we haven't seen that since and never will. we hear from eli lily and pfizer and u ber. we will have an interview with dara. it's tuesday, november 1st, 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. you will see green arrows. dow futures up by 200. s&p up 34. nasdaq up 124. of course, this comes after an

incredibly strong month for stocks this was a month that all major averages did well. it was really the revenge of the old economy. dow industrial gain of 14% for the month. as joe mentioned, the best monthly performance since 1976 we saw a pull back yesterday s&p up 8%. nasdaq up 3.9% technology, if you look at what has happened, technology has suffered the most when we had good months and it has had the least of the strong moves on these usuaissues the dow is down 11% from the all-time high. nasdaq after the gain of 4% this past month, still down 32% from the all-time high. look at the treasury market. 10-year treasury below 4% at

$3$ 3.3% and the fastest rate of increase since the group's record began we are hoping we don't get reads like that here made moderation in inflation >> that's the weird thing. because of concerns about energy prices and what it means with the deep recession talking about big moves. the other big move overnight in china. stocks surging on unconfirmed reports on social media after exploring ways to exit the zero covid policy take a look at the gains overnight in the gaming stocks in the hong kong trading in macau gaming 11% and 12% for wynn we will go live at 6:30 a.m. to beijing.

there is a lot of speculation before the party congress that this would happen after the party congress was complete and president xi was solidly back in power. >> i didn't realize it had fallen so far. i didn't know pennies can fall 12%. energy giant bp with strong third quarter profits. profits used as a proxy for net profit up from $3.3 billion a year. bp announcing $2.5 billion in share repurchasing in the uk, you realize there will be more debates of windfall profits with the share buybacks. it is the talking point with these fossil fuel companies. >> not just in the uk. >> i'll not be divisive today.

have you ever heard when you tax something more that you get more of it? the other thing is buybacks. in this day and age, if you are going to risk your capital like shareholders risk capital in something that is as uncertain as oil production, if it does work out for you, youi ought to reap the rewards it is a global rise for oil. when times are lean and oil is at $20 or $30 in the negative and they put up with that, how much is too much profit for silicon valley companies when moderna and pfizer end up reaping billions because they were in the right place and right time for a pandemic and they earned -- it is the way capitalism works

the other thing is we know that it is never going to happen in this country why ddemegog it >> you play to your base when you do this. >> fine. it causes more elizabeth warren pontificating about it it is totally counter productive when you taxing something, you get less of it the reason prices are where they are is because we haven't produced enough. in a related story, president biden is calling on oil companies to lower prices and address record profits to the oil companies and prices remain high at the pump for many americans. >> rather than increasing investment in america or giving americans a break, thes are goi

shareholders and the executive pay is sky rocketing enough is enough i'm a capitalist you heard me say this before i have no problem with corporations turning a fair profit and return on the in investment and innovation. this is remotely what's happening. >> president biden accused oil companies of war profiteering. putting them out of business, fossil fuel business, put that on hold. now we want to ramp up production in response, the president the trade group a accused president biden of politicking he urged him to get serious of the supply and demand chriss that creisis that created the challenges we will go through the kabuki

dance again. it gets us nowhere >> exxon made a big point of how much they increased production as a result of the things and result of the investments when oil was not anywhere near the levels that they are trying to be counter productive. you invest money when prices are low. you can get the help and piping and everything for cheaper prices >> where would the windfall profits tax go what do they want to use it for? i would rather have them use the profits to produce more. what is the government going to use it for you give a rebate to consumers we're trying to hurt demand with interest rates the fed is interalready trying hurt demand. >> the different question is what bp did with share

repurchase we can have a debate if that is propductive user or not. if you wanted more oil, long-term, would be to invest more in oil fields and drilling and production all of that. >> why >> i understand that. >> if you want to transition in ten years. >> or invest, by the way, in new solar or wind or something you want that money. this goes to the debate about buybacks and dividends or using that money in other way to invest investing is different from dividend out and shareholders say go about god i hope that works. the question is the return to shareholder. that is the great debate about buybacks forever >> you are asking them to take a big leap of faith.

what if they do invest more in production and you tax more? none of these things is conducive to having -- i guess you just have to come back to the notion do you think that the profit incentive works do you think the basis of capitalism works you are looking for shareholders and looking for a return and fund risk. >> i suggest it is an issue in the u.s. in the uk is where they are having this debate they had the debate about the windfall taxes on fossil fuels and so many things for years that's why i raise the concept i'm not arguing in favor of it i'm suggesting capitalism on the whole works. the conundrum is there will be times when on the edges and i'm not saying there is an edge case or not there are certain things you want more productive uses of capital if possible. that's all i'm saying. >> it has to be market forces --

>> yes >> to where it will go if you skew those -- >> the question ishow do you - >> take away incentives. >> how do you set the market forces sdp >> the uk is one thing i don't want to do anything they replicate anything energy related i don't want to doing a lot of the way they do things over there. they have 25 countries using the same currency with 25 different policies i love paris eiffel tower is not on at night anymore. they had to turn off the lights of the eiffel tower. enjoy. we will get you an uber. a programming note uber set to report later this hour i'm headed to uber headquarters and bring you a first on cnbc interview with dara

khosrowshahi i'll see you in a little bit joe. up next, we talk about the potential market cat lalyst. the squawk planner are you taking an uber >> maybe just for fun >> take a lyft watch yourself on the taxi squawk planner is coming up after the break. don't miss the interview with leon cooperman. you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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on today's squawk planner, the federal reserve kicks off the two-day policy meeting the decision is set for 2:00 p.m. tomorrow. eli lilly and pfizer are set to report today and khosrdara khosrowshahi will speak with us today. joining us for a closer look at the markets is gabriela santos it would have been nice if you told me to buy the dow on

october 1st, gabriela. >> it has been interesting certainly very strong month for risk assets in october we really think it was based on a bit more optimism and shift in central bank policy. more optimism of the odds of a soft landing and lower tail risk in europe around the energy crisis as well as market instability. in terms of the central bank piece, we think there is room to continue being a bit more constructive here. that's because this shift in central bank policy is one that's more tempered than the hopes from the summer when investors were going from rate hikes torate cuts. now it is more of a hope we're going to a slower pace of rate hikes and a pause early next year we will have to see especially the tone of the press conference

next week. we don't think the fed will already commit to reducing the pace of hikes to 50 basis points in december. we can look for clues that they are leaving that door open and validating this market optimism. especially if they mention the risks being more balanced between doing too much and too little and also if they start stressing more forward looking indicators of inflation which have started to come down more meaningfully. >> what would you think would have to happen for this to be more than, i don't know what you would call it, bear market rally? snapback reversion? what would set us up for another bull 20%? if we got 14, we are getting close already. >> we need two things. the idea to validate the shift

in the central bank policy for that, what we need to see and and what we are watching is inflation rate events. if you get central banks to shift stance by reducing the pace of hikes and eventually pausing while inflation break evens are contained, that is a sustainable shift in policy. that can only happen if we continue moving along the inflationary process we will watch for slower month over month pace of increases with core inflation and wage growth as well as in monthly job creation the second thing we need to watch, i think, is a bit more of a capitulation here on the idea of a soft landing. the data so far has decelerated and still has stayed resilient if you look at consumer spending on services or jobs market

t actually a more sustained rebound with pessimism reflected about future and economic growth and what it means for future earnings growth. it has been an encouraging star to see earnings revise down by 4% points. it is leaving investors 6% earnings growth next year. it would be better to continue to revise expectations down especially around margins and end up with pessimism embedded with flat earnings growth or negative 10% earnings growth if recession is truly emaciates. >> is that possible after what we saw last week >> it is possible. we would still put the odds of recession happening over the next 12 months as being extremely elevated versus what

is normal. we put it at least 50% which is significantly above a normal probability for recession which is much closer to 15% at any given time the reason it is not guaranteed is because youare still seeing pockets of strength around consumer spending for services it is helped by the strong labor market ultimately what will happen is we see a delayed start to recession given all of the financial tightening we have already seen and elevated inflation levels we're talking about expecting a recession beginning toward the middle of next year. so soft landing is still possible recession odds seem elevated i think for it to be a sustainable market rebound, you need to embed that recession more into earnings expectations

and also into credit spreads if you look at high yield spreads. not embedded this elevated proba probability. for us, too early to dial up risk here. >> gabriela santos, thank you. when we come back, a major publishing merger blocked. we have details right after this. a big lineup still to come including the ceo of uber. lee cooperman and national economic council director brian deese. "squawk box" will be right back.

