. >>> let's is is send it to jon fortt for what's coming up on "squawk alley. >> hey, david. signs of a slowing economy what do you do with tech stocks? we have two aces with us on post nine coming up each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs.

jon fortt is live at the made by google event in new york with new hardware announcements expected moren on that in a moment we got s&p 3 k, first time since september 19th we start with libra, down to 21 partners as seven founding members depart facebook's crypto association. kevin delaney and michael ferda. good to see you. this was quick the tepid announcements of support and poof why? >> you know, what's happening is that facebook wants to launch this currency which is basically a payment system what they've run into is sense that regulation would be aggressive parking l partners sent squish ee letters of intent and exercised their right to back out. facebook says they have 180 partners they vetted but we have seen visa, master card, stripe, paypal drop out. that's a big blow for some ambitions. >> that's the important point. that's the big point kevin made the right point basically the financial partners dropped out. the push in this area is that the infrastructure for global payments is just too darn expensive, moving money mrmr. -- whether consumer, it costs bips on bips, pretty

jon fortt is at microsoft's annual surface event in new york >> we begin with the markets this morningbeen a rough ride to start quk q q4 behave bob pisani and mike santoli to break it down bob, i'll start with you >> the important thing, this is the debate all year, what side of the recession debate are you on if you believe recession will start next yeear anyear, market dro markets will drop. you want to watch the big consumer names this year if there's a slowdown but no recession, these names should do well look what's been up, costco, home depot, nike, mcdonald's they're across several different categories watch if they start rolling over so far it's been modest. starbucks is rolling over a bit. jpmorgan had a negative comment on monday about them, but by in large they held up well if they start falling apart particularly after the jobs report comes out, i would get concerned. if you're in a slowdown camp, that's where i feel about all of this, then you can make a big argument defensive names through some of the consumer staples, walmart, kimberly clark, pepsi, they'll continue to

for changes, investing in companies that i can't exit very quickly >> all right let's send it to jon forttup on "squawk alley. jon? >>> speaking of companies going public, it has been a rough ride this year for ipos so what does that mean for valuations we talk to the dean of valuation, from nyu, find out, is it time to bargain hunt growth coming up on "squawk alley. >>> welcome back to sidewa"squan the street." retailers like dollar general, target, walmart hit 52 week highs friday joining us, the ceo of j rogers worldwide enterprises. good to speak to you the mover in retail today, realistic, were hopes too high with the phase one trade talk we got on friday? >> well, we thought the long nightmare was over, right, that we were not going to have higher tariffs and push out the december 15th tariffs forever. now maybe we're not. yeah, i think very normal. what happened friday, very normal what happened today i think the real story is we're probably going to see relief on tariffs, probably not seeing the 25 go to 30%, probably not going to see the december 15th tariffs kick in. we're going

. >>> let's is is send it to jon fortt for what's coming up on "squawk alley. >> hey, david.g economy what do you do with tech stocks? we have two aces with us on post nine coming up each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the 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. that could allow hackers devices into your home.ys and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. >>> we

i'm carl quintanilla along with jon fortt.ig week for tech earnings amazon, intel, microsoft and twitter on deck this week on a positive start in the run-up in tech continue dan and steve are here with me with answers good morning, guys good to see you. i'm wondering, dan, before we get to the bignames, if you have been thrown as a breakdown of software and worries about i.t. spending the next few years? >> you are seeing cracks in the armor. high multiple software crowded from the institutional perspective. many head or the exits it is overdone in what we are seeing it shows the risk in earnings season continues to be front and center >> steve, quickly on that? >> i would agree software particularly has been taking a header. companies are doing fine you sell at 38 times and 8 times sales, it doesn't take much to take the stocks down we will play it out a few more months before coming back. >> dan, it is cloud week how much does that matter versus intel with insight in the i.t. spending question? >> it is massive when you look

carl quintanilla with morgan brennan, jon fortt post nine of the new york stock exchange.sion highs now, the dow is up 56 points. we'll start with the markets major averages muted after the rally that closed last week. dow and s&p breaking a three week losing streak nasdaq best week in a month. tech stocks are part of the story. where are the buying opportunities? christina hooper joins us with larry glazer good morning to you both good to see you. do you think anything fundamentally changed as a result of the talks? >> no, but i think markets got ahead of themselves. i mean, let's think of it not as phase one, but phase 0.5 the u.s. thinks they made an agreement, china doesn't necessarily believe the same stocks got a little ahead of themselves, but there are always opportunities to find tech gems out there. >> where are they? at least, what leads you to them in this environment now? >> well, i advocated that chinese took looks very attractive, that has been beaten down since the u.s./china trade wars began seen small recoveries, but there are a lot of opportunities in ch

