after the takeover the twitter he is already cleaning house details straight ahead. amazon shares plunging after the company guidance came in lower than expected. we'll tell you about the numbers. two big reports in the next hour we hear from chevron and exxonmobil they probably made pretty good money. it's october 28th, 2022. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin.

the nasdaq indicated off by 120 points as all of the big concerns of technology were large. yesterday after the bell and earnings the nasdaq off 120 s&p down 22. it was down yesterday, too the dow down 33. the dow was the big performer after the mixed close where the dow was up 195 points. all of the industrials performing this is in the words of jeff currie, the industrials have been strong and beating expectations and better than anybody had hoped for. the s&p yesterday was down by 0.6% the nasdaq off 1.6%. especially over what happened with meta platforms. if you look at the treasury yields, you see the 10-year treasury is yielding at 4% 4.01% right now. the 2-year treasury at 4.375%.

we will hear from chevron and exxonmobil in the next half hour after the exxon report, we have the interview with the ceo darren woods at 7:30 eastern time industrials. on the data front, we get september personal income and spending at 8:30 a.m let's talk about the big story of the morning maybe the last 24 hours. elon musk completing the takeover of twitter last night against his will finally capitulating after the deal closes and musk began cleaning house fired four top executives. including the ceo and cfo. he later tweeted the bird is freed. twitter stock will be removed at the start of trading on tuesday. between now and then, it will be

as if twitter is halted. a couple of notes. parag and ned left before being fired. they knew and took off the big issue inside twitter right now and the issue of the moment is the vesting schedule for employees at twitter is november 1st >> they have to do the layoffs >> tuesday is the day if you had been working for the company for the last quarter or what not, you typically would have been paid the way they would be paid is in cash, not stock. that's what he agreed to do. so the big question is is elon musk going to be a good corporate citizen? they worked now virtually up until the end of the quarter and pay them as if they worked until the end of the quarter by the way, that would be likely several hundred millions of dollars in cash. he just paid $44 billion in cash

already. he would have to go in and spend another several hundred million in cash. >> for people you plan on firing >> for people he may plan on firing the question is do you do that within the next basically five days i think if you talked to twitter employees, the central issue, the only issue is november 1st is when we get paid and are we getting fired before then? if we are fired, is he going to pay us up until then >> for time served >> $44 billion is a lot. so a couple hundred is not another couple hundred you look at that one of two ways. >> at a time when you feel you are overpaying. >> over paying you pay severance to anybody who is severed for lack of a better

word a couple hundred on $44 billion. he doesn't always care how he is viewed in the media and press. i think in this regard -- >> you think he will payout? >> i do. >> i hope he does for the sake of the employees. >> maybe he is watching now. dang it. >> he's in san francisco right now. >> he sees it. he was responding to the interview we were doing. >> the secondary issue of the four executives if you look collectively are entitled to $200 million that would not necessarily be paid out tomorrow. >> just the four of them >> i believe collectively. >> everybody else is a couple million dollars? >> the others, the vesting for the quarter. one is the vesting of the employees collectively for the quarter. the other is the golden parachute. you can either like this or blame the board. they created the golden parachutes for the executives

trying to get them to stay amid all this collectively, if you do the math, you get as high as $200 million. does that go into litigation because he could turn around and say he doesn't want to pay >> that is not connected to the november 1st deadline? >> no. that is not something he has to pay tomorrow maybe pay 90 days later or 100 days i don't know the days. at a time when he clearly was trying to raise cash as quickly as possible to complete the deal i hope he doesn't have to raise additional cash. he would need $200 million on tuesday. >> he may have that on him >> you think >> yeah. he could maybe. bitcoin. >> i don't know. >> did you see the 10-year treasury yesterday 3.95 >> it was at 4.0% this morning

>> i still say that the two negative quarters did not say we were in a recession. the 2.6 does not say we're not in a recession i still think that is the case shares of amazon are a prime example. prime example! huh? revenue grew 15% in the third quarter. that fell short of estimates the fourth quarter guidance weighing on stock. amazon expects revenue between 140 and 148. >> billion >> street looking for 155. what a company >> billion >> what a company. it may be $1 trillion if it opens at 96 where it is indicated right now below $$1 trillion a lot of sales is dollar related. i don't know why we weren't thinking about that. i will tell you what is

interesting. we will do apple in a second the way it is characterized. all of the tech companies flourished in the pandemic as live and work shifted. now as things are reversing, they are not doing as well >> aws was 27% >> then apple on the front apple with record quarter. continuing the pandemic fueled streak everybody else, the party was over and everybody was looking for a chair when the music stopped. for apple, they are attributing that >> we will talk about that in a minute >> advertising revenue $9.55 billion was above expectation. amazon web service of $20.5 billion fell short >> that was still 27% growth

that is incredible growth for expectations were so high. >> if you go back in and decide the market is what you want, do you go back in and buy tech because it was the quickest grow error down 60% check this out these seven companies lost $3.6 trillion in last year. with the after hour moves, amazon takes over alphabet for the top spot on the list with its market cap down $814 billion. >> then the meta drop of over $600 billion i saw another article yesterday that pointed out remember the rule that amy klobuchar wrote a law that would be targeting the big market cap tech stocks it was written especially for facebook at the time. >> with the ridiculous thresholds >> you had to have at least 50 million users, i think, and at least $500 billion in market

cap. >> market cap. >> it is falling below the market cap the law written for it would no longer apply to it sdp >> have you talked to elizabeth warren we socked zuckerberg with the wealth tax and he lost $100 billion. do we get that back? >> i think they would have some credit program >> is it like the capital losses it takes 30 years. >> the anti-trust fees we talked about this forever the universe of innovation for companies in a capitalistic free market system, joe. >> you point to melike i like it and you don't >> i do. >> i do advocate for that system >> if you look at the companies with the top ten market caps over the different decades, it

moved around a lot facebook looked like it was owning the universe two years ago. now it doesn't >> the issue with the regulators -- >> you like tiktok more? you are not on facebook? >> no, no. i'm an insta it's a problem i have an aaddiction >> finish your point >> does the natural market unto itself, you know, the idea we need to break these companies off. we need to regulate them out of existence or out of something. clearly in this case, facebook is not doing nearly what it was doing two or three years ago >> i will say this is the case of the threat of not being able to buy anything else facebook could not buy anything else it is spending money trying to build what it can't buy. >> that doesn't require you to break up the company that's the point by the way, you can make the

same argument around microsoft which as some people argue google was a creation of the fact that microsoft couldn't do anything >> chew on this. >> yes, sir. >> we will get chevron and exxon. they made so much money because of putin we need the windfall what about every company that benefitted from the horrible pandemic nothing to do with them. out of their control the external event came in and juiced their profits doubled profits. that is another area for windfall profit tax. a lot of them we have to go back and bring in some of that tax revenue. >> some tax revenue which is now gone >> exactly. >> you need to go to lunch with elizabeth. >> how about moderna if it wasn't for coronavirus and lab that developed it -- i'm

allowed to say that on twitter now. wahoo! just not here. >> exnay we have to go. we will talk to jeff seinfeld about the musk takeover. the twitter stock and so much more you are watching the o anend only "squawk box" on cnbc. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. this thing, it's making me get an ice bath again.

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analysts were looking for $4.81. revenue hitting $66.64 billion ahead of the expected $52.2 billion. that is up 50% year over year and down slightly compared to the second quarter ceo michael werth noting the company is growing supplies. production in the permean up 12% from last year worldwide, net oil rose to 3.03 million barrels during q3 up from 2.9 million in q2 chevron repurchased 3.75 billion shares in the third quarter which is 1% of shares o outstanding. joe. >> pippa, pretty good results. we had a long conversation about that obviously what is happening around the world was good for u.s. oil companies and international oil companies as

well it almost looks like profiting over the misery inflicted on the rest of the world by vladimir putin and other issues what will you do it is what it is thank you for the report we'll talk about it all morning long >> we should tell everybody. we booked jeff seinfeld to join us to talk about the pressure on mark zuckerberg after the drop in meta stock. we have jeff here. we want to start with the takeover of elon musk's twitter. if you want to weigh in on the conce conversation, jeff do you think he is required to or should payout the 7,500 employees with the stock vesting? the date being next tuesday. >> yeah, i was surprised to see unanimity on the team this morning that you guys agreed that is the fairest thing to do.

