it is 5:00 a.m. at cnbc global headquarters here are your top five at 5:00. investors bracing for a busy week earning season kicks into second gear, tesla, ibm, netflix and many more on deck. crude climbs higher as options traders pile in to more bullish bets some calling for $200 a barrel in europe. bitcoin's boom showing no signs of slowing down as wall street prepares to welcome the first crypto futures etf. china, third quarter growth

missing the marks and beijing's multisector crackdown all being blamed can investors get excited about apple outside of the hardware lineup. we'll find out at 1:00 p.m. eastern today. you're watching "worldwide exchange" here on cnbc, it's october 18, 2021 good morning, i am frank holland in for brian sullivan. we'll kickoff your monday morning with u.s. stock futures. they're slipping this morning opinion let's take a look. all three are down fractionally right now, the dow looks like it could open up about 100 points lower. this comes after the major averages ended last week on a high note with the dow posting the best week since june and the s&p seeing the best week since july looking outside of stocks. oil, a lot of headlines about oil, trades at its highest level

in about 7 years after gaining 3% last week right now looking at brent up almost a percent wti up over a percent this morning and then we have to look at the digital economy bitcoin continues to make waves trading at the highest level since april, breaking through the $60,000 mark this morning, looking at $61,600, up almost 2% we'll have more on crypto throughout the morning on "worldwide exchange. now we turn our attention to the global economy looking all around the world, mostly red arrows in asia overnight as china's economy grew less than expected in the third quarter and europe getting the trading day start. let's get to julianna tatelbaum with more on the action. good morning >> good morning. just as you said, u.s. futures are slipping this morning european stocks are also retreating after last week's strong run the main benchmark, stoxx 600

gained about 2.65%, but this morning we are seeing european stocks start out on the back foot the china data overnight no doubt driving sentiment here from a sector perspective. the split this morning the majority of sectors trading lower. the only ones in positive territory, utilities, basic resources and banks. on the down side, household goods is the key underperformer, down 1.3%. and we are seeing hard selloff in luxury stocks the names this morning, red across the board this morning, as you can see 2 to 3% of losses for the names. and that coming on the back of data from china overnight confirming the chinese economy is losing momentum and that's hugely important to the luxury sector back to you. >> appreciate it the top corporate stories be be bertha combs is here with more

on that. >> the price of bitcoin is riding high as wall street braces for its first s.e.c. approved bitcoin tracking etf. in a regulatory filing friday, they expect to list today with trading to start later this week the updated filing from pro shares also likely indicates that the s.e.c. is unlikely to block the listing, despite no official word from the regulator. goldman sachs said it has won beijing's approval to take a 100% ownership of its joint venture in china the move allows the investment bank to tap into growing demand among the wealthy for more financial products and investment guidance. it also allows goldman to open what executives are calling a, quote, new chapter and pave the way for the bank to double its workforce in china the alaska department of

revenue, a department that manages some $10 billion of u.s. traded assets. has unloaded in meme stocks. the state's fund said it sold nearly 29000 of its gamestop shares while buying stakes in moderna, palatir and analog devices. shares of gamestop were down 18% this year but still up nearly 900% since january that's been quite a ride on that one, frank. >> interesting that the state of alaska is making such an investment on gamestop and now unloading them. back to the broader markets. stocks set to kick off in the red after gains on friday. earnings from the like of netflix, ibm, csx, tesla, southwest and many more, johnson & johnson up there, too.

