right now, jon fortt, i will send it to you. >>> sounds good. thank you.ws out of ibm, launching the newest mainframe this morning i talked to the head of systems this morning about that product. how it includes a security feature, data security that tranforms data privacy arguably like invisible ink. >> they listed the most important things, helped us determine the most important things one of those was data privacy. they brought up instant recovery and cloud application development. the disappearing ink is a good analogy. we can encrypt data on and off the machine. if you choose, you can make that ink disappear when you want it to if you have a third party and you want to stop access, you do that remotely. you change your mind or a third party breach, cut off access >> reminded me of the cambridge situation, what may have inspired that. customers think about those things happening in the it can be an economic indicator. some of the most expensive s millions upgrading main frames it is not like there's a lot of revenue growth in main frames but a lot of t

robert frank, seema mody and jon fortt here with their takes. first topic du jour, apple fans!the latest incarnation of the iphone hit store shelves today analysts are not expecting big sales numbers from the iphone 11 series wall street consensus is for a 1.5% fall in iphone revenues from the 140.5 billion projected for 2019 but could the combination of low expectations and a refresh cycle hand apple a nice surprise win here jon, this seems custom tailored to you for starting. >> no, it's not going to hand apple a win here well, look, first of all, it's been a year since they announced that they're not going to give out unit numbers to the iphone the stock dropped. it's right back at that same $220 level, so apple's doing fine that said, i think for a few months, apple's likely to trade on greater china sales of this new phone, and china is where 5g is rolling out early 5g phones from china's homegrown manufacturers are rolling out early, and so that apple premium -- hey, look, i've got an iphone -- probably isn't going to mean what it's meant in fast it's going to be, oh, you

jon fortt will be there and he's very excited >> i can see that.s throwing his pen around >> i'm trying to signal, not the 19th, the 4th. >> very rowdy on this desk here right now. >> plus, i've got butter fingers. >> all right >>> well, european markets are just closing and seema mody joins us now with a breakdown of today's action overseas. >> big move here and big move in europe markets rallying following gains in asia and renewed hopes of progress between the united states and china on the trade front. it is those trade-sensitive sectors, even in europe, tech and autos, that are the two standouts in today's trade even industrial names like this issen kropp aremoving higher despite moves that german manufacturing orders fell more than expected in july. there are also two strong earnings reports to take note of first, it's france's defense giant, dassault aviation it maintained its full-year target rising demand for business debts in the u.s. really helping its bottom line growth while melrose industries, another stock to take note of, the britis

jon fortt, back to you. >> thank you. >>> still to come, apple's iphones are now on sale, but can theye skid we'll debate that next [ applause ] thank you. it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. i love you! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ when didwhen i needed ton? jumpstart sales. build attendance for an event. help people find their way. fastsigns designed new directional signage. ...and got them back on track. get started at fastsigns.com. >>> we've got a full weekend of iphone sales with new phones, but can apple pick up sales in china and elsewhere? with us from one market, guys, good morning. pierre, you know i love a bold call and you are rarely short on those. $155, that's a call that apple is going to drop 29% from where it is right now. and i wonder given that iphone unit sales have already been slowing, what convinces you that it has that far to fall when they've shifted investors attention to services? >> it's a very good question and a question i get a lot from inves

. >>> let's get to jon fortt with a look at what's coming up on "squawk alley. >> hey, contessa it hask for ipos, we had smile week for ipos, we had smile direct yesterday, 10 x ain we will talk to the ceo coming up on "squawk alley. i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. ♪ doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. when didwhen i needed ton? jumpstart sales. build attendance for an event. help people find their way. fastsigns designed ne

i am carl quintanilla with morgan brennan and jon fortt at post nine of the new york stock exchange we're00 points shy of an all-time high closing on the dow. >> major averages are poised to end the week higher. waiting on cloud flare ipo right now, indicated price between 17.5 and 18.5 dollars, that's where we're going to start. ipos we were choosing the nasdaq to list its ipo, and announcing sweeping governance changes. swirling amidst several valuation drops, this after smiledirectclub posted the worst first day for unicorns so far this year. that stock is up 10% this morning. also cloud flare, we mentioned it, coming today who will speak to you later this hour joining us now, casey newton of the verge and kevin delaney. good morning to you both kevin, i'll start with you we have to start with wework every day there are more headlines. now governance changes i can't help but wonder that there are red flags around governance, why the changes are happening now, why didn't they happen before the first prospectus dropped. >> this is silicon valley, this is the epitome of the founder that w