andrew, i'll talk about anything with you i'm so delighted with the invitation i talk about it after chevron results. it has some concern of the reputation although there is some flam bo flamboyance there he has enough culture erosion right now. he doesn't need to throw more gas on the flames. >> the other big management ethics question that arose yesterday, i don't know if you were focused on with twitter, was he brought a whole series of employees, engineers from tesla, spacex and the boring company to speak with engineers at twitter to help him understand what is going on inside the company and

what needs engineering work. it is a very unusual situation tesla is a publicly traded company and he controls spacex and boring i haven't seen a situation where they lend other employees to help them. how should that work >> i think the idea of having a lunch and learn session where you stir up creative ideas by dramatic parallels is a fine idea to bring in these people as they are the calvary or the posse with the solutions and not understanding the different technologies, i'm sure you have a tremendous geniuses at spacex. each company has had their misses the boring company, the biggest triumph, they live up to their

names. the expectation is they have the tunnels from los angeles to vegas. >> speaking as a resource issue. if certain companies, you own one or own another i don't want to use the word self dealing there are people who look at when you use people in different places in this way, how investors should think about that or think about the elon musk empire as just one? >> investors got upset, of course, when solar city was failing and got jammed into tesla. y i don't think we have to worry about that here. the cross pollination of visits is a fine idea for expectations. whatever he is doing with leaf blowers or flame throwers is ridiculous if they have creative ideas, bring in anybody who has done something different for a visit. >> you and i are in quite

agreement. a one day or two day thing to get ideas. >> where are the autonomous -- >> if you use them more extensively, it gets difficult quickly. let's talk about meta. that was the original intent it has been a year sunshince it changed the name to meta it is bigger than tesla. four times the size of disney and 14 times the size of gm. what do you make of this we were talking about this idea of whether they should pre-announce before the earnings obviously mark zuckerberg controls the company completely. he is making investments in the metaverse that people are skeptical about. >> last night was the most

anticipated surprise we've had in business news we knew it was coming. we did not think it would be last night or this dramatic. we see something in common with the failed stocks that we have seen high flying companies that you were talking about earlier with myspace or yahoo! or webmd or netscape or napster the ceo being driven out he walked out because he knew it was coming this is back taking a look back at elon musk is doing to twitter. look at facebook and the talent and he lost the original crew as they moved to meta you saw the disdain of the founders of oculus these were harvested you talk about elon musk and they were one-way moves.

new businesses did not benefit from the facebook mothership you had a culture who was afraid to challenge him that is a problem with the emperors for life. everybody wants to be like xi jinping these days in technology >> you are on the board of facebook today if you were to object to the strategy, i don't know if you do or don't, but you see what is happening. what do you do should you maybe you should have a little more certainty in the metaverse? i'm sure that is his argument. >> i think so. take a look at some of the cynicism that you opened the show with about the falling performance of apple and amazon. there is something different there. look at amazon or apple tim cook and andy jassy. the board made sure they were not killed off by the founders

of steve jobs or jeff bezos. andy started in 1997 he created web services after he started there >> what cynicism it is still incredible growth. super high exexpectations. >> people are using it as a parallel of something happened though them and facebook there is something imploding at facebook you are right. there are late products that came out late in the quarter that have new pricing issues i don't want to take you into the weeds there. there are issues happening at those companies. i agree -- by the way, i own apple. i wish i had more. i don't have amazon. i would buy it after this show i think i have high hopes for

them i would not buy facebook right now. there is still a great deal more room to fall as we saw with myspace which dominated. it took over from friendster rupert murdock bought and sold it. >> both at 97 which is weird amazon or meta one share? two shares you have the choice for the same amount for $100, you get $3 back. >> i stick with apple and amazon joe, you are the only one who remembers napster with me. you could not buy it and i didn't buy it. >> i also liked justin timberlake more than the real napster guy. >> how do you remember that? justin timberlake bought

>> i told you i liked the other guy better than mark zuckerberg. this would not happen with jesse eisenberg was at the helm. >> he bought the remains of friendster zynga grew out of myspace sdpmyspace. >> thank you for the ethics history and history back we wish you luck with the interviews later today good luck. >> thanks. that's why i have the flags behind me. this was the shell that was blown up and targeted at volodymyr zelenskyy's family they painted up for me >> jeff, thank you when we come back, the treasury department says investors scrambling to buy i-bonds at the last minute may be out of luck if you tried to get in the web

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fsd pharma all right. you heard from chevron now exxonmobil out with numbers. it is a big beat adjusted profit of $4.45 a share. that beat the street of $3.79. this a weird revenue number. not many analysts put in numbers. earnings of $19.7 billion for the quarter. that did include net favorable items. $1 billion with canada and cap x. that brings the number for 2022 to date to $15.2 billion that's on track with the full year guidance of $24 billion the company says they achieved

the best ever refining in north america and highest globally since 2008 those calls for additional production they talked about record permean production of 500,000 barrels a day. they also are talking about raising the fourth quarter dividend to 91 cents a share increase of 3 cents a share. part of what they are doing in spending more on cap x and more on production and giving more back to the shareholders we will speak with darren woods at 7:30 a.m. eastern time. ceo of exxonmobil. in the meantime, let's talk about the executive edge this morning. the treasury department says the overwhelmed web site may not complete orders in time for investors to lock in the 9.6% return rate.

the deadline will not be ex ext extended extending the rate past november 1st when it falls to 3.6% would ha harm the system. >> they prefer not to pay that >> it would be an easier payout than fix this. they say they will fix this and ada d additional servers to it roll that back a little bit. what did i miss? treasury issued $1.595 billion in i-bonds more in the entire year of fiscal year 2021 you don't hear this from investors. this is also because inflation is high and it is a much better deal in a down market. >> my only problem is you can do it with all and add up interest. we still have to find other

thin things i was looking at exxon at the lows while you were talking. you could have bought it at 32 not very long ago. >> it is up 70% this year. by the way, the stock passed the all-time high in the last week exxon shares if you are watching that >> exxon was at $32 a share. coming up, we dig into some big movers after the break including apple and intel and pint pinterest. as we head to break, here say look at the s&p 500 winners and losers >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure est deal. nice, but i can't accept it.

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good morning welcome back to "squawk box" here on cnbc live at the nasdaq market site in times square. we have red on the screen. dow off 32

we will talk about that in a moment s&p off 21 points. joe. intel shares are higher after pat gelsinger was able to ring i said do not mess this up at 9:30. a lot of pressure. i think he was good at it. earnings of 59 cents a share beat 32 cents. revenue declined 15% year over year it did beat estimate guidance lower than expected intel will deliver $10 billion in cost production and efficiency improvements and cutting work force it hasn't provided details mobileye i like when people come. a big party. >> you like it >> i like it so do you. you knew what i was thinking

you knew better than i did i have the warm feeling. >> people are here coming up, amazon shares plunging we will show you what was in the quarterly report that is weighing on the stock. later, don't miss interview with gary gensler in the 8:00 hour

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what about technologists? 40,000 strong, baby. we'll be able to hit our projections both fiscal and astral. this company sounds great. what do you think, agnes? looks like it's unanimous.

we are watching shares of apple and amazon right now, apple beat earnings and estimates. amazon missing revenue and issues fourth quarter guidance joining us is gene munster and newly lead writer for markets live at the wall street journal as well as the cnbc contributor. good to see you both gene, i want to start with you high flying tech stocks that benefitted from the pandemic those are dissipating. i read apple is benefitting from pandemic related ffects. apple still has a tailwind does everyone else have a headwind >> that is a good take away. investors really are voting that

performance matters over potential. apple's potential is delivering. why the performance is delivering iphone 10% up year over year is that because of the pandemic tailwind that is 47% comp there is something bigger going on than pan demodemic tailwind if you look at the time people hang on to the iphones it is stable over 3.5 years a few years before that, it had been getting extended out. that was negative for iphone growth the stabilization of the upgrades points to iphone becoming a necessity for those people that is what we are seeing in the results here i would point out, too, that iphone is the primary driver in the december quarter and apple, of course, doesn't give formal guidance if you read between the lines,

they maintain guidance to answer your question, this is more than the pandemic this is people further and further entrenched in apple products >> that's a big job. i don't know you have to be careful with your words now. they are very, very weighty. what do you think is happening >> so, i think there's just a lot more differentiation of tech stocks as you pointed out, this divergence in amazon and apple the faang stocks with the gains in the past decade people approached them like one block or one trade you can't do that anymore. people are saying, look, we are getting choosey about which tech stocks we are holding because they have the rapidly changing fortunes they are fnavigating the economy

you have to get choosey. >> do you think, gunjan, since tech, the potential of tech with the revenue growth and innovation always seems to leave the rest of the old economy in the dust, yet, the mosre sensitive to rates going up. if you look at these things now, they are a lot cheaper than they were and if you want to invest in the long term, will they be leaders again or is it why fight the fed? why fight the dividend yield stocks that may do better in an inflationary environment >> all you have to do is look at caterpillar come performance yesterday. a lot of people are looking at

meta and saying it may be down 70%, but this is not a good value. it is because of bond yields and what the fed is doing. some of the companies are having trouble navigating the economy they are dealing with rising dollar and dealing with rising interest rates inflation is pinching customers. at the same time investors have more choices to put their money. in two-year or ten-year treasury notes or i-bonds that changes the calculus. it leads to the continued divergence ahead of the opening bell with the dow out performing >> gene, have you been studying up on rustbelt assets? will you switch? >> i was going to make a big announcement no more big tech i'm doing hard steel from going forward. i want to give some perspective

on your question if i may. i think what we are seeing with the graph takvitation back. that is the mood of the market that is diis dictated over the five months. i believe the pendulum will shift back not because i spent my career in tech, but ult ultimately the companies will grow faster than the old line companies. i know it is not amazon lowers guidance stocks down, but i would point out a specific on that just to outline this idea about investors really want performance versus potential amazon effectively guided down 5% for december. the stock is down, i'll call it 15%. that, to me, is a disconnect that, to me, is showing a mood switch away from these companies. it will come back.

amazon's growth will stabilize no one can touch them with infrastructure i suspect a year from now or six months from now it will be a different picture from investors perspective. >> very good tell me we're done and finished. gene and gunjan, happy friday. have a great weekend weekend are still precious not enough of them >> right on. >> instead of the remote thing, let's do four days everybody for in that? >> four days >> never get to thestock exchange coming up, bitcoin which trades 24 hours a day through the weekend on a run this week pulling back this morning. we dig into crypto next. looking at it at $20,000 you get the best of "squawk box" on our daily podcast put it in your ears. "squawk pod" listen anytime. we're back after this.

