the index is down 10% from its record highs for the month the dow fell 4.5 pshs, again, it's worst month since march and second down nont a row the stp and nasdaq coming off two-straight losing months as you can see here the moves in october not great hanging into november. but it wasn't all red arrows we have been keeping an eye on small cap stocks they fell 1.5% on friday, they did end the month higher by 2% for their sixth-straight positive month or sixth positive month out of seven crude under heavy selling pressure u.s. benchmark currently $35 per barrel, 2% of the downside here for wti crude.

remember, lockdowns across europe are beginning to go into effect and that's sparking demand fears much more on that coming up. but first, around the world, a mostly higher session in asia over night on china manufacturing data hang seng in hong kong up 1.5% europe is getting their day started. we're seeing positivity in the european markets ftse 100 up. sticking with europe any developing story this morning as more european naxs reinitiate coronavirus containment measures similar to what we saw back in the spring france, germany, ireland, austria, belgium and more are now moving forward with new lockdown measures and the united kingdom announcing over the weekend it plans to do the same. cnbc's own steve sedge wick

joins us now are these measures being received well in the united kingdom. >> reporter: no, not at all, dom. people are incredibly d disappointed the problem is on friday there was a briefing the prime minister met with the chief scientific adviser and the chief medical officer. they said to him, look, if you don't do something, if you don't do something drastic, we could have 85,000 more deaths over the weekend. we could pique at 4,000 deaths per day and that language and those concerns with huge hospitalizations with nhs getting potentially overwhelmed to force the government into a cabinet meeting on saturday whereby they agreed to have a new national lockdown. now, depending on the vote that happens in parliament later this week on thursday, we think that will happen from thursday as well we have a new national lockdown.

no pubs open no restaurants no bars. no gyms. no swimming pools. no essential shopping -- nonessential shopping at all no places of worship open as well schools, colleges, universities and nurseries will stay open as well and only allowed outsides for visiting members of your family in your support bubble and essential work like we do here giving people the news from the ground here in london as well no holidays. you can't holiday in the uk and you can't get on a plane to go on a holiday either. all non-essential travel in uk will be banned on thursday >> steve, is there any help coming from the government with regard to easing the burden that will happen when these lock joubs do occur here in the u.s. we're in a stalemate with our talks over stimulus plans further stimulus what's it like in uk and other

places in europe can the citizenry help on the government to help bring the gap. >> reporter: that's an interesting point and big difference between what happens in washington and what happens here basically they have been handing out checks left, right and center there is no split parliamentary system the furlough scheme has been expended which means the government will cover 80% of worker salaries those unable to work because of lockdown where is the money going to come from how much extra borrowing can the government have. quite a lot more to come this needs to be paid for somewhere. >> big deal there for sure steve sedgewick live on the ground in london we appreciate it.

one day to go with our big election day with more than 90 million early ballots already submitted. a new national "wall street journal" around nbc poll is out showing president trump trailing former vice president joe biden by 10 percentage points. this amid new controversy from the trump camp the president telling reporters while he does not plan to declare victory on election night, he is planning a legal challenge to stop any ballot counting once election day is over tracy potds joins us from delaware what can you tell us about the new salvo against the voting process in president trump's campaign. >> reporter: i can tell you it's not unexpected given some of the comments he made earlier and i can also tell you there's an army of lawyers on both sides, both campaigns, democrats and republicans. the parties that are waiting to deal with the election results

and watching how this election proceeds tomorrow. meantime, the campaigns storming ahead with getting those battleground states on their last full day of campaigning >> reporter: stage construction is under way at the chase center in wilmington, delaware, joe biden's election night headquarters. >> people person loves walking around, talking to people, loves taking pictures. >> reporter: we found biden and trump supporters planning to vote tomorrow. >> i want to go vote in person i want to know that my vote was counted. >> reporter: on this last full day before polls open, biden is back in nearby pennsylvania. >> president trump is terrified of what will happen in pennsylvania he knows the people of pennsylvania get to have their say if you have your say, he doesn't stand a chance >> reporter: you're years ago president trump won by the narrowest margin in nearly two

