for "nightly business report," i'm kayla tausche in new york. >>> according to the "wall street journal," the securities and exchange commission is looking closely at how some big mutual fund companies are valuing tech start-ups that don't trade publicly and whether that process gives an accurate estimate of a company's worth. ross kinnel slnk director of research at morning star and joins us now. russ, good to see you. thanks for joining us. i think many people out there might not even be aware that these types of securities are in their mutual fund. >> that's right. you think of a fund owning publicly traded stocks, but for years, we've seen funds dip aip toe into venture capital and own privately traded companies that don't trade on stock exchanges. >> is it a big toe or a little toe, and are there limits as to how much they can own of these illiquid securities? >> that's the big question, and the answer is, it's a little toe. so, the exposure for typical investor via some major funds from a fidelity or a t. rowe is probably small, so the issue is not too big. overall, a fund is limi

kayla tausche is live in new york with some of the highlights of the power lineup. >> it's been a jam-packed day so far. executives from black rock to coca-cola talking about managing a mibusiness day to day and als planning for decades down the line or in ibm's case, the next century. their ceo just last week was dealt a fresh challenge in the form of an s.e.c. investigation into you how the company recognizes some revenue. here's how she responded to andrew ross sorkin on that question. >> we are very confident in our accounting and you'd expect this from a company like ours, 100 year, very well trusted, that we take everything through a process and we make very clear decision about when is it pie law and the right time you disclose and we're very consistent about that process. >> she also said a ceo regardless of gender needs to be able to take criticism well and have resilience. morgan stanley ceo james gorman said the company also needs to pay attention to what the company's stock is doing. gorman when asked about whether there was a talent war going on and whether morgan stanley was ab

kayla tausche is live for us at the new york stock exchange. tay la? >> hey, brian.at relief is coming because there is so much green on that screen for square as it prices -- trades its ipo today. because the company priced its ipo below the expected range. that allowed the stock to rise and had the company priced the ipo in the range where demand from big mutual funds was weak and they had opened down and the selling would have continued from there but it's up and sharply up. i'm told they're focused on building a book of institutional investors. at higher price it is would have run the risk of having a hedge fund heavy book that ended up flipping the stock. retail investors did get a shmal portion of the shares. about $243 million in proceeds bringing its cash space to about $400 million which ceo jack dorsey told us will be used to accelerate growth. he said he doesn't really see square as a bell wlwether for or unicorns but the fact is undeniable, companies may have misjudged what public investors may pay for their growth and their companies. the question for to

this is kayla tausche. you will have to sell 15, $16 billion in bonds to fund this deal.e transcript you guys told investors this morning on the call that would happen maybe around december. what assurances do you have that the market is going to not only be open but also be receptive to a bond sale of that size at that time? >> well, first of all, we have no debt today. we have a lot of cash, we are a company that generates significant amounts of cash every year. there is a lot of demand for our kind of credit. the rating agency reaffirmed our ratings today at a 1, a plus. we believe the markets are there for us. clearly we will have to wait and see how market conditions are in early december and if the time something not right we can even do it later if we want to. certainly 15 and $16 billion of that given our cash generation capacity we said today that we would have pre cash flow of $7 billion in 2016, we already have 6 or $7 billion worth of cash on our balance sheet. so it's rare for companies to have the ability to own debt like visa, in fact, they have never had t

kayla tausche, thank you. >>> well, we are about halfway through the final quarter of the year.we're going to bring you some of the best and the worst investments you can make heading into the year. what to buy, what to sell or even go short. the dow is soaring, the fed likely to raise rates in december. we have a lot more to do. stick around. and the families who've supported them, we offer our best service in return. ♪ usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. ♪ >>> we've got a full-blown market rally on our hands, even with the federal reserve all but slapping us in the face and saying it will raise rates in december. stocks are still up. imagine that. the dow is up 164 points right now. we've got nasdaq and s&p also up more than 1%. not every stock is higher though. in fact, qualcomm right now is the worst performer is the s&p 500. it's down 19% in just a month. i want to make a prediction, on tomorrow's show we'll have a what's wrong with qualcomm segment. >>> with less than two months left in the year

