and autonomous cars from cruise kicked off the strings of san francisco, the dmv accusing the company of misrepresenting safety-related information. it's wednesday, october 25th, 2023, and "squawk box" begins right now. ♪ good morning, everybody, and welcome to "squawk box" right here on cnbc. we are live from the nasdaq market site in times square. i'm pecky quick along with joe kernen and andrew ross sorkin. here we go. yesterday was a big upset for the markets. this morning a little bit of confusion. the s&p down by about 17 points. dow futures are indicated up by 20 paints maybe in part because of what we've heard from microsoft. we'll talk more about that in just a moment. nas dak indicated off by about

86 points. if you're looking at the treasury market, this has been our big interest point. right now it looks like the 10-year is back where it was yesterday, not back above 5% even though yields are a little higher. 2-year is at 5.08. crude prices around $85 a barrel this morning, wti is up 3 cents, and then crypto is on fire. if you check out sessions this morning -- i don't know why i say sessions. bitcoin is always trading, never stops. just above $34,000 this morning. meantime let's talk about today's "squawk planner." boeing, norfolk southern, and t-mobile. after the close we'll get reports from meta, ibm, and

mattel. and as joe said, the drama continues for speaker of the house. tom emmer ended his bid. dozens of larms and former president donald trump expressed opposition to his candidacy, last night choosing mike johnson as their next nominee. a social conservative from louisiana. he's a former analyst and radio host and served on president trump's defense team during his two impeachment trials. this came after former speaker kevin mccarthy floated a plan that would reinstall him as speaker and name congressman jim jordan as assistant speaker. we'll talk more about mike johnson's chances with jake sherman. >> look at that picture. >> it's an older picture of jake sherman. >> that is not jake sherman.

>> i recognize his eyes. >> that is not -- >> i recognize his eyes. look, guys. i was thinking of this. we're more than three weeks into an impasse. look how long it took to elect kem at the beginning of the year. this is nine months and change they've held control of the house and the house has been on strike for jut more than a month. this is the only organization in america where you get paid to go on strike. >> i still don't think people are more upset with him than they are just in general with all three bodies. >> this is -- you're either proving that we don't need a speaker of the house or we're going to get to the point where everything hits the wall very quickly. >> it's surreal and it's funny. nobody is at 209, which is where mccarthy was. that's 96%. nobody's there. the last guy, emmer, voted to certify the 2020 election. thatqualified him.

this guy voted not to certify in 2020. that disqualifies this guy. so that shows you where you are. it's amazing. it's kind of a catch-22. i don't know what -- the reason i thought the mccarthy thing made sense, he might be able to hold some of the moderates, although they're mad at him for not backing scalise more. and then jordan, you bring him in to satisfy some of the freedom caucus guys and maybe you've got some sort of a blended ticket there and maybe that would work. >> we've got to do something. we have no aid for is reeling, no aid for ukraine, no aud for the border and a shut down on november 17th. >> and they're talking again about patrick mchenry and temporary powers. that's being floated again. maybe jake sherman has more on that. are they voting at noon? what's the over and under on this guy? >> i don't -- i assume -- the

under is -- >> i would say 200. >> at this point -- >> 200 might be the under/over. unfortunately you need 217. >> yeah. >> 200 -- i don't know what the over/under -- didn't you think anybody -- i picked the diamondbacks because everyone said phillies. >> no, i took the phillies. >> where did the big hitters go the last two games? >> harper didn't show up. >> i actually did because it was so pat. it with us -- nobody wanted the diamondbacks. major league baseball didn't. >> it divided my family. my uncle and his family live out in phoenix. you should see the trash talk going on our trash talk lines. >> i like philly. i isn't surprised with texas either. houston was the consensus. >> yeah, but i'm -- yeah -- i don't like -- 120th world series and the most unlikely two teams you could put in there. >> probably.

we'll talk about snap in a second. the nasdaq looks like this. it's down a thousand points, and the s&p is down. everything looks like -- it was up yesterday, but nothing looks great right now in terms of these charts. >> yeah. but you've got to look at the charts heading into this. we're still looking year to date. >> that's not long enough for the nasdaq. yeah, go a little bit longer, see? it's like lower lows and lower highs, and it's a thousand points. it's a thousand points. >> look at where you started in january. >> yeah. a big move up. this could still be backing in philly theoretically, i guess. snap shares were volatile after hours. they jumped as much as 20% after earnings and revenue. the stock did pull back on word that some advertisers paused spending following the onset of the israel/hamas war. i guess it's a war. it could get to be a much bigger

war. we'll see. the pause was hurting its current quarter sales and didn't provide any guidance. and bipartisan group of 42 attorneys general is suing meta alemging that features of its facebook and instagram social media platform are addictive and aimed and kids and teens. the attorney general argued that meta designed its platforms to keep young users on them for longer and keep them coming back. they vie a littled a children's protection law by collecting personal data of children under 13 would parental consent. a meta spokesperson said there are many options to choose from and they're trying to ensent five the best possible experience. i guess they're saying, everyone else is doing it so why shouldn't we. the customer has introduce 30d tools to support families and teens, nudging them to take breaks and allowing parents to set limits. they know it's addictive.

they've designed the apps saying we're going to keep them for longer and here's how we're going to do it. >> it's like the cigarette companies. we have education here. >> as they continue to flag the cigarettes. >> and spirits. remember to drink moderately. >> as they show pictures of young people living it up. julia boorstin will bring us a preview at the bottom of the hour. it's not just meta. they're right. thereto are platforms doing the same thing. every one of them is designed to keep people there like a casino keeps people there. are they going to continue to be able to do it? >> part of me thinks this goes back to a legislative problem, not a legal problem. it would be interesting to see if there's actually internal data if they know or understand that they're damaging people materially. we've seen some of the stuff that came out. >> the facebook files that have come up. >> i don't know if that would constitute enough of a -- i think this ultimately needs to

be solved with legislation. that's what i would think. >> potentially. although, they may have gotten in trouble for collecting information without the consent of a parent. >> but actually being able to change the whole dynamic. >> wouldn't be nice to have a house and congress to actually address some of these things. >> it's law. if you give people enough rope to hang themselves, that i'll hang themselves. is there any way to prevent this? is there any way to make it a safe place in terms of bullying and feeling bad about yourself and seeing people on vacation. social media makes everyone depressed and no better after it. whether they're trying to draw you in or making you addicted to it or you're doing it to yourself -- >> to me it's not just a facebook story or a tiktok story. there's also the question of these guys. you know, i'm an apple fan. boy, i love apple. >> they suck you in?

>> no, no, no. if they cared about this issue really, if they really cared about this issue, which they could -- >> is it antithetical profits? >> i don't think it's ant threat cal. if they limited it or the parental controls actually worked -- i've got kids who know how to break through the controls. half of the controls don't work proper will i. >> i wouldn't blaming apple. they're not supposed to be the governor who monitors all the bad behavior from everybody else out there. >> i put this in google's camp, too, by the way. i think the folks who run these things, their incentives are slightly different. they're not toteally aligned wih those who make the apps. for some reason they never fully fundamentally jumped on board. >> we're asking private industry to do what government -- do you want government coming in with a solution? >> if you don't want the

government to do it, these guys should be doing it. >> the companies haven't stepped up. >> you know what the people will say it allcomes back to. the parents. >> i know, but, again, the kids are smarter than we are. the parental controls. you can tell me they don't have to have a phone. i want them to have a phone in case there's an emergency. i don't want all the things that come with it. >> it's a vexingish. >> by definition of social media, we've got to learn to live with it. it's here to stay. it's not great. >> the question is do you want regulation? there are certain issues where i would love to see more of a crackdown like the issue of pornography. the fact that we can't get legislation to crack down on child pornography seems insane to me. show me the experience. >> if you had a bad experience in high school -- and i went to an all boys high school -- if you had a bad experience, you

could go home at 2:30 or 3:00. you can't go home now. it's rough. it's very rough being a kid. yeah, it is rough. maybe you can get around it. but it is getting back to do you know where your kids are? it's 10:00. >> yeah. they're in my house, but i don't know what they're doing. >> we're sleeping. they're the only ones out. microsoft and google beating estimates on the top and bottom line but the stocks moving in opposite directions this morning. we're going to dig into those reports and explain why. alphabet shares down. microsoft shares up by 3.25%. you're watching "squawk box" and this is cnbc. >> announcer: this cnbc program is sponsored by baird. visit bairdifference.com. the first law of thermodynamics states

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a u above expectations. what happened with alphabet? what's the big disappointment? >> you hit the nail on the head. they were expected to deliver $8.6 billion in cloud revenue. they came in with $8.4 billion. the $8.4 billion is still 22% growth and even though microsoft with its cloud business assure grew 29%, they gave some share, it's still pretty robust growth by goggle and i think the reaction today down 7% on a miss of $20 billion on an over $8 billion number is a gross overreaction. i actually think alphabet is a pretty compelling buy right now today. >> okay. that's a strong move on this. if you want to dig through the rest of what's happening there, you probably liked what you saw when it came to advertising and some of the areas where their

were operating pretty well. what did you think digging through the rest of the numbers for alphabet? >> digging through the rest of the numbers for alphabet, everything looked good. it's going to be driven p by the digital ad market and that accelerated and all sub segments within that, so i'm pretty pleased. you know, joe said the right thing at the beginning of the segment, nothing looks good, including google, other tech stocks and maybe generally other tech stocks overall. you know, technicals look pretty poor. do you rush in and buy google aggressively? i'd actually buy it. today it's go going to break through its 50-day moving average. i think you buy a little bit and maybe scale in to alphabet in that range of 125 to 115. more for technical reasons, not

because we've had poor fundamentals with the cloud business. i think they're going to be fine over time. i don't think this is going to be that relevant. >> let's talk about the tech issues. what concerns you? where do you think we're headed? >> unfortunately we've had a nasty day on the 50-day moving average and it will be on high volume this morning. that looks pretty bad. we've been in this range of above the 50-day support very early since 2023. that's why i suggest maybe buy a tidbit on what i think is an overreaction of the cloud revenue miss, but scale in over time. we could be lower. we could go down do 125, maybe 115 on the down side. but, yeah, the technicals or the price chart looks unfortunately pretty nasty for this company despite the long-term fundamentals are solid. i would go in, as i said, more slowly and deliberately more for a market reason than a

fundamental reason. >> if it's not fundamentals and it's the technicals, what do you think? is it the broader issues facing the uncertainty, markets, global peace at this point? >> you're absolutely right. i like the discussion that you had at the beginning of the show. yeah, we have a lot of issues. you know, the geopolitical conc concerns, the lack of a house of speaker in the house of representatives, and, of course, the tech stocks, they're oober sensitive. and the tech stocks were based on the premise that before we got to the elkds of 2023, we'd start to lower rates and now we have one maybe ratchet up, and that's not much of a big deal. we're very close to the end of the rate hikes, but higher for longer. if we don't start to lower rates until maybe this time next year, that's the biggest problem of all with any of these aggressive growth stocks, alphabet and

others included. >> microsoft shares are up by better than 3% this morning. do you like those shares too? they look like they beat on every metric, and the cloud revenue looked pretty good too. >> yeah. their cloud revenue is accelerated, which i thought was very impressive. they also talk they have a million subscribers, so you get a little bit of that ai push finally, but i would own microsoft. i do own microsoft. i would own alphabet. i do own alphabet. i think microsoft is fully priced. wouldn't buy it. wouldn't sell it. would just hold it. but i do see an opportunity in alphabet shares. >> paul, thank you for being so decisive today and walking people through. i think people have a better idea walking away from this interview, thank you. >> sure, thank about you. coming up, blackstone's

steve weighing in about workers working from home. he said stop the presses. workers don't work as hard. and we'll bring you the latest reaction on wall street. "squawk box" will be right back. >> announcer: "squawk box" is sponsored by wisdomtree, theal fa pioneer. doors lead us to places we've never been. your dedicated fidelity advisor can help you open those doors. they can help you create a retirement-income plan designed to balance growth and guaranteed income.