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. welcome back to "squawk box. bitcoin prices shooting higher this week and pulling back this morning. global currencies remain volatile i want to bring in news editor in chief and ceo good morning to you. there's been this idea that maybe bitcoin has held up, and it has, slightly better than some other things in what has been a volatile period it's a short period, so i don't know how much i'm supposed to take away from that. what about you >> well, you know, it's 126 day and is counting. so, you know, let's give it three-plus months here for sure and what that indicates is that it is reflective of a really narrow range, as you've noted. it's between 18 and 25,000 so that is significant compared to how bitcoin has been playing

in terms of volatility narrative that we've seen in the past year as you know, over the past four months, we've seen rising inflation. we've seen incredible pressures on retail consumers both from an energy and household level and at the end of the day when people are pressured and seeing a macro environment in which their currency is being eroded, this is a diversification potentially play and this is newfound stability, if you will, could also mean that there is an opportunity here >> explain this one, though, to me 78% of wallets with bitcoin in them, bitcoin hasn't moved in, like, over 12 months or something, or maybe longer than that what does that suggest >> that's right. >> maybe that's just long term holders. is there something else going on >> you're absolutely right it suggests that, you know, the

misspelling -- but it is a vernacular in the industry you can realize your gains and losses you don't realize your losses until you sell and so while a lot of people might have been going in and potentially coming at the highs, they're not necessarily selling. so that's one thing. we are seeing that addresses, there have been stagnant activity which means that -- there is not a lot of activity there while new addresses are being formed so when you put all of those things together, it shows that, yes, this is still a very bearish market there are indicators as such the correlation between bitcoin, crypto against the macro -- >> i apologize for interrupting. what do you see the upside versus downside at this point for bitcoin?

what's the trading range look like to you? >> so i'm -- i'm not a trader. but here's the observations and here's what it means, okay so right now we're trading at a very narrow range which means if you take a look at the historic nature and characteristics of how crypto has been trading. we seem to be in a lull. there is a potential for explosive news yet here's why you have a macro environment that is very, very pressured you have the federal reserve and then also around the world, central banks trying to defend their currency, all under pressure when you take a look at 2023, beyond the midterm elections for the u.s., already looking at 20-plus legislations on crypto regulations and policy language and stablecoin regulations, potentially, you're also seeing that regulatory announcements and indicators from some significant players. the uk this week said that it

would include crypto as part of its financial services bill and that's very significant. you have singapore this week saying essentially it's going to take a look at the stablecoin market and looking at the language there and most significantly, i think, ahead of hong kong fintech week, along with singapore, is that hong kong and the securities and futures commission has indicated, once again, that there could be one country, two systems. there could be a divergence to china policy and perhaps welcome back some of those crypto businesses that have fled. >> we will see angie, thank you for joining us this morning appreciate it. >> absolutely. still to come this morning, two big ceo interviews that's straight ahead. first up, we have the ceo of

honeywell darius adamczyk. then we have ceo darren woods on the company's quarterly results. those numbers out just in the last half-hour some very strong production numbers. that stock exxon mobil, up by 1.8% by the way, year to dateit, 's up almost 79%. "squawk box" will be right back. >> announcer: squawk coin is sponsored by bitwise the world's leader in crypto index funds.

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good morning it's official. elon musk now in charge of twitter. the ceo and cfo are out. apple and amazon in focus as they reported results. plus, exxon mobil reporting earlier this morning we have an exclusive interview with darren woods. the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen u.s. equity futures are in the red. dow off 16 points. the nasdaq down 106 points

the s&p 500 looking to open down about 20 points. we'll show you treasury is roigt now when you look at the two-year note, you're looking at 4.008 on the ten-year -- the two-year down to 4.369 it's up this morning and take a look at oil right now, wti crude is 88.43. amazon shares are taking a big hit. this comes after the company gave a much weaker than expected current revenue forecast that reflects uncertainties about the holiday shopping season if you check it out right now, that stock is off by 12.5% and then there are apple shares which are actually higher, i think, at the last tick. up by about 0.8 of a percent apple's iphone sales were a

little below than what they were expecting. again, overall, some very strong numbers in that stock up by about a dollar exxon mobil shares are responding positively after the energy giant reported better than expected quarterly result and is there were high expectations exxon did benefit from higher natural gas prices all of that helped offset a drop in crude oil prices during the quarter. crude was down 25% for the quarter. very strong year over year and the company also talking about additional production, that it was able to do we'll be talking about all of that with the chairman and ceo darren woods in just a few minutes. chevron shares after rising after they reported a better than expected quarter. chevron mentioning cost controls chevron shares could open at a record high if these levels carry over into regular trading

right now, up the 180.99. and elon musk has taken over at twitter yes, this is him from a few days ago, carrying the kitchen sink into twitter headquarters, perhaps signaling a wide variety of changes for the social media platform musk first announced he wanted to buy twitter back in april, and then he tried to back out of the deal the two sides had until today to work out an agreement or that case would have gone to trial. >> i'm glad they're producing more >> they're producing more -- >> what do you make of the saudi energy minister? they don't like us, i know that. and they're mad about whatever but saying, you know -- using -- is it as simple as using the spr thwarts or offsets what they're trying to do -- >> it's far more complicated. >> but they're -- >> i agree

if we ever really need it. this is not what we're supposed to be using it for. >> that doesn't explain the -- the amount of -- >> yeah. but it was a weird -- and he didn't single out the united states he talked about all countries using their stockpiles to lower prices near term. >> let's see what happens in the beginning of december. then we'll know which side the saudis are really on or not. >> when the russian embargo -- >> when the russian embargo comes through, we will find out if the saudis are in it for themselves and don't -- and don't raise, then you'll know, you'll know -- >> it's not just themselves. they have a country -- they've got their own concerns with how -- >> what are they capturing in terms of profits >> they're doing okay. they need -- they've made a lot of promises to the people. what -- besides that, do they have a -- seen a movie lately from saudi arabia? do they have anything else going

on from -- except for -- >> there's far more issues than just the price of oil that are involved here. they also will point to central banks raising interest rates and their currency getting crushed there's a lot of different -- >> and what's -- they're kind of -- they say they aren't, i guess. >> they are, it's opec plus. >> and that's why we're -- that's why europe is headed in the -- theoretically a sharp slowdown back to twitter. china reacting to the takeover joining us to talk about the potential impact of president xi's messaging about china to the world is eunice yoon >> reporter: like over there in the u.s., musk's takeover of twitter is a top-trending topic in china the general feeling online is that under a musk management, the discourse under fwtwitter is

going to become much more like twitter here, much more pro-beijing. because musk and tesla are dependent on the chinese market, that could influence how musk manages the content on the site. last year, china accounted for a quarter of tesla's revenue and since china, which is the world's largest car market, will continue to dominate the ev space, a lot of analysts believe that tesla won't even be able to meet its global sales target without china. as we know, musk has been forging close relationships with chinese authorities and the authorities have been so forth of musk's investment as an example, in an interview with the "financial times," musk suggested that taiwan should be a special administrative region of china and that triggered

praise from the china ambassador in dc. that ambassador has been elevated to be among the top trusted cad cadre of president xi there are many people here who believe that twitter under musk's management might not stop some of what they see as misinformation campaigns by beijing. joe? >> yeah, i hadn't even considered china's perspective on what this -- what this will mean they watch everything we do. i'm sure they're going to be watching what comes out of twitter, eunice. >> reporter: that's right. again, the fear is that chinese officials and the government, especially under xi jingping is going to exploit and lemplverage off of that relationship and influence over musk.

>> thanks, eunice. coming up, honeywell's chairman and ceo is going to join us and talk about the latest quarter and some of the issues he sees facing the economy. he joins us right after the break. at 7:30 this morning, we have a "squawk box" exclusive darren woods will be with us before we head to a break, let's get a check on the markets "squawk" coming right back >> announcer: this is cnbc program is sponsored by baird. visit bairddifference.com.