centuries. state officials predict the vote count could take days. >> nearly 2.4 million pennsylvanians have already cast their ballot by mail it's going to be ten times as many as the last time we had a presidential election in pennsylvania >> reporter: president trump starting in florida this morning and visiting four more state includen's biden's birthplace scranton, pennsylvania and michigan. >> two days from now we're going to win the state of michigan again. >> reporter: it's his fourth trip in a week. >> over the last four years i fought for michigan like no one has ever fought for michigan >> reporter: four years ago he narrowly won michigan, but a narrow win is a win. the president once again counting on the unexpected now you talked about the nbc "wall street journal" poll that shows biden going into this with a big lead breaking down those results, dom, it also shows two thirds

say they voted early or plan to and there's a big -- biden is largely favored among that group, but among the quarter or so who say they're voting on election day, it's exactly the opposite most of them say they're voting for president trump. >> it will all come down to those big swing states tracie potts, thank you very much. and be sure to watch cnbc election day coverage all day tomorrow with special coverage starting at 8:00 p.m. eastern time continuing overnight into wednesday morning. i'll be with you guys for that it also starts right here on "worldwide exchange" and goes all day. outside the election, ceo is speaking out again against the new pan-european lock jouns. seema mody has that. seema, good morning. >> good morning, dom that's right outspoken ryan air ceo taking aim at europe's new lockdown orders on "squawk box europe"

this morning he called the response mismanaged. >> we've already had the first lockdown in the spring then essentially wasted the summer and we as an industry have been calling for much more aggressive test and tracing if he had a more aggressive test and tracing provision or as boris johnson promises world class testing and tracing we don't have in the uk we could and would avoid a second lockdown. >> reporter: the budget airline reported a 78% drop in revenues between april and september. their first summer season loss in decades. dunkin' brands acquired to be acquired in an all-cash deal of $11.3 billion inspire brands the owners of arby's, buffalo wild wings and sonic drive-in plans to take dunkin' private at $106 a share. other quickservice news,

friendly's entered into a sales agreement with amici partners. friendly's filed chapter 11 in order to initiate the sale and deal is expected to preserve thousands of jobs. the market may have been done, hedge fund titan david einhorn saw his fund raise 7.7% inoctober for its best monthly performance all year green life funds are down 9.6% on the year. now, driving majority of the funds gains in october, dom, home builder green brick partners that stock by the way up 11% for the month dom? >> building trends seema, has been massive so far this year. thank you for the update we'll see you later on. last week's selloffs in the books the s&p 500 is now below the level it was on july 31st. it closed that day at 32.71. according to the folks over at cfra research, there has only been one incumbent president

re-elected when stocks were lower between july 31st and election day in data going back to world war ii. that was president dwight d. eisenhower in 1956 when the market was down 7.7% during that three-month span joining me now is chief strategist at principal global investors. we keep looking for some other kind of element with regard to the election and what it means for markets down the line. it is really that simple should we be focussing so much on the election right now for what happens in the market going forward? >> hi, dom no i think it's important we have to remember the election is a short term noise inevidently it seems at the moment there will be volatility around this election come january, when things are resol resolved, you're likely to see the market return to the fundamentals that typically drive it, the federal reserve, the pandemic and fiscal stimulus rather than the actual next couple of weeks or months where

the election is still creating that volatility. >> so, if that is the case then, as we look towards the way the economy here in the u.s. is shaping up, the economy elsewhere around the world, are we in a constructive area for everything to keep moving forward provided the coronavirus stays relatively in check? >> absolutely of course, look, the big assumption here is we're not seeing national lockdown in the u.s. so, assuming that, as long as we have the federal reserve still heavily in play which they happen to indicate they are, we're expecting fiscal stimulus bills in most parts of europe and of course in the u.s. as well that we should still see risk assets performing pretty well next year, of course, not as well as you've seen between march and september of this year when you saw the s&p rise some 60%. >> relatively speaking the markets have seemed kind of