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schwarzman making news at the summit known as davos in the desert. he said the reason it's difficult to get workers back to offices is because they aren't

working as hard as home. he also pointed out that people profit from remote work because they save money on commutes, lunches, and work attire. schwarzman says he expects companies to cut back on office space when their leases end and calls some office companies not survivable. but he said newer offices are proving resilient and demand for warehouses continues to rise. he said blackstone investors are expected to be at their desks five days a week. kind of an annan kronistic guy from the '70s. he's a square dude, like me. i agree. you're at home and it's like, i wonder what's going on. let me look at this. i can't imagine you work as hard at home.

i mean, don't you need some supervision? why are there supervisors if you don't need to be supervised? >> i can think of some individuals or careers where you don't need to be. ifyou're a computer programmer -- >> do you think the computer programmer works as hard at home as he does in the office? >> he works harder. >> you think he's old-fashioned. >> if you need to be in a meeting where you have to sit -- >> how about human nature where you're at work in a cubicle and the boss can walk by any second. >> you've been in cubicles. you know what we used to do? the jumble and all kinds of stupid things that unless the supervisor came around. >> and you would terrorize them until they walked away. >> see, that's a skill. i can work here or at home and

not do anything. i'm equally comfortable effing off here or at home. >> i was just saying -- >> if you were in the business of having to create something and the program has to write something -- >> you've been a propoejts -- you write at home. >> i do. i find the actual act of writing easier to do in a solitaire environment than around people. >> because you won't get anything done. >> look. in a newsroom when there's fast-breaking news and you want to be able to hear what one person is saying and pull news together, then that's valuable. if you were working on a longer form piece or if a programmer is working on actual code, actually being -- >> i think a small percentage of things play into it. most of the time, the camaraderie and the training -- >> i will say. >> -- team spirit, everything is better. people want you back, andrew. >> five days a week may be a stretch, but i think there are

times, and i've noticed where we've had intheer acts with people and had meetings and gotten things done. it was much more productive to say, yeah -- >> where people remote -- >> it makes a difference to have a guest in the studio. >> and for us to be here. >> i think ultimately the boss gets to have the say and you're going to lose some talented people who don't want to go along with that if you're the boss. but if you're in a tight labor market -- if you're in a tight labor market, the employees have more of a say. if you're in a weaker market, the boss has the say and you can take it or leave it. >> can you say anachronistic? i heard you slow down. >> i had to. i felt like i was having a mental lapse for a second. >> this is true. >> this is true. when we come back, we're going to go to washington. there's so much to talk about with this debate, this soap

opera really happening about who may be the next speaker. will there be a speaker ever? the republicans have picked their fourth nominee and punch bowl's jake sherman is going to tell us how the soap opera has been playing out. and later don't miss -- i shouldn't say soap opera because it trivialializes what is actually a very important situation and it's terrible that this whole situation has been normalized. later you don't want to miss this. we had an interview with adam neumann, co-founder of wework. he'sed a a meeting in saudi arabia. we look at yteesrday's winners and losers. >> announcer: executive edge is sponsored by at&t business. next-level moments need the next-level network.

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good morning and welcome back to "squawk box" live from the market site at times square.

the market is down after being in a sustained down trend since august. the dow's managing to eke out a small gain after a pretty good gain yesterday. hilton worldwide just out with quarterly results. earnings on $1.67 in line with $2.76 billion. it was actually above. one key metric, systemwide comparable revenue, room rev par, increased 6.8% compared to the prior year which was above the company's previous guidance. hilton is raising its full year guidance for aadjusted epf and revenue per available room, which with everything happening around the globe right now, i don't know that many people ared to go abroad ride now. >> we're making our plans to

davos. >> the other davos. >> davos in the desert. >> this is davos in the alps. meantime let's go to washington. the house is set to meet once again today hoping to elect the next speaker. joining us now "punchbowl news" co-founder jake sherman, a cnbc news contributor. talk about where everything stands, the handicapping, over, under, what's happening there? >> soap opera is a way to put this. it's more of a nightmare or horror film. mike johnson, skriv republican from louisiana got the nod last night, late last night in the capitol to be the new republican nominee for speaker. he was the second nominee in one day. tom emmers tried to get it. he had to drop out four hours later, 4 hours and ten minutes later to be precise. johnson has a chance. republicans are tired.

they've now wasted 22 days messing around and trying to throw food at each other trying to get a speaker, but there are huge hurdles here. number one, he has to get past the floor vote. i believe he will win, mike johnson. but once he gets to the other side, this is a very inexperienced lawmaker who has been at the lower tier of house republican leadership, doesn't raise a lot of money, has never been in a serious bipartisan negotiation, does not have the experience one would -- many would hope for going into the leadership, but he does have this. republicans are rallying around him. famous last words, i think he'll be elected this morning or this afternoon. >> you think he will be. >> i do, i do. listen, it's very difficult to get 217 on the floor. three or four people could stop your chances, could default it in its tracks. but i can't overstate how tired people are, how angry people are, and it looks like republicans are rallying to

decide. conservatives are on his side 100%. and you look at new york's moderate lawmaker, a barometer for the middle of the conference, he is in favor of johnson and says he will vote for him. >> how will he govern or how will he oversee this cast of characters that seem to be very divided? >> he's very conservative. he doesn't believe -- he double believe in giving an inch to democrat, and he will gain internally in the conference politically from holding that position. so you shouldn't expect anything less than a government shutdown and whatever that would be, 30 days, 25 days. he will have to hold tight. he might get a little bit of a grace period here, but this is somebody who has been among the most conservative members of the house republicans conference over the last several years, and on top of that, chair of the most conservative caucus has been in the leadership. listen, you should expect that

steve scalise, the number two who lost his role just a couple of weeks ago will gain. he's going to -- two louisianians at the top of the house republican leadership is an interesting dynamic. we've never seen anything like that before. and i want to make one more point. republicans have never been in a worse position than they are internally. that you're divided, angry at each other, and think oar going to have to get back on track. part of that will be raising lots of money. mike johnson is not a big fund raiser like kevin mccarthy. he's going to have to shake the can to get money from republicans. >> how does that work? is the expectation going fw that we're going to have a very divided house for a very long time? not to say it hasn't been divided already, but the entire tenor shifts? >> it's going to be very divided. over speaker gets some sort of a grace period, but this is somebody who believes in everything jim jordan believes.

if you believe jim jordan was far to the right, mike johnson is a lot more far to the right but not demonizable. it hurts and helps the republicans in is sense they have a public speaker but hurts them that they're going to be encountering a different group of legislative battles with a newly uncontested leader at the wheel. >> yesterday, jake -- i'm just playing devil's advocate -- 44 others and 43 were for mccarthy, i think. it was floated -- is there such a thing as an assistant speaker of the house? what does that -- did they just come up with that? i'm talking about the idea of kevin makar i think going back with jump jordan as an asus tanlt speaker. that was floated. >> it wouldn't happen. it doesn't stand a chance. democrats have had an assistant speaker in the past. it's effectively away to put

them in a role or some constituent happy. it's not real. mccarthy supporter, a huge chunk of them, would never in a million years go for elevating jordan and rewarding his behavior in the last couple of months and rewarding him for losing the speaker election and not being able to get the support. it simply wouldn't happen. >> would jordan even want this job? if it's not a real position, would jordan be on board? >> i think he would. remember, jim jordan is one of the most powerful members of congress, hard stop, even at the judiciary committee, which he chairs. he has a $25 million budget, incredibly powerful. i will say this about kevin mccarthy. he had eight detractors a couple of weeks ago. now he has 15 or 20. i think that's ballooned on. i think people are ready to move on and i think kevin mccarthy is

ready to move on and i expect it will happen in the next couple of months. >> how do you do that if you don't have a joint power-sharing agreement between the republicans. if you don't have it between the republicans, you're going to have to do it between the republicans and democrats. there's nobody who can get through? >> i think mike johnson could get 217 votes. >> what if he doesn't, jake? is the mchenry thing still viable or are we back to the mccarthy -- >> this is the last one, joe. if he doesn't make it today, by johnson, i imagine patrick mchenry will be the spieaker pr tem, maybe person continental by the end of the week. they're not going to waste more time. they've wasted too much more time. they're not going to go back to mccarthy. >> jake, i want to thank you for breaking all this down for us. i'm sure we'll be talking to you again tomorrow maybe and we'll

see where things really stand. thanks. >> guys. when we come back, cruise autonomous cars kicked off the streets of san francisco. we have that story next. and a reminder for you, you can get the best of "squawk box" on your dabyy odcast. follow us on your favorite podcast app and you can listen any time. we'll be right back. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq,

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welcome back, everybody.

california's didn't of motor vehicles have suspended car permits for cruise, which is a company owned by general motors. that effectively halts the company's operations. they say it's not safe for operation and accuses the company of failing to relate safety information. some of its cars stalled in intersections and on roadways and were involved in accidents. cruise will be able to test autonomous vehicles with a safety driver behind the wheel. shares of texas instruments falling, saying the demand for industrial and electronic components will continue to slump. revenue for the third quarter declined by 14%. full year revenue is now on course to drop by 10% and that

would break three consecutive years where it did have sales growth. meantime shares of sunpower, they are sliding, the solar company saying it plans to restate financial statements calling it an unreliable cost of revenue. the financial impact is still underway. the stock is still down. you're looking at close to 10%, down $4.50. that's about 75% down year to date thus far. i read an interesting piece in the journal. it's a bear market for renewable stocks. >> yeah. >> it's just unbelievable. even with subsidies, it's tough. tough. it's not competitive yet. coming up, shares of snap were volatile after hours after word that some advertisers were pausing spending. we've heard from others that advertising is getting better. we'll talk about meta's results. that's tonight.