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honeywell shares riding a five-day winning streak after the company reported better than expected quarterly numbers joining us right now is honeywell ceo darius adamczyk. it's really good to see you here we've been talking about how there is this revenge of the industrials. technology shares taking it on the chin not able to live up to expectations on the street but the industrials have been powering ahead and you're a perfect example of that. you said that this is a difficult and uncertain economic time, but you have a great backlog at historic levels and that just tells you demand is here >> yeah, nice to be back on the show, becky. yes, it's -- we're very

fortunate we have a portfolio that's very well positioned for the future our two biggest businesses are aerospace and i think that's continued to be strong across all three elements aerospace being air transport, business aviation. we see upticks in booking rates in all three of those segments our second biggest business is really all about energy. when we talk about energy, not just hydrocarbons, but it's also sustainable and renewable energy sources. we're kind of playing on both ends of the barbell while we're supporting the old energy structure, but we're helping the companies make the transition. so i think '23 will be a tougher economic environment there's no doubt about that in my mind. but the good news for honeywell is that we're in segments and positions where i think we're going to do quite well in '23.

i do expect some softness at spots for sure. >> where do you see softness where do you expect it >> well, obviously, europe is an area of concern that we've been watching i mean, it's -- it's a market that's been a bit tougher for us obviously, warehouse automation, i've talked a lot about that is a bit softer it's -- a lot of it is aligned to how the retailers are doing some of the retailers have had a bit of a tougher time this year than they did in '20 and '21 the consumer is acting differently. the consumer was buying things during the pandemic. they bought physical items now they're spending their money differently. they're spending their money on experiences which means, you know, air travel is doing well, hospitality is doing well. all those segments how the consumer spends their money is different and frankly, for us, given how we're positioned, probably more

advantageous than it was during the pandemic. >> building technology sales up 19% during the quarter what does that entail? what's happening there what do you see in the future? >> what that is, building technologies is a building controls company, building automation and many of the products we have a connected buildings offering as well as healthy buildings offering sustainability in buildings and energy savings in buildings has been a tremendous growth factor for us think about that as kind of a half a billion run rate now per quarter type of business that was a positive thing that happened off the pandemic. frankly, we were very quick to produce and introduce new innovation something that building owners, operators cared about, healthy buildings, clean air, energy savings and that's driving our progress and our building technology segment i think that's going to continue

to enjoy some tailwinds for numerous years to come. >> darius, you raised your own guidance that you had given for the full year, but if you look at it, it was really a reflection of the numbers that you beat by in the third quarter. for the fourth quarter, it means you're going to come in with what the street's anticipating for the full year. i guess that is no small feat when you're talking about such a crazy economic environment and uncertainty about the future are you being cautious in any way? are there some places where you see softness and are you conservative as a result >> well, you know, we tried to be balanced in our outlook one of the things that probably goes unsaid, you look at our original outlook for the year that we laid out in late january or early february. one of the things we didn't anticipate is $1.1 billion in headwinds just between fx and russia alone just those two items cost us

close to 30 cents in eps what we're projecting is that the very upper end of our original, our original range for the guidance i think the way i look at it, we're actually substantially above our original guidance range. our q-4 was a bit high we've kind of -- we feel good about it it's a balanced here on q-4. but i think that the -- the team and our future -- across honeywell have done a tremendous job in overcoming all the headwinds that we've seen this year and to deliver near the upper end of your guidance i think is a real accomplishment and i'm proud of the team. >> how did they do it? was this just cuts in other areas to try and make sure the margins were preserved was there -- were there stronger sales? >> yeah, i mean, commercial excellence, positioning

innovation that matters, driving in areas that are still active the north america side of the business was terrific for us we were hurt a little bit in q-3 by some of the lockdowns in china, particularly in the area of aviation. so the team has been very agile, driving commercial excellence, bringing innovation in areas that customers still care about, and that's what honeywell has been about they're a company of innovation. they try to stay one step ahead. it's produced -- and operationally, we're really on the tips of our toes in terms of trying to manage the very, very difficult supply chain environment that we've seen. >> so january when you laid out your guidance last year, that's two months away. you're getting close and there are even more uncertainties this time around. what are you thinking in terms

of how you plan for next year? where do you put forex, where do you put issues like central banks and rising interest rates? how do you figure all of that out to come up with the best possible planning you can and best guidance you can for the full year? >> well, as you correctly point out, it's a very dynamic environment and i'm going to dial that in but i'm optimistic i'm optimistic about our aerospace business i'm optimistic about our performance materials business which is energy driven those two segments are going to do well. we're sitting on record backlogs we can do go to our building technologies should grow, certainly not at the levels growing in 2020 this year. but we still expect moderate growth sps business which contains warehouse automation, that will be down. i mean, we've grown the business around 50% the last couple of

years and frankly some of the capacity in the marketplace has to get absorbed. i'm cautiously optimistic about 2023 but there's certainly going to be soft spots. frankly, we've taken actions to prepare some of our businesses for a potential economic downturn so i -- i don't think '23 is going to be a disaster, although i don't think it's going to be as robust as '22 is. >> what type of measures are you taking to prepare for that downturn. >> from a cost side, making sure that we're right sizing the business, taking a look at our indirect spend, making certain that we have our volumes, we have our indirect investments. that's something that's been part of the honeywell playbook for a long time and we like to act way before we even see some of the markets actually turn so we've been in that kind of a mode nothing dramatic nothing draconian. >> when you say right-sizing

businesses, does that mean layoffs? we've been hearing about layoffs, especially when you talk about technology companies. >> we have not had dramatic layoffs. the one exception has been in our warehouse automation business that has experienced some downturns we've seen that and known that but it's been very surgical rather than consistent throughout the business. for the most part, pressure in a hiring mode, particularly in aerospace where, you know, we're hiring aggressively. >> the reason i ask is just, you know, this potential pivot point for the fed, are they going to continue to raise rates. do they need to cut inflation. how strong is the jobs market at this point we've got the government numbers, but i think you have a pretty good idea, just from all the things that you see. >> i think in general, i'm supportive of what the fed is doing. it's going to create pain point for us certainly in spots. but we have to get inflation

under control. and until we do, the fed should continue to raise rates. and i -- as much as it may be painful in spots for honeywell and other businesses, it's a must-do type of an item. it isn't going to be pleasant. but we have -- without getting inflation under control, we could be moving into an even worse economic situation in '23 and beyond >> darius adamczyk, thanks a lot for joining us this morning. >> thank you, becky. where you can get the best return on your cash. personal finance correspondent sharon epperson will bring us some items and exxon mobil chairman and ceo darren woods will be joining us for an exclusive interview "squawk box" will be right back. >> announcer: time now for today's aflac trivia question. what state haves the highest gdp per capita and the lowest?

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the answer, new york with $76,000. the lowest is mississippi with $35,000. welcome back to "squawk. with near record high inflation and rising interest rates, where will you get the best return on your cash? one of the best places to put your short-term savings. sharon epperson joins us now with some options. good morning >> good morning, andrew. there are some attractive opportunities for your emergency and short-term savings right now. the national average rate on a savings account is just over 0.2 of 1%, but the average weight on a top high-yielding savings account is 2.34% that's account to deposit accounts.com and some rates at online banks are as much as 3% in a one-year cd, the national average is only about 1% rates on top earning one-year

cds average 3.65%. for savings you're not going to need for a year or more, the 9.62 rate on an i bond is hard to beat, but you might not be able to get them right now as you heard earlier, the treasury department said it may not be able to process the unprecedented demand for i bonds in time to lock in the rate by october 31st a new rate which is going to be 6.5% will go into effect on tuesday for the next six months. still, that's a far better return than you'll get on online savings accounts or cds right now if you can actually buy the i bonds. to learn more about ways to maximum your finances, join me next tuesday for cnbc, your money, and here from top financial experts. you can register at cnbcevents.com/yourmoney. >> even if the rate for i bonds

falls, is that still the best play for your money? >> you can't cash them in for 12 months if you cash in the i-bond in less than five years, you can -- you lose the last three months of interest. you really need to think about this money that you're trying to cash in because if you try to do it after 18 months, you're only going to get the first 15 months of interest and that's why most financial analysts and advisers say it's not a good option for your energy fund, for your liquid savings you might need right now. for that short-term saving for a goal that's five years or more away, that's the place for your money. >> sharon epperson, thank you. still to come, exxon mobil reporting this morning we're going to dig through the quarter with darren woods and then we're going to hear fm ry gensler visibly diminish wrinkled skin in just two days.

