a wide ranging speech from president xi to kick off the national congress. we will bring you the highlights from beijing it is monday, october 17th, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equities stand on monday morning. there are glreen arrows. dow futures up 320 points. s&p up 44. nasdaq up 140. this is something to write home about except for the rough session on friday. we have the dow and s&p and

nasdaq down. the dow down 1.3%. the s&p was down 2%. the nasdaq which was down 3% for the month of october, the dow is up 3% the s&p 500 is flat. nasdaq is down the dow is down 19.8% off the all-time high. the s&p off from its high. the nasdaq is down 36% as the higher treasury yields have hit technology let's look at treasury yields. on friday, across the board from the 2-year treasury to 2-year treasury, all above 4% the 10-year treasury is 3.984% the british pound this morning is rising overnight. we will show you where things stand after jeremy hunt would move up announcements today.

he is expected to speak any minute we will have full coverage live from london. right now, the pound up 1% 1.1282 joe. china's president xi jinping spoke yesterday in the opening ceremony of the communist party national congress. he started with the china national rejuvenation. he used the terms security or safety 89 times up from 55 times when he used it in the 2017 address. we're aware of that. we will take you live to beijing at 6:30 a.m. eastern is it october? not 20th >> the 17th. my niece's birthday. happy birthday, parker

>> we are thursday that almost made friday okay i didn't get scared over the weekend. we closed right on the lows of the s&p. 3,585. >> you get used to the 300 point swings and it doesn't faze you anymore. >> we're up for the month of october for the dow. >> s&p is flat. >> we had that that was a bad inflation number. >> yes that was the shocking turn of events on thursday with the lo lousy number. we have breaking news. crossing the tape as we speak. ye formerly known as ckanye west hs struck a deal to buy parler platform the owner discussed it as the

details were not discussed they will closed deal by the end of the year. it will provide cloud services to ye or kanye kanye will be the owner of parler elon will own twitter. trump will own truth social. kanye will own parler. mark zuckerberg owning the metaverse. >> it will be more public shareholders he will have a big mark. is this a social media company that cannot kick me off? >> is not april 1st. >> october 17th. >> it is not okctober 31st. >> i don't know the state of parler. >> i didn't know it was still around. >> is it because he was thrown

off twitter? >> and instagram. >> it is an interesting move i don't know if anyone wil follow him there given his comments over the past two weeks. >> do we need to know everything kanye is thinking at all times >> if nobody is on parler, maybe nobody will see what he is thinking at all times. we'll see. an interesting development in whatever is left of social media. a story that i think a lot more folks on wall street may focus on i think kanye story will get a lot of attention today goldman sachs reorganizing today. according to the wall street journal, the bank will combine flagship banking and trading business into one unit and merging asset and wealth into another. consumer banking arm known as marcus will be known as the wealth management. then the third is fintech and

apple. the resorg corganization could e announced within days. we will perhaps be hearing about the reorganization and more. we have an interview with david solomon later this morning we hope to talk about those numbers and future of the firm this has happened before rupert murdoch looking to combine news corp and fox. back together in one publicly traded company this recreated the company that he split apart nine years ago. the move wiould consolidate powr with his son lockland. he is the ceo of fox currently it reunites fox news with wall street journal and new york post

the boards have established committees to evaluate a possible merger. >> they split it off with the smaller assets >> if you look at the multiples. i think it is possible the shareholders will vote this down i don't think the reporting is accurate enough. this is a transaction that is not ultimately controlled by the murdoch family this is controlled by the minority of the majority the murdochs own 13% of the vote it would go to them. think about news corp. they are trading at 17 times multiple if you look at fox, 4 times multiple you could argue that news corp would stand up fox not the other way around i don't know if people are going to see synergy the only real synergy in size

and getting rid of management. things like that potentially you could argue dow jones industrial average and wall street journal and consumer brand focus combined with fox business after that, i'm not sure there's particular synergy in the trans transaction. there is a chance you will see the shareholders say we don't want to do this or the special committee say we don't want to do this. there is also a separate piece which is people don't see news corp beyond the wall street journal and dow jones industrial average equal to zillow worth $6 billion. that, unto itself, activists have gone to the company saying that should be spun out. >> what is it? >> a bunch of businesses inside news corp.

a sort of diagram of things that can happen to this the idea that the murdochs slam the kcompanies together. >> fox is a smaller entity >> there is a voting issue if you are lockland, you want to do it now with your father alive. the family trust gets more come re complicated. there is a rationale why you do it now. >> otherwise, he has to split with the three siblings with a vote. >> they may not want to pursue >> what is the business equal to zillow >> it is moving out of australia. it is a huge business in europe and australia. a publicly traded company. they own a huge chunk of it. you can do the math. people don't talk about it >> activists are looking

>> activists have been pushing privately. a report in the times about the activists pushing on that piece of it. we will see where people land on this the idea the myrrurdochs are do it and it is fait compli. the dow futures indicated up 383. nasdaq up 160. s&p up 151 meta's horizon world, the flagship metaverse is failing to meet internal performance expectation. according to the article that cited inn tternal documents it faces setbacks with uninterested users and lack of clarity of what it will take to succeed. meta set a goal of 500,000 users per month, but revised that to

280,000 recently the documents show the tally is less than 200,000. according to internal stats, 9% of the worlds created ar visited by 50% most not visited at all. the metaverse efforts were intended to be a multiyear project and the company continues to believe the future of computing one article that struck home was the social media products, facebook, instagram and whatsapp have 300 billion users monthly that is more than half of the population of the world. if you look at horizon, it reaches less than the population of sioux falls, south dakota >> we are just going back out in the world. some of the world isn't. >> into the real world >> yeah. the real world is pretty good.

i don't want to go back in >> michael murray called the housing crisis in 2008 tweeted over the weekend meta has a new coke problem. >> you retweeted it. >> i responded except coca-cola never changed its name to new coke corporation. changing the company around this >> coke. new coke doesn't taste like it. one thing that tastes like coke and that's coke. i'm starting to drink it in moderation one of the small bottles the eight ouncers. it's 140 calories. nobody needs it. it's so good it makes you feel better at times. depending on what you have done sdpdone >> to the follow-up with you, the company is rea group

worth 5.billion. it runs real estate. like a zillow situation. they own 61.4% it's a huge part of the company now that people don't talk about. >> fox or news corp? >> news corp >> okay. >> rupert is 91. he seems fine. >> that may be part of the reason trading at 7 instead of 4. >> the 7 multiple is more in line with the piece of how successful the wall street judicial journal has been it could be higher given how sticky their subscription business has been. i can give you that number nonetheless. coming up, the futures have been on an uptick. we thought it was bad, but

thursday was great we're bouncing around these lows we'll talk about it. the new uk finance minister speaking right now highlights after the break we with will tell you aboute comments from jim bullard about the pace of interest rates you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. ♪ ♪ ♪ ♪ introducing ihg one rewards. seventeen hotel brands. six thousand global destinations. one loyalty program that lets

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new uk finance minister jeremy hunt is delivering a fiscal update. cnbc's arabile gumede has more >> reporter: we had statements from the finance minister jeremy hunt with recorgards to the min bu budget erasing the budget that was put forward to by the former finance minister saying the economic stability is the key word to highlight the measures put forward. saying the basic rate of income tax will remain at 20% that these measures will effectively raise around 32

billion pounds that is over $36 billion very interesting to put out that change which was set to make the way into the lives of citizens changes set to go ahead. jeremy hunt saying there would not be responsible to expose public finances to international volatility in definitely that is ordering review of things and how to help and support consumers. especially the energy prices which had been capped on the uk as well. considering how to do that beyond april that stays in force. there will be difficult decisions on tax and spend and support after april of 2023 which will be targeted the finance minister saying we will no longer proceed with cuts to dividend taxes. reversal of payroll working. on friday, the big announcement

the corporation tax hold on the cut which was set to go from 19% to 25% that has been reversed it will go up to the 25% at present. certainly reversing and erasing the work put forward by the fo former finance minister and liz truss. the word is reversal is in place or doing away what the mini budget set forward. >> arabile, the markets are reacting in kind the pound is up 1.2% we see equities up including the ftse gilts. yields coming down that was the intended effect it stabilizes the market what about liz truss' position >> reporter: that will be the key question mark. we heard word from members of parliament saying it may not be

helpful for the cause for her to stay in power. question marks put on her leadership now having jeremy hunt who is not somebody who voted for her when she was put in as prime minister holding up that chancellor position and giving a sense that there are a few divisions within the party itself conservative party question marks will linger on. jeremy hunt is set to put out his statement to members in the house of common ls later today. he will answer questions one question will possibly be around the leadership battle and whether he still has faith in liz truss as she leads the conservative party and her prime ministership here in the uk. >> arabile, thank you. >> joining us to take a closer look at the markets is karen

murphy and victoria greene let's start with you, victoria i have to quit hoping for a pivot. that's sad we will go higher. 75 and then another 50 you point out next year, you don't expect a similar year if terms of rate hikes. i'm trying to find a glimmer of hope here. next year we get things under control? >> that's the hope, right? i do think i have been saying the pivot has been dead for a while. 2023 the soft landing is out the window i'm expecting a hard landing recession. i'm team jamie dimon on that it will flip around and it is so bad. it is good people are hoping for a pivot. you look at the market

you have a 50/50 chance of 50 basis points in december the data is aligning for all of the rate hikes with the tight labor market still and you have the inflation print that was terrible broad banks are widespread it is hard to get that out of there. you look at that the fed has no choice until the liquidity problems pop up. you saw the glimmer of hope with the uk locking up. when people start talking about liquidity, that makes the markets nervous and you hope the fed would intervene. our markets are stable earnings are coming in decent. labor market is still tight. it is the weird dichotomy we have everything feels terrible. on the other, the data from earnings from companies is not that bad you have the weird push and pull happening right now both in the markets and economy which is why we see the bounce around >> you say don't sell.

