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chairman and ceo of honeywell.s >> a pleasure to be here i love the show. >> let's talk a little about the numbers and what you are seeing there. numbers missed by pretty wide expectation. numbers were a little short but the street's reaction is that, look, this is probably pretty good given a concerning economic environment out there. >> for us, revenue is one thing, bookings is very strong. we had double digit bookings gain in china, middle east even europe was up nearly double digit for us in countries like germany and uk one soft spot in italy not totally unexpected we are not seeing the soft ennings of the environment >> do you think the economies are better there or are you taking some share from other players? >> i think we are taking some share. we have doing really well. we want to be local for locals whether we participate in china or india, we have a whole supply chain there all the way from the innovation stage, delivery and market that is proven to be a show of success. >> does that make you immune fro

just like that then there's honeywell, hon. if you told me there's a company, aerospace, climate control, automation, chemicals, i say those are exactly the businesses you don't want to expose, yet honey yn wewell is n fantastic shape. he put on a clinic and explained why his business is firing on all cylinders. the only weak business was warehouse automation that division was up against some really tough comparisons. honeywell's stock on fire. $3.37, or 2% talk about pin action. finally there's union pacific. everyone thought union pacific was this wrong, it was this >> all aboard. >> i know some viewed this quarter as a disappointment. so much weakness across different cargoes, look, i think exactly the opposite, exactly. despite the revenue shortfall, union pacific generated some fantastic earnings if they can make this kind of profit when business is this bad, can you imagine how much money they will make when it's good what happens when you get a trade deal with china, and what if the fed keeps cutting rates, that would pr

or how about cramer fav honeywell. was momentarily concerned if not frustrated when i saw that honeywell's revenue came a little bit shy of wall street's expectations at another time, they might have really hurt their profitability, causing the stock to get crushed. but now hardly seemed to matter. the company earned $2.80 more. they boosted their earnings forecast, even though they also took down the high end of the revenue forecast taking down the high end of the revenue forecast used to crush a stock. plenty of investors were worried that honeywell might see fallout from the boeing 737 maxwells nope instead the aerospace business had 11% organic sales growth no wonder the stock ended up rallying more than 2% today. and by the way, it's not done. you know what? the same thing happened to united health, unh so many traders were terrify about the managed care company's earnings that the stock had gotten hammered into 220 going into the quarter it reported unh tacked on another six bucks today, again it's not done. thes

salesforce honeywell. >> i like alphabet on that list. it fell just below 1300 going back to april.s magnificent quarter last time they recorded. i think google will challenge that high and i think it will get it above that's my belief i'd be a buyer here. one of the most reasonable valuations buyback happening. lots of things will ultimately can be spun off, et cetera >> on google also, their drone delivery just got faa approval so going into rural areas that's a huge game-changer as well. >> steph, best name on this is what >> i like union pacific. it stalled a little bit recently after having a really good run if you think the economy is growing 1%, this company will do it pretty women. >> salesforce. >> let's do finals josh >> i just want to mention, i really think one -- the financials, the only group in the s&p 500 that's negative year to date in terms of flows to the etfs that has negative flows last week almost broke a record for buybacks in this space >> atlantic goes overweight on bank today, bac. bryn >> another value area, the energy names follow the financials >> reiter

. >> honeywell execution. plus arrow csx, remarkable operation, they showed almost every line was down union pacific, sadly disappointing. but don't give up on a big buy . yeah operating. you know, the operating number union pacific has a fashion license. all right. >> unp shipment volumes down, but not a big surprise. >> how about taiwan semis saying they will spend 15 billion on equipment who does that say about a plot of materials what does it say about land research what does it say >> david, it's a podcast. >> i know that i don't know what it says, jim here i'll speak for the podcast listeners. i know we've got a lot of other earnings to cover as well. we want to get to ibm. >> that's positive and negative. we need a positive right now >> how about talking to larry kudlow, economic council director, on "squawk" a few moments ago, larry, thanks for joining us again >> ply great pleasure. thank you -- my great pleasure, jimmy, appreciate it, fellas >> larry, one thing you guys been get to with a "squawk" cr