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welcome back, everybody. exxon mobil shares responding positively after the energy giant reported better than expected quarterly earnings. exon benefitting from cost controls and record refining volumes. all of that helped offset a drop in crude oil prices during the

quarter. but that did not stop big numbers here joining us right now on a "squawk" exclusive is exxon's chairman and ceo, darren woods let's talk about these numbers these are some really big numbers. earnings, $19.7 billion, cash flow from operating activities, $24.4 billion, anybody who was looking at wti down by 25% over the quarter may not have anticipated these numbers. your stock is up 2% this morning. what happened? >> well, i think the big story for this quarter, becky, is volumes. if you reflect back on the last five to six years when most in our industry were stepping back, our company was leaning in, investing at a rate much higher than our competitors and anticipation of what was to come and as a result of that, when the call came, we were here, answered it, we had the volumes. we have grown our production if you look at from 2017 to where we expect to finish the year, we're going to be three

times what we were the rest of the industry has grown 70%. we hit record levels in the permia we're also investing in the downstream to make more products we have a very large expansion in our beaumont refinery 250,000 barrels of additional capacity that's the biggest expansion in the u.s. over the last decade. so we anticipated the need for the products and basically invested ahead of all that so that when it was needed, we were there to supply it >> do you think those numbers -- because, again, those are big numbers too, the amount of increased production -- do you think that's enough to offset critics, particularly the biden administration i think it was just this week, president biden said that his message to the american energy companies s you should not be using your profits to buy back

stocks or for dividends. when you show them numbers like this, are they satisfied >> we don't look to satisfy one administration or the other, we're making sure we're doing the best we can. finding projects that allow us to grow production and value we're also looking at reducing our emissions. we announced in this quarter the largest of its kind carbon capturing storage partnership with cf industries where we will transport and permanently store co2. that's a project that makes us money while reducing emissions it's good for the planet it's good for our shareholders. >> when you're looking at these numbers, i mean, you pointed out that you all were investing. that was your plan to invest over the last couple of years, even when energy prices were much lower you feel some vindication at this point, your stock just reached an all-time high last week if these levels hold, it's going

to open at even a higher level this morning is this vindication of what you've been doing, darren? >> we've talked about this over the years. we stay very focused on the long-term fundamentals, try to understand where the economies are going, what's the need going to be for the products that we produce and in anticipation of that, try to invest in projects that give us an advantage. and so i just say it's a vindication of this longer-term philosophy, focusing on the fundamentals, trying to address what i would say is a wide gamut of needs from society, something that has to do with energy and products that reduce we can do both this is an and equation, not either/or. >> if you focus on long-term fundamentals are you different than the rest of the industry, in that we're still in this country below levels that we were putting out in 2019 so someone wasn't focusing on long-term fundamentals or

misinterpreted whether we were going to be needing hydrocarbons until the middle of this industry in all likelihood the world has a problem and i wouldn't blame it on the oil companies because you do what you got to do based on these other factors. you say you don't care about administrations, you have to be watching what they're saying they're going to do otherwise you wouldn't be satisfying shareholders it's difficult to navigate. >> i think you know, joe, it's -- in this environment, there's a lot of short-termism to move with the current narratives it's not an easy thing to do and when you do move against the narrative and invest counter s cyclically, we took a lot of criticism for that it's not an easy thing to do it's not that we don't care about the administration i didn't mean to imply that, it's simply that we don't cater

to any specific political agenda and look for longer-term fundamentals and we work with the administration to try to help make sure they understand the fundamentals and we recognize the political dynamics and try to help them address those without compromising what we believe are the long term the right answers. >> darren, two questions, there is an antiesg movement taking place in some parts of the united states and maybe even around the world we have a guest on, we've had him on a couple times now, who started a fund that is very explicitly trying to invest in fossil fuels and very explicitly trying to invest against clean tech what do you make of that effort? >> well, i think, you know, we've gotten into this dynamic of where people are choosing sides. it's either right or left, right or wrong and i continue to believe that, you know, again this is an and

equation we can do both we can grow production and affordably meet the energy needs of people around the world we're doing that we're growing our production while reducing emissions i mentioned the cf industries, a deal that we recently did. that's a profitable project that's very attractive in our portfolio. it makes us money. at the same time, it reduces emissions. good for the shareholders, good for the planet so i think, you know, the trick here is to leverage your core competencies, your competitive advantages and bring those to bear to help solve the world's problems to end the challenges of the world and we're trying to do that. and i think the capabilities that we've built over the decades position us very well to do that. >> and separately, i was hoping you would weigh in about saudi because we've been having a debate around this table and i think it's been a debate around the country and the world for the past couple of weeks now, this report out from the "new york times" that there was a

dealeffectively made by the biden administration with the saudis on production for him to go over there and have that meeting with mbs and they've gone back on that. is saudi our friend or not >> well, i think if you step back and look at some of the stated policies of the biden administration where they have a longer-term objective to put the oil and gas business in the u.s., to shut that down, that hands pricing power to opec. and i guess we shouldn't be surprised when opec leverages and uses that pricing power. so i think what we ought to be focused on is not the political equation but the long-term fundamentals this is a national security problem. this is an economic problem and ensuring that we have affordable and reliable energy here in the u.s. is -- i think a very high priority that the administration ought to focus on. >> darren, we hear about windfall profits being threatened in europe and here by some congressional leaders too

what would you say back to an administration -- or not to the administration, what would you say back to any politician who is talking about windfall profits tax for times when oil prices are high? >> listen, i certainly understand why in the short term there's a strong desire to do something. there are people all around the world who are feeling the pain associated with very tight energy markets and the prices associated with that that has a direct impact on their standards of living, no doubt about that we have always recognized that it's been one of the -- one of your primary drivers for thinking long term and working to make sure that we can continue to provide that supply. but i would tell you there's only one way to solve this -- two bays to solve the problems, one is increase supply, the other is to reduce demand. high prices tend to do both in terms of bringing additional production on and reducing consumption where you can afford to do that the policies that are being considered work against both of those things

disincentivizing investment. this business is cyclical. we have our ups and downs. you live through the downs and take advantage of the ups. over time, you generate a reasonable return that justifies the capital. when you cap the high sides and the business goes through the lows without the compensating highs, you lower the overall returns and investments drop out. we demonstrated that back in the 1980s in the u.s. when they put on a windfall production tax production went down we became less secure in our energy supplies. i think politicians ought to step back and take a much longer term view of this and understand the significant downside consequences of some of these policies they're considering >> i mean, let's talk about the spr, then, darren. you just said that higher prices not only spur more investment and more production, but also weaken demand and the fed is trying to weaken demand right now because of inflation so i mean it's supposed to be used for an energy

i don't know what an energy is do you think higher prices at the pump may be going into a midterm election, is that qualify as a -- as an emergency for you? do you think this is something we should be doing right now >> i think the environment that we're experiencing now, joe, the seeds of that were planted many, many years ago and, unfortunately, the action needed -- while you can take action today to try to -- in the short-termite gait some of that, the longer term response has to be investment to increase the supply and i would just say -- i won't get into the political dynamics of what's happening and the motivation there, but i would say ultimately we've got to increase supply if we're going to continue to meet the demands of a growing economy -- >> you're not willing to say it's misguided and a mistake and could come back to haunt us? >> i think having a reserve, particularly in a volatile world that we're in today, is

important. that strategic petroleum reserve was established for that reason. that's one that we should make sure that we maintain the integrity of that backstop for the u.s. >> darren, let's talk about capex, 5 billion in the quarter. 15 billion year to sdate so far. these are growing numbers. it doesn't match up to the highs that we had seen in the prepandemic. i think capex in 2019 was at a high of $31 billion. you're on track for 21 to 24 billion this year. will those numbers increase next year >> so i think, becky, go back in time when we were spending high, we were investing counter cyclically when you're in the lows, that's the time to make investments as you move into the highs, which we're in today, that's when you focus on the coming low and make sure that you're well positioned for that and not investing in giving returns to others in the supply chain and to tight labor markets and to

tight contractor markets and so we are trying to maintain a level of that. the programs that we have laid out, the projects that we're pursuing are ones that have been in our pipeline of investment portfolio for years now. and so we're continuing to execute the plans that we've had and making sure that we're doing that in a very capital efficient way. >> that makes sense. >> also investing the dividend by three cents to 91 cents i guess that's the give back to shareholders. >> we have strong commitment to our shareholders and maintain that dividend. you'll recall when we went through the pandemic and we lost over $20 billion, we were one of the few that did not cut our dividend we hung onto that dividend and it has been one of the pillars of our capital allocation priorities first and foremost, find advantage projects and invest in those. make sure we've got a strong balance sheet to help us weather the down cycles and then make sure that our shareholders enjoy

their returns that are efforts produce and we're doing that this year through both the dividends and buybacks by the end of this year, we anticipate having about $15 billion of dividend spend and about $15 billion of buyback. so we think a fairly balanced approach to returning cash to our shareholders and having them enjoy the success of this company as well. >> finally, the carbon see quest station business, you had an announcement with cf industries where this is business that is really paying you to do some of these things what happens next? >> i think that deal in my mind is extremely encouraging one, it validates the business model that we've put in place. that there is a profit opportunity to leverage the capabilities that we have in the company to help society reduce its emissions. i think it also demonstrates that those advantages are going to be needed if we're going to be successful as a world -- a society to reduce those emissions. we're growing a brand-new

industry here which is extremely complicated. you got to have the technology to capture the co2, transport, technology to store it and store it permanently all the sectors required to bring those together, multivariable, multiparty negotiations you need scale to do that. all those strengths play directly into our wheelhouse and give us a big advantage. what we're seeing with the cf industries deal isthose pieces coming together to have a very attractive opportunity and we think a lot more of that to come >> darren, i want to thank you for your time today. darren woods the chairman and ceo of exxon mobil. >> thank you. we're going to look through apple's results. tired digging through so many. quarter for every time we say dig. apple results and talk about the company's outlook. at the top of the hour, gary gensler. if you missed any of our amazing interviews, check out our daily

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take a look at futures actually, we turned a little bit around on the dow. up by 15 points. the s&p 500 off about 13 1/2 points we have also been watching the faang stocks this morning. let's show you where we are.

we're going to talk apple in just a bit but right now you're looking at meta, it's at 98.88 after what was a tortured, tortured day -- or tortured two days amazon off 12% this morning. apple up, netflix up and alphabet off just marginal we're back after this with a little more on apple what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

