so when the opportunity came to try and do things in that manner at csx and transform csx in a similaranner, i don't know how to run a railroad any differently. >> well, let me give you an example of what i focused on e-commerce is maybe the greatest new wave of transport. i had felt that the railroads had been left behind because customers like amazon they want that precision are you in shape to be able to get some of that e-commerce business >> absolutely. and we work with many of the big -- the parcel shippers today. you know, we work with the u.p.s. today which is handling packages and expects -- trust me, those guys are tough and they want precision delivery we're doing that and we don't manage to train from terminal to terminal we worry about are we going to miss a sort? that's how precise we need to be and we're doing that today we're doing that very well. >> now, the old days i always worried the railroads an activist would come knocking and a bunch of them. i think you run it well, then they go elsewhere. >> well, the recent history would show yeah, the activists will come kno

karen finerman and guy adami with the after hours axe earnings season kicks in high gore netflix, ibm csx on the move after results. net friction the one to watch with less than an hour until the conference call. we have full team coverage to break down the results gene munster firing up the red phone in minneapolis we begin with jewely boorstin riff in los angeles. julia. >> melissa, netflix shares soaring now up 9% despite lower than expected guidance investors reasaurd by better than expected earnings per share as well as better than expected international subscriber growth in the quarter netflix adding 6.3 million international subscribers. above projection while u.s. subscriber growth did fall short of expectations. but investors may also be reassured by ceo reed hayesings giving frank comments in the letter to shareholders with competition. this of course comes ahead of disney plus and apple tv plus launching next month hayesings saying they've been preparing for this new wave of competition for a long time, writing quote the launch of new services will be noisy, maybe modest headan

csx shares flat now after rising immediately after their earnings release.over to you. >> frank, thanks very much george, what do you make of all these earnings reports >> with regards to csx, it's impressive that the company is able to continue squeezing more earnings, more efficiency out of their operations even though we're in a rough environment right now. not really rough but challenging environment for railroads and freight in general we've seen a 5% year over decline, total intermodal volume for the railroad industry. if you're still manage to squeeze more efficiency out of yore operations that speaks highly with what management is able to do natural gas, green energy solar or wind on the coal industry is only going to get worse. it's not going to let up any time soon. the fact that csx is able to deliver that and deliver a beat speaks to the fact that they're able to navigate trbled waters here. >> ed lee, final comment from you on netflix one line that comes out says likely outcome of the launch of these new services will be to shift from linear tv

union pacific and csx. i keep thinking about just last week when jim foot, amazing csx ceo came on and said, look, for decades the rails in this country simply weren't that well run. perhaps look they only had limited competition. they rarely compete with each other and there are tons of cargoes too bulky to transport by truck but in the last few decades as our economy shifted toward low bulk and high value they start to take chair and went from 100% of transportation to just 8% finally the railroad decided they've had enough and bringing in a new group of executives who decide they needed to re-evaluate everything to take back the lost market share and came up with precision railroading. they manage trains more efficiently. making them more punctual and convenient and it breeds higher earnings per share and even though csx and union pacific didn't fall nearly as fast they bottom and came right back. they are both buys we saw something similar from dear this is different. it should have been hit. what does

one is the rails, csx, pretty good quarter union pacific, really good quarter.folk southern, not as good quarter. but, you know what, they suffer from comparisons if they had gone first coal down 13%. coal is i think the stick in the fork in it cargo the operating ratio, so important for the rails, not as good as the precision rail at csx or union pacific it is the one to watch because this group held up a whole group of other stocks. so let's watch this. it might be the key to this market >> might be the key to this market i diabedn't feel as though -- yu have to put it in perspective. it was a good quarter based on -- >> the operating ratio. >> right >> not because -- they are seeing -- it is autos. it is coal it is energy down >> i know. but the operating ratio, 65.4, the lower the better, people should understand that but i think norfolk southern is a great railroad i think the rails are a terrific place to be. again, not unlike cat, do we talk about the companies making much less at this point in the economic cycle, but norfolk southern too linked to coal,