honeywell against the backdrop of a slowdown in industrial economy, we are seeing honeywell raise its fourth-quarter forecast. that is interesting, but this is really because of demand for its aircraft parts. bank to reportr earnings. should note that third-quarter adjusted etf beat the highest analyst estimates. net interest margins, insomuch focus this quarter because of the yield curve and yields across rates. we did see net interest margins for the third quarter come in a bit higher than expected, but for the fourth quarter, they are tempering expectations. alix: thank you so much. chinese up in d.c., trade officials are now working on a tentative agreement on trade. ministryg, the of commerce spokesman said they are having specific discussions on arrangements for the next phase. on therran joins us conversations today. progress ongn of the trade talks and with the news this morning from brexit will certainly help the mood for meetings in washington. the backdrop has been the worst forecast for world economic growth in 10 years. they are concerned that central banks are running ou

add honeywell. >> take any strength in lyft to sell it. they still have the same problems. >> i still hate it. >> i wouldn't own that i would like that list to work because i would love to put a couple shorts on it. salesforce, consolidating here they've had minor bumps and always recovered i think that's a great area of strength in the market and target, you know, i like i would like target to come in a little bit to add to it actually. >> axp is interesting. you almost have to make an economic forecast. some of the recent data on auto loan delinquencies and at the worst edge of the spectrum for credit card borrowing some is starting to turn sour for anyone and they're probably a little more immune than the discover financials of the world because they have a higher credit quality. you almost have to say like, do i think 2020 is potentially recession before you want to add more credit card exposure. i own mastercard currently so axp is interesting that depends on what your read is on the consumer for sure. >> we own a lot of names on that

john in kentucky, honeywell, should i buy more. >> that implies john is long already. already stay long. >> buy more? >> we can skip that. >> buy more or not >> no. he should wait for earnings, october 17, up 22% year to date. tough comps, a tough quarter we're going to want to hear what the guidance is before we with decide to buy more >> okay. n nokia?im from texas, your should i buy nokia ahead o i do like the position i think it's a very good way to play 5g. in the last three months it's traded with the market but you have a nice dividend yield and 5g will roll out and these guys will get royalties on it i like nokia here. >> sarat from kay in illinois, where does oracle go >> trading at 13 times earnings. the inflection point coming soon from hardware to software and a great cash flow machine. another one of the ciscos about two years ago, you buy it, hold it and over time you get a re-rating of the multiple. >> sally in virginia, is there more upside to gold? >> there is. it's just one of those safe havens people will go to and they've been right going to it all

. >> how about honeywell ceo, double digit bookings gains in china, middle east, latin america. europe was up nearly double digits i'm reading what the ceo said. up in germany and the u.k. one of your favorite >> very strong message, but yes, i did sell the stock last week and i'm fine that i did sell it. 178 was the high in july a stock right now pricing around 169.5. i think this industrial conversation is a very interest ing conversation as it relates to the overall marketplace i've used the term i believe the eck quities market is a coiled spring ch i think the industrials market and names like caterpillar and boeing is giving evidence to that. nothing changed in caterpillar's report inventory glut asia's bad mining, oil and gas is lousy we knew that in july with caterpillar, but yet the response to the stock, it's telling you that bad news is now priced in in the industrial space. >> you think about buying it back then? >> even with boing >> i'm not going to buy caterpillar or honeywell because there are opportunities i'm finding in the industrial sector that was that i was

. >>> mixed results f honeywell ere we bin the market foc tonight with the conglomerate reporting bettercteds profhanks to strong results fromou aviation know. but falling short on revenue you. executives said that honey well has not been impacted by the grounding of bogey 737 max. shares rose 6% to 157.52. bell ring brands debutwood the ipo priced at $14 a hair. makes the power bar branded snacks and powerful debut as shares jumped 18% to 16.50. >>> tesla has received agr nlight from chinese regulators to start carla production in china. th ao makak was already buililng a $2 billi factory in shanghai. according to reports, the plan is to build half a million electric vehicles aic year at tt faci tty. shares ola were up a u fraction today to 261.97. >>> and ford is partnering with volkswagen and amazon inid prg a new public charging network for its electric car cuoomers. the aaker says that the network will allow ford otos hare volkswagen's charging s well as various home charging w optioh the help from azon. >>rd up a fraction today to 9.11. united rentals topped wall street estimates d