joining me now, malcolm etheridge. good morning, thank you for being here. >> morning opinion thanks for having me. >> we're kicking off monday morning, futures are in the red. you say since the pandemic started the dow, s&p, and nasdaq seem to be tied together, moving in tandem but more recently you say the pattern is broken and individual names, stocks can move the markets or an indexes so looking to earnings today, is there any one report that can move the market up or down any one report that can be a major cat lust >> not necessarily there's a ton of companies to report this week, 72 i think is the number so there's quite a few reports from a few companies that will move us off of this red we're seeing this morning or exacerbate it. but what we are especially focused on and surprised by so far is the strength of the retail sales numbers that we've

seen we've seen the spinning data out of visa and master card that suggests that through q-3 we had strong spending in the consumer discretionary spending category. which is a shock to anybody paying attention, we had supply chain issues and peak delta happening at that moment and you see people going out and spending especially in the retail category which is a big surprise. >> you said inflationary concerns it doesn't seem people are concerned they're spending money still. you mentioned that jay powell's statement that inflation may be more than transitory is concerning to investors but the s&p and nasdaq getting 2%, where are you seeing the inflationary

concerns play out? >> if i am just looking for telltale signs, the fact that the fed actually increased the cost of living adjustment for next year for social security benefits to 5.9% for next year, that tells me everything i need to know, right if we look at the last couple of years it was 1.6% i believe in 2019 and 1.3% for 2020 so if i look at that, that's more than four times that c.o.l.a. for the last year, which tells me that if i am a retiree or even a pre-retiree, i should be concerned and careful how i draw down that portfolio going forward. if i think about the simple math on it, the rule of 72 for a couple who's living off say $100,000 in retirement right now, i divide 72 by 5.9%, that tells me that something like 11, maybe -- 11, 12 years is what it

would take for that $100,000 to buy me $50,000 worth of goods p that's not great that should be concerning for anybody younger than, say, 90 years old right now. >> great stuff as always we appreciate you being here >> thanks for having me. when we come back here on "worldwide exchange," much more on china's slow down, and what the crunch effect is having. and dorsey is giving bitcoin a boost. and why $100 crude could be in the cards in the next weeks and months ahead a very busy hour still ahead when "worldwide exchange" returns. st wh ayitus

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welcome back to "worldwide exchange." china reporting disappointing third quarter gdp growth compared to last year, missing expectations of 5.2% a number of factors may have led to the slow down, including power outages that impacted the supply chain and crackdown on internet, tech and education let's bricng in sarah leeann for more >> you are still bullish on china, you believe that china investment should be part of every portfolio then you mentioned that chinese markets

are trading toward historical valuation multiples with china being the worst performer year to date. it's hard to know what if chinese government is going to put their attention on why are you still so bullish on china? >> you're right, the china market has had a tough year, it's down about 15% this year. it's the worst performer in asia, above all the asian markets. so it's been a downward t trajectory, an uncomfortable ride we've had an energy crisis, housing market weakness, worries about debt you name it. there's been a lot of negative sentiment around the market after having a very strong year in 2020 with regards to managing the covid-19 pandemic but we think long-term that a lot of the reforms going on in the internet sector in terms of improving competition, creating a fair playing ground,

protecting data privacy, giving consumers more choice we think all of that, those reforms, will actually be good for the market long term. right now we're experiencing a bit of pain as china reforms and restructures but we think the market will be more resilient in the long term with the market down so much this year we think it's a good entry point for investors who are interested in being part of china's growth trajectory. so we're looking at areas like healthcare, consumer, internet and technology, areas we think there will be strong growth because they are important to china's agenda in terms of restructuring and reformingthe economy. >> let's talk about internet and technology in a minute one thing that got attention in the u.s. was crackdown on video game stocks and online education stocks these stocks target ayounger demographic that people saw with

room to grow, with those kind of crackdowns on those stocks how can investors be confident that these stocks will grow when it isn't clear what the regulatory environment is. >> we have a lot of confidence in the internet sector we think there are products and services that consumers in china want and need. china is actually very, very competent. they have a very skilled workforce in terms of developing internet capabilities and developing games and one fact is that a lot of young chinese -- young chinese adults actually meet their partners online playing games. so there is sort of a social benefit to the games even though the crackdown and sort of the reforms have been targeted at young children playing games, the real bulk of the people that are playing games and where the revenues are coming from are from adults.

