,

carl, i found last night that very upsetting these are companies, all this he do is get hauled in front of congress, how many jobs does facebook have to create. how many jobs does amazon have to create before someone says, you know what, maybe these guys aren't the real bad guys maybe senator cruz, when -- senator cruz taking twitter apart, you know what he left out? bad quarter. >> jim, your point about employment is exactly right. amazon now with 1.1 million employees, that's up 50% year on year but, jim, i mean, we can't ignore iphone, missed by a billion dollars. facebook says, you know, u.s. canada flat to down in q4. those are things on other periods we have not necessarily heard. >> how did apple not blow the quarter? that's the question. they didn't because the services

remember, if you own a 5g phone, you have 5g network. and what does china have 5g you're going up with a -- you got a 4g in china, for a gap, who would buy a 4g when you can buy a 5g so did apple hit that market right? no but i would say that apple was incredible given the gap that it was -- that all these other products, everything thinks are just the wearables, service -- mac. you know what, they add up to b being a pretty good company. the service stream, suddenly makes it so we don't have to worry about the craziness of apple having a down quarter. >> right where are we on services, jim, in terms of a percentage overall of revenues? >> not high enough yet not high enough yet. >> we talk about it, of course, we talked about it for years and apple has got than higher multiple as a result of the increasing percentage of its revenues that are occurring. that's happened. that multiple revision has happened, jim. >> 34 times earnings what procter & gamble --

>> it is -- >> do you remember when you used to sit here and talk about how clorox had a higher multiple than apple it was a value stock, that's not really the case anymore. >> it is -- look, it is just -- it did surpass clorox, the clorox multiple. i got to tell you something, david, bleach is not some high tech, you know, bleach is a lower tech thing but they had a lower tech multiple than clorox i think -- i want to make this point, okay. this company has reinvented itself it deserves a higher multiple. i begged him and i begged the head of citi, i said, would you please put this on a consumer product goods analyst? but, no, no one wants that, it is a great tech company. but, carl, if you -- if the same people who covered mccormick, the spice company, and they covered kellogg, i mean, come on come on. >> yeah. i knew -- i knew this would get your goat today. goldman reiterates the sell on apple. we see fundamentals more likely

to disappoint as iphone fails to meet optimistic consensus. that's rod hall. hasn't changed. >> he's wrong. but that's okay. i looked at the first amendment. i love the first amendment it says you're allowed to be wrong for as long as you want. not except for if you're michael packer on tesla. he comes out -- >> wasn't it netflix >> netflix yeah, he got that one wrong. he's going to be right for, what, 48 hours, carl god love him he'll be right until monday, maybe tuesday in the wrong guy wins whoever the wrong guy is, i don't even know anymore. >> what does that mean >> well -- >> stockwise, you don't know anymore. >> i see i see. >> this politico piece last night arguing that elizabeth warren will lobby for treasury if biden wins, how should banks react to that. >> they already reacted. they go down every day

elizabeth warren is not a big fan. i remember when i first met elizabeth warren, she had jamie dimon's -- his year ly epistole that he does and she didn't regard it as being the bible she is measured with the banks we put up there versus wells fargo. >> right >> wells fargo is not -- is not a stagecoach >> no. that's interesting story, i have no idea if she would be successful in that lobbying campaign we can talk more about this a week from now if and when we know who the winner is. >> she wanted to break -- >> not speculating who may take certain important jobs in an incoming administration if that's the case. >> she wanted to break up alphabet after last night, i'm talking about a stock, they break that darn thing up, geez. >> on youtube alone, views for guided meditation videos are up 40% since mid-march. >> i've been taking those. they're fabulous

made me relax. >> facebook tutorials billed over a billion times on youtube. a billion times. >> now we're finding out how much youtube is, elizabeth warren personally could take that $1600 stock to 2,000 if she wanted to break it up. >> she is not at the department of justice in fact, she is a senator in the minority right now i don't know why we keep talking about her. >> i don't know. it is a fun parlor game. >> and you like her eyes i know admit it. >> all right >> that's great that you bring that up. that was a story you never to talk about and there it is. >> was that a never talk about in. >> yeah, i'll put that in -- >> i'm getting older i'm starting to forget stuff. >> i know. i find that happens f s frequeny you say negative things about companies and you don't even know what the companies are. >> that is not true. >> to your point -- >> it was an existential crisis. you get home, you're talking to

the ceos of all these companies and you recognize that these are the greatest people, the greatest minds and they are just really fabulous for the country, and you're being a lilliputian how about that line-item how about that line-item how about the fact that you are spending so much more against covid than you should? what is that why don't you skip on safety why don't you realize the safety takes a vacation now and then. these guys are doing -- how can they put these numbers out in an era where most people are scared, afraid of getting covid, don't want to go to the office, and justifiably, this is in the era of covid, these guys are putting these numbers up, what would they do if we actually had a vaccine? just think of that some people said no, they do so well because they don't have a vaccine, like amazon i don't know. >> what did you think alphabet's cost controls, operating expenses, up 1%. >> they're not hiring like mad they're not hiring like the army did, during world war ii anymore. >> they were hiring and amazon's

taken that over. >> if you walked by alphabet, you got higher i walked by. i was almost higher. i said, no, no, i'm not here for a job. >> they pay very well too. >> some of these companies, oh, my, we're talking wall street numbers from back in the heavy days of wall street. >> better. >> exploding offer carl, starts at 300,000. if you -- tomorrow it is worth 250. >> yeah. senior engineer. >> and notified -- >> well into the six figures >> notified by text if anybody has ever known anyone who has gone to work for google, usually get the yes or no via text on your phone you mentioned the strength in advertising revenue, the cost discipline they talked about investing in the cloud last night listen to what he said >> given the progress we are making and the growing global market, we continue to invest

