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and aetna's bid for humana merging the two companies would put the firm on closer footing with united health for cvs, it strengthens its fight against amazon getting into the business. the merger would also complicate cvs's new five-year deal with anthem announced last week to support its pbm. >> you mention they could have been talking for quite awhile in thinking what the catalyst is for them to move forward with the deal, you mentioned amazon potentially entering the pharmacy space is that a catalyst also the way president trump has piped up havenrecently about sln drug companies is that it >> it's more than just the landscape of competition you have united health that has all these pieces together. they a formidable pbm that can offer you other things you have the competition between cvs and express scripts. there's more focus on the middle men and what they do with regard to costs whether they drive them down or up for the insurers, you can't be a stand-alone insurer anymore. you have to offer more services. because what people want is something where they say i know i'm getting a conti

we saw johnson & johnson and united health with earnings today.nings season has been pretty great. a lot of the companies beating on top and bottom line. much like what we saw from ibm today after the bell. for the rest of the week we'll watch for the other dow components. american express, procter & gamble, ge, not a dow component but ebay, too. people are feeling optimistic. liz: you are in the thick of the action. good to see you. >> you, too. >> remember the media's dire prediction on election night that the markets faced catastrophic collapse the next day. >> markets around the world are in turmoil over trump's astonishing victory. >> u.s. stock markets will open but the global markets were very quick to respond to donald trump's defeat of hillary clinton sinking in anticipation of a trump presidency. >> global investors expected and wanted a hillary clinton presidency, they didn't get it. now you see volatility guys. liz: with me now is economist and author of the capitalist code, it can save your life and make you very rich. look who's here

united health care adjusted earnings per share topping expectations. also raising guidance, reporting earnings this morning. also other names including goldman sachs and morgan stanley. we'll bring you those numbers and expert analysis. both stocks in the banking or, morgan goldman trading. netflix subscriber growth topping expectations last may. streaming giant with science of billions of dollars on its own content. they start digesting the plans. interesting wardrobe choice going viral. we'll tell you about that. markets this morning look like this after another record that yesterday. dow industrials up just a point. s&p down a point. s&p data point. nasdaq also down by three points. major indices closed a record high. the dow inching closer to 23,000, a number we have yet to see. in europe the indices right now in the s&p 100 fractionally lower. in asia overnight, markets closed mostly higher with the exception of china once again. chinese economic data out this week here at nikkei average in japan up a third of a percent. weinstein brothers are fac

united health, up 10%. travelers up 5%. certainly a week of records.dow jones industrial average and s&p 500 for that matter. liz? liz: we may break hearts right now, nicole. market bulls, you specifically need to prepare to have your hearts broken by valentine's day, says bank of america merrill lynch. their researchers predicting 10% correction by mid-february, citing federal reserve rate hikes. sam stovall, strategist. 10%, four 1/2 months is little extreme or no? >> liz, what you're doing. telling me i will get a rock in my halloween bag and coal in my stocking? i will have a broken heart? maybe that makes me see red. let's put things if perspective. we traditionally have five or 10% every year. show you i have no social life i counted up, we have 56 of them since world war ii. declines of 10 to 20%. the amazing thing on average we to the back to break even in average of only four months. we could go through the 10% decline now and we would in record high territory by valentine's day. i would really look for something like that, and take advantage

>> bluecross, blueshield, kaiser, united health, provide insurances in the district's exchange.aiser and care first primarily serve both individuals and the shop or small businesses. >> so what will the open enrollment process be like this year? we know there won't be as much advertising because they cut that back and there won't be as many navigators because those are cut back, too. >> that's more nationally. we have pretty much made commitments with regard to advertising and to navigators, so we will continue to do that going forward. and the process will continue to be the same. we have community partners, we have people who will be going out to help people enroll, and we are advertising on buses and a whole host of other places so people know that they can go to d.c. health link and begin to shop. >> mila, are you concerned at all that some who are currently uninsured may think, you know, there's do this now because there's so much in a state of flux? >> i'm very concerned. in fact, this reminds me of what it was like in 2013, and you heard about death panels and there was a

health care standout is the best performing sector in the s&p united health group adding the biggest boost so far and the dow as it approaches that 23,000 mark for that index. the stock is hitting an all-time high on earnings and strong guidance other leaders are aetna, as well that does it for "squawk on the street." let's send it downtown to the new york stock exchange for the start of "squawk alley." guys, back over to you >> thanks for that good morning, it is 8:00 a.m. at netflix headquarters in los gatos, gacalifornia, 11:00 a.m.o wall street. welcome to "squawk alley." ♪ ♪ >>> good tuesday morning welcome to "squawk alley." i'm carl quintanilla with john fortt, mike santoli here at post 9 of the new york stock exchange joining us this morning, paul holland. good to have you back. let's talk some netflix this morning. off the highs today, but the streaming giant hits another record high today, adding 5.3 million subs in q3, promises an $8 billion bet on original content next year. last time you were with us you called the company pure heroin when compared to its competitors. it