play defense >> yeah. let's not violate the prime directive. buy low and sell high. if you push lower, 3,200 is the base and floor here. if you have zombies or anything crazy in there, if you don't have a credit problem, you are better off holding we have been defensive tilted. you are silltting here and be patient. don't give up your positions because you want a knee jerk reaction we see investors struggle with that the intra-day reversal on thursday, that is closer to the bottom than the top. >> karen, you have similar notions. you expect recession and market declines average of 20% route recession 35% with recession nasdaq is already down 5

everything else is 25. do you try to wait for that last, if we get 10%, i think you agree. i think 3,200 to 3,400 is about right? >> we have similar views i will say we also preach the gospel and live long-term investing. if we haven't seen the market low, there are opportunities here particularly as we get into the last couple months of the year the broad index is washed out. you have 10% of issues trading above the 200 day moving average. high levels of cash. pessimism. corporate insiders are buying. then seasonality moves from the headwind to the tailwind you mix in the midterms which tends to be stronger you think there are reasons stocks could rally in the next

couple months. >> you do both sound similar i understand the idea you could tell and buy 10% from now and hit it exactly seems like a fool's errand to do that, kara how do you play defense? that is what victoria recommended. >> we think exposure to things like dividend paying stocks and high quality earnings. we also have a small value buy these are things where you enjoy the uplift with the market rallying and not get over your skis >> you were at goldman, kara >> i was. >> good move they're making here >> i think they had to do something. marcus was under pressure. some of the changes are undoing what was done a couple of years ago. generally when we see stocks

that look more like their peers, it is better they are more transparent. easier to understand ulti ultimately, it served goldman well >> kara, thank you victoria, thank you as well. in the meantime, when we come back, a second apple store voted to unionize. bank of america is set to report we will bring you the nubmbers and reaction as soon as it hits the tape "squawk box" returns after this. this thing, it's making me get an ice bath again.

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welcome back to "squawk box. employees at the apple store in oklahoma city voted to join the union. the second store in the united states to unionize the labor union will have to approve this effort.

becky. when we come back, china's president xi jinping outlining the policy goals for his third term in power. we will take you live to beijing next. we are awaiting quarterlyk . stock up 1.75% right now. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure nice, but i can't accept it. unless every business gets the best deal. on every iphone. uh, actually... we already do that. the plumber with the ascot! big bjorn, little bjorn, too! the caterer who really cares. every business should get the deal! we make a good team. every business gets at&t's best deals on every iphone. including up to $800 off iphone 14 pro. (♪ ♪)

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good morning welcome back to "squawk box" live from the nasdaq market site in times inquire fut square futures are solid this morning it is october. and ends in teenth we will go to china now. xi jinping is calling for faster military development and showing no signs to heal tensions with the west we have eunice yoon with the latest eunice >> reporter: thanks, andrew. president xi said making china great again is his central task for the next five years. in his two-hour long speech opening the party congress on

sunday, he said that china's national rejuvenation is underpined by a chinese style modernization. that modernization would continue to prioritize national security so to president xi, that means so self reliance and tech supremacy and military tpower to be normalized he would have the guiding principles of narrowing the income gap with the introduction, he said, of standardizing mechanism of wealth an accumulation. green investment is more of a priority and continuation of the zero covid policy he said that the policy achieved major positive results and

argues that the policy protects lives and the economy. even though there is a lot of evidence and anecdotes to the contrary hsbc put out a report saying it believes we would see more policy support for tech for companies and also for attracting global talent the markets here embraced that line of thinking there is a lot of buying and activity in education stocks as well as chip stocks. a local chip stocks. this is a lot of concern within the chip industry about the export controls from president biden and that could undercut the chinese ambitions. president xi's lineup of leaders will be revealed that will happen on sunday after the congress closes on saturday. andrew. >> okay. eunice yoon in beijing

we will keep following this with you. thanks. >> for more on all of this, let's bring in michelle cabrera-caruso it is hard to follow some of this to say zero covid policy has been great what benefits have they seen >> it is astonishing what it has done to the economy of china and not done much with the health outcomes what people are watching for is any evidence of xi jinping lost any grip of power or consolidating power. there is no evidence he lost power. he is now officially a strong man. why would that matter to the u.s. markets there was some hope there would be loosening or increase of reforms and china would grow again the way we grown used to

it over decades. he pushed back reforms control of capital is driven by the party, not the markets the blog, as they live blogged xi's speech. he referred to marxism if there was something he showed to less consolidation of power, you may have seen a positive effect on the u.s. markets chinese market is trading cheap. i was back from the imf meeting. they say it is a trading market. >> the semiconductor stocks are up 9%. they have been beaten up badly >> they have been beaten up badly. i think the local chip stocks may get support from the government of xi jinping because i think you will see ever more capital controls comings from the united states as long as

neutrality remains in the speech from xi jinping. >> now cut off reporting of the third quarter gdp numbers which was supposed to do tomorrow? >> that news broke an hour ago they announced they will not release the gdp numbers. nobody has an explanation. >> probably because they stink >> and cnbc reported that the finance ministry said we are no longer focused on high speed growth, but high quality growth. last week at the imf, the glog growing assumption in china is 2% we were used to 8% >> that happens when you get bigger and squabbles with other countries. >> very bad choices. zero covid is a bad economic choice the decision for 30 years under chao, the communist party was

receding you hear kevin rudd say it is a marxist party. >> you think the covid policy will change? from my read, it doesn't sound like it will there was an expectation it might. >> what i had been reading it might change in 2023 why they want to continue with that -- one explanation -- >> that is not too far away. >> the elderly are very unwilling to take vaccines in china. if you have a spread of covid, the death rate goes up a lot because they have so many people, 1.4 billion people, a small percentage of people dieing is a large number >> it might help if you had better vaccines. >> allow the import of the mrna. >> people seem to take -- i don't know if they were reading into it. sipping tea and coughing did you see this

>> it is interesting the old days of kremlin-ology. who is standing where? who did this >> is it really putin or a stand-in what about taiwan? >> valid on taiwan everybody expected him to be bellicose on taiwan. not markets positive >> you are coming from the imf as you mentioned the imf is focused on the developing nations as you are there. uk had to be front and center. >> the imf world bank meetings traders and investors. youvestment b bankers. they trade sri lanka and colombia they are all skeptical of what is going on in the uk.

what happened this morning, what is happening right now with jeremy hunt, he is saying all the right things most of it will not be enough. for one simple reason. why em traders have so much conviction compared to everybody else we have seen this movie before i'm going to use a phrase that a former boss told me. steve liesman said it is never allowed to be said because it is too boring the united kicon kingdom import than they export because of the soaring cost of energy one data point you know. >> we had a manager that knew what a current account deficit was? >> yeah. >> who >> investors get nervous when the current account deficit hits 6% before the budget by liz truss announced, it was 8% in the uk

she was trying to make it go to 15%. boom that is what led to what you saw. now the cutting the tax cuts a good first step. you know, they have to cut spending in some way they have to cut energy spending >> who is in charge? liz truss or jeremy hunt >> the markets are in charge. >> jeremy hunt is talking to the markets. >> will liz truss survive? not relevant the central bank has to tighten. they have to cut spending. they may have to raise taxes >> same bosses told us not to use cdos >> it could be could be it was about that time it would have been about the same time with the current account deficit. >> we'll trade notes michelle, thank you. >> any of 25 people for me we will see you on "power lunch. thank you. >> no, you won't i'm not here for "power lunch.

you're in a time warp, joe. >> all right whatever you say bank of america is set to report in the next few minutes the numbers and reaction from wall street. we talk to jeremy siegel for his take on market volatility and the fed's xtne move. he is always interesting stay with us power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity

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business license guidance? ahhhhhh. does it connect with accounting? ahhhhhh. item classification? ahhhhhh. cross-border sales? ahhhhhh. what about? ahhhhhh. ahhhhhh. do you have those budget markups? thank you. mmhm. [bubbles] welcome back look at the u.s. equity futures. dow futures up 310 points. we have been up more than that earlier today. you are seeing movement here well above 300 s&p futures up 42. nasdaq indicated up by 133 bank of america is 81 cents on if that is a clean number. 7 77cents was estimate that looks like it is a bit above for the current quarter of 23.5 non interest income down 8%.

provision for credit losses is $898 million we were looking at that other big money centers. net chargeoffs are 520 million it is down on that larger loan loss provision 898. that's up. we'll see whether that is a trade that settles in. it looks like 32.20 bid. the profit is actually what you see with many of the banks last year, for example, 81 cents. last year, the company earned 85 for the year, 317 compared to 357. most of the numbers are lower. it doesn't matter with expectations >> it looks like the stock is

up >> i'm trying to find it. >> you have to go into the earnings release on the web site and get the pdf which i'm still trying to call up. here it is i found it >> leslie? you ready? what's going on? >> i was able to get the release up it is a bit tricky navigating the web sites it was a beat on both the top and bottom line for bank of america. why the stock price is high. revenue up 8% for the third quarter to come in at $24.5 billion. that was $1 billion more than the street expected here earnings were lower year over year thanks to the reserve build that joe was talking about last year the comparable period release. the reserve this year was due to loan growth and weakened macro outlook. average loans grew 12% during the quarter. bottom line is 81 cents per share in earnings.

again, that was a beat compared to estimates net interest income. the profit ability metric by higher interest rates because it makes for a lucrative loan rate environment. expenses up 6% to more than $15 billion including settlement announcement over the financial crisis era from countrywide loans. that was out of $1.8 billion total. the firm paid $1.8 billion in deaf dividends. in terms of investment banking, bank of america saw a slump with fees down 46%. sales and trading looking a lot like peers higher during the quarter, but largely thanks to fixed incomes and commodities. equities were down during the

quarter. in terms of overall macro comments brian moynihan quoted in saying the u.s. consumer clients are resilient and strong and slower growing spending levels and still maintained elevated dep deposits stock price reacting 2.5% 2.5% higher in early morning trading, guys. >> okay. thank you for jumping on and bringing us this news. we're going to keep our eyes on that stock this morning. how americans feel about companies weighing into current events and controversial issues. that's next. you can get the best of "squawk box" on our podcast. we're coming right back.