i i am carl quintanilla with morgan brennan and jon fortt senator majority leader mitch mcconnell isng to talk trade, usmca and more. >> a big hour ahead. first we begin with ipos, and performances for recent debuts after a hot start to the year, we close out the last trading day of the quarter uber and lyft down more than 30%, slack down almost 40. and this morning, wework officially pulling its own ipo cnbc contributor, "new york times" columnist kara swisher joins us holy canoli has it been a rough quarter for ipos how do you see it, as a resetting or private market valuations coming back to earth? >> i see it as math. math wins. that's what professor gallaway was talking about when we talked about wework and other ipos. i think investors, there was a fire wall broken by wework, untenable for most investors, and it extended to other companies which have balance sheets that are problematic. even if they're great businesses and brands, they've got to get their arms around economic models that are sustainable. that's what wall street investors are looking for at this moment in time a

i am carl quintanilla with morgan brennan and jon fortt at post nine of the new york stock exchange >e going to begin with wework founder adam newman has started talks with board directors and investors on his future with the company. this comes after "vanity fair" says he met with jamie dimon how to get the ipo back on track joining us to discuss the latest in that saga, good morning to you both stephanie, i'll start with you what do you think? is adam neumann poised to leave the company, does the board have the ability to make it happen? >> there's a lot of stuff in play now i think adam neumann needs to think of what's best for him and the company and other shareholders i suspect that in addition to talking to board members, he probably needs to be doing some consultation with his family, with his closest advisers. the challenge adam faces now i suspect is like a lot of fallen founders, he is finding himself with not a lot of friends to turn to. it is clear from news coverage coming out that former employees are starting to reveal things about what's happening inside the company, b

carl quintanilla with jon fortt at post nine of the new york stock exchange morgan has the morning offng to start this morning with apple, with the company's latest slate of iphones hitting shelves this morning. josh lipton is at the apple store in san francisco where i think they're just opening, right, josh? >> reporter: that's correct, carl we're here at one of apple's stores in san francisco. doors are just opening i will step out of the way so you can check it out three new iphones officially hitting shelves today, carl. faster processor, longer lasting battery, better camera, the toughest glass in a smart phone, not just an iphone, but smart phone, period, according to the company. the big question for our audience, traders, investors, business people, did apple do enough to keep the iphone franchise stable over the next few quarters i checked in with mike olson he bets apple has done just that he is looking for iphone revenue to be basically flat to slightly down over the next fiscal year as we wait for the expected 5g iphone in 2020 of course, it is not just the new iphone, the

jon fortt has the details. jon?china labor watch is a new york-based nonprofit that highlights worker conditions in china and they put out a detailed 51-page report. you can find on its website. the report accuses foxconn, apple's manufacturing partner, of multiple worker rights violations, including unpaid bonuses, forced overtime, and overuse of students and temporary workers from outsourcing firms. here's apple's statement "we looked into the claims by china labor watch and most of the allegations are false. we have confirmed all workers are being compensated appropriately, including any overtime wages and bonuses all overtime work was voluntary and there was no evidence of forced labor we did find during our investigation that the percentage of dispatch workers -- that's the temporary workers -- exceeded our standards and we are working closely with foxconn to resolve this issue." guys >> jon, how much is this a foxconn situation, that foxconn would be responsible for, and how much of it would actually be apple?

i am carl quintanilla with morgan brennan and jon fortt at post nine of the new york stock exchange gettingo new highs we'll start with facebook. mark zuckerberg goes to the hill today. we're getting news out of the company on new ad formats as well julia boorstin has both those stories. >> good morning to you mark zuckerberg is making the rounds in washington, d.c., meeting with legislators, looking to regulate two areas, one, facebook privacy policies, two, responsibility for inappropriate, manipulative content on its platform. zuckerberg met with democratic senator cantwell and also attended a dinner with mark warner and senator blumenthal also joined take a listen. >> i was impressed by a number of the ideas and interests of facebook in advancing privacy on the internet but i hope that we also can continue the conversation >> zuckerberg's meetings span the aisle, he is meeting with republican senator moran, and supposed to see hawley and lee as well. senator warner's office saying they discussed responsibility and what steps congress should take to encourage competition in social media