square's first day of trade, kayla tausche at the trading post right here at the exchange right behind us. >> bill, it is a pretty solid squa for square shares did despite the fact that square did price below that ipo range of 11 to 13 bucks, it priced at 9 but ironically it was the fact that it priced so low that caused it to rise today. had it priced within that range sliekly that would have spurred selling and that did not happen because investors some of those key long openly investors felt comfortable about the valuation. the stock jumped right from the open, it opened at $11.20, sank slightly down to a low of $11.05, but then when ceo jack dorsey came on cnbc it reached the highs $14.78 before settling into levels in the $12, $13 range up about 43% right now. at these levels square has a market cap of $4.4 billion, much higher than that implied price from last night but still far below it's last private market valuation. you will have a lot of these unicorn executives and investors scratching their heads and realizing that the price that investors would have paid for growth maybe

with us as always jon fortt and kayla tausche. let's bring in jessica lesson as well.nbc contributor. good morning. good to see you. lots to talk about. we'll start with hp. big story of the day. hewlett-packard enterprises and hp moving in different directions this morning. pc sales and printer sales down on the year. here's meg whitman this morning on "squawk on the street." >> i think the turnaround is working in enterprise services and the investors are starting to see that. and it's taken a little longer at enterprise group because that's a long lead time business. these are long-term contracts. the people we are talking to today we may not ink a deal for a year. so it's a little bit slower to turn that business around, but we're feeling pretty good about where enterprise services is. >> interesting to watch the two stocks. >> i don't know that we can read too much into these results. both businesses have serious challenges. we talked about hp enterprise, how it's not exactly number one in any of its categories. then you've got hp inc. they had inventory issues, b

with us as always jon fortt and kayla tausche. let's bring in jessica lesson as well.rning. good to see you. lots to talk about. we'll start with hp. big story

kayla tausche is here with what we're expecting. >> investors aren't exactly willing to put risk backn. sources telling me earlier today, advisers have been suggesting a price for the ipo below the $11 to $13 per share range stated in square's most recent filing. that range itself was a conservative value. they were meant to bring those lucrative investors to the table to buy this stock. i'm hearing this as investors to feel comfortable with the deal. part of that is square specific. the ceo had the second job, and has a lot of competition. another part of that is just the fact that investors have not been rewarded for buying ipos this year, even the high profile one. about half of the ipos that have gone out, a third of the deals even priced below the range. the company, when it's on a call with its advisers could still decide it wants to price higher. that happens sometimes. back in 2011, executives were hell bent on a deal, but advisers had to talk them down to $29 a share because that was where the big investors wanted to buy the deal. if square pushes back, i would be worried abo

kayla tausche is there.e even took some shots at hulu. >> he called hulu a cord cutter's dream because it has the network tv shows as soon as the day after they air. he said as far as a competitive landscape goes, the companies that will get crowded out are those not making good shows. when andrew sorkin pressed him about whether there's too much content out there now, hastings said, no there's not nearly enough. the theme of this morning and this whole day at deal book conference at the whitney museum of american history is investing for the long-term. positioning a company for the long-term? hastings said the fact that the company is barely profitable has negative $1 billion in free cash flow, still is awarded a market cap of $50 billion. he said if that's not a testament to long-term investing, i don't know what is. speaking of long-term investors, the first speaker this morning was larry fink of blackrock, $4.5 trillion under management. he has been speaking about building for the long-term and sharehold