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good morning welcome back to "squawk box" live from the nasdaq market site in times square. dow futures are up 23. nasdaq up by almost 140 on this first day of the month we got earnings out. just out from eli lilly. adjusted profit at $1.98 a share. revenue $6.94 billion. consensus was 6.89billion. that was in line with what the street was forecasting with all the different things going on for all these companies. forex and everything else. also developing story. we have watched stocks in china surging after unconfirmed reports on social media as policymakers are considering

ways to exit zero covid rules. eunice yoon has more on this front. you are watching the markets overall in asia pick up on this news in china, eunice. >> reporter: absolutely. i think it is because there is so much hope there would be a lifting and exit to the zero covid policy you said they are unverified posts and they do suggest that beijing committee could be forming for a reopening some time in march. again, unofficial posts have been saying that this committee would be led by president xi's political theorists and run through data from the united states and singapore as well as hong kong. again, very difficult to see how this would proceed given the fact that president xi has been

quite strident in his messaging over the value of zero covid one development has been the foreign ministry was asked about this rally and the reports and said that they were not aware. what is interesting so far is state media also hasn't been reporting on it at all which suggests this is a sensitive topic. again, we have some awareness that a lockdown lift would be very helpful because today we saw that zheng, zhou would lift the lockdown which would help foxconn and they are facing trouble there as you know because workers have been streaming out of the factory because of the zero covid concerns and the spread of the virus. there would be a lot of hope

it would be great if they lift the zero covid back to you. >> eunice, as you were talking to us yesterday about the workers leaving foxconn plant, it occurs to me this is happening anyway you said when the workers leave and go back to the hometowns, they are forced to quarantine. if you have hundreds or thousands of people leaving and traveling across areas to get back home, they will be taking it with them as they go anyway this is what we saw three years ago when this started moving across europe and italy and different places when people move to other areas, inevitably, covid travels with them >> reporter: right that's why the chinese government thinks the lockdown strategy has been so effective we haven't been able to move around it has been very difficult to get around the country and then don't want to think about going outside of the country because it is so difficult

the chinese sdtrategy is to lockdown and there won't be so much of a spread at the end of the day, it is depressing the economy and we're seeing that with businesses and just people traveling and going out. it is happening everywhere >> so maybe the idea is correct that once you got through this last party congress, you know, the expectation had been maybe things would get a little easier or freer the pushback was that's not the case that's not the movements that leadership is taking maybe that is the case maybe out of reality this is how things are happening and loosening up >> reporter: i mean, i'm not sure i think that maybe from the government which messaged that they do want to have overseas talent they want high level people from companies and from bankers to come in. so there may be some easing of

restrictions of travel for high level people what we should watch is for any type of chinese solution i think at the end of the day, president xi for a real exit strategy needs to be able to say the solution out of this problem is something that china has been able to lead very carefully i have been watching with chinese mrna trials. that may be an exit. careful fuly watching the state media. we have to see how the government messages to the people so they will feel like it's allowed and the chinese government and president xi who got china out of this problem. >> eunice, thank you we have breaking news. this sp is good for animal spirits and a huge deal.

johnson & johnson will pay cash for the abiomed. let me see the number to give you. 252. indicated 375. it is down a little bit. it is cash $16.6 billion which includes some cash, i guess with abiomed shareholder has. shareholders will receive up to $35 in cash of certain milestones are received. this is the johnson & johnson med tech position in cardiovascular disease and standard care and health care largest disease states and heart failure and recovery abiomed is a world leader in heart, lung and kidney support

technologies the ceo of johnson & johnson says the addition of abiomed is an important step in the execution of our strategic priorities and vision for a new johnson & johnson focused on pharma and med tech. i guess, let's see, it has been around for 18 years of a track record of viable growth, abiomed. we have not seen anything with this market we're in this is almost $17 billion it is cash we are pleased to reach agreement with the remarkable value that abiomed created in the revolutionary in impela heart pump platform. not everyone can get a new heart, obviously if you have cardiac failure, it

is scary and it would be nice if you have assistance. pump assistance without needing a full heart transplant. i think that's what this company is involved with johnson & johnson. making a big move into medical technology >> the business is beefing up in the areas. you see the stock reacting immediately. jumps to 372. that premium is more than 50%. we will talk more about this story and other issues when we come back. it is jobs week in america we will bring you the small data hiring from paychex. we have the latest from pfizer you can watch or listen to us live anytime on the cnbc app futures this morning for the dow up 230 points. strong move for the first day of the month. stick around "squawk box" will be right back.

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the pace of hourly earnings growth cooling for workers at small businesses across the country according to the latest data from paychex. joining us right now is john gibson who is the ceo of

paychex. john, welcome to the show. >> thank you, becky. it is great to be with you >> a lot of years we talked to marty about these numbers. we welcome you great stay you break out what this means. you hear pay increases dropping. you think that would be bad news the fed raising rates rapidly to cool inflation provides relief and means they will take their foot off the brake >> i tell you, the headlines in this report are very simple. hourly earnings on cooling we have seen it for the second month in a row you see people are working more. it's at a two-year high the amount of hours people are working which is incredible. then when you look at that, we hear employers are trying to figure out how to get more out of the employees they got and with informlation, employees ar

bringing in more with the weekly wage. >> it is interesting to see how much one or the other of employees wanting to work more is one thing or employers stretching because they are not finding employees is a telling picture. >> it is a very strong job market is what we're seeing. it is hard to find good workers. what we continue to see right now is employers trying to hoard workers or retain or figure out how to retain workers. across the employment area in small and medium size businesses, leisure and hospit hospitality, everyone is back to pre-pandemic levels and trying to hold on to talent if they can. the other thing is how much are people paying to get people to switch jobs. back in the great recession, we saw double digit numbers that has fallen in the single

digits employers are doing less to attract employees from other employers. >> it is different with leisure and hospitality? >> it is in leisure and hospitality and other services think of personnel services andrepair, t the two sectors that have yet to get employment back to pre-pandemic levels. in leisure and hospitality, over 1 million jobs lost in the area. when you look at the job index, actually other services and wage inflation is 7%. that is because those two sectors have not full recovered and paying more to attract people back to the industry. >> we should maybe put this in context it wage growth is slowing, but you are talking 5% that's pretty strong >> it is strong in historical terms. when you look at the

annualized -- and not to get too tech wonky that wage fell below 4%4%. that rate would indicate a degree of cooling or moderation. i think some of the things the fed iss having impact on wage inflation. >> numbers you are looking at are small and mid sized businesses is it true for the large corporations >> there is a different dynamic in the large corporations. you hear a lot more layoffs in the headlines. we are not seeing that in the small and mid sized. the small and mid sized employers struggled most during covid to fill wage we see a behavior of trying to retain and upgrade employees >> that is interesting not the layoffs we have seen

anecdotally in the headlines because the big companies garn n garner so much more attention? >> yes, that's my view >> is there a regional breakdown where the businesses are doing better or having a harder time >> i actually think there is an interesting northeast versus south dynamic that continues to show up in our data. you have to remember this data actually reflects the impact of hurricane ian. florida saw hourly going down 5% in the tampa area. it was 6%. the south was the only region to not increase the number of hours. typically the south has always been a leader. what is amazing is given the impact of the hurricane, thing south is actually led all regions with job growth. they are over 100 in the index texas is strong. dallas and houston

you look at north carolina is the strongest state and across the board in the south, you are seeing that. the northeast, we saw the sharpest falloffs in october since the pandemic >> john, thank you for the information. again, welcome to the show we look forward to having a lot of interactions with you give our best to marty >> i will. thanks, becky. great to talk to a hoosier >> you're a hoosier, too >> yes >> all right john, we look forward to a long relationship see you later. >> look forward to it. take care. >> right next to ohio. good place good place tri-state area kentucky, indiana and ohio pfizer reporting strong results. the estimate 1.39. revenue up $22.6 billion estimate was $21 billion

that's $1.6 billion more raising the revenue view for the year to 99.5 billion to 102 billion. the street is right at 99.59 clearly the outlook is reflective improved with incremental unfavorable foreign exchange impact. this is a stock that indicated up about 2.5%. 2.3% to 47 at one point it was $61. $62 in the past year on all of the obviously with the company doing well with the covid vaccine. we all benefitted, obviously, from the mrna vaccine svaccines pfizer and moderna benefitted. moderna more so with the stock

appreciation both have come down sharply from the best levels as president biden said the pandemic is now over not in china coming up, planning your portfolio. two investments to consider if you are worried about inflation. and uber is set to report. we will bring you the numbers and first cnbc interview with the ceo dara khosrowshahi. the company that provides a great service. i just figured that out in the last six weeks "squawk box" will be right back.