jon fortt, back to you. >>> apple undercutting everybody with a $4.99 offering for apple tv plus. content at netflix will join us on how and whether that impacts other streamers. >>> take a look at gamestop getting crushed, down 12.5% after sadi pointing earnings we're back after a quick break t. help people find their way. fastsigns designed new directional signage. ...and got them back on track. get started at fastsigns.com. it's an honor to tell you that [ applause ] thank you. liberty mutual customizes your car insurance so you only pay for what you need. i love you! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ 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. >>> we're excited to tell you that the first shows will be available on november 1st, and we'll be -- thank you. and we'll be adding more apple originals every month. apple tv plus will be availa

i'm carl quintanilla along with morgan entrepreneur an and jon fortt.e'll turn to tech stocks to start. rebounding after losing billions of dollars in market cap after the president's speech when he called out social media companies' immense power they lost $58 billion in value with the nasdaq falling more than a percent it is now the time to buy. joining us jeffries brent phil and brent singerling guys, appreciate the time today. >> good morning. >> brent, did you hear anything new or unique in that u.n. address? brent, can you hear me >> yes, i can hear you fine. yeah, no, i didn't hear anything new. i think we have increased scrutiny and regulation happening across the tech sector the big platforms are not immune we've seen other sectors be scrutinized in the past. you know, it's difficult to predict the outcome. it certainly widens the range of what could happen and i think investors need to take that into account. you need to look at it on a case-by-case basis some companies may prove to be more regulated than others and some outcomes such as break

i am jon fortt with morgan brennan and sara eisen here at post 9 of the new york stock exchange carluintanilla is on assignment and we're going to begin this morning with facebook. it is down about 2%. several state attorneys general noungs announcing an anti-trust probe into the social network and alphabet, as well. julia boorstin has more on facebook from l.a. hey, julia >> jon, new york attorney general latisha james is leading a bipartisan coalition to investigate facebook for antitrust violations she's joined by seven other state ags plus the ag of the district of columbia, so far the attorneys general saying, quote, we will use every investigative tool at our disposal to determine whether facebook's actions may have endangered consumer data, reduced the quality of consumer's choices, or increased the price of advertising facebook shares moving lower on the threat of potentially large fines from these attorneys general. now, a separate google anti-trust probe is expected to be announced at a news conference outside the supreme court on monday. today's news is in addition to the

i am carl quintanilla with morgan brennan and jon fortt a big show is ahead.ing the open of peloton, set to go public at the nasdaq hopefully this hour. in a few moments, ceos of verizon, qualcomm sit down for a conversation about 5g. we begin with peloton. for that, bertha coombs, our eyes and ears today. >> a lot of eyes and ears. in a down market, the company priced overnight at the high end of the range had been looking for between 20 and $29 a share, 26 and $29, priced at 29, raising $1.1 billion, making it the seventh overall biggest deal this year to go public it has been a rough and tumble ride for unicorn brand name ipos, the ride hailing companies lyft and uber struggled, lyft having seen a new low just yesterday. slack also having seen a new low yesterday. smile direct that went public two weeks ago seeing a new low, down 38% from its debut. among the only ones of the big stellar names that's higher from its ipo is pinterest that one is up 45% the market continues to be ver cautious on these deals as they go forward the price at the top is certainly

i'm carl quintanilla with jon fortt and morgan brennan at the new york stock exchange. the u.s.hina trade war taking a bite out of apple, now on pace for the worst day in over a week as the white house's 15% tariff on a new batch of goods goes into effect over the weekend obviously, a big story for the markets. apple products expected to be hit this time around include the apple watch, air pods, the home pod, imax, and some beat headphones for more on where the stock may go from here, we're joined by an apple bear, pierre ferragu has a sell on the stock, a 170 target. also with us, apple bull, daniel flax, whose target is, daniel? >> carl, i can't give you a specific target, but what i can say is that while the near-term environment certainly remains sluggish with iphone and clearly there's a risk in terms of higher prices from tariffs impacting demand, we see a lot that we like over the medium term and i say that because the iphone install base is continuing to grow the company has opportunities to show additional growth with newer services like tv and gaming when we look at th