. >> united health care is on the move today better than expected full year profit forecast, joe. >>h, 2018 looks good and this kind of takes us back to the conversation of a couple minutes ago. think about where the stock was on friday. with the announcement for president trump, fell down to 186, it's right back to 203. what matters most is the earnings and the guidance looking forward. jim cramer pointed out yesterday, i think that's still the better one. >> pete, speaking of spirit airlines. >> yeah, they get a little better revenue guidance. the problem with this stock, scott, is they have absolutely lagged the rest of the sector. you want to talk about an underperformer, the stock's trading at $35 when you look at the highs toward $60 and look at united and delta and american and the performance of those versus this, this is an underperformer. i think it's still out of favor. the biggies have gone after them in price if you start to look at delta and united, they have gone after spirit in pricing and beating them at their own game on the lower end and that's what's getting them

. >> when united health reported record numbers this week everyone is okay with a company whose stockt hurt and they're okay. that's not the way it works. that's what this is about. >> neil: but it does, to kennedy 's point it does perpetuate it. >> absolutely that doesn't fix the cycle. corporate welfare is disgusting on every level. free market is the only thing that will truly drive down prices and also allow for innovation and that will save healthcare in this country. >> neil: kennedy final word and i also want to thank you very very much. great job. the meantime up next charles has you covered no matter which way the markets go. some good individual n neil: no pain no gain. what do you have, charles? charles: software data as symbol. i love the way the stock is acting. neil: adam, what do you think about that? >> something that's very volatile, people should be careful with it. neil: the market goes down, charles, what do they do? charles: very tight trading range. neil: ben, your thoughts on that? >> i love dividends coming in. i think it's a great company and a great pick. nei

so united health in 2016 versus 2015, up 25%, cigna up 27, wellpoint no increase and hugh man -- humana is actually down. that's not the part where they make money. the cost-sharing reductions are money that goes to subsidize low income people and their out of pocket costs. instead of being unwieldy and sending reimbursements to everybody, the money goes to the insurance companies. so it's a pass through to the insurance companies. >> getting rid of csrs hurts the poorest people. >> it has zero effect on insurance companies. so if you have a beef about insurance companies, which a lot of people do and how much money they make and we've talked about it a lot, that's fair and it's a separate issue. >> but when it comes to csrs, insurance companies, where's the beef? >> this is not the problem. >>> moving on to president trump's tax plan, which still needs to be worked out in congress, still needs a lot more details. we know some broad strokes already. a simplified tax code, fewer tax brackets, and of course big, big tax cuts that benefit businesses. well, now there are some ideas in the p

health care standout is the best performing sector in the s&p united health group adding the biggesto far and the dow as it approaches that 23,000 mark for that index. the stock is hitting an all-time high on earnings and strong guidance other leaders are aetna, as well that does it for "squawk on the street." let's send it downtown to the new york stock exchange for the start of "squawk alley." guys, back over to you >> thanks for that good morning, it is 8:00 a.m. at netflix headquarters in los gatos, gacalifornia, 11:00 a.m.o wall street. welcome to "squawk alley." ♪ ♪

. >> when united health reported record numbers this week everyone is okay with a company whose stock00% with billions in the bank. let make sure they don't get hurt and they're okay. that's not the way it works. that's what this is about. >> neil: but it does, to kennedy 's point it does perpetuate it. >> absolutely that doesn't fix the cycle. corporate welfare is disgusting on every level. free market is the only thing that will truly drive down prices and also allow for innovation and that will save healthcare in this country. >> neil: kennedy final word and i also want to thank you very very much. great job. the meantime up next charles has you covered no matter which way the markets go. the markets go. some good individual n today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right? yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even hi