young adults, in fact. so we think there's still space for gaming in terms of where we're bullish, we're looking at cyber security, software as a service, internet ecommerce. those are the areas we think there's still a lot of good growth and we're still in the early days of digtalization, electrification. a lot of new technologies, data centers, et cetera, where the economy will continue to grow. >> we almost have to wrap up one thing i want to touch on is the idea of common prosperity how you see it impacting stocks i see alibaba down about 21% the last three months but now it's up if you don't mind a quick elevator version, how is it going to play out? >> the goal of common prosperity, as we understand it, is to make the playing field more fair give the opportunity to more people

so that, in terms of focussing on improving the social well being of the community, improving the access to education, improving access to goods and services and affordable housing so all of that should actually benefit the chinese consumer and the average chinese person over the long term. so we want to play into those themes where the government is most focused in improving the long-term growth trajectory. >> we'll keep our eye on those chinese stocks for sure. watch out tesla, another global auto maker making a big bet on batteries produced right here in the u.s. it's not just evergrande, another property developer in china is raising red flags for investors. your big money movers when "worldwide exchange" returns stay with us. >> announcer: today's big number, 16%. that's how much home prices will

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begin production by 2024, we see shares down just about .5% air finty predicts pfizer and moderna will double their vaccine sales next year, the two vaccine makers expected to control three quarters of the nonchinese market. shares are down this morning and the trial of als' drug failed to meet control shares this morning down a percent. a check on this morning's other headlines outside the world of business. phillip mena is in new york with the latest happy monday. >> happy monday to you, frank. 17 missionaries including children were kidnapped in haiti. the group of 16 u.s. citizens and one canadian were abducted by gang members a senior state department official tells nbc news that the u.s. is engaging

with haitian authorities at the most senior levels. crisis averted in hollywood, major studios have reached a three year deal with the union representing its film and television crews ending the threat of a strike that would have shutdown product. the wild weekend in sports the seahawks and steelers sunday night. big ben put pittsburgh on the board first. seattle playing without rustle wilson but two big touchdowns in the third. the teams traded field goals in the fourth seattle forced overtime. in overtime, a seattle fumble sets up that game winner, steelers get back to .500 with a 23-20 win over the seahawks. and diggs picks off the quarterback in his sixth straight game. a wild fourth quarter before the

cowboys and patriots in overtime, dak prescott finds ceedee lamb for the win. the phoenix mercury needed to turn up the heat to avoid elimination but the sky had other plans. chicago swept away a fourth quarter deficit and the sky take the game and the series, 80-74 candace parker's first year playing her hometown, she delivers the franchise its first wnba championship and a leigh copper was named the mvp, averaging nearly 19 points a game in the playoffs. and major league baseball playoffs in full swing, the braves are two wins away from the world series game three tonight with the astros and red sox tied at one each it's a great time for sports. >> are you an astro's fan? >> i am.

after all of -- i get a lot of guf for what happened in 2017, you know what can i say. >> it's hard not to see the astros as the billings now, but still great playoffs a lot of people enjoying it. good to see great games. never rooting for the astros no offense after all that happened, hard to root for them. >> the coach of the red sox was part of theteam. now they're spread all over. >> we got to go. still ahead, more trouble for instagram. another trove of internal documents reveal the fear. if you miss "worldwide exchange," check us out on apple, spotify or other podcasts plus a big programming note. today brian sullivan is at the milken global conference in l.a. and a special 1 hour cnbc pro live stream with four huge

guests today get the global macro views on all parts of the market and economy. interviews, all live and off the cuff check it out today sign up at cnbc.com pro. we'll with right back. stay with us you could fret about that email you just sent. ...with a typo. aaaand most of the info is totally outdated. orrrr... you could use slack. and edit your message after it's sent. [sigh of relief.] slack. where the future works.