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welcome back to "squawk box. business on the ballot we've got results from a new poll on whether companies should weigh in on current events here's the story >> good morning. americans believe that businesses can be a force for good in the world but they're divided over whether companies should be speaking out about current events that's the finding of a new poll out this morning from gallop and bentley university it showed a majority, 89% agree, that business has the power to make a positive impact in the people's lives but the public is split over how far companies should go. 52% think businesses should not weigh in, 48% think they should. and that breakdown followed party lines. the majority of republicans opposed, the majority of democrats in favor the bentley university president said that means businesses need to tread carefully >> first, define with clarity

your values and operate within those parameters i believe organizations ought to be able to find a way to affirm their values without alienating customers or stakeholders who may in one way or another disagree. >> there are issues that majorities in both parties agree on, like the need for sustainable manufacturing, reducing wage gaps and, of course, meeting financial goals. guys, this is the first time that gallop and bentley have done this survey and over time they hope to track the evolution in how we view the rule of business in society. back over to you. >> do you think that ceos are going to be looking at this study sort of taking in the wind here and trying to figure out what to do about it? do you think it actually changes what they do >> yeah, i think it's informative, andrew. i think what's interesting is that there were bipartisan agreement around sort of the direction that businesses should take on a number of very

specific issues. but i also think what's interesting is if you dig under the hood a little bit and look at who believes that businesses should be weighing in on some of these current events democrats, young people, women, black americans, asian americans, they might want to look at their customers and weigh in if you're a big retailer, your window for political maneuvering might be much smaller. >> fascinating report this morning. appreciate it. >> still to come this morning, much more on that bank of america earnings report. we've got the stock this morning up by 2.9% after those numbers. and we're going to talk about the jump in the futures with jeremy siegel he's been very loudly calling for the fed to stop raising interest rates we'll see if he still thinks that after the very hot

inflation number that we got on thursday stick around, "squawk box" will be right back.

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as investors look to put inflation fears on the back burner at least for now. president xi jingping kicks off his party's weeklong congress what it means for companies doing business there oil coming off its worst week since august as global recession fears outweigh recent moves by opec to trim supplies we'll get an outlook as the second hour of "squawk box" begins right now. good morning and welcome to "squawk box" right here on cnbc. we're live at the nasdaq market site in times square i'm andrew ross sorkin along with becky quick and joe kernen. take a look at futures on a monday morning we're in the green we got the bank of america

earnings, better than expected the s&p 500 looking to open right now about 47 points higher we'll show you treasuries. you're looking at the ten-year note right now at 3.953 it's come down a little bit. and the two-year at 4.450. and let's look at oil and what is going on there. wti crude coming in at 85.84 and then to the degree that it is the risk asset that seems to demonstrate how people are feeling about the world right now, bitcoin, $19,405. up just marginally but in line with the rest of the market ether up close to 2% there at 1,319. >> the uk's new finance minister announcing that almost all tax measures would be reversed it follows major reversals over the government's plan to scrap

the top plan of top tax. on friday, prime minister liz truss fired her finance minister less than six weeks after the pair took off appears to blame the chaos that was sparked by the budget he announced on september 23rd it included unfunded tax cuts which were billed as a plan to turbo charge the uk's sluggish economic growth. it was part of a key part of truss's leadership campaign. we're going to get a live report from london in the next hour the markets had been tame. there had been concerns about what would happen when the bank of england would stop buying the gilts. you can see this morning, the gilts, yields, down considerably you've seen the pound stabilize. equities markets have been higher too so at least the initial reaction coming from investors is one of, okay, this is what we

anticipated. this is what we expected and this is what they will move along with for the moment. >> let's get to dom chu and bring it back home with a look at the premarket movers. >> let's kick things off with a big bank report of the morning they reported better profits and revenues than expected and that was thanks in large part to better than expected results in its bond trading operations, also the higher interest rate environment here in the u.s bank of america shares up 1.5% in the premarket next up, you have an analyst call out of morgan stanley the analysts say that apple's product mix provides it a greater insulation during a potential economic downturn. up north of 1% right now and we're going to end with a call on fox corp. which is downgraded the company to a neutral from a prior outperform. he also lowered its target price to $36

it was 41. they cited growing advertising recession risk and the quicker pace of customers who ditch traditional cable for streaming platforms known as cord-cutting. some of that pessimism about a contribution of fox corp. and news corp. again that came on friday with the headlines. all of that mixed together, joe, becky, andrew, leading fox corp. shares down f4 1/4 percent. i'll send things back over to you. president xi is speaking over the weekend about china's resolve in taiwan. we'll debate the role of companies doing business in china and whether they should take a tougher stance. let's get a check on the markets this morning again, some pretty nice numbers after friday's close dow was off by 1.3%, the s&p was down by 2.3% and the nasdaq was down by 3%

this morning, some green arrows. dow futures indicated up 3e 0l points, the nasdaq up by 137 and s&p up by 43 "squawk box" will be right back. >> announcer: "squawk box" is sponsored by bit-wise, the world's leader in crypto index funds.

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a third term as companies, government and the public look for signs of what's to come and as china's economy is in a slump and tensions continue between the u.s. and other asian nations, corporations in america weighing in on the pressures of esg. joining us now is executive chairman of strive and also a cnbc contributor i imagine a debate is going to be had here. i'm very curious what you thought of what president xi said over the weekend, but perhaps more importantly, what you think american companies -- and i know you have taken issue with american companies spoken out historically about issues here in the united states but have not taken issue with some of the things going on in china -- what do you think those companies are supposed to be doing, saying or not >> look, i think we are in the worst of all worlds where you can have a principled position where they should that a company

should engage on all social issues i should say that the company should not engage on social issues but make great products it creates companies as the new class of the international arbiters of moral justice. when those companies critique the u.s. without saying a peep about china, that creates a false moral equivalence between the u.s. and china, creating this idea that china is no worse than the united states in its actions. and you can mark my words, the 300-plus companies that cut their ties with russia when vladimir putin made his move on ukraine will not say a word to condemn china as xi jingping goes for taiwan. and i believe this weekend's milestone starts the clock on when he might do that. and this is i think all part of china's long-run plan and that is how you get to the world in

which u.s. companies like chevron have to adopt emission caps while petro china does not or while companies like apple are forced to say -- le >> let's get jeff into this discussion is the hypocrisy worse than taking steps in countries like china and russia >> no, i don't see any hypocrisy here i do see a lot of commercial -- >> jeff, even i will tell you there's hypocrisy -- >> wait a minute -- >> i can make the argument, jeff, for you that maybe it's better to still take these steps in certain places where you can, even if you can't take them in other places there's hypocrisy here >> andrew, you're welcome to join vivek on this unfortunately, i welcome you both to the social impact field. looking at corporate social

impact is not a new topic. we've been at this for half a city the business round table was focused on this. they said we got a license to -- we violate the terms of it, it can be revoked in fact, my first book on this 40 years on this was on corporate use -- i think i still look like that is that, this is not a new topic. what's new is people trying with grandiosity trying to attack ceos for doing the right thing china is not the same thing as russia, iran or north korea. if you put up a spectrum of companies in terms of where their political risks are, they're not the same there are nuances here we're creating strawmen that don't make sense i don't know anybody who says that corporations have to take on every social issue. it's like saying a hospital that has covid cases and a surge of flu and then a bad weekend of traffic accidents and then --

that's enough. no more patients no, you have triage. companies have to decide which issues make sense to them. when a board sits down, they take a look at what's the impact on this company, what's our public policy position companies have maps. they have rubrics to take a look at when to encourage with china, hey, it's different. quite different than russia. if russia is going into a sovereign nation, slaughtered 30,000 civilians, that's different. you know what, when we did see that in the fashion industry, 100% of global apparel makers pulled out of the province it was 80% of the cotton that was coming out of that area. nobody is buying it anymore. but it makes sense because of the forced labor there you pick your issues china has done anything right now -- >> what do you think of the idea -- this idea, you get to pick your issues and that the

argument around hypocrisy, as much hypocrisy as there may be, we're better off speaking out on moral issues in places where you can -- even if -- other places you might not be able to >> so, look, i think that this is really -- your position surprises me a little bit. when you take a look at a behavior of the company like disney that will wax eloquent in the state of florida about transgender issues but does not say anything when it goes to china to film milan, where therefore over 1 million minorities enslaved, subject to forced sterilization and worse in some of the worst atrocities committed by a major nation -- >> i'm going to stop you right now, isn't the hypocrisy -- you're saying these things which are terrible, we're agreeing on tv that you're terrible, and you're aying, everybody should shut up about everything >> here's what i'm saying, in a

world in which companies are not the international arbiter of normal justice, they would not come out smelling like a rose. but now they get a point because they're pulling out of russia, because their decrying racial injustice like nike does here at home without addressing the macroaggressions on the global stage. that is part of china's strategy the ccp builds a great china wall if you apply constraints in china or criticize them. if you criticize the united states, they will roll out the red carpet it's -- >> the hypocrisy -- >> it's worse than hypocrisy. >> it's whether -- >> jeff, go ahead. >> let me finish one second -- >> you have the gop judges saying don't hire from yale law school even those others are the -- the most conservative justices are from yale law school you have people who want to