aggressively to build our market capabilities, execute against our product road map and extend the global footprint of our infrastructure with this segmention, you will additionally see information about the scale of our investments. >> jim, you talk about these companies being giants, edelmans and gronkowskis, what does it say that these quarters and outlooks come on a week where they were literally trounced in that senate commerce hearing >> i know. and edelman will not play for three weeks looks like and gronk got his first real good touchdown. that's how i feel about these companies. they're a little edelman-like. he didn't get one target last week he killed me in fantasy. it feels like fantasy down there. are we really -- i got to tell you. when senator cruz was attacking twitter, jack, jack, listen, senator, you know, this is a company that has a tremendous

great discourse. you really can find things out and by the way, the president, i think he was upset i don't know how many times did he tweet last night, carl? he was, like, really in a tweet storm. >> his quote yesterday was they're taking away you'r rights as if somehow your ability to tweet and post content is guaranteed by the constitution. >> i don't know. you any what zuckerberg said, he said, look, we need a little help, tell us what you don't like, and it is a little like when stewart said pornography, i don't know i know it when i see it. i don't know give us some guidance. >> facebook is central to the ongoing conversation that is occurring in this country, right? it is a central news source for so many people, the way so many people get information they discuss it in their call, as you know, they ban qanon and holocaust denial content

they're rejecting ads to discourage vaccines. and they said this is not a shift in our underlying philosophy, instead it is a reflection of the increased risk of violence and unrest and increased risk of harm associated with vaccine misinformation as we near an approved covid vaccine even the strongest free expression advocates don't think you should be able to yell fire in a crowded theater, because they recognize your actions or speech should not be able to put people at imminent risk of physical harm and we have mr. zuckerberg discussing election integrity. >> next week will certainly be a test for facebook. our systems have been tested in many elections over the last few years, election integrity is and will be an ongoing challenge, and i'm proud of the work that we have done here. i also know that our work doesn't stop after november 3rd, so we will keep anticipating new threats evolvie ining our approh

>> what does it say about our country when you talk about increased risk of violence and unrest and increased risk of harm associated with vaccine misinformation >> that's why the fire in the crowded theater was so pertinent. i thought zuckerberg was very good what was his real intent to make congress update the law to make sure it is working as intended, so it is not on their shoulders. it is interesting because cruz was attacking jack dorsey, for being in charge. mark zuckerberg is saying, hey, guys, you're in charge tell us what to do two very different philosophies. and by the way, disturbing zucks talking about jobs, jobs, jobs and how many they create how many do they create versus the u.s. government? facebook down to -- yeah what do you have to do to please the market nothing. it is not going to be pleased, unless you break it up like alphabet >> jim, we'll talk about all of those, and some more and starbucks.

kevin johnson will join us after we see a return to sales growth in 2021, he says nice upside surprise on operating margin meantime, look at the dow's worst performers so far this month. intel and amgen among the laggards there this would be the fourth consecutive presidential year in which stocks were lower in october. we're back in a minute ♪ you can go your own way

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mad dash, ten minutes before we wrap up this very volatile trading week, jim. exxonmobil, a name that lately we have been talking a bit about. we're going to talk more in this mad dash. >> 11 years ago, almost to the month, actually, exxon bought a company called xto energy. they paid $41 billion. david, you always talk about one of the worst deals in history. i'm going to nominate that one exxon is talking about a $30 billion impairment, that was a natural gas company, they bought at the absolute top. i criticized them when it happened i heard from them, i heard from the xto people too and i wish them well. and, david, i think it was an ill advised deal that's what i'm coming down to -- >> i think you're being very kind at this point history shows worse than ill advised. >> this is that new gandhi thing i'm trying out, gandhi 2. >> the next five minutes

what would they do with that money now? >> buy back stock and boost the dividend that's what they were doing habitually what do you think about the oils here, david? >> you've been so rough on them. not without reason oil equivalent production, 3.7 million barrels per day they are talking about a 15% reduction and expected to increase in operating expenses by 15%, cutting capex, going into next year at 23 billion and now they're talking about a capital program of 16 to 19 billion for next year, jim >> what can i tell you they're in preservation mode and it is a structural change, beginning to realize we're not going back to where we were. carl if you look at the curve, well, i'm trying to get carl to -- >> we'll go to him in a second. >> come back if you look at the curve out

five years, it is right here oil is not going up. natural gas could go up, david that could happen. >> i want to leave you with this, though i did take a look at their release page three or four following 12 months of technical evaluation, exxonmobil and a company called global thermostat announced an expanded joint development agreement to advance and bring to scale breakthrough technology that removes carbon dioxide from the atmosphere. >> now you're talking. >> you know what, david? >> what? >> i was once in a movie called ironman. and i was asked what would happen if stark industries got in the ammunitions business. when exxon decides to get out of the oil business, stark industries >> maybe they'll be able to -- >> i got a hat for that. >> it sounds like a pretty big deal >> tell me about it. how about cows, worse than oil companies. >> a lot of methane. >> we should ban cows.

kind of like chick-fil-a >> just keep going, so i'll keep going here as well coming up after the opening bell, live interview with starbucks ceo kevin johnson. keep it here our retirement plan with voya gives us confidence. yeah, they help us with achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement. seeing what people left behind in the attic. well, saving on homeowners insurance with geico's help was pretty fun too. ahhhh, it's a tiny dancer. they left a ton of stuff up here.