jon fortt has the morning off.ng to start the hour with breaking news out of the fed for that, we turn to ylan mui. >> the federal reserve will do repo operations through 2020 the fed saying it will purchase t bills into the second quarter of next year we know fed officials discussed the need for a plan to address volatility in the overnight funding markets. chairman powell said a plan would be coming soon now we have it the fed overnight repo operations will be conducted through2020. t bills will be purchased through the second quarter next year the fed also pointing out that this is not the same as qe and that these actions will not effects the stance of monetary policy back to you. >> thank you very much we'll look for market reaction on those immediate headlines as we said earlier, dow up 408. going to steve liesman, talk about what this may mean steve, you raise the question earlier in the week about what additional purchases would mean. >> yeah. so the fed has this issue of continued illiquidity in the market

i am carl quintanilla with morgan brennan and jon fortt quite a session already as we fell about 300s on the wake of a weak ism number. dow briefly fell more than a thousand points over three sessions now just around that line. it will be the worst week for the year for the dow as long as it is below 26012 i think. selloff in tech stocks leading to market decline this week. who better to turn to than bob peck who joins us this morning great to have you back. >> thanks for having me again. appreciate it. >> it has been a crazy few weeks in the ipo market. what do you think people are misunderstanding or getting right? >> couple things first of all, benchmark, the s&p up 15% give or take. you look at all tech ipos this year, they are up a little less, around 13% give or take. if you do x, you're up 20% actually you are okay, what's interesting if you look at first tick to now, tech ipos are down slightly the question is what's driving that what you're hearing or seeing is investors are looking at a couple different things. one, what's the revenue visibility of the companies, is there a

post nine with morgan brennan and jon fortt. busy news day, selloff in place.n 245 we begin with the u.s. widening the trade black list, now including china's top ai startups ahead of trade talks later this week. kayla tauschehas more. >> reporter: they can no longer purchase american parts without licenses, both halted in trading. and alibaba backed company for ipo, they say they assisted china in detention of muslim minorities no word from commerce on why they're moving on this now, but it is clear tensions are ratcheting up ahead of high level trade talks thursday they weighed restrictions for government pensions investing in chinese stocks, and tuesday, this coming tuesday, tariffs on $250 billion in chinese goods will rise to 30% china as we know is taking its own action against the nba despite all this, outright messaging on china in washington has started to warm a bit. in a september 20 press conference, president trump when asked about a partial deal twice said we're looking for a complete deal. i am not looking for a partial deal when asked this same

let's bring in jon fortt for more on mark's legacy. jon?, back when he was the ceo of hewlett-packard and he was really known as a guy who paid attention to detail hewlett-packard was in the midst of a lot of upheaval had just gone through the acquisition of compaq, had missed several quarters. and they found this guy who very few in silicon valley had heard of, mark hurd, who had run teracompany. big data turned out to be the future and he came in, did quite a bit of cutting at hp and got that ship sailing in the right direction, and then he ended up at oracle, controversy as he left hp over expense reports and a relationship with a contractor larry ellison, the cofounder and then ceo of oracle snapped hurd up the two had developed a relationship over business and conversation and tennis, a shared love of tennis between ellison and hurd a few years ago, he got the title of ceo under larry ellison and hurd had been the public face of oracle, leading sales, just leading the charge in the cloud as that company continues to transform in the cl

i am carl quintanilla with morgan brennan and jon fortt at post nine.ket improving on headlines from larry kudlow. facebook, amazon, alphabet trading 7 to 15% below peaks on that, we turn to mike santoli about what it says about big tech valuations. >> valuations moderated, sentiment has turned i think mostly we're talking about alphabet, facebook, and amazon opposed to netflix. analysts talk about potential some of the parts type valuation. break up value type analysis of the companies, not because they think they're likely soon to be broken up, want to surface the idea there's value not recognized in the markets. it was emblematic, saying google cloud partners is worth $225 million. if you buy into that, is amazon web services worth all of amazon's market cap? you can go on with the conventional wisdom that facebook was somehow broken up, someone some of those off, maybe the sum would be worth more than it is now, right so i think this is mostly a wall street exercise. but it shows you that faang became faang because the idea was they created platform