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what a week it has been for tech stocks, think about meta yesterday, earlier in the week remember microsoft, alphabet, apple is called higher after repo reporting results. some of the numbers look good just if you don't look into them but i found i guess a little less for revenue services, is that quibbling, should we be pointing to those things the stock is called higher >> no, i don't think it's quibbling on balance apple grew reported revenue 8%, at currency they grew 14%, this was a portfolio in a quarter that did very well, really the question is all about expectations going forward and how strong the

iphone 14 cycle might be >> what's the difference between apple and the other companies that we mentioned and some it's been pointed out that pandemic tailwinds for some of the other companies are no longer there and then it was pointed out that apple still has some tailwinds is a longer product cycle should it be viewed differently from companies that had very disappointed numbers, why is apple still benefiting from pandemic-related effects >> sure, a couple of things, the first thing is that apple has a whole slew of new products with the new iphone, new watch and so they're continuing to see strength this quarter, again i think the operative question is, apple's most strong buyers, loyalists always buy their new products the question is, do you extend beyond those loyalists in

the fourth quarter, i think the second difference is, apple is not trying to pivot its business like a meta. so expense management and margins are really strong, some issues we've seen with other companies have not only been top-line issues but expense. >> if the world slows down, and if we hear -- in europe going to be tough people think to avoid recession, what would that do to apple's results and to its stock price if over the next six months we see much slower global growth >> it will be difficult for apple not to be impacted so if you have a fundamentally weaker economic backdrop apple would certainly feel that and look i think it's important to

note that apple didn't really give guidance for the december quarter, they simply said we'll grow less 8 .than we grew this quarter, my sense is it's unclear they think that can grow, if we literally think through their guidance for december and we adjust for the extra week, apple is simply saying revenues are going to be down next quarter, so with all things being equaled it's seeing incremental tailwinds looking forward. >> tim cook says hiring will slow, that sounds like a second derivative, doesn't sound like people will lose their jobs. a year from now will it be down and apple be either stable or higher, their number of hires? >> it will continue to increase,

we're modeling apple's revenues to decline reported by 2% this coming year, i do think a lot of that is kick call, tough comparisons, i think they did benefit from covid, i think great companies continue to invest during downturns, there's a question of the real magnitude, clearly the issue with meta earlier this week, but, you know, if you had a couple of great years and the economy is slower you can't turn the switch off, apple is building products for the next five, seven years, you don't want to be detracting from those investment programs. i'd be very surprise if head count is down at any of the major tech companies including apple over the next year >> if there's a bronze statue, i guess steve jobs would be there.

tim cook ready to be right next to steve jobs in bronze some day would you do that at this point, tony, with what we're seeing. >> if it warrants a statue it's more difficult to call >> i think he can maybe jobs was first, maybe a little bi further -- >> that was his innovation. >> i'm ready to bronze -- not going to bronze him, make a bronze statue. tony, thank you. what do you think? >> i'd give him a statue or some sort >> elon. >> i would have given elon a statue a long time ago >> are you crazy. >> steve and elon it's obvious >> they're going to cut you off.

>> different categories. s.e.c. chair gary gensler is going to join us to talk about everything from elon musk and twi twitter. without a big price tag. bibi digs the power of the apple m1 chip. mac is easy to manage, compatible with all our apps and came preconfigured by cdw. now we're even getting compliments. that was bill again, says he loves his new mac. he's right about the coffee.

good morning a new era at twitter it's called the elon musk era, the world's richest man completing his takeover of the social media network, the latest, talk about state of free speech online and

so much more, what's the future of twitter now meantime oil earnings are coming in, new reports from chevron, we've got the numbers and the highlights and if you're a ceo and your company makes a mistake on your financials, buckle up, the s.e.c. has a new way to make you pay final hour of squawk box begins right now. good morning and welcome back to squawk box, happy friday on cnbc. >> happy friday. happy friday >> i'm like happy friday

>> a long night. >> not a long night, i never have long nights i can't. that's fine. there's nothing that happens after 8:30 i'm going to watch late night? treasury yields, let's take a quick look right now -- what's wrong? there are some great late-night -- treasury yields right now indicated at -- >> fallon, seth myers. >> receive proclimaimed chief tt elon musk now in charge of twitter, they let that sink in, the tesla ceo completed the $44 billion deal for the social media network that began back in spring sources say the ceo and the cfo have left the company, bloomberg said musk intends to

take the ceo late last night elon muchk tweeting the bird is freed he's expected to address twitter staff today. and today's msci and s&p 500 removal won't officially happen until tuesday. >> we were talking off camera how mark tweeted a picture of fried chicken and saying the bird is fried. the co-ceo brent taylor chairman of twitter, probably should get a medal by the way given the price they were up to get this company. other people have different views whether the deal should have happened or not

>> few have noticed the left now hates elon musk. you have noted that. >> i think that -- >> i look at things very simple. because i'm stupid people tell me keep it simple stupid >> it has to do with the fact that elon musk ran taylor and this board through the wringer over the past few months >> you have noticed a change in the left's love of elon. >> oh, there's no question >> all right, as long as -- this is right here. in front of your face. >> the irony of this was that the second he bought twitter all of a sudden the left freaked out, i want out of twitter, they

should you buy it. >> first it was a flame-thrower, to be fair that's when he lost you. it's gone downhill from there. >> it's not about me >> it's always about you for me. >> he hasn't lost me on that. >> at the end of the year i want to cut that, "i'm sftupid. >> i'm fine with that. keep it simple for me. i did join microsoft teams yesterday. >> i would argue he might have gained you for the first time. >> no, it's been a while >> another bit of news on twitter, bloomberg reporting that cryptocurrency financed some of the deal the company aims to play a role in order to broader the use of

the technology binance tweeted this picture shook the ceo musk peeking out through an outline of twitter. the antidefamation league's jeremy greenblatt and rich lowry. two different sides. we also have big news from two oil giants this morning out with their earnings, exxon mobil, the company reporti ing record earnings. here's darren woods who joined a short time ago on "squawk. >> if you reflect back on the last five, six years when most

in our industry were stepping back our company was leaning in, we anticipated the need for the products and basically invested ahead of all of that so when it was needed we were there to supply it. >> shares of exxon mobil are higher right now, 109 is the last trade 109.58 was the all-time high it set on october 21st last year, told indicated up another 2% chevron also higher for the third quarter. very strong for the company's second best earnings on record and that stock up by 2% as well. let's get back to the broader markets with under 90 minutes until the friday morning opening bell on wall street,

santoli, where have you been >> i've been around. it's been a couple of days, right the story, joe, has been consistent in terms of the market has been trying to absorb these tremendous blowups from megacap earnings, take a look at the s&p 500 index fund here, you're still kind of feeding off that october reversal higher, overall earnings are coming in about 70-plus companies beating lower expectations so even though you've had the huge declines in things like meta not even in the top 25, one thing you might want to keep in mind this is barely above the downturn line. we'll have to see if it can still kind of stay with this cushion above the recent lose that we had, pretty strong

seasonal period. now here's a look at the megacap growth etf dominated by the big five of the nasdaq, faang. the average s&p 500 stock one of them equally, that's very big spread, more than 16 percentage point outperformance by the equal weighted s&p the big five of nasdaq, they were about 23% at the peak of the s&p 500, clearly it's the leaders are losing to the field, however, the same chart over three years shows you the megacap group still has an advantage over this span going back to before the pandemic, just a massive stability and predictability in those stocks, the results aren't saying it redeems that faith that investors have, it seems like it's getting late in this

process or this process is pretty far along in terms of people flattening out. doesn't mean they're about to turn around, it's become a lot more balanced market even though across the board we're sitting on losses year to date, joe. >> mike, what do you think is taking the baton for what the market is keying off at this point? the ten-year has been interesting to watch, some of the macro numbers, we did not have a third quarter of negative growth, but everyone said this is going to be the week we're going to get tech earnings and that's going to call the shots, the markets have held up really well tech absolutely falling out of bed for the most part >> it's been a process that's been under way all year i think it's obviously all of those things, everything all the time that matters in different

proportions, the idea that you've had some relief on the yield side on the idea that fed aggressiveness is not open-ended, that seems to have taken hold, at the same time the u.s. economy is not really playing along with the recession playbook at least in real time >> tony, everything matters, yesterday, one of the websites said, okay, there it is, the market has moved after someone they might not use a nuclear bomb it's come to that. that can actually be a positive, we never thought we'd see those words. market rallies after a nuclear holocaust might be less likely thanks, mike all right, when we come back, elon musk now owns twitter, what that means for social media as a business and as a platform for speech, but next s.e.c. chair gary gensler

