matt: is the worry with yields, liz ann, earning seven good. is the worry that it will hit a consumer already tapped out in terms of savings? already running of credit card bills? already facing resumed payments of student loans? is at the big concern? liz ann: i think higher yields and the ripple effects into the economy but not just the consumer. you touched on all those areas. you are seeing a pretty significant increase in delinquencies in the subprime area, whether it is housing or auto loans. you have to go into the corporate sector. i think the clear reason why small caps in the aggregate have underperformed is because you are looking at a lot of zombie companies. companies that don't have the cash flow to cover interest. they have got maturities coming due. it will be more expensive for them to finance. a whole separate topic is the government and the concerns about interest coverage on the debt, which right around now it looks like interest expense is going to leavefrog -- leapfrog defense. you have debt components, the consumer side,

liz ann: depends on who you are.d inherited $10 million and you do not have to earn income and you are not quite a freak out at a 10%, 15% drop, go risk on. if you are a 75-year-old investor and you cannot afford to lose the principal and you have to live on the income, what i would say is entirely different. i always think shame on you if you provide a simplistic numerical percentage answer to a question like that. who is the investor? sonali: this is going to be annoying. where do you think funds end next year? goodness knows investors are all over the place. liz ann: i don't know. it depends on the data. i already said i think it might be premature to assume cuts as early as may. but if we see more economic deterioration -- by the way, i think sooner rather than later recession. somebody said you get to choose whether it starts in the fourth quarter of 2023 or fourth quarter of 2024. sooner rather than later is better because allows the fed not just to take their foot off the brake but consider moving into easier

you want the self funding companies that are the anti-zombies. >> liz ann, mixed there.eat to see you. thank you. >> good to see you, too. >>> one quick look at futures. the dow would open up 100 points higher. we have to leave it there. we have "squawk box" coming up next. have a great day. >>> good morning. futures are trending higher this morning following the fed meeting. no moving on rates, but the door remains open on hikes. >>> another big morning with earnings with eli lilly and moderna expected this hour. and apple is cleaning up after the bell. >>> and disney is going to buy the rest of hulu from comcast in the latest episode in the streaming wars. now it's all about price. >>> it's thursday, november 2nd. election day is coming up. 2023. "squawk box" begins right now. >>> good morning. welcome to "squawk box" here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. the fed holding rates steady as sp expected, but the door remains open for future hikes and levels remain elevated to tamp

liz ann, you are the best.olks coming up later in the show the next salvo in the war of politics of envy. wait until i talk about this meantime one thing we've seen investors holding off getting aggressive in the market is the action in bond stocks. you compound that even more what happens if we do indeed slip into recession. i want to bring in ubs large cap analyst, erika najarian. welcome back to the show. >> thank you. charles: we had bank stocks ready to go, mayo, the big mike mayo. next day, reuters, wall street week ahead, u.s. bank stocks falter as recession worries take hold. how do banks normally react in a recession? >> they don't do well, they don't do well in a recession and that's why i think bank stocks feel a little bit like value traps right now. they're clearly cheap if you take out the "magnificent seven." they're still trading 55% of the s&p 493, right? charles: right. >> they're quite cheap. the reason portfolio managers don't want to step in to take advantage of this valuation who wants to

up next, liz ann sounders is back breaking down her forecasts for the markets. what looks to be happening in the new year that's after this break. we're live from the new york stock exchange you're watching "closing bell" on cnbc. together, we built something truly beautiful. it takes years of dedication to get to this milestone. the new york stock exchange is a symbol of what america is all about the potential of an american dream. it is day one. a lot of work has happened to lead to this historic moment. the only way you can move a society forward is a true expression of freedom. ♪♪ i was on a work trip when the pulmonary embolism happened. but because i have 23andme, i was aware of that gene. that saved my life. >>> welcome back stocks taking a breather, but it has been a big year, especially in tech. so what's in store for the new year let's bring in liz ann sonders now. good to see you. welcome back >> thank you, scott. happy thanksgiving. >> yes, same to you. i'm sorry i missed you as well at impact. but -- >> yeah, ditto >> do it next year. >> that nasty