. ♪ ♪ >> i am carl quintanilla with morgan brennan and jon fortt at the post nine.start with netflix, another miss on subs well off session highs mark mahaney joins us to talk about that with julia boorstin let's go to you first, julia, set up what we heard last night. >> reporter: netflix may have beat on earnings per share, largely because of higher prices they rolled out over the course of the year. there are big questions about subscribers, international subscribers better, domestic subscribers fell short, and guidance, the numbers were light, but the ceo says they're taking into account all of the competition launching and stressed they have been preparing for this onslaught of new rivals for years, saying they're ready to go, all their investment in original content, especially in the u.s. in movies should help make them more valuable to consumers. >> mark, i realize we're off highs of the morning, but the move as a result of results does it make sense to you >> yes, just because fears were great, widespread calls across the street for them to miss internation

i am carly fiorina with morgan brennan and jon fortt at post nine of the new york stock exchange stocksg some steam, off session lows, down now about 175 points on soft data this morning. we'll be over the broader market action but we start with apple, rallying this morning. josh lipton talked to tim cook last night after the earnings print and joins us this morning. josh >> reporter: carl, investors want to see iphone trends improving. that's what they got with the latest report. iphone revenue dropped 9% in q4, but revenue dropped 12% in q3. ceo tim cook telling me for iphone specifically we improved year over year performance even more compared to last quarter, and significantly compared to the first part of the year, and we are off to a really good start with the iphone 11, iphone 11 proand iphone pro11 max i asked about tariffs and trade tensions cook tells me he did not ship more iphones here to the u.s. to try to get ahead of potential new tariffs in december, nor does he plan to, as analysts know that means recent positive supply chain data points represent real demand. more bro

i'm carl quintanilla here is jon fortt.n brennan is at the international astronautical congress more from morgan and amazon's jeff bezos in a moment >> we'll begin with wework softbank plans to take control of that company valuing it between 7.5 billion and $8 billion. a huge drop from where it was valued, also cutting adam newman's stake down to double digits good morning to our guests >> good morning. >> mike, i know that you're f m familiar with softbank, softbank a big investor in uber why is softbank doing this with wework is this an existential moment for them are they at risk of this investment taking them under >> this is a real crisis for softba softbank the story the past few years is uber is a huge high point or low point, and wework and how they valued the company, but soft bank, a huge vision bank came flooding in giving companies that arguably shouldn't have been propped up more runway and a longer time to survive and vcs out here say this is distorting the economics of how the values should work the companies

i am carl quintanilla with morgan brennan and jon fortt they addressed the policy on political ads, the remains under pressure about the election elizabeth warren says here's the thing, trump isn't just posting a lion his own page for his own followers, facebook is accepting millions of dollars from trump to run political ads, including ones with misinformation and outright lies. joining us to breakdown the speech, response and more at post nine, early facebook investor, roger mcnamee, author of "zucked". what were you most surprised by, rocker >> that he wanted to come out in public and say all of that to me, the tin ear is so extreme that if it hadn't been for all the other nonsense coming out of washington, it would be the only story people would be talking about today. at the end of the day facebook isn't actually having a free expression problem, it has an amplification problem, it has an issue of essentially because it uses micro targeting to increase engagement, it is going to promote things that get people to spend the most time on the site that's stuff that appeals to fear, out

i am carly fiorina with morgan brennan and jon fortt.day of earnings, some tech, some not to sort through today, microsoft, paypal, ebay and others on the tape two biggest movers going the opposite way, tesla is surging, twitter is tanking julia boorstin and phil will he be -- lebeau is with us. >> this is a stock having a rough day, one of the worst days ever as a public company, on pace for the worst month since july, 2018 shares down almost 19% lower despite growing the user base to 145 million active users. the reason it is tanking, revenue and earnings fell short of expectations as technical issues keep them from fourth quarter ads. jack dorsey looked to reassure investors. >> unfortunately we had some missteps in our map ads in july and august despite that, saw strong september results and good advertiser momentum. >> he stressed the commitment to clean up the platform and eliminate abuse. >> 2020 elections and integrity of the conversations around them is our first priority within how we think of health we are paying a lot of atte

i am carl quintanilla with morgan brennan and jon fortt we start with a win for microsoft, beating amazonm in that $10 billion defense contract with the pentagon known as jedi. morgan has been covering this story from the beginning a lot of news over the weekend. >> a lot of news over the weekend on this. this was a downright dog fight between microsoft and amazon two years, laden with controversy. what is the joint enterprise defense structure. they'll unite the u.s. military within a single data framework, an umbrella cloud for all of the military's current clouds. up to 10 year contract with ceiling value of $10 billion amazon, microsoft, and earlier in the competition, ibm oracle, even google vying for this microsoft saying we look forward to expanding our long-standing partnership with dod, support our men and women in uniform at home and abroad. with our latest unique and differentiated azure cloud capabilities amazon saying we're surprised about this conclusion. abs is the clear leader in cloud computing and tee tailed assessment purely on the comparative offerings led to conclusio