stable, right? you would think the big selloff last week and things are rallying more, it doesn't feel as though there's a lot of money moving around. it seems as though there's jockeying for position does that click with what you're seeing in there's no wholesale bet being made bullish or bearish in the market ahead of this election. seems as though most people are waiting to see >> and i think that's typical of what you would expect to see in the run-up to a big event, right? we already know there could potentially be significant volatility ahead last week you saw concerns about the virus but concerns mainly about how the pandemic is going to fare out and how the election is going to be resolved. >> and before we let you go, seema, as you take a look at the way you position either geographically or by sector, are there places that will seem to outperform regardless of who

wins going into the next six to nine months? >> yeah. what we're expecting to see is emerging asia do well, irrespective of what happens with this election china is really outperforming everyone we should see them doing well whatever happens on tuesday. >> all right, seema, thank you very much. have a grat day. regardless of the election outcome, experts agree one country will remain the focus of u.s. foreign policy issues for the next u.s. president. seema mody is back with a closer look here is a hint, the same country we have been looking at the last four years as well. later on, any must-win county in the battleground state of michigan, it's likely kent. keep an eye on that name, the home of grand rapids may decide the fate of that entire state. once a lock for the republicans, it's becoming more blue every election cycle our own brian sullivan has a report from the ground in kent county, michigan

a very busy hour still ahead tus ilafr an" e exchge rernstl tethis

welcome back with less than 24 hours to go the big election in america the majority concerns have been focussed on the coronavirus, the health care and u.s. supreme court and election fraud or alleged election fraud but one issue is certain to be

the center of foreign policy for whoever wins and that country is china. seema mody is back with that >> that's exactly right, dom china has become a central issue in the 2020 presidential race. both candidates acknowledging the risk that china poses to the u.s. from a national security and economic standpoint. but biden and trump have very different strategies on how to address beijing. trump taking a more aggressive unilateral approach, going after chinese companies like tiktok resulted in the decoupling of our two companies. two-way capital flows between the united states and china dropped to a nine-year low according to analysis from the rhodium group. while the number of chinese ipos in the u.s. continues to decline. as you can see right here over the last three years meanwhile, biden has criticized the use of trump's tariffs calling them self defeats and vice president biden did back the transpacific partnership which trump rejected unclear whether biden will try

to bring tpp back or get rid of the nearly $400 billion of tariffs placed on chinese goods if he wins the election. but, what is clear, biden's intention to work with allies to confront china versus going at it alone what hangs in the balance, well, access to china's growing market in fact, one of the bright spots in terms of growth as referenced by caterpillar, general electric and starbucks among other companies so far this earnings season dom? >> seema, you mentioned the ipos picture and landscape. should u.s. investors expect fewer chinese companies to list in the u.s. and financial, it could be the biggest ipo oaf all time is completely bypassing all u.s. exchanges is that a harbinger of things to come >> yeah. and financial going public this week it's sort of a miss for the u.s. exchanges. we have seen a gradual number of

ipos here in the u.s. from china. we're at 33 back in 2018 currently at just around 26 or 27 and renaissance capital actually expects even fewer listings from china going forward because by the end of next year chinese companies going public here will have to comply with the u.s. accounting oversight another strategy being used, dom, as you know, it's alibaba and other chinese companies looking for a duel listing listing here and hong kong and one way to hedge their bets. >> seema, great report there on china and the u.s. thank you very much. be sure to catch cnbc election day coverage all day tomorrow starting with special coverage at 8:00 p.m. eastern time we'll see you then at that point. still on deck for the show, the silver lining for stocks and why earnings may hold the key. >> announcer: today's big

number $14 billion. that's the estimated total cost of the 2020 election, according to the center for responsive politics making it is the most expensive election in history and ictwe as expensive as 2016.

♪ welcome back futures pointing to a 356 point gain for the dow at the opening bell the s&p higher than 41 and nasdaq higher by 125

this is hovering right near the highs of the session still ahead, why our next guest says a trifecta of worries out of washington should not change your outlook for stocks over the long-term plus, we zoom in on a key battleground state and demographic that could make or break the election for either candidate. our contessa brewer is live on the ground in the villages in florida. america's friendliest hometown contessa >> reporter: yeah. it's lifestyles of the comfortably retired here, dom. in florida seniors are crucial boomers and older make up more than half of the voting age population in 2018 68% voted. lilyreterm election, they' reab voting. why they're so important in florida after this on "worldwide exchange."