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futures remain weak, part of a habit we have been seeing this week as the dow is on pace for its worst month since march. we'll talk to kevin johnson of starbucks in a few moments about the quarter, the guide for fiscal q1, and what is going on with average ticket when we return

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♪ ♪ futures looking weak here as we said before the break i wonder how much of the

weakness all week you think is related to october looks like it is going to close without data from pfizer. stat news out with a piece last night saying maybe it is time to reset our expectations on timing of a vaccine. >> dr. gottlieb this morning, who is so great, everyone has to read or follow him on twitter, he's pushing back the time frame and just saying, come on, it is going to be stage two, certain people will get it before others, i'm not saying it is a nightmare, carl, but it does remind me when we went after polio and we finally saw polio, which took 15 years and you had to go to school to get the vaccine or the sugar cube. you had to line up, people lined up for hours to get it and dr. gottlieb is indicating we're going to have to do the same thing we're going to have to be coherent enough in this country, i think very hard, to have places where we're all going to line up to get it. we're not ready for any of that, carl so when i listen to dr. gottlieb, i was a little

depressed but he calls it as he sees it. the president's view about when we're going to get it versus his are radically diametrically opposed. >> yeah. i think it was when the president left walter reed and he wrote -- he recorded that video saying that vaccines would be out, quote, momentarily is something that is hard to forget opening bell, final day of trading here you guys were talking exxon, before the break, jim, it was interesting, yesterday, as we watched zoom video market cap surpass that of exxon and a lot of discussion overnight about video chat being the new oil of sorts. >> people should recognize that exxon was the largest company in america. and last -- in the last 20 years, there were many years where it finished in the largest, and almost always in the top five, like if you look at the ratings, it was a college football team that every year won and now it is kind of dropped off and, look, is zoom worth what it is selling for you can sell a million shares of

zoom now but it is a zoom economy and when you listen to the conference calls, everyone is marveling how much they can do they mentioned zoom by name, not webex, google, my daughter teaches by google in europe they don't use zoom, but i find that, david, you know this, that there is a tremendous amount of business being done on zoom, which means that travel may not come back like you think it will >> i think that's absolutely true i asked anybody i talked to or many of the people i talked to in the business community sort of the end of a conversation about what their travel plans would be, and no doubt, people are not going to travel as much for business not that they aren't going to travel, of course, they will, but they are going to be more specific in terms of their travel and, you know, and taking those trips they need to and not the ones that were sort of, maybe, they don't need to by the way, nobody expects them to you don't need to go and hug the team in tokyo as much anymore if you run that group for

investment banking you can continue to do zoom and the longer this goes on, the more comfortable everybody gets with the technology. by the way, the more the technology continues to improve, which we all know it will, this is not going away. and so the idea of a distributed workforce and we talked yesterday with the number of our ceos about it, remember we talked to sap about it yesterday. he said 50/50 in terms of how the remote versus in the office. >> yeah, i think -- one of the things that is happening in the comps calls is driving me crazy. they used to say, well, dollar, you know, there is underlying that they're not talking about, which is if you had to get on a plane this deal would have cost much more. there is a gross margin expansion that they're not talking about on these companies, which is how much they're saving by having people at home. it is huge and a lot of what they're making is big.

>> yeah. i don't know if you noticed apple spent more on r&d than sg & a for first time this quarter. you can kind of understand why. >> they're really stay at home which is part of the call, and why i spoke to tim cook too, before the call, is the idea, they're all marveling that they can build things and do things and have such coherence. it is amazing. it is amazing. and you got to salute the business people as i said. let's talk about one that actually people were not that fond of, but the stock had run a great deal and i thought was actually not that bad, and the stock is starting to percolate. let's talk about starbucks starbucks same store sales, they declined for the quarter, you know, guess what, of course, but forecasting a strong return to growth next year as -- in its two largest markets, u.s. and china, they think it is a rebound from the pandemic and quicker than expected. we got to find out why that is not the rap that i'm

getting from anyone else joining us now, first on cnbc, starbucks ceo kevin johnson, kevin, it always is great to see you. but i that i you were too optimistic last night i don't think you can get that bounce back please explain how you think that we can return almost to normal in the era of covid >> let me share with you what gives me great confidence if you look at our u.s. business, we were at minus 65% same store comparable in april of this year, and five months later, in september, we posted a minus 4% in that minus 4% number in the u.s., it includes 3% of our stores that are still closed which is about two points of comp now you're within striking distance of getting back to fully recovered. take china china had 90% of our stores closed in the month of february, china posted a positive comp in the month of september so as we have reopened stores, using these new store protocols that provide a safe, familiar and convenient experience for

customers, customers are coming back and so we now have built resilience into the operating model, we know how to operate in the covid environment, we're serving customers, they're coming back and the recovery has accelerated faster than we anticipated. that's what gives me confidence. >> one of the themes throughout the conference call, good conference call, was the actual sea change in our country, the move to the suburbs from the city you guys dominate the city and i was wondering whether it is going to be that lucrative to do i was hoping what you would do is take advantage of the empty real estate and put the fast through. instead, it sounds like it is the drive through that will make it and also, what do you do with places like the beautiful roastry. i don't want to go to the restrrest roastry. i think it is unsafe. >> the shift we see in consumer behavior has been as people work from home, and school from home, you know, they'll visit the starbucks that is closer to their home so a lot of the shift in traffic has been out of central business

districts, into suburbs, more suburban areas fortunately over the last ten years or so we have been building a lot of new stores in suburbs. a lot of those have drive throughs those are helping us significantly right now. we're not abandoning central business district. what we're doing is what we're calling trade area transformation we're transforming the central business district by repositioning stores and repositioning stores means the following. we're going to shift some percentage of those stores to this new starbucks pickup format because we know that's what many customers in those central business districts want. think of it as a walk through, where a drive through is appropriate in suburban market and so with that repositioning and in some cases we are closing an existing starbucks store that is more of a cafe to them, signing a new lease and repositioning and building one of the starbucks pickup stores, that transformation will take place over the next 12 months. that is also giving me a lot of optimism about the future. why? because anytime you see a

massive disruption, whether it is a technology disruption, a disruption in consumer behavior, i believe it is those businesses that identify the disruption and understand how that is going to shift in the future, those that invest early and get there first are often the big winners. that's exactly what we're doing. we're accelerating trade area transformation over the next 12 to 18 months, in those dense metropolitan areas, and that's going to serve the company well. >> kevin, existentially, you and i know each other for many, many years, the third place, place i like to go, read the paper, people still read papers, read a book, one on the upper east side, i had some time, sit there for a while, how can starbucks be our third place when it -- the there some people who don't wear masks, who seem to be bent on infecting me with an illness i don't think would be very good to have. >> it is a great question, jim what we optimized for right now, today, in the world of covid, are customer experiences that