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on your wireless bill over t-mobile, verizon, and at&t. talk to our switch squad at your local xfinity store today. welcome back the s.e.c. finishing some long language work, voting yes to

clawback executive incentive-based pay. two republican commissioners voting against the measures. our next guest voted for them. gary gensler, great to see you this morning let's walk through this new rule and what you're hoping it will achieve. >> well, as you said, andrew, it's a congressional mandate so first we at the s.e.c. like to follow what congress mandates us to do, a simple idea, executives current and former executives should not keep compensation that's based onn errors in their financials, a simple concept, if there is material misstatement in the accounting numbers, the money goes back to the company >> right

how do you balance this idea against the idea that companies, and we've talked about this for more of a decade now, a lot of companies don't want to go pub public >> look, when you reach out to the public market you get greater liquidity, greater depth in the markets, those are independent decisions, we have vibrant private capital markets and i think both benefit our economic system, as we've seen, but this was straight forward thing that congress was that if you've got the wrong faulty financials and somebody's getting paid on those faulty financials then they ought not to keep the money i think it's pretty straightforward and i think your viewers understand that. >> let me ask you separately, we've had a lot of tech companies come in with earnings reports recently a number in

which we've seen the stock drop, some calls by investors there should be more re-announcing when do you think a company should pre-announce? >> our framework is that you make full, fair and truthful disclosures to your investors not only in your annual and quarterly reports, there are certain updates in current reporting and particularly if you tell anybody, if that senior management team tells anybody we have rules on the books for over 20 years about fair disclosure >> so when a company and i know you don't like to talk about individual stocks. >> you remember that, thank you. >> i know, i know. a meta which came out with its earnings boy did that stock drop

there were investors and others commentators and the like who said, look, this is a company they needed to tell the market in a different way that they did, not the kind of surprise that it was? >> you know, you raise a great point, 20 years ago we had a lot of challenges around accounting, around enron, and others, congress passed a law and in that said we the s.e.c. should update our rules, back then around this very issue around current eporting, and we did that, it lays out very detailed times when you have to put information out, but particularly, if you're sharing any material, nonpublic information with part of the market you got to share it with the whole market but there's also a key set of things you have to do and share with your shareholders on a current basis. >> again, i know you don't like

to talk about individual companies. elon musk in the news just taking twitter private, i got a couple calls yesterday, i'm a big fan of elon musk and everything he's trying to do, couple of calls from tesla investors, reports that he was bringing some engineers from tesla over to help him at twitter, and they said to me, well, is he using tesla resources for what is going to be his private company, without speaking to that issue, how do you think about folks have multiple interests at multiple companies. >> again, you're right i'm not going to talk about any specifics. full, fair and truthful disclosures and senior executives disclosed their other involvements and other potential

conflicts and then investors get to decide with regard to that investment decision. >> the s.e.c. inspector general's report that disclosed or revealed there have been a lot more departing senior staffers than what i think would be expected or considered normal historically, what's happening >> let me just say this if i can, our turnover, it's a really talented staff our turnover also reflects that it's a very talented staff, you talk about this on other parts of your show with tight labor markets there are also tight legal labor markets, our turnover did go up to approximately 6% which is the norm for the u.s. government across the u.s. government you're right that it was lower during my predecessor's time, not a tight labor for securities law talent. >> for those who have critiqued

this or speculated that you may be a tougher boss than others or something else, not true >> look, i think that it's a great privilege to serve the american public and we've got an agenda to help bring greater efficiency that means lower costs in our capital markets greater resiliency in our capital markets, this remarkable talented staff at the s.e.c. has many contributions but some of them 6% you said was the number of the turnover that's the average staff's stay. >> earlier this week, just yesterday the wall street journal had an op-ed an opinion piece suggesting that the fast rul rulemaking pace is potentially

damaging, a review of the leadership that was pretty difficult and pretty tough, it's overwhelming staff and taking resources from investor protection, what do you say to those charges? >> look, we've got 45, 4600 people at the agency, they're talented, they're dedicated, our rulemaking agenda is approximately the same size as james clayton, we have about 50, 55 on our agenda and i hit the's really important that we at the s.e.c. be a cop on the beat have a robust oversight and move forward to find places where we can make our capital markets work better for regular folks watching this show. >> they go on to say, though,

what happened under jay clayton most of those rules were focused on investors protections, others say -- >> we have a three -part missio, protection, the markets, efficiency orderly and fair markets in the middle, whether it's around equity market structure, treasury market structure or private funds, across the market this rule that andrew talked about clawbacks, eight of our parts of our regulatory agenda are still long ago mandated by congress, 12 years ago in that dodd-frank act, we had nine or ten of our agenda, congress mandating, but our agenda is about investor

protection and the other parts of our mission >> okay, gary, before i let you go, you read william cohen -- >> occasionally. he has a fascinating piece, a speculative piece. >> i don't know. i don't read him on a regular basis. >> well, he had a piece of who might take over from janet yellen, if she for some reason to step down -- >> andrew, i've got the job of the lifetime, i can't believe i've got this privilege to chair this great agency to serve my third president and try to make our capital markets just a bit better i mean, you can't maintain a gold standard without trying to lean in, yes, lean in a bit, and try to make the capital markets less costly, more resilient,

it's a job of a lifetime i'm in now, andrew, whether you're going to be considered by the white house, i'm happy for you >> i appreciate it, gary thanks so much for joining us this morning we'll see you soon when we come back, a lot more, it seems unlikely at times but now elon musk he's in charge at twitter, the bird is free what does that mean for speech, free speech and hate speech? we'll dig into that when we come right back on squawk and not appreciate when they do? [dog groans] so whatever is at work to pull all this off, it's working. as are those earrings. ♪ ♪ even work works! i just booked this parking spot... this desk... and this conference room! i am filing status reports on an app that i made! i'm not even a coder! and it works!... i like your bag! [people cheer at concert] real-time ticket upgrade!

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welcome back some of the last breaking news on what has been a very wild week, of course we're watching yields down on the week and employment cost index hitting the wire, hitting the number around 1.2%, spot on up 1.2% the high-water mark here in this series of data goes back to 1996 in march up 1.4, so we've eased back but not a whole lot, personal income expected to be

up 4% on the spending side, up six tenths that's a nice beat, the best look actually since june where it was doubled that. real spending we all know real is an important word these days, you have to adjust for inflation. that's also a tenth better than we were looking for and up.3% actually to find a higher number than that you have to go all the way back to january where it was.7% personal consumption expenditure on a month over month basis it's up three tenths of one percent that was in june of this year, so that's deftsly a nice one and

it sequentially follows up 6.2% is in the rearview mirror high-water mark was in june at 7% the highest not since '81 we've come down a bit. like yesterday's numbers, they've come down but they're not coming down to levels that are going to make the fed potentially feel they can take their foot off the brake, they've got both feet smashed on the brake. month over month, the number we were expecting to be up five tenths the high-water mark was six tenths going back to 2001 in april and june, april of last year, june of this year finally the year over year pce, 5.1 following 4.9 and 5.4 in

february was the high-water mark going back to 1983, pretty easy to summarize, many including large institutional fund managers think there's going to be a pivot and some change of language regarding the federal reserve, if they were truly data dependent inflation is fallen, the question is has it fallen fast enough and far enough two-year note, 4.35. back to you. >> for halloween nothing -- that sums it up, nothing real scary inflation wise, nothing incredibly treaty either, rick, but nothing really, really scary. yesterday, the dow a minute ago was up triple digits, definitely than it's been all morning

the nasdaq was down triple digits nothing to write home about cool inflation, no big surprises and as a result ten-year is below 4 again. >> you got to pay very close attention to credit, there are several good articles about credit, one this morning discussing how we're back to pre-covid levels we know that credit cards are being used more often and especially energy at the gas pumps these are issues we want to monitor, labor market being strong has pushed many of us off the scent off the true economy. i'm not a big yield curve value. >> okay, thanks, rick. moving on here, elon musk the new owner of twitter and the the old ceo is out taking control of his favorite

social media network the question is, what is he going to do with it? what kind of speech he'll allow? musk said in his words twitter ca can't become a free for all hellscape. jonathan greenblatt, and also rich lowry, editor in chief of the national review. i don't want to use too many cliches at this point, jonathan, one man's meat another man's poison, one man's hell is another man's heaven, i guess, what do we have right now in your view at twitter somewhere between heaven and hell like purgatory or something, what do we have right now.

