musk traded jobs with aoc on the platform plus, stocks in hong kong retreating jerk after chinese officials reaffirm commitment to the zero covid policy it is thursday, november 3rd, 2022 the morning afternoon. "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. that's right this is the morning after. look at the u.s. equities futures. you will see red arrows. you are not seeing a turn around

from the declines yesterday. dow futures down 30 points sap down 7 nasdaq down 28 that is after the huge swing yesterday for stocks the dow went through the crazy up rally and down cycle after the fed interest rate decision we will have more on that in a moment it was a move of over 1,000 points during the course of the day for the dow. it was worse for the s&p and nasdaq which ended yesterday on the percentage basis down 2.5% and 3% respectively. bigger declines than the dow treasury yields are picking up this morning this is where you see the pressure if the fed is going to go higher than they originally thought or stay for longer, you see green on the yields when you look at treasuries 10-year treasury almost at 4%. the 2-year treasury is above 4.7%

chinese health authority reiterated the support for the zero covid policy. crushing rumors that beijing is creating a committee to crush the strategy as a result, stocks in hong kong dropping sharply after two days of rallying on the rumors becky mentioned the fed reserve whipsawing markets yesterday with the dovish statement, but followed by the hawkish press conference from chairman jay powell. we have steve liesman with the details. a man who was not surprised. steve. >> no, i warned against this false hope there i hoped for a pause or pivot, andrew, which lived 30 minutes the fed statement at 2:00 p.m. offered the hope that the fed woul would be focused on the lags of monetary policy. that ignited the 30-minute stock

market rally chairman jay powell stepped up to the podium at 2:30 and threw icy cold water on the hope >> it is very premature to think about pausing. people when they hear lag, they think about pausing it is premature to think about pausing our rate hike. >> powell said a pause was a way off and the recent economic data suggests the peak or terminal rate will need to be higher than the fed thought in september the market then followed the chairman's guidance and continues to see a 4.4 right hike in the year end now a new high of 5.15%. that is over 5 some easing is expected by year end with the rate following to 4.88 that was the prior terminal

rate the starkest contrast to a dovish statement and followed by the press conference where the fed are chairman was hawkish the simple answer is stepping down 50 rather than 75 which was suggested. the chair wanted to assure that the markets didn't mistake slower for lower >> thank you, steve liesman. this is like groundhog day the market thinks the world is great. the equity markets somehow you believe jay powell is not going to do what he says he is going to do and then jay powell does what he says he is going to do and then you say oh, my gosh. >> you say the one thing the fed doesn't want they want the markets to do

their job. how warped it is it was up 300 in the old days, the fed would be careful they would be sensitive about things to hurt the market. now it is up 300 does he go up 300? it goes 800-point swing. i don't think he did it. >> i think -- steve, correct me -- i think he is looking at pepsi with 20% margins in the quarter. he is looking at chipotle with 26% margins ns in the quarter ad saying there is something wrong here that's the problem >> steve, we'll talk to roger. is steve still here? >> yes >> i want to talk toi roger ferguson if you are sick and you want antibiotics, you knock it out quickly. if you are going a trip.

1,000 miles to go and tyou are going 80 miles an hour, why slow down to 40 they are leaving open the possibility of being data dependent by going down to 50 to see if there is a lag effect they don't want people to get ahead of themselves. they pick a new terminal rate which i don't have a lot of confidence they know, really, exactly what the terminal rate will be. they totally missed and they are behind the curve with the transitory stuff enthus how can they know? you look at inflation and look at the forecast and say we need to be above that maybe there is a method to the madness. i think they will play it by ear, but they don't want us to know they are playing it by ear. >> i think they're playing it by ear, for sure. joe, let's be clear. you don't have the number 40 on your speed dial in your car? let's be clear about that.

>> that's when i'm shifting into second exactly. >> that's when you shift into second i think there are a couple of explanations for what is going on one is the idea that they wanted to acknowledge this business that has been out there which is there are lags to monetary policy that may have been a stop to the political goings on right now. the letters from elizabeth warren and other democrats as well there may be members of the committee in order to vote for the rate hike, wanted to have that in there and that was the price for powell putting that in there to get a unified committee. there could be something going on there you are right. the fed does not know how far it has to go. what powell said yesterday was a for sure data dependant. if you look at it since the september meeting, we need to go hi higher that moved the goal post joe, what is the least you could

give me? that is some sense of where you are going. powell took that away from the market yesterday it made it harder to forecast when is it going to be okay to go back in to stocks and not get my head handed to me powell took that away. we think on balance, if we had to put our forecast together today, it would be higher than the 4.6% they had in the september meeting. it makes it difficult to figure out they have not seen it in the data and he was sort of also responding forcefully to guys like jeremy segel saying you are not looking at the data. powell said we are aware we don't see a reason to stop. >> i heard somebody describe it as yesterday jay powell ripped the rug out from under the markets. this was a case of tough love. markets were seeing what they wanted to see ahead of time and he dropped a dose of reality on them >> i agree with that, becky.

i have been consternation in the last couple months where there was a bubbling hope up i get it everybody wants things to get back to a nice gradually rising market or increasing market. we just don't have the data to say inflation is cooling and the fed is in front of us. we saw the jolts numbers and we still have a strong job market powell made clear, becky, he is super focused on the job market. we will get some job numbers tomorrow that will be north of 200,000. he is not seeing that. essentially the fed is saying they have to play the hand dealt them that hand is where supply is not meeting demand. >> i'm trying to look at my soul i feel myself nodding. you talk about elizabeth warren. i feel myself nodding. that is an uncomfortable thing

for me i feel more like arthur burns than a volcker right now i don't know why i don't know maybe i like markets that are headed up or something i don't think we need a volcker this time. >> i know you are talking about -- >> can i respond to joe, quickly, andrew? joe, i'm with you in the following sense. i refuse deep down to give up the belief we still have this low inflation environment. remember the one we had for so many years global supply chain. >> amazon. int internet >> all that stuff. >> globalization. >> the idea where you have to give that up and say we have a deglobalized world or the idea that andrew was alluding to with the high profits and ability of companies to continue to pass

along or maintain high profit margin >> that and home equity. >> we keep talking about the employment picture and how powell is looking at that and looking at wage gains and the like it appears every time we have, you know, quarterly earnings report except the advertising guys, they pass it no, they pass it on and then some. >> where is sternlicht >> how about mike wilson from morgan stanley he was bullish >> no recession? >> no. technical only looking at the support level he thinks things are going to be harder from here and he is still back into the bearish mode he said it is tougher. if you were listening to the conference calls for earnings from the companies cfos are reluctant to put

numbers on things. >> they are very worried not because the current business >> that's true >> almost ironically, every conversation we had with somebody has been you know what my business is doing spectacularly, but i'm scared what will happen later. >> you prepare and you see layoffs. you see tightening of the belt and advertising slashed. >> we will have more unemployment probably come the spring the truth is -- >> it will not last forever. i don't need to worry about the grocery bills. i don't. i see them and i'm in shock. i do it myself $6 $7 bacon, $11. >> you are channelling every george bush today. >> not only do i not have to go to the checkout person, but

everything is -- i just think -- >> the greedy corporations are ripping you off and creating inflation? >> there is a point where consumers scrape until there isn't. they give you four chips instead of six chips it's the same price. >> or get discounts. >> it is good until it isn't the fed can keep raising until it can't and it can come on us quickly. >> the fear factor is what we deal with in the market >> people eat worms. >> steve, thank you. we will check in later with him. blackrock is responding to critics pushing back on the firm's esg initiatives we have details from the new letter from larry fink. a programming note don't miss our special coverage at 8:00 p.m. business on the ballot we will cover all of the business topics at play in the midterms and how the results could impact your money.

this is "squawk at night." we're looking forward to it. iss quk x"n bc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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blackrock is responding to critics in the investment comm community. we have leslie picker with the latest on that leslie >> good morning, becky the voter choice program they are a year into the program and something that chairman and ceo larry fink says is part of the revolution in hair sharehol democracy. he is providing an update in a letter that we obtained. the goal was to give blackrock clients and state pension funds

and endowment to vote on behalf of the stock they hold in each index. voting decisions, including matters as board composition and executive pay and disclosures ra around esg was outsourced to blackrock's stewardship team 25% of the $1.8 trillion in eligible assets are enrolled and the number of clients interested has doubled this year. this is the visible response to creiticism that they have becom too powerful and has an esg oriented agenda. republican state controlled treasurers have pulled from their state funds and efforts run counter to local politics

and fiduciary duties pl blackrock is committed to choice and delivering the best outcomes becky. >> this has been so interesting. obviously this is something blackrock did a year ago you are now seeing the other big money managers get into the game, too. vanguard put out a notice how it will look at some program for retail investors you had schwab saying this a few weeks ago talking about this it's a very difficult proposition. it seems like it should be straight forward if you supposedly own shares, you should get to vote in reality, retail investors, us, if you have a mutual opportunity or etf, you zown shares in that and not the underlying stock that is where it get complicated. >> and as fink says in the letter, things have to change to make it ubiquitous technology has to be altered and

regulations have to be on board. why with e are seeing 25% of eligible assets and institutional clients sign up for this is over the subset that blackrock owns they have to deal with regulation and technology. there has to be somewhat of a change of the ecosystem to see this become more popular and become more ubiquitous he is confident that ultimately that is the next phase of shareholder democracy. >> leslie, let me ask you that philos philosophically, it is hard to disagree with it the question is in practice whether you think whether retail investors or individual investors or pension funds are going to take the time not only to vote and you can look at what

has happened to our democracy in terms of how many people vote or not in any given election. you are voting not just once, but often times on 10 or 12 issues per company if you happen to own an s&p 500 index and asked to opine and vote on ten issues for 500 companies -- >> 498 >> becky is correcting us here 498. it doesn't work in practice. >> right that's why proxy advisory firms and shareholder services have the business model which is to advise retail investors. >> outsourcing the voting. >> outsource the research and voting this is costly to look up to see what your vote stands for in the