i am carl quintanilla with jon fortt, morgan brennan at post nine of the new york stock exchange watchingkets and trade today, long awaited china trade talks are back on. kayla tausche is in d.c. good morning, kayla. >> reporter: good morning, carl. the rumor mill of potential breakdown in u.s./china trade talks, saying there's a big day of negotiations china, they want to make a deal, but do i i meet with the vice premier tomorrow at the white house. the idea was floated by chinese officials and media overnight they would leave washington early in a fit of frustration over hawkish measures the u.s. administration unveiled earlier this week. now the president and top negotiator from china will meet in the oval office visits happened a handful of times this spring. during the visits they resulted in agricultural purchases or tariffs being delayed. that's the reason the market is optimistic this time around. earlier this morning, going into trade talks, the treasury secretary sounded optimistic tone as well >> how do you expect it to go today? >> reporter: that's the treasury secretary, if

. >> google is holding its made by google event in new york jon fortt is there and joins us with a lookr let me start off these things tend to focus on phones. we got the pixel 4 $799 price expected to be released october 24th lot of features including the camera which they always tout and then motion sense which is kind of a radar gesture-base thing to control the phone waving your hand over it big picture, though, this hardware operation is part of google's other revenues. less than 15% of revenue overall, a lot smaller percentage of profit because they're not making a lot of money off these things it's about ecosystem protection. similar to what we saw out of microsoft and see out of amazon with things like the echo line they've never broken out revenue or units for those things specifically, but they have a strong story in a.i. where they're trying to take the whole ecosystem with it. aside from the pixel 4 phones we expect to hear about a pixel go laptop we heard about pixel buds. microsoft also came out with their ear pod competitors. you can kind of control from your ear some a.i

regard to where that spread is david faber, back to you >> thank you, rick let's send it over now to jon forttey, david. we're going to continue to watch these markets in the wake of that jobs report higher as you mentioned. we also got the ceo of vice media after the acquisition of refinery 29. going to checkn t dit ionheigal industry that is coming up on "squawk alley. we're carvana, the company who invented car vending machines and buying a car 100% online. now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car. that's it. so ditch the old way of selling your car, and say hello to the new way-- at carvana. >>> altria launching in the u.s. that heats tobacco instead of burning it an attempt to give users the same nicotine rush but with fewer toxins our own angelica is back to talk

let's send it to jon fortt for what's coming up on "squawk alley." >>> hey, david we have an exclusiveata e can get very complicated. but cdw will assist your needs and implement a dell emc unity xt all-flash unified storage platform. it delivers speed and efficiency, while providing simplicity and flexibility. for unified storage platforms, you need dell technologies, and it orchestration by cdw. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. the street." stocks are higher, the s&p 500 hitting a fresh record in early trading, dow less than a percent away now, strength in tech stocks offsetting weakness in defense groups like utilities and real estate. let's go to one of the other outperforming groups, health care it lagged the broad other mashlgt this year, is 2% off recent highs december last yea

let's bring in jon fortt for his take these names have had a decent selloff since the trade war beganf you take a look at horsepop cisco. this is about uncertainty over this trade war morgan stanley saying it's not so much affecting small and medium business spending its these big businesses that are really hesitant to really spend because of uncertainty on how the trade war is going to work out. they've been doing checks throughout the year, specifically zero in on the period since may when the talks with china seemed to have really gone south they say it looks like it's getting worse. for some of these companies. they mentioned specifically those three. they also mentioned commentary out of dell hasn't been that positive they are looking to see whether this is bottoming out or getting worse. though some signs say could it be getting worse >> what are the last areas that see a cut to spending as this confidence starts to drain >> the last areas that see a cut to spending. >> areas they are not cutting. >> areas that large businesses are not cutting? >> ah-ha >> the goldman note more

. >> the algos >> let's send it to jon fortt.wk alley." >> speaking of the u.s. economy, democratic presidential candidate tom steyer is out with his economic plan today. he is going to join us got some questions for him about some ideas he's got, kind of controversial. that's coming up on "squawk alley. r 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. that could allow hackers devices into your home.ys and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and