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let's talk social media. snap shares surged but moderated after the company said some advertisers paused spending after the onset of october 7th and the terrorist attack. we're going to hear more about ad spending from meta platforms after today's closing bell. julia boorstin joins us with a closer look at the social media stocks. >> a big surprise that snap was

expected to have a declining revenue rate, expected to see revenue fall by 5% and they grew revenue by 2%, they're expected to swing to a loss and said they reported a gain. so, really upside surprise there which reflects a strengthening ad market as well as improvement in their ad tools and the question today with meta is what kind of gains do we see? analysts are expecting 21% revenue growth from meta, the fastest growth rate in two years. >> i mean, the advertising market, that has been the huge hope for so many companies, like, we get through oured aer have advertising recession at this point. there are certain areas where people think we already have seen the recession, whether that be retail. they'll tell you retail goods have seen the recession over seven quarterquarters. do you think that's the case. >> there does seem to be strengthening. looking at the projections and data out from the companies, it seems like there was real weakness last year and then wobbly in the first half of this year. and then in q3 and q4 there is

this strengthening. but what evan spiegel from snap said yesterday, which did raise some red flags and concerns and we'll see how it is reflected in the commentary from meta, is this idea that brand advertisers, not direct response advertisers, they're going after specific customers, but brand advertisers did take a pause after that hamas attack on israel and they were saying we don't know how big this conflagration is going to get, we don't know what is going to happen. there is this looming uncertainty and we have to be cautious about making any projections about how advertisers might react if things get worse. >> i don't know if you want to bring this into the conversation, but what did you think the real risk -- talk about risks, the risk of this -- all of these states suing meta and what that might mean for snap or the others? >> i think it was interesting they sued meta, but they didn't sue tiktok and youtube. snap is a little bit of a different situation because they're mostly -- they're targeting communication among friends. one of the key things that these states attorney general were

attacking about instagram is this constant -- this stream, this instagram feed, you can scroll, you know what feels like infinitely. i think that the question is whether snap is really playing a different game here. and really trying to get people to talk to their friends and then check out the content when they're waiting for their friends to respond. >> it does feel like this is the opening salvo. >> this could be an opening salvo. >> it is where the kids are. i got kids and they're all spending time on snap. >> they're also spending a lot of time on tiktok and youtube. i think one of the messages we got from the response from facebook is they say we're working on this, we have 30 tools to help moderate the impact, to help put up these f guardrails and there wasn't direct finger pointing, but indicating we're not the only platform. >> we're not the only app. everybody else is doing it too. i get back to the point, if you can say you're offering all these tools but are you juicing the algorithm to try to make it so kids can't put the phone down and doing that even knowing the

damage it can do to them? you can say, hey, i'm giving you the tools to stop me from doing this, but if your main goal is you're juicing the algorithm, i think you're going to end up in some trouble. >> obviously meta wants its apps to be successful, want them to be effective, but what they would argue, i would suspect, is that they don't want them to be so effect they've it is doing damage to their user base there is this question of whether they're violating this online protection act for children. if they are, that's a whole other -- >> that's where you're collecting data from kids under the age of 13 without the permission of their parents. >> they wouldn't want to damage the kids or they wouldn't want to damage their business with the kids? >> well, i mean, ultimately they don't want to send parents to pull the phone from the kids. >> i think push it as far as they possibly can just by definition. >> we'll see. meta would say we're at the

leading edge of this, we're doing better than our peers. we have instituted all these -- >> at keeping people -- >> at providing guardrails and they're also bigger. it will be interesting to see. in terms of impact on the business, is this a distraction? they're dealing with this already. they already saw the current concerns back to the facebook files and that whole issue. so is this going to be an even further distraction from building their business, or will they have to put in more guardrails so, say, ads targeted at teens are less targeted and maybe less effective. >> i don't know if guardrails work in this scenario. if the -- if the answer is you are juicing your algorithm and knowingly trying to get kids to never be able to put this down and saying to parents or other people, here's how to try to protect yourself from us, that's a slippery slope and not nice sort of setup to try and do it. you go back to the very origins of facebook, it was created by a teenager in a dorm room to try to figure out who is hot and who

is not. >> it has evolved. >> it evolved dramatically since then. back to the origins, that was one thing when it was college kids in a dorm room -- >> really? >> that's what facebook is. harvard had the facebook -- had a facebook and that's where everybody would check out to see what the new incoming class was -- >> mark zuckerberg was doing this? and when he does identify someone who is hot, what's that going to do for him? >> well, look, they have come a long way from there, but when you go back to the origins, that's what the whole thing started out as. now you're a multibillion dollar company. >> maybe if he's a jujitsu expert. maybe that would him a little -- he's really hot now? how much is he worth? >> he looks good if you -- >> what facebook and meta have said is that they understand the gravity of the situation. and they have put a lot of work into this. i think a lot of this work started years ago.

the question is how much of a distraction or challenge is this particular lawsuit that was filed yesterday and what does it mean in terms of the facebook business model? do they change it? do they say after ten minutes of scrolling, we're going to pop up and say you need to take a break now? there are -- >> i think it is going to -- it is going to matter what the algorithms do. that's going to be pretty key and pretty important. >> all about the algorithm. >> julia, thank you. coming up, morning movers. we're going to talk about earnings from visa. tell you what the credit card company said about consumer spending straight ahead. and don't miss our interview with am umdaneann in the 8:00 hour from saudi arabia this morning at the fii conference. we'll talk to him, two big hours ahead after this. to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets

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good morning. big tech pushing and pulling the markets. microsoft and alphabet going in different directions. the futures now, they're mixed. will boeing be the market tiebreaker? the aerospace giant expected to report results this hour. we're going to bring you the numbers and instant reaction. and the battle for the gavel, the gop has a nominee for house

speaker. meet louisiana representative mike johnson. we're going to have the latest from capitol hill as the second hour of "squawk box" begins right now. good morning. and welcome back to "squawk box" on cnbc. we'r we got a lot going on. two big hours ahead, take a look at u.s. equity futures now. a bit of a mixed picture. the dow is up 50 points. nasdaq looking to open down 67 points. s&p 500 off about 12 points. let's show you treasuries now. the ten-year and two-year, ten-year at 4.861. the two-year, call it flat at 5.085. oil, we have been talking about the energy complex, talking about evs and that whole world, wti right now, want to buy oil

by the barrel, will cost you $83.47. and finally, crypto, a wild story now sitting at $34,219 after sitting at $28,000 a week ago? >> to dom chu, look at this morning's premarket movers. once again, we know that in investing or sport go against the tide. no one thought texas instead of houston. no one thought arizona instead of the phillies. >> and not just that. the road teams, right? the road teams this post season. it didn't -- no such thing as home field advantage in the baseball playoffs this time around. anyway, it is fun to watch. as a person who is not represented in any of those markets out there, it will be curious to see what the teams do. anyway, big earnings story, right, of the morning so far has to be the tug of war that is happening in the markets and big tech in particular. that's microsoft and then google parent company alphabet, both moving in opposite directions as

you can see here. a lot of influence on the markets overall. dow component nasdaq and s&p 500 heavyweight microsoft is up just about almost 4% right now. 180,000 shares of volume. quarterly results beat estimates, maybe no surprise there. but that was thanks in part to stronger cloud computing results. that's the key for azure there. meanwhile, the other story is alphabet down nearly 7%, 250,000 shares of volume. results there topped estimates. but growth at its cloud unit fell shy of expectations. all about the cloud here. we'll see how this moves throughout the course of the premarket trade. we're getting some attention premarket on shares of visa. the credit card and payments network operator and dow component is down roughly 1.5%, call it 6,000 shares of volume. the after hours trade swung between gains and losses after last night's earnings report. top and bottom line beats here. visa boosted its dividend payment by 16% and approved a $25 billion stock buyback program. on balance, we have seen a

little negativity so far this morning. we'll cap things off with a check on the consumer. travel and leisure specifically, with shares of hotel operator hilton, which right now are down just about a percent or so, very thin volume, about a thousand shares traded so far premarket. profits matched analysts estimates, slightly better than expected revenues. but hilton did boost its full year profit outlook. the ceo says he expects meaningful upticks in hotel openings in the quacurrent quar. the hilton shares, check on the discretionary consumer, down 1%. back over to you. >> great. thanks, dom. joining us now, joanna kirkland, co-head of investment in group chief investment officer of schroder's. today is your 100th year anniversary. >> yes. >> in new york. i'll tell you why i'm excited. i'm excited because we're not -- you're not going to talk individual stocks or even sectors because you have so much money under management, we're just going to talk global equities, global fixed income,

global commodities. >> yeah, big picture. >> i'm excited about that. and you don't have 881 billion under, you have 881.5. if you -- >> like to be accurate. >> have you checked in the last -- things are moving right now. i was fascinated by a lot of your comments. global equities or economies used to be kind of in sync. you point out one of the first things you point out, big regional differences now. >> yes, i think it is because we had the revenge of the rate cycle, it has come back. in the years where everyone was pinned at zero, you saw very little divergence in rate cycles, and this year we got very different conditions around the world. u.s. is a little bit too hot for comfort from a market perspective. china very sluggish. europe is slowing very markedly. japan on fire. we haven't seen this kind of regional divergence since the early 2000s, that's the last time i saw it. >> as a result, and with bond yields stabilizing, you're going

to overweight u.s. equities because of this backdrop. >> generally, yes. i think we don't expect a recession anytime soon here in the states. we think the path of least resistance is for the s&p 500 to continue to climb. so, yeah, we're still risk on. and -- but it is a u.s. story. we know obviously about the dominance of the magnificent seven in the united states. if you look more broadly around the world, the xeconomic conditions aren't as conducive. >> you're out on u.s. treasuries in terms the five-year? >> we see -- i probably wrote that a few days ago, things move qui quickly. >> you're back in? >> the front end is well priced now. we have been avoiding the ten-year because of uncertainty around the term premium. and still not quite ready yet to buy that. >> but european investment grade -- >> we got that all summer because, again, europe, things