annual meetings. it is fair to be skeptical to see how much of a force these retail investors are in terms of this changing the game >> the thing i would say as a retail investor, i doubt you care there are three to five votes in a proxy season the rest you might give your vote they are not allowing you to vote on one issue by one issue, but do the want to vote for management or somebody who votes with this policy set it is impossible at this point to allow everybody to open up. as a retail investor, i would like to vote my shares or vote my ownership stake in any of this or representation in any of this it would probably be 3 to 5 votes i care about >> the other ones you don't care about, you don't vote. i don't want larry fink deciding how i would vote

i would not buy an etf from blackrock. the last person i want voting in appropr proxy. if i want to be clueless and not engaged, that's my right if i don't want to vote, i won't vote don't think you can vote for me with whatever crazy ideas you can have in your view of the world. >> look, that's where it gets complicated. do you want to vote nothing? have a passive stake >> i'll vote tuesday. >> vote with management. >> that's what they are offering you vote with management. >> lesser of two evils >> it is a complicated story it has been something evolving over the last 15 years as the banks were heavily regulated we saw huge build up of capital in the areas >> i think it is a huge opportunity actually for businesses to develop around voting the question is who will pay for

those businesses who will do it and whether they get political? you talk about it. i could see two or three companies a year become the strange meme-ish stocks where the votes are not about the business model, but about something totally else that in its own way could be considered scary >> i like picker ball. >>s leslie picker ball >> it is taking the world by storm. >> larry hints at that in the letter to the ceos it will get more complicated democracy is messy especially in the board room. >> it will be 100 times worse and harder to actually effectively campaign your constituents that's what we're talking about here. coming up on the other side of the break, the latest headlines from twitter elon musk with potential layoffs

and trading shots last night with aoc as we head to break, check out shares of roku after sales of two businesses, advertising and streaming hardware will fall in the fourth quarter anthony wood saying advertisers e yi t companies are reducing advertising we're back right after this. thanks to avalara we can calculate sales tax on almost anything, anywhere, automatically. avalarahhhhh. what if tax rates change? ahhhhhh. filing sales tax returns? ahhhhhh. managing exemption certificates?

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visit findyourindependentadvisor.com twitter employees are expecting a 50% work force reduction from elon musk that would amount to 3,700 employees cut. that is according to the bloomberg report that says musk is expecting to require employees who were authorized to work remotely to report to offices. he has done that to all of his companies. he is a believer you have to be in the workplace if you are working. separately, elon musk met with heads of several rights groups on tuesday

the leaders pruessured musk to g give cools to combat misinformation here is what jonathon told us after musk finalized twitter acquisition. >> wild conspiracy theories and platforms awash with information. i don't think social media platforms should be play things of billionaires. elon musk has the right. i'm a capitalist what there is stopping is slander on the platform. >> and the twitter tiff with musk and alexandria ocasio-cortez. a billionaire trying to sell people on free speech is an $8 a

month subscription plan. musk said your feedback is appreciated, now pay $8. she called him a union buster with an ego problem. notifications are not working and she was informed that she had gottenunder a certain billi billionaire's skin a lot of back and forth over the $8 fee he was comparing it to $8 a day people spend on a frappachino. and $8 for 30 days of blue check tweeting it is fast ncinating to see if people pay. >> it is nice to have it for free maybe we got used to that. am i in denial about when i

really do like twitter >> yes that's 100%. >> you are addicted. >> kind of a -- what >> addicted. >> okay. just be careful. enunciate here >> what did you hear we all hear what we want to hear >> i certainly -- people have said that to me many times. >> you are addicted to twitter >> i am addicted coming up, former fed chair roger ferguson weighs in on chair powell's hawkish comments. what did faber say that one time >> i have a little -- never mind he had a cut on his finger >> announcer: executive edge is

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people heard that. that's what i heard. good morning welcome back to "squawk box" l live from the nasdaq market site in times square.

we closed down 500 yesterday add another 130 to that after the fed delivered the fourth straight 75 basis point hike in a row and pointed to a pivot >> it is premature to think about pausing. people when they hear lag, they think about a pause. it is very premature to think about or talking about pausing our rate hike. we have a ways to go our policy, we need ongoing rate hikes to get to that level of sufficiently restrictive we don't of course, we don't know where that is. we have a sense. >> joining us now is former fed vice chairman roger ferguson he is the former ceo of tiaa and a cnbc contributor roger, do you think -- i think the fed chairman do think and plan out what they will say. one word can make a difference

they are very careful. do you think before the speech, chair powell was aware of where the market was trading and is it counter productive in his mind if the market gets ahead of itself for what the fed's efforts are to cool things down? in the past, fed chairman would not want an 800 drop in the dow. that is something they would avoid n. this case, do you think he was okay with that and was it mission accomplished >> first, good morning i think in fact what he was trying to do and succeeded in doing was keeping financial conditions relatively tight. we've talked about this several times in the past. in that regard, you know, the drop in the market was probably, you know, quite consistent with keeping financial conditions tight and not unexpected and probably not unwelcomed by the fed. you know, recognized as i said several times part of the challenge here is the fed sees

the certain reality and markets have a certain hope and reality has to triumph over the hope that is what happened yesterday. >> roger, do you agree if you are headed to a terminal rate and is there a reason to moderate the increases instead of getting there more quickly -- if you are headed there with antibiotic, for lack of a better analogy and you are sick you don't have half doses. you want to knock it out with a full dose of the antibiotic. if you are going on a trip, you want to get there quickly. are there financial imbalances that can be avoided by going a little bit more slowly or is he really being data dependent and doesn't want to tell us? >> well, three parts to the answer first, recognize how quickly they have gone

unprecedented four 75 basis point p moves. it is not they started off at a slow pace. they moved quickly secondly, as he said in the statement, that means there is a fair amount of tightening in the system policy works with long and variable lags as he repeated put those two things together and i think it is appropriate to suggest we are still going on a journey. we may go more slowly because we don't know how far we have left to go and we don't know what the impa mpactfu fully given all those things, it is important to have the conversation and indeed slow the pace at which we are moving. he said two other things that are very important one is now is how high and he indicated the terminal rate is higher secondly, how long he is continuing to suggest they

will stay longer than expected. >> you said it well and he said it well. it is the second part that was done for a reason and i'm not really sure that anybody knows what the terminal rate is because we don't know how quickly inflation will come down terminal rate is based on inflation. if they misjudged inflation and used the transitory word for too long, i don't have a lot of fif faith that the terminal rate is higher they said that just to make sure the market didn't take it as a pause. it is like they arbitrarily raised the terminal rate to make sure the market didn't get ahead of itself. >> i think it is not quite that nefarious, joe first, no one knows where they will end you may recall i said a few times on the show was four/six

he joked -- chairman powell suggested that yesterday you are right. where they end depends on incoming data. the last cpi read was very hot the jolts read was suggesting labor markets are still tight. the september 4/6 is too low something with the 5 handle. we won't know until we get there. i do think the message of we move very quickly. things of monetary policy works inn lags. we will slow the pace. pace is less important now than terminal rate and how long you stay there he is talking about a rubik's cube of getting it all aligned. >> roger, where do you think the

corporate profits piece as we look at the earnings report with pepsi and profits of 20% and chipotle at 26%. you say to yourself, they are passing on the costs, but passing on that and then so. >> look, i think there is evidence and i presented that with surveys and earnings which suggest things may be downshifting in certain sector, but there are sectors of strength consumers are doing quite well and i do know ceos are still talking about inflation in the pipeline and planning to pass along as best they can i think some of the anecdotal evidence plays to that point economy is strong. inflation still in the pipeline. inflation still high some of the earnings releases have also shown monetary policy does seem to be working. we are clearly seeing the slowing in housing markets for example. and others have come in costar softer.

i think that creates the le legitimacy we are starting to see early signs of policies working. it is okay to keep moving forward, but maybe at a slower pace and let's focus on where we end. we don't know that yet >> we don't. roger, thank you terminal rate. let's hope it is not terminal. for the markets and for our 401(k)s and the economy and big pict picture. he is more volcker than burns. i'm feeling burnsy montgomery burns >> my pleasure thank you. when we come back, we have stocks to watch including the latest bet from carl icahn. and don't miss our interview with billionaire investor sam zell "squawk box" will be right back.