boycott u.p.s. desantis wants to boycott disney -- >> that political diatribe -- >> ted cruz boycott nike the cancel culture on the right is the problem here intervening on decision make china is different from russia saudi arabia will see a pullback in defense contractors because ro khanna and senator blumenthal have been working on taking a look at crazy deals that we've done on the arms front with somebody who turns out not to be an ally. >> notwithstanding the gop, and i decry cancel culture wherever it comes from. i wrote a book about that -- >> have you condemned governor desantis for attacking disney? >> i don't think that companies -- i don't think cancel culture is best fought with cancel culture. you don't fight fire with fire, you best fight it with water -- >> have you attacked donald

trump for calling for a boycott of comcast. >> if this is a cross-examination of me, you can read my book let's talk about the issue of china. this is the more important issue. you get intel who is in blackrock's climate-focused universe the focus universe of companies that are supposed to take action on climate change. yet they don't say a peep about the actual risks and opportunities posed by china's pending invasion of taiwan this is not just about -- >> we don't know what china is going to do about taiwan -- >> if i may -- this is not just about -- >> if china invades taiwan, that's a different story. >> we're going to have a food fight and people need to be able to hear each other vivek, 30 more seconds. >> if this was just about hypocrisy, it wouldn't be commenting on. the point i'm making, this is part of china's strategy where companies criticize the u.s. without criticizing china, that creates a false moral

equivalence between the companies and that erodes our greatest asset at all, it is our moral standing on the global stage. if you want evidence of that, listen to what xi jingping says when he's pressed by the u.n. on the uyghur human rights crisis he says that black lives matter shows that the u.s. is no better their top diplomat came to alaska a year and a half ago saying that china wants to do the u.s. do better on human rights and china wants to see the u.s. top slaughtering black americans. this would be -- >> jeff, what do you make of it? >> when it comes to the province, all the apparel makers have pulled out. they're not able to sell that beautiful, fine cotton because of the oppression of the uyghurs. china has suffered for that and companies have acted appropriately. if china is -- invades taiwan, then you'll see that we'll respond the way we did with russia we should also point out -- >> what do you make of the idea

of the moral -- >> russia is like a colony -- >> jeff, jeff, speak to his -- the argument that vivek has made is actually about this moral equivalency creating a moral ka none -- >> they pick and choose their battles. andrew, as you know, a lot of folks love to -- in a cult-like figure, worship what milton freedman said in 1971. in that article, people cite it and never read it, he actually says it's in the long run interest of the shareholders for corporations to address what he called the social amenities to be a responsible employer. that's what he says if they actually read the article. there's no gap here. companies have to pick and choose where the issues matter and right now china you can't condemn them from attacking

taiwan if they haven't if they act as russia did -- >> what do you make of the idea of you get to pick and choose. one of the things that happens on this show, we're all looking for a model so everything is consistent and maybe we should just lean into the idea that actually the world is idiosyncratic and you take on the issues you and don't for the ones you can't -- >> general motors doesn't make every car -- >> hold on jeff, hang on. vivek. >> you can take one of two positions either of which would be better than the inconsistent world we're in now companies should engage on all social issues, from january 6th to russia to racial injustice to climate change >> i'm asking you if the world is idiosyncratic, and it is, then maybe there is no model maybe you do it where you can and you don't where you can't. >> that's the idea, is judgment. that's why we have managers there for judgment we have a computer program it was simple, do all or do

nothing. we don't do that in financial markets, product markets, labor markets. why would we do it on social impact >> you want to know why? because the answer -- the answer that jeff gave relating to companies pulling out of china, that was because the u.s. government passed a new statute that prevented actual -- the forced labor act in china. >> that was 2021 they already pulled out in 2019. all of that happened -- >> apple and disney -- >> in 2019, vivek. >> jeff, hang on respond to him and jeff can respond. >> yeah. so if i may, this is part of the reason the answer to your question, andrew, why, it crowds out democratic action on geopolitical issues. when companies become the self-appointed arbiters of international justice inside of geopolitical policy being passed through the front door, that sucks the air out of even the

geopolitical power the united states is able to exercise this is the job of u.s. policymakers when you delegate that authority to companies, whether that's in russia or for social injustice here at home or in china, that puts it in the hands of a party who cannot be trusted to actually consistently do the right thing. when multinational companies are asked by the ccp to jump, the question they ask is how high. that weakens the united states one of the best arguments for esg, it's about looking after long-run investment risks. when you look at the semiconductor industry, well, the fact that the largest engaged esg shareholders in the world will push them on climate change to board diversity without saying a peep about the risk those companies face tells you everything you need to know about the conflicts of interest rate -- >> gentlemen, i'm going to give jeff the last word jeff, this is hard for all of us, i know 30 seconds because we're up against a hard break. >> okay, thanks.

there is -- the impending attack on taiwan, we haven't seen it happen you don't punish somebody for a thought they have or a statement they utter if they attack taiwan, we would respond differently. but they haven't what we see is, just before the break, take a look at a gallop poll that suggests that many people don't want ceos to engage they say that 84% of the public wants ceos to engage for 22 years, we've seen this trend, the public -- this is 34 countries including the u.s., that increasingly ceos are ascended where as government figures, the media, the clergy, the state level and federal officials have fallen in terms of trust, people are looking to the ceos, that's what the data says over 22 years -- >> i got to thank you, jeff. i got to thank you vivek for a fabulous discussion and debate lots of ideas. i don't think we've settled it i'm sure we'll do this again

i want to thank you again. >> thank you. coming up, oil under pressure in the face of renewed global recession fears we'll talk to helima croft wall street may be getting an easier way to offer crypto trading. details lateth hr.r isou "squawk box" will be right back.

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♪ news just out this hour, continental resources founder and his family are taking the company private. buy all the shares they don't already own for $74.28 each. the deal is not contingent on any financing. continental shares are rising in premarket trading following that announcement >> start to wonder if that's kind of like an eop, knowing when to buy, when to sell on some of these things harold ham has been doing this for long enough, he must see a lot of value there. >> it's up from 45 -- >> if you see this is where energy prices are headed, if that's what you think, i wouldn't want to be on the other side of a deal when sam zelle when he's doing some of those things either. another energy-related deal

in the news this morning, bp is buying natural gas producer archaea energy the total value of that transaction is 3.3 billion and that is excluding assumed debt. the metaverse facing issues and failing to meet performance expectations we're going to talk more about that with gene munster and later we'll talk to jeremy siegel for his take on all of this market volatility and what he thinks the fed is going to d next he's wanting the fed to wait and see what's happening how much damage it's doing to the company. quk x"u' wchg yoreatin "sawbo and this is cnbc.

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♪ welcome back to "squawk box. futures are starting out the week solidly this morning. you see the dow up 332 points. nasdaq, 151. solid start for that index which has been hit the most this year

and the s&p, 3600. >> goldman sachs is planning a major reorganization into three divisions. that's according to a "wall street journal" report that says the bank will combine its investment banking and trading businesses into one unit while emerging asset and wealth management into another. a third division will house transaction banking, fintech platforms and ventures with apple and general motors it could be announced within days goldman sachs is scheduled to report third quarter results tomorrow, maybe we'll hear a little bit about it then tomorrow we have an exclusive interview with david solomon we'll talk to him about what he's seeing in the markets and economy right now. opec plus member states

endorsing steep cuts to its output targets the united states confusing saudi arabia into supporting the move to cut. joining us right now is helima croft, a cnbc contributor despite these cuts, you saw prices down significantly last week i think the worse week we've seen for oil since back to august and that has to be because of concerns about a broader -- about a broader recession. that seems that it would help saudi arabia and some of these opec states give a justification for why they're doing this >> absolutely. we continue to see fears about rate hikes, recession, driving prices lower, and has been the argument that the opec members have been making for some time that essentially they needed to come into the market and essentially sort of put in a floor because we were having this sell-off driven by

recessionary concerns. and so i do think the opec action is several put in a floor, but the question is, how much can they overcome this sort of fears about a global recession. >> and i guess just this war of words, things certainly have ea heated up. saudi arabia taking that extreme step putting out a press release saying the u.s. administration is wrong in what they're doing what does this mean, this kind of heated up rhetoric between saudi arabia and the united states >> i mean, becky, it's happening in the midst of theworst energ crisis in decades. and the question is, as europe prepares for sanctions which will embargo russian oil into europe, we have this -- it's coming into place. we don't know if it's going to work or not to enable the russian barrels to continue to move is this the moment when we want to have this ratcheting up of

tensions with saudi arabia because we project there's going to be a 1.5 million barrel a day deficit in europe that somebody is going to have to fill is there an off-ramp and congress has gotten involved in the game in a big way, talking about banning arm sales, antitrust legislation. the question is, does the white house try to dial this back because they see what's potentially coming in terms of disruptions come december. >> those concerns about the potential disruptions in december, i mean, this is coming as our spr reserve has been depleted that was another thing i think the u.s. administration probably thought that we were going to be able to refill the spr before we got into any of these issues but u.s. production has run into all kinds of problems, including issues with labor and higher prices for doing any of this stuff.