are slowing. actually investment grade market there is very high quality. you get a yield. the key is we need to beat cash somehow. that's the race we're facing right now. >> tougher thing to do. >> in europe, the investment grade will be cash and, again, even high yields in the states we still like them now. >> you do? >> yes. >> because no hard landing? >> because no hard landing. >> how often do you go to your conservative clients and say we really like commoditys? you like commodities? >> it is funny, for the last decade, we have been talking very much about regime shift in markets, for the last decade we didn't touch commodities. but since 2020, we have been allocating more to commodities because, again, you have sort of a bit of deglobalization going on, geopolitical tension, people keep asking me what do you own for that, commodities are a good hedge against that if that's what you're worried about, inflationary pressures. >> what kind of commoditys? you look at cop, the medals,

oil? >> over the summer we're focused on agriculture and energy. we were avoiding the metals because of china. as we entered this quarter we have gone fairly broad. though we don't expect a rapid reacceleration in china, and i think, you know, ongoing discussion of fiscal support reminds me of japan in the 1990s, always hoping for fiscal package then, but equally pessimism is a bit overdone now i think on china. we're seeing a movement in asian exports and so actually now we're happy with the border exposure. >> the greens, how much of that is a play on the war in ukraine? >> well, i mean, if you look over time, agriculture is highly diversifying, correlating with the weather more than anything else. in that sense, it is diversifying exposure. it gives us also a hedge against that is going on in ukraine. >> you like gold? >> gold still a little bit early. we see gold as a play on real yields. linked to the view on bonds more broadly. but, again, every day that passes, we're getting closer

probably to buying bonds. with this kind of -- >> getting closer to buying bonds? >> in the sense that as they're repriced, they get more interesting. it is a little early still. >> the -- when you look all around the world, do you have a different view of how central banks have performed in this environment? who has done really well? have they all been crappy? >> i think they have been getting a bad rap. they have been dealt a difficult set of cards. the fed has been clear for two years they were raising rates and worried about inflation. and the market kept ignoring them and trying to price a pivot. i think they have done a good job. i think that, you know, in europe, again, bank of england has a complicated set of circumstances. so maybe, you know, it is a little more unpredictable there

i would say. i don't want too negative about my home country. >> they said the forecasts haven't been right in years. >> but to be honest, all economic forecasts have been rubbish this year. everyone was expecting recession. i think if you look at what they have done on rates, they have been right. and if we -- you know, again, it is just the markets kept trying to say they're going to back down, they're going to back down, they have been right not to. >> going to use that on you. >> the rubbish? >> sounds good. >> sounded nice while you're saying it. >> can you use the word -- we can use the word rubbish in a u.s. show. if you were in uk, could you use that on tv? >> i know -- >> yes, it is not a rude word. >> okay. >> i know -- >> you've gotten in trouble for it. >> wilfred got in trouble for it. it begins with a b. >> i don't know -- >> yeah, you can't use -- >> no, that you can't use.

i'm pg. >> final question for you. snap, bad revenue outlook, do you like the stock? answer the question. no, i'm kidding. not a -- it is a u.s. tech -- you don't want to know. we like -- i like big picture sometimes. sometimes i don't like, you know, trying to micro -- >> that's the story of the last two years, stepping back and recognizing we're moving to a new range for yields and for rates and that maybe something was shifting. >> sometimes -- talking about individual things being rubbish, thank you. >> oh, never mind. won't say that one. thanks for coming in. when we come back, unleashing the potential of a.i. while limiting the potential dangers. aol co-founder steve case attended chuck schumer's second closed door a.i. hearing. he wants government policies to promote innovation and he'll join us next. we're waiting on boeing to

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as big tech races against the clock to dominate the a.i. frontier, congress held a meeting with the biggest names in technology. our next guest was among the 21 attendees. joining us is aol co-founder steve case. this is a huge issue. a lot of people in the world are wondering what to make of a.i. and how governments can and should go ahead and regulate that. in were already concerns that these discussions were taking place behind closed doors, the idea there is abrain trust of people making these decisions and the public doesn't figure that out. what can you tell us to allay any of those concerns? >> well, first of all, i think it is actually healthy that the senate is focusing on a.i. and doing it in a collaborative bipartisan way. other side of the capitol, the house, things have been a little challenging lately. i thought it was helpful. i understand the criticism about it being private. that enables it to be a candid conversation, people aren't

talking to the press, they're talking about the real issues. i found it to be a good constructive conversation, different views were talked about in terms of pro regulation, antiregulation, what to do about workers, how to create a more inclusive innovation economy, how to make sure it is not about big tech getting bigger. a lot of key themes were discussed, that did get air time. i give hats off to the bipartisan leadership, senator schumer, senator young and rounds for leading the effort and the other senators who took the time to listen and learn about a.i. it is complicated. >> i will give them kudos too for trying to dig into this. there are so many things he can want get right from a regulatory perspective. appreciate they're trying to figure this out. what are your big concerns and, look, they may not be talking about what was said in the room. i would like to hear what you think the big concerns are after you heard what was said there. >> i think a.i. isan important foundational technology. it has been developing for half a century.

not particularly new. something we all use every day. but it has gotten more attention because of chatgpt and the a.i. had its netscape moment if you look back at the internet era. it has been developing for 50 years, now gotten more attention. there is enormous benefits to a.i., that was part of the discussion yesterday in terms of healthcare and other things that could be done in much more precision medicine. but there are also risks. how do you balance it? one thing i said yesterday is the light touch approach to regulation, the early days of the internet is probably too light, but the heavy touch we're seeing in places like europe with some oftheir proposed a.i. regulation, likely would be too heavy and stifle some of the innovation. america needs to lead the a.i. revolution. china invested heavily in this. we need to lead, but we also need to do it in a more inclusive way. it can't just be the big companies, we need to back the startups, can't just be silicon valley, we have startups all over the country. those are some of the themes i talked about. recognize there are risks. recognize you need a goldilocks

solution to regulation, not too little, not too much, just right, and alsorecognize that it hassinhas to be something th levels the playing field across the country. >> i think the two huge concerns i have with it, number one is it a jobs killer, at least in the short-term. that's a more pedestrian concern even when you compare it to does it destroy the world, this rise of the machines, and they take over and something goes really wrong. why don't we dig through those two things first. is it a jobs killer short-term? >> there will be some aspect to it over a loss of jobs. 90% of us worked on farms, now it is 2%. technology made it easier to grow more food for more people at lower costs which is a good thing for society, but a bad thing for the fact that most people at the time worked in farms. we had to pivot from that agriculture revolution to the industrial revolution, move people from farm to factory and now we're pivoting from the industrial revolution to the digital revolution and we need to make sure people are

retrained. that was also part of the discussion yesterday. making sure we rethink our education system, make sure people are prepared for these jobs and also i think a lot of air time is recognizing this say moment to finally deal with our immigration policy. we need to be a magnet for talent, we want the best a.i. researchers coming here and staying here, not going to china, not going to some other country. so, the other part on the jobs killer side is talked about what we in the past talked about with rise of the -- we need to back companies everywhere, because new companies, startups create most of the jobs in our country. not small business, not big business, new business. we need to back the companies everywhere. that can offset the jobs that will be lost. >> those other revolutions where you move from agricultural to industrial and industrial to tech, those took a lot longer. this one feels like it is happening faster and maybe that's part of the fear into it. how you to gear up your education system, your training what do you do about the displacement if it takes place on a much faster pace? >> well, again, yes, it is fast, it is also evolving for 50

years. a.i. has been around for half a century. so, we now are focusing more on it, which i think is important. we're starting to see how it is being integrated to reimagine healthcare and education, a lot of other important aspects of our lives. and also recognize as you see with other technologies, it is not just artificial intelligence, it is augmented intelligence and jobs will change and some new jobs will emerge. that's been true with other technologies. so i'm not saying there aren't risks associated with a.i. in terms of job loss or national security issues. there are. but recognizing there are also upsides in trying to make sure you get the policy balance, the regulations balance is one of the key themes yesterday. >> steve, finally, your concerns, where you come down on the idea of what happens if something goes wrong, if these machines are kind of given these powers to think, and then we can't rein it in. how do we prevent that from happening? what do we do to try and prevent something like that? >> that's why i think discussions like we're having

now here in washington, d.c. are important. this is important new technology. it is going to have an impact on society, the economy, everyday life, government, even elections, and so rather than just -- think about it on the side, having a constructive collaborative bipartisan conversation is exactly what we need to do. i do worry about some of the long-term impacts of a.i. but i'm seeing firsthand some of the benefits. we back the company in chicago called tempest using a.i. and genomics to save lives. 2,000 employees, people are diagnosed with cancer, they can go to tempest and get a much more precise -- working with their doctors, a much more precise recommendation. that's a.i. saving lives. a.i. is improving education, a personal tutor. we need to look at some of the risks and worry about some of those downsides and including losing our lead as the most innovative entrepreneurial nation in the world, we need to lead in a.i., we need to make sure we're maximizing the benefits and minimizing the risks and doing it in a balanced way and discussions like yesterday are an important step of that. >> steve, thank you.

great to see you. steve case. >> thank you, becky. t-mobile out with quarterly results moments ago. 8 cents better than revenue missing expectations. the company saw post paid net customer ads of 1.2 million. also raising its full year guidance, the stock up on the back of the news of 1.5% in the premarket. we'll see whether it stays that way or moves around. when we come back, the gop may have found its next speaker. at least there is a nominee. we'll have the latest on the battle for the gavel. we'll do that next. later, adam neumann, former wework co-founder and ceo joins us from the conference in saudi arabia. he'll give us his perspective on everything going on there and everything that is happening in the middle east and more. "squawk box" returns after this.