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braces for its first crypto tracking etf. crude rockets to its highest level in seven years why the recent spike may be just the start of things to come. hurdles ahead for stocks the biggest fears for equities headed into earnings season. it is monday october 18, 2021, and your're watching "worldwide exchange" right here on cnbc welcome back to "worldwide exchange." i am frank holland in for brian sullivan here's how stock futures are looking halfway through the 5:00 a.m. hour here on the east coast. all three indices are in the red. the dow looks like it could open up as much as 100 points lower after the dow saw the best week since june and the s&p saw the best week since july this week is all about earnings

as we get set to hear from netflix, ibm, united, verizon, at least and many more, 75 s&p 500 companies are set to report this week. let's get to the top corporate stories bertha combs is back with more. >> good morning. apple set to lift the curtain on the latest hardware lineup at 1:00 p.m. eastern today. early reports suggest the company will introduce new high end macbook pro laptops. the company also likely to provide a release date for macos monterey, the latest version of the operating system which was announced in june but has not been officially released apple shares this year have been kind of mixed. right now up about 9% year-to-date flat ahead of the

open. major league baseball is in talks for a nationwide streaming service that would let fans watch their home games without the need for a cable subscription service the nba and nhl are also reportedly teeming up with them. the subscriptions could be between 10 and $20 a month instagram wrestling to retain and engage with its core user group, teenagers, according to internal documents seen by "the new york times. facebook calling the loss of teens to other social networks a threat, adding, quote, if we lose a teen foothold in the u.s. we lose the pipeline and in response to that threat, the documents say facebook spent its entire global market budget slated at $390 million this year to target teens. wow.

that's a -- that's -- you got to keep that pipeline given that the kids have gone over to tiktok i can see how it's a threat for them >> have they just gone to tiktok i feel like instagram is just as popular. i don't have the data on this one. i have cousins, nephews, they seem tostill be into it. >> we're older, frank. >> we're not the target demo. >> we are not. >> we are not the target demo. >> exactly >> thank you. turning our attention back to the markets and the rally in oil prices, crude ticking higher again this morning after gaining more than 3.5% last week for the eighth positive week in a row. wti on track for the longest weekly win streak since an 11-week streak back in 2015 but it may not end here. some options traders are betting, brent crude will hit a

record high of $200 a barrel by december 2022. wagering shortages and supply chain disruptions will push it higher and higher. joining me now john killdoff you say the supply chain concerns are starting to hit the energy market but with brent and wti closing at the highest levels in years, brent highest since october of 2018, how does that play out when it comes to price action >> it's a grind higher right now, frank almost on a daily basis we're making new highs for the current rally we're in there is a propensity in the marketplace now, the sentiment is increasingly off the charts in terms of being bullish. those call options you reference are lottery ticket really type of positioning for the $200 brent call options but you got to be in it to win

it and you never know, all those slogans apply here on that there's increasing action on $100 crude oil options but they're within a striking distance, pardon the pun here, when wti is at 83. look, opec is struggling, like all the rest of the supply chain is to put more oil on the market the saudis in particular are being hesitant to step up their game when they easily could. other members of opec for whatever reason aren't able to put more oil on the market and that's what's helping to keep the global market tight. >> i don't know if you know this one of our other contributors said the saudi oil minister watches the show right now you said he's hesitant to increase production between the 400,000 barrels per day per month. but in your note you said he's living his best life with the

supply chain and reductions. how does that impact both saudi arabia and the general oil market >> i don't think i'll be getting the dinner invitation to the embassy here in new york any time soon, frank but that's okay it affects them in that they are, like i said, other members of opec, getting the data for last month now among the opec members and the compliance with the quota scheme is 115% is the numbers. they're not producing as much as they told the market or they want to as a group produce the saudis themselves have spare capacity of about 2 million barrels a day. literally they could flick a switch, turn a valve, pick your metaphor, they could put more oil in the market. they could stop the rally in its tracks they won't do it we're reminding everyone now,

when right before the pandemic hit they dumped crude oil on the market that that garnered the negative pricing we saw in march of 2020. so i consider them to be no fr friends of ours. they're happy with the prices here, they'll be blaming speculators in the marketplace when it goes to 100 if it does in the course of the winter. we need more oil now and they're not doing it. >> right now brent crude up more than .5%, we appreciate it. bitcoin topping $62,000 and once again edging closer to its all-time high. a lot happening for crypto this week mackenzie joins us now so dorsey obviously a big bitcoin fan but why the push into mining, and also good morning.