are safe, familiar, and convenient now, by being safe, all the store protocols we have, we require masks in our stores, we have social distancing in our stores, we know how to operate in a safe environment. now, what a lot of people are craving right now, they have been sheltering at home, working from home, schooling at home, is something familiar that's what we optimize for right now. but, we're doing it in a way that really preserves that third place experience, because think about what is going to happen post vaccine, post therapeutics. you know, we're all kind of suffering from this shelter at home fatigue we want to get out, human beings want to get out and want to socialize. they want to be part of a community, they want to sit there and enjoy their coffee with others in their community, or with their colleagues or friends or they want to sit and read the newspapers in our stores what we found today, we opened over 60% of our stores in the united states for limited seating. and the minute we open for

limited seating, customers come back and they're in the store, limited seating. here is my prediction, once we get post vaccine and post therapeutics and we're able to reopen that third place, there is going to be more demand than there has ever been because people are craving that third place experience we are craving human interact, we're craving the opportunity to be a part of a community and to socialize with others, and so we're going to serve safe, familiar, convenient now, but we're setting up for that period post vaccine, post therapeutics, where people come back and they enjoy that third place experience that they have known for decades. >> kevin, we all look forward to that day between now and then, i wonder if you can explain to viewers what is going on with average ticket is this about more food orders, more multiple beverages, plant-based, alternate dairy should we be thinking of starbucks as maybe not such a coffee story as much as we used

to >> well, first of all, it is primarily driven by group orders and, you know, we're selling more beverages, it is multiple beverages to start with. we're a beverage first company, the fact that we hand craft those beverages and personalize them for customers, you know, we're staying focused on that, and what is happening is, in this world with looking for safe, familiar, convenient experiences, someone is going to starbucks run for their family, for their colleagues and buying multiple beverages, and food attaches at an all time high so that's driving up average ticket and you see that's also reducing the number of transactions because it is just simply group orders and that's the phenomenon we see right now. >> kevin, i want to talk about china, which continues to be such an important market for you. david, by the way. 260 stores in the fourth quarter, i think you're still up 14%, 581 stores over the last 12 months despite what was the delay there or not being able to open any for the last few months what are you seeing in china on the ground, down 3% in revenues,

will it get better from here >> i'm so proud of how our team in china responded you look at what they went through last -- late january and into february with 90% of our stores closed. and since then they went from 90% closed to in the month of september positive comps not only did they go through that whole era where we had to slow down new store development, but over the last quarter, that new store development reaccelerated as you pointed out with 260 or so net new stores built. that takes us over 4700 stores in china, you know we remain committed to continuing to build that 600 net new stores a year as we look forward. and we're very bullish on our business in china. china we now have for most part it is full seating in our stores, we have the safety protocols. people we are maar masks we get the daily information on the number of covid cases, there is very few in china when they have them, they take very quick

action to test and trace and deal with it so fundamentally our business is getting back to a normal state in china a lot of that has to do with the great team that we have on the ground and the way they responded to this entire pandemic >> kevin, you know, i think you have done remarkable work in china, and china is it going to be one day bigger than the united states. but we have a critical election next week. the president has -- has gone from being i would say constructive to being destructive when it comes to china. it is -- they're trying to keep it as a cold war, not something worse, or something best if you're some people in that administration don't you need biden to win to grow like you want to? >> well, look, jim, we have been in china for over 20 years, we operate in over 8 0 markets around the world, we deal with geopolitical situations all the time and the geopolitical tension that we have kind of seen between the u.s. and china over the last few years has not impacted our business.

in fact, we stayed focused on what we do well, which is we build a beautiful store, we have great partners and proudly wear the green apron, they create a wonderful experience for our customers in china, you know, and that formula works for us. we're very bullish on china. i'm proud of our team. in fact, we're going to continue to invest and build new stores, great beverages, they came out with a new tea platform that we're selling in china, in our stores and, you know, we're building coffee roasting plant, a coffee innovation park in china, part of our global supply chain. >> i want to stop you there, i want to ask a final question on china, more for all our viewers out there who hear about alibaba, the ant financial ipo, you're connected into the digital economy there. tell the viewers about where they are in terms of payment and how they operate things when we hear about alibaba which owns 33% of it, what do you think

about those companies? >> first of all, you know, in china, the chinese consumer is the most digitally oriented consumer in the world. if we just look at the percent of mobile payments in china, it is huge. and driven a lot by wechat pay and ali pay. the fact that we established this china digital partnership with alibaba years ago and even just this last quarter where we're with wechat and, you know, partnership with pen chat, we expanded even the reach of our starbucks reward program we had 34% increase in the number of active rewards customers in china and much of that is because of the relationship with alibaba and the fact that chinese consumers embrace digital at a far faster, far deeper rate than any other culture in the world >> look, kevin, look, stock is unchanged, down 90 cents, doing

well you've done remarkable since the bottom at 50 want to thank you for coming on "squawk on the street. kevin johnson, who is the ceo and president of starbucks carl, back to you. >> thanks, guys. >> all right jim, to rick santelli this morning with chicago hey, rick. >> good morning, carl. we're a few seconds away, but we're expecting to read less than the 62.4 that was last month's look that was close to a two-yore high, 61.1, so subsequentially it is less than 62.4, but it is much better than the sub60 number we were looking for once again, we continue to see some of the data points outperform, we see treasury yields firm. and there is a lot of question marks as to how the economy is coming back. but it is hard to argue with some of the solid data points. carl, jim, david, back to you. >> all right, thank you very much when we come back, electric vehicle maker fisker debuting at the big board today. we'll talk with the ceo in a moment in a few moments, rackspace technology will enter a

new and exciting chapter. across muti-cloud, apps, data and security, we focus on solving the business problems of our customers with technology we are a type of company the market has not seen before. going public will further invigorate our mission to embrace technology, empower customers, and deliver the future.