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today the new rate on the i-savings bond is expected to fall to about 6.48%, based on a fixed rate of zero and a formula that includes the past weeks of inflation. the real rate on a five year would yield 1.6% so what is the better inflation hedge for your money right now both relatively good investments, but you can't cash them in for one year and you

will lose three months of interest if you redeem them within five years. tips have fewer restrictions and you can purchase $10 million in security, and they have principal adjusted for inflation, and so the total return can fluctuate >> if you bought them at $1 and you hold it to maturity, you will get the inflation differential, but if you need to sell it before maturity, so the shortest one is five years, you have the possibility of losing money. >> on the other hand, increases in tips are subject to federal taxes in the year they occur, and that's why financial

advisers recommend tips for tax deferred accounts like iras and 401(k)s. join me virtually today at 12:00 eastern and hear from top financial experts. register at cnbcevents.com/yourmoney >> so which should investors use, i-bonds or tips tips doesn't have the limitations of how much you can buy? >> absolutely. i-bonds may be good for short-term savings, and tips can be a better flexibility and more volatility >> sharon epperson, we'll see you soon >> absolutely. let's get to andrew, who, as you may have noticed, is not in a seat here but he is in a seat

over at uber headquarters can the company's latest results >> we are just getting these results, and they are just across the tape, and it looks like better than expected across the board for revenue, and there is a loss, which we will talk about, but i think it's a noncash loss we will walk through what that means. what most people will be focused on this morning, however, is the outlook adjustment for q4 to grow 23% to 27% year over year we'll talk currencies as well. we will break down all of this in the next hour, and we will have the first cnbc interview with uber ceo, dara khosrowshahi, right here, downtown live in new york city "squawk box" back in just a little bit with dara

khosrowshahi in just a little bit.

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good morning stocks looking to start november in the green futures pointing to a higher open after the dow posted its best monthly gain since 1976

uber reporting results, and ceo dara khosrowshahi, joins us for his first cnbc interview ahead of the company's conference call and then midterms and your money just a week away the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i am joe kernen along with becky quick. andrew, you are at uber headquarters getting ready for the interview with uber ceo, dara khosrowshahi.

that will be coming up and the u.s. equities are solid after the last month, since 1976 people argue there was a better -- i mentioned the great ones and there's four i left out. >> black sox >> somebody said the red sox almost won, and the next year the sox swept the yankees. it was not too good this year either, was it, for yankee fans. you can see it, and now we are back below 3.95 on the ten-year. it almost seems like -- the firmness in equities take a look at oil oil today, 87 -- up 1.30, and we

will talk more about that after what president biden proposed yesterday. and crypto has been just under $21,000. right now it's at 20,600 and i mentioned, uber quarterly results are out, and andrew i know you have a lot to do. are you excited about a 17 billion acquisition by johnson & johnson? a huge premium, animal spirits, baby >> it's a massive premium and maybe speaks to where we are in the economy. perhaps uber's quarterly results, which are just out also, speak to where we are perhaps in the economy we will see whether the market likes it this morning. it comes in better than expected, and the company did report a quarterly loss. we will talk about what that was all about. it included a significant

noncash charge which is the revaluation of some of the investments, and we talked about that on this program a lot and some of the executive compensation we will talk all about that this quarter with the company's ceo, dara khosrowshahi. right now they are saying gross bookings to grow 23 to 27% year over year, and the dow would go from 600 to 630 in the fourth quarter. the stock is up close to 10% right now on the news, and we will break it down with dara in just a little bit. >> thanks, andrew. in the meantime, let's get to dom chu. looks like a lot of stuff is moving >> a lot of stuff is moving, becky. a massive deal for johnson &

johnson to acquire abiomed the deal is for all cash per share of $380, and that's what johnson & johnson will pay to by abiomed. what this will do is provide an enterprise value for the deal which includes equity of debt, and it will bolster johnson & johnson's medical technologies business abiomed does a lot of stuff with heart, lungs and kidney support functions, and johnson & johnson's share is down a quarter percent of trading on that nature. and then in the health care business, we have a couple big earnings movers so far this morning. eli lilly out this morning with results that came out better

than estimated with profits and revenues, and they did cut, and pfizer shares coming in better than expected for quarterly profits and revenues, and you will see those shares up about 3.5% and then social media postings with regard to respect that china may look to ease some of the covid restrictions if you want to call it news -- the speculation on some of these social media posts have led to a huge move higher in the premarket for some of the chinese tech companies, so u.s. listed ones here, and some up 5.5 to 7.5

and some of the big u.s. multinationals will exposure to china in a significant way are doing better as well if you check out names like apple, nike, or starbucks, some of the names we talked about in the past are having exposure, and they are all up tp fractionally, and we will see whether or not there's any verifiable news that could substantiate some of the headlines we are seeing, and that's what is driving a lot of the upside action, becky >> good deal thank you >> sure. when we come back, the dow breaking a six-day winning streak and still seeing its best month since 1976 it was down yesterday, but not by enough to break that record this morning the futures are decidedly higher you are talking about the dow futures up now about 212 points above fair value, and the nasdaq

up by 133. we have been picking up steam through the course of the morning. earnings, the fed and jobs all setting up investors for the markets, and we'll talk about that after this break. ♪ ♪ ♪ ♪ ♪ ♪ introducing ihg one rewards. seventeen hotel brands. six thousand global destinations. one loyalty program that lets you guest how you guest.

all right. it's a big week for the markets. the earnings parade continues with key results from amd, qualcomm, coin base and more expected tomorrow we will know for sure what the fed intends to do for rates at least for this go around, and we will get guidance what it might hint at for the coming months and that's the key thing for the markets, and then we will get the october employment report and that will give us more of a hint on what the fed might do next time around let's bring in the president and ceo of thornburg investment management, and jason, it's nice to see you here on set >> good to be here >> let's talk about the setup. earnings matter maybe more than what thought they did, because we thought everything was driven around the fed but the numbers we have seen lately, especially with the old economy industrials have been super impressive, and that powered things. >> and with banks, and so as you

say, the value of stocks, the more cyclical names are coming in okay, and the new economy surprisingly came in poorly but it didn't matter, right? the market power drew. and we have gone through most of the earnings and they were pretty good. >> the fed is here, and everybody did well for the month and the nasdaq up almost 4%, and the dow up 14%, and i will take the old economy versus the new what do you expect to hear from the fed tomorrow and what matters? tomorrow we all baked in 75 basis points, but what do they do next? >> if it comes in at 75, that will be news and i don't expect that to happen we are all looking for clues, right? it's like powell is professor plum in the library.

all over the world, a lot of places, central banks are beginning to slow and that dynamic is real, and the latter is what has been powering the markets over the last coming weeks, and i expect the fed to have a little less burns >> what does that do to the dollar >> strengthens the dollars and it's sort of looking at we are now at the point where people are looking at balance sheets and the underlying strength of the balance sheets, and fx can add or subtract, and the dollar woill matter for othr reasons but not necessarily for earnings >> when you look at small and mid sized businesses, these employers are trying to hold on

to employees, and you are not seeing layoffs like some of the big major corporations and that tells a story of what is happening in the jobs market, too. >> every employer has whiplash, right? we have to try and keep employees, and the pandemic, let's keep everybody safe to make sure we can keep on for talent, and that was the massive conversation six months ago, and now it's trying to steady our business when the jobs market might be softening somewhat. >> you have your own new acronym for this -- >> yeah, we saw the earnings come and seeing investors going mama, mama >> microsoft, apple, meta, and alphabet, and netflix. >> netflix is not a company i

would look at as a bellwether, but those are enormous cap companies, but not as acyclical as we thought they were. >> and the word i use starts with mother for the market what did you make of the gdp number on thursday the previous two numbers were skewed >> right >> and this quarter skewed positively for whatever reason, and so what does the economy -- is it at zero or half? what are we averaging the last three quarters in real terms, a half or 1% >> i look at the underlying numbers and it looks slowing to me, not accelerating >> why do they need to be more than burns >> they need to get to a point where investors believe --