>> good morning, frank so square ceo jack dorsey says that right now mining for bitcoin is not accessible to everyone but should be dorsey said square is considering it's own bitcoin mining system so generating new bitcoin is as easy as plugging into a power source. today the mining industry is dominated by large scale players who can afford to buy tens of thousands of aasics. which is a specialty used to create bitcoin dorsey wants to make it so everyone who wants to be a miner can be dorsey says it will be open source meaning they will build it in the open in collaboration with the community which is a typical approach for square. doing the same thing with its bitcoin hardware wallet. frank? >> so also on deck this week the first bitcoin futures etf set to make the market debut.

what can we expect to see in the next few days? we've been hearing that the crypto community is not exactly ecstatic about it. >> this is a huge moment in the crypto world as long as the s.e.c. does not object the first future etf for pro shares is expected to start trading on tuesday. and the s.e.c. chair, gary gib ginsler signalled they will not get in the way they plan to track futures rather than bitcoins themselves. this is kind of opening the floodgates in the next two weeks. the s.e.c. will consider additional proposals by asset managers like invesco who want to sell bitcoin etfs to investors. >> what does this all mean about the price -- or for the price of bitcoin and where it's headed in the near term in the next few

weeks ahead? >> already in the last few days we've seen investor enthusiasm drive up the price of bitcoin. it's trading near six month highs as we speak and some analysts say this is the beginning. they say the potential for a frenzy could be the game changer for wider bitcoin adoption it makes the popular currency available to most investors with a brokerage account so we're talking about bitcoin becoming more accessible to a broader investing market it's not quite the pure bitcoin etf that many crypto bulls were hoping for it should push towards the digital asset market like we've never seen before. >> bitcoin up about 2% this morning morning. we appreciate you being here coming up, running out of steam or here to stay, a report on the i.t. spending surge. some other top stories this morning.

the luxury resaler, saks is looking at an offering they could place place with a valuation of $6 billion. facebook says it plans to add 10,000 jobs in the european union over the next five years, it's part of facebook's mission to create a digital world. other companies including microsoft, roadblocks and epics are also investing in their own meta verse zillow says it will stop its property purchases as it works through its back log orwi ehae"s ck"wlddexcng iba right after this stay with us

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exchange." i.t. spending is expected to top $4 trillion this year even with many companies delaying their return to office plans instead shelling out billions on tech for hybrid and remote work spending is expected to grow next year but not the same pace for 2021 john ruddlock joins us for a first on cnbc interview. i think i.t. is the center of all of our minds with work from home, the pandemic has shifted the need or increased the need for i.t. you said spending forecast increase is 5.5% in 2022 to

$4.5 trillion as part of a k-shaped recovery. what industries do you see leading in i.t. spending, what industry is lagging? >> the laggards are the ones affected by the public health interventions. when they were locked down, they were closed. transportation to a certain ex extent, travel tourism, hotels, hospitality. they need a few years to recover back to the i.t. spending levels that were not tremendously high to begin with. those leading are the ones getting out in front of their clients and taking them to the digital age. so banking, insurance, even hospitals are leading the charge with massive growth in i.t. spending. >> that makes sense. two areas you say see the biggest gains customer relationship managers, a company like salesforce and supply chain management you say they'll see the biggest growth, more than 11%. but at the same time more and

more companies are going to build their own tech as opposed to buy how do the trends pay out when there's an increase need for supply chain software, are companies going to wait and build their own or why not buy solutions to deal with the problems >> there's two issues playing in here the big push from 2020 was evolutionary we jumped faster forward in i.t. because of need. we have to get out and meet our clients where they are we have to change our supply chain in order to do that. for those systems we can differentiate against our competition by implementing and using it better. but when we start changing the value proposition of the company, what we offer and how we offer it, for that we can't buy software we can't differentiate if you and i use the same software. so we have to start building this functionality building the new ways of getting in if front of our clients building the new ways of giving our value proposition to them.