viewers of "mad money" know this is probably one of the most exciting stories out there, next tesla, perhaps, what they talk about. yes. it is fisker it is making its debut on the new york stock exchange. with the ticker symbol fsr the electric vehiclemaker, okay, it was a reverse merger with the spacs, that's how the companies become public. they don't use traditional public methods joining us now is a man who is second only to elon musk, someone that people talk about, it is -- his name is henrik fisker, i want to introduce him to everybody tell us why we should even care about a company that has no real vehicle that comes into 2022, makes no money whatsoever, and, frankly, a lot of people say is air. >> good morning. good to see you again. the reason i think this is so exciting is because, you know,

the ev market is developing. there is only less than 2 million evs sold globally. but the total market is 80 million. we are seeing a slow uptick now, but in 22, 23 is when it is going to explode when you really see the ev market coming together. and when you see the market come together and accelerate we are now starting the developing of a vehicle. it matters if somebody wants to come along for the ride. we are transparent of what we are doing. our first milestone is already 15 of november we have already built the prototype and will show up next year in may at the auto show it is a very exciting time it is the fifth car company in america that is public after tesla. so there is only two electric

car companies in the u.s. which is exciting. >> what do we get if we buy fisker a great designer, a concept company that will make us love something that may or may not come in 22 what do we get or do we just get you? >> no. we have hired an amazing team. i think you should look at us a little like apple and foxconn. apple don't make their own phones but they have a great overrating system a great phone and design we are focused on being a digital car company. it is a whole new customer experience i don't need to prove i can make a car better than toyota

that's why together with magma which is the third largest supplier they know how to build cars. they build mercedes, toyota. they will build a high-quality car. you have seen how difficults it to get a car into production why should we go into the pain of getting the high quality and ramp up the first year that's a totally different business model than anybody else out there. >> i can understand why you want to compare yourself to tesla but others will see a comparison to nikola you've been around for a while not as though fisker -- you were

founded in 2007. you had the car that didn't work at that point. what do you say to those who wonder if you are another nikola >> we have already built prototypes that we have shown. we have done amazing deal with magma which will take 6% stake we have a complete different business model here it takes two or three years to make a car this is reality and you can't make it any quicker than that. you can't go through any engineering and tooling. we have gone out and raised $1 billion. we are not like the other start up companies that go to these

rounds before we can get a vehicle into production. yes, i launched back in 2011 about waund a half year before the model s came out from tesla. those were the early days from battery systems. today, we are looking at a new type of world where you've got giant battery companies, which by the way they are using. we are using pan sonic and all the sales are pretty similar all the fight will be about affordability creating a great product and customer experience. the key here is a different customer experience. we have a flexible lease i think we'll set a whole new trend here with our company. >> it mean oil that cumbustion

faces true reliability and true overlap where this movement is more gradual than you think. >> i think that will happen anytime soon between electric and gasoline we see an amazing amount of regulations coming in europe and china as well you can only survive if you sell cars in your own country i think well be leading in the u.s. with the best electric cars we'll get in now to this huge market share i believe in 2030, in about 9 or 10 years from now

we'll be mostly electric in the u.s., we are a completely free market and see the surge of vehicles here. once people drive electric, people realize it is a much better car to drive. you have instant acceleration. it is quiet. you can make a phone call. plug it in at home you don't have to take it to a gas station. no scheduled maintenance >> i was a skeptic and then bill mcdermott, good friend, ceo of service now joined your board. he seems to be attracted to your great design accomplishments in a very short time, can you tell people what you did design besides the karma. >> the bmwv 8 sports car

very early at ford with vehicles and other vehicles at bmw. bill is an amazing guy what we talked about was really how the entire industry has to change and become much more customer focused the auto industry hasn't changed in 100 years it is the only industry that has not changed. it still takes 3 hours to buy a car. you have to sign 100 documents and wheel and deal and you are still not sure whether you have bought the right car he really understands the digital transition i'm so glad to have him on the board. >> great stock is trading higher. great to see you

rowan trollope, five9. have a good weekend. monday, huge >> that's right, jim see you this weekend when we come back,nd uerarmor ceo. stay with us

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welcome back to "sqwawk on the street." last breaking news of the week in october final read in university of michigan sentiment. we take our midmonth and toss them now 81.8 an improvement the best read since march when it was 89.1. it znlt end there. current conditions solidify up to 85.9. the one i was paying most attention to was expectations. they took a bit of a ding. hard to predict what is coming down the road. from 78.8 to 79.2. the two inflation gauges are

both as expected if you take the short view midmonth to final 2.6 and long vision 5 to 10. >> back to you >> thank you so much good friday morning. welcome to "sqwawk on the street." and for the hour, a little more selling to close out the week. part of the reason is apple. for the fourth quarter earnings. looking at that, right, josh >> apple beeating at the top one big soar point, iphone revenue dropping 21% and missing the street estimates that's rare. stock in the red this morning.

ceo tim cook making two points one, that some customers put off buying iphones because they were waiting for new models to hit the shelves. and noted this fiscal q 4 was different saying this time in the last few weeks of september, we did not ship iphones. we have a big compare issue we knew would occur apple did not offer q 1 guidance cook pinning that on the pandemic telling me the case counts are climbing in western europe and the united states there is a sufficient level of uncertainty out there. we don't believe that's an environment to buy into. cook offered generally positive commentary bullish on the franchise saying he launched four new models for the first time ever, so there is really something for everyone. 5g is a once in a decade

opportunity. we have a large and loyal base we have challenges as well those iphone sales are not very strong >> turning to the other big stories of the day, amazon, alphabet brent phil joining us to talk about those numbers as well. good morning >> mark, let's start with amazon talking about how the margins are holding. >> we've had a stock up on the

year you needed a realpositive inflection point delivered on what the bulls would deliver more the one negative was below expectations that will spend something like $11 billion in 2020 on covid specific costs, which means they should set up the company really well for operating expansion >> to that point, the right investor mindset is to think about it as you are going into this cloud of uncertainty among the virus. there is uncertainty to mitigate you'll have arranged the whole new audience and those costs