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>> announcer: now the answer to today's aflac trivia question. according to the nrf, how many americans will participate in halloween festivities this year? the answer, 73%, up from 69% in 2022. the gop has found a nominee for house speaker, but will louisiana representative mike johnson get the votes? that's the question this morning. emily johnson joins us from washington with the latest turn of events on capitol hill. emily? >> good morning, andrew. well, yeah, congressman mike johnson was able to become the republican nominee for speaker, the fourth one that we had in this past month. but after johnson did lock this down, there was a bit of a vibe shift on capitol hill. first thing that we heard, of course, is that no republican said they would vote against johnson on the floor. now, three of them said they

would vote present, and there were about more than a dozen abs absences. we're not quite sure where every single member stands and that's important when you can only lose four. but johnson said he's confident that he can get to 217 today on the floor. and there was just a different vibe going on. there was a really celebratory attitude among republicans last night. republicans opened the doors, they let reporters in, lawmakers you can see here, taking selfies with johnson, patting him on the back. and johnson himself delivered this message of unity, thanking those who had been patient with the process, and promising to get to work. >> the world is on fire. we stand with our ally israel. we have a very busy agenda. we have appropriations bills to get through the process, but you're going to see this group looking -- working like a well oiled machine. >> now, if mike johnson is speaker, he will be having a bit of a learning curve in the job.

he's not one of the republicans' more prominent members but he's taken on leadership roles. he's the vice chair of the republican conference, and he headed the republican study committee, which is one of the biggest groups within house republicans. but the same point, he's really going to have to gear up when it comes to fund raising, when it comes to managing various issues. he's known for having a good relationship with some of those far right hard-line freedom caucus members, but, of course, as speaker, you have to serve everyone within the conference. the house is going to vote today at noon, so by early afternoon, guys, the house could finally have a speaker. >> okay. emily wilkins, appreciate it. thank you very much. >> first thing it says, trump ally, trump ally, trump ally. i was trying to figure out did he vote for certification or against certification? voted against. elected to congress in 2016, voted against certifying the 2020 presidential election results.

amazing. so he's got -- second person that said he's got it. emily and jake. comingp, wre ue' waiting for dow component boeing to report results. we'll bring you the numbers and the instant reaction as soon as they're released. "squawk box" coming right back. >> announcer: this cnbc program is sponsored by baird, visit bairddifference.com.

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boeing just reported. let's get to phil lebeau with the numbers. hey, phil. >> this is a miss on the bottom line by boeing, reporting wider than expected loss of 326 a share. the street was expecting a loss of 296. revenue slightly better than expected at $18.1 billion. free cash flow, negative for the third quarter, not a surprise given the earnings there, the lack of earnings. 310 million negative free cash flow. operating margin negative 6%. two charges in the quarter totalling 797 million, including a charge for work on the next generation of air force one, 482 million. now the guidance, this is what people will be focused on and not a huge surprise here because

there had been some chatter on the street that boeing might be trimming its full year delivery guidance when it comes to the 737 max. that's what boeing is doing. they expect to deliver around 400 37 maxes this year. the previous guidance was delivery of 400 to 450. given the issues with spirit aerosystems, key supplier, most people were saying don't be surprised if they trim this guidance. that's what they have done here. on the other hand, the company is raising its production of the 787 moving up to five month to four per month. the company is reaffirming targeting for long range production goals for both the 37 and the 87. and finally, when it comes to free cash flow, no change there in terms of the company's guidance. still expects 3 to 5 billion of free cash flow and long range target of 10 billion annually in free cash flow by 2025, 2026. lots to discuss with dave

calhoun, ceo of boeing. we'll be talking with him coming up on "squawk on the street" after 9:00. the big story here, guys, the 37 max, they made this deal with spirit aerosystems, pumping 100 million immediately into spirit to stabilize the production system there, that's going to be the focus of this interview. and i think a focus of a lot of the questions from analysts when that call comes up a little later this morning. guys, back to you. >> phil, thank you very much. we will be watching. right now, again, that stock up by 2.3%. when we come back, though, we will have the view from the car lot. group one automotive is one of the biggest dealerships in the united states. the ceo will give us an update on consumer demand. the impact of higher rates and his concerns about the ongoing uaw strike. plus, get e st othbef "squawk box" in our daily podcast. just follow squawk pod on your favorite podcast app and you can listen anytime. stay tuned.

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by record new vehicle and parts and services sales. u.s. vehicle retail sales increased 4.8% with gross profit growing 4.5% over the prior year. joining us now with more on the challenges facing the auto industry, darryl cunningham, president and ceo for group 1 automotive. i can think of so many places to go with this, darryl. the -- it is such a bifurcated market or seemed that way for a while between used car sales and new car and then you got the whole ev transition and what looks to be after gm's comments yesterday, just looks to be a tough thing to navigate for both companies like yours and the oems. >> good morning, joe. there is no shortage of variables out there right now. the one good thing that we're

seeing is the customer seems to be holding up pretty well. we saw that in our results as you mentioned in parts and service, we're very strong again in the quarter and our new car volumes were quite good. we're still under stock as an industry in many brands. the used car customer is still facing some uncertainty, much of that is due to some affordability questions and interest rate pressures year over year. so, that's the question mark that we're all trying to deal with. and trying to put plans in place to address. so, as a new car dealer, we have access to some sourcing opportunities that some of the used car pure plays don't have and we feel like that was one of the reasons we delivered what we thought was a pretty good used car quarter as well. >> the strike started at just a few places. it has been broadening.

where are you seeing the ef effects? you said parts and services were positive. will there come a time where you can't get parts? >> we're starting to see pressure on the parts supply chain, certainly. that's no secret. the good thing is we have 155 dealerships in the u.s. we can rely on our inventories in total to try to service customers out of those inventories as well. the parts impact will be felt more significantly and faster than the vehicle impact to be honest with you. so we're trying to deal with that, with our customers and the oems are doing a good job, i think, trying to staff their parts distribution centers and keep parts flowing because they know that affects customers right away and very quickly. >> are you -- would you say -- in terms of product mix, you got a bunch of pickup trucks going off the lot?

you got big suvs? are they all a bunch of gas guzzling internal combustion engine cars? is that where you're making all the money? >> ice is alive and well in the industry, i can tell you that. our footprint is heavy, southwestern united states and the industry itself is still only about 7% ev. so, there is still plenty of customers out there buying large suvs and large pickup trucks and honestly i think that's why you saw the uaw this week targeted two plants that build exactly that. so, there is plenty of demand still for those kinds of vehicles in the u.s. for sure. >> daryl, if you were one of the big three, would you use -- these are pretty good times right now. would you use all the profits to affect the transition to ev and will it be like throwing a big

party in, like, four people show up? >> well, i think what, you know, what you're seeing right now is some rationalization of ev planning. it is no secret. >> i love that, daryl of the you got a mackenzie guy standing next to you? what are we doing? some rationalization of ev -- what is that? >> they're pushing out their plans. >> they're in stall mode. they're stalled. they broke down. they're on the side of the road. >> base supply on evs is higher than it is on ice vehicles. that's no secret. and so certainly evs are moving slower than ice vehicles. that's no secret at all. i think the detroit three are trying to adjust to that reality and i think they're trying to revisit their investment assumptions on that. those are big dollars obviously.

>> so are people leasing, buying? if you're going off leases, should you buy the car? because you can make more money than selling it yourself? is it still like that? >> yeah, to some degree because there is still some pressure on used car inventories, not enough used cars out there in the world. so we're seeing some of that. on the lease front, we're seeing leasing increase. we saw lease penetration increase 50% year on year in the third quarter. so, customers are coming back to the lease market. oems are supporting leasing to a little bit larger degree and so i think you'll start to see more and more of that, yeah, for sure. >> so, daryl, tell me -- i haven't been updated lately, phil would know, the average age of a car on the road today used to be, like, portended great things for the industry. >> it is over 12 years.

>> is it still? >> yes. >> it hasn't gotten any better? >> no, it hasn't. it is still climbing and there are average mileage driven is increasing. our average miles driven through our -- the cars that come to our service drive, it is up 2,000 miles year over year, which means more service work, potential service work and as we look out into the future, we think that miles driven only increases for consumers based on the trends that are out there and the use of fleets in the industry. so, certainly i don't see an end to that. >> you love all your children equally? what is your favorite of the dealerships you own? porsche? you own any porsche? >> we own some porsche, yes, we do. >> is that your favorite? i'm using transferrance on you.

>> it is hard to pick which of your children you love the most. but porsche is one that we love a lot. that's for sure. we love toyota a lot. we love bmw, we love mercedes, a lot of them. >> okay. if you love everybody, it is like if everybody had superpowers, nobody would. >> there is a bunch i didn't name. >> you did. let's not talk about that. daryl, thank you. great to have you on. >> sure. thank you so much. appreciate it. >> okay. coming up, unlocking your potential, best-selling author adam grant will join us with the science of achieving greatness and lessons for leadership in times of crisis. and the next hour, former wework founder and ceo adam neumann on doing business in the middle east as tensio r hnsunigh in the entire region. we'll talk with him live from saudi arabia. stay tuned. "squawk box" returns after this.

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welcome back. our next guest is an organizational psychologist who challenges the conventional wisdom on the best ways for people to learn, work and succeed. want to bring in best-selling author adam grant, professor at u penn's wharton school, host of the podcast rethinking and new book out just released this week titled "hidden potential: the science of achieving greater things." thank you for joining us. before we get into the book, i'm hoping you can help us with

this, we have been dealing with this terrible situation in the middle east and a crisis. and a crisis of trying to get people to talk to each other. and i feel like as an organizational psychologist who has dealt with behavioral and sort of -- behavioral management issues and how people -- is there any lesson, you think, in all of the work you've done, maybe not just in this book, but in sort of where we are for people to think about all this? >> i wish i had an easy answer to that question, andrew. i don't. i think like a lot of people i've been horrified on many levels. i think the -- probably the thing that is most striking to me is just the sheer exhaustion that people are feeling from having to argue. and psychologists talk about impathic distress, the feeling of burning out from caring about other people, but feeling unable to help. and i think we ought to be spending less time bullying people about what they should say online and figure out what we can do offline in real life. >> and, i mean, you've been dealing with -- at the

university of pennsylvania, that's one of the reasons i was thinking about this, in terms of trying to get people to come together and actually talk to each other. but as it relates to this book, "hidden potential," underneath the title of the book is this very idea that we all have some kind of potential that we don't know about, or that we know peo seems like it's very obvious when they have it. you say they're special, something very special. the book suggests there's something special about all of us. we all want to believe that. how is the best way to unearth that, especially in those still trying to find that sort of passion? >> well, i think the place i want to start is to say natural talent is overrated. most child prodigies do not grow up to become adult geniuses. i think that leads us to really underestimate the learners, the late bloomers. if we want to unearth that potential, the place i want to begin is to say there's an

incredible study looking at predicting people's career success in their 20s and found that you could actually predict income from knowing how many years of experience your kindergarten teacher had. >> what? >> yeah. i mean, shocking. how could this be? it turns out if you had a more experienced kindergarten teacher, they don't give you a big edge in reading or math over time. what they do is they teach you character things. discipline, determination, and you learn how to be prosocial and proactive, and you carry those skills with you. we need to spend more time on character skills. >> do you remember your kindergarten teacher's name? >> she was pretty good. >> i remember my first grade. >> one of the things you've thought a lot about is hiring, how to hire people and how to find people in terms of their hidden potential that oftentimes, when you're hiring somebody, you don't necessarily see it in the interview, how you try to extract that. >> well, my favorite practice is

to think a little bit about the trajectory of people's performance over time. so, a lot of organizations use gpa and they think if you got great grades in school, that means you're smart and a hard worker. grade point average is much less useful than grade point trajectory, which is did your grades improve over time. if they did, it's a signal you faced some kind of adversity and learned how to overcome it. >> if your grades dropped at some point and came back, that explains maybe you find out what happened along that path line. but malcolm gladwell wrote about this too. he did this whole thing on how the nhl players in canada all were born in, like, january, december, or february because they decided at aige 5 who's god and who's not. you go through the leepgs that way.