it's not just about taking an old mortgage and putting it on a website. it's about offering loans differently. >> very interesting. interesting shift there. in general, besides obviously some shifts in our work life to remote work and work from home or hybrid, what are the other factors that are a catalyst for increased i.t. spending this year, i would think a lot of companies did a lot of spending last year, why is it still going? >> a bit of a stabilization is happening this year. remote is probably the great example. in 2020, beginning of 2020, we were still on a slow evolutionary path towards more remote work. in april, a billion employees went home to work in that month. a massive shift and companies had to do it with the technology they had on hand for the rest of the year, and most of this year, it's been about stallizing that environment, making it secure, and giving them the tools to be productive rather than just task

completed. now that the public health interventions are waning we're seeing hybrid work come up that means a different set of device stacks needed to optimize that experience. a new set of security protocols in to make sure it's secure for them to do so and a new set of productivity tools allowing them to come in to do their work wherever and whenever they are. >> we appreciate it. looking forward to seeing more details from that record thanks for being here. >> thanks for having me. china growth slumping last quarter with a number of factors at play. a live report from beijing coming up. if you missed "worldwide exchange," check us out on apple, spotify or other podcast a.m. we'll be right back

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it's another day. with vitamins and minerals and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. welcome back to "worldwide exchange." new data from china showing the economy there slumped in the third quarter.

eunice joon joins us with more on this. >> reporter: the statistics bureau said the recovery in china is still uneven and unstable so q3 growth came in at its slowest pace in a year the numbers missed year on year and also quarter on quarter showed the economy barely grew at near zero supply chain woes, power shortages, all contributed to the slow down. these are what ing described as pain points continuing to the year 2022. much of the pain was at the fact factories, the industrial output number came in at 3.1% which missed expectations and was slower than in august. that meant that the output was the weakest since the start of the pandemic in march of 2020. there were some bright spots, though the retail sales numbers held up

pretty well. and exports stayed strong. so that helped to offset some of the concerns about the property sector new construction dropped in september for a sixth straight month. the longest series of declines china has seen since 2015 and we have the troubles with property giant evergrande that company faces potential default this saturday. the central bank attempted to try to ease some of the concerns about evergrande and the real estate market saying that china can contain evergrande's risks also the pboc said that china, the economy is still going to grow at about an 8% clip for the year frank? >>u >> ask you, which is a bigger impact, the energy shortage or regulatory crack down from beijing? >> reporter: it's very difficult to say all of it is creating an

uncertain environment. some folks i talked to in the factory sector said they're concerned about the power rationing but it is, from their perspective, going to continue but then again they are worried about the supply chain issues. >> we appreciate the very latest. turning our attention on the heels of that news out of china, all the futures down about a third of a percent joining me now to tie this all together is jenny harrington jenny, thanks for being here >> thanks for having me. i'm a little afraid about needing to tie it all together. >> i have a lot of faith in you. we'll kick it off with something you put out in your quarterly letter you're telling people to adjust their lends when it comes to returns this year. i'm assuming that means take off the rose colored glasses you cite the returns over the last decade over 16% saying you might not want to expect that in 2021.