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

when you look at honeywell, morgan, organic growth has been very good in aerospace it's 20% of the honeywell portfolio. it's really been what's been driving the company's bases. but it's actually being driven by 40% of aerospace defense. that's been growing double digits for a few quarters. that's really seen the benefit, whereas its after-market business is only growing 6%. commercial oe and after-market have been quite subdued relative to what you're seeing in the defense market that's really what's going on. and we're looking forward to big defense earnings next week with the contractors. >> shelia, it's stevewi wise. i don't know if you officially follow air bubus or do it becaue you follow boeing, so i don't know if you have estimates or not. but here's my question, even if they were to order cancellations at boeing, because the airlines have lost faith, if you go over to airbus, they've also got a very long backlog. so essentially the new orders would have to go to the back of that backlog as we saw the growth in airline travel, that's not a good option so are you going to model in any

unemployment and what they call top level corruption they say the country needs new leadership honeywell's there are so many young men that have been killed so many have lost their lives much further south in karbala protesters say they were shot at with live ammunition. the governor says those claims are false well go to the theater and they would video circulating online that was fabricated and tampered with which and not from the province of couple of i reiterate this news is false and baseless. over the last month more than $200.00 people have been killed and thousands injured in thai government protests this is the 2nd wave of nationwide protests that began in early october many of the protesters are students and they are back with renewed anger this is a popular demand for great to changes great the reforms in government and great the services it's a huge challenge for prime minister idle. he's only been in power for a year he's promised to reshuffle the. cabinet and introduce reforms but he has refused to resign saying chaos would follow what the prominent shiite cleric solder contr

earnings reports looking at jp morgan, johnson&john on the same day october 16, ibm and october 17 honeywell and more >> we look forward to it let's get to sue herrera for an update >> here is what's happening at this point on the white house lawn, president trump is issuing an ult mate um house speaker nancy pelosi threatening to hold white house documents. >> as everybody knows we've been treating unfairly, very different from anybody else, if you go over history, any aspect of life, you'll see how unfairly we've been tweeted >> the impeachment inquiry moving along michael atkinson arriving on capitol hill this morning and his closed door temperature regarding the whistleblower complaint is expected to last all day. >> relatives to the victims of the paris terrorist attack welcome a new piece of art of a hand holding1 baoon-li tulip. the missing 12th tulip represents the lives lost in the 2015/2016 terror attacks >> just about half an hour to go >> we'll see you in about half an hour, 2:00 in the east and elsewhere. it is a jobs day we'll talk jobs in a different kind of light with a mcken

honeywell international expects 740 planes will be delivered next year.cabins, and gadget packed cockpits have spurred sales. ubs is cutting 40 jobs in the asia-pacific region. bloomberg has learned the cuts are switched between the swiss bank market and an investment team. ubs launched a sweeping overhaul of its investment bank. ultimately, it may eliminate hundreds of positions. goldman sachs is in the midst of an unwelcome streak. in the last 18 months, three goldman bankers have been charged with insider trading. the latest, goldman investment banker brian cohen was arrested friday in new york and accused of passing deal tips to a restaurant tour. alix: thanks so much. what you make of that? the goldman sachs insider trading? >> it is amazing. it should not be surprising. he is the third to be brought up on these charges. we broke a couple of the deals that are referenced. report, youm&a intimately watch the stock of any company or doing a story on to see if anyone else will chase it. i remember with buffalo wild wings, it was trading up, the day befo

. >> morgan stanley and honeywell are reporting tomorrow area. >> bloomberg technology is coming up nextrea this is bloomberg. ♪ when you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. it's time to switch off and catch up. enjoy me time, and we time. 40 winks or 8 hours solid. the leesa hybrid mattress combines two technologies to give you deeper rest and rejuvenation. 1,000 pocket springs provide edge to edge support, responsiveness and comfort. while premium foams relieve pressure, keep you comfortably cool and limit motion transfer. leesa's hybrid mattress is not only recommended by experts, experts choose to sleep on it too. order online and we'll ship it to your door so you can try it risk free. the leesa hybrid is american made. built to last. and, because everyone needs a place to rest, we donate tens of thousands of mattresses to those in need. experience the leesa hybrid mattress. right now, it's on sale. order today. go to leesa.com. this is bloomberg technology. coming up, netflix rejections for the third quarter. ms. obstructions falter