make a decision next year over whether it will spin off, sell or keep its $3.5 billion consumer health care unitontains the world's best known health brands. ceo ian read said the unit is distinct enough from our core business, there's potential for its value to be more fully realized outside the company." continues a recent theme for pfizer and the rest of the pharmaceutical industry. many companies spinning out or selling so-called noncore businesses merck of course sold its consumer product units to bayer in 2014 for $14 billion. pfizer, itself, spun off its animal health business the year before pfizer had at one point been discussing splitting more broadly into two separate companies, one its faster growing newer medicines and the other, its established products business now with talk of a potential sale of the consumer unit, analysts suggested pfizer could use the proceeds to make an acquisition of its own with most speculation around bristol-myers skr squibb as the target most expect pfizer to wait for certainty around tax reform before doing such a big deal no shortage of potential pool

united health of 480% and well care health of 480%.et with mitch mcconnell today. they are expected to discuss the budget, tax reform as well as health care. lauren: that will be interesting. cheryl: he says interesting. i say awkward. cheryl: white house national security advisor h.r. mcmaster said the u.s. ally support president ally support president trump's move on the iran nuclear deal. >> what the president has always done this he set out a marker, a marker to a rainy and into allies and partners that we have to fix fundamental flaws in this deal. a week deal that is being weekly monitored or the president has made clear that he will not permit this deal to provide cover for what we know is a horrible regime to develop a nuclear weapon. cheryl: this is after the president says the u.s. had canceled the nuclear deal unless iran solely complies with the 2015 agreement. lauren: israeli prime minister benjamin that yahoo! is on "sunday morning futures" with maria bartiromo. pretty big decision. >> the president is right to put that f

and united health who've already done the work who've already created in the minds of older people because that is where the money is they know all about getting your drugs getting your medications getting your prescriptions online in the mail so here comes amazon and it says you know we're looking into this goldman sachs is looking at what what part they could play in this five hundred i don't know what these are one of these candies what if they were five hundred sixty five hundred sixty billion dollar market and and mail order if you will is twenty five to one hundred billion that amazon is looking at now on friday when this was announced i'm going to run out walgreens c.v.s. rite aid their stocks tumble shunts are they hand of maybe will be involved in this now think about this. amazon will go in through brute force sales and will add a level of transparency i will say to everybody whatever you charge we can beat it think of this the consumer benefits for a man to sleep then as usual amazon by virtue of just reinventing something that we thought was so simple mail order could you get y

strong reports from united health and johnson & johnson. ts from american express and united. facebook's stock hit an all-time-high for buying a polling app tbh, to be honest. >> i did not know. t speaking of rich guys, soros gave 18 billion dollars to husband foundation. it promotes human rights. soros has been heavily involved in philanthropy for years. he donated $30 billion to various causes. >>> google finds itself in an uproar over cupcakes. it shows how many calories you burn if you walk. it converts them into mini cupcakes. 300 calories is almost three mini cupcakes. sounds straightforward. they beintended the feature to spur healthy living and users say it shamed those who didn't walk. they pulled the feature due to the strong feedback. and i knew you would like that. >> come on! does anything not enrage people these days. give me a break. >> cupcakes are a snowflake safe zone. >> you can't do anything more. early continues right now with the latest fallout from the president's remarks to a family of those who lost a soldier. >> the

health care shares of the best-performing stock today, and that is led by united health, the nation's largest health insurer, came out with its earnings. the medical loss ratio is lower than it had anticipated. its medical spending by its customers fill in the third quarter. analysts say it bodes well for the other insurers, although not for things like hospitals. they are a victim of the lower spending. many insurers are going to beat reporting in the next week or so. we are also watching netflix today. for this i want you to take a look at the bloomberg. after-hourst the session into today. after earnings came out last night, shares rose. netflix reported big subscriber growth nearly 4.5 million 850,000 addedad, in the u.s. shares fell today. over the past 12 hours, we are seeing this decline here. the company will spend $18 billion on programming, a third more than in 2017. that is giving investors pause. last but not least, the banks today. we have a next picture. morgan stanley shares gaining as the wealth management unit outperforms. goldman sachs, even know it performed well on

buy some united health that made a opportunity of money democrats want to subsidize the health insurancers it's a win-win for everybody except for you my real point here is that obamacare was the single most transformative piece of legislation and some didn't have the agate impact which brings me back to tax reform, i think it's a good idea if it passes it won't be revolutionary. let's tell the truth, as things stand now it's not going to pass the democrat feud is to give away to the wealthy. some truth to that some see it as a buster, some true truth to that too forget washington and help and focus on self-help, as in the way so many companies are assisting themselves, and you, their shareholders rather than waiting on someone else to get they're busies roaring the banks, i've been adding this grooup is so so strong that every time rates go higher they'll benefit. but just ner vana for the financials just last week i pounded the table on the citigroup last week i told you morgan was great as was goldman sachs we'll interview the cfo of ibm here's another one after the market has given up