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has taken a stake in crown holdings and urging it to sell non-core units icahn has a stake of $700 million making him the second largest shareholder. crown has a market value of $800 billion. and qualcomm fell after the earnings were 13 cents a share revenue grew 22% the guidance came in below what the street was looking for the company expects the handset volumings to decline by double digits qualcomm cited the rap id deterioration in demand. the company said it implemented a hiring freeze at the beginning of the quarter that stock off 8.3%.

qualcomm ceo will be on "mad money with jim cramer" tonight at 6:00 p.m. and shares of etsy report the earnings of 58 cents a share. that was better than 36 cents by the street revenue boosted by the hike in the transaction fee that etsy charges sellers. fourth quarter guidance came in higher than the street was expecting. that stock up 10.8%. coming up, the attorney general for washington d.c. is view suing kroger and albertsons over the proposed merger he will explain next programming note don't miss our coverage "business on the ballot. we will discuss the results and how it impacting your money. that is tuesday night at 8:00 p.m. eastern time. we'll bei right back after this

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i want to bring you up to speed on a story we brought you

first last week. the attorney general for washington, d.c., is now suing grocery chains albertsons and kroger in federal court. a $4 billion payout by albertsons to shareholders, the attorney general wants the company to press pause on until a review is complete the ag says the sum will limit albertsons ability to compete. it's coming after a group of bipartisanattorneys general wrote a letter to albertsons with the same request. good morning to you. you had spelled out what you wanted them to do. they haven't complied and now you've gone to court to do it. just so we bring viewers back up to speed on all of this, what's your base case here? are you seeking to block the deal or simply seeking to

evaluate the deal? >> thank you, andrew it's good to see you i too was up last night watching great baseball the reason why we sued, and you're right in your recital of the case we asked albertsons to pause its special cash dividend which i like to refer to as a cash grab of $4 billion so that the announced merger could be fully e ver evaluated and reviewed that process takes about a year. in connection with the merger, albertsons also made a special dividend to be issued on november 7 which is next monday, $4 billion that $4 billion out of albertsons is going to impair the ability of that company to compete while the merger is being reviewed all we want is the status quo to remain to allow the reviewers of the merger to review it while

albertson continues to compete in the essential industry that is food grocers. >> but take the -- go 30,000 feet for a second. >> sure. >> which is ultimately, it sounds like you are -- i know you're going to want to say i'm never predisposed to anything because you want to look at the fact but it sounds like you're predisposed to thinking this is a merger worth challenging. >> it's not true that we have prejudged this we in the dc office requested documents from albertsons just about ten days ago and, of course, it's going to take a long time, generally speaking, these mergers take about a year to be reviewed. i am not prejudging it at all. what i am judging is that $4 billion out of albertson is going to impair its ability to compete. it could possibly hurt consumers

and workers. $4 billion in cash in a down economy means albertsons will likely not be able to access the capital markets for money. in fact, in the merger agreement, it precludes albertsons from doing that not many companies can survive and compete when $4 billion is taken out of them immediately. we're going to stop that can i make one point, andrew just to talk about how outrageous and extraordinary this cash grab is, the special dividend is 57 times, 57 times the amount of albertsons' dividends over the past several years. it's a cash grab that we believe a court will stop. >> what has the company's response been to date? >> it's really interesting the company has indicated that its special dividend was not in connection with the merger i'm just going to show you their

press release announcing the merger here's what it says, albertsons companies announces special dividend in connection with signing of merger agreement. they didn't get their ducks in order. the law will and that's why we're in federal court seeking a stop of a cash grab of $4 billion >> i don't know if you want to get into the minds of the -- of the management at albertsons and kroger how much do you think the plan to pay this money out is, in fact, a way of forcing the deal through? >> you know, you're right, andrew i love in an intent area where evidence usually establishes intent we've not yet had a time to absorb all the evidence. but there is no doubt that taking $4 billion out -- by the way, 1.5 of that 4 billion is coming out of a revolving credit line taking that out is going to weaken albertson and it may make

it so that albertson believes that not only do they benefit the shareholders from taking the 4 billion out, but the company will be so depleted, it will have to be permitted to merge. that's called jumping the gun. and the court, i believe, is going to scrutinize this and i think that we win. l would love to come back on the show after that. >> we're going to keep our eyes on all of this it's a fascinating transaction and now a fascinating case thanks for waking up early with us this morning. >> you got it, andrew. coming up, we're going to get you up to speed on three companies that just reported in the last half-hour those numbers are straight ahead. i guess that's the three we're talking about. later, don't miss sam zell live on the "squawk" set.

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good morning fed chair powell pledging to stomp out inflation, raising expectations for the central bank's terminal rate, the end rate, and sending stocks lower

this morning, the futures are weak ahead of the open as investors digest powell's comments we're going to get you up to speed on what's moving the midterms and your money. a closer look at how november 8th could change the course of the nation's energy policy the second hour of "squawk box" begins right now. good morning welcome back to "squawk box" right here on cnbc we're live from the nasdaq site at times square. i'm andrew ross sorkin along with joe kernen and becky quick. take a look sat futures this h hour the dow off 154 points this morning. the s&p 500 off about 22 1/2 points show you treasury yields that's what has i think

everybody refocused. the ten year at 4.202. the two-year at 4.78 there royal, when you think about wti crude, you can buy it by the barrel $88.48 crypto which has been our barometer risk on, risk off, it's kind of holding up. it's $20,256. >> the federal reserve rips on markets yesterday. next up is the bank of england rate decision and senior economics reporter steve liesman is back with us. have they already pivoted, steve? >> who the bank of england >> yeah. >> no -- it depends on what you mean by pivot. >> they never got started. they needed to be on board -- they weren't synchronized that's part of the problem, right, but they got other problems. >> that's right. they're expected to join the 75 club in just about an hour, joe,

and we have global bond yields on the march this comes the day after the fed hiked by 75 basis points for the fourth time and jay powell suggesting the peak funds rate may be higher than the fed forecasted in september. you have that bank of england report coming in about an hour, expected to be 75 basis points they did 50 on the last time so they're pivoting the other way, i guess you could pivot both ways. the u.s. two-year trading 4.72 right now. it had been as high as 4.77. this is one of the highest levels we've seen since '07. taking account for a funds rate that are going to top 5% at its peak in the spring or summer and likely stay there for awhile while the fed statement gave the market hope that the fed might pause or pivot by talking about lags and concerned about that, powell said that the data suggested the fed still had a ways to go and recent data suggested the fed may need to go

higher than forecast in september. here's what the market looks like the fed -- it followed the chairman's advice or guidance. 4.4 by year end, but it now prices that peak rate, june or may. 5.16 but that 4.88 level, that was the former peak rate as markets now seem to be digesting the idea the fed is going to hike and hold so the fed may indeed slow the pace of rate hikes, that was the takeaway from yesterday's guidance, from 75 to 50. but markets should not mistake slower for lower in fact, the fed set to go higher for longer, joe >> all right i guess we're going to keep it short. we got other things to do, places to go, people to see, thanks, steve. >> see you in a bit. >> in the meantime, let's get to dom chu. here's a look at some of the premarket movers.

>> marriott is down by 1.5%. it's thin premarket trading activity for right now the hotel giant reporting mixed results, profits narrowly topped analysts estimates, but revenues narrowly missed analysts marriott did say that a key metric has recovered from levels in 2019 which shows there's continued momentum in travel demand we're watching forany notable premarket activity right now things are just starting to get going in terms of trading. right now unchanged, but the biotech company is seeing very thin trading volume. it did earlier this morning report quarterly profits that topped consensus estimates, helped along by growth in two key drug franchises. regeneron highlighted progress on some of its cancer-related programs watch those shares when they get

going. and a check on restaurant brands it was up pretty decently, but, again, very thin volume. after the parent company like burger king and popeyes reported better than expected profits and revenues sales grew led by a 14% system-wide sales game at burger king restaurant brands said that digital sales grew by 26% over the same period last year and if those digital sales now account for roughly a third of all, becky, system-wide sales keep an eye on restaurant brands and regeneron. they're getting going right now. we'll see if volume picks up the next hour or so. >> i choose my places here, dom. you remember when the only other no-hitter was in world series history -- >> yankees >> do you remember what year that was >> was it '56? it was before i was born >> well done, dom. i kind of cheated, though --

>> the year i was born. >> you can't have been born in 1956 >> that was huge and there's only one other postseason no-hitter which also relates to me, cincinnati reds, the great roy halladay you know how long ago that was >> i don't remember exactly when that was i just think it's amazing that we went from a batting exhibition in the previous game to a complete shutdown by the same team the next game. it's been a fun series to watch. >> every game -- >> this is going to be -- people wanted new york, but this is 2-2. it's turning into a classic if it goes seven. think about it >> still going with the phillies. >> i love watching touchdowns in football when it comes to baseball, i love seeing pitchers duels

it was just amazing to watch >> the first game, the first game >> the holding your breath with every pitch, how about when there's bases loaded and there's a 3-2 count. my legs would fail me if i was the pitcher, right i mean, i would not be able to stand up i would be so nerve and the crowd, it's fun. it's great postseason is the best. >> i was just say, joe gets the cameras put on him quite a bit every year, right, at the at&t pebble beach >> do i rise to the occasion i have hurt people in stands that are directly that way it's horrible, dom it's horrible. i hate cameras i get too nervous. >> you picked the right line of work, joe. >> thank you >> okay. thanks, dom. coming up, what's at stake for energy policy in the upcoming midterm election and is what it

could mean for future energy policies in the states and around the globe before we head to the break, a quick check on the markets right now. we're in the red again this morning. dow looks like it will open off about 150 points, nasdaq off about 90 points. s&p 500 off by about 25 points we're back after this. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. ♪ ♪ ♪ ♪

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quarterly results out from co conocophillips they're reporting $3.66 a share. that was 16 cents better than had been expected. let's talk energy policy and the midterm elections. joining us for that, energy aspects founder and director of research, also capital founding partner and a cnbc contributor i don't know if he hears us. you're on camera, dude let's start with you and talk through what's happening this has been a crazy year, a crazy maybe three years to watch what's happened to the energy markets. everything we've been waiting to see with ukraine kind of playing out at this point and this potential for the eu ban coming up what happens are we prepared as a global market where do things stand?