>> dave cody >> honeywell. >> he doesn't run honeywell anymore. >> darius got rid of the two low multiplehe did i'm talking about cody the beauty company, has become more focused on fragrance, cosmetics and skin care. why? they are now announcing this morning a strategic alternative or exploration of options relating to the sale of wellia, clairol. bought it from p&g in 2016 not that long ago. at least for me. three years to me is like yesterday. >> for the may fly >> now they're putting them back on the market to try and sell them they say they expect the proceeds from any transactional to pay down debt, return excess cash to shareholders, and they align with coty's previously announced turn around plan focused on improving execution, better leveraging its assets, and delivering significant financial improvements and after a author yesthorough - >> aren't you cynical? >> not as cynical as you are today. >> no. no one will be -- >> that's because i got had. >> they reached the conclusion that even with the strong current performance, the future growth opportunities are increasingly outsid

honeywell international expects seven heaven 40 -- expects 740 planes will be delivered next year. your bloomberg business flash. romaine. romaine: still ahead, china's top trade negotiator upbeat about the progress on talks with the u.s. we are going to talk about that next. this is bloomberg. ♪ ♪ ♪ hey. hey. you must be steven's phone. now you can take control of your home wifi and get a notification the instant someone new joins your network... only with xfinity xfi. download the xfi app today. romaine: live from new york, i'm romaine bostick. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in with the bloomberg first word news. here with the details, viviana hurtado. viviana: there is growing optimism that is prime minister boris johnson will be able to get a deal through parliament. saturday's vote forced him to delay. a three month the government hopes it can still get brexit legislation approved in time for the october 31 deadline. over to lebanon now, where lawmakers approved sweeping reforms they hope will appease hundreds of thousands of people

at kilmarnock c n n y c they were given so honeywell a what. 10 years. less of a lemon nixon was all over them a little too long in a national magazine and was fun on the team legal scholars who are there limits. and there clinton was always on the facade them the only thing. there is mr hill in the band. and hijacked american. damon. to be your movie modern you mean any prior to my foolish way or the other part of. government and if you popular yachtsman and the hell with them i am in a police force how many people work for the like in full of them how are we able to get the auto. go in the. season. that fee to go is. on that. bus. that they did this season. the cult on the fake and in the semifinal of the. haiti way about on the. get in they have to live by the suburbs of them and go is. this awesome you know what i bought and that is the hum in the rock on one head with a behavior that you. might identify it all the 2nd is about in a. woman is very and they knew it i hate me and. it's just a myth on them and she's awful and they go as. such i mean of

want to get very fast, beginning october 15th, johnson & johnson, they report the ones i love, honeywells textron two days after that in a one him weeks we'll have fourth quarter guidance which is what everybody is caring about right now. that was just up, dow is down, 19 points down >> carl, back to you >> thank you very much market pmi not too bad at 51 ish holding tight. let's go to rick santelli. rick >> yeah, there is pa lot of different metrics traders like to use the cop contend we are waiting for. the ism number i can see it moving markets a bit we are seeing buying and treasuries at the end of the range. a couple things should jump out at you first of all at 145, open the chart up to september of 2017, that was the cycle low comp. in other words, on the 5th of september, we traded a close 143 which took us back to september 2018, very significant with the data points coming out over the next 24 hours. if you look at the july 20, 316, 10s around 136 you see on the far right, early september. we had a 146 cycle low close we were hovering 11 basis points above that there is your ste

young, that's the one to watch same, by the way, honeywell. earlier this week, united tech is merging with raytheon, but i met the elevator parts and climate controls can win even without a china deal after the close we hear from not value, but a great company, which is chipolte. the shock is up 100% this year i expect to hear good things about their delivery and their new carne asada. i told them i wanted that on the menu, but i ordered it through one of those door dash things. on wednesday morning, boeing reports -- today we learned some incriminating text messages from an employee who allegedly indicated knowledge of real problems with the system that went haywire on the flights that crashed killing all aboard when that news came out, this stock got hammered it's down nearly 7%. the story is horrifying. now, this is "mad money" and i'm not trying to make -- just trying to make any sort of e equivalence with what happened to boeing in the jets, but this thing is going to get resolved and i felt like today may have been one of the lower momen

honeywell, down 3% as we come to the close here. i want to mention a trump tweet. listen to this. this didn't help. as i predicted, jay powell and federal reserve allowed the dollar to get so strong especially relative to all other currencies our manufacturers are being negatively affected. fed rate too high. they are their own worst enemies, they don't have a clue. pathetic. you saw that play out in the markets. you saw bad news coming out of the manufacturing centers and also specific stocks. back to you guys. connell: gerri, we bring in liz peek, foxnews.com columnist and gary kaltbaum, kaltbaum asset management. gary, the president again blaming the fed. others are blaming the trade war with china. how do you see things? that was a weak manufacturing number today? >> i'm in the trade war camp. i speak to businesses all the time. they're all saying the same thing. there is a lot of uncertainty out there. chicago pmi bad. you had this. momentum is to the downside. for me what is more important how the market reacts. if the market holds up it griff gives you some time. if we brea