important story is how some of these earnings are coming, seeing reaction in the market as netflix, csx what was jim's acronym for better than expected or not as bad as feared? david, i forgot what it was. >> i have forgotten, also. >> he has so many acronyms, it's hard to keep track of them >> and morgan stanley, another winner this morning. ibm, perhaps the only name that's kind of dragging a bit on things, given another negative revenue quarter from that company, carl. >> yeah, the fifth in a row, i think, of declining revenue for ibm. shares down about 6% in the dow here, pulling that down a little but dow at least hanging on to a gain of at least 0.3%. >> ibm market looking past the drag on the dow. john fort is here to sort of put the ibm print into some context. >> it's complicated, carl, because global technology services is about 37% of ibm's revenue. and that is the unit that really sort of drags down 4%, trouble in the uk and germany there, is what analysts are saying in particular and that overshadowed the pretty close to 20% growth that you saw in red hat, which is a little

it's certainly coming, no one should be surprised, but i'm not necessarily sure that one report in csxow, if they all start with the same story and they all start missing and lowering guidance and talking negative, that will be a different story but the jury is still out. >> banks have not done that. >> banks have absolutely not done that. >> guys, information continues to flow in we'll see what happens tonight good to see you. >> and you. >>> when we return, disrupting the cloud and cutting amazon down to size john chambers joins us right here next with the venture he n'ys that will do it dot go anywhere, we're back in a moment johnso johnson is a baby company. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. >>> amazon's cloud dominance is coming to a close. that according to john chambers who says his next venture is set to disrupt the entire space. joining us now here at post ni

csx transportation, norfolk southern, union pacific, and bnsf railway are the companies named in theds had a price fixing scheme to illegally boost profits. the railways have not commented on the lawsuits. >>> a federal judge is pushing carnival corporation executives to work faster to fix ocean pollution problems by the world's largest cruise line. earlier in year, carnival admitted violating probation from a 2016 criminal pollution case as its ships continue to cause environmental harm. the company was hit with a $20 million penalty on top of a $40 million fine imposed in the original case. >>> and tech giant microsoft has announced a series of new devices including a new dual screen tablet. the new microsoft surface neo is made of two nine-inch screens, the screens are connected by a hinge and opens up like a book. it won't be available until late next year, but microsoft will release a new set of wireless earbuds this christmas. anne-marie? >> well, it looks cool. but the real question is, am i going to have to take out a small loan to afford it? >> and how many more screens coul

and csx beat profit expectations while revenue in line forecasts growth in railroad merchandise segment decnes ind coal intermodal shipment units. shares rose in after hours trading but closed the regular session down a fractn as 69 even. >>> mgm resorts is selling one of the signature o properties the las vegas strip. by blackstone, paying more than $4 billion for it. and the selling ofheand to raise cash is becomingne of the biggest trends in the casino industry. contessa brewer isn vegas for us tonight. >> the bellagio with its dancing fountens is one of theee must sights but it's about to have a new owner.ea blackstoneestate income trust or a reit. mgm resorts is sellingsi the resort and raising billions in cash. >> we're goingo reduce our financial levere. all the money we receive from blmkstone here at belgio will go to reduce our financial leverage. by the end o 2020 our balance sheet will be vastly stronger than even >> mgm will continue to operate the bellagio and pay rent to blactone. visitors shouldn't see a fference. for the company, the difference versus a property company.

csx sharesrising topping wall street estimates. are up nearly 4% still to come, president trump has a message for european regulators looking to put the squeeze on u.s. tech giants. >> if anybody is going to tax those companies, it should be the usa. it shouldn't be france and the european union who are really taking advantage of the united states >> this as yet another silicon valley sllta warth facing fire more still to come >> while the u.s. and china work on a trade deal, perhaps the most important elements in the fight are getting the least attention. so-called rare earth minerals. the mountain pass in california is the only operating mine in america. brian, over to you >> yesterday, we talk about rare earths and how the united states used to be the global leader in the production of these minerals all because of this mine behind us mountain pass. the size and scope is amazing. all because of basically this type of rock you are thinking what is this? inside of this, there is about 8% of the stuff we really want ultimately, it

. >> i think about csx and ups also talking about the impact uncertainty is having on their business.pockets of strength in the economy but the concerns about the trade war, brexit and reports of manufacturing delays are keeping people on the sidelines especially when it comes to the type of expensive machinery that they sell. you don't want to have a huge glut of these machines sitting on a lot of if you can't sell them. that is what has been weighing on their sales and the results areas to your point, they are going to cut production and that gave investors some hope that many -- maybe in the downturn cap plural -- caterpillar will be more disciplined. withinwhat it's worth, the context of the u.s. recession debate, caterpillar is not looking that bad. >> it was pretty bad this quarter. mining has been a real bright spot for caterpillar this year and that was not the case in the third quarter. they had a 12% slump in sales in the mining division. problem is china so much north america but in china, they are seeing very competitive racing and that is helping to eroded their market sh