>> look, i don't know about the theological you want to interpret this, joe, i'd tell you, despite my reservations i was cautiously optimistic that elon musk would be able to address twitter's deep and abiding problems and he takes the concerns of a civil society to hoet but the developments have been alarming at best including last night one of the first things he did he was fired the head of trust and safety at the platform, the person responsible for making sure you deal with conspiracies and misinformation, he welcomed kanye west back after a two-year absence after he made comments on instagram and we know he posted this meme of former president trump and ye as himself all owning you know platforms as if they were play things

i'll tell you right now, i was glad to see the tweet you just put up that twitter can't become a hellscape but given his recent behavior we need to see actions not words, elon remembers that conspiracies kill people yesterday was the fourth anniversary of the tree of life shooting, a man who was radicalized online, we've seen it in buffalo, el paso, charleston, we need to know as a civil society that elon musk is going to take the steps necessary to ensure that the platform is free from conspiracy theories >> rich, do you think at this point the first amendment needs like ten -- do we need quality, the ten commandments, for the first amendment constantly

changing and need ast risks all along the way. >> no. this is just to me the reaction to musk takeover is bizarre. taking over a social media platform, very important conversations going on social and political issues i want to have neutral free speech governing how this community works. oh, my god, how can you do that? twitter is a hellscape, will continue to be a hellscape that the rules have been determined by the left and with the left-wing bias, legitimate news stories have been suppressed on twitter, if you want to call a biological male he on twitter you can't tweet that, marjorie taylor greene, she was suspended in part because she said that the vaccines didn't prevent people from getting covid, which is true, she was permanently

suspended for it held hostage and elon musk is going to try to pry it loose >> jonathan, i was serious one man -- people are different, there's no objective truth, just for me and i love you, just for me, i wouldn't want you dictating what i see on twitter, i really wouldn't. >> look, joe, i love you, too, but i want to be clear that i think while there are steps that elon can take like open sourcing the algorithm i don't think that changes the fact, and i don't know what rich you're talking ability biological males, the reality is wild conspiracy theories and platforms awash with information are problematic for society, look, i don't think social media platforms should be

the play things of billionaires to begin with, i believe he has the right to buy twitter, there's nothing stopping that, but what's stopping is threats on the platform. defcon 3 on people, on cues, i don't think that belongs, that's not a free speech issue. >> rich. >> specific threats are one thing they don't belong on the platform let me given a example i think stacey abrams has spread provable conspiracy theories about the georgia election, they were laughed out of court because there's no ed of real voter suppression but i'd never think she should be kicked off twitter, she says things that are wrong, people like me rebut them and people can decide it, that's how a free country works and that's how twitter should

work. >> hey, rich, i love the idea of this being, you know, much more transparent and we can understand how it works and all of that and therefore maybe we'll be able to see what's really happening the question i have in instances where there's somebody may put out an initial tweet that doesn't cross the line but it instigates others to cross the line and how we're supposed to think about that the context of just taking down those specific tweets, put people in time-outs, should there be time-outs how do you think it should work then in. >> well, gray areas, but i think we'd all be better off if the rules were very specific and detailed, so they can't be vague like dehumanizing, that's where you get, you can't use the

pronoun he for someone you think is a he but wants present herself as a her, why does twitter have a rule about that, why are you suspending there's a big dispute about that in our society so there should be guardrails, there are going to be guardrails in a way that everyone can understand and abide by. instead it's a black box and unfair against the right but the hunter biden laptop story was a legitimate story and it was suppressed. they thought it must be russian disinformation >> i got to be honest rick, with all due respect, i don't know why i'm on with him i don't think this is politics, i think is about safety. i really do, i think people like

alex jones shouldn't be on because people end up getting hurt, that's what we're talking about here and putting up politics on here isn't helpful >> the hunter biden laptop, that harmed someone >> in all honesty -- in all honesty, what i'm worried about is another buffalo, i'm worried about another pittsburgh. >> twitter has gone way beyond that marjorie taylor greene says vaccines don't stop people from getting covid, she's correct, she's suspended that, that's a safety issue come on. >> where i have s-- it's happening again and again. what's so scary, you have

selective suppression of one side and not the other there's been so violence called for maxine waters, i can go on and on never have you brought that up can't you see how that might been issue. >> i don't if kanye is right or left >> okay. >> if you want to have a conversation -- look, the reality is, if you want to have a conversation about the real threats of these platforms -- >> just be fair and include both >> a separate question to rich, free market question, i think initially elon musk was i wouldn't say against advertising really thought he could turn into a subscription business, he seems to have embraced the idea of advertising on the platform, sent out a note talking about that to advertisers yesterday or

the day before, you know advertisers don't want to be advertising next to content that some people, forget the law, anyone might find quote, unquote objectionable that's driven some of the way twitter thinks about this, how do you think about that >> yeah, no doubt. that's one reason it might be easier to send a man to mars than making this a reliably profitable business. he didn't want to buy it when he had a cold look at it, but he was forced by the law >> jonathan, come on >> at the end of the day, i really would object the argument that denying people who want to kill others is somehow politics. >> no one is saying that

i never said that. do it fairly if you're going to have these rules dole them out fairly >> number one, manage the platform in a transparent way with clear guardrails, right, so people understand what's in bounds and out of bounds that's number one. number two, permit speech that's not protected by the constitution, threat, incitement to violence that should be go. number three, open to engaging with civil society to understand the concerns of all the different parties, conservative or liberal jewish groups or african american groups, listen to civil society leaders who are looking at these broad issues of public safety, if elon really wants to make this service warm and

welcoming, joe, it's not that hard one last thing hold on. >> we all agree on that, jonathan >> you know what, joe, people liken him to tony stark, life isn't a comic book, elon has to remember the peter parker, with great power comes great responsibility. >> i like both of those, you said a lot but i thought -- that was uncle ben. cliff robinson thank you both >> i want to mention because this just cross, it goes to the idea when people talking about stuff, how things can actually met stiez which is earlier this morning, this is coming from nancy pelosi's office, an assailant broke into their home.

mr. pelosi was taken to an hospital where he's receiving excellent medical care, the speaker was not in san francisco at the time. it goes to what's happening in america. the idea that we have people -- >> cause and effect. >> a specific tweet. we don't know if it's political or not the idea we're having these situations violent situations in america that seem politically motivated and some of that comes from what is happening in our culture. and what do you about that >> i don't use hellscape and i use cesspool, but i block people sometimes i mute people.

>> once again, people have different ideas about how to handle it, too, we need to air them all which we do. when we come back, jim cramer's first take as we get set for the final trading day of the week and another look at some of today's top earnings movers including the oil majors, ex exxonmobil and chevron stay tuned you're watching squawk box and this is cnbc ♪ ♪

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coming up on squawk in a moment jim cramer's first take on reiday morning, the market moves he we were up and down across the board. back after this. ♪ ♪ ♪ ♪

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welcome back to "squawk box. let's get to the stock change where our friend jim cramer joins us now you want to talk about amazon? twitter? >> i want to talk about pelosi i'm feeling it, too, andrew. i'm feeling it i'm not saying this is 32 -- i'm feeling it i feel like things have cascaded to a level where i didn't find it was that unusual to hear mr. pelosi was broken into and hurt which is terrible. it doesn't matter if i like him or not a discourse that has jumped. it is not just discourse anymore. you are right. >> jim, it is something i worry about. you know, we were talking during commercial break this has politically happened on both sides to some degree. i want to be fair in that regard

>> yeah, brett kavanaugh >> we're coming for you in the supreme court and someone outside his house. >> both sides. both sides it's true. i wanted to be more war of words. let's bring it back to war of words. >> civil society. >> andrew, i'm all set to talk about all sets of stocks you stopped me in my tracks. i feel it, too i don't want to feel it anymore. i want to go back to say the industrials are better than the tax. right now, that's overwhelming >> maybe they won't be by monday >> yeah, i know. >> industrials that's a good point. >> let me ask you something. industrials have been through worse. you know when it is time to cut and knows when it is time to add. people in silicon valley are learning the word fire has more

to do with what is going on. they have to fire. i think it is hard for them, andrew they don't know how to do it >> jim, we have to run i know we will see you in a minute apple and amazon you want to own them right now >> apple is good and amazon is over done on the down side. >> thanks, jim see you in a couple minutes. joining us right now to wrap up a big week for earnings and look ahead to what is coming next week is sherry paul at morgan stanley sherry, weigh in on the tech how long will it continue? >> thank you for having me i appreciate just a little bit of the earlier segment because we are in a moment where we are sort of in a relitigation of the definition of civility domestically and internationally. i mention that because it is weighing on the hearts and minds of investors

we want to separate that from the fundamentals of what good investment strategies look like. every market setback has a new opportunity to find great money outcomes in this market, we are presented with the opportunity we have not seen in decades to provide the stability of income to a client portfolio in an unstable world. >> and having said that, what are you telling investors right now? there is a lot of uncertainty from a lot of directions what is the right move >> the right move is to start to unpack the s&p 500 you mentioned industrials. take a look at the sectors on the equal weighted basis instead of the market cap weighted basis. step in the sectors to provide that leadership around dividends and increase shareholder value do that in a slowing growth economy because what we are doing is flipping the lid on 20 years of a growth story with a little bit of income and pivoting now to an opportunity

to have a lot of income contributing with a little bit of growth. if investors step forward into that correctly, that would put you in health care and industrials. i think stepping into some of the extremely sold off sectors of the market and present really good value and investors should be able to weather this cycle that we're in which is a cyclical setback within the broader secular long-term bull market >> if the fed does pivot, does that return to a growth to s stocks >> we should see a 5% to 10% pop which is what we saw this summer this is a balance market too much of a good thing could be a bad thing investors should be right down the middle between income and growth. >> sherry, thank you for your time today >> thank you let's get a check of the markets on this friday morning futures have been weaker through

the morning for the nasdaq down 82 points s&p down 11. the dow is in positive territory. up 48 points because that is where the performance had been with the sdindustrials. strong results from exxon and chevron. that's it for us today have a great weekend and will see you back here next monday. right now it is time for "squawk on the street. good morning i'm carl quintanilla with david faber and jim cramer apple, amazon and chevron with 10-year dips higher again as core pce jumps .50% we begin with the ongoing tech route. amazon with disappointing guidance apple and intel moves to bell tighte