investors actually believe that they are going to be on the job on inflation >> so slowing the economy even slower than half a percent we just talked about, that cures inflation? >> it will cure the jobs market, and the fed needs to cause pain to break inflation, and that's the reality and a real challenge, and it's a political -- >> and nothing on the supply answers, to help supply so inflation comes down >> we are in a political cycle, not a two or -- >> you can kill the disease by killing the patient, too >> well, you want to make sure you get rid of all the cancer without leaving any floating around so it doesn't metastasize again. >> and it's not really in the way of positive gdp -- >> are you sure it's not the aftermath of a once in a century pandemic >> it partly is. >> and then that -- you know, we

were at, what, 25, and now we are -- we are 65 back in the office, and we will get back to 75 -- it's slowly coming back, isn't it >> it is i actually don't think the underlying employment or economic picture is so different from 2019 or 2018. it will take a while to get there, but the idea that the demographics are so -- >> we hit 2% -- less than 2% inflation. >> and expectations are the problem today. >> once it starts -- yeah, i saw an interesting take on twitter this morning, and they said the fed doesn't want to come back and raise again, and they need to act like an adult and parent and not listen to the 5-year-old saying the we have to fix this now, and it will be problematic, and other central banks are saying we can't do this, and in

europe in particular, they are facing a deeper recession, so how do we go against the grain with the rest of the globe >> europe will have a problem of saying inflation is at 10.7%, and we don't have the economy that can stand much higher rates. the problem the fed will have will be more nuanced which is when inflation gets down to five or four, which is above their mandate but clearly slowing and employment is picking up, then what do they do? >> interesting point >> and staying higher for longer, and if you look at the history of the fed, they don't do that well >> if they did, okay, you can get it down to not 2%, but 5 or 4%, and that's the playbook they are laying out right now >> yeah, and continuing to raise rates at the break neck race, they will maintain it for longer, it's a little high, but for longer

>> so where do you buy and where do you avoid >> there are plenty of names out there with not very demanding multiples. just got through earnings for a number of them and they look pretty good. >> like what >> okay. so on the financial side, away from jpmorgan, which is a great franchise, maybe a more controversial name is cap one, and unemployment is not demanding, and cap one took some preparation for this said recession. and outside the u.s., total energy, not demanding the blowout earnings, but the transition in europe, which was a serious challenge -- >> could they get caught up in a windfall profit stats? >> they could, but the pe is so

low, and it would still represent an excellent total return >> jason, thank you for coming in today >> pleasure. when we come back, we do have a first on cnbc interview with uber technology ceo, dara khosrowshahi later, chairman and ceo, leon cooperman, we will find out where he is putting his money to work "squawk box" will be right back.

president biden calling on all companies to lower their prices, and in an address yesterday he reported the biggest profits for many of the oil companies while prices remain high for many americans >> rather than giving americans a break, they are buying their back stocks. give me a break. enough is enough look, i am a capitalist, and you heard me say it before, i have no problem with corporations

getting a return on their investment and innovation, but this is not remotely what is happening. >> give me a break, the company said the president accused oil companies of war fear profiteering in response, the president of the trade group accused president biden of politicking and noted gas prices have come down by roughly a quarter this summer, and said for the white house to get serious, and did you take an uber over there, andrew >> i did not take an uber down here it was too expensive for my taste -- no, that's not true >> oh, my -- >> no. no >> how much? >> and dara is right here and we will bring him into the conversation after this break.

we will talk about the costs of ubering these days, and the cost of the stock have been going up this morning close to 10% higher as the expectations for what their fourth quarter may look like, and better than expected revenue, and the company did report a quarterly loss, and we will talk about what that means including a significant noncash charge related to some of the equity investments and when we come back, uber ceo, dara khosrowshahi, will be with us on a first cnbc interview right here at uber headquarters in downtown manhattan. and first, look at the futures rough open, breaking a six-day win streak "squawk box" coming right back

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welcome back to "squawk box" this morning uber just out with quarterly results seeing bookings surging from year ago, and that stock,

it's up about 8% in the premarket off the back of the news this morning. we will break it down because right now we will spend time first here at cnbc at uber new york headquarters with ceo, dara khosrowshahi >> good to be here >> i don't know if the market liked it last quarter, and they like it for guidance when a lot of people start to worry about what next quarter looks like i want to get into all the numbers as a pbarometer of the larger economy >> it's a reflection of where the economy is going, especially when the u.s. consumer remains strong and their spending, and they are moving a bunch of their spending from retail to services, and we are in the service sector, right? you are going out to restaurants and cities are opening up and you are taking uber, and uber eats continues as a strong pace

as well, and up 32% on a constant currency basis, and you are seeing our margins continue to improve as well, which is why we gave the healthy outlook -- >> let's talk about the various businesses the mobility business, and that is i get in the uber and go somewhere, and that business is growing remarkably the delivery business, growing, but slower than it had been growing, i think is fair to say, and then a fascinating business, and when you think about the supply chain and the broader economy, that was the slower part of the business >> we always talked about uber being an all weather company, and right now the mobility is incredibly strong, and the margin is 6.6% of gross bookings, and delivery continues to grow. we accelerated a little off of

q2, and we are focused on the profitability, and we will keep pushing. freight is feeling the affects of shipping costs coming down, and ultimately that is good for the industry at large. >> what is going to come next in the economy? you don't see a recession or don't feel one we have an interesting issue a lot of ceos coming on saying right now we don't think there's a problem, but we are afraid like everybody else because everybody says there's a problem, and big tech has had a problem, and the advertising world had a problem, and you are getting into the advertising business and we will talk about that in a second, and you look out to '23 and you think what? >> we are being cautious, and when we look at the business, mobility opening up, and the delivery business is sticky, a 13% growth in the last quarter constant currency, and we are

operating on a cautious basis, even though if the world was an uber world, we would be celebrating because the business is strong and the outlook for uber itself is stronger. >> how much of these profits are a function of the fact that i think you are now a premium service? it used to be that uber competed with taxicabs in new york city, and now it just costs more, and pretty much it always feels like it costs more, and i know you have taxicabs on the platform? >> yeah, and the number of drivers we have now on a world wild basis is at an all-time high, and prices q3 over q2 in terms of surge levels have started to modulate. we know our drivers are making sure they are earning at healthy

levels, and they are at $36 an hour -- >> 36? that's coming down slightly? >> it has come down slightly from 37 to 36, but those earnings levels are very robust along with the flexibility that comes with driving as well, and we are hoping to meter consumer pricing to the -- >> that will explain my uber costs. when it comes to your drivers, you have been in a battle, as you know, around this country and around the globe over whether these are employees or contractors, and president biden publicly coming out with a proposal effectively to make a lot of your drivers employees. how do you think that changes this debate that you have been in for a very long time, but now at a federal level >> the proposal really goes back to the laws the way they were in the obama era, which is one of the best times for ouber's growth, and the communication

from various folks in the administration is they don't expect any large reclassification happening, which would happen with uber the fact is uber is getting flexible earnings with an average of $36 an hour now for hundreds of thousands of americans and drivers all over the globe, and that is a force for good, and it happens to bring up a great service for consumers all around the world as well. >> one of the things we mentioned earlier, was an advertising piece which is new that i see in the app, and how big of a business do you ultimately think that could be, and what do you think about launching that business in an environment. >> we have the growth rates that are high, and we are targeting to get to $1 billion by 2024, and advertising, as you know, is a very high margin business, and

as you said, our consumer is an incredibly attractive consumer, and the relationship we have with the consumer, they tend to use the product over and over again, and it's strong, and we are a product with tons of advertising now and we have growth ads >> you are delivering pot in canada >> yes >> do you imagine delivering pot in the united states >> i think there will be a demand for it, if it's legal, we will deliver it. we -- >> is there anything you wouldn't deliver >> i think ultimately we -- if the laws of the land allow us -- allow consumers to consume one thing or the other, we trust our consumer i don't know if we want to get

into those kinds of editorial decisions. >> how concern are you about the price of gas and oil as it relates to the business and driver and everything else >> we are definitely concerned we want our costs to our drivers as low as possible, and used cars and in cars are coming down, and we are seeing now more and more drivers flip over to electric vehicles, so in california, for example, 9% of our miles this last quarter were in evs, so we are really starting -- >> there's a premium on those cars >> because consumers love them >> and consumers are willing to pay for it >> we take a cut of our own booking fee out of our own pockets and hand it over to the drivers to make sure driving an electric vehicle becomes more attractive for our drivers >> president biden was talking

about a windfall tax on oil companies, and there's a debate on whether we are incentivizing more drilling and enough production of gas and oil at the same time that we are also trying to move towards electric faction? >> it's supply and demand, and we made a big investment in producing the supply of drivers out there to bring prices down, and i do think that the administration should look to increase supply when they make pronouncements like windfall profits and et cetera, and they are essentially decreasing supply by discouraging investments, so the focus should be for consumers and the world and et cetera as we make this transition to incentivize companies to bring down the

prices for the consumer. >> and elon musk buying twitter, and there's speculation that twitter could turn into a super app, the front end that could compete with uber, which is to say that he wants to be in the robo taxi business, as you know, and if you marry this large user base that lives on twitter, and he could marry the robo taxi business, it gets interesting. what do you think? >> i think there are a lot of ifs there, and i would never underestimate elon we have been in a competitive market all over the world, and because of the platform and innovation on uber, we have done more than fine if he gets into the game, it will be a fun game >> are you staying a twitter user >> absolutely i am let's see what happens i don't want to prejudge anything >> becky >> thanks, andrew.