>> i think right now confusion is the word. even today we've had people asking us, oh, does this mean even with the embargo going ahead that the price cap will allow europe to import oil and, no, the answer is no but there's a lot of confusion and there's already confusion around the u.s. spr given that president biden has basically said that it is now going to be used to influence prices rather than to mitigate supply losses there's so many moving parts right now. i really do think after the midterms and after the 5th of december, once all these kind of big events, quote/unquote, are out of the way, people will get more clarity and then you can see participation in the oil market go up right now, people are just staying on the sidelines >> when you say participation, you mean traders, investors, getting on one side or the other on this. >> yeah. long positions are very low anyways, but it's not that

people are shorting this market either on either side, people are just sitting on the sidelines because they need clarity and there's too many moving parts. you can throw in the u.s. fed as well there's too many events and an opec plus meeting as well. >> that probably sums it up the best way possible. what have we seen as the fallout from the russian situation and what do you think happens next >> well, i mean -- it's been a shot to the market -- >> john first. go ahead >> it's obviously been a shock to the market. you know, it was presented to this as a parade of horribles, really, in terms of potential for lost supply and forget about the humanitarian crisis. i don't mean to discount that. in terms of the oil market, we were worried at one time that we would lose all of russia's supply rather quickly with nowhere to make it up. and that is one thing that hasn't happened. so for all the talk of the sky is falling and, you know, 150,

$200 a barrel price targets for some folks, we still haven't lost the oil but this december 5th date is -- stands as a supply cliff potentially if they go through with it. i personally doubt that they'll ultimately go through with it fully. i think they're going to find a way to finagle it and kind of find some moral compromise there within their own minds that's the eu, that is, to keep that oil -- much of that oil on the market i will tell you, though, we're already feeling it here in the u.s. we were the first to foreclose russian supplies and they provide us with oil -- were starting to before the war, increasingly, and also, they supply a pretty important precursor product that is used to make refine fuels that is now gone for the most part. it's been a big shot to the system but we've been lucky in a lot of ways in terms of supply and the spr supplies helped cover the losses here.

>> to that long list of things that we are -- unknowns that we're waiting to see, we could probably add saudi arabia. what's your best guess at what they will do. >> we don't have a november meeting. the next meeting is on the 4th of december and that's for 2023. i think opec plus remains concerned about the health of the economy. and if that's the case, then the current policy will remain in place, at least through q-1. tends to be the softest quarter in terms of oil demand anyone with a lot of refineries in maintenance as well. and then we'll take it from there. >> and, john, the spr, as was pointed out, that's something that president biden is kind of chosen to try and influence prices with instead of just using times of emergency but that's a pllimited supply when do we get to the point where we run out or have to refill. >> i think we're reaching the point now, where the supplies have been run down to a degree

that it's concerning but like i said, it has helped and i would point out that, you know, we're up against a cartel, a group of countries producers that act in concert for their own interest against ours, against their own consumers and buyers to constrain supply it's anticompetitive it's predatory at times and i think that it helps. but, again, we've pretty much gone through as much as that as we can i think the administration has already signaled that the end days for tapping the spr are near and we'll have to see where we go from here. look, thankfully, in a way, china's economy has been damaged a lot by covid and we sort of lost them as a demand source growing demand source. and when we lose china, they're as important to the price picture as saudi arabia is on the supply side. so, again, we have been lucky so far. but we're up against it.

>> you talk about the enigma and the pieces that have to be put together the fed coming out yesterday and chairman powell making it clear, this is no time for a pause. they're going to continue to raise rates. they're going to go to a higher level than people had earlier anticipated and they're going to stay there for a long time how does that play into this because opec certainly looks at the federal reserve and tries to balance that >> yeah, and i mean, this is something opec plus has said as well, high interest rates are going to be damaging demand and, therefore, again, they need to balance the market and that's why they preempted it with a cut. emerging market as well, they feel the pressure of higher or stronger dollar, but i'd say the biggest impact has been on europe we have seen a much stronger dollars than the european currencies and that is adding to

the energy crisis in europe given already where natural gas prices are the only thing i would disagree with on the russia situation, i do think europe is going to go ahead. for europe this is an existentialist issues, what's going on in ukraine. yes, it's going to be very, very painful, but i don't see how europe is going to backtrack given how difficult it was to get everybody to even agree to this embargo to begin with so the winter is goingto be very tough and i think -- of course, opec plus are very aware of it. but the federal reserve hiking rates just adds to that. >> john, if they don't backtrack, if they go ahead -- they may want to have less pain, but just on the idea that it's hard to back down and say, okay, forget it, after you've put together this coalition and after you're trying to make such a point about invading another country on the continent if they don't, let's say, and if

the weather is pretty cold this winter, what are we talking about? what's your prediction >> well, if they don't, we'll have to see if those russian flows can go to their -- the current buyers who are china and india who have stepped up to take advantage of the situation. my feeling about the eu, though, still is that their politicians moral fortitude isn't necessarily their strong suit. there will be an off-ramp on this we're seeing fraying in the coalition. italy is already trying to back out of this whole embargo situation. we're looking at -- this is going to be -- this is the crunch we're going into the crunch right now, becky the winter, it could be horrific in terms of prices we have a tremendous diesel shortage here in the u.s., east coast as well. so it's already a problem. so you could be easily seeing heating oil prices, 7, 8, $9 a

gallon, oil prices back over a hundred at least for a short period of time, several weeks during the heart of the winter until we can see clear into what things look like for the spring and summer >> yeah, look, we think prices are going to head back to above $100 and i'll say this as well, china has been quiet and we think zero covid stays through winter but, again, right now, expecting a gradual reopening from april we are here without china today. once china comes back, that's when really things will tighten up. >> thank you, both >> okay. >> thank you. quarterly results just out a few minutes ago now from peloton, also for moderna. you can take a look at the stock in the premarket here. peloton reporting a larger than expected loss and saw revenue come in below analysts forecasts. issuing a current quarter forecast that falls short of consensus. you're looking at that stock

down now 17% in the premarket. we're sitting right now at $7.14. so the comeback story for peloton still in the making, if you will maybe i'm putting it politely. meanwhile, moderna, revenue did come in above forecast but mode cutting its full-year forecast of sales for its covid-19 vaccine. two stocks you could put in the category of pandemic darlings -- >> why high revenue by missing on the bottom line so much it's weird higher than expected revenue, missing on the bottom line -- they have a lot of -- >> heavy equipment. >> moderna >> you're talking about moderna. >> i need to -- >> more through the -- >> cancer vaccines -- >> coming up, netflix rolling out it's $7 ad-supported tier.

should you do that or stay on twitter for a dollar more. >> which will bring you more happiness, joe >> here's what they said -- >> we'll dig deeper into that streaming giant. as we head to break -- >> charge for inventory. company also took an expense on unused manufacturing capacity, related cancellations -- >> the new normal. it really was a pandemic play. check out the performance of names and companies known for buybacks and paying high dividends. bank of america up 16%, at&t up 15%. all beating the s&p which is up 2% interesting. "squawk box" will be right back. >> announcer: time now for today's aflac trivia question. how many peanut butter and jelly sandwiches will the average americ e banaty the time they

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now the answer to today's aflac trivia question. how many peanut butter and jelly sandwiches will the average american eat by the time they

graduate high school the answer, 1,500. still to come, we're going to talk about the future of twitter. plus the latest esg move sam zell is going to join us to talk about oil to real estate and he's finding -- and plus judy shelton u' wchuned yoreating "squawk box" and this is cnbc

welcome back to "squawk box. let's get a check on markets this morning after yesterday's fed decision and ahead of tomorrow's big jobs report is that tomorrow is it november >> it's november and it's friday. >> tomorrow. >> thank god it's friday or -- >> thank god it's thursday friday is too close to monday. >> it's downhill from here. >> it does yeah, right. enjoy right now between now and 9:00 right now the ten-year -- you can see the averages are down. now the nasdaq is down triple digits and the ten-year, any fantasies

that we had about staying around 4% -- it's weird to have fantasies about yields on a ten-year note, but i do. that was a false hope for that and then if you're thinking do i need to buy stocks if you can get 4.7 in a two-year, it's certainly a -- there is an alternative at this point. if you used to do the tina trade. the tina trade is -- >> it's -- >> there is an alternative, tiaa. >> you messed this up last time. >> there is an alternative >> meantime, in the headlines this morning, elon musk met with heads of civil rights groups they're pressuring musk not to allow members who have been banned to return and they urged musk to give twitter staff the tools

necessary to combat misinformation jonathan greenblatt helped organize that call, took part in the meeting. here's what jonathan told us the morning after musk finalized the twitter acquisition. >> wild conspiracy theories and platforms awash with information are problematic for society. i don't think social media platforms should be the play things of billionaires to begin with but elon has the right to buy twitter. i'm a capitalist and i believe he can do this there's no stopping that but what there is stopping is threats and slander on the platform >> and then there's this story this morning, blackrock about one year into its voter choice program, something larry fink says is part of a revolution in shareholder democracy, is providing updates on the clients. the goal of voting choice is to give blackrock's clients the

option to vote on behalf of the stocks they hold through indexes. historically, those were outsourced to blackrock's stewardship team clients representing 25% of the $1.8 trillion in eligible assets are enrolled in voting choice. the number of blackrock clients interested in signing up as doubled. they're emphasizing that they're committed to offering clients that choice and delivering the best outcomes consistent with their preferences. joining us now to talk about both of these stories and so much more -- we have the founder of asset management. it's nice to see you at the table this morning >> it's good to see you guys. >> a lot to unpack let's unpack what blackrock is doing first. you talked about shareholder democracy choice not having one group or another voting on people's behalf. i assume you support this?