honeywell and 3 bsm lower as we. take a look at alibaba, baidu, losses 1% to 3%. alibaba now down about 7% in the last one month >> thank you very much >>> welcome to "the exchange," everyone let's get to the topic dominating the markets china. the country's delegation is in washington trying to hammer out a trade deal, a different narrative is taking hold outside the beltwaand cost of doing business in china. the nba scrambling to diffuse a backlash at home before it apologize forded for a pro hong kong tweet will the outrage turn the tide away from companies backing down for more, i'm joined about it free main chair and china studies at the center for strategic and international studies. and jefr moon, former assistant trade rep to china great to have you here jeff, i'll start with you. is this a turning point given the backlash that we've seen by the public here to what the nba has done this week >> i think this may be a turning point in our trade discussions with china for the first time politics raer rather than economics are front and center in the trade dis

earnings about the macro backdrop, how companies are navigating slowing global growth, union pacific, honeywellexample, is this something that plays or factors into ibm as well >> has to. a big part of ibm's business that's not growing much is more traditional it stack if spending slows into the beginning of 2020 as people expect, that's what's going to be reflected in areas like global technology services, analysts pointing out this quarter germany and uk but you can see these things crop up here and there, if overall there are issues >> all right meantime, perhaps most important element of the u.s./china trade fight that isn't getting as much as it deserves, rare earths. brian? >> reporter: here's why, i am going to ask you deeply personal questions. are you ready? do you have an iphone? have you heard of iphone have you ever had an mri heard of tesla model 3 guess what those things have in common the parts, key magnets that make those things function, guess what, they come from this mine that's right this mine, 60-year-old mine in mountain pass, california, 400 feet deep. that provides a hug

i don't have to marvel at the forms of two big industrials, honeywell and united technologies, but theyo have a lot of aerospace which could get iffy if boeing's problems drag on pepsico and coca-cola are at the top of their games they each talked about innovation not the fed, not the trade war, not the slowdown how about the companies that are seeing a downturn, though, but have managed to make the most of it here i'm thinking about costco and walmart. they're using the pressure from the trade wars to crush their competitors. these two big box stores have always shined with their treasure hunt layout and everyday low prices. even though they have to source their merchandise from china, these some of it, they have to scale to be able to demand better prices from the suppliers rather than eating the cost of the tariffs themselves or passing them on to you same goes for target, by the way. i think all three can be brought here i don't know if you caught southwest air's gary kelley this morning on "squawk on the street." wow, but this man and his team have been dealt a really bad hand by b

we need to bring in something here, again, we can use, let's see, why don't we put in honeywell.ike to have a diversified industrial that's doing incredibly well that would fit in place of qualcomm i know we're going to cut back on yield, but i like it. all right. let's go to dave in kansas dave >> rock chock jayhawk, jim. >> okay, i love the jayhawks always been a jayhawk fan. ever since wilt. what's going on? >> caller: outstanding my symbols are cme >> okay. >> caller: deo >> yes >> reporter: klat. >> love. >> caller: pep peyx. >> oh, boy, we've got some work to do here [ buzzer ] ♪ hallelujah >> that was easy >> okay. fintech, which i love by the way. that's a great company a great coach called me and asked me about it. it's a winner. kla. that's semiconductor capital equipment. it's really good paych paychex. payroll processing pepsico, blowout quarter today diageo uh-oh, uh-oh, two beverage company, but they don't trade together why? because this is hard beverage, meaning alcohol. so we've got an alcohol company, a soft drink and frito-lay company. my executive producer lik

will give us a clear indication of how they are performing in the region earnings worth noting from honeywell, kansas city southern, have been relatively upbeat. but third quarter estimates for the broader sector have come down since july, kelly, from 6% profit growth to just 0.9% but it's the trifecta of the stronger dollar. tariffs increasing manufacturering costs. that has really raised a question whether these estimates are too high going into these reports. the dow below 27,000 just off the lows of the session right now. kelly, back to you. >> seema, thanks very much and welcome everyone i'm kelly everyones. we begin with our top story today, which is boeing shares sinking on reports that the faa was misled about the safety of the 737 max. phil lebeau is live with the very latest. phil, it's the biggest move we've seen for some time in boeing. >> kelly, the concern of the faa is not just it potentially but was misled during the certification process for the 737 max. the other concern is documents that are just now being turned over from boeing to investigators on capitol hill, they've be