but you say there are late bloomers, later developers, and we get it wrong sometimes because we focus all our efforts on who we decide they'll be at 5, 6, 7 years old. >> that hockey data, it is true if you were born earlier in the year you're more likely to make it. but the later births that do make it become more successful on average. on part it seems to be the case they had to be that much better and faced deeper computation. >> looking at a group of 5-year-olds, the ones six months older have a huge advantage over the ones who are six months younger. that's an excellent point, too, adversity. what were over ways that if you're a recruiter, finding people who have overcome disabilities. >> there's an organization that hires people with disabilities and underdogs. at the end of the interview, they say, how do you think that

went? they give a chance to have a second interview. >> do most people say i want to redo it? and if they say they don't, does that mean you disney plus qualify them because they're not -- >> no. it's fine if you think it went well that you don't ask for a second shot. in my experience, about a third of the candidates want to do it again. it's a great opportunity to see what do they take away from what didn't go perfectly the first time? are they focused on improving? >> if you asked me how i thought an interview went, i'd immediately have self-doubt and say, clearly you think something went wrong. >> maybe you tell everybody they get a second shot. >> a hidden potential issue but how somebody, maybe a job applicant, projects themselves in the context of one of these interviews. truth is, everybody wants to appear to have a sense of

humility, but at the same time you want them to have a sense of confidence and how folks should talk about themselves in front of other people. >> yeah. i studied this a few years ago, and we found that when people get away with self-promotion, when the person's not paying attention. so, the interviewer is not fully focused, sing your own praises can work. if they are, it might backfire. i think there are ways to signal both confidence and humility. i met a woman years ago who applied a job she was not qualified for. she wrote an amazing cover letter theying i'm not the candidate you're looking for, i don't have the years of experience, the skills, but i have a determination to learn, and if you hire me, i'll prove that i'm worth it. i love the way she said i'm not quite the fit, but i'm going to grow into this role. that's a message we should probably communicate more often. she got the job and she crushed

it. >> when you began this book project, what was the thing you were looking to do and trying to learn? was there something that, in the process of writing this book, you uneffunearthed yourself? >> one of my biggest frustrations in my career is i've had a hard time getting useful feedback. when i started to do public speaking, i would ask, what can i learn? tell me -- what are your notes? give me some feedback. i basically heard from cheerleaders and critics, cheerleaders applauding my best self, saying that was great, worthless to me, and critics attacking my worst self-and that was demoralizing. one thing i learned writing this book, instead of asking for feedback, it's better to ask for advice. i should have been asking what can i do better next time, which focuses people on the future.

they see my potential and hopefully help men become a better version of myself. >> adam grant. "hidden potential." thank you. >> thank you. >> when we come back, microsoft shares are moving sharply higher this morning after reporting results last night. in fact, that stock is up by 3.8%. we'll go behind the numbers after this.

good morning. we'll tell you why microsoft & others are growing in opposite directionings. and the search for a speaker of the house. republicans turn to a little-known louisiana congressman as their next candidate. can he clear the high bar the conference has set? we'll bring you a special interview with adam neumann live in saudi arabia at the future investment perspective. we'll get his view on what is going on in israel and throughout the world. the final hour of "squawk box" begins right now. good morning, and welcome back to "squawk box" live from the nasdaq market site in times

square. i'm joe kernen with becky quick and andrew ross sorkin. the dow indicated higher, nasdaq, even though earnings at face value from some of the big tech we'll talk about looked pretty good, the nasdaq reaction is at least -- it's not overly positive. treasury yields, you can see, are at -- 10-year 4.85, below 5.0, least. bitcoin, we'll talk more about that later with anthony pompliano, but it has consolidated some of the gains in the last couple days and moving a little higher, almost at 34.3 this morning. >> the earnings parade is continuing. we have another big morning with a lot of companies reporting. dominic chu joins us right now with the highlights. dom, we're nowhere near the end

of earnings season. this is going to keep coming. >> this is the heart of it. we're getting into the thick of it. meta is the big headliner later this week, especially this afternoon. but let's talk about the earnings reports out this morning. if you look at boeing, which is probably the one that's kind of headlining the action in the dow, it's up a about roughly 3.5%, around 200,000 shares of volume. the aerospace and defense component reported a wider-than-expected loss per share on slightly better-than-expected revenues. boeing will deliver fewer model 737 max jets than expected for the full year as it works through certain production flaws that were found on some of the airliners. it did affirm its guidance for full-year cash flow, which might be that positivity some traders are latching on to. don't miss an exclusive interview with boeing ceo dave calhoun in the next hour on "squawk on the street." next up, general dynamics up

roughly 2.5%, just around 1,500 shares of volume. this is the company behind big military equipment like the abrams take,marines. it reported better-than-expected profits. general dynamic did get hurt by rising labor costs and material costs, as well, so something to watch there. then there's t-mobile u.s., up i 1.5%, profits better than expected, slight miss on top-line revenues, but they raised the lower end of its guidance for full-year free cash flow. it added more wireless subscribers than national championshipses were expecting. shares up 1.5%. and travel and leisure, hilton hotels, the hotel operators down about 1%, 3,000 shares of volume. profits matched estimates, slightly better-than-expected revenues. they boosted its full-year profit outlook.

the ceo expects an uptick in hotel openings in the current quarter, the momentum continuing into next year. back to you. >> we talked about tech earlier. we'll talk about watching the shares of microsoft. the stock is trading higher after earnings and revenue were above expectations. and azure cloud growth react sell rated. now on deck, the launch of microsoft's ai-powered co-pilot. steve kovak is here to understand the quarter. can you do them? >> i'll do my best. >> go slow. >> just for you i'll go slow. look, this is the story. two things to look at here. you have azure reaccelerating growth. why? because of ai. so, all this ai boom we're experiencing, especially when companies choose to use openai, that benefits azure cloud because that's all happening there. you see this chart, it's been

falling for last two years or so, this growth rate. investors are opening this quarter that may have bottomed out and show reacceleration. that's what we got. but in the guidance on the call, joe, they were a little more conservative in their estimates, saying, look, we have a lot of costs going on, optimization to do. they're being conservative in their estimates that maybe it's not going to reaccelerate, but everyone hopes it does, especially because ai contributed more to the growth than originally expected. three points of that azure growth is just ai. >> are they concerned that they just have a lot of costs to deal with? >> that's exactly it. >> or they think customers won't buy it. >> they didn't say that. let's go to the co-pilot angle of this, on sale a week from day, and they were also very conservative in their expectations for that. a quarter ago, cfo amy hood

saying maybe next year we'll start to see meaningful revenue. now she's not being that specific. she's saying we're expecting gradual revenue growth. extremely conservative. but the opportunity is huge. you have over 300 million users on these office apps, $30 per month per user, do the math. that's a yhuge opportunity. a lot of reviews but a lot of concerns. >> we need to expand our thinking about ai, i think. >> it's a comp story, too. >> not just nvidia. can you give me, like, a list of 20 companies that -- >> well, that's the thing. what companies are monetizing ai, i can think of two. nvidia, microsoft. and this is something they were asked on the call yesterday, how are you guys monetizing? they go back to search saying it will enhance search.

have you ever used bard on search? >> no. >> and the answers it gives you? >> it should be a lot better in two months. >> sure. >> in two months, we're supposed to see genesis. >> again, the question to me long term for all of these guys is, is there any real economics in this, or is it basically holding your share? >> right. >> protecting what you already have. >> can you ask ai who the beneficiaries will be? >> i'm sure you can. we have to ask chatgpt. >> nvidia and microsoft, will they come up with others, do you think? it's too weird. >> giving it away for free. they have all that data too. other players will be able to benefit from that, as well. facebook doesn't plan to make money on it. they think it will increase

engagement like google. >> it's a share story. >> protecting what share you already have, maybe growing your share a bit. >> it's not working for microsoft, though. bing is still not growing market share in any way, despite what they said when they first announced it. >> you're suggesting the ai piece? i thought that piece is helping microsoft. >> but that's other people using openai. that's all these companies that are -- every time someone pays openai to use their language model, that benefits azure. there were 11,000 openai service customers a quarter ago. that's up to 18,000 now. >> right. that's money. >> that's monetizing it. and that might also be why we're seeing alphabet hurt so much because the cloud revenues mixed expectations. it's also a signal of how much ai activity is happening in your cloud. >> thank you, steve. >> sure thing. california's department of motor vehicles intended driverless car permits for

cruise, which is owned by general motors. the controversial robo taxi service in san francisco, the dmv saying cruise's vehicles aren't safe for public operation and accused the company of misrepresenting safety-related information. cruise has faced problems in san francisco, one of the biggest markets, as some of its cars stalled on intersections and roadways and were involved in accidents. they can still test autonomous drivers with a safety driver behind the wheel, but the entire experiment, at least in the state of california, being put on pause as a result of all this. when we come back, an interview you don't want to miss. the co-founder and former ceo of wework will join us from saudi arabia.

welcome back to "squawk box," everybody. we've been watching the futures this morning, and while the s&p and the nasdaq are still in the red with the s&p down by 8, the nasdaq off by 55, the dow futures are up by triple digits, a gain of about 104, a lot of

that because microsoft is doing very well this morning after reporting better-than-expected earnings last night. >> meanwhile, saudi arabia's future investment initiative conference is under way. top business leaders from around the world are gathering to talk about the global economy and investments in the middle east. but the war between israel and hamas is to some extent a major topic there as folks focus historically on the economic issues. but this one of course is front and center. joining us from saudi arabia is adam neumann, the co-founder and former c.o.o. of wework, also the founder of flow. he was born in israel, served in the country's military. thank you for joining us this morning. >> thank you for having me. >> let's start with israel. i want to try to understand your thoughts toen what's happening in the region and also some of the thoughts that you have about what you've been hearing and talking to folks about at fii.

this is our first opportunity to speak to you and frankly to speak with somebody at this moment about what the conversation is on the ground. you've been watching this tragic situation play out. given that you grew up there, what are your immediate thoughts? >> first of all, andrew, the horrific, barbaric, sadistic acts that were committed on october 7th, i have no words to describe them. as you know, i'm from israel, but the place i spent the most time growing up was a kibbutz, about three miles off the gaza border. it's one of the main communities that were brutally attacked on october 7th. it's hard to even describe in words.