>> i think this is a tiny step in the right direction i want to recognize that at the outset i think there's a deeper problem here first of all, every day retail investors are simply not equipped to vote their proxies if you own one stock market index fund, that would be thousands of -- >> if you don't -- the s&p 500, you got to vote on 500 companies and sometimes there's ten different votes for each company. >> let alone people who own multiple index funs. this could be tens of thousands of votes they're going to delegate those votes to firms with 97% market share. all of whom vote straight down the line, recommend straight down the line on the esg issues which are the most controversial questions. >> this is opportunity for you, my friend. >> from a business perspective, there's a lot of solutions there's a marketplace that's changing there's a lot of room for new market participants to take a

look at that 1. point that gets lost in this, andrew, shareholder engagement, what is called stewardship has more influence on corporate behavior the annual letter that larry fink writes has more influence than the proxy votes so like i said, this is one small step for proxy voting. one tiny step in actual progress and reality. if you don't fix the shareholder engagement issue, we're not really changing the way that capital speaks in corporate america. i'm glad to see these issues -- >> shareholder engagement, the truth is -- we talk about d democracy is a messy thing there's a lot of people who are unengaged. most shareholders outsource these decisions to others, it's

really a decision about who you're outsourcing to. >> this is one of the reasons i started stride i think the right way this should play out is a diversity of actual voices not to say that take those votes back when you don't have the ability to do anything with them but rather to say if you want to vote in accordance with environmental or social principles, great. this is a free country and you should be free to do that. if you don't want to vote according to environmental or social or governance principles defined by someone else, you can vote along the lines of pro profiduciary principles. >> where do you vote your shares it's not the shareholders or the owners of the capital who is voting. >> the etf issuer, the asset manager, votes on behalf of their clients. the way strive votes is focused on mandating companies to focus

on excellence in their products and services for customers to maximum shareholder value. >> does that mean voting with management most of the time -- >> not necessarily >> it means that every decision has to be valuated based on long-run maximumization without regard to social factors. >> how do you do that? that's thousands and thousands of positions. >> that's the job of an independent asset manager. they take the case of the chevron scope three example in 2021 there could be great reasons if you want to stave off climate change to make the social argument for why they should adopt it it was put up by a dutch non-profit that wanted to fight climate change strive would have voted against that audits at apple, same story. >> i have one related question to all of this i think there's a huge opportunity in this advisory space long term -- and the

question is whether there's multiple firms that get into this space how do you pressure them what you really want to do, on a fiduciary basis -- it's interesting because you said -- some people go on esg principles there's some people who think that's the same thing and put them in the same bucket. could you go out ten years from now and be able to measure who was more successful in terms of the actual investment. that's hard to quantify. >> the measurement is really hard to quantify the index funds are investing in the same underlying lycompanies. this is about underlying corporate performance. i think it's if you have diverse voices, it puts the directors on the boards, they have to earn their paycheck where they have to make independent business judgments if there's a diversity of voices. right now they hear one voice. once we hear that diversity of voices, those directors have to go back to making business judgments in the boardroom. >> given your focus on diversity

of voices, let's talk about twitter and whether there really are going to be a diversity of voices what diversity of voices -- you know, what that really looks like, is that a good thing is it a bad thing? you saw mr. greenblatt talking about the conspiracy theories. it's been showing up on twitter for years. even more so in the past week, including, by the way, and -- you know, i give him a lot of credit for what he's trying to do we'll see whether it works elon musk retweeting this conspiracy theory about paul pelosi >> here's what i say, andrew, a lot of people conflate some of the difficulties here. i will acknowledge that operating twitter as a free speech platform is not an easy thing to do. a social media platform cannot function without some level of content moderation the things that would fill your things would be things like spam, porn at the same time there's a way to do it there's a few simple principles. first rule of the road is know

viewpoint-based discrimination no viewpoint discrimination and here's the rub, that means rate speech goes away as a category hate speech is someone else's opinion. you add onto that the misinformation piece of this if you're going to take down false speech, the company bears the obligation to prove that the speech was false before removing it, and then if in doubt, here's a tiebreaker, give the power back to the user let the user decide what protocols they opt into and not rather than making those decisions centrally for everyone have different protocols that different users can opt into i think that's a workable formula for solving these problems >> advertisers advertisers want to be in the midst of that? >> advertisers can choose which of the user protocols they want -- >> the racist hate channel >> the free speech channel i don't think the people are expressing opinions want to have them described as racist -- >> if they're racist, they're

racist. >> don't have one central body making those decisions for everyone let the users decide and let the advertisers decide too >> two examples that i think are hard to deal with. one, covid wuhan that was actually stuff that was taken down by twitter. >> that's right. >> and arguably, and i think there's arguments to say, maybe some of it should have been left up in terms of being having debates about -- >> greenblatt was on, that was the same day "vanity fair" published this huge piece on how the odds are increasingly with a lab-based origin for wuhan and just to prove his point, that was never -- that was a conspiracy that was true maybe. >> maybe let's say that's one issue on one side paul pelosi on the other side which at least from my vantage point, i say this, i try to say it apolitically, i think was heinous to put out there and at least at the moment seems very,

very wrong. >> agree. >> so the question is, this is not a unique question at this point in american history. that takes some of the pressure off this conversation. the question is, do the nazis get to march or not? this is a cardinal case in constitutional law we learned it in the first year of law school and it's a debate then as it is today -- >> but this is not a real town hall this is a privately owned company and in some cases the other social media companies are publicly owned companies >> with all due respect, the whole argument -- >> with all due respect is the rudest thing you can say to somebody. >> i would say the whole premise of this discussion is predicated on the fact that twitter is the forum, one of the main forums for open public discourse today. people with diverse views can come together and exchange those views. we have lost their spaces. say what you will about twitter, it's one of the few spaces where people are able to engage in -- >> if you look at the capital. "the washington post" put out a

story about how the capital police watched this break-in, the stuff that was said about him, definitely leads to additional violence. and you can say this i'm not saying this just about the democrats. this is a situation where republicans have been put in this position. we're going to have scalise on who was shot he's going to talk about -- >> the thing i will tell you, this is not unique to this moment we have been having this debate in this country since 1776, since 1789 it's the bargain of free speech in our country free speech is not intended for the speech we love it is intended for the speech that we do not love -- >> it should not be -- you can have your opinions but saying that things are facts are dangerous -- >> if you're going to take down false speech, the company bears the burden of proof to demonstrate that it was actually false. free speech is not a liberal arts luxury -- >> you can have an opinion, but there are certainly facts in certain cases, to be able to say

whatever garbage you want is not -- >> you take a look at the debates around closing schools there were people who were censored on youtube and other channels for making the arguments against school closures now we look back and say that those were probably policies that we regret i believe we would have gotten to the right answers sooner if we had not censored those views. >> alex jones -- >> i think we have to draw a distinction there -- >> i do to every time i lay out a valid argument, you change it. >> condemn heinous speech. anti-semitism, it is on the rise today in america i think this is a problem. jonathan and i, we spoke and share that view. we think it's a problem -- >> anything that you don't like, that's what -- >> absolutely. i disagree with a lot of the content that's listed on the internet i think the four of us probably share that in common where i differ from you, the way we fight bad speech is through more speech, not through less speech

that's the american way. >> on social media, everything is amplified and spread. and then people actually believe it you have largest populations of people who believe things that are false. >> we need to create a civic culture where we can have open debate based on facts. >> it used to be that you could stand in times square right behind us and shout whatever you wanted but you could only get 30, 40, 50 people around you twitter is different. >> the amplification >> it's the piece that she's talking about and so when you see these kind of heinous stories, conspiracy theories about a paul pelosi situation that seems to lead to violence in other situations as a result of it, the question is, do the companies bear some responsibility for trying to rein that in i would argue they do. to put it on -- but to also put it on them to decide what's false is also a complicating factor. >> exactly

the companiy bears the burden o proof to show it was false history over the last two to three years teaches us that many of our current beliefs will be modified in some way put it on the responsibility of the body politic andrew andrew, the way you treat the misinformation point is different from the way you treat the category of hate speech. you can't have hate speech as a category because all opinions are allowed. >> there's a lot of people who deny the election results of this last election some of whom, by the way, look like they may win next week. do you think that there should be people correcting the record? >> i think there should be people correcting the record through free speech and open and debate, not through silencing them and censorship. we live in a country where you can burn the flag and say, you

know what, war on america, this is a country where part of burning the flag is what gives that the meaning, the fact that we live in a country where that is allowed if we lose that principle, we lose the principle we're fighting for in the first play >> how concerned are you, how concerned are you with either democracy or the very idea that there are large parts of the population who believe things that are factually untrue today. >> i'm concerned about threats to democracy but i think those threats to democracy, andrew, are plural. and one of those threats to democracy is the centralized determination of truth, by the way, we haven't talked about it, where the government itself is coordinating with twitter, with facebook, et cetera, to direct critics of the government to be silenced this is something that i think is also a threat to democracy where you have a government using private companies to censor speech. >> i think we agree on lots of things, but it's a matter of degrees and it's different

a longer conversation. good discussion, thank you. >> appreciate it when we come back, equity group investments chairman sam zell will join us for an exclusive interview. never one to hold back. job advertisements in new york city are getting a new look jon fortt joins us with a preview. what are you seeing? >> new york city began enforcing its updated human rights law that targets salary transparency will it boost fairness in the job market allow both sides of the debate when "squawk box" returns.

coming you up in the next hour, an exclusive interview with legendary investor and group investments chairman sam zel. and here are the futures right now. they have been weak for the morning. triple-digit losses in the dow and the nasdaq and the s&p off about 33 points. we're in the red after yesterday and jay powell just depends on how far we go further into the red at there point or whether we rebound. we'll be right back.

