chekt out united and csx pmt phil lebeau in orlando on united seema mody on orlando and phil we start with you and united >> melissa, i think analysts like what they say see with you knowed earnings and i just got off the phone with andrew davis, the airline analyst from t row price. he said look this was a good quarter. in particular he thinks most analysts will be impressed with the farr quarter guidance opinion the guidance from the fourth quarter up three to five%. most analysts expected probably closer to 3% they will be impressed that they are expecting great are than 3%. he summarized everything by say looking, the strategy appears to be working the strategy of adding more flights, more seats from smaller cities to united hubs. that's driving greater revenue we are talking about united ceo oscar munoz tomorrow morning on squawk box at the ual headquarters in chicago, talking with oscar about the strategy working, the fourth quarter guidance where they go from here back to you. >>> thank you very much phil le be airline holder tim kick it off. >> united to me is probably the wea

no wonder csx came out with encouraging numbers. however, csx has run dramatically for the year and even sold off in the news. i think union pacific is a better by. thanks to last week's meltdown come on, isn't that a bullish sign let's talk about boeing. you know i have loved this one for ages even after last week's sell off, boeing up 24% up for the year. the stock has been a juggernaut. this story is all about the long-term rise of the global middle class, as people in developing countries start to become wealthier, they start spending money including air travel demand for these planes vastly out it shall most importantly the company has 5,900 planes in its back lot ever since the trade wars have been heating up, people falling over with consternation that boeing could be hit. let's think about this if the chinese decide to cancel their orders, they will have to go to the back of the line to buy planes from air bus. inshort, aerospace is hot -- when i say weakness, i say down, ten, 12 points because the stock trades wildly third

when we was running csx.upgrades of american and united can they recapture the price of oil and continental ken? >> right you should be hammering me on contine continental. >> why >> because that was the one that did not fit my thesis at all >> some of the hedging strategies have paid off big time >> yes >> these companies are buying baa back stocks and they're growing. these are not the right brothers >> no, it is not >> it is not pan am. >> remember pan am and twa >> it is not any of those. >> no. it is not. >> which was the one that went bankrupt >> remember texas air? >> i remember trump air also >> remember that >> briefly >> guys, i want to talk about campbell, it is down 2.5%. it is a story that we have been watching closely as the third point seeks to replace the entire board of director at campbell as i pointed out a number of time reporting on this he hope to turn one or more of the durante family members who of course together own as much as 41% of the stock. this morning in a press release, campbe

and also, you said csx and who was the fourth? >> norfolk southern. >> csx will actually be ready in two weeks for us to be contesting, we should have no problem in csx territory, it is son rail and tri-rail for us that we would be running under the alternative schedule. >> so, i would like if you would submit for the record please, the number of passengers that travel daily on tri-rail and son rail. i think those passengers should be fully aware that ptc has not been implemented and also, they need to have an idea of your alternative schedule of when it is going to be implemented. i think that is the least we can do to inform the citizens and i am talking about my state , i am sure other senators have situations, particularly senator blumenthal and the heavy traveled northeast quarter. mr. corbett, in your testimony you stated seven years had lapsed since new jersey transit awarded a contract and then up until 2014, the agency had only one full-time person assigned. to ptc. i know you said you started later, give me your opinion,

we should have no problem on csx territory. rail.son rail and tri sen. nelson: so, i would like, if you would submit for the record please the number of passengers that travel daily on tri rail and sun rail. i think those passengers should notully aware that ptc has ien implemented and also think they need to have an idea of your alternative schedule wei think that is the least can do to inform the citizens -- and i and just talking about my state here i am sure on their senators have that situation, particularly senator blumenthal and the very heavy traveled northeast corridor. mr. corbett, in your testimony is stated that seven years had elapsed since new jersey transit awarded a contract and up until 2014, the agency had one full-time person sign to ptc. i know you said you started later, but to give me your opinion here and how is this possible? speculate ono not like to what contractors do or don't do. i assume they did not take the existential threat to the end of february as serious. without the deadline would move and i do not look back on what m

so we should have no problem on csx territory. it's really sun rail and trirail for us that we would be running under alternative schedule. >> so i would like if you would submit for the record please the number of passengers that travel daily on trirail and sun rail. and i think those passengers should be fully aware that ptc has not been implemented. and also, i think that they need to have an idea of your, quote, alternative schedule of when it is going to be implemente edimp. i think that's the least that we can do to inform the citizens. and i am just talking about my state. i'm sure other senators have got situations -- particularly senator blumenthal in the very heavily traveled northeast corridor. mr. corbett, in your testimony you stated that seven years had elapsed since new jersey transit awarded a contract. and then up until 2014, the agency had only one full-time person assigned to ptc. i know you said you started later. but give me your opinion. how is this possible? >> senator, i don't like to speculate on what moti