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♪ investors seeking a fresh start with the new trading month after stocks suffered their worst week since march president trump and former vice president joe biden making their final pitches to voters across america we have complete team coverage on the state of the race and the potential market and economic impact of those big results coming up. and with just hours left in the 2020 contest, brian sullivan and contessa brewer are on the ground in two very key battleground states with key

constituencies in play it is monday, november 2nd you're watching "worldwide exchange" on cnbc. ♪ welcome back to the show i'm dominic chu in for brian l sulliv sullivan you can see the dow jones implied higher by roughly 360 points the s&p higher by 42 and the nasdaq implied higher by 128 points by the way, this does represent right near the highs of the overnight session for that future's market. the major averages all coming off their worst weeks since late march. the dow falling more than 1800 points roughly 6.5% downside the index is now more than 10% below its record high. but it was not all red arrows. we have been keeping a very close eye on the small cap sector in industry groups even

though they fell 1.5% for the russell 2,000 on friday. that index did end the month hire by 2% for the sixth positive month out of the last seven. we're also watching the early trade in europe as the uk over the weekend announced a second national lockdown in the face of rising covid cases prime minister boris johnson says the new restrictions will go into place on thursday and last until december. non-essential businesses are to close and people must stay home unless they have a specific reason to leave. the uk joining at least a dozen other countries including germany, greece and france to reinitiate lockdown measures as a result of the covid-19 pandemic also watching what's happening right now with crude oil prices this morning under some very heavy selling pressure you can see u.s.-based west texas intermediate prices $34. 81 2 3/4 losses there lockdowns go into effect across

europe sparking demand fears about fuel usage. now to the 2020 election runners spending the final day in key battleground state. the two men will spend their last two full days on the trail making their case to voters why they should hold the highest office eamon javers is tracking the latest in the race contessa brewer is on the ground in florida, a key battleground state with the vote developing there. also standing by with analysis, andy blocker, head of u.s. government affairs at invesco and former special assistant to the president of legislative affairs and con stance hunter, chief economist at kpmg. eamon, we'll start with you and where this race stands with just one day to go.

okay eamon javers, i think we're having problems with your audio right now. we'll get back to you in just a moment there as we talk about what's happening here, a key, key county in michigan may hold the keys to what's happening there president trump will be on the ground in michigan today after he and joe biden made stops there over the weekend the wolverine state seen as one of the key wins for either candidate. and that is where we find our own brian sullivan >> tough, just like michigan >> if there's any must-win county in michigan, it's likely kent county. once a lock for the gop, it is after all the home of the gerald ford presidential museum it's becoming more blue every election cycle bush won by 21 points in 2000. trump just a 3% margin four years ago. and governor whitmer is the first democrat to win kent county in decades.

both candidates know how important the area is to the state and the state to the white house win. this was trump's last campaign stop before the election in 2016 and joe biden has launched a huge new tv ad campaign here like wisconsin, michigan is the middle of a rise in covid cases. but trump has pushed back on that in recent visits. instead, slamming the governor over the lockdowns and tauting the economy. prior to the pandemic, kent's unemployment rate was the lowest since 1998 amway, the company founded by the father-in-law of trump's education secretary betsy devos. in a state with 83 counties, just 7 went for clinton four years ago. but those seven alone had nearly enough votes to keep the wolverine state blue, its pure michigan intrigue and it all starts in grand rapids. >> our thanks to brian sullivan for that big report from

michigan eamon javers is back with us now for the latest on the campaigns. eamon, can you hear me now >> reporter: dom, i can hear you if you can hear me we'll talk a little bit about the schedule of both candidates yesterday because it's so intriguing and goes right to the different strategies that they've got. the president ping-ponging around the country going to a basket of battleground states where he thinks he can eke out a victory. the president campaigning again and again throughout the day yesterday telling rally crowds that he is optimistic that he can win. here is what he said yesterday >> two days from now we are going to win iowa, and we're going to win wisconsin and we are going to win four more years in that very beautiful white house. >> now joe biden much more narrowly tailored his strategy yesterday, really focussing on pennsylvania that's a swing state with 20 electoral votes hanging in the balance. the polls there have been very, very tight biden focussing on philadelphia,