let's get to kayla tausche. >> it's the first ever drop box open in san francisco taking the wraps offative drop box for business, the first ever of these types of events showing a new and richer platform for more than 150,000 paying businesses to use. let's talk more about it with drew houston, the ceo of drop box, who joining us fresh off the keynote from drop box open. it's great to have you. >> great to be here. >> what is so different about the new drop box for business that you felt merited an event of this scale and how much do you think it will help to woo in that very lucrative corporate customer? >> well, we found that drop box has been taking off in businesses. we're in -- we've got 8 million businesses using drop box, 150,000 of them have become paying customers recently, and we've put on an event because this year has been the tipping point where we've gotten much larger customers up and running, news corp., expedia, in many cases rolling out drop box business to tens of thousands of their employees. >> in the beginning the enterprise market was described as a david versus

kayla tausche joins us with more on the square ipo. >> that ipo is slated for the thursday before thanksgivingweek but in a filing this morning, the company said it's going to raise more money than originally laid out and it will offer a much more conservative valuation to investors than originally expected. at the high end of the current range, which is 13 bucks a share, the company would be valued at $4.2 billion. that's a steep discount to the $6 billion the company commanded just a couple months ago in the private market. there are a few reasons why this is happening. first, the ipo market has been unflattering to say the least. many marquee names we saw could public this year trading far below their offer price. investors feel once spurned and are shy to buy untested names, not to mention a lot of the same investors will be marketed square stocks who bought twitter a couple years ago which has not performed as well as planned. then there's square's financials. in the recent quarter losses escalated as revenue growth slowed and the company still spending a lot to market its product and to

kayla tausche is also standing by. bob, let's start with you.ndications here on the pricing? >> we want to point out, we're inside, not outside. we're inside, and we are standing next to the designated marketmakers. right now indications 10.5 to 11.5. let me bring in patty murphy, who is building the book. do we have any update? >> we just kind of honed it in about pricing b 11.5 on 4 million shares. >> do we have any indication of when we might start trading? >> wif a little bit of time to go but we're comfortable in the 11.25, half range right now. >> you're talking about a half hour. any idea? >> i have no idea right now. we're working with the syndicate to build the book, working with the other brokers to get as much volume on the print as possible. >> we've used this phrase a lot, working with the syndicate to build the book. patty, tell us exactly what you're doing right now. >> communicating with goldman, all the other people on the syndicate, the brokers in the crowd, putting all the order flow into the order book, getting the price equi

joining today's panel we have our very own mike santoli and kayla tausche and "fast money" trader guylcome one and all. mike, what do you make of this market? >> it's been this tame gentle fall back to the last five days or so. with he did finish slightly positive. if we were doing like we were in the midafternoon it would have been one of the smallest five day losing streaks ever. it is a working off this overbought condition. i think flat is really the rule -- each if you stretch back, 2081 on the s&p today, that's where we closed christmas eve last year. >> sounds like the ten year where rick santelli was saying we were trading at the level we closed at last year for so much of this year. we finally, kayla, have gotten a little break out there moving higher. >> i know a lot of people are paying attention to thursday, we get comments from janet yellen, also from stand fisher on thursday. it's the retail sales number on friday, too, that i think a lot of data hunters are looking for because that's going to determine how healthy is the consumer, are they actually spending money, what

welcome to "squawk on the street," i'm carl quintanilla with kayla tausche, simon hobbs, david faber.cisco's ceo will join us, talking about the quarter and the outlook. happy friday 13th.

i'm joe kernen along with andrew ross sorkin and kayla tausche sitting in for becky today. >> we've beenar's long path of you pronouncing that correctly. >> it only took two or three years. >> only. >> good german name. we're less than 90 minutes away from the opening bell on wall street, the futures right now are right where they were all morning down 40 points on the dow, down six and change on the s&p down 16 on the nasdaq. mixed session in asia overnight but stocks in china and japan hit their highest level in two months. other regional boards dropped in part new to data showing china's imports and exports both shrunk hat move. matters are indicating to be -- actually they are trading down fractionally across the board in germany, france. we still have greece because we just never know. >> get a little bit of grain on the board. >> they kicked the can drund. why take it off. >> we haven't taken it off. a week or two ago michele was here. i don't think you were here. we commented that -- >> put it back for me. >> okay. why not leave it there. it's not fixed. >> she actually said, by t