will come down >> that's right. the biggest overhang now is on growth to mark's point, profitability will grow the business accelerating the ews back log. these are really high margin businesses that can offset the retail business. ultimately no other retailer the family is. we continue to see of the big three megamembers at 60% market share in google and microsoft. it is a runaway freight train. that will continue to drive higher profitability moving forward. >> so many different names to get to i guess let's start off. the stock is getting hit as so much are other than alphabet

this morning >> facebook gave us what the bulls wanted the one negative here similar to amazon whether they would guide total expense growth probably some conservism in there but i think the market wanted to get more on the return that really was the negative i think facebook is showing you. we are seeing this now with snap, pintrest, twitter and google we've seen this dramatic opportunity in online growth rates. i know we are not out of covid but coming out of the depths than we were going in. it says something about how resilient these ad models are or showing us the investment dollars. i think you will i think you'll find people

willing to take these higher >> how about google? how did that one become the surprise star especially with the cloud over it going in with that fresh antitrust lawsuit from the doj >> expectations were super low more the value player. i think the least ask on all of the names we cover i think you saw good acceleration with youtube. this last quarter, the cloud accelerated. the search is coming back. for the first time, we are getting more transparent management team. many piers have a lot more metrics. they are being slightly more share holder friendly. that is helping with more

confidence in their business again, expectations and valuations are really low. that expectation and goggle going from here. >> you've raised this question that can it meaning fully expand to support advertising growth. what do you think for this quarter? >> i think there is a bigger issue. it has to do with product development. the path across the sector has been product innovation. you don't see that consistently at twitter they have this new map ad product. mobil application ad product delayed in q 4 and now they are pushing it out if twitter had one overhang, it is how well do they innovate on product innovation that track record has been poor.

the only company by the way, that happened. other assets didn't see that it is kind of like two question marks in the stock they've been riding up into the great new thesis and just ee p evaporated i think you stay away from the stock. >> brent, you agree. what happens to the long-standing notion that social media and particularly in twitter is supposed to shine in election cycles. >> i think the revenue numbers are great. the overhang is the user number, right? last year, they added 6 million users. they've already added 35 million. i think the revenue numbers are good the user numbers are slowing i think we've all been under we well ammed by the product

innovation we've drifted to other sources of information beyond twitter, so i think ultimately there is still a lot of hang over of innovation of the system that won't be solved until the next quarter or two. we think facebook, amazon and google are in better positions we have a hold on twitter. >> fascinating turn, guys. a lot of information really helpful good to see you both have a great weekend >> after the break, shares of sports apparel company under armour are up. numbers are better we'll talk to the ceo patrick frisk right after the break. it is a first on cnbc interview you will not want to miss. we'll be right back. this is decision tech.

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dow down 174 under armour shares. beating expectations as demand continues to grow for home and outdoor workout apparel. joining us now on a first on cnbc interview thank you for joining us

>> thanks, sara. >> how much of this improved environment you put out today has 20 do with the fact that we've recovered from all the stores being closed and the economy slowly reopening. >> a combination of things as consumers were able to get back into stores and as we had a different back to school than would normally happen and we've capitalized on we also have inventory we are still left i think a combination. we've seen the consumer return at strong levels

when they are in the stores and shopping not only forever us >> they are buying more. inventories still remain high. why? what is the reason behind that and how does it affect things going forward? >> they are high in terms of the double digit some of the bleed in from q 2. reality is that we have a lot of good inventory there we'll be able to get rid of that inventory in q 4 i think if you look at our track record over the past couple of years, we've been able to manage well over the pandemic i would not be too concerned over the inventory now

especially as you look through to q 4 and 2021. >> the question is can this momentum you've shown continue you did issue guidance with rising case loads and mixed spengd, what do you see in front you for the coming quarter >> for all of us that are dealing with this pandemic, pending on what happens with the pandemic but we believe what will continue with the brand and the consumer we continue to do better we've prepared for this for a long time. we operate better. we are able to get the right stuff, the right place at the right time if you remember in our last earnings poll, we were add mat to drive our pipeline through q 3 with great success in both

foot wear and aware in men and women and across regions we are not slowing down in q 4 we feel we are prepared for holiday with the right product in place we are feeling good when we look around the corner to 21 that will continue. >> i wanted to ask about innovation it does feel the concerns around the stock is an issue. you've got two aggressive competitors in adidas and nike they've been doing better. how hard is the fight to get back to shelf space as stores reopen it is hard we are doing a good job in our go to market if you back up a couple of years ago. we weren't able to execute at the same level now with one brand platform we've been

driving through the entire year 2020 consistency is key and resulting in new innovations in this fall, we've dropped new runni running shoes. new training shoes and we are very excited about our new women's basketball shoe and the flow platform. i believe for us, it is about driving that innovation agenda and about executing well and stay egg on message with a consistent message that we know is resonating with our consumer. we do that really well, we'll regain shelf space we feel absolutely confident about that >> if you look at some consumer trends now, there is high demand for masks. you've jumped on that with athletic masks

i see them everywhere and also a big surge in sweat pants how much do you benefit from those poe individual perspectives now and being able to keep up with demand as well >> we were quick to come out with a mask specific for athletes that was key for us. it has high functionality that fits well. you'll be able to use it while you are working out. we have different colors and we came out with the new roth mask. we'll continue to build into 2021 you are right, there is that other aspect of what people are wearing now when they are home more than they used to be. there is a bit of trend in terms of what people are wearing at this moment of time. the majority of what we sell make people better

so perhaps more a performance specifically we are benefitting to some degree to our trends >> wanted to talk about the my fitness pal sale why are you still in that mode of looking for businesses. trenching and looking to find out what is not core and get rid of it. >> the my fitness pal and map my fit are two different platforms. it has taught us a lot over the last four or five years we've owned those. as we've done more and more work on the specific target mindset, we found we did not have as many of those consumers on the my fitness pal platform the decision was good forfeit necessary pal to allow that brand and platform to continue to grow unhinged so to speak for the full potential