reminding the hometown crowd that he married a philly girl, as he points out here is what biden had to say yesterday. >> president trump is terrified of what will happen in pennsylvania he knows the people of pennsylvania get to have their say. if you have your say, he doesn't stand a chance >> reporter: what's fascinating act this campaign, dom, is that tomorrow night is not going to be one of those nights in elections past where we sit around focussing on ohio and florida as the battleground states and the rest of the country we know what's going to happen a lot of battleground states that are really tight. we have national polls coming in with a giant lead for joe biden relatively across the entire country. but when you look in these battleground states they're much closer than the national polls the problem for joe biden going into tomorrow is that you don't win the presidency in a national election you win it in the electoral

college and you win it state by state. that's going to be joe biden's challenge tomorrow particularly in pennsylvania and all those narrow battleground states, dom. >> key focus on places like texas as well. for more on tomorrow's elections, thank you, eamon. let's bring in andy blocker and constance hunter on that andy, do you see a scenario developing in the next couple of days as the election results kind of pour in that we do see any kind of market volatility around those particular results regardless of which way they go? >> well, yes there is a scenario where that could happen it really comes down to whether the election is contested or quote unquote contested. if it's actually legitimately contested where the winner is actually endowed, you could see the market have volatility in response to that if you look at early in the night, you have to look at florida, georgia, north carolina, ohio if trump is able to maintain all

those states, it's really going to come down to those last three states from 2016 to determine the outcome then it's going to come down to wisconsin, michigan and pennsylvania and pennsylvania, the keystone state being the key one there. >> all right so with that in mind, con stance, let's take a look at the economy and the health of it overall. we are obviously recovering from a pandemic we could be heading towards more restrictions down the line is the u.s. economy on a track right now where it can get back to where it was pre-covid back in 2019? >> yes if we don't see a rise in cases. we're on that track. but it's a slower track than the rebound we saw in q3 that's because in q3, while we had nice, positive growth, it was due to a massive shift in the way people consumed. so we saw a rebound in goods consumption as people are

spending more time at home they're buying things like fire pits pelotons. you get the idea they're not buying world series tickets or going to concerts or going to conferences they're only just starting to return to consuming health care services normally in recession services consumption doesn't fall enough to fall below pre-gdp levels during this recession it's fallen dramatically. the tough going in the coming quarters is going to be you can only buy so many pelotons. we have to get people back out consuming services and unfortunately that depends on making sure we have a control on the virus. >> constance, can i follow up on that this is also a scenario where for years now the u.s. has prided itself on being a services-based economy the vast majority of our economy is based on services when a pandemic hits like this

that makes you comparatively disadvantaged. is there a case the u.s. should tilt more towards reestablishing industrial bases to balance the economy out? >> we won't hopefully be in this permanent state of pandemic, so most of the services economy is really hire value added and hire paid the problem with regard to the pandemic is that those services where work can't be done from home, those people are offering because we don't see them going back to their jobs as things are still partially shut down. and so it's really impacting that part of the economy very, very severely. if you look at the services that can be done remotely, those services are actually doing quite well so we probably need a bit more manufacturing in the u.s. because it is an engine of productivity growth, it's an engine for rnd, but i wouldn't say it's related to the pandemic

specifically. >> andy, as we look at what constance kind of just brought up there, is there a narrative that needs to be spun by either candidate, by both candidates to try to win over voters that can be won over in the next 24 hours as they go to the polls? what needs to be said about the either covid recovery plan or the economic plan or anything else that gets voters to say, you know what, i'm going to vote for this person? >> dom, at this point i think the cake is baked. i mean, the key messages for biden need to be that covid is not just a life and death situation, it's impacting the economy. you don't deal with the economy until you deal with covid. for trump, continue on his message saying we need to drive through or just push through covid. it's really about how you feel about that for those who are really feel like it's a life and death situation, they're going to vote for biden. those who feel they're not at threat from covid-19, they'll vote for trump. >> 10 seconds here, andy what's the biggest thing you're