dara, thank you for being with us great to see you the labor department proposal, this is a rule that would make it more tougher for uber and lift companies to classify workers as contractors, in other words, to force them to be made employees, and we talked about it in the past when kcalifornia proposed rules like this, and have you done anything to make that differential for employees working 40 and 50 hours a week and workers picking up shifts here and there, and what will you do if the rule becomes permanent? >> the vast majority of drivers or couriers are part time, working 20 hours or less, and that's the deal room making and didn't anticipate large reclassifications one way or the

other, and we think the right way forward is the independent contractor along with minimum wage protections and or health care and other kinds of benefits as well, and that's what prop 22 in california was about, it was a landslide win there, and we are working state by state by state. washington state is another example where we are getting legislation into law that protects independence and we think that's the right way going forward. >> are you doing anything to make that company wide and just doing it instead of trying to go state by state to do it? i would think if you went ahead and did it, it might prevent some of the federal or state by state fights from happening? >> whatever we do has to be in dialogue with every single state as well, so we are now having dialogue on a state by state level. >> okay. thanks >> sure. >> before i let you go, wanted to talk to you about what you think the growth prospect looks

like we talked about growth since the first day you went public, and when you look at brazil, and you are killing it in brazil, and i think close to 7% of every brazilian is in an uber once a week >> yeah, brazil is a great market for us. >> what is working there what do you have to do to get numbers like that in the u.s. or, frankly, anywhere else >> i think what we see in brazil is the supply of drivers is very significant and the price of the service is lower, and that's why we want to add more drivers into the service as well, and then in brazil, you know, mass transit, et cetera, is less developed than say in some of the other countries, so alternatives are less attractive as well. ultimately, what we think is as we add in new cases, we have uber x., and evs and buses and we are developing a high capacity people to get 10 or 15 people into an uber, and we

become more relevant and can increase the frequency of the use, which is what it's all about. >> the loss was largely a function of readjusting the valuation of dd, and we talked a lot of times about what to do about the stake in dd at this point? what is the gamble here and on china? >> ultimately we will look to -- the free cash flow is only going to increase over a number of years. we can take our time monetizing that stake, but it's something that we will look to monetize and put the capital on the balance sheet or buy back stock, for example. >> dara khosrowshahi, great to see you, sir >> thank you

>> i am going to head uptown and may take an uber to come and visit with you >> you should. andrew, supply and demand. dara has got it. supply and demand. it cost what it cost it's worth it. it's worth it. you get what you pay for >> joe is now, like, he's all in >> i love it, joe. thank you very much. you should become an uber one member >> i told you that night -- i would have walked 40 blocks with my family and would probably be dead or have an eice pick in my eye, or whatever, and it was beautiful. >> thank you for being a customer >> you are welcome i will continue to do so coming up, libby cantrill, and check out these stats.

as of yesterday, communication services, consumer discretionary and tech, down 2, 0%and financials, materials and utilities and staples, 10% we will talk about it when "squawk box" comes back. sam, thank you for being here what do leaders need to focus on when it comes to the employee experience >> first, virtual and working

from home is here to stay. culture can no longer be driven by proximity, and organizations have to be more explicit about t that we try the pizza parties to get people back in the office, and it was not enough, and people want to have experiences in the office that are unique and make them feel connected, and companies have to think about what experiences can we give our people virtual and in person >> how are you seeing that come to life with clients >> for example, one of my clients uses their in-person days for different things, and one day they may have the executives to spend time with the staff, and then another day they focus on innovation >> thank you for sharing your

expertise. >> thanks for having me. breaking news this morning, johnson & johnson announcing a big acquisition. j &j is buying abiomed -- as i am told, and i would call it a biomed -- >> really? we have been calling it the wrong name >> i have known that, but abiomed -- >> a company specializing in heart, lung and kidney transplants, and if you have --

>> abiomed >> abiomed >> okay. >> the shareholders are also receiving a contingent share right, and they had the artificial heart -- it was a lot of -- maybe it works better to just help people with congestive heart failure with an assist, like a device, and j&j is getting more into this kind of cardiology >> you think that would be better because you would have a lesser rate of rejection >> yeah, it's about 380 -- >> yeah, it's $35 in cash if

certain milestones are met, and they do layout what those milestones are i guess people are betting a, this is a deal that won't receive any concerns from the regulatory oversight, and b, they are able to meet some of those milestones >> yeah, it really is $16 billion, too, and closer to 17 because -- i don't know -- >> look at that johnson & johnson trading down on that >> no, it's not dilutive, unless you consider cash -- >> yeah, it dilutes me and when you consider where stocks have gone, you wouldn't want to see somebody using stock that recently dropped because of the overall market conditions. in the meantime, eli lily says that it is seeing the impact of a stronger dollar, and also

increased competition. the company did report better than expected results for the latest quarter, and that stock is off by 1.9% and pfizer is rallying in the premarket after the company reported better than expected quarterly results, and stronger demand for older drugs set off sales for some of the covid-related products, and that stock up now by almost 3%. when we come back, one week out from election day, libby cantrill will join us after the break about what investors can expect and then we will talk about the winners and losers in the s&p premarket. >> ibo med -- i have been saying that wrong for years at the bottom of the list, striker is off -- started flying, strikr

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comcast business. powering possibilities. ™ xfinity rewards is a program whose sole purpose is to say "thank you" with experiences big, small and once-in-a-lifetime. sometimes it's about cheering hard enough to shake the stadium! sometimes, it's as simple as movie night right here at home, on us. you mean the world to us. so we're bringing you closer to what you love. kinda like this. welcome to 30 rock! join xfinity rewards for free on the xfinity app today. our thanks, your rewards. just a week until the midterms for a look at the potential impacts on the markets, let's bring libby cantrill, pimco. some people have pointed to the october gain in the dow, 14%, they say that you are already --

the markets have already been sniffing out a republican win in the house and maybe even in the senate do you agree with that >> yeah, i think that there are other reasons for the market rally, but certainly that could very well be one of them what we're seeing just in terms of the broad based pulling is that republicans are coming home so to speak. the generic ballot has been improving for republicans over the last few weeks some of the senate candidates in key battleground senate races, that polling has been improving for republicans. but joe, you point out something that is really important and something we're trying to impart to our clients, it is really the house that matters the distinction between a republican house and republican house and senate are just not that much. republicans if they control the house, they will still be able to obstruct, provide oversight, all the things the market will like so that should be the focus for investors, not necessarily the

direction of the senate. that would just sort of be the cherry on the top. but it is really the house that will matter from a market perip perspective. >> kind of sad that the market would rally on one party 3r50e venting the other party do something. >> market likes grid lock. every since 1932 market has rallied. they don't necessarily like unified power. so it might be a testament of where we are politically today, but the adage has been true over the decades. >> has pimco tried like other firms, tried to put together like a portfolio, a democrat port portfolio, a republican portfolio? >> you know, we don't necessarily do that. we're macro investors, so sort of the political whims particularly as it results to

fiscal policy are key inputs into our investment process. but we are long term investors fortunately, so we have the benefit of investing for the long term. but again who controls washington for sure is an important input, but we didn't necessarily have a bespoke partisan portfolio necessarily >> so you wouldn't buy -- as simple as buying renewables on one side or hydrocarbon producers on the other side, defense stocks seem like maybe something that -- we actually pointed that out that in the past you'd think that that would be a republican play defense stocks, but democrats seem more strident on continuing -- i don't know if it is a black check, but continuing full support for the war in ukraine so suddenly democrats might actually -- >> yeah, partisan divisions are breaking down. i think that is right, there are three sort of key sectors that will likely do well under either of the most likely scenarios,

either a republican house or republican senate and they are energy, defense and financial services just in terms of the oversight that republicans are likely to administer over regulators like the s.e.c. and the cfpb, sort of throwing sand in the gears if you will of the regulatory machinations and energy is one area where you could see some compromise. we talk about how the market likes gridlock there are some areas in terms of issue areas where there is overlap between republicans and moderate democrats energy permitting is one of them, is that could gain a congress in a republican congress and so grid olock likely the rue of the day but there are areas of compromise. >> be nice if you could say one party or the other is more careful with taxpayer dollars.