>> this is the challenge for the biden administration i believe they believe that they can do this million barrel a day release and come fall, u.s. producers would step up and fill that gap and they've been unable to do so as we head into december, who is going to fill potential supply gap when these sanctions kick in and the biden administration is set to announce measures this week to bring down retail gasoline prices. we're watching could you potentially see the u.s. do a product export ban, a temporary product export ban that might bring down retail gas prices here, but that would impose enormous pain on our allies the europeans are going to ban refined products from russia come february. they're facing such a serious economic crisis with factories and industries having to suspend operations it's going to be very important to see what the biden administration does this week. again, product export ban could relieve some pain at the pump here, but could basically export

more pain to our key allies in europe >> part of this is that the spr was never supposed to be used just to lower prices it was supposed to be a defensive position if there was ever a real disruption to supplies. >> it was designed if you had an outage at a u.s. refinery. the justification for the spr has evolved under the biden administration i think they calculated that u.s. production would be able to fill the gap come fall and so they're talking about, you know, additional volume on sales, but it's hard to believe there would be another blockbuster spr release. what does the biden administration do as they look out over the next couple of weeks, you're thinking potentially more federal gas tax relief or product export ban there's not a great option set to bring down prices quickly, given the fact that we're in the worst energy crisis in decades. >> what do you think wins out in terms of prices? is it going to be more focused

on this disruption and supply that we're anticipating? is it going to be more focused on a global recession? >> i mean, i think right now we're focused on the market -- the market is focused on recessionary fears there's a floor put in in terms of how much we're going to fall. but how do the sanctions launch in december? do the russians say, you know what, i'm going to cut you now i'm going to below evlow everyt. we've had mysterious attacks in europe is that a sign of things to come i think it's going to come to a head in december. >> thank you, we'll be watching. obviously we'll speak to you before then. >> thank you so much. a world without people the metaverse losing users, we're going to speak to gene munster about it and check out the shares of bank america they're up 3% right now. the o lle "weluh"cewi bonpor nc

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welcome back to "squawk box," everybody. we've been watching the futures this morning and all morning we've been up pretty significantly. dow futures right now up by 327. s&p 500 futures indicated up by 46 the nasdaq up by about 151 of course, this comes after a pretty significant down day on friday wall street may be getting an easier way to offer cryptocurrency trading mastercard announcing a program that allows banks and other financial institutions offer crypto trading to their clients. the payments giant will act as a bridge between the company that paypal uses to offer a similar service and the banks. mastercard's role here is to try to help with regulatory compliance and security which is why the banks have avoided crypto the chief digital officer telling cnbc that spite bitcoin losing half of its value this year, they see the benefit of

buying crypto. mastercard said that a number of banks have signed up but declined to say which ones if wall street does widely embrace this partnership model, it may mean more competition for crypto exchanges like coinbase which lost 75% of its value since january. you can read more about this over at cnbc.com breaking news, kanye west -- you're supposed to use ye. i don't know if we get one of those -- >> a prince symbol. >> this is the artist formerly known as kanye west, struck a deal to buy the parler platform. it was just announced moments ago. the parties expect to finalize the agreement soon and close the

deal before the end of the year. coming up, mark zuckerberg's metaverse problems are real. we'll speak to gene munster about that here's a look at this morning's winners and losers in the s&p 500. we're coming right back. nurse mariyam sabo knows a moment this pure demands a lotion this pure. gold bond pure moisture lotion 24-hour hydration no parabens, dyes,

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employees at an apple store in oklahoma city voted on friday to join a union. this makes it just the second unionized apple store in the united states. here's what happens next, they have to certify the vote in the coming week, then apple would be required to bargain with the union over working conditions there. apple has opposed unionization efforts around the country as have most other big businesses that are grappling with this, like starbucks you can see right now, apple shares are up by 1.3%. in metaverse for consumers doved horizon world is failing to meet internal performance expectations this is a "wall street journal" piece today. meta aimed to reach half a million monthly active users in horizon world by the end of the year but that current figure stands at less than 200,000 joining us now is gene munster, loop founder and managing partner. are you one of the 200,000,

gene >> i'm disappointed to report as an investor in facebook, meta, we're not one. we do have the new quest pro on order, so look forward to getting in there this news is disappointing these leaked memos articulate that users -- you mentioned a couple hundred thousand, i would have expected that to be a million by this time the company's internal projections were 500,000 so this is very clear disappoint which begs the question, which is how long is the metaverse really away here how far away from this actually taking off from our perspective, we don't own it today for the metaverse we own it for the core business. but as far as what it's going to take, is that we are -- there essentially is a chicken and an egg problem here these devices, the headsets, the cheapest ones are $400 to get into the metaverse that's expensive they need to get down to $100

price point before you get major lift here. and despite that head wind around the price of the headsets and this disappointing engagement numbers, i'm still positive on where this company can go and more positive on the long-term potential of the metaverse. and i think we can all distill our feelings of the metaverse, whether this is a good investment or not with a simple question is there goingto be a mobile o a platform, a user platform, a consumer user platform beyond mobile if the question is no, that the future -- the next 50, 100, 10 years that we'll only have innovations around mobile, then the metaverse isn't going to take off but if the answer is yes, that there is going to be some form of a computing platform beyond mobile, it's most likely going to be the metaverse. it's not just meta that is trying to advance this cause it's apple, microsoft, google, samsung, there is a lot of investment that's being made to essentially build these future

worlds and so whether it is -- you know, outside of the very damaging reporting this weekend to the status of the metaverse, i'm still optimistic that we're going to find a way forward and that this will be something. >> i don't know. gene, to me it's -- it's like glorified video games. you say it's not a question of if, but just a question of when. so when do you get to 500,000. would you say 50, 100 years? did you actually use those time frames >> no, i was just saying that for mobile, is mobile going to be the computing platform for the next 50 to 100 years >> we're all going to go back outside. it's something -- i've seen those and you can play games on them but really, why are you so bullish on the whole notion? you have to sell me on that. and maybe -- i think certain times you might want to do this

and you don't need that many people that might want to do it. you think it's going to be a societal change as to how we spend our time >> that's basically it i think the way that humans interact, i think our -- maybe to put it in some more dark terms, i think our in some more dark terms -- it just can't be satisfied, and i think we've seen that. go to any restaurant just go look at what typically an interaction is at a table as people are looking down at their phones if we had predicted that 15 years ago, i think one of the core tenets here is that humans are lazy and that they are seeking easy experiences, and i think at the core that's what these are. these incredibly immersive and enticing i enjoy the world very much.

i am also -- and i think the youth will decide on this and if you just take roblox and this is a common support case for the metaverse, but a typical user in the u.s. is 11 to 15 years old for roblox, and they spend two and a half hours per day and that includes school time and homework it includes the fact that the number has been increasing, and so, joe, to answer the question and make the case for the metaverse is that these are inviting and i think people are going to take the bait and once the ball starts going and see actual communities and there's damaging commentary in the wall street journal article and it will get going "the wall street journal" article puts things into perspective where they talk about the hot girls and they

never any at the pool party and let's just talk about what happened to meta's stock it's down 60% over the last year and that's a huge decline, and if you just put metaverse at zero, what would you say about the rest of the stock? because we can talk about metaverse having 200,000 people who will show up here for horizon, but you have 2.5 billion people to show up and it's embarrassing to change the name to meta before there's anything there just stripping out meta, what would you say the stock is worth? >> well, the near-term, certainly not meta, of course, it would be a positive for the stock because investors, generally, it plays into the narrative this it's so far away it won't happen at all and when you look at the investment they lost a billion, and they'll lose a similar amount this year and put that into perspective and apple and microsoft will

spend close to 30 billion on rnd and it's a huge number they're losing to answer your question, if we strip out the metaverse, the stock will go up a lot if that happens. still headwinds around tiktok and what will happen there and ad engagement and apple and some of the changes that they made and to answer your question, i would just say this, it has not played out, and we didn't get in 60% higher we got in more recently, but i think that there is an upset i'm not sure if i answered your question, becky, even times this year even with this investment in the metaverse seems to be a pretty low valuation, and i would say, you know, a reasonable multiple around this, call it 17, 18 times, if you back into the 50% upside from here >> all right, gene thanks what's the problem right now

you'd say it has to get better >> how do you know you're not only 20% right about your whole thesis >> i could be wrong. i think the piece that allows me to be comfortable with this is this doesn't help the news today. >> right >> you don't own it for the metaverse today, two, three, five years from now, once apple starts announcing some mixed reality headwear at wwdc, i think the light's going to go on that this is going to happen with or without meta and that's when we get more optimistic on this as an investment part of meta >> okay. dean, thanks >> thank you >> okay. see ya a couple of corporate headlines for you, as well elon musk reversing course and he had the pentagon pick up the tab in ukraine that they've been

paying the tab for and he tweeted. the hell with it even if starlink is losing money we will keep funding ukraine government for free. according to a report by cnn, spacex sent a letter to the pentagon that it could cost $400 million over the next 12 months. now to news that broke late friday, bostic is facing questions that follow disclosures that showed multiple incidents in which his activity followed restrictions and blackout period. there were also incidents in which bostic incorrectly reported his assets. he said they were not intentional and it occurred on the reliance on a third-party manager who was handling his investments and he said his investments are in accounts in

which neither he nor his adviser can direct. st. louis fed president bullard is leaving the dear open to the possibility that the fed will hike rates by 75 basis points in the next two meetings in november and december speaking at an event on the sidelines of the imf and the world bank meetings. bullard said it is too soon to make that call and it doesn't make much difference if additional tightening happens this year or the first quarter of next year bullard reiterating comments on "squawk box" in august by quickly moving policy to a level that restrains inflation and then officials can pause and reassess the situation >> when we come back, congressman ro khanna to opec's decision to t cuoil production plus, we'll talk markets, the fed and more with wharton school's jeremy siegel school's jeremy siegel "squawk box" will be right back.