our health care is largely through united healthcare, our pbm is a cvs company >> they are a terrific company i think they have done some very smart years in the past 7, 8 years. they bought omnicare, us care mark. so i think they expanded their business in a way that makes a lot of sense >> the minute clinics they have done a good job with, too. so richard, if you are an aetna policyholder, you're watching cnbc going what does this mean for me, do you think what this will do is create a captive audience in a way where if you are an aetna customer that you will have to go to cvs, you won't have an ability to go to anybody else they couldn't do that. >> they can't do that. >> but there will be huge incentives to create that captive because they want to o customer relationship to the extent possible and get as much out of that relationship as they can. but i think another point that i don't think has been brought up too much to this point is that as the obamacare exchange business diminishes, there will be more of a need for skinnier products particularly in the individual market, skinn

that united health has had.on and concern that i have is for cvs they only have about $2.5 billion in cash where, they have a tremendous amount of debt. they have about $26 billion in debt you're really levering up on this, and now you're into a business where you are assuming health insurance risk. that's completely different than the business they've been in >> but you're taking on an insurer that already knows how to do that, and the idea now in health care where you are seeing all these partnerships that are vertically integrated so you have hospitals doing joint ventures with insurers the reason you want that pbm is you want to be able to have that continue up of care. you want to be able to have value all the way tloo >> mark is a really smart guy. aetna's ceo. the question is this something that he would be -- where you could -- >> i wouldn't imagine that he would leave. he would have to be an integral part of this, and he is someone who has been angling at the transformation with the huma deal not going

i'm telling people about united health frank in michigan. >> caller: hi jim good to talk to you againfter you've made positive comments about bx i started a small position in it did some research on it, slowly its gone downhill, i like the dividend yield, my question is am i missing something -- >> black stone's down $32.39 i think that's pretty good you're doing great i'm a buyer of balack stone phil in michigan phil. >> caller: hey jim, here's a michigan halloween booyah to you. >> what's up >> caller: i've had this stock for almost a year it's been laying in a -- for months. do we bury it or resuscitate ollie's. >> ollie's fantastic it's one of two retailers that i actually like. i'm a buyer of ollie's not a seller and that ladies and gentlemen the conclusion of the "lightning round. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of ea

, tech and health drive the week's earnings reports with names like goldman sachs, netflix and united health. other companies include united continental, verizon and general electric. finally investors look back on one of the worst stock market crashes in u.s. history. thursday is the 30th anniversary of black monday. when the dow industrials fell over 22% in a single day, more than 5,000 points at today's level. i'm morgan brennan. get all your business on cnbc. >>> beginning with that look at our first alert radar and satellite, an interesting picture. pretty clear. we have clouds and fog this morning. when you look at the satellite view it's harder to see the lowest level clouds so it's not showing off as well as would like. mostly cloudy and scattered fog is currently in place. leading to misting this morning when it's a fine rain so when you're driving thatter collects on the windshield and helps turn on the wipers though it's not actually raining. you're driving right through the water. the good news is that will start to weaken. look at the temperatures now. already on the warmer side

on the move is united health, leading a rally in the health insurance industry, some smaller ones havingigger gains since molina. health saying their ratio came in lower than estimated, essentially medical spending by customers fell in the third quarter so that is giving it and others a boost. health care is the best performing group today and we are watching johnson & johnson go higher after its earnings and drug saying that performing well. -- drug segment performing well. so shares are up 3.5%. as you have been talking about nafta, you have to look at the currency market reaction to that. there was a report earlier today that canada and mexico were rejecting stimulus proposals. we saw that dollar take a leg up but now it is lower versus the peso. as for the canadian dollar, it has been similar, although the dollar, while paring gains, is still higher by about .25%. david: thank you. coming up, leonard lance of new jersey will be here. why he thinks it would be best to go through a normal appropriations process. sorry. sherry: [laughter] also, president trump and alexis tsipras are set

weak dollar. 24 hours ago i would have told you of all the dow stocks to buy it would have been united health that's the best one to buy ahead of earnings. president trump decided to eliminate some of the the obamacare substances which will likely to cause a big jump in premiums the situation got murky so i'd rather wait until we get some more information before i recommend this great american stock, and send to bullpen i got to wait and see for more information after the close, we hear from ibm. i can tell you this company needs to fix its declining revenues before institutions will come back into the stock. ibm is pretty much prep people for another decline this quarter. i think management believes if they deliver another decline the stock could rally as long as they show nice growth in margins and revenues i have to disagree, i think ibm is mistaken if it believes wall street won't base a rev few growth quarter after quarter even if they've told us it will happen while we're on the subject of revenue growth, a company called lam research you probably seen that i have to pro mote a stock th