one likes to spend a lot, the other likes to take less in with tax cuts either way they both seem equally unable to rein in deficit spending >> that is it, that is an important point especially if we are thinking about recession into 2023 or a higher risk of recession at least and we do think that growth will slow in the fourth quarter and likely in the first half of 2023 i do think that there will be less fiscal support sort of regardless of the composition of congress i think even moderate democrats are sort of rethinking some of the government intending that they have allowed to happen just because of its read-through to inflation. so i think that there will be a lot of reticence and you're right, there haven't been $5 trillion of covid relief, tax cuts, a lot of spending through the "inflation reduction act" and other things but i do think that there is

more of a reticence forfiscal support. and i think that that is an important takeaway too for the market, that we're sort of saying the fiscal put, you have this fed put for many years, you've also had a fiscal put you had congress kind of saving the day from a fiscal perspective and we don't think that that will likely continue >> libby, thanks coming up, recap of market movers plus would he talk fed expectations and much more and later, brian deese will be joining us and here are the futures this morning. pretty good. pretty solid after it wasn't a % r y october. 14fothe dow. 219 in the futures as you are... don't settle for silver. harness the power of 7 moisturizers & 3 vitamins

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good morning futures pointing to a nice opening. first opening bell of november up 200 points, the dow meanwhile coming off its best month since 1976 this hour we'll talk about what to expect in the final two

months of the year with investor leon cooperman and president biden threatening higher taxes on the oil giants if they don't work to bring down gas prices national economic council director brian deese will join us to explain. final hour of "squawk box" begins right now good morning, everybody. welcome to "squawk box." we're live from the nasdaq market site. i'm becky quick along with joe kernen andrew is making his way back here from uber's headquarters. and in the meantime the u.s. equity futures have been doing very well this morning you are talking about a gain of about 230 points for the dow 41 for the s&p and the nasdaq up by 150 on tfirst day of the

month. also treasury yields are being down little a bit. at 3.945%. third quarter results speaking of uber, out, shares are jumping. they reported better than expect heed quarterly revenue as gross bookings surged compared to a year ago here is what dara khosrowshahi told us last hour regarding the higher fares that users may be noticing >> prices definitely have come up, although i will tell you that the number of drivers that we have new on a worldwide basis is an all-time high. in the u.s. we're about 80% recovered in terms of drivers back to the service. and prices q3 over q2 in terms of surge levels have started to modulate >> abiomed >> on the bottom line uber did report a third quarter net loss

of $1.2 billion. abiomed. about 500 million of that was attributed to revaluations of equity >> and we have a lot on the move today including abiomed after the big deal coming through. abiomed. it is a big, big deal and we'll talk about that, but it is not the only thing moving markets. dom chu has baeen looking at other earnings >> and i'm going to leave abiomed to you guys because i mispronounced it in the last hour, so i'll leave it to you to discuss later on i will though bring you up to speed on some of the other big earnings movers besides uber out in this past couple of hours here biotech and pharmaceuticals a huge focus pfizer up about 3%, 48 bucks a

share. they come out with earnings and revenues that came out better than expected and also raised its full year forecast it did see some better than expected results with regard to its sales of some of its more seasoned franchises for treatments and drugs, if you will, and vaccines as opposed to some of the newer ones but also separate news about a late stage trial that it has for a rsv vaccine. it has reported at least positive results for one of its candidates for a vaccine for that respiratory illness so that is helping to contribute to the positive news there eli lilly about 1% declines there. also comes out with better than expected results for both profits and revenues, but it did cut its full year forecast due if n. part to a stronger u.s. dollar and more competition on the generic side for some of its cancer drugs and as well as lower insulin prices big earnings mover to the up

side, not in the s&p 500, but sofi technologies up 12.5%, it reports a narrower smaller than expected loss, better than expected revenues. and also raises its financial o outlook. up about 12.5% on that bit of news and then to kind of cap things off, thematic element that we mentioned earlier, but worth repeating, the biggest gainers in the nasdaq 100 trading pre-market are u.s. listed chinese tech companies like jd.com and baidu this is all on the unsubstantiated reports on social media with regard to in the coming days and weeks whether china will possibly look to ease some of its covid restrictions there that is generating a bit of buzz here putting arising tide on many of those names. and we'll watch nike and apple as well, other companies that

have significant revenue business interests in china are also moving higher on that bit of news. so we'll see whether comes to fruition >> dom, thank you. federal reserve about to kick off its latest policy meeting. investors will look for signs of a swivel no, we're still calling it a pivot. but that term is currently being redefined, it is my term, liesman, i don't know if you've got a better man for swivel. swivel is a small pivot. slight pivot a body language pivot, not a real pivot, but a swivel, an acknowledgement of data, a swivet if you will >> joe, what if you put on a tutu and did a -- >> i don't know if anyone needs -- you couldn't unsee

that becky is doing that. >> just truck me as anothsynony. the term pivot has been defined three separate times bimarkets first it meant rate cuts, then pauses in rate hikes and now it just means reducing the rate of incr increases. and that pivot or swivet doesn't come until test. 75 this month, 50 next month and the peak $4.83 in march, but the fed stays at that rate according to our panel for ten months a senior economist writes in, let's not get too excited about an imminent fed pivot. we are not yet arriving on the finish line.

expectations are still way too high and core cpi likely to be sticky for several months due to rents. we asked the 35 respond eents wa it would take for a real pivot and the bar looks to be very high average cpi rate needs to be 2.6% for five months,en employment rate of 5.3% and gdp falling by 2.2%. here is the rate outlook according to the panel very close to where the market is right now and peak rate of 4.8%. and then at the end of that ten month period or around there, the fed does ease back a little bit, eases back the year after that in 2024, 3.3% the consensus is that the fed creates a recession through its rate hikes and there are also growing concerns about stress on fixed income markets 63% think systemic risk is somewhat high and 9% seeing it as very high

>> okay, steve, we got so used to data dependency, has hard for me to -- i guess it depends on what data you decide to focus on we talked earlier, we had two negative quarters, small, due to weird factors. we had one positive due to maybe one jo oneoff factors what is the real average the last three quarters, what do you think gdp has been for an average over annualized the last nine months? zero >> i haven't calculated that, but -- >> no, not actual number >> slightly -- go ahead. >> not using the data we have, not using the -- >> the real thing. >> yeah, if you back out the weird things, inventory buildup,

pandemic-related effects, with a kind of an economy are we really talking about? what i'm arguing for is maybe it is already pretty slow, so if killing it even more, benefits of whether you cure inflation, you don't even know if you are doing that and if you already have a pretty slow economy, i just think that you need to think about that >> it is more worrisome, right i think that it may be right to come up with like a 1% figure if you get rid of all the noise around gdp over the nine months and you still haven't really had much of an impact on inflation headline cpi has come down a bit, but the core has been very sticky you have that lingering rent inflation problem. if we're really slowing it below trend and not getting much response on inflation, that has to be worrisome, that needs to tell the fed it needs to lean even harder. and the trouble is the fed only just now became restrictive.

that is why it was going 75s, they wanted to get to a place where it was actually putting brakes on the economy and it has only been a few months while the actual braking has been going on >> yeah, we were already slowing it seems like. and you weren't sold on the friendlier inflation numbers last week, you think that those might not last >> a little bit. a little bit i still want to see what happens with -- you know, you had really strong wage gains coming through and so maybe we'll get a little help from the housing part but i just think that this takes time you look at the survey, they want to see several months of declining inflation. >> market seems to be -- something is happening seems to be sniffing out a little bit of a swivel maybe >> if it keeps redefining the term, then it is okay, you know. >> all right coming up, another -- it says

can't miss another in addition to the one that we just did two more can't miss interviews, leon cooperman on the markets and national economic council's brian deese on president biden's threat to boost taxes on oil companies.