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then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours claim over $1 billion in payroll tax refunds. but it's only available for a limited time. go to getrefunds.com powered by innovation refunds. good morning don't adjust your set. yes, the dow is up 330 points. stock futures pointing to a solid opening on monday on wall street in october. we get closer to the opening bell we're coming off another negative week for the s&p 500. that's fourth in the past five

we have the scars to prove it. uk leadership bowing to market and political pressure and pulling a complete 180 and complete 360 and complete 180 on brand-new economic plans and we'll take you to london for a life update and new results this morning from a banking bellwether and we'll go inside bank of america third quarter earnings with brian moynihan later today. final hour of "squawk box" begins right now ♪ ♪ good morning, everybody. welcome back to "squawk box" right here on cnbc live from the nasdaq marketsite in times square i'm becky quick along with joe kernen and jon will join us later this hour and we've been watching significant green arrows this morning. dow futures up 340 points and

the s&p futures up by close to 50 and the nasdaq up by 161 and of course, this comes amid a lot of volatility that we've seen in recent weeks you never know if you'll tune in and see us up 300 or 400 points. if you were watching the treasury yields on friday you were looking at all of the way across the complex, the 30 year, the 10-year, the five-year and the two-year the two-year is up at 4.43%. >> the uk is executing an about face on fiscal plans announced just weeks ago hello again. i won't say good morning because -- i don't know, it's too early to do the math >> i think it's 1:00 there. >> it's 1:00 >> it certainly has been quite a tumultuous time if you want to call it there, and the message

is certainly clear that economic stability needs to be a part of the foray here and that's exactly what the freshly minted uk prime minister who has been in office since friday has tried to do is tried to alleviate the market putting through around 32 billion pounds of what he calls savings effectively to the balance sheets that's $32 billion. different parts of it are certainly around taxes that continue and that means basic income tax will still remain at around 20% or so and the corporate tax announced just last week in order to not raise that, that will still not be raised to that initial 25% jeremy hunt saying that it is unfair to borrow money in order to fund these tax cuts even though he still believes in having coveragetive taxes as it

were certainly some of the notes also coming out from the office of the treasury that is jeremy hunt's office saying that tress' spokesman said that the chancellor said he will meet with all secretaries of state this week to decide on the future spending planswhich wil then be submit to the office for budget responsibility which will happen on friday and of course, that was an element of the budget that was put out on september the 23rd and that was not fool lowed through and the market felt it undermined the office of budget responsibility which would then have put forward on whether it was feasible to put through those unfunded tax cuts and the uk prime minister held a political cabinet call at 10:00 this morning, as well the government is committed to the growth agenda as a note that they've been cystently been saying and the finance minister said that because of of a worsening, global economic situation government is

adjusting its program while remaining committed to the long term reforms, but completely undoing everything that was set forward by kwasi, former uk prime minister and liz truss >> the fiscal plan was plenty to be brought forward today and we are now expecting jeremy hunt to put forward a little bit more of a statement to members of parliament here at the house of commons behind me and that's set to happen at a few hours' time at the same time we are expecting him to answer a few questions then from members of parliament it's going to get very interesting, and i think the only thing still to ask is whether that credibility has now been gained and is this u-turn enough for markets to fuel a sense of stability >> i guess we'll know soon enough thanks appreciate that. let's get back to the market

stateside, futures are strong and mike santoli joins us to tell us what he's watching as the new week kicks off and we'll always have thursday, mike >> for now we do, joe. we have the low set on thursday morning and it was right around 3500 and the s&p we did have a kind of rare and pretty dramatic reversal higher and it gave up a lot of that on friday to this morning's pre-market bump and it's getting some of that back and this is the s&p 500 etf so it's 0.1 of the value of the value itself. since the june lows, the market hasn't given you any net downside to speak of since the june lows and even though yields are higher since then and earnings estimates have been cut substantially and there's not been a lot of great news economically and the recession will be pretty hard to avoid next year. so maybe that's worth something and you have some stickiness around the 3600 level and people

talking about some longer term support around the 3500 area and we'll see how it plays out and the earnings season will mean welcome respite. yields, one-year treasury yields and how yields have eased back the one-year has not and this is a sturdy looking up trend, as you can see. this encompasses all of the market that the fed expects to be doing in the way of rate hikes up 25% in the early part of next year and perhaps coming down the fed has not endorsed that view and this gets you there in the 4.5% range this, you'd probably want it to flatten out to reflect some of that and that would give stocks a little bit of help meta, a lot of talk about the perceived failure of a lot of its metaverse investments. take a look at some of the big, important stocks that are really in big declines on a longer term basis. five years, this is intel and

meta both down a similar amount and different paths and way underperforming the s&p 500 a lot of time and whether the indexes are frustrating and perfectly plausible, but you're starting to see the wreckage along the way and the market saying these companies are beyond the growth phases and they've been outflanked by employ cotigz, whether that's tru ore not it seems good when you have hope leave some of these valuations, joe. >> all right, mike the one thing that i've seen put forth a couple of times is we may still see more downward revisions and earnings if we go into a recession and recessions typically command lower multiples. it's just the double wham they might explain why people think another 10% dun as a possibility. >> it's hard to escape the math of that, joe although on the other hand, the majority of years when the earnings were down year over year the stocks didn't go down it's one of those and the leads and lags are tough to figure out

exactly where the market's already gotten to in terms of expectations. >> average downturn in a recession is 35% isn't the nasdaq down 35%. what is the market 36%. what is the market the s&p at the lows was down 27. that's basically the median recessionary decline it's tough to sort through you could argue we started at a very high valuation level this time around. also, the timing doesn't really match. if there was a recession next year, the market peaked too soon based on history, and if the recession is next year then the bottom would be too soon if it were last week so i think it's tough to apply the patterns to what we're seeing right now >> just the commentary over the weekend saying the fed will have to cut rates during the end of next year in 2024. it's such a sped-up time line to

be looking for lower rates >> yeah. history says the fed doesn't usually just stay at a plateau for a very long period of time look, higher for longer is what they want everyone to believe is the destination rate for a while and maybe that's true, but i have very little faith in projections of where the fed funds rate will be beyond several months if we're talking about late 2023 too much happens in the interim to chart any path today. >> okay, mike. thank you. see you later. our top earnings report of the morning is bank of america leslie picker joins us, and she has a wrap-up of the bank's third-quarter numbers. leslie, the stock was up instantaneously after th numbers came out. >> it was up instantaneously and it's helping drive all of the major banks higher, as well. the call wrapping up a few

minutes ago and the cfo addressing the key issues specifically as it pertains to consumer loan pipeline and he said if there is some sort of recession they'd expect demand to soften, but they haven't seen that yet he did note, think, that mortgages were the exception to the demand picture due it higher interest rates overall, the firm beating up on the top and bottom line to come up to $24.5 billion and thanks to the reserve bill and the reserve this year was due to both the loan growth and weekend macro outlook and the average loans grew at 12% during 3q. net income, that's been boosted across the banking sector because of lucrative loan making was up 35% during the quarter and the rest of the peers, bank of america did see a slump with

fees down 46% and fixed was the standout and equities trading was down 4% which is something we've heard thus far we'll hear from brian moynihan, ceo today at 2:00 p.m. on "power lurn" l lunch" as he sits down with our sara eisen. >> he reiterated what we've been hearing in the comments from the press release this morning just that the u.s. consumer is still pretty flush and the rate of growth may be slowing down in terms of the spending, but then again if you look at their bank accounts they look better than they did pre-pandemic. >> if you look at fourth quarter 2019, credit card charge-offs, even that is double the rate we're seeing right now and a lot of that has to do with the holdover from the pandemic

stimulus money and people weren't spending as much before the pandemic on this media calling they did see some of their customers take money out searching for higher yielding products and they want to make sure they have enough cash on the sidelines in case they do go into a recession and we're seeing an interesting dynamic and i don't know if we've seen this in history in terms of what's going on in inflation and the pandemic and what's happening with regard to these deposit levels that remain so high regardless of all of this recession talk. >> leslie, thanks. all right. coming up, we'll speak with california's ro khanna first, as we head to break a few more of this morning's top business headlines news corp. and fox forming

special committees to look at the idea of recombining the two media companies and news corp. trading higher while fox is down apple shares are higher. morgan stanley naming the tech giant a top pick given what the bank calls its greater insulation during a market downturn stay tuned you're watching "squawk box" on cnbc

. welcome back to "squawk box," everybody, the futures indicated higher down 211 points and the s&p futures up by had and the nasdaq up by 145 opec plus reaffirming their support for cuts to crude oil output we have new statements from saudi arabia and officials as wellas the uae, algeria and energy executives and other countries follows a white house claim late last week that saudi arabia pushed several other nations into the decision. our next guest interviewed the bill in congress to halt u.s. arms sales to saudi arabia in response to the opec cuts. let's bring in congressman ro khanna of california he and senator richard blumenthal are behind the new bill their latest is the call the

best way to respond to saudi arabia's embrace of putin. this is multi-faceted. i'm sure you've heard and will be able to respond to all of the different caveats and nuances of this, but i guess the first thing i'd probably say is if not saudi arabia and opec, if they were to cut off our oil and if we were to anger them through what you're suggesting where do we get enough oil to run the global economy >> joe, we produce a lot of oil. we can stop exporting it, at least temporarily, but the big thing is that we provide the saudis with almost 70% of their weapons. we have more defense cooperative, arrangements with them than almost any other ally and we're producing those weapons in saudi arabia. our technicians make the saudi planes fly so for them to make the cuts at a time when americans are suffering at the pump is just ungrateful and we ought to be firm and ask them to reconsider

the decision they're making almost 70% profit on each barrel of oil. >> in the past, whenever opec has decided to either cut or expand production we never tied it to russia because we didn't have a war going on and couldn't point fingers at putin opec plus is fully aware of what central banks around the world including in the united states are doing in terms of raising interest rates to cut demand, and we probably may have a hard landing here and we may have a mild recession and certainly there's a global slowdown. why isn't this something you would expect oil produces to have higher prices it's just a business decision. it doesn't mean that they're being forced into the hands of russia this may force them into the hands of russia. >> joe, the economics right now, they are making almost $80 billion in 2022.