watching heading into election night tomorrow >> like i said before, i'm looking early in the night at florida, georgia, north carolina, ohio if trump is able to hold on to those, it's going to go all night and maybe a few weeks. if he doesn't win those and biden is able to hit one of those, it won't be a contested even if we're in court because we'll know the outcome. >> constance, last word to you. >> yeah. really comes down to managing the virus. if we don't do that, people will not go back and engage in these services if they don't engage in the services we won't see jobs come back and be in a protracted very slow growth double dip situation. >> thank you both very much for that be sure to continue to watch cnbc all day and for election coverage all day tomorrow with special coverage starting at 8:00 p.m. eastern time continuing overnight into wednesday morning. it all starts right here on "worldwide exchange. by the way, as you look at that right hand corner of your screen, we're implied higher 400

points on the dow. that's the session high for futures so far. coming up on the show much more on election 2020. contessa brewer is in florida with a look at that voting block seen as critical to winning that battleground state "worldwide exchange" is back in a moment

♪ welcome back a quick check on the futures

market right now you can see implied open of 388 points for the dow that is right near the session high at one point two or three minutes ago we were implied 2 or 300. the dow premarket gainers you can see there, they include names like boeing and intel and american express as well now, it's the final day and the final push before election day. both campaigns are trying to woo senior citizens. 2016, more than one in four vote was made by this critical demographic. cnbc's contessa brewer joins frus the villages in florida more on how the senior vote is being mobilized in the sunshine state. contessa >> the villages are a perpetual summer camp for the retirees and stretches over three counties here this is the oldest in the nation and a bast onof republican support. residents here voted for trump

2-1 in the last election but his support is slipping here it shows in the recent spurt of enthusiasm for biden, complete with golf cart parades to compete with very regular maga convoys. both donald trump and mike pence made recent campaign stops in the villages to sure up the votes. but a voter who denounces trump weekly on sign waving on the side of the road insists the tide is turning. >> i'm going to continue on with trying to get democrats to step forward and become a little braver around here i bought about 120 signs that say village democrats are here to stay. and i'm hoping that i get 120 people here to put one of those signs on their golf cart >> reporter: of those who early

voted or who have mailed in ballots that they've been received, you've got almost 50,000 of those coming from republicans, almost 20,000 coming from democrats and then more than 14,000 who just don't identify either as democrat or republican in the state overall, the most recent atlas intel poll shows senior support is split between the two candidates 47-47, dom. >> seems like that's the case in so many parts of the country it's so evenly split right now at least with the polling data can you tell us, contessa, what exactly is behind the shifts, the changes in the political scenario playing out >> reporter: well, especially among senior citizens, dom, coronavirus must play heavily here and in fact, our cnbc states of play survey shows that disapproval for donald trump has been climbing as virus rates have climbed as well and those who think that joe biden would handle this better

far outstripped the anticipation for trump's handling of the virus. but in the meantime, you also have to look at transplants coming in at a rapid pace over the past decade and the villages has been named the fastest growing metropolitan area in the nation several times over the past decade. >> contessa brewer in the villages florida with that look at the senior vote thank you very much. on deck for the show, stocks looking to rebound following a bleak finish to october. steve is standing by to break down the head winds ahead and how to navigate the volatility as a reminder, watch or listen to us live on the cnbc app as we take a look at a chilly times square in new york city. "worldwide exchange" is back after this at cdw we get you're always looking to modernize. yeah. i'm just not sure office drones were the way to do it. [ laughing ] drone voice: l-o-l. our market share looks good, but... drone voice: where are the bagels? well, cdw can help you modernize your company the right way,