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internal boards or flyers and newspapers supporters hope this will close gender and other pay gaps. here is thee reasons why it won't work this is the ground floor of careers way better than high levels that store manager is range of 50 though $70,000 and anyone settling for 50 is a chump but the price range is 40 to $75 which is probably what they're do and that only applies to jobs posted of the roughly 13 jobs i've had, maybe three were ever posted and then three, the salary ranges companies are posted are already ridiculous cvs health is looking for an avp of machine learning platforms paying between $189,000 and then $417,000 so roughly $228,000 more than that helpful, right, becky. >> it is clear this is not going to fix pay discrepancies so you're saying they shouldn't do

it at all? >> well, i mean, on the other hand new york city pay transparency rules aren't perfect but they are better, but third party tech companies can use to create new services to make things more fair there will be apps that alert you when there is a higher paying role in your expertise. they will qualify for a 20% salary boost based on your experience and education will company fudge salary ranges to pay new hires less, yes and will they use agencies to hide salaries, yes but some competitive firms might post jobs any way to stand out from the pack. are the huge salary ranges ridiculous yes. but they serve a purpose because this is good faith that companies are supposed to give if they posting? that high, somebody is making

that but this is all data that people could use to make the snystem better, not perfect but better. >> it feels like it is the system getting manipulated next. there is always manipulation if the fed hikes rates, there is fewer job postings right. >> there is the rub. the job postings will be fewer ab labor markets dynamics are shifting, whether you talk about labor union and the idea of quiet quitting which is brand-new. but even that i is being talked about a lot less as even a number of postings that make remote work available are coming down for percentage wide i think linked-in had 16% of posts were remote work eligible and now that is down to 12%. >> yikes >> yeah. >> john, thank you. coming up, we have

billionaire sam zelle. do you not want to miss and that is next and he's never one to hold back. and later judy shelton is going stdas er her perspective on yeery'fed rate decision. a big hour ahead "squawk box" coming right back

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good morning, futures pointing to losses now with just 90 minutes to go before the opening bell on wall street all of the major averages on pace to break multi-week win streaks and not helping, jay powell's message that the federal reserve is far from ending the campaign of interest rate hikes this hour, we're going to drive deep into the fed's strategy and what it may mean for the economy, stocks and real estate and so much more we'll talk with billionaire investor sam zel and judy shelton. a final hour of "squawk box" begins right now good morning and welcome to "squawk box" here on cnbc live from the nasdaq market site in times square u.s. equity futures have been

down all morning long after that tumultuous session that we saw yesterday following not just the action itself, but fed chair powell's commentary afterwards u.s. equity futures are triple-digits down on the dow and the nasdaq and the s&p off about 28 points. treasury yields probably reacing the way you would think. the ten year is well above 4%. almost 4.2, 4.187% and the two year 4.7 and bank of england. >> and just out with the interest rate decision we've been waiting for steve liesman has it for us. >> 75 basis points, joining the 75 basis point club hiking rates from 2.25% and to 3% and saying more rate hikes may be necessary. i'm just going through it now but one headline, shows inflation peaking around 11% in

the fourth quarter they said it would happen in october at just under 11 so they're looking at more inflation. they're saying that the peak rate might be less than 4.2% but i'm not sure what that peak is and here is your estimate for gdp in 2022. 4.25 and 2023 mine us 1.5% for dpl england and minus 1% for 2024, that is different than previously forecast. rates rising here in the u.s. on the back of that fed press conference and statement yesterday and now bank of england joining the 75 club. >> thank you we'll get over to mike santoli what are you watching in the pre-market at this point after yesterday's fed rate hike and it looks like a lot of red on the screen. >> for sure, andrew. an it is a kind of a familiar story.

maybe kind of an if exhausting one. the fed thinks that it has the destination for where the fed is going to take interest rates and fed said not yet and pushing that destination farther into the future and as of yesterday we wiped out last week's gains and we never gotten free fully of that little down trend and that sloppy area around the lows in mid-october now, we're not falling apart here down about half a percent even as yields go higher. some of the maturities the bond market is getting in the direction of pricing in this 5% or even higher short-term interest rates take a look at stocks versus bonds this year. it is really consistent. you haven't had any freedom from relief in the bond sell-off. this is the bond market and the value of the bonds not the yields and you see it is more or less tracked here.

but you did see some stabilization right here and it is worth looking at the 10-year treasury as it aetch pros the highs at 4.25% and so look for those maybe decision points for the market semis going to have another rough day. the nasdaq 100 just more than 100% off the lows. you have some semi names that also weighing on it like qualcomm and you see there was separations from banks another bellwether group here, they took some pain earlier in the year semis, not so much, andrew. >> mike, thank you we'll be talking to you again a lot throughout the day >> coming up, news with sam zelle and judy shelton, we'll be their take on the fed's interest rate hike and we'll speak with the ceo of the anti-defamation

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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. it is very premature to be thinking about pausing so people, when they hear lags, they think about a pause it is very premature in my view to think about or be talking about pausing our rate hike. we have a ways to go >> that was fed chair jay powell yesterday throwing cold water on the idea that the u.s. central bank might be on the cusp of ending the rate hike campaign. joining us on set to talk about all of this is sam zell. he's a long time friend of the show and it is been a while since we've seep in studio good to see you. >> good to see you. >> we've heard from a number ever business leaders who have been very concerned about the fed's rate hikes

the level we're getting to saying that it is already having a big impact on business and potentially putting us in a recession if year not already in one. what is your take on this because i know as recently as july you were still thinking the fed had room to room. >> i think the fed is doing all of the right things now. over the fact that they did all of the right things earlier this year the concept of transitory inflation is pretty awful and i've never heard that phrase before and i'm sure i'll never use it again be we overflooded the society with capital we debased currency. and it was $8 trillion that we did in three years i mean, we used to do stuff in congress was a billion dollars and that was a big deal.

a trillion dollars and how could you not expect that to create inflation and not only a minor inflation, but, you know, 10% inflation is a serious scenario and i'm not even sure that that is really reflective of how much inflation is really existing. >> so if the fed is going the right thing right now, you would encourage them to keep this up, what jay powell said yesterday is right and that means what in terms of pain the economy is going to feel? >> well, i think the likelihood is that we're going to have a recession. frankly, that is what happens when you flood the world with money. and everything is free, you lead to excess and excess leads to a recession. >> can the fed do it by themselves, by trying to do this because other central banks, not the bank of england which just

did 75 basis points in the last few minutes. but other central banks like the european central bank have indicated that they're going to pivot because of how bad the recession there is anticipated and i wonder the resolve you're going to have in the federal reserve and other places if the global recession starts to pinch? >> well, i don't any that there has ever been much of a case for unified action worldwide and and the a -- the attempts to do so have not been successful. we have a situation here in the pandemic, the u.s. was far and away the leader in relaxing covenants and making money and that means that on the other side of that same coin, i think the fed has to be very resilient to bring this inflation back to

normal >> i guess i wonder what you're doing with your investments at this point if that is the case, then stock market probably has further to fall, interest rates maybe move higher from here >> i think interest rates are going to move higher from here and i think that a lot of the discussion about interest rates have talked in terms of absolutes when, in fact, i think relatives are more important than absolutes so, you know, taking the cost to capital from two to zero in my opinion, accomplished very little taking interest rates from zero to 2% accomplished very little and it is only now that we're in the 3s and 4s and on our way to the 5s, that we're seeing some impact but it is still very early and i wouldn't get -- i don't think

there is any basis for being overly optimistic that will be done very quickly or without pain i mean, if you go back to end of world war ii to today, we've had a series of recessions we've never had a recession without a liquidity crisis and if i were guessing, i would think that a liquidity crisis is the next item on the agenda. >> are you hoarding cash then? >> i'm sorry >> are you hoarding catch then >> i guess i've been hoarding cash for some time and first i said, gee, holding a lot of cash in an inflationary environment maybe not so smooth. but the more i looked at the situation, the more i was convinced that liquidity is value and there is a -- there is definitely a liquidity issue that is arising.

i mean, we can wit-- at equity residential, we just finished doing our resolver we're an a-minus company and a $40 billion company and low leveraged and getting that resolving done was a challenge it was hard. >> as an a-minus company. >> i'm sorry. >> as an a-minus company. >> people are concerned about making commitments everybody who committed to the twitter takeout is going to get taken out. and it is been a number of other deals where banks made commitments, not so long ago and those commitments aren't viable. >> you're saying this pretty calmly but when i hear it from you, who understands markets so

well, jamie dimon and paul tuton jones have said similar things and people that understand the markets and the cycles best are speaking with one voice at this point. everything that we saw in the month of october with the dow up 14%. best month since like 1979 or something. that smells like you may think this is the calm before the real storm. >> i think all of this is just terribly predictable i mean, you just can't flood the system with, you know, the kind of liquidity that they have flooded it with and not have any consequences and i think what i'm just describing are kind of normal consequences of an excess on the part of the fed. they were excess in terms of low e -- lowering rates and buying

debt, $80 billion a month and now they're going to reverse that market isn't used to that and it is going to be painful. >> it is tough to go through a financial crisis and a pandemic within 10, 12, 15 years. >> maybe they are connected. >> maybe but it was all -- so what the fed did, they have to do so it is not that we're saying it was wrong but there are consequences. >> yeah. but think the biggest risk is the fed not doing it you know, the biggest risk is the fed -- >> not getting tough here you mean >> right biggest risk,is the fed coming up with some rationalization and we'll call it something else other than transitory. and that is exactly the wrong thing the fed should do. >> would you concede as a real estate guy that the terminal rate for the next ten years is going to be lower than what we were used to in the '80s and '90 the. or do we go back to 8% yields on

treasuries >> i think it is too early to make that kind of a judgment for sure we're not -- i don't see any scenario where we're going back to zero or one or 1.5. >> but we could go to 8 on the ten-year some day? 15 years from now. >> certainly possible. >> amazing. >> certainly possible. >> my only problem is it deems so wrong in the transitory side of things. i don't know why we suddenly think they're going to be right about what the terminal rate is now. you figure it has to go higher and we'll know when we're there and you don't think the fed could pick a number and say that is where it is going to be right now, do you? >> i can't imagine there is just way too many variables. and the fed's job, i'm in no way shape or form calling the fed's job easier it is a very, very difficult

job. >> could we help them with supply side things instead of just killing the economy, to -- how do we get the supply of goods up and -- >> all of that comes down to discipline and in other words we've been -- come on, we've been screwing around with a 0%, 1% that is not discipline you know, jameis who writes that credit thing >> james grant. >> james grant he quoted something last year that was kraincredible and he talked about the fact that basketball was saved from distinction by the shock lock and one game between -- in between minneapolis and syracuse ended up 17-16 and the next day