momentum or all i'm going to take these value cyclical plays and great names in industrials like honeywell and really poor names you don't want to own in this sector, as well you have to be careful >> good stuff. we'll take a quick break and here is what else is coming up on the "halftime report. >>> a first on cnbc interview with boston fed president eric he was against cutting rates in the last fed meeting has he changed his tune? you don't want to miss this interview. >>> plus, rolling the dice on domino's pizza shares down over 10% in three months but it may be time to buy. our "call of the day." "thealim hfte report" with scott wapner and the traders is back in two minutes ♪ ♪ ♪ ♪ ♪ >>> welcome back to "the halftime report. a market flash on cedar fair amusement company. two days ago they got an offer from six flags to get bought out at $6 million. they rejected that offer the stock with a big intra day move spiking up 3% in the last several minutes. that's cedar fair turning down the $4 billion offer from six flags. scott, back to you >> eric, thanks so much. big interview coming up

impact their bottom line or help them with cost cutting initiatives, which is actually something honeywell been trying to do as well, another player in the industrial space that actually came out with much better than expected earnings another thing i would point out -- >> that stock didn't move up much on it. >> yeah. one thing i'll point out on china is that continued pressure in china some of it has to do with pressures from local competitors in china just becoming much better at specializing in excavators of some of these other big machinery that typically caterpillar would win that business. and now, there is that growing competition on the ground in the country. so it's not so much the slowdown of the economy. >> who do you think is going to win in the long run? ultimately, if the chinese say, given the choice, i'm going with caterpillar. i mean, come on. that's why it's interesting for these companies to try to strike while the iron's hot so to speak. even for caterpillar just about nine days away from the launch of apple's tv plus. morgan stanley is bullish enough to look for a 20%

and the collateral damage will be big are than just honeywell not making numbers one quarter. >> yeah there is two ways to answer the question yes. there is a roobt hole in the form of negative rates that's a giant mistake and should be undone but then another, if you would rabbit hole we live in a world of technology, a world of aiming populations that demand safe investments like fixed income securities and that's why we keep pushing interest rates lower and lower it's amazing that i hear american investors keep complaining about 2% yield whereas like you'd be lucky you're not a you were eyen investor they have negative rates. get used to this this is the world we are in right now, that zero 1, 2 is where trits rb should be with two on the high end those pining for the 6, 7% worlds you only only get that with a mistake and you doenl like it if -- >> what about the argument the other side saying the reason why japan and europe and japan in particular has been meyered in this slow growth for years is because their savers are not getting anything on the money they save in the u.s. it's

honey wi honeywell is on thursday reporting. with home dee poe and walmart also at highs. apple now up about 15% here in 2019 from the we go. kelly, back to you. >> thanks very much. >>> welcome to the exchange, everyone, i'm kelly evans and trade is where we begin with hopes up on the possibility of a skinny deal, so-called, with china. what would that deal actually look like? kala is live at the white house with more. >> reporter: talks broke just about an hour ago between china and the u.s. just a few blocks away at the office of the u.s. trade representatives. some of the action items that have been on the table have been a currency pledge under way for a few months. more market options by china, and limiting the requirement for chinese investors to participate in these joint ventures. and also some potential waivers for u.s. suppliers do business with huawei. in the past the president has taken issue with a skinny deal, interim dealer wants to be seen as pushing for this broader comprehensive deal. so that end, even earlier today he was tweeting about one of the great

. >> honeywell, utx, even this growing theory that the ism sentiment is overstretched when it comes ton this country. industrial production. >> september was a good month in the country. people seem to be thinking that germany is making a resurgence but the month of september is a month that people are saying, you know what, we got an inflection american electric power. september a good month caterpillar, september a good month. >> how about pg&e, back to levels we saw when the fire was once again a story >> i keep hearing from the utility guys i deal with that it really is the trees. when you look at your trees -- you know what happens, david when the guys come and take your trees apart. >> there's concern there's some talk about -- it's not nationalized i don't know what you call it when you make it -- but you've got the competing plans, remember that was the last leg down before the latest with the concern of any liability from the current fires. last leg down was when the judge did not consider exclusively the plan that had been proposed by the board of management. >> but you're ta