. >> thank you now let's send it over to jon fortt with a look at what's coming up on "squawk alley"r ceo of tinder he's going to join us and we'll talk about the $2 billion lawsuit he has pending and a philanthropic venture he's got might want to do a little role reversal, tease my show and toss it back to scott wapner. >> good stuff, jon, thanks. >>> it's been a volatile start overall but we've seen a little chill after chile called off a key summit where president trump and chinese president xi jinping were expected to discuss phase 1 of a possible trade deal we are seeing weakness in material stocks as you can see behind me here, so stocks still relatively in a holding pattern. the worst performing sector so far is the energy side of things after data showed a surprise building of u.s. crude stw inventories. you've got hess adding to losses after posting a miss on revenues and lowering its capital expenditures outlook the rest of the year so the energy in focus and it's a fed day, we'll keep financials in focus as well i will sent it back downtown to you guys at the new york stoc

. >> okay, thank you, rick santelli now time to sending it over to jon fortt to get a look at what'sxecutives who have a startup coming out that they say could upend the cloud market 'llien to them make their case and ask some questions coming up on "squawk alley." rah t how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠ as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer

. >> thank you, rick let's send it over to jon fortt so we can get a look at what's coming up on "squawkhe markets, of course, and also going to talk to the owner and co-owner of a couple teams sacramento kings with the nba in the news, and the sacramento shock. that's an e-sports league that recently -- e-sports team that won overwatch league lots to talk about the future of e-sports in business that's coming up on "squawk alley. >>> welcome back to "squawk on the street." red across the board with every sector in the s&p trading in negative territory, amid fading optimism over u.s./china trade talks. that's draining the tech sector and chip makers. on pace for the worst day. now back downtown to you guys. >> thank you very much. >>> competition from lower cost natural gas and renewable energy rocked the coal industry coal companies are looking for new markets overseas, sparking a new war between the states scott cohn is in powder river basin. good morning >> reporter: good morning, carl. behind me, sort of an endangered species, coal fired electric power plant. utilities are taking the

. >> thank you >>> all right, let's send it to jon fortt with a look what's coming up on "squawk alley paypal after earnings is having what could turn out to be its best single day in a year. we're going to talk to the cfo of paypal coming up on "squawk alley. fl 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. ♪ the street." stocks are hovering below the flat line, losing some momentum through the course of the morning so far the s&p 500 is hovering around that 3,000 mark, trying to work towards record highs we have weakness in communication services sectors as well as energy being offset by a little bit of strength in the technology sector, up almost a full percent that's following a string of strong earnings results. you have paypal and microsoft both pushing that sector higher, but the real standout is a chip maker, lamb research, posting better than expected profits and sales, maybe allaying fears about weakn

jon fortt is joining us as well. apple closed up today. cebook trading by about 2% key things we're looking out for this, jon? >> 36 billion in revenue and 86 billion, at least, for the holiday quarter. i think the holiday quarter, that guide is the key thing. it's all about iphone and all of this run-up in apple stock is anticipation of a great number. >> i know they don't break out the shipment numbers for iphone anymore, but how important is that versus the services piece of the puzzle? >> iphone number is the important thing to this run-up service is about way in the future iphone is about now. >> let's hear the numbers. josh has got them. >> guys, apple reporting earnings per share, $3.03, versus expectations of $2.84 revenue is also better than expected at $64 billion. the street was at $63 billion. gross margins 38%. segment iphone revenue 33.36 billion. better than expected the street was looking for closer to 32.4 billion phone revenue down at 9% a quarter. sequential proochlt. mac revenue 7 billion. wearables, home and accessories

i am carly fiorina with morgan brennan and jon fortt at post nine of the new york stock exchange stocks'll be over the broader market action but we start with apple, rallying thi

jon fortt has the morning off. going to start the hour wi

strategas research partners here as well let's start with the big stock story of the day amazon and jon fortto break that down for us we have this stock down 9% last night after earnings it's now climbed back to be only 1.5% from flat >> that's right, contessa. yeah, there's some tough news in here if you were expecting profits and profit growth from amazon amazon switched back to its old self it's time for some investments when amazon invests, they tend to go all in the company talked about adding 118,000 full-time and part-time employees during the most recent quarter, going up to 750,000 total. that's like a 19% add in one quarter. and then you look at the investment in one-day shipping for the holiday quarter at about 1.5 billion, just incremental, those are staggering numbers at the same time, though, you take a look at cloud, which is an area that you look to for growth with amazon, and yes, while the number might have fallen short of where some people expected the backlog, the commitments that customers have made to go into aws, those are really high. up 54% year over year to $27 billi