csx and union pacific up by 3%. boeing is a big drag on the dow. down another 3% or so today on some downgrades. more woes for the 737 max. i want to look at tech. 19 of the 20 largest stocks in the nasdaq on friday were lower but we are seeing a rebound today. apple is up 1.8%, fresh record. nvidia and rpc also up. on those oil companies, let's took a look at those. halliburton out with a solid earnings report this morning. growing its international market. that has to hire -- peers higher. getting an upgrade at citigroup on an attractive valuation. romaine: thank you. let's turn to the u.k., another blow to prime minister johnson's exit plan. john bercow has rejected the government plan or a second vote, saying members of parliament have already debated and voted on the plan. here with the latest is emma chandra from westminster. him tonot really expect move forward with this vote today necessarily, but it did appear boris johnson was counting on this to further his cause. right.ou're absolutely we had been expecting -- the government had wanted

and csx's stock was advancing in after hours trading. let's look at those that the market rejected. sorry, charlie >> sell, sell, sell. first cramer-fave workday held an analyst workday i was shocked, not at the slowing, but the slowing, but not the reaction if they slow at all, the reaction will be incredibly negative the market has no patience for software enterprise companies that do not grow in aggressive path -- aggressive pace. service and adobe was down graded today adobe, downgrade had slowing in the commerce offerings which handicapped the company last report but the negative pin action extended to sales force. even though they did shoot the lights out when they last reported we will hear from the chairman later in the show. this sell-off is guilt by association. but there's overlap of the substance of the adobe down grade and sales force. can the rotation last? i don't think it's permanent i don't think so it never is. consider this evening, ibm, and high valued netflix, reported, ibm laid an egg, stock is being savaged after the bell netflix trumped estimates and is roari

we've got netflix csx also on tap to report and 59 minutes to get you there. >> and i'm wilfred frostoon to you. big miss on retail sales put a damper on sentiment. better-than-expected housing data upbeat earnings trend and concerns over software and tech stocks lower we've been up, down, all around for the markets

he is from csx i almost couldn't believe how well this railroad -- all aboard >> is doing, even thoughost of his cargos are headed straight downhi downhill i'm used to this do you remember what his secret to success was just run a better darn railroad. yep, it's all in execution i think the stock's working. it's a buy and then there is lam research, lrcx lamb knows time is tough who knows how people will react to the microprocessor strength in intel this very evening but that's how these guys at lamb could report such a good quarter. and if lamb can hit the mid point of its guidance, it could be the best on record in terms of earnings in a slowdown. despite more thanl half of the book of business has been help by an immense decline. cramer uber fav rick hill brought back monster amount of stock at the right prices. lam has unseated chipotle as the best performer in the s&p 500. what else? hey, let's not forget about jp morgan how the heck can may they make so much money in an environment that is supposed to be toxic to the banks? i think the franchise is so strong right now that no ban

it's about nabaf we saw something similar last time from csx. their cargos weren't as weak as union pacific's, but they did the same thing which gave us another not as bad feared quarter. boy, they made a ton of money. what else? last night, as i was leaving the office, step by step, inch by inch, i saw the not so hot report from united reynolds. the largest equipment rental company in america and the stock -- how about that philadelphia accent? and then the stock collapsed after-hours trading. down one, down, two, down, three, down four it couldn't find a bottom. but then on the conference call we heard how united reynolds was able to rationalize cost to handle the downturn they anticipated. this is a classic sink or swim cyclical business that seemed to implode during times of weakness in the old days. the call we heard how the company presciently cut spinning avoiding key hits on oil and gas. united reynolds ended up bottoming down 5% and then came roaring back this thing finished up 5% today. ♪ hallelujah because the quarter was nabaf. or ho

csx, you had so many companies that are the heart of american business, thought -- i thought they would be much weaker. >> right. >> they weren't. they weren't. >> what i hear you saying is first of all sentiment as far as you were concerned you were not overly bullish into the numbers. >> not at all. >> i think you're representative of let eye of the poginging out there. seasonally it's a case where you're in a good environment the if he had is not going to spoil the party. they may not throw year yuell log on the party. >> fed is so much bigger than trade. >> apple, the largest market cap company $1.1 trillion market company. $260 in sales flat year over year flat year over year. zpoit buying back tens of billions of zak. >> we knew that. the exciting part was growing. wearables. >> and the stock up 57% on the year. >> i'm just going by apple but pushing back onthe view that i was a bat bad report. >> held on gain dan i almost feel like no matter what apple was going to tell us, you would say, apple is bad news >> because apple gave a good message yesterday and you're still saying, do