at the same time, accelerating the work we've been doing on map my fitness where we've had our millionth shoe, which is a massive achievement. that's the plan. that is more defined and focused. we believe both will benefit here it is a win/win situation and we think that will drive the strategy going forward >> how much did it hurt not having curry in the bubble >> it hurt it hurt. i can tell you we are excited about the new curry 8 coming out. we are excited about our relationship with curry and the curry camp can't wait to see him play and i know he can't wait to get

out on court >> patrick frisk, thank you for joining us >> thank you, sara >> under armor shares up 4.6%. now for etf spotlight. we'll look at the xle ticker only down 50% this year. big oil is one of the keys there. chevron, exxon both reporting earnings chevron was a beat can you see that reflecting that stock is up. reporting third straight quarter of losses. cutti cutting capital spending and talking significant staff rectnsduio the exxon mobil 10.7%.

our cnbc all american survey asked americans if they trust the pharmaceutical companies working on vaccines to deliver them and when they do, will they actually take them what are the details is it. >> huge story. finding only a small majority of americans trust big pharma to wait to deliver a vaccine until it is safe and effective key demographic groups create a potential road block towards the wide-spread vax ination of the country. 39% are concerned these companies will rush due to political pressures or profits 20% say their concern is companies are motivated by profits. 12% worried about political pressure

62% of republicans trust big pharma, just 47% of democrats. independents look more like democrats than republicans on this issue another interesting split here, an even bigger one, women 18 to 49 are among the most skeptical groups that's a critical group when it comes to a family's decision whether to take a vaccine at all. more interesting here is that differences don't show up generally in the industry. about average when it comes to the public's trust 28% say they trust the industry quite a bit. online retail is less familiar above the national news industry social media, we'll talk about that, they are in the dog house with the american public i think the takeaway when it comes to this vaccine is politicians and the industry

have a lot of work to do in convincing the public about the vaccine and the approval process. that would be true when it comes to winning the election. >> back to sara, i guess you come into that younger range of 18 to 49-year-old women. >> i'm in the middle of it i'll listen to the experts i hate the politics of the whole issue. interesting findings shares of coal galgate on te move it expects net sales and/or beganic sales to be up people are spending on their teeth. ocr galehat with inviz line and prte& mb stock hitting an all-time high today. more "sqwawk on the street" in two minutes.

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good morning, everybody. i'm sue herera with your cnbc update hawaii is the first state to cast more votes in this election than 2016. texas will likely be the second. numbers up 60% from the last election the u.s. has set a new daily record for covid-19 cases. roughly 90,000 confirmed on thursday new records continue to be set in europe as well. belgium and the netherlands reporting new highs. in the med terrain yan, a strong earthquake shook turkey and

greece one victim drowned by rising sea water. >> in paris, protests against lockdown and curfew mooezers coast cases fill 60% of hospitals. lack luster iphone sales or not enough guidance the reason behind the decline let's break that down. apple analyst from bank of america. why is the stock down this morning? >> hey, david. if we rewind back to 90 days ago, the september quarter was something to refer to. now we got results of the september quarter, it appears the december quarter will get sto deferred to the march quarter. we have a moving target not

getting much clarity to the cycle is really going to do. meanwhile, the stock had been up 100% over the past year. and 200% since the beginning of 2019 we have high skbektations. this is just a reversal of that. >> the shipments in terms of the ag phone we've been talking about waiting for for some time. will that turn things around the multiple of 34, 35 times estimated earnings >> that's right. i do think iphone will be key metric to watch. data points do show numbers are improving. to the earlier question also, one of the issues of september quarter was not just the iphones or the number below, china is pretty low if you go back to look at it,

apple china is lower a lot is iphone related. there are some concerns they'll be losing share in china maybe those can offset that if iphone numbers move off that >> i had to go back and look august 5 concerned about gross margin pressure, volume risks you cut to neutral the low of that day was 108.90 how does that grade. the fact that it has gone nowhere, you'll be looking at ways you might upgrade in the future >> thank you for the question. you are right. when we down graded the stock in august, these were some of the concerns we had. we thought the cycle upside potential was sort of already

within the stock we thought that could be some pressure on gross margins. apple has done surprisingly better than we expected. increasing at high end and maintaining lower spectrum increasing 12 versus 11 like by $130 they kept at the high end. depending on the mix and how those gross margins track. watching the supply data points. will those get better. how long will carrier incentives last a lot of unknown if you heard last night, apple management said these expectations don't get any worse november to december we are seeing a lot of store closures including apple in

france a lot of risk to the down side >> i was going to ask you about the lack of guidance but still with an upbeat tone i'll probably say if you look up at the trading. with the analysis of the 5g phone. for the last few quarters when we are having store closures and

reopenings the numbers have not held up but we don't worry too much about store closings in the cycle. i do think the 5g iphone numbers for the next calendar year >> we've seen the expanding multiple make this just a riskier stock for people where we are going to see perhaps more significant responses to success as well. >> the stock is trading at 10 times now trading at 27 times. to say this is not related to

consumer staples in the back drop where cash flow is relatively stable. clearly they have in pulling the franchise together creating 70 million iphones. from an execution standpoint, there is not a lot but the stock is reflecting that, the 270% that is clearly something that the stock is already reflecting. we have to be aware of the fact that in these sort of multiples well inflated for the fed reasons. the fundamental being rerated for the safety stock and the view of the pandemic and then there are other concerns around the licensing payment. there are a multitude of risks out here

that does show some real risk. >> you point out that does point out the taking of $122 million in cash. thank you both >> thanks for having us. >> thank you >> apple, one big reason we are seeing a selloff in tech nasdaq down. take a look at home builders down since june. the only outlier there is mohawk strong demand thanks to home purchases and remodels shares up almost 12% back in a minute

over 200 companies have increases their dividends isth year find out which is the best value to own more "sqwawk on the street" coming up.