red hour bach put in a shot clock and eventually it went all over the campus. there was no sense of urgency. in the same manner when interest rates are0% or 1%, there is no sense of urgency. >> they could add a shot clock for baseball but for the pitch. >> i have a questioner to you about valuations in terms of what you're seeing you deal with private companies that are less liquid than what could be sold at any minute. >> absolutely. >> and i think there is a question minute mark place about whether private equity firms and venture capital firms are properly marking the valuations of their investments and whether it actually matters. >> well, the second part of your question is for sure it matters a lot. those valuations are, you know, very much connected to our whole

society. i mean -- >> i'm with you. people say it doesn't matter until you sell but for those that are marking the market effectively -- >> well, remember, that the giant event of the great recession was we didn't mark to market >> right >> i think it was a terrible mistake. i even called --i called obama at the time and ended up talking to goldsby and said you have to mark to market if you don't mark to market, you just going to keep this scenario going. >> i remember similarly having a conversation with steve swartzman at the time and i wrote a column that he believes that the accounting system of mark to market created a lot of problems that we saw in 2008 so anyway that is one of the reasons that i asked you the question do you think the marks today are accurate because if they're not, there is even larger problems in the

sys system. >> i think the marks today are probably overstated to some extent. >> is that 10% 20%. >> hard to tell. i mean, we have variables that we've never had before i think the u.s. is the reserve currency is in serious danger. if that happened, if we last our reserve status, that would be a catastrophe. >> and we're going to lose it too. >> i'm sorry >> people will ask who do you think we'll reserve the currency status to too. what other currency will rem earth where everybody is going to want to be. >> i'm saying at it time a res reserve currency loss leaves us with no definitive currency. we move from the british sovereign, the reserve currency to the american dollar today we have the chinese

chomping at the bit. we have the euro we have a lot of different variables. but think they've all been significantly impaired by the lassid of the last few years. >> you were early in figuring out oil prices were the place to be and getting into the oil company plays. how are you feeling about that these days >> i'm sorry >> knowing that oil was going to be a great investment. you talked to us about that a while ago. >> sure. >> how are you feeling about any of those vinvestments today because it is a tricky mark. >> those events today are extraordinarily volatile and i think that volatility dramatically decreases they're value as a core investment i mean, if you talk about core investments, you talk about stability and stability is

everybody's -- everybody's desire and we're in an environment right now where all commodities are subject to significant variations and i think that makes it for unstable environment and, you know, and the stable environment it is hard to make long-term commitments. >> you ever heard the expression please god let there be another real estate boom because i didn't sell during the last one? is there going to be another anything boom for five years, ten years? >> it's possible. >> how long? >> i don't know. >> but we have -- we have some -- we have to do some time in your view five years, do you think >> i'd be hesitant to make that kind of a commitment i mean, so much is dependent on what happens politically you know, we've got ourselves in a corner politically that is -- i've been around for a long

time, i've never seen anything quite like this and with such venom. and i think it is materially impacting our ability to perform. i think that the united states today is a drift of leadership like its never had in my experience and you could blame it on social media and i think social media is a terrible, terrible idea. that is that we're just seeing the excesses of today. and we're going to have to deal with that. >> sam, it has been wonderful having you on set. next time you're here would you stay for an hour or two. because we never get enough time. >> good deal. >> sam zel, we'll see you soon. >> more to come. we have judy shelton is going to join us on the impact of u.s.

central banks fourth straight supersized rate hike stay tuned for that conversation in just a moment you're watching "squawk box" only on cnbc

coming up breaking economic data and then anti-defamation jonathan green blat joins usnd a

how he sees combatting hate on twitter. stay tuned "squawk box" will be right back. gang, we need our paranormal services to be more versatile. i know a group who can help us. not those new age shamans again. i'm talking world-class business experts. data geeks, strategists, tax advisors, the works. 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.

welcome back to "squawk box. rick santoli here live on the

cme hq and we have breaking news yes, trade balance for september coming in as 73.3 billion. of course, that is a deficit and it follows the slightly revised 65.7 and 73.3 is the smallest trade deficit, well, since last month it hasn't popped up much but here is what you want to pay attention to it was minus 106,000 in march. and nonfarm productivity, .3% and that is a disappointment and we've been on the short side with respect to the special sauces, greenspan called it and the associated labor cost 3.5% productivity is down a percent and unit labor costs are down as well this is a third quarter preliminary. there is going to be many changes going on with respect to this and do keep in mind that

the recent high water mark has been 12.7 in terms of unit labor costs so we've seen some significant moderations. 217,000 on initial claims. that is less than expected and if we look at continuing claims, 1,485,000, that is more than expected and that is the highest level going back to march 2022, so that is a bit bigger than expected 217,000, well that is easy, we've been on the low side 217 is only 1,000 less tan the 218,000 from last week we want to continue to monitor the yield curve, the three months to tens has shifted positive after four consecutive closed inverted. we saw the bank of england raising three quarters of a point. and in the '80s their high water mark was 15% in 1989 and maybe

the most important thing, yesterday, well the fed didn't pivot. and it doesn't pause and it kept punishing to some extent as we see the markets here press conference was a real downer according to many traders. but they did have about 20 minutes of happiness prior to whether it started andrew, back to you. >> okay. rick, thank you for that appreciate it. want to get over to steve liesman who joins us now with more steve? >> yeah, a couple of things that are interesting here when you wonder what powell's concern is with wages, what he wants to see is he wants to see productivity wages going up along with productivity. his problem with wages are not that americans are earning more money, but they're going up more than productivity is going up. this is a turnaround as rick did suggest it is less of a turnaround than anticipated and

the job market remains healthy and one thing i never did see, not much of an increase of job claims in florida and there was a small bounce -- a tick up there but because of the hurricane down there, never really seemed to see a big increase in jobless claims down there. so they remain relatively low. we set up now for the jobs report tomorrow, expected to be north of 200,000 and powell has said he's just not seeing the slack in the labor market that he believes needs to develop in order to help fight and bring down inflation andrew. >> steve, thank you for that we'll continue this conversation. >> let's get back to it. we're going to talk about the top stories, fed's latest 75 basis point interest rate hike and chair powell's message that rates could go higher than previously thought joining us now is judy shelton, a senior fellow at the independent institute and a former federal reserve board member and offer of "money

meltdown, restoring order to the current system" and you make points that i haven't heard made and that is that chair powell seems all too willing to kind of fall on his sword and take responsibility for the price instability and that we're seeing for the inflation that we're seeing and said, yeah, it is our fault we stayed easy for too long and we were wrong about transitory he's kind of covering for fiscal irresponsibility but he's not mentioning that they had to keep rates to keep paying for all the spending that we were doing. >> exactly yesterday opening statements included the same thing he had said at the september meeting that is he started out by saying price stability is a responsibility of the federal reserve. and in a way i think that does

absolve the white house and congress, he's saying it is not your fault that we have inflation, we're responsible it may come across as being quite chivalrous, but i think it is artificial that there is a clear disconnect because when voters go to the polls next week, the number one issue animating how they're going to vote is inflation and i don't think powell is on the ballot so i believe that voters think they can attribute inflation to the policies of the biden administration and at the same time president biden is telling them that if the republicans take over congress inflation is going to be much worse so, it is this artificial construct that fiscal has nothing to do with monetirry and i think the fed is perpetuating that idea by saying we take everything as given when it is

obvious if the federal reserve were to go to 10% as a federal funds rate by the end of this year, but at the same time the white house said we're going to implement a program of universal basic income and half of the country is going to receive $10,000 a month, you think we would still have inflation i'm quite sure we would. so that is the disconnect we have to reconcile. >> and i think you also are, as we've talked about again and again in the past, skeptical that the fed has the tools to really cure the underlying problems that we're talking about, at least now that we've already gotten -- that we're into this position already it is going to be tough to dry all of the excess liquidity up >> well, that is right and that is another statement that powell repeated from his september opening yesterday after saying that the federal

reserve is responsible for price stability, he said we have the tools to bring it back down to 2% the inflation rate but if you look at those tools, think of all of the years when the fed was using those tools, keeping interest rates at near zero, engaging in massive purchases of government securities, and the fed's biggest problem was that inflation was at 1.7% and they couldn't push it up to 2%. so, they now say using those same tools and in reverse, that is by raising the interest rate, extremely rapidly, and by now allowing a portfolio to sell off, that that is going to bring inflation from 8% down to 2% so i think it is showing a confidence in tools that have not proved to deal with price stability very well in the past but now they're going all in on

them and then you throw in their other tool in the tool box, forward guidance, i think that was just a big hot mess yesterday. it seemed very contrived to put out a communication that alluded to cumulative tightening, that talked about long and variable legs, that kind of gave a nod to what happened in the british pension system by saying we're also going to monitor economic and financial developments so they obviously had to make a concession to all of those points that were praught up by members of the forward open market committee in the two-day meeting. so that was a concession to show we heard you but at the same time, powell then turned around and set himself up as being far tougher than that and staying in longer and probably go higher. >> but without knowing what

the -- he acknowledges the lag effect and then pretends to know what the terminal rate is going to be even though he just said we have no idea what the lag effect is going to be. it seemed like that was in response to the market which was up 300 points at the time. and he didn't want to -- he said okay -- >> it was directly in response to a question about the parks. what do you think about the marks. >> but what kind of -- really is that kind of language as forward guidance when you even kind of cop out by saying we're going meeting to meeting and it is data driven. that really means we're flying by the seat of our pants like everybody else so i don't think you can derive guidance out of that even though there is an army of analysts who are dissecting every word. it just leaves you a very confusing message. >> does anybody worry that, let's say higher interest rate