we will bring you full team coverage julia boorstin and josh lipton live at apple's hq and jon fortt jon, anything you're looking for that you're going to be focused on when the event begins and during the course of it? >> i think pricing when it comes to the i phone is the most important thing. not just the i phone 11 line, are there going to be tariffs, will there, won't there, and how that will play out different ways they can play this with still charging the same amount for memory, where the price of that has gone down so they can protect their margins there, how much do they reduce the price of the iphone x, reduce the price of the iphone 8 the margins on those tend to get much better over time and if they reduce a little less than before still attractive to people who don't need the latest iphone but apple gives themselves some cushion. then services. it's kind of similar to the disney story in that on the one hand it's not the bulk of revenue, but it might be the bulk of the valuation argument that apple ends up in effect making to investors if services look good, investors m

eastern time on cnbc >>> let's send it to jon fortt for a look what's coming up on "squawk alley. >>o bob iger resigned from the apple board effectively ending one might argue one of the most productive media and tech partnerships of the modern era. so who wins and who loses in this move? we will dig in from the investing side coming up on "squawk alley. >>> welcome back to "squawk on the street." momentum slowing in consumer discretionary and staple stocks. let's drill down on another underperforming group, the material sector. that sector under pressure after data from china showed industrial production hit a 17 year low, that's fueling renewed concerns over possible slow down there. and you have packaging firm ppg industries, freeport-mcmoran on the mining side of things, keep an eye on material stocks. back downtown to you guys at the stock exchange, carl. >>> bob iger is stepping down from the board of apple. what does that mean for the two companies as they launch into the streaming space? "squawk alley" is up in three minutes. i knew about the tremors. but when i started seein

jon fortt has more >> reporter: facebook has a new investigation and technology executives are not surprised is more than 100 top level technology executives from companies across a variety of industries we asked their opinion about investigations into big tech more than 55% of respondents say facebook is the company most likely to face punishment as a various of antitrust proeks, 7% say google and another 7% said amazon council members are executive leaders at companies across all sectors of the economy how do they feel about the big tech crackon overall 47% say they support the investigation. 28% oppose you can see all of those results from this quarter's survey at cnbc.com/tec >>> thank you. we got under 15 minutes to go of trade. doj is circling facebook including in its larger antitrust investigation. take a look at the this chart. how does this weigh on facebook? facebook, amazon, google all up double digits. stock least antitrust exposure is netflix what exactly is the market and investors pricing in, in terms of scrutiny from an antitrust perspective on facebook, mark? >> okay. i was

jon fortt has what's coming up on "squawk alley." >>> mitch mcconnell joins us on the heels of an op-edo go ahead and clear the reboot to nafta, usmca. talk to hiabm out that trade, impeachment, a lot coming up "squawk alley. >>> welcome back to "squawk on the street." i am dominic chu stocks are mostly higher on the final day of september, led by health care and consumer staples from a sector standpoint, but one of the key underperforming sectors is energy. even as it looks for the first positive month since june, dragged lower by names like occidental and devin energy. new data put into continued weakness in the chinese economy, and muted supply concerns that saudi arabia was returning to full export operations after bombings from the last few weeks. keep an eye on oil prices. back to you. >> thanks very much. >>> when we come back, a cnbc exclusive with senate majority leader mitch mcconnell "squawk alley" starts in a few minutes. don't go away. make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mm

. >>> let's send it over to jon fortt. >> we're going to keep talking about 85, among other things theousine commission, we'll talk about if there is a carve-out, what that could look like if there's not, what it means for the gig economy workers, not just uber and lyft, but door dash and all kinds of deliveries that's coming up on "squawk alley. great riches will find you when liberty mutual customizes your car insurance, so you only pay for what you need. wow. thanks, zoltar. how can i ever repay you? maybe you could free zoltar? thanks, lady. taxi! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ >>> welcome back to "squawk on the street." i'm dominic chu. nearly all sectors of the s&p are in positive territory today, save financials and real estate. energy, though, the standout upside performer the move also comes, and it makes it the farthest and furthest away, far and away the best-performing sector so far in september. the big gains are being driven by upside in oil prices, you've got noble energy, marathon oil, apache, hess, all among the leaders in that sect