united airlines and csx all reporting. we'll bring you numbers coming up >> a new proposal could force companies to reveal prices in tv ads. we have details when closing bell returns (beeping) experience the lexus rx with advanced safety, standard. lease the 2018 rx 350 for $439 a month for 36 months. experience amazing at your lexus dealer. >>> welcome back to the closing bell every sector in the s&p is green right now. leaders are technology health care consumer discretionary all with at least 2% gains and 1% gains for utilities. strength in industrials as well. best day for stocks with this afternoon surge since back in march. >> indeed. as part of the trump administration's plan last night the secretary introduced a rule that would require drug kbacomp to include the list price in tv drug ads we know these ads where we see people frolicking in fields for some drugs it could mean tens of thousands of dollars for year. yesterday pharma said yes, we want more transparency we'll include a link where consumers can find out

reporting what. >> chesapeake or csx. >> chess ee railroad used to be called chesapeake that's how old i am. >> right process >> yes, thanks. >> the a horse. >> exactly with that said pretty outstanding quarter. we said it needs to get above $75. look where it is two days later tp trading 68. good quarters have been faced with selling bad quarters companies get obliterated completely different than six months. with that said, yes i think there is further downside. >> banks were tough today. industrials were tough. >> yes. >> transports were tough today. >> right. >> small caps, technology. >> thank you for pointing out everything i have. yes tu -- not every single thing. yeah pretty much every single thing. banks were the least of it i thought in this market that was fine for me, industrials, my exposure tos industrials uri united rentals was awful. i thought the reaction of the stock was way, way bigger than what they actually put out you know, so we china overnight. that's spooked the market. and then so caterpillar traded down and the industrials are down united rentals is an entire

the stoms didn't advance csx. did not advance. certain industrials, ppg the tape is poor you're not getting rewarded for good results what if the results are poor >> are you concerned that some of the stocks have seen declines going into earnings? therefore the setup is better for them >> yeah, yeah. wednesday, thursday, the 24th, 25th we have two of them reporting in if we go down another 5% the next few days, it doesn't show up as great press. i'm billing this as bit of a hedge here risking three to maybe make ten if we're down about 10% over the next month with all these events, that makes a lot of sense to me >> that's the other thing. we were looking at the peak to trough decline of about 7% you're risking about 2% to make your bearish bet there to me from a risk/reward basis, it makes sense it's trading at $173 three bucks to make a directional bet. seems there's a good reason to makt >>> from big tech to big burgers. let's talk fast food stocks. mcdonald's outperforming with a gain of about 6% the rest of the fast food stoc

companies raing the fourth quarter forecasts on analysts raising the forecasts are not being rewarded csx. vf corp. all posted earnings beats. fourth quarter estimates raised but all trading down since the reports. tat's going on? the market is tryifigure out if the positive outweigh the nchgts right now and some are worried the positive momentum from the tax cuts are wains a bit. rememb what the stock market has been rice on on higher revenues tax cuts and partially redu regulations. but new headwinds have emerged inhe last several months tariffs higher rates, higher commodity costs and now country specific issues c weighcerns over china slowing be italian policy andaudi arabia which is important since saudi arabia is a major investor in technology funds. goldman sas noted that 56% of companies beating easterning expectations a of friday's closed underperformed the s&p. normally we would see outperformance ofr than 1%. not happening. so far companies that are missed on earnings underperformed the s&py 3%. that's worse than the historic averages. what do we make ofar thet when those that

csx did not advance. banks not doing well certainly industrials, ppg, the tape is poor you're not getting rewarded for good results what if the results were poor? >> are you concerned that some of these stocks have seen declines going into earnings and therefore the setup is better for them >> yeah. let's look out to next thursday, wednesday, thursday, we have two of them reporting. if we go down another 5% in the next few days, it doesn't set up as a great press on the short side that's why i am billing this as a bit of a hedge here. but listen, risking three to make make ten if you're down about 10% over the next month with all of these events, that makes sense to me. >> that's the other thing. when we were locking at that peak to trough decline of about 7%, you're risking about 2% actually, maybe a little bit less than that to make your bet here and, to me, from a risk/reward basis, that makes a lot of sense. you're not risking a great deal of the underlying, it's trading at 173 as it closed today. thr