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qu welcome back johnson & johnson is buying a b biomed it closed yesterday at $252. and shareholders will receive contingent value right certain milestones are met almost a $17 billion acquisition. >> that is why you see the stock trading above $380 we should probably point out abiomed's 52 week high, do you know what it is? >> above that? >> no, $379.30 i think so paying right at the 52 week high it is a big premium from right

here, but not from its high earlier this year. johnson & johnson also paying in cash, which is a good thing if you consider their stock what has happened to this year. and remember we had the cfo of johnson oand john on anson and e talked about their strong cash position and they are also trying to beef up their medical device side of things and that might be -- remember we looked earlier at the s&p losers at the top of the list at that point was striker. striker also a manufacturer of medical devices. and it is the second worth performer in the s&p 500 >> formed in 1981 to develop the first artificial heart abiomed. and heart recovery, that obviously would still be amazing, but there are also

other things that you can do for people for congestive heart failure where you have an assist device that supplements a weakened heart instead of just the -- and they have tried it. i don't think that -- someone did receive a bio core is the name of the device heart, but i don't think that it is -- i need to look more into it next guest owns j&j and also owns uber, the other big mover let's talk about both with the managing partner and portfolio manager at did dcla, also a cnbc contributor. johnson & johnson already one you like >> yeah, it is a good acquisition because they will spin off the consumer business and i think that is where you will use cash, you are not using stock. if you think your stock is cheap, you are not going to use it and you will use your cash to something that you think about be beiaccreted and so it gives you confidence

in an area today where you see this acquisition, you saw blackstone, and so you are seeing some activity which is o forward. >> how about uber? >> i think uber's numbers on the headline numbers were great. uber has said in their last analyst meeting from last year we are going to get rid of our noncore businesses, mobility is really important, drive share is really important and they have a combination of the food business that gives their drivers the benefit of using either one so they are actually executing on what they said. they will be cash flow positive. and they are doing well in an economy that is slowing down >> so i did -- artificial heart went into 15 total patients. due to insufficient evidence of its efficacy, abiomed abandoned

further development. so maybe it is mostly -- i don't know, maybe mostly left ventricular assist devices >> yeah, if you look at where it is fit management medical products because they have the phrma business, medical products business, so really adding to the medical products, i wouldn't be surprised if you see j&j kind of splitting off into two more businesses because investors are not rewarding conglomerates. and that is why you are seeing the spinoffs, whether j&j or other companies like that. >> what do you want to see happen as far as regulatory oversight of uber? how do you think that plays out? we heard from dara that drivers make $36 an hour some of them aren't full-time employees. others are should the government get involved >> i'm a firm believer that the government should stay out of this they have already voted on this

in california which we know once california did it, no other state is going to follow but i think that it is up to the drivers. they are independent contractors. if they want to work, they can work if they don't, that is their choice >> you may think the government sho stay out of it, but what if they don't >> well, it has also become political because at we go into the elections, right now you have that noise, that overhang i do think past elections we'll see where it goes depending on how things go. but will the government still hang around, yeah, but -- >> you see the speech yesterday? >> i did and again, we have a lot of politics going in here where was the wind fall taxes when the tech companies were making billions? >> what did you take in school, did you ever have an economics course >> i was accounting and finance. >> have you ever seen a situation where you get more of something when you tax it and regulate it? >> absolutely not. i mean, you need a free market

>> you use the "a" word. >> as in ura >> look, the period of years where the energy companies were completely out of favor and oil was negative and -- >> and lost billions of dollars. >> so nobody was coming to their rescue at that point >> and refinerss -- it is a totally different issue. so is that what we should expect -- >> and a week around from the election and it is interesting because the stocks have reflected what the companies have done. and which is, look, they have actually listened to investors and returned capital >> we have to run, but this is what you think the government should do. if they do abilityct on any of would you own the stock? >> it would be a long process, but if the government does do it, i think that you have an issue of what do you want to own in the future because they could do the same thing to banks or pharmaceuticals. so i think that we have to be very careful because once any of this is allowed, i think is this

a lot of noise but the stocks don't reflect it. and that is the interesting part i think when you see the stock reflect it, that is when investors should be more wary. all right. coming up, we'll continue this conversation president biden calling out big profits, big oil companies >> it is time for these companies to smeet their responsibilities, give the american people a break and still do very well >> we'll speak with national economic council director brian esabt is idee outhn a few minutes. stay tuned wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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welcome back futures up 236 points now on the dow. a little less than 1%. s&p is up 1% and nasdaq which has been weaker of the averages, sort of let us down and sort of had less of a rebound than the old economy dow stocks, up 1.4%, 1.37% and in china,en confirmed reports on social media that policymakers were exploring ways to gradually exit the zero covid policy. hang seng up more than 5% and check out some of the big chinese tech companies, casino

companies. chinese vaccine companies also and in the next few days we'll get earnings from qualcomm and starbucks, federal reserve interest rate decision, a jobs report, oh, and then the midterms all of this lining up in the next week and a half or so joining us to talk about the market implications is lee cooperman, chairman and ceo of the omega family office. and we always enjoy talking with you, always enjoy getting your thoughts for a long time you haven't like this had market. i think the term you've used is being a fully invested bear because you kind of had to be here but with stocks down, with the fed decision rate looming, where do you think you stand right now? how do you feel about things >> i think we're in a rallying mote seasonally. but i still have a question for you, and my question is underpinned by the idea that i think that the combination of

fed tighttightening, strong dol price of oil will create a recession in the second half of 2023, the market generally drops around 35% from the peak in response to a recession. so i find many things to do, but i really don't like the s&p that much and i think i used the analogy six months ago, i talked about the pharaoh who had ainterpreteh and they have they would have seven fat years. i got my mba in '67. a long time ago. and i had a six month old child, no money in the bank and student loan to repay, and they were not forgiving student loans at that time and i couldn'tkocouldn't a vacation so i went to goldman the next day and started my career.

and dow roughly 1,000 in 1982. i'm not making 15 year forecasts, but i believe that the actions of individual stocks, not the averages and i would advise people to go out and get a good quality money manager who can go both ways i mean long and short. i don't think that the averages are going anywhere but i believe that there are a lot of cheap individual stocks around >> does it make you nervous when you see a rally that we've seen that stocks are coming back up, but is it a temporary situation? >> well, i'm nervous about everything, but no, since i'm exposed and i'm long, i benefit from arising market. and i'm not a big short seller i've never done that too well. i'm a value stock picker and i'm finding plenty of value in the market what worries me is i have 22% in energy, up slightly on the year which i think is a big

accomplishment i'm told, but, you know, a year ago when i was overweight energy, very few people like it and now i listen to your program and everybody talks about energy on the plus side so worried that i have a lot of company, but they still seem cheap. three times cash flow, you generally -- if something happens, that is good and you make money so for example, i think it will be poor earnings today and tomorrow i have big positions on ma paramount resources. it is up a lot, but i think that they have raise the dividend 20%, 30% next couple days. he have a goal of $31 a barrel roughly. and they are growing production double digits. i think that they will announce a buyback afternoon round 10% oe company. so i can't find anything wrong with that.

and ceo family owned, so they have a vested interest in doing the right things so i think that there are things that you can be doing in a ma market biggest position is a bond, i've been dead wrong, but i think that i'll be right at the end. 15% bonds trading around 42. and i think that they will mature november 1 of next year so i'm finding a lot of things do we have a decent sized position. and so i have certain criteria i'm looking for. and if i could find stocks to fit that criteria, you know, one thing i'd be critical of the television programs, you tend to think about the market being homogenous the market is very hetero genius there are some that are very cheap and some that are very expensive. all these would be-faangs down