rates deal with a third of the underlying causes of inflation, you could deal with that that means we have to go to three times as high as we really should be in terms of causing an economic slowdown to accomplish what we need to do with inflation. and, i mean, how high do you think we need to go to get to 2% inflation again. it might be 10%. >> i would challenge that basic strategy i did not think that the key to reducing inflation is to curtail economic growth and powell has made it clear we want to get to restrictive interest rates, meaning we're going to cut off potential productive activity, the kind that would increase supply, at a time when we're seeing terrible productivity numbers, we're go ing to cut off productivity and make labor feel

as insecure so they're not as demanding in their request for wage gains that would keep them even with inflation and somehow that is going to help. i think what we're seeing is a problem where it is taken so long for workers to come back into the workplace, that companies are going to hang on to them even when they are not even marginally productive because what is the alternative. look at the larger economy if people are working and getting paid but not producing more supply, that makes inflation worse. and if people end up getting fired because of the cost of capital for small businesses is so high they have to start cutting back on their operation, those people are still going to have demand power because they'll get unemployment and all kinds of government transfers and we've seen it is the cash fiscal transfers that are the factor that really catapults

inflation. so i don't think just raising interest rates to punishing levels is solving the problem of inflation. and i'm afraid if we continue to see inflation not succumbing much, that the fed, instead of saying to itself maybe our strategy is not appropriate, when you have a situation where supply outdoes demand, i i think they're going to double down and say we have to go even higher. >> the idea of fixing the supply side of things would require money and that would be inflationary and in most cases unless you're looking at immigration reform to let more workers in how do you see that playing out? >> i do think we need to look at immigration reform becky, i think this is a great point. but the key here is productive economic activity. and i think that for the fed to inhibit banks from making productive loans and they've set up a very high hurdle for small business, if you go in to get a

loan through a bank, from a bank the first thing the bank is sitting we have cash sitting at the federal reserve and by the end of the year we're going to begetting 5% on that and we don't have to have a loan officer to monitor it, we don't have to analyze how you're doing, or chase after you to make your interest payment that is easy money for us the and that is the way fed raises interest rate these days on over $5 trillion of cash held by banking institutions and money market mutual funds in their accounts at the fed. these are government guaranteed risk free and interest-bearing deposits for them and i think that is really taking the financial capital away from potentially productive entrepreneurial activity so i think we need a whole different mindset at the fed >> good to have you on, judy i'll like for you -- you always re-tweet something that we do

while we're still on twitter together before the $8, i'll make sure that i check out your comments and maybe re-tweet those while i still can. >> is judy going to -- are you going to pay the $8? >> well now that is down to $8 from $20, it is kind of a bargain. >> kind of a bargain okay thanks see you later. coming up, jim cramer first take on the trading day and then the ceo of the anti-defamation league will join us on his meeting this week with twitter's elon musk. we'll be right back.

want to get down to the new york stock exchange where jim cramer joins us.

got to get your thought this is morning. and we've have a little less than 24 hours, maybe 18 hours or less to start to think through the implications of what you heard sfrom jay powell. what do you think? >> i don't understand why people felt that the statement at 2:00, they all focused on this, well there could be a lag and why anybody would say that is the all clear sign. he doesn't have anything other than mortgage applications that shows that he's done and i didn't understand why people were all excited because there isn't anything, did you have to give him something so, yeah, the market is reacting correctly. but it is been acting very strangely ever since the jolts we saw a lot of jobs available and then we know that there is still wage inflation, still food inflation. and there is still rent inflation. i mean, he's not winning it. so, therefore he's not winning

it is kind of -- he's being no hit. >> if he's now -- should he go even farther quicker? >> no, these rate hikes are huge he just has to take rates up to 4.5, 5, maybe 5.5 and people are freaked out about that but i think he's consistent. he's done when things begin to roll over. >> what do you think the breaking poin is, jim? >> i think that is what everybody is trying to figure out. if there is a lag, what is the moment at which we say to ourselves, you look at pepsi with the 20% profits and at what point are they taking too much and they have to say to themselves, we have to start offering discounts because it won't work any more. >> well, look, i think that october or turned out to be a pivotal month for everybody. we're getting reports from companies saying, listen, we did great but that does not include

october. and october was terrible you think of pepsi is the place to be because every cost is going to come down once they roll over. they have a huge amount of con tracks costco had a good quarter but still talking about food to wane thinking this, october is the beginning. october is a really terrible month in the world and in this country. and all you have to do is read every single one of the reports. i can't find anything other than maybe penn national that said that october was any good. >> okay. jim cramer >> that's it that's it? >> unfortunately, we got to run. we got to make sure we land on time so that you have all the time starting at 9:00 a.m. on "squawk on the street," my friend we'll see you in just a couple minutes. jonathan greenblatt coming up in just a moment from the antidefamation league. nvsat s ng to talking abouhi coertion with elon musk right here on "squawk.

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our final guest of the hour helped organize a call this week between civil rights organizations and elon mustk. according to participants, they talked about how twitter will fight hate on the platform joining us now, jonathan greenblatt i want to recount what happened last time we were on we put out a twitter thing where you were talking about how conspiracies can't be on there

and you saw what i retweeted the same day, "vanity fair" came out and said, we've looked at the wuhan lab situation and we've decided the evidence looks like it could have been in a lab. that would have been a conspiracy therory. on the other hand, jonathan, after your appearance, i looked at the comments that you were getting. i haven't heard some of these phrases in -- i can't believe they still exist in terms of anti-semitic, and they were right there on twitter and i said, wow. >> yep >> jonathan is absolutely right about what passes muster and is still, you know, on twitter. but do you see how those are diametrically opposed? you want no conspiracies, even though that one might have been true, and yet you're right, the hate speech is still just ubiquitous >> yeah, first of all, joe, welcome to my world. and i appreciate -- i don't even know if you're following me on twitter, but i'm glad you're reading what i'm getting >> for now, jonathan

i don't know i may not stay >> i got it. i got it no, but in reality, you know, i think as we've talked about on your show many times, adl has been very alarmed at the level of just raw toxic anti-semitism, and on twitter, let me be clear. i believe that hate speech is part of the price of free speech i think we've got to be willing, in a democracy, to tolerate ideas that we really don't like that we even detest. but there's something different about incitement and threats so, i'm not talking about conspiracy theories that are, you know, without consequence. but claims that, you know, jews invented the holocaust or that we want to kill non-jewish children or that israel is committing genocide and murdering people wantonally, this is really problematic, joe, and it has real-world consequences so, while we have been concerned, and i have expressed it on this show, where would elon take the platform i have now had several

conversations with him he held an audience not just with me, but i brought together other civil rights leaders from our stop hate for profit coalition, and actions speak louder than words, but i'm encouraged by what i heard this week >> you are okay can you gives uh so us some col that >> sure. first and foremost, privately, and then in the larger group, he told me and the cohort, which included the naacp, color of change, free press -- by the way, the george bush presidential center. not exactly bleeding-heart liberals, joe. and the asian american foundation we all came together, and he said, number one, i am not going to replatform people who have been kicked off the service until we have a clear and transparent process. more than that, i will not do it until after the election results are certified. secondly, he kcommitted to maintaining the election integrity effort to make sure

disinformation doesn't prevail on the platform in the days around the election. and then finally, he recommitted to a content moderation council and offered to include us in it. but more than any of that, joe, he then tweet out what we talked about, publicly. so, look, like i said, this is just the tip of the iceberg. i still have a lot of concerns but i was really encouraged that he took the eeting, that he listened earnestly i would tell you, he was very present for the whole conversation and then he did what he said he was going to do. that's a lot more than i've seen from mark zuckerberg, than i've seen from other tech ceos. i'm glad that elon did it. >> i didn't know that's what you were going to come on and say, jonathan, but i'm gratified as well so, now, we decide what the goal is now you're figuring out how to get there. i mean, the devil's going to be in the details, i think. >> that's right. and look, elon is four days

into -- four business day into owning the company he certainly doesn't have it all figured out yet, and it's crazy to think that he would, but the reality is, twitter has been a ha hell de hellscape for a long time. sludge like kanye west and richard spencer have been promoting. he said, i don't want hate i want to increase the joy the proof is in the pudding. but he told us the right things. he then tweeted out his commitments. that's more than i've seen from any other executives in his cohort >> hey, jonathan, you know, we were talking earlier about that tweet that elon sent and then deleted later about that heinous report about paul pelosi did he -- and that had happened, i think, before your meeting >> yeah, yeah. >> did he talk about his own experiences on the platform?

>> you know, he didn't, and i'll be honest, at one point during the conversation, he talked about really wanting to create a robust public square, which is something we can appreciate, but rashad robinson said, for black people, the public square is where we were bought and sold at an earlier point in our country's history and we know that the public square is where black people in particular, jews was also lynched in this country in the past. that being said, i think elon needs to appreciate, as i talked with you, with great power comes great responsibility and tweeting out random things can have a cost when you are literally controlling one of the big piece of that public square. so, you know, i think it's fair to say, andrew, again, we will see how he delivers, but my hope would be that he will appreciate the power that he hasand modulate the way that he shows up >> right thanks for the -- i know you weren't scheduled today to come

on, but very newsy, and you know, you heard it right from the person's mouth, elon himself. i don't like saying horse. i want to be nice to everyone. good to have you on, jonathan. thank you. >> always good to see you. >> good to see you wow. we got five seconds to go here >> straight from the horse's mouth. >> i know. i didn't want to say that. i don't know i'm trying to be nice. >> it's okay >> a horse is a horse, of course, of course. "squawk on the street" is next ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. more selling momentum after the worst fed day performance for the s&p in almost two years, on a day packed with data and earnings several companies with softer guidance we'll get to all of it our road map begins with a hawkish fed dashing those hopes for a pivot. futures do point to a lower open >> plus, chips are challenged.