csx one of the biggest rails did not advance. banks not doing pel. industrials ppg it's like an old fashioned tape reader the tape is poor. you're not rewarded for good results. what if the results are poor >> are you concerned that some of the stocks have seen declines going into earnings and dlfr the setup is better for them. >> let's look out to next thursday, wednesday, thursday, 24th be 25th two are reporting if we go down another 5% in the next few days doesn't set up for a great price are press on the short side that's why i bill this as a hedge here but listen risking three to maybe make 10 down about 10% the next month in the increasing volatile market with you will a the events that makes a lot of sense to me. >> and that's the other thing. when we looked basically at the peak to trough decline of 7% you risk what about 2% actually maybe even less than that to make the bearish bet here. to me, fl a risk reward basis that makes a lot of sense. you are not risking a great deal of the underlying. it's trading at 1937 closing today. three bucks

csx will let us know if there is a pause or something bigger going on be careful the problem is lam research, warned us early on that there could be trouble in semiconductor paradise didn't indicate when that slow down might be. unless ceo traces out a more positive second story. wednesday, we hear from avid laps this is run by brilliant miles white. i am expecting a good quarter and a nice forecast boost. i think abbot is the best place to be. we also find out how united rentals is doing this is a terrific company at the same time i worry about construction thursday nucor reports this company should be making a fortune. if the numbers aren't great, i think it will be surprising to wall street after the close, we get a call from paypal bounce of $79 today. i told action members you had to buy the weakness, something i will stress again at the boot camp that we will be running not to mention how the recent acquisitions will be working out. we will be working from another payment play american express. the stocks go down on the numbers and then bounce back up could happen again friday may be t

session even despite good numbers out of jpmorgan, citi and wells next week morgan stanley, netflix, ibm, csxname it that will be huge. >> today in social, snap is way up a bit of a rally of the unloved there, up almost 5%. twitter doing pretty well also up 2.5%. facebook one of the few tech stocks i'm looking at that is not higher that is off by two-thirds of a percent. >> the big cap stocks have been not hit as hard this week. >> let's hear what kudlow tells the judge. let's get to "the half." >>> thanks, carl i'm scott wapner stocks are bouncing back following the biggest two-day sell-off in eight months is the worst of the correction now over is it really safe to buy stocks? it's noon and this is "the halftime report. >>> larry kudlow is back on "the halftime report. on the agenda, fed fight, the trade battle, and how fast the economy is really growing. plus, market veteran liz ann sonders on whether or not it's time to buy stocks after this week's stocks. and a big call on beaten down netflix as we debate big tech after the beatdown "the

down on trade war fears recently, as they have lessened, they have been moving up deere up, fedex up, csx industrials associated with that change important thing, china internet stocks, a disaster i mean, just new lows consistently, recently but they have suddenly begun to stabilize. and again, this is an attempt to reverse that trade, sell the china stocks on the trade war fears. still not complete on this remember, china retail markets still very, very volatile. so this game is not necessarily over i'll say in china, it's quiet for the moment here's the key story on the trade war plays and what's unwinding right now. number one, we have long u.s. small caps again, that is starting to change a little bit here short global industrials here. that has been changing, as well, a little bit short china stocks sk s and emeg markets, that's changed a little bit. long india, that has also begun changing a little bit. india's a little bit of a separate global play from the rest of the markets. guys, back to you. >> robert, thank you very much major averages keep pushing to those record highs, an e

other names to the down side in the nasdaq 100, wynn, biomarin and csx. very few positive names today but among them is tesla, up over 9% back over to you >> all right, kate thank you very much. rising tensions driving a steep sell-off in asian markets. that's really where it all began today. china's stocks diving again overnight, now down 8% this month. more than 20% for the year so far. that's a bear market, folks. the emerging markets now on pace for their worst month since august of 2015, and seema mody is watching all the dirty work >> big news there. chinese stocks falling deeper into bear market and all eyes are now on a key etf that tracks global stocks. it's the msci world etf, now dipping into negative territory for the year traders are also watching the index closely, flirting with correction territory only about half a percent away from hitting that level. it is those china growth concerns sending stocks across asia lower, japan, south korea, india, all down about 2% to 3% and pain being spread to europe as well. the stock 600 index there clos

of higher prices as well, is it still a net positive many cases with some of the companies so far, csxher one, costs may be rising but prices are rising faster. >> which is great if it works. there's suspense, see if they can push pricing, if it effects demands. consumer packaged goods, that's a theme, too that's where we're at in terms of basic market debate, we're probably there awhile. later in the cycle, is the fed friend or foe. how much longer in terms of expectations leading indicators, up again, they peak well or have always before an economic cycle ends. is that assurance or what does it mean for main street versus wall street, too >> how is the year shaping up overall, markets wise, compared to where so many prognosticators expect it. we tend to think of it has been a good year, you look at the charts, i don't know >> s&p up 4% year to date or something, so on track for mid to high single digits, if it glides up from here. i think that's probably not too far out of the zone in terms of overall, but i think that the predominant traits, own financials, leave the growth stuff be