830%, 90%. they are losing money. i could buy a lot of things that earn good money. >> first of all if you are nervous about everybody liking energy stocks right now and it is 22% of what you hold are energy companies at this point, are there any that you are considering selling, any that you would not add further to your position, or you just don't like that other people are sitting up andnoticing and the stocks have run up >> we're talking about being nervous. no, i'm not selling. if the margin trimmed a little bit here and there, you know, i had a very big position in devit energy and we trimmed a bit. and i'm liking to add to paramount. so trading at the edges. we've done very little that is new or different we're having a flat year which i think i'm told an accomplishment i like a lot of things

i think that we're heading towards a recession. i think that labor seems to be the upper happened we have terrible leadership out of washington. this idea of a windfall profits tax, we need to send president biden to school to learn more about economics. and i voted for him. more a vote against donald trump than a strong endorsement for the president. but he is doing so many things that are just obviously all done to try to improve the election outcome in november. you know, the marijuana relaxation, the student loan forgiveness, he is not going to get a windfall profits tax in, no way that it will pass congress so he is making proposals designed to get votes and make no economic sense. so that bothers me and i think -- i had lunch with a guy a few days ago, and he brought a house in bow ca raton

three years ago for $3 million and worth about $2 million now financed it with 3% mortgage he can't sell that house anytime soon you sell it for $2 million, you probably buy something for $2.5 million and today's mortgage close to 7%. and so we've pulled forward demand because of very inappropriate fiscal monetary policies and ultimately the price will be paid i discussed this before on your program, you know, coming out of the revolutionary war in 1776, we had a fair man debt and hamilton paid it off and so from no debt in the 1800 area, went to $20 trillion debt in 2017. and less than five years we've gone from 20 trillion to $32 trillion that is debt that has to be serviced it will take away from the growth of the economy. so i think that we're probably facing a continued high

inflation, higher interest rates. i don't think the fed or i have any idea where interest rates s have go to curb the economy. so probably higher taxes this is going to restrain the market so i think that we're in store for a long period of low returns and i'm looking to buy weak, not strength >> you've been a long time advocate of buybacks i'm curious how you think about buybacks especially among energy companies right now given the need for more oil and the incentive system that we have or don't have, we were talking this morning about bp announcing their earnings, of course debates about windfall taxes and all that they of course are pursuing a big buyback program. would you prefer that they buyback stock, would you prefer that they dividend it out, or would you prefer that they reinvest it either in more drilling or perhaps in clean

tech, in clean energy? how do you think about that? >> well, i don't hook that up to just energy companies. i think the stupidity of our policies is the fact that they are left to carry interest in the favorable tax treatment and they put a tax on buybacks i want to invest in management that knows what they are doing smartest guy i ever dealt with who developed my interest in buybacks was dr. henry singleton, retired 90% of his stock and in 1992, the mythical greek god that flew too close to the sun and fell to earth. highly critical of his buybacks. >> i apologize for interrupting. the issue is productive use of cash, which is to say is it more -- >> are you a capitalist?

i'm i'm. >> i'm asking from a social perspective do we need more oil or do we need to get to a cleaner energy world faster, one of the two you would want to put as much of that money investing in that money in either of those two things, which by the way might be at odds but that is what they are. and the question is between those two options, and buybacks, where should buybacks land >> buybacks make sense if you are buying something that is undervalued. if you are not buying something undervalued, you are wasting money. so if the returns on investing and drilling are higher than in buying back the stock, they should do drilling but you have an administration that is threatening to put the industry out of business so why would he expect them to drill more share hold did heholders want t

their pocket it will resolve itself out i bought a lot of paramount at much lower prices and i was thinking of taking a profit. i had breakfast with the ceo and when i went through the numbers went him, i added to my position so i look at each name one at a time because loot ofa lot of buyback are foolish because they are looking to appeal to wall street there is no easy answer to your question long term no question the oil industry is going to have much reduce d growth and shrink in size but like i said, you are buying these things at three times cash flow and they have all raised dividends to a point where they are yields anywhere between 5% to 10% and they look very cheap. and your previous guest this morning, i caught the tail end of the interview, said electric vehicles would be 10% of his fleet in california and that means 90% is nonelectric

so let's say that doubles next five years, 20%, still growth and demand >> one thing to point out. so the direct quote from president biden, the candidate, was i'm going to make it so there is no ability for the oil industry to continue to drill, period so you've got all these investors in companies that are risking capital do a certain thing and he basically told you don't risk your capital to drill. so that is why they are doing buybacks he told them give it back to shareholder, don't drill and now that we're in this mess that we're in because of all those things, now they are turning around and pretending that they are not on record as having said any of the previous things i'm going to put fossil fuel business out of business and now they are saying why aren't you drilling it is insane >> and is that the leadership

that we have >> who is running things i don't even think -- just to be perfectly honest, i don't think that this is the president i don't know who it is is it ron klain? who comes up with these things >> he is being influenced by the progressives on the left i guess. look, i have a very negative view of what is going on politically. i try to have a little sense of humor or, you know in 1776, nation's population was 2.5 million people women did not have the right to vote and you had slaves that didn't vote so it was probably a little over a million people that voted. and at that time we found washington, we found jefferson, we found hamilton, we found madison. we now have a nation of 30 million people and we found trump and biden. i don't have to say anything more than that it is very sad what is going on. we have leadership in a crisis and we're not living in a crisis right now. and we'll have a crisis. look what happened in the uk it could happen here we've had a bunch sf running

around the monetary policy and kept interest rates low, and it has led to a lot of inappropriate behavior you know, it will sweat itself out. we'll have leadership when we have the next crisis but the stock market doesn't discount a crisis. so i assume we'll go lower in the averages and hopefully i'm picking stocks that do okay. in a bear market, he who loses least wins so i'm rooting for an up market, but i think that we're in a trading range right now, we're in a seasonally strong period, maybe we can get to 4100, 4200, but i don't think that the final low has been hit. i think the question we have to ask ourselves, what is the appropriate multiple for the s&p 500. i think somewhere between 15 and 17 times and if we have a recession, earnings will be less than 200 so you can get to the low 3,000s

sometime next year >> lee, thank you. hope to see you again soon >> my pleasure, nice being with you. stay healthy >> you too coming up, cramer's first take on the trading day ahead. and then is the white house about to go after big oil profits? we'll ask brian deese. ♪♪ ♪♪ ♪♪ be ready for any market with a liquid etf. get in and out with dia.

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their own terms. start your journey with a free trial today. a lot to talk about with jim cramer does biden -- the question about attacks on windfall tax on oil companies? >> first i thought your uber interview was amazing. because what happened is dara he

said in the spring, listen, we're done there is a pivot, we have to start making money and he showed you what can be done i think that it is a lesson to all tech companies i think that this man is a visionary. he understands that the market has changed. and there is a lot of other people who don't so it was an intent interview. and i think a lot of people out in the silicon valley realize that maybe we're done unless we do what he did i mean that. because you can do what you want if he wants to raise cash, whatever he wants, because he is rigorous help the johnson & johnson was necessary in order to be able to make it so that the med tech portion of the new company grows faster it won't immediately because they make so much money off their cash but if you can get the go from ten to aeight and then the is split looks better people don't understand the deal, but that is fine >> and the premium >> premium is back to where it

once was i think what really matters is what you were getting with the split of j&j i was disappointed med tech wasn't growing faster and that disappointment is over as far as oil, what does the president want, does he want tax refiners, tax the oil companies? the oil companies are not all the same some oil companies produce does he want to tax the gas stations does he want to mimic jimmy carter which by the way ended badly for carter because there wasn't really a way to do it. so when i look at occidental, how much did they do, how much is exxon, how much is -- what does pioneer pay i think the president needs to sit down with them he's refused do that as i understand it. make sit down with the ceos and say i think that you need to be taxed. but let's say amazon put a huge amount of money into make that company a great company and then it goes to 100 should they now sell it at 75

below the market price because the president says it? i'm not speaking for the oil companies, i'm speaking for the marketplace. and he hasn't really thought it through yet. >> we'll get to ask all those questions when we speak with brian deese. >> none better none better. >> and so we'll see you in a couple minutes >> hands down, none better than brian. wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq another busy day? yeah... oh. of course - you're a cio in 2022. but you're ready.

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>> well, i'm glad you're in the pharmaceutical industry. it led to too many companies and not good for the public at whole, which is why we fought for and enacted to negotiate prescription drug prices, which will create more competition going forward and make sure not only medicare but consumers in the private market get a better deal and there's more actual competition in that market the price of oil right now is a unique situation that you can tie back to geopolitical events. >> you could say the same about drugs right now.

>> i thought you said too much profits. i hear that and i don't know i go ahh i know i sound like a crazy dammist. we appreciate having you on. we're out of time. but thank you. >> thank you >> as always make sure you join us. it's time to go. markets are up join us tomorrow "squawk on the street" is next good tuesday morning i'm carl with jim and david faber. welcome to november. starting out green amid a lot of news about china planning to reopen 30 billion in m&a. bonds are rally all around the world. we begin with the new month for stocks futures point to a higher open new tea leaves from the fed and the rumors of china covi