you get that from union pacific, csx stock will be up because of expense control.ulous. >> we've got larry kudlow in a minute anything you would ask him >> look, i would ask larry where is the ag buy? the ag buy -- larry is in the camp that says look, the chinese, you can trust but verify i don't know i don't know if you can trust or verify, because the ag buy should have happened this seems like argentina again where maybe the president has been had. >> we will ask him just that jim, thank you very much see you coming up. >> yeah. >>> larry kudlow when we return. "squawk box" will be right back. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ ♪ ♪ ♪ ♪ >>> welcome back to "squawk box. joining us now, larry kudlow, national economic council director been a while, mr. kudlow it's great to have you on this morning. i'm going to start with a philosophical question, larry. you've been there a while. i don't know if you were ever what

romaine: when you talk about what we saw at csx, a lot of people will point to trade, the geopoliticalisk, saying what's remove that, it is a springboard up because all of these companies are sitting on potential investment. i am not necessarily a buyer in that belief. vincent: i think it is more of an equity story than a fixed income story. i think central banks have their hands tied. i don't think it matters much. if you look at the potential if the deal goes through, you could see a 10% drop in the dollar. that does not speak well for the large industrial space in the united states. it does speak well for europe and the u.k.. i think that's the rotation people need to look at, out of the dollar, into europe, not necessarily e.m. less the trade deal goes well. think the fixed income spaces are going to be enter and muddle along. alix: this means higher yields in the u.s.? alex: but only to an extent. people are coming in and buying. alix: just not the chinese. [laughter] said, i thinkce you will get a bit of a range, but i don't see a breakout by the end of the year. i think we are g

. >> jpmorgan cuts csx to neutral. >> brutal. brutal cut >> what kind of comment is that? export and import economy they're just not sending the same number of 18,000 containers on a boat anymore. and vietnam isn't making up for it i think there is -- the rails are very problematic the rails have come down huge. they all went up on what david likes to talk about as precision railroading. >> yes hunter harrison having introduced it originally before precision railroading, just chaos and then somebody said let's bring rescission to railroading and now all precision. i'm joking, but it is a funny term. >> i like union pacific very much here. i won't back away. i think they return a lot of capital. are they going to make the quarter? probably not a lot of jokers are making fun of me. phil came out, phil lebeau said probably approved. i don't know what is going to hurt boeing if it hasn't been hurt already. the answer is there is still a lot of demand out there for some -- secular demand for real estate on the reits that are strong, the ones that are towers, the ones that are d

to hire anybody who walked in the room they have been able to reduce very, very quickly by the way, csxerrific stories. and i've got to tell you, the rails, you think they should be hurt very badly given the trade issues they have to do with chinese they're hurt i think the rails are -- i think the rails are -- if larry kudlow is right yesterday, which, people bash me on twitter, kudlow, how could i agree with kudlow kudlow was saying that lighthizer was saying this lighthizer is -- a lot of people think in the navarro camp, david. >> he is >> well, he's in no camp maybe >> how about this journal piece that kudlow arranged a meeting in the oval, with outside experts, who warned the president that escalating china trade war could imperil the economy and hurt his chances for re-election. the president's response was where is peter >> steven moore and larry lindsey discussed it, at kudlow's urging and this is all journal reporting. and he was just blaming powell. >> seven deadly sins that peter navarro has outlined are where the president lives okay by the way, if they don't approve the nv

there have been good reports from csx, from honeywell, from united airlines -- >> jpmorgan, morgan stanley. those have been rewarded also other earnings that have just been good enough. united rentals we talk about positioning, people are not positioned in industrials or health care those two sectors are leading the market today >> is that why we are where we are. people have your view earnings are good enough? >> some are good enough but some are good the best earnings picture was johnson & johnson. we also had a lot of health care >> you entitle e-- united health >> expectations if they are just okay they are going higher >> feels like earnings have been fine not on fire. >> i mean, i think when you have earnings -- expectations have come down so much. then you have some that are reporting where earnings are going up some are reporting where expectations were solo united rentals is up 5%. union pacific that number it opened down 3% i bought some on the open and it's rallied especially on the industrial side people are thinking we're seeing a trough on industrials the worst it will be on