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second busiest week of earnings season 119 s&p 500 companies are set to report, including clorox, cvs, expedia, uber, berkshire hathaway and if last week is any kind of indication, it could mean good news for investors putting aside the lack of guidance from any big companies, from our talented cnbc data team, we have seen a dramatic change to the earnings narrative after some huge beats last week. the s&p 500's blended earnings growth rate is now down just, just 10% compared to what we saw on october 1st at that point we were down 21.5%. a pretty incredible move that could continue with more than 30% of companies in the s&p still yet to report their results. steve chiavarone portfolio manager and equity strategist. so steve, is the earnings season going to save the markets

regardless of who wins the election >> i think the economic recovery very well could. i think that's the question over the next couple of weeks here. and it's a bet that we think you want to play we think that you've got an economic recovery in the united states we've exited recession we're entering recovery, we're in recovery. you're seeing that in the earnings number. really the only thing that threatens that is if the virus were to get bad enough we would have a nationwide lockdown which i don't think is in the cards, at least at this point as long as that's the case, we think that, yeah, earnings, economic recovery, those are the bigger stories over the next six to nine months the election is the next several weeks. >> let's talk about the earnings picture. what have you seen so far this season, steve, that has you the most optimistic about the earnings picture going forward >> it's not just the beat rate, which is roughly 18% but you've got to remember earnings expectations were down for 32% year over year declines back in september. so, the bar has risen and we're

beating that by the second highest beat rate ever recorded. second only to the last quarter. that's really encouraging. that's exceedingly rare and very bullish. look at the cyclical sectors where some of the biggest beats are coming which kind of re-enforces this view that the economy is in recovery. >> do you look at some of the mega cap technology moves that we have seen the earnings power of some of these stay at home stocks is there a changing regime for how that earnings leadership is shaping up for the markets overall? >> we think there may be when you look at big tech and growth, there's nothing wrong. these companies are doing a tremendous job there's no question about that but the incremental news flow is little less good, right? i look at it this way. last april only one online marketplace that i shopped at because it's the only place that's open. it's not only the only place that's open now. you're seeing excellent become very good. a lot of the cyclical value

parts of market, small caps and dividend payers i'm going from awful to just kind of bad. the market punishes excellent becoming good and rewards awful becoming just kind of bad. and so we've been playing that rotation since really mid to late august. >> sounds like you're fairly constructive other the medium to long-termer because of the economic and earnings narrative. if that is the case, you would obviously be using weakness or pullbacks to buy what exactly are you buying? >> that's exactly what we're doing. and so, value cyclicals, things like autos and consumer durables and materials and industrials, banks. those are areas that we're very much focussed on small caps which have outperformed really well since the kind of september 2nd peak then dividend payers against treasury yields 60, 70 basis points that 5% yield on a dividend paying stock now that we're no longer in this period of a race to cutting dividends, we think become a lot more

attractive here. >> what's the one thing you can see outside of covid-19 that could derail any kind of an economic or earnings recovery? >> yeah. not necessarily in the short run but i think over the medium term the things that would sour our view we call the triumph rant of crises, disorderly contested election not something like 2000. emotions high on both sides. if you get a democratic sweep, remove the filibuster in the senate and pack the courts, you open yourself up for more extreme policy outcomes that are easier to pass and less redress through the courts for vijs and companies to argue against that. we think it makes policy outcomes more extreme and harder for businesses and individuals to plan. >> steve chiavarone, thank you very much. always great to get your thoughts thank you. check out what's happening with the dow futures because we have moved solidly even beyond

the highest levels of the session. we're now implied higher by over 500 points and 58 in the s&p 500. that does it for "worldwide exchange." "squawk box" picks up all the market coverage coming up next gives us con they help us with achievable steps along the way... so we can spend a bit today, knowing we're prepared for tomorrow. wow dad, do you think you overdid it maybe? i don't think so...what do you think, peanut? nope. honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement. ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need.

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outcomes could impact your money. meantime, more lockdowns in europe announced over the weekend. u.s. states are reporting the high es number of positive cases since the pandemic began

it's monday, november 2nd, 2020. "squawk box" begins right now. ♪ ♪ here we go, everybody. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. joe mentioned u.s. equity futures looking sharply higher this hour. this comes after joe mentioned the worst week we have seen since march for the dow. not just the worst week but the worst month for the dow. last week down over 1,800 points for the month it was down 4.5%, the worst month since back to march. and this is two down months in a row we have seen for all three of the major averages. just a moment ago, the dow up by 500 points above fair value. s&p 2350u67s up by 55. anything