. >>> csx's late effost earnings d forecast and they are raising revenue for the year the company benefittingm cost cutting and for higher prices for shipping freight. shares up about a half percent >> contessa, thank you very much for that >>> in other corporate news, google's youtube suffering an outage overnight users were unable to access the website for more than an hour. they were greeted about a blank page that did not show any videos users on the youtube app also received similar error messages. youtube acknowledged the outage and fixed the problem. shares of alphabet, as you can see there, up by almost a percent in the early trade following yesterday's big gains for the nasdaq >>> uber is reportedly in talks to spin off its self-driving car unit the "the financial times" says the company is considering selling minority stakes in its advanced technologies group as uber tries to cut costs ahead of a potential ipo. "the financial times" says in a spinoff uber would still keep a majority ownership stake of that serve-driving car unit uber has not commented on the ft story. >>> and switch

maybe these stocks are all wrong, every one of them maybe the fact that csx went down after that fantastic nothing. perhaps we shouldn't care about ppg and maybe the fed thinks the action in the stockley is arbitrary, capricious and random if that's what powell believes he won't blink but if he's more in touch with reality this would be a great time to say, we'll reassess after the december rate hike those words would send us soaring higher but whether or not we'll hear them, that's an open question. stick with cramer. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for? >>> tonight american greed has two episodes at 9:00 $37 million insurance fraud and then the daughter figures out how to strike it rich killing her mother two hours of "american greed." i

for the most part, they've been better than expected i think about csx.poke to the ceo there earlier today who said he thinks economic growth is strongest and will continue to be strong until next year from the lens of the freight side and the railroad side of things i mean, given the fact we have started to see softer data potentially slowing globally, how long can the u.s. really sort of continue to fire on all cylinders? >> yeah, i think that certainly the 4.2% growth from the succeed quarter was astonishing. although, if you consider it was fed largely by the tax cuts, that's great and that's following through obviously with earnings. we're seeing 20% earnings growth year over year the problem is next year those comparisons are going to be very difficult. and expectations are in the mid to high single digits in growth. part of the reason, even before we saw this downdraft, that equity investors were rather skeptical that this 20% plus earnings growth rate wasn't sustainable. and that's why we saw a market up 7% to 10% against a backdrop of earnings th

first off railroads had been great performers this year with csx and union pacific all up double digits into the month, but now they're selling off. they're down double digits in just the last month. and the truckers have generally underperformed but have slipped further in the last month with big names like schneider, knight swift and ryder and westerner. what exactly is going on here? higher fuel costs are affecting the airlines. outside of that the fundamentals have been strong. there's also been very tight conditions in trucking supply and there's been tight labor market conditions, so supply doesn't seem to be a big issue, the concern seems to be the demand might, might be slowing down. that's what morgan stanley thinks today. they downgraded the freight transportation stocks based on concerns over slowing demand. they emphasize they don't see a recession but some of their proprietary data points a modest slowdown in demand. but the broad economy really remains very strong. no matter who wins the election, there is going to be attempts to pass an infrastructure bill and that will c

little bit more of a profitless prosperity story >> you cover the railroads, i mean look how crazy csx and kansas city, those stocks went parabolic for a couple of months. >> you mentioned we're off 3 from the highs in a world where japan and france are down 9, korea down 20, mexico down 30, brazil is down 50, how much of that is catching up to what planet earth has done >> another of the catchdown aspects of it. so the u.s. pulling back to at least close the spread a little bit. it makes sense in that context i do think one of the bear points that i've been kind of coming back to, and it's not so much bear, just more of an observation. look at the abundance of good news it has taken the s&p to get to a high single-digit gain year to date. you had 20 plus percent earnings growth you have dividends and buybacks in shareholder hands unemployment below 4 you've got the index muscled up to like an 8% year-to-date gain coming into this week. so that leaves the question is the market being just less generous about how it credits what all this good news is and how much it will continue into n