the biggest decliners today include union pacific, csx and u.p.s. i spoke earlier with u.p.s.man daviding abney and askd him his view >> in the u.s., it's still consumer driven and we are seeing that it's holding up. it may not be as strong an increase as last year, but we still feel pretty good about what we're seeing. of course, we'd like to see industrial production and manufacturing increase but the consumer is holding on right now. and we're glad to see that >> now, on the international side, abney also pointing to brexit and china trade negotiations as headwinds. but also saying that his company has the flexibility to adjust, since we are in the fourth quarter right now. that means we're going into holiday peak shipping season i asked him about that, as well. he says the company is gearing up and is pretty upbeat, i would say, in terms of the forecast for the final couple of months of the year. but let us not overlook the news of the day and why i was speaking to u.p.s.' ceo abney in the first place. the company became the first of any to receive from the faa full part 1

even decent guidance from some of the industrials that are reporting tomorrow csx, for example, and steelamples right now. so keep an eye on that elsewhere, schwab had very good numbers at the close that's a good sign for some of the brokers. there's the closing bell we are off of the highs, but an excellent day. we are just shy of 3,000 on the s&p 500. remember, the closing high, 3,025 for the s&p. >>> good afternoon welcome to the "closing bell." i'm wilfred frost. >> and i'm courtney reagan in nor sara eisen along with mike santoli. we are in the market zone. you can see the day's market action on the right side of your screen with the stories still coming up on the tabs at the bottom of your screen. >> we were higher by essentially 1% for all of the major averages the dow just dipping below that level, up only 0.9% at the close or 236 points, the high of the session, had been 333 for the dow. s&p, up 1%, as you can see the nasdaq and the russell up slightly more. in terms of sectors, the best performers were health care communication services and financials two of those sectors, of co

the ceo of csx too we'll be right back. each day our planet awakens with signs of opportunity. world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. whether your beauty routine is 3or 57,... make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy. >>> make sure you join us tomorrow we got to go "squawk on the street" is coming up right now ♪ >>> good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. premarket, largely looking past these weak results from cat and boeing shares of both rebounded from early morning lows big day with zuckerberg back on the hill meantime, the future of brexit remains cloudy we might have an election be

transports on the other side of things csx, one of the worst performers in the nasdaq 100 after reportingolu volumes. >> we closed friday at 1179. got as high as $12.93 and it's well off of that right now $11.89 so a little bit above where we were on friday regardless, the public loves space in general a lot of retail interests, and they like richard branson, as well you'll hear a lot more about space in the coming months and years. and there's the "closing bell. the s&p 500 closing at a record high, 3039 s&p 500 up 127 points. >> good afternoon. welcome to the "closing bell." i'm wilfred frost. >> and i'm courtney reagan in for sara eisen, along with mike santoli, cnbc senior markets commentator. >> let's check in on where the market closed, at record all-time highs for the s&p 500, eclipsing the 3025.9, that was the most recent record high hit on the 26th of july this year. the nasdaq, just a couple och points off its own record high the dow and the russell still a little way from their levels about half a percent of gains for the dow and s&p, the nasdaq up a full percent, tech and comm

bank of america and csx come up on thursday. thursday friday, amex, schlumberger coca-cola. according to data from refinitive, s&p earnings are slated to decline by 3.2% over the same period last year. technology, which has been a leader in terms of earnings growth and the market, are seen having earnings drop by 7.6% and the big issue facing a lot of these companies and the outlook going forward is how important is that global trade uncertainty specifically between the u.s. and china how much will that weigh that's a quick preview of what we should expect, joe, out of earnings season as we start and kick things off tomorrow with the big banks. back over to you, joe. >> has anyone seen wilf, dom have you seen him? >> i have not because he's probably in a hole somewhere trying to prepare for all of these things that are going to happen with the banks this week. >> i wonder if he's excited, anxious? >> i bet you he's excited. i bet you this is like the most wonderful time of the year. >> probably a mix. >> he shows it in such a co

that's why the railroads have had a tough time of it recently, although we do have kansas city southern, csxnd his family, promising to beat president trump quote, like a drum. in 2020. and he's beating both warren and sanders in some states, according to new poll numbers. you will get it. should president trump be concerned about a biden comeback? we will deal with it momentarily. ♪ obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ it's how we care for our patients- like job. his team at ctca treated his cancer and side effects. so job can stay strong for his family. cancer treatment centers of america. appointments available now. cancer treatment centers of america. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a diff