>> you know, when you look at what's happened, i'm so curious, given that you're now in saudi at this moment, what the conversation is on the ground about all this, even your decision, by the way, to go to fii. a lot of executives were back and forth about whether they should or shouldn't go. just take us through some of your thinking right now. >> you know, andrew, in a time like this, and especially because this is so personal, this was scheduled months in advance. but when this occurred, i knew that i've haven't to go more. as an entrepreneur, i spend a lot of time in kibbutz. i've always respected community and bringing people together. when times are very difficult is when i need and i think we need to push harder. so, for me, there was no question about coming here. what was very uplifting for me is when i arrived here, a lot of

people walked up to me and said, adam, how is your family? how are you doing? and i appreciated that. and then other people walked up and said, adam, thank you for coming. it's so important now, even more than ever before. so, i knew it was the right thing to do. but based on the reactions i got locally, i feel as uplifted as you can feel with the things that are going on. >> and what is the thinking there on the ground about what's happening in israel, what the next operations look like, how to think about the human impact across the board, including on those innocent palestinians? you know, there's been an enormous blowback on some of the israeli operations already.

yesterday we had a guest supportive of the palestinians, not supportive of hamas, but it was a very different kind of conversation than has been happening in other regards. so, what's the talk where you are? >> so, i'm going to try to break down what you said slowly. first of all, i think a lot of people agree that israel has the right to defend itself. i think that goes without saying. i also think that the action of such a horrific thing is also horrific. and i think a lot of people are confusing between hamas and palestinians. there are innocent lives being lost right now on all sides, and that is always horrific. the discussion here is more of a business setting. everybody is trying to come together. i see a lot of different people

from different nationalities, from different religions trying to come together. and sometimes business is a place where people can find common ground and easier than the political setting. regarding what you asked me about israel's reaction and what it should and shouldn't do, except for the fact that i know israel has a right to defend itself, and must, i'm not in a position to state what should and shouldn't happen. i'm not a politician. what i'm doing is my best that i can do as a businessman and an entrepreneur. and i think it's up to all of us right now to find a way we can do our best. but i also think we can do one of two things. we're creators or destroyers. i choose to be on the creator side. >> there were some comments made earlier today by mbs committing to continue these conversations with israel about normalizing relations. is that a conversation that's happening on the ground where

you are? are executives and some of the other policy leaders and others that are will talking about that? >> so, i think the news came late-night u.s., early here, and i think it sends a very positive signal. i also think -- i hope that a lot of people around the world are hoping that the peace talks continue. i pray that they continue. and i was happy to hear that those comments were made. and i really think this is the right direction. >> tell us about the current state of flow. this is your new company, supported by horowitz. i know you're participating in a competition of sorts, not for yourself but for kids in saudi. tell us about that but also the state of where flow is right now. >> so, andrew, after the

discussion we just had, it's a little hard to go straight into that. but i think i'll state it in a way that connects. as i said earlier, i grew up in the kibbutz, and that gave me a lot of who i am, and bringing people together and building community is always what we were about and what i was about. and the wework journey was an amazing one and took us all the way into here. and i was very lucky to find partners. the most important work in our partnership is alignment. we're very aligned towards our views around the world, and we're very aligned on our moral standards. and we're very aligned on what we want to build. flow is another iteration of the same story, which is, when people live in community, when people live together, when people obviously have differences, but they actually find ways to share passions and business, there's always a common ground. and flow started by tackling the

housing crisis in the u.s., 35-year-olds and younger, over 50%. the exact number was around 65% of 35-year-olds in the u.s. were renters. and those renters, that age is only growing. that age will be 70% younger than 40 years are going to be renters. if i'm a 22-year-old and i'm going to be a renter for the next 10 to 20 years, i need an elevated experience. i'm also going to spend a third of my income on that rent. and it just makes sense that i would want to do it in a place where i'm part of the community. i've been saying this more and more when people ask me, but i think we live in a world where we need more friends, not more followers. and flow is using technology and community to bring these buildings together. >> adam, we talked before about lessons learned from the wework experience, but the wework story has shifted since we last talked.

most recently, the company warned that it could file for bankruptcy. i'm curious how you're thinking about that now, both the future of wework and the entire wework story. >> as you know, andrew, i haven't been involved in the past four years, so i've been staying on the sidelines and observing. and when i think of the wework story, put me aside. i think of the unbelievable team that we had that built this global business and the efforts they put for over a tdecade. i have the pleasure of working with some of those team members today, and we talk about how amazing it was. its product market fit is even greater than ever before when office occupancy is at all-time lows and companies are not sure if they're hybrid work or full-time work. it's been difficult to observe from the side and see what's

happening. >> as you look at this and you say there's a market fit, does the model work? and as what's happened to that model shifted any of your thinking or been a lesson for how you're thinking about flow? >> so, as you said, i've learned a lot of lessons from wework, and we're applying all of them to flow. one of them is, when you're outside of a situation it's sometimes hard to understand what's happening on the inside, so i'm looking at things from the outside and see what's happening in flow. in flow, our residents are using our spaces not just to live, but we have co-working, ancillary services in our spaces. we just added conference rooms in our spaces. 70% of our residents work at least one day if not more from home. the future of living and the future of work are really correlated. as we mentioned, i had my great investors, partners, everything i'm going to do in the future

will take the lens of alignment and everything through flow. as a team, we have been observing what's been happening to wework. there is a shift in the model with what happened in the past and what's happening today, specifically in enterprises, working from home, incomes the office. we've been talking to some of the largest fortune 500 company, and their needs have changed. but the need of people working together, the need for community has never been greater. >> adam neumann, i want to thank you for joining us this morning from saudi arabia. we very much appreciate it. look forward to seeing you again very, very soon. thanks. all right. still to come, understanding this week's big moves in bitcoin with crypto investor anthony pompliano. plus, more high drama expected in washington today. is the gop ready to pick a speaker of the house? first, a reminder as we head to break. you can get the best "squawk box" in our daily podcast.

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welcome back to "squawk box." the futures about what we're seeing for multiple sessions, although the nasdaq has narrowed

its loss. the dow has been ticking a little higher, almost triple digits. yesterday the s&p had its first positive day in the last six, and the dow the first positive day in five. it sometimes keys off of this next board, treasuries. we saw the 10-year earlier in the week firmly es konsed about 5.0 but not that much because it went down to 4.85 this morning. elsewhere, we did speak about microsoft as one of the other big tech earnings moves in the premarket. alphabet shares down almost 6%. earnings and revenue beat estimates in the latest quarter. revenue drew 11% overall, and ad revenue rebounded. google cloud revenue missed expectations. we are monitoring shares of snap, the stock surging as much as 20% after hours and beat

estimates on key metrics like average revenue per user. in addition to revenue and profit, they returned to revenue growth after two quarters of declines. the stock came down on news that some advertisers paused spending when the war between israel and hamas broke out. the company was largely below expectations, but the stock has moved up a little bit here, 2%. when we come back, we are going to talk about bitcoin's latest rise and whether investors can count on a durable uptrend. is this going to last? investor anthony pompliano will join us. plus, take another look at some of the key companies that reported earnings this morning. we'll see boeing right now up by 3.75%. ja general dynamics up by 2.8%. after the bell this evening, we'll hear from meta platforms,

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bitcoin is up again this morning. earlier this week it crossed 35,000 for the first time since 2022, double for the year. optimism is surrounding the possible eventual approval of bitcoin spot, an etf. that has something to do with search. anthony pompliano joins us now. there was, i guess, some etf news, although you would argue it was -- blackrock yesterday or the day before. >> to understand where bitcoin is right now, you have to go back to 2018, 2019. bitcoin had been up. what happened, and druckenmiller said it was the thing that convinced him to buy it, he said none of the bitcoin really sold.

>> still 56% long term right now. there's no supply for it either. >> it's highly liquid. 76% hasn't been sold in the last year, 56% in two years. what we saw, what drove bitcoin's price from that $3,000 in about three years is there's a supply and demand shock. printing of money, low interest rates. we look like we're headed back to that. right now we do have high interest rates and they're trying not to print money. they're trying to fund two proxy wars. we have a southern borpder issue, all sorts of inflation they're trying to combat. what's likely to happen is they're going to have to return to loose monetary policy. when they do that, it is likely to coincide with bitcoin. >> near term, talk about the etf. nothing has hammed in the last three weeks to indicate it's any closer. >> i definitely think it's closer. >> three weeks went by. >> but also blackrock is now going and seeding the fund.

>> seeding the fund in october, which is new. >> correct. so, they just fomented the application. what you're seeing is they're getting prepared for the approval. >> they may know nothing either. >> they may know nothing, but i don't think blackrock would go through all the effort. there's reputation risk here. people know what they're doing. it's more likely it will get app approved. >> you have three democrats and two republicans. one republican said, i have no idea why, it makes no sense it hasn't been approved yet, but she has to convince her colleagues. >> at the end of the day, bitcoin doesn't care about the politics of it all. the thing is bitcoin is just highly disciplined, right. it is the most disciplined central bank in the world. it doesn't care about news or geopolitics. >> but the price of bitcoin does. >> the price does. >> it cares very much. >> bitcoin is up 100% to start

this year, right. i don't think a lot of people recognize that. remember, it was at $69,000, drew down to $15,000. it's up 100% to start the year. the market is telling us something. we're watching capital flowing. >> no one's calling it a flight to quality. let me see if i have this right. can the government issue more than 21 million bonds? >> the government can issue as much as they want. >> right. how many bitcoin? 21 million. >> one of the most important data points i saw recently that opened my eyes was tlt from the high in 2020, 2021, is down about the same where bitcoin is. bonds were a flight to safety. some are buying them, but there are others given bitcoin, a finite asset, where you get price appreciation. >> anthony, what washington does is very, very important. if it weren't, there wouldn't be

so many bitcoin enthusiasts trying to do so much to spend money there and try and influence, like a sam bankman-fried or anybody down the line, what washington decides does matter. and i would think that having them decide something would be helpful. just rules of the road, would probably -- >> so, i think the companies that deal with bitcoin or cryptocurrency, they care what washington is doing. they're the ones spending the money. bitcoin is a decentralized protocol. they don't even have a team behind it. i think the companies very much care, and they are lobbying and trying to get these clarity of rules and try to push this forward. but bitcoin itself, if the government came out tomorrow and banned bitcoin, everyone else around the world would say, okay, and they'd probably buy it because all of a sudden they would say, hey, this is outside the system, something that isn't controlled by a government or individual. it's this very interesting thing where decentralization of the protocol really matters, but the companies, they're still centralized with american citizens running them, and they