they are making 70% margins on each barrel of oil because of american technology because we gave them the most efficient technology to be able to drill some of our oil companies have both criticized and helped them with the technology. russia does not have that same margin russia, because they're selling it cheaply to china and india, they're providing a $35 discount, russia doesn't have that margin. so what's driving in part this decision is russia to be able to finance the ukraine war and what is upsetting to senator blumenthal, me and other senators >> they would quote the godfather saying it's business it's business and why take a chance of destabilizing the middle east? we know that saudi arabia is kind of a -- i don't know, a pushback against iran's, you know, intentions that is

important for the west and it just -- it just seems like you're throwing into this mix something very dangerous that it sort of stabilized right now because of those opposing forces and this has the potential to destabilize the entire mideast >> we're not saying that we should not have our troops there, we're not saying that we shouldn't have a relationship there. we're just -- [ no audio ] >> yes we see that. he froze oh, okay thank you. i thought he was thinking real hard are we going to get him back still frozen so -- >> look, there is an interesting play coming about here we were talking this morning about how congress has really upped the game here, too, there's rhetoric going back and forth between the biden administration and the kingdom of saudi arabia at this point to have congress paying into this,

too, raises the stakes >> we need, obviously the opposing viewpoints with roe and roe has talked about transitioning quickly and the congress has to renewables and obviously, the world runs on a lot of oil still at this point and hydrocarbons and we've sort of had one thing about saudi arabia and we say the same thing about am doestic production here and it doesn't make sense. >> we've spoken with them recently about the idea of freezing exports >> i don't know if that's a good idea either. >> it would cause pain to european allies if we were to do that right now i thought his idea was there to be a carveout for europe this winder as they're feeling the real brunt of the pain from russia and being cut off from russia and gas supplies. it's putting some pain to european consumers and european businesses >> the saudis do have their own

issues internally and maybe some of it does have to do, and it did seem personal even though business isn't personal, it did seem personal with the biden administration >> it's a long history >> we will go to break and try to get him back. i told you what i was going to suggest. i do like congressman khanna, and i was going to offer to be minority leader of the democrats in november. >> oh, i see >> i see what you did there. >> i see >> minority leader >> think >> i got it. >> i think he'd be good. i think he's reasonable. >> how about the ro-jo ticket? >> the ro-joe ticket -- >> even being a governor and they call you at 1:00 in the morning and you've got to go, andrew, right? it's hard to be governor and i don't know if any of us are --

>> will you show up every time you need to? >> you have the job, you have to do it. >> you have to decide if you want the job. >> coming up, a lot more on "squawk box" with wharton school's jeremy siegel follow and listen any time we're coming right back. flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. welcome back to earth. thanks, it was pretty life changing. dude it was eight and a half minutes. i didn't even get to finish my burrito. technology lets you vacation in space, but to get work done on earth... you need more than technology.

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welcome back to "squawk box. goldman sachs planning to combine its divisions in a reorganization of the bank according to people wo spoke with "the wall street journal," one unit will house investment, trading and wealth management and a third will take control of transaction banking and goldman sachs set to report third-quarter results tomorrow and we should mention we'll have an exclusive interview with ceo david solomon shortly after so we'll be able to talk about the numbers and the re-org and everything else. ho'sn ing up, the wharto scol professor jeremy siegel will talk about things getting in full swing. stay tuned we'll be right back.

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all right. let's take a look at the futures this morning we've been in pretty sharp, positive territory all morning long right now the dow continues to be up by 220 points ahead of the open s&p futures up by 45 the nasdaq up by 160+. in the last few days we have gotten an early look at third-quarter earnings and most of the big banks reporting this week should bring broader clarity with results from companies like johnson & johnson, netflix, tesla, snap and american express

so far the results are better than had been anticipated and it's one of the things driving the market higher right now. joining us to talk more about it is professor emeritus of finance at the wharton school of business, jeremy siegel. professor siegel, let's talk about what we saw with inflation. the cpi number we got on thursday was higher than expected and we've seen a lot of things kind of come through and it has people thinking that the fed will keep rates higher for longer i know you've been an advocate of having them slow down and see what's happening and bullard from st. louis, the federal reserve bank of st. louis fed president said he could see the door being kept over for 75 base us points through november if that happens, what do you think happens to the economy >> becky, that core rate looked very bad, but let me tell you that it is not an accurate look at the core rate of inflation.

let me tell you why. 40% of the core rate of the cpi is shelter and housing so let me give you a couple of statistics that show you the way it's constructed is so lagged that it was way overstating in 2021 and way overstating what we have right now. since march 2020 when the pandemic began until this summer, the kay shiller housing index was up 40% the zillow and apartment list randall index was up 30% guess what the cpi shelter index was up only 11 because of the lagged way that they constructed. jason furman, great economist. i think he's one of the cnbc contributors and he's been on your show quite a bit, he decided last week what happens if we put a current rental like zillow rental into the cpi

index? and he tweeted this late last week and the results were really shocking what you got was that core inflation on a three-month annualized basis and this is a measure that jay powell has looked at reach 16% in 2021. more about double that the official number was and by the way, it was in the first half of 2021 and the fed there was no inflation problem at all and what's the bottom line and it way understated the inflation we had and we've had much more inflation and now when house prices are going down and when rental rates are going down and i don't mean they aren't jumping from where they were a year ago, but not as high as they were now if you take a look at these indices, we should have a negative number there instead of

a positive and the way they constructed it is we'll g get .7, .6 plus .8 for month after month after month and 40% of the core will look horrible oh, my god the fed isn't succeeding and we'll have to keep on hiking rates when it is giving a totally distorted view of the actual on the ground rate of inflation. i think that the fed has to re-think about using current data and they will see that their policy has worked and inflation is down and those core statistics are not giving an accurate representation. >> hey, jeremy, it's interesting that you bring up jason furman because he comes from the larry summers camp that says the fed needs to keep raising rates and the fed started too late just like you did and they are in the camp that the fed needs to be super aggressive that once inflation looks into the wages

as it has that it's a much stickier thing and much harder to kill. >> i know that jason has made that and i wonder if his recent research might have him think, my goodness, he intimated that when he tweeted it, this might mean that forward-looking inflation is much less than what we actually fear i'd like to hear jason on that because i think, certainly, there's a lot of inflation in the pipeline no question about it, and i -- you know, i think you've got to let that go through the pipelines that are just beating these non, what we call market responders like medical inflation and all of that, that's going to go through the system going forward if you try to beat that down and

you mention wages. they're not going up as much as inflation and that thursday number, and it wasn't reported much and the same time we got the cpi number we got that wages have fallen 3.5% behind inflation year over year it's hard for me to think that that's going to be a big cause of pushing inflation when the wage earner is falling behind inflation, and i think putting the burden i'm saying, oh, my goodness, we have to stop the wage earner and stop him or her from getting wages to stop to catch up from all of the inflation -- >> if you had inflation keeping pace with inflation we'd be in a world of hurt right now. you want to crush inflation and other things may happen along way, but what we're saying is should we permanently hire them?

he and she has faulten 3.5%. >> i know, but that's a recession of wages as much as a recession of inflation. >> do you want them to fall further behind inflation because inflation will be in that pipeline for much further. >> to say that it's wages that's the problem here because wages have been higher and it's just they haven't kept pace with inflation because inflation has been so out of control >> i know, but what i'm saying is the actual rate -- i believe it should be minus 0.7 in shelter. if you put that in core inflation is near zero right now. >> so wages are picking up better than anticipated. >> and now it's a wage to catch up to that particular point and something else that's really important. everyone said the fed's not -- the policy is not working. well, listen, we know monetary

policy takes 12 to 18 months they exploited the mono supply in 2020. did we get it? no the fed doesn't recognize it until much letter and when did they start tightening? in march, all right? so we've had six months of tightening and do we expect that already to appear in the core rate of inflation? >> no. but if -- just like the explosion on the money supply in 2020, it's going to take time. i think that the amount of tightening in the high 4s a or 5s oz larry summers suggested is far too high and we'll definitely risk a much stronger slowdown than we need. right now the money supply as

i've mentioned has been over a six-month period 5% a year is consistent with 2% inflation and if they keep tightening it will push the money supply down and that will cause too severe reaction, and they've got to recognize that the shelter prices are just not current prices and they're a big part of the core >> jeremy, what -- what are the real implications? let's just game this out if they raise 150 basis points in the next two months what does that do? because you think they've already risen too much and you expect a downturn. >> i would call -- i mean, 50 now and then a stock and i wouldn't mind because they will see in, and as it should first and the services come down later. i worry about this idea that we'll stay in the high 4s as fed

funds futures as powell, higher for longer that worries me the most i think they're going to have to bring the rate down a lot during 2023, and si thi think that's w scaring the market higher for longer because the market does see these higher rates are going to pinch and they're pinching the interest sensitive parts of our economy already. i think we will have the second biggest housing price decline of post-world war ii period over the next 12 months and i mean, that's a very, very significant factor for wealth and for equity and the housing market so i think that they've got to slow down and wait and see what the tightening has already wrought on the economy >> let's just talk about this idea that the markets and the equity markets are waiting to watch for the fed pivot. they're anticipating that there

will be a point and we're not raising rates anymore and we'll remain flat or start take the fed down and what the fed chief had wanted was to slow down the excess in markets all over the place and probably in terms of slowing things down and letting some of the air out and if the market senses anything as any pause as a pivot and then reflates, that's probably not an outcome they'd like to see i know it's a behavior all psychology question, and jay powell and the fed has xom thinking most importantly, highses, sinking i mean, they seem they're