at calvert, we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert. cnbc has been taking a tour of the battleground states ahead of what should be election day

on tuesday brian is in minnesota with a new story. where are you exactly? >> we are in dodge center, minnesota. a key ground state both candidates will be visiting minnesota today. president trump was supposed to be doing a rally about two blocks from where i'm standing he'll do it instead at the minnesota airport. this is dodge center you can see the streets are empty. certainly the buy fifurcated american economies leaving areas like this moving to areas where there are jobs. this state will be determined in wisconsin and others like this it is not just areas like this

where the president's message resonates. we are also dealing with the covid story. minneapolis, st. paul, urban areas dealing with covid, dealing with cold weather and trying to run a business like a restaurant by sitting outside. we had a chance to speak with justin, he has a number of restaurants in the area. his message is mainly, they need help >> the pivots we were able to make helped us limp through these summer months. in the midwest where it is starting to get cold patios are starting to shut down the spaces aren't large enough to social distance with the current mandates there was some is saving grace for a little time, we are

nervous going into this winter >> the candidates who will both be in the states today have very different messages trump is sort of skipping over covid going more long term biden saying about covid, i'll handle it better, take care of it better. residents here dealing with a double whammy. job loss, covid, social unrest minnesota is a state clinton won. 235,000 votes with enter to third party candidates trump in rochester. with err in dodge center, minnesota where it is cold >> we are so lucky you are on

the road for us, eyes and ears so important that's our brian sullivan, in minnesota. >> molson selling 3 million more cans of beer than previous that's just in the u.s the outlook and more the dow down 440 ♪ ♪

♪ ♪ ♪

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it's your wireless. your rules. only with xfinity mobile. we've been talking about the mega cap technology companies, all of which are down significantly. apple, facebook. but you can see the s&p giving up ground now down 2%. it has been a difficult week, if you were along the market. we're almost back to flat on the year moving on, molson coors beating on the top and bottom lines yesterday. let's get to our frank holland he has the ceo of molson coors in a first on cnbc interview frank? as you can see, we're having

trouble with frank's audio at that point sarah, carl, we're keeping an eye on the markets it's been a difficult week if you're along the stock market coming into today. the earnings that we've seen from the big cap mega tech companies have disappointed, i guess, is the best way to put it, even though they haven't in terms of meeting or exceeding analysts expectations. >> and that's kind of been the story so far of earning season, david, you've had a number of beats and high-profile beats like microsoft, even, etsy, but the valuation picture is different for the market the bar has been raised and a lot of these better than expected quarters just haven't been treated that way or rewarded as such and they've been punished pretty hard. i guess that makes for a challenging backdrop, david. two main reasons cited for the sell-off, number one, rising covid cases and along with that,

some real economic impact in places like europe where you've seen a partial lockdown this week of germany, france and a number of european countries that are dealing with skyrocketing cases and does suggest that it's -- that we're a few weeks behind we heard that from some of the experts. what kind of regional lockdowns are we going to see? are we going to see the hit on consumer confidence on what's been a bumpy economy we did get better number on personal spending today. and the election, days away. >> yeah. >> it's tight. it's close there's still a risk of a contested election and you hear from investors that we have on the shows that they don't necessarily want to be in. i think we are -- >> only a few more trading days ahead. we're going to get to frank now. >> go ahead. >> you saw his audio was not working. we've got it working now frank, take it away. >> david, thanks, again. take two the ceo of molson coors, thank you for joining us, this

morning. >> thanks very much for having me, frank. >> we're going to get right into it today is the one-year anniversary of your company announcing it's revitalization plan sales were down across the board, especially in europe and your sympttock is down 35% how do you plan to improve the stock performance and the sales performance? >> that's why we launched the revitalization plan a year ago, tomorrow, actually, and we've had two very good quarters of beating top and bottom line. if you look at the performance that we delivered against our plan which we took the market through yesterday, the progress that we've made, despite everything that's been thrown at us this year, i'm proud of it. seltzers is a big part of that strategy and i'm pleased where we are. >> speaking of where you are, we're talking to you from one of the sites where you plan to

boost your seltzer capacity. can you tell us the strategy behind your core seltzer brand and your partnership with coca-cola. >> i am. i'm down in the ft. worth, texas, brewery today we invested a ton of money behind our seltzer strategy. i had a look at the new packaging line and the new filtration system and we'll be in a good place to meet them both of the brands have exceeded our expectations they're very differentiated and the consumers are seeing that. we're having excited about hard seltzer, the partnership that we've entered into with the coca-cola company. and that brand will come next year and we'll be launching

proof point. those seltzers are going to be a powerful combination and those are the four brands that are going to take us to double-digit share of the seltzer market. >> gavin, strong beats on profit for this quarter however, you have two big variables for your business, one of them being covid-19 impacting bar and restaurant sales, the other one being the inflated prices of cans and also the limited supply of cans how do you mitigate both of those in the next year >> well, from a price per can point of view, we haven't seen an material increase in cans we have seen, just like anybody else who is putting anything into a 12-ounce can, there's a shortage of cans we have cans coming from all over the world, first should arrive at the end of december. and we've sold 300 million more cans this year than we did last year we've just commissioned a new can line in our golden area

which will be able to produce 750 million extra sleek cans for us next year we're well positioned to meet our goal of 10% share of the hard seltzers with that new sleek can line >> all right gavin, the ceo of molson coors, thank you for joining us carl, back over to you obviously, a sell-off in place. dow down 420 year. bear in mind the rush to bonds, not happening. in fact the ten year is yielding more than 85 basis points. that's going to take you back to june a lot pinlay here we'll cover for of it when we come back.

sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

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♪ good friday morning. i'm carl quintanilla with jon fortt. investors playing defense once again today. it's been a wild five days for the markets with the dow on pace for its worst week since march the dow down about 427 of course, we're watching covid levels and the potential for lockdowns, but also big cap tech which is tough when iphones missed by a billion, facebook flat to down >> i really drilled down o