definitely care what is going on in washington. >> so, you think when, above the old highs, when, and how much higher above the old highs -- >> hundreds of percent of appreciation when we get to these markets has been the norm. i don't see that changing now. >> then back to where? >> look, there's a cycle, right? it's very much -- >> it's a hideous, frightening cycle that just shakings you to the core when bitcoin comes back down. they went to 17 from 65, right? >> people have been on this show for years talking about all the stocks that went up and down a lot over a long period of time. they were great investments. you had to hold through it all. i think bitcoin is the true free-market asset, right. there is no circuit breakers, nobody bailing it out. when we saw ftx and other companies go in, other companies didn't rush in to bail them out. there is this element of a free-market asset will have way more volatility than something inside the system. >> it's a little weird. you wouldn't say there's been

risk on in tech over the right-hand side of that. this has not been a risk-on environment from 25 to 34. it's gone up 40% in that environment. it looks like it's not correlated now. that's where larry fink got the idea -- a lot of people see it as anathema. >> one of the things people have to remember is the best investors in the world act completely differently than the herd. right now the herd is saying we're risk off. every great investor i know is going risk on. they're buying this asset because they know prices will go back up. >> higher for longer. higher for longer. higher for longer. >> it's math. you have a $33.5 trillion debt. you added $500 billion in the last month. we're sending hundreds of billions of dollars for these proxy wars. if you're going to continue to

raise the national debt, you have to inflate it away. loose monetary policy has to be the standard coming up. >> we talked about the buy the rumor, sell the news situation, which is, if, in fact, this etf exists or there's a big announcement, is that a great day for bitcoin, or is that baked into the price and you needed to have gotten in there beforehand and it goes down afterwards? >> a great point. historically on these events, the etf probably is going to be something like that, where if you saw this fake news, i guess it was, where the etf got approved but it really wasn't approved, the price went up in minutes and drew back down as soon as it was determined it was fake. you probably will get some sort of short-term movement out of the excitement. but i do think that this anticipation is driving the price up. you're just eating into what was potential returns on the approval. so, the question isn't so much

what happens on day one. galaxy digital came out with a research report. they think $14 billion will go into the etf in the first year. if that happens, what does that do to the price? their expectation is it will drive the price 75% higher. that's just their estimation around etf. if that's true, that's big for an asset already hundreds of billions in market cap. >> i like getting into the cult. when is the next halving? it's coming, isn't it? >> yeah. less than a year away. i do feel sometimes like we're talking about things the same way people talk about whgs your birthday, when is -- >> the halving is coming, becky. >> i've heard this, yes. >> andrew. prepare. >> i know. >> prepare for the havplving.

it's coming. >> i'm kidding around, but i think it's great. what 's the stock at flow right now? do you keep track? >> 900 bitcoin are coming into circulation every single day. they'll cut down to 450. the reason the halving is important is it disproves the hypothesis. everyone knows it's coming, but not everyone will react the same. >> cheaper than gold, the stock at flow right now? >> i don't know what theirs is. bitcoin has continued to become more and more attractive over time. again, 76% of all bitcoin hasn't been sold in the last year. that's from $69,000, down to $15,000, back tho $34,000. went you look at these numbers, why are peoplenot selling? they obviously have a long-term belief in this asset. if the etf is approved -- >> they're also some of the craziest people on twitter, as you know. >> there's a report yesterday

that the wall street executives supposedly are shocked at how much interest there is in these products. i think what we're watching in some weird way is wall street is being introduced to the internet, but it's not the internet versus wall street with the meme stocks. you're seeing wall street and interpret net get on the same side of the table and wall street is getting excited. they say we'll have an asset or fund that people want. that could be interesting for us, so maybe we should -- >> particularly at a time when there aren't a lot of over fees on wall street. not ipos, no m&a activity. >> you could be anywhere on the planet in a place where the currency knows what it is in that country. and if you have a phone, you have something that's not going down. >> would you use it? >> for what? >> for a hotel room? people use it to pay for a

pizza. is it an investment -- >> it's gotten back -- >> never going to want to spend it. >> it's gotten back to $34,000 without anyone arguing its use as currency. no one is arguing that anymore. >> i think it's rational. the dollar is the greatest of all time at the moment. if you want to spend something, spend a dollar. bitcoin has been a historic value. people are holding on to it. the promise of bitcoin is it will become electronic cash. the dirty secret is if that never happened, i'm not saying it won't, but if it does, bitcoin will be highly valuable as a storable value. there's a ton of upside. that's why investors are excited. >> i appreciate your disclosure. >> i own bitcoin. >> so do i. people need to know how rabid you are in terms of bitcoin and take that into account. you could be totally wacko,

right? >> maybe. people lie, markets don't. >> all the things you say, if you look at it closely, it doesn't care what anyone says about it. >> pretty unique. >> thank you. when we come back, the latest on gop efforts to pick a speaker of the house in washington. we have a live update next. right now, though, as we head to a break, a reminder, you can always watch or listen to us using the cnbc app. hey you, with the small business... ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall.

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welcome back to "squawk box," everybody. the futures this morning, all right, we've pared some of the gains we'd seen in the dow earlier. it's now up by about 65 points. s&p futures down by about 14, nasdaq down by about 73. one of the big earnings movers is boeing. it is higher despite the company saying it will deliver fewer 737 maxes than it previously expected this year as it works through production flaws. despite those production problems, boepg maintained its expectations for 2023 cash flow of $3 billion to $5 billion, and the stock is up by about 2.8%. we're also monitoring microsoft and alphabet following those companies' reports of earnings. microsoft, as you can see, up by about 5% now, so the gains there continuing to climb. alphabet is a tale of a different situation. alphabet shares are down by

about 6.3%. it beat expectations both on the bottom and the top line, but growth in its cloud business was a little lighter. when i say a little, i mean a little lighter than analyst expectations. you can see that's kind of how they're reacting to it. the gop will try once again to pick a speaker of the house with the vote coming as soon as just a few hours from now. emily wilkins joins us with the latest on this. i guess fourth time is the charm, maybe. >> reporter: that's what a lot of republicans are hoping, and we'll find out soon, if mike johnson has the votes to become speaker. he's got to get to 217. right now, chances are looking pretty good. republicans were in a celebratory mood last night. they let reporters into the room where they've been voting. johnson announced that no republicans had said they would vote against him on the floor today. caveat, of course, is there were about 20 members who were absent and 3 members who voted present. johnson will continue to talk with folks that he can only lose

the votes. he doesn't have the same national profile as a steve scalese or jim jordan. his cleepgs say, look, he's just this nice guy they enjoy working with and a bit of a policy wonk but he would be further to the right he did vote earlier this year to raise the debt limit and he has interest in ai. two primary lawmakers with dozens of members to open earlier this year. if he becomes speaker, he will have other things on his plate with the shut down only a few

weeks away. one of his messages last night, it's time for republicans to get back to work. >> you can only lose four or five votes, as you mentioned, 20 members not being there. it sounds like more or four than five members. were they not there because they had other things going on? >> it sounds like they had other things going on. lawmakers were asked about the absences. look, we have looked at the list of names, we are not worried. we need a speaker and to get back to work. they have no major beef with micah johnson. he has a little bit of a lower profile and does not have the baggage that other speaker candidates have. at the same point, he will have a much bigger learning curve stepping into the world. learning about policy and going toe to toe with president

biden. it is a big deal for republicans. that is something that johnson left to figure out if he wants to be speaker. >> you said baggage, experience in leadership? >> thinking more when you get leadership you have to make decisions that do not make other members happy. this is the drama with the leading and politics. folks were not happy with certain things. they went back a while and micah johnson as that which he is bringing up with him. >> you will not make anybody mad because you have never decided. >> at this point, this is who the republicans are getting behind. he can get to 217.

>> okay. if you had to place a bet on it, what would you say? most likely yes, most likely know? >> at this point, most likely yes. the response of lawmakers yesterday. they could say that we are all behind micah johnson. that's not something we saw. >> what about the biden district guys that are worried about getting re-elected? right, they are not worried about it anymore. that's all anybody is worried about. getting re-elected. >> it is to a certain point. jim jordan has a certain profile. he has led attacks against the biden administration. he has conservative policies

and conservative votes. he does not have the same national image. >> the 24 missing are they moderates from biden district or no? >> i would call them classic conservative. it is just main stream republicans. maybe thank you, emily. let's get a pulse check on retail investors. you are watching squawk box on cnbc. e answer.♪ ♪i sat down with my doc.♪ we had a talk. ♪knew just what to say.♪ ♪i asked for cologuard and did it my way.♪ cologuard is a one-of-a kind way to screen for colon cancer that's effective and non-invasive. it's for people 45 plus at average risk, not high risk. false positive and negative results may occur. ask your provider for cologuard. ♪i did it my way!♪

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half an hour to go before the opening dow. joining us for the markets and types of flows for retail investors. the north american ceo. we started the show with paul makes. when you look at the technicals for big tech, things have broken down. below a 50 day moving average on a lot of these big stocks. has the flow of retail kind of match that up? >> when you look at particular

stocks coming up this week, microsoft was the standout in terms of when people saw some bullish activity. from the rest of the stocks that came out last night and coming out tonight, it is a little more bearish to be honest with you, it goes more to the bullish side. when we come to a more 50-50, that is the bearish side for retail. people are closing out positions that they already have. that is what we are seeing when you have meda and amazon coming out. people are on the 50-50 line. it is a surprise. last time it was on, everyone was a bomb trader whether they wanted to be or not.

good for the market this week, we are talking about earnings. we are not talking about people following fixed income wherever it goes. people are trading that way and it will bring a little more clarity after this weekend hopefully next week where we go in terms of the individual stocks themselves. >> it is more likely for them to be bearish, is it the headline risk? >> the headline risk. the fed has not decided anything. the market has done a lot of the work for them. in the november meeting, nobody expects anything. there is nothing that looks fantastic. there is a lot f questions about will happen there. amazon can give us some clarity

tonight. where we are seeing bullishness over the last couple of weeks, the last couple energy providers. over 70%. >> i had to cut you off, were at the end of the show. great to see you guys. >> that does it for us today. were out. >> were done. welcome to squawk on the street. futures are split this morning, the dow will benefit for the microsoft. screwed on the slowdown for cloud. meda and ibm tonight. we begin with the alphabetic cloud conundrum. top estimates.