liz ann, thank you liz ann sonders from charles schwab david, the s&p goes negative still sfleng -- strengthcommunication services. >> although i notice apple shares, speaking of the largest market caps still down from highs of the morning. >> the impact of formula 1 for the strip where sara is right now, and many of the names that also operate casinos on that strip. stay with us hi, my name is damion clark. and if you have both medicare and medicaid, i have some really encouraging news that you'll definitely want to hear. depending on the plans available in your area, you may be eligible to get extra benefits with a humana medicare advantage dual-eligible special needs plan. all of these plans include a healthy options allowance. a monthly allowance to help pay for eligible groceries, utilities, rent, and over-the-counter items like vitamins, pain relievers, first-aid supplies and more. the healthy options allowance is loaded onto a prepaid card each month. and whatever you don't spend, carries over from each month. other benefits on these plans include free rides to and from your medical a

people really aren't there at this point in time >> chris, guy and i had a conversation last week with liz ann saunders from tschwab you can look at the sort of stuff that's underperformed this year, in a year that the s&p is up 18% how do you -- is that making your job harder? karen just asked you about small caps, but there's a lot of things that have been going on under the surface. we pointed out on the show here, if you think about things in monolithic terms and say, how can the market go higher with the banks acting that bad, does that give you some hope that maybe a lot of folks that have 5,000 and up targets at the end of 2024 could be right >> listen, you can -- they can also be right, i can also be wrong. the issue, i think you hit on something that's perfect so, just talking about the economy, what we've been talking about is an economic malaise it takes a ton to bring the u.s. economy into recession, it takes a ton to bring it up to 3% but we've had this kind of asin cron news growth that just makes this kind of lackluster type of growth. so, and we think we're going to see that go

. >> i know you retreated liz ann saunders' bit about wage growth and information workers slowing bigtime. >> and if you talk to yum, they have no problem getting employees. chipotle has no problem. so, i think that with the fed winning -- it's possible that you could say, like, carnival, that what you're having is a slowing of inflation, and the fed wants to see actual deflation. we're certainly headed that way. carl, i mean, i know my colleague, david, is absolutely right when it comes to the fact that there's this expansion, but he's not right in the fact that there's been this tremendous bear market underneath james coburn and robert vaughn. >> all those background players. we've made the point many times, but it bears repeating any number of times. you take out those seven, if you want to call it the seven that represent 30% or the nine that represent 35%, whatever it is, the s&p's market cap, as we say, the mega cap tech, there's nothing going on good. >> no. >> equal weighted s&p, we do go through this. i'm not sure what it really means in the s&p, by the way, that that large a per

i am fascinated with an always open question to you and liz ann sonders. at schwab doing with their fixed income money? kathy: what we see among the majority of the clients's they have been staying very short on duration and starting to get some confidence that they can move further out. very popular along the cd's. not really dipping their toes into low-quality but at these yields any bonds, investment grade corporate is looking attractive and they are getting more confident about stretching out duration. tom: the pros are worried about liquidity. should our viewers and listeners be worried about liquidity and full faith and credit? kathy: i do not think for the average investor the liquidity issue is going to be a big one. i think for traders, for people like us navigating the markets for our clients, it is an issue. but i also do not think it is a critical issue in the market. lisa: you are the one person i was most looking forward to speaking to today. i really want to get your understanding of what happened with the failed auction and whether you give

for iran, idf is now again hitting hezbollah targets in remember anne donovan and israel and -- lebanon and israel and syria. >> thanks, liz, first of all i think the secretary is spot on when he talks about calls for hamas to regulate its behavior and violations of law, land warfare. that's exactly the right thing to call for. but then to turn around and provide further financial resources to the very sponsor of that surrogate makes absolutely no sense. they are a state sponsor of terror and intricately involved in this operation as well so to make those kinds of overt claims while supporting iran, it make nososense at all. elizabeth: so, thank you, can he remember, for that. bring in retired major general dana patar and served in the military for 30 years and iran is continuing public executions including by hanging, hanging women and also human rights abuses. we've got an independent news outlet focusing on the middle east and iran executed 114 people since the 10/7 hamas terror attacks on israel, on dubious charges of things like corruption or enemies. what do you think of this, general? >> first of all, good afternoon