explain. >> right i think one of the things i'm most worried about isn't as much what we have ahead from an economic perspective as it is investor behavior. behavior drives the market i think people have become complacent and fat and happy with the big returns there have been a lot of bumps and weaves over the last decade for sure but ultimately you've been able to count on really big annualized returns i couldn't believe how big the number was, i could but when you see it in writing it slaps you in the face and wakes you up so 16.5% over the last ten years particularly given what we endured is a lot then i look out going forward and i'm like we have some tricky things ahead $30 trillion of debt to service. we have inflation that may be stickier than people expected. valuations that are still one standard deviations over historical averages. taxes and regulation likely to

get worse. geo politics aren't great. and the fed is going to start tightening so there's all this. i do not, i want to be really clear, this is not me saying i think the market is going to crack and crumble, i don't think it is. i just think these hurdles out there are going to make returns harder to get in the future than they were in the past. i think people are going to need to start to work that's hard. it takes a lot of brain cells to make good investments. i don't think anymore you can be like i'm going to buy faang. that's great look what they did this year there's so much disparity within faang. you have apple and what is it apple and amazon up 5 and 9% and you have google and microsoft up 36 and 61%. so there's a lot of disparity. i think there's going to be hard work ahead and i don't know that people like to do hard work and that's what worries me the most. >> we're looking at faang right now, all of them except alphabet in the red you just tied it together. >> thanks.

glad i didn't disappointment. >> looking at the headwinds on it there one you mentioned is tightening. how is it going to impact the markets, the returns we can or cannot expect? >> so i think to me the beauty of jay powell is how unbelievely well he's telegraphed everything i'm trying to telegraph also and say, hey, you know what, let's not cry, be too upset if we get 5% or 8% next year jay powell has said, get ready, get ready, it's out there. we're going to raise rates in '23, take that $120 billion a month out. so it's all about the response i think because he has been so amazingly clear in that messaging, i don't think that there's going to be a huge negative emotional response to the tightening that's coming but what it means is that there are going to be less dollars

sloshing about when there's less dollars sloshing about, people are going to be less excited about taking risk because the dollars become more precious i think the risk return equation starts to adjust and i don't think that there's going to be the cavalier level of risk taking that we've seen over the past, really, five years. i think that will impact the market by dampening future returns. again, still positive, just not what we saw. >> stay right there for a second we want to touch on a couple of upgrades and downgrades. barkley is downgrading disney to equal weight saying long term guidance could be a risk with growth slowing, despite new titles and releases. downgrading virgin galactic to sell with a price target of $15, with a weaker balance sheet position given higher cash burn

into 2026. morgan stanley adding mcdonald's saying the top line has performed well in the u.s. key international markets heavily impacted in 2020 now no recovery mode. any of these names stand out to you, jenny >> disney i use as my final trade on friday on halftime, so that was disappointing to see it downgraded they're talking about streaming. i used it as my final trade because we saw the travel restriction get lyifted in the u.s. so i think the parks are a significant park for disney. when we bought last summer, the thought was they'd get to $10 of earnings that got kicked down the road. i need to read the whole downgrade but i don't think it's too severe i don't think it affects our buy on it. the other two i don't have an opinion on >> interesting you're still

sticking with that pick. i respect that jenny harrington fromgillman hill we appreciate it. thanks for being here. that does it for us on worldwide exchange "squawk box" is coming up next get pumped fans, because basketball's back! and our league pass lineup is totally stacked. forty games a week, all season long, on all your devices, so you'll never go wrong. watch your favorite sport, and do it your way, with nba league pass. order today! experience all the nba action with xfinity x1

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good morning, it's week two of earnings season, get you ready for a flood of reports fresh reports from companies including netflix, tesla and proctor and gamble crypto prices on the rise for the last several days as wall street prepares to welcome the first crypto futures etf new overnight, disappointments gdp growth numbers from china

we'll take you live. i it's monday, october 18th, 2021, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. we're all in pink today, blushing a little bit because we are here to make sure we are celebrating breast cancer awareness month want to make sure people think about that, that's why we're all in pink today. in red you see the u.s. equity futures this morning with dows indicated down about 100 points below s&p 500 down about 16. if you look at the treasury market last week we saw yields dip a little bit from the week before, this morning picking up, 1.612% is where the ten year is sitting. and then it's energy prices that everybody is watching right