oblivious to catch up and core inflations and it's sort of a ten-year why don't they acknowledge the progress that they're making it is psychological. they so underrated what inflation was happening over the past two years, you know, they're going to say oh, my goodness all right. well, i'm going to stand firm and i'm not going to let any light through and crush it at all costs and that's not the right solution, in may opinion >> all right let's just talk about how volatile the market's been you're talking about 151 for the dow futures this morning and we saw big swings last week even though we got the hotter cpi number on tuesday and the market ended up higher, 800 points after being down 400 points and you saw on friday the reversal of that and the nasdaq was down 3% on friday and just these big swings that we'regetting on a

regular basis and this as the markets are trying to figure out what's coming next and what to make of it jer jeremy, what would you tell people, you're someone that long term is always positive about what happens to markets and over time they go up. >> i think we're 20% undervalued from where we should be. now, does that mean that tomorrow or next week it's going to get there no we know that, and there may be more down side if powell keeps on talking tough and doesn't recognize the progress certainly there is a downside and my feeling is the long term prospects and the reason why mike santoli said, you know what the market has been remarkably stable given all of the bad news and look at the earnings the earnings are not coming down that much and we're just beginning in an earnings season

and yet, look at the decline 35% for nasdaq, 25% for s&p and just about matches a recession coming up and that's not absolutely certain it would be if they stay at 4.5% for the next year. my feeling is they'll begin to see that slowdown first in the labor markets and jobless claims and the jobs data which went down quite a bit last month and we'll see if we continue to get the next report there and then they're going to ease off. i think that, you know, the market's looking for any hint that the fed sees that they have made progress and then i think that the rally from these lows will be very strong. >> professor siegel, thank you we'll see you again soon. >> thank you, becky. >> coming up, jim cramer's take on the trading day ahead and we'll play you with our conversation with albert burlow

speaking out for the first time since having covid twice in two months and we'll discuss the implications as well as how people are thinking about boosters, paxlovid and more. stay tuned you are watching cnbc. we are live at the nasdaq marketsite in times square

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series call "special edition." >> i was surprised that i got it twice. i didn't have the opportunity to sequence the virus because i was not in the country when i got it i was actually in the uk, and i spent five days in the hotel. it was very light in symptoms and i do paxlovid again and i became negative in two and a half days, i just had to stay in the room for five because that was the rule. >> how are you feeling now >> feel very good, very good. >> and were you surprised? >> probably if i have to take a guess it was a new strain and when i got it back in august it was the old strain of omicron. >> between the european parliament about whether the vaccine was tested on stopping the transmission of the virus before entering the market has now gone viral

i asked bourla to respond called mandates and the covid passport based on what they said was a big lie. >> i don't know what he's referring to, but -- >> did he take paxlovid? >> the vaccines were tested extensively in clinical trials and they were tested extensively in the real world setting. there is no other vaccine in the world that has been tested and there are data from independent authorities and not from companies, but they spoke about infections and they spoke about severe disease and they spoke about crystallizations and they spoke about death and the vaccines have an effectiveness in all of them the effectiveness in infections over time wins so the 96% that we had recorded in the clinical trials -- it was confirmed and real world data. >> in terms of transmission,

then or infection then that was bizzed on the first variation of covid. >> and then, of course, we had different variants and the vaccines continued to be effective in real world data through the new variants with the exception of omicron the first variant that was able to significantly escape the protection of the original vaccine was omicron. you can watch the entire interview withal brt bourla and it is at 11:30 p.m. and the episode will also be available on demand on peacock, youtube, nbc news.com and elsewhere but what was so interesting is a lot of people say oh, my goodness, the ceo of pfizer is getting this twice in two months and has taken the vaccine and

was boosted four times and collectively -- >> four shots. >> he took paxlovid in both cases. what's going on here interestingly, he had not taken the latest booster because when he got it in august you have to wait two or two to three months, depending on what they're recommending. >> when he got covid in august >> he didn't then take the new booster. i have not been boosted, actually i'm going to do it this week my parents happily have. my dad's turning 80 this week. >> was that a paxlovid rebound >> no. what he leaves happened, and this is the reason for getting the booster today, is different variants so, omicron in august and whether today, what you're seeing in europe, is a huge number of new variants that are connected to ba.5, which is sort of a -- this is a cousin of that, and so if you get the -- if you get boosted, it may not prevent transmission, and this is the interesting part, it may

not prevent transmission but definitely seems to be preventing death and severe disease. >> but the second time he got it wasn't bad anyway because he had just had another variant so, with or without a booster, he was okay the second time from the natural immunity >> i still wonder -- >> the question is, how much of that -- >> does paxlovid take the onus off your own immune system >> there's mixed results on that so far there is a theory that somehow, if you take paxlovid, a, there's a possibility of rebound, and by the way, there are some doctors prescribing it instead of the regular five-day course, recommending a ten-day course or continuing it for longer there's the second question of whether when people are taking paxlovid, whether it's increasing their antibodies or making it less there's a new study out, just in the past two weeks, that suggests, actually, you get more antibodies protection after taking paxlovid. so, it's a little bit of both. >> especially if it reoccurs >> the big issue right now is that only about 13 to 15 million

americans have been boosted. and when you think about, there was a period of time where we were having 4 million people getting the vaccine a day in america. originally and as we walk into thanksgiving, walk into halloween, i think there's a real concern, if you look at what's happening in europe and how albert broula talks about this, three to five weeks, we've followed what happens in europe historically we'll see if that's the case, but if it is, clearly, we're going to have another surge come this fall, and the question is whether we're going to be ready for it so, we will talk about that and more you can watch the entire interview on nbc news. now 10:30 p.m. easterntime on nbc news wednesday night. "squawk box" comes right back after this

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get down to the new york stock exchange, jim cramer joins us now i like nonfinancial companies when they report, jim. i think we should get a lot of insight into where we are. it all, i guess, goes back to the fed, but not really. i want to know how u.s. -- american business is performing. >> well, look, we had pepsico last week, and that's just a

classic american company they talked about headwinds going to tailwinds as the cost of commodities goes down, and the stock did really well, and i think there's a sense of belief that it's not possible to pick an individual stock and do well. it's just the opposite if you have the right stock that can handle this inflationary period, it's going make you a lot of money, so people should stop giving up and start working and finding things that go higher, because there are stocks that go higher >> you hear jeremy segal talking about that the actual numbers we're looking at aren't necessarily indicative of the true state of things in terms of shelter? >> yes yes. i mean, look, wilson calls for a bounce today look, i have to think that jeremy's been, you know, when things were going bad, jeremy was right there saying things were bad i listen -- his last number of the lowest number of being the future is very, very bullish it's just that we got to get there. and i think to get there is going to require a strong stomach, because if they give up

the gains today, joe, you know, it's very dispiriting. >> yeah. you handled the cowboys pretty well, jim. and then i'm not even counting the phillies out of -- do the yankees look like they really -- like they're going i don't know >> the only favorite that's doing well philadelphia is a great sports town right now >> san diego, though, is on course to handle the dodgers >> very dark horse, but they're a good team. we're a good team. what's impressive about the eagles is they almost gave up in the second half, but they're a very both sides of the field, howie rosen's put together -- >> jim, i shouldn't say this, but it was my perfect bet yesterday. like i'm not a big yankees fan so i wanted the yankees to lose so i bet $50 on the yankees to win. so, they won so -- but if they had lost, i'd be happy too it's like one of the few times in history where it's, like,

truly a win-win. >> usually, if you're betting on your home team, you know it doesn't help i had jamar chase on my fantasy team joining us right now for more on the markets, just over 30 minutes to go before the opening bell, global market strategist at jpmorgan asset management good morning to you. you've heard, i hope, both mr. cramer's views on the world, also mr. segal's views on the world. what are yours >> hopefully from a market perspective, we have some certainty of some areas and a great deal of uncertainty in others if we think about what is priced into the markets right now, we've been talking about recession risks for months now, so i do think that when the recession does eventually come, probably next year, it's going to be something that is very unsurprising on the other hand, we have been talking about the fed all year as well, and there's still a considerable amount of uncertainty when it comes to what the fed is going to do next

year, and into the end of this year as we think about the fed fund ceiling right now versus what the fed thinks with the market -- the fed thinking about 4.6%, the market thinking nearly 5% that gulf between expectations is going to continue to foment volatility in the market >> so, meera, are we in a bear market rally of sorts, or is there a turning point here that's just taken place? >> we're still very cautious on equities we do feel we are still in a bear market rally, because we haven't had that relief coming from the fed, and in fact, things might get a little bit choppier from here as long as there is big gulf between market expectations and fed expectations in terms of where the fed funds rate goes, so i think we're going to have to continue to be patient for the rest of the year with these markets and expect that markets are going to continue to be very sensitive to incoming data, to headlines. we're seeing markets being sensitive to some of the things going on overseas which, in the u.s., is not always typical, so i think we have to be patient with the equity market in this environment.

>> okay. meera, we appreciate your perspective on all of this, and look forward to talking to you again very, very soon. let's take a quick final check on the markets we are in the green ahead of the market open. 15 seconds until we hand it off at 9:00 and half hour before the market's set to open join us tomorrow "squawk on the street" begins right now. ♪ good monday morning, welcome to sq"squawk on the street," i' carl quintanilla with jim cramer and david faber. futures with some solid gains as the pace of earnings accelerates this week. meantime, the bulls get tail wind from lower yields, softer empire, and this market call from morgan stanley. road map begins with the tailwind for the bulls >> plus, bank of america shares are going to be up, at least that appears to be the case. the bank did top quarterly