we'll get results from netflix, ibm, united continental, csx we will bring numbers and analysis and interviewterview since taking the role at ibm see you then >>> dow up 331 going to watch to see if the rally can hold and bldui "squawk alley" starts in a couple of minutes. ♪ ignition sequence starts. 10... 9... guidance is internal. 6... 5... 4... 3... 2... 1... ♪ state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $339 a month for 36 months. experience amazing, at your lexus dealer. ♪ ♪ daddy, mommy's on the phone! hi! how are you guys? ♪ >>> good morning it is 8:00 a.m. at microsoft headquarters in redmond, washington 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ ♪ ♪ >>> good tuesday morning welcome to "squawk alley." i am carl quintanilla with morgan brennan, jon fortt at post 9 of the new york stock exchange a big rally under way. close to session highs, surging after a good start to earnings season the big question is are stocks still cheap and is now the time to get in. joining us, mark may, who upgraded netflix ahead of earnings du

csx wasn't bad.o 75. >> alcoa is having a nice day. >> how much did you see that theygained from tariffs? 27 million. >> their net loss was 41 million, 22 cents a share, excluding special items. revenue is 3.4 billion. generally, jim, a positive -- there it is. positive response in the market today to these numbers. >> the one company that was supposed to be not so hot was great. the one that was supposed to be great is struggling to find a buyer because it bought a company involved with an aerospace where they overpaid. >> you are talking about iconic where there are reports of private esquity. >> it would be a large deal for private equity requiring a club deal. the equity check is too large for any one. although there are plenty of reports, that continues to be the long in terms of the possibility. that would be one of the biggest we have seen in a long time. >> i think that there is enough negative news whether it be apple or a couple of industrials or the regional banks that continue to disappoi

comment the company made they're not going anywhere or doing anything united rental and citigroup and csxnd vf corp. this is good news for the company and it is not. this is broader going on and broader concerns of individual earnings for these companies the debates very simple. do the positives out weigh the negatives or not remember the positives that we have seen earlier in the year. we had stocks rising on the strong economy and higher revenues and stocks rising on tax cuts and reduced regulations. all of this and what powered the stock market in the end of 2017 into the early part of 2018. thirn thir things are a little bit different now. we got head wings that are emerging and we got the tariffs and higher material cost and we have china slowing down. we have a lot on the geopolitical situation here is the question overall that we are dealing with how much real contagent right now? it is confine today the way alook i look at the market i don't see a lot of credit disruption which bothered me a lot. when i look at the spread down here of the big stocks spreads are still pretty tight

speaking of earnings, a lot of positive notes out this morning on csx after earnings beat its management citing positive pricing trends shares reversing course here, down about 2%. union pacific and kansas citi southern report later this week. so far, about 10%, the s&p 500 has reported earnings and more than 90% have surpassed eps estimates. some talk of peak margins, but evidence a as to whether that truly is a headwind for the market now, just take a look at the fed meetings minutes, expected in about an hour, ahead of that, housing stocks continue to underperform on that weak data don, back to you >> thank you so much seema mody at the stock exchange let's talk a little bit about some of the report that we are finding in the marketplace right now. maybe some of the reasons why we are bouncing let's take a look at three charts the s&p 500. first of all, this purple line here, the 200-day moving average, that longer-term trend line we've found some areas where these things have come close and bounced off these area we are right there again around 2767 is that 200-day moving average, so

a number of those railroad stocks moving to the downside and among worst performers in the index, csx on the railroad side is having its worst day so far. that's one name to watch and take a listen to what's happening with the airline stocks because even with lower oil prices to some degree are not finding any kind of a bit. they are caught up in it the transportation downdraft railroad and airlines two of the key parts here i would also point out that as we take a look at the etf, one of the keith etfs, the ishare average etf, this is the ticker iyt, it's now traded more than double its average daily volume today. also worth noting that the dow jones transportation index has now fallen below its 2,400-day moving average or the longer-term trend line, the first time since back in judgment as we take a look at the overall picture for the market and narrative that's developing, there are certain key hot industries and sectors the transportation stocks had been one of the real standouts towards parts of this bull run higher it's now leading the declines. it will be something that we're g

but the revenue down today after missing forecasts down 2% from the same period a year ago >>> and csx were helped by cost cutting and higher prices for freight delivery >>> some other stocks to watch this morning, express script says it will cover new migraine drugs. but the manager is excluding a rival medication made by teva. as you can see amgen and eli lilly up teva is down this morning. home depot and lowe's downgraded by credit suisse he's concerned about the impact of higher interest rates on the housing market and what he calls the decoupling of the housing market with these stocks in particular we'll talk more about this a little later this morning. also, general electric will reportedly win a $15 billion power generation contract. the ft says that germany siemens was close to the deal. but put pressure on to award the contract to a u.s. company >>> united continental raising guidance after posting its best quarterly revenue growth since 2010 phil lebeau joins us now with a special guest. good morning, phil and good morning, mr. munoz. >> hey, joe. how are you? oscar munoz. t