hope and boeing gave us hope today took it all back >> some commentary from the industrials so far, honeywell last week as well, some of the commentary has been a little bit better around china so i wonder how much of this you think is 3m specific and where their end markets are focused versus the broader sector >> especially in electronics i do think they have high variable costs at 3m so they have some company specific issues. they didn't take production down quick enough yes, some of it is 3m. we felt so much better yesterday post-boeing. those stocks ended up yesterday. they are giving back a little bit today. >> lots to discuss throughout the course of the next hour. markets see the dow lower. s&p higher let's focus ing stories we're watching bob pisani is tracking all the movers here at the stock exchange bertha coombs is doing the same. kayla tausche is covering comments from vice president pence on china and nike. let's kick things off with you >> a little bit focus on chinese, autos and industrials let's take a look at the movers on the dow 3m are down. their comments exposure to chi

peak holiday season and what that means for the consumer as well and some industrial names like honeywellave done well, so we'll get the results from them. they won't necessarily be an indicator of the rest of the transports, but they'll be an indicator overall in terms of just goods being moved. >> exactly such a wide swath of goods to get moved by rail and really get moved by all of these different companies that touch the goods in multiple ways, we'll see what they all have to say in terms of the banks, should be an interesting quarter you can make the argument until you're blue in the face, banks aren't as dependent on the yield curve as they are thought to be for earnings but the fact of the matter is they trade dependent on the yield curve and the yield curve has been inverted for most of this quarter until about a week ago, and so that's going to be the trouble we're going to read these bank earnings with the particular scrutiny when it comes to nims and we'll see where that goes. but they have -- aside from the commentary on the economy, their earnings have sort of ceased to be a

companies this week that reported this weekend, tool works, dow, the railroads reported, we got honeywellited technologies, every single one of these were much better than expected and they were much better than expected from either self-help or because the world is not as bad as we think. so you've got companies that have been formally cyclical that are much more of a secular component, including jim fitterling saying we're getting a bottom on key chemical the leadership shifted to big tech because of intel and to the industrials because it turns out that the industrials are not as, let's say, not as per teturbed about china as you would have thought. it is remarkable there is some mea culpas we need to hear who said cyclical america would be damaged that said, if you're the fed, the dollar is the single worst thing that in every single quarter, it is the dollar, dollar, dollar but, boy, i really like the industrials that reported last week they were very solid really solid >> s&p still tracking down 3.8 year on year most sectors showing less than 1% eps growth. the best sectors are heal

companies, you can argue that, i don't know, the ones that trade off of are caterpillar, emerson, 3m, honeywell ge. those are the ones regarded as industrials, the rest of the economy that we trade is -- alphabet and it is apple, apple is a manufacturer, the biggest, they don't trade like that >> microsoft is regarded as a manufacturer >> they make something. >> they make air in a box, it is all intellectual property. >> faang and m are regarded together as companies that are big exporters of things we make. >> exporters. >> big exporters. >> yes not necessarily -- not -- >> they're commerce. i'm saying they're not centene and not united health. they're not healthcare companies. i'm just saying that, look, i don't want to conflate it. i say industrial, to this market, that's free port and -- >> we don't have a lot of industrials to trade we used to a lost peopft a lot of people feel they have been wiped out we're not going to value anything as highly as we did before because there is a genuine thought we'll wait a second, a transaction tax. sanders you read what sanders is talking about, he wan

everyone, everyone when i look at what's going on with this situation, with ge, with honeywell, withes, david, this max is everything it really is otherwise you want to own all the stocks what are you hearing >> i only listen to what phil lebeau tells me. right? don't you? i don't know how much longer is muilenburg going to be the ceo of boeing. that's where people are focused as much as they are when the plane returns to service, jim. >> it has become the ultimate guessing game. >> so the aforementioned tusa is out with commentary as well. no, quote, smoking gun here, as always the follow-up in details will be key for forward estimates, for which we remain well below consensus >> you know, look, he can keep talking about that i don't think it is about consensus. i think it is about credibility, which a year ago there was none. i think it is about the idea that there is no cash strain to the point we should be worried about the common stock i think it is about 20/20. culp always said that. david, when steve tusa says those comments, the way i read it is, hey, listen, i am not excited