let's send it over to jon fortt for a look at what's coming up on "squawk alley." >>> it's the new highes there's a company that set up a league that's going nationwide called play vs just raised $50 million. we've got the founder and ceo coming up on "squawk alley." >>> presidential candidate elizabeth warren's economic advisers targeting charitable giving with new taxes. our robert frank joins us to explain, i guess, robert. >> good morning. the two economists who helped elizabeth warren create that wealth tax are now pushing for a tax on charitable giving the two at the university of california berkeley say as part of any new wealth tax, certain types of charity should be taxed to curb abuses the first is private foundations. they have about $850 billion in assets right now so bill gates, for instance, would be taxed on his $100 billion in personal wealth along with the more than $40 billion that he has in the bill and melinda gates foundation that would include money given to that foundation by warren buffett. the second would be donor advised funds. they hold $110 billion the econo

i am carl quintanilla with morgan brennan and jon fortt a big show is ahead.c at the nasdaq hopefully this hour. in a few moments, ceos of verizon, qualcomm sit down for a conversation about 5g. we begin with peloton. for that, bertha coombs, our eyes and ears today. >>

. >> watch out >> all right well, thanks >>> let's turn it over to jon fortt with a look at what's cominget a good laugh out of that david faber reference there. the major indices all higher by about 1.5%, but not everybody doing well two companies, two recent joiners to the public markets, but two earnings reports and boy, at fidelity, leelieve your money we've got the ceo coming up on "squawk alley. when you open a new account.d and fidelity's rate is higher than e-trade's, td ameritrade's, even 10 times more than schwab's. plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. just another reminder of the value you'll only find at fidelity. open an account today. the street". i'm dominic chu. stocks are hovering right near their best levels of the morning, so far boosted by optimism on u.s./china trade talks. as you can see behind me, financial and technology sectors are leading the way higher but take a look at this. let's drill down on one of the notable underperforming groups you can see behind me in the red, that's the utility secto

i am jon fortt with morgan brennan an

let's get to jon fortt for those details. >> apple, morgan, holding on to the boost it got today as jpmorgantarget on a december 2015 $243 to a december 2020 $265 an iphone is the reason. jpm says supplier checks showed demand for the iphone 11 is stronger than expected jpmorgan also bullish on the iphone they expect next year they're raising their unit volume estimates by $1 million and 3 million for the december quarter. saying, we believe the volume upside will have significance in demonstrating that the firm can deliver balance of volume and profitability, even in a tough backdrop a word of caution just from me with the looming possibility of tariffs in december, it's possible that apple is building more u.s. inventory than usual, guys >> john, key point right there, thanks for bringing that to us mark, not only is apple one of the best performers in the dow so far for the quarter, but the semiconductor stocks, despite all of the angst around china over the last three months have done pretty well, too. >> they have especially as we move over to these new 5g phones, one of the semis that

. >> let's send it over to jon fortt so we can get a look at what's coming up on "squawk alley." >> withal turn up the heat on google, have google and facebook not only lost the east coast, d.c., but have they lost silicon valley in terms of morale, in terms of sentiment. we'll get into that coming up on "squawk alley. it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. ♪ are we supposed to dance? ♪ boy bands without dancing are just ok. get a better than just ok unlimited plan with spotify premium included on america's best network. only from at&t more for your thing. that's our thing. >>> welcome back to "squawk on the street." i'm dominic chu. stocks are rallying on the string of gop political headlines. the s&p 500 has nearly wiped out yesterday's losses cyclical sectors like tech and industrials are bucking th

. >>> let's send it to jon fortt with a look at what's coming up on "squawk alley." >> show time fors 13 it has been about a year since they said they're no longer reporting unit sales of the rehone, investors don't seem to ca that much we'll tell you if they should coming up on "squawk alley." (in dutch) tell him we need this merger. (in dutch) it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. for farmers here, this is our life's work. but when a recall happens, perfectly good food goes to waste. now, we've got away around that. looks good. we're on target. blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. it's used by some of the biggest retailers everywhere. a nice wedge. so more food ends up on your table, is that daddy's lettuce? yeah. and less food goes to waste. ♪ ♪ >>> welcome back to "squawk on the street." stocks are higher, off the best levels of the earl

. >>> let's send it to jon fortt for a look at what's coming up on "squawk alley." >> hi, david you might ago, the galaxy fold didn't quite make it there was a problem with the hinge then, but it is out w.no we'll find out from a couple of reviewers if it is any good. that's coming up on "squawk alley. if they're talking about you... you must be doing something right. experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer. it also has the highest growth in manufacturing jobs in the us. it's a competition for the talent. employees need more than just a paycheck. you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions. the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential. >>