times earnings, which does imply upside from where it's trading at right now another thing to watch, honeywellre to that china story. back to you. >> seema, thanks very much paul, what's your takeaway from last week's sort of semi deal, what it means for caterpillar? >> so i think what's important to focus on is for all the talk about what this light trade deal didn't accomplish last week, what it did accomplish was it kept things from escalating. and as caterpillar mentioned in its last call, the effects of the steel tariffs are going to start anniversarying this quarter, so as long as we don't get an escalation, we're going to start to see better comps for caterpillar. and so that's something important to keep in mind. because the sentiment now is a lot different than it was just last week at this time, when there was real heightened concern that things were going to escalate to the point of maybe no return. so i think it's encouraging for caterpillar here and the broader market that things didn't escalate and i think that's why we got the rally and we've been able to mostly hold on to those

they found honeywell, they found united technologies.wear, honestly, if caterpillar is up today, it simply doesn't matter. >> one stock that goes up, feels like almost every day. >> t-mobile? >> apple >> did you see katy huberty's ode to -- >> ode to apple tv i don't know what she's -- >> this is a good one. >> 53 pages on the economics and accounting of apple tv plus. >> i would have told her, pick your best five >> can you imagine being an analyst, having to write this. >> did you try to read through this i got to the battle of borg and i threw it away. >> everybody is coming in with their streaming reports. it is very important we're six days away from warner, of course. unveiling its service. hbo, max, we'll get a price point, we'll understand what new shows they will have, a lot of -- a lot of different things there. apple, we kind of know that they got. >> we all keep laughing. they're all laughing about how little apple has we have the terrific opening >> the morning show. >> my wife says i want to meet jennifer aniston you watch

honeywell raises its 2019 profit forecast. morgan stanley on deck.gs? welcome to "bloomberg daybreak" on this thursday, october 17. it was really down to the ninth hour here. sb futures popping on that futures, up 0.3% -- s&p popping on that optimism,. up 0.3%. . money flowing into equities. the dollar kissing that 200 day moving average, catapulting all the g10, as well as emerging markets. is this the rotation investors

united technologies, honeywell, lockheed things are growing well.e's confidence there, you get the cap excycle. the investment cycle of the c plus i plus g, that's going to add. >> you think we're going to get it >> i don't think it's going to be as robust but it's going to be dropping off unless of course geo politics comes into place. we have no idea what's going on. right now things are moving. >> let me ask you. we've talked about this on the set before you're talking about geo politics how about domestic politics. historically you look at cap x and the year of the election cycle and typically cap x goes down not up because there's a little bit of a let me sit on my hands and wait and see what happens next. >> if we've learned one thing about the last three to four years is that the typical cycles, you can sort of just rip up that script and throw it out the window because you've had this lag, because there's a potential for not necessarily economic acceleration but a continuation of sort of 2% to north of 2% growth there's a catchup that we exp

. >> honeywell in particular, they produce and they are affected. is this a momentary calm could they get worse or is this a new normal >> if the trade talks and negotiations were to deteriorate much further and had a shock that left the whole global economy, that would be a different story. based on what has happened so far, it is a big deal. a big drag on china. but in the u.s., not nearly as much but the main channel it worked through was the confidence channel you had a stock and the flow they'll assume they remain in place. unless there is additional tariffs, companies will normalize. confidence starts to rebound then we move on from there i'm in the position or of the view that unless things deteriorate further we'll see that acceleration. we are not at 5% >> we are at four. we'll be close if we get that recovery and business confidence and spending will tick up, we'll get back to five >> you think the regulatory environment has been sort of held back and that will insert itself and we are in good shape. >> the trends in that are pretty robust

. >> that may be the difference with some of these the honeywell ceo.he way they've been impacted and using local employees and offices. it is probably still a tricky line to walk as an american based company and you don't want to offend your home office with some of these things >> there is merit to that but tesla's culture is to overhire at the friend end and then cut the head count that is not taken very well in china. there will need to be some cultural accommodations. there has been a tone deaf management style at the company in the past. >> what is the debt story? >> $12 billion in debt is a lot of money >> i'm only pointing this out, when you go out there now >> i would short it here i don't expect the fourth quarter to be as interesting given the cost for shanghai. >> looking for the detail. could be rich. nine grand plus versus 13.80 a car. subsidies are very important they do drive gross margins up there is a couple hundred basis points now so subsidies matter >> we'll leave the conversation there. thank you. we should tell everybody, ron baro

morgan stanley and honeywell on thursday friday, amex, schlumberger coca-cola.ve, 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 cool manner. >> he does but he -- he gets -- i mean, i guess it's his job but he