banks, tech, and health drive the week's earnings reports with names like goldman sachs and united health. other companies to watch include united continental, verizon and general electric. finally investors look back on one of the worst stock market crashes in u.s. history. thursday is the 30th anniversary of black monday when the dow industrials fell over 22% in a single day. that would be more than 5,000 points at today's level. i'm morgan brennan. get all your business news on cnbc. >>> starting out with a live camera view in wilmington, delaware. looking over the stadium, it's cloudy, there's some fog in place. it's just not a pretty morning but the good news is it will be a pret afternoon. we have to get there first. our radar and satellite view. clouds are in place and then patchy fog. some misting this morning and even isolated trying to fall right near the jersey shore. really we are not talking rain for today. what we're talking is drying out our area. temperatures currently in our philadelphia neighborhoods. check these numbers out. 67 the average high this time of year. some o

today it was united health and johnson & johnson that pushed the dow over the 23,000 round number figure of the stocks responsible for driving the index higher from the 22, , boeing, caterpillar, and 3m. interesting things happening in the market, the dollar-yen, a little bit of risk sentiment, 1 112 .31. the john taylor news was good for a few basis points curve flattening. down.oil we are getting some iran headlines and that is helping the price in the last little 51.35. i want to point to the mexican peso as one of the two currencies that are top of mind with nafta fourth ground negotiation's -- fourth round negotiations. the ftse is still above the 19, weaker versus the u.s. dollar. mark: the global growth has broadened. investors may not see a big effect on equities. the central bank has moved toward shrinking its balance sheet. let's bring in john roe. i did ask you in the break, what would be your biggest worry? he said multi-asset funds accelerating inflation, a very simple chart showing you the imf world cpi, the blue line, the average is the yellow line, and the surprise index

driving things this week is stocks driven higher by strong results from united health care, johnson &ress and united. facebook's stock hit an all-time-high for buying a polling app tbh, to be honest. >> you learn something new every day. >> soros giving away his money. soros gave 18 billion dollars to husband foundation. it promotes human rights. soros has been heavily involved in philanthropy for decades. he donated $30 billion to various causes. >>> google finds itself in an uproar over cupcakes. google maps removing a new edition of calorie counter. it shows how many calories you burn if you walk. it converts them into mini cupcakes. 300 calories is almost three mini cupcakes. they intended the feature to promote healthy living. users say it triggered those with eating disorders or shamed people who didn't walk. a google spokeswoman told cnn it pulled the feature due to the strong feedback. what do you think? people are too sensitive? >> i think it's ridiculous. relax, people. i don't think it was extraordinarily effective. >> it would be cool whatever your vice is. mine is hamburg

we see other stocks spiking higher, including humana, cigna, united health.llish activity for insurance companies the could benefit if the subsidies do end. so many different pieces to this. speaker paul ryan says he does not support this bipartisan deal. shery: we'll continue discussing that. abigail doolittle, thank you. inid: erik wasson washington, d.c. can get us up-to-date on the messages when it comes to health care and health care reform. get us up to speed, if you could. the president said one thing yesterday and the message began erodenge any road -- and over the course of the evening. what's the status of this bipartisan deal between the thunder credit -- the democratic senator and public and senator, lamar alexander? erik: trying to figure what he means when he says he won't support a deal that will enrich insurance entities. lamar alexander says the deal does not enrich them, it ensures the beneficiaries, poor beneficiaries of health insurance will in fact be benefiting and not insurance companies. he's open to changes and asking the administrati

i condition buy up 10, that's not me my discipline's to say i missed that i can argue that united health department, is down better today was down a bit from it's all-time high, that's okay you buy little knowing tomorrow's going to raise estimates on the whole group >>> next stock, i told you if you wanted a semiconductor stop that let's you sleep at night, not amd, pick up texas instruments because it reports consistent numbers sure enough it delivered a good quarter last night lots of growth and i buy a little of it, especially since the stock ended up down a buck today one point was down around 2 bucks. amd had this nasty impact on all the semis. texas mipicks up >>> ibm now giving back its entire gain from when it inflected. it gave you the last quarter or so of good ones and started in the fourth quarter 4% gain. gift >>> caterpillar and santanley ad decker, let's say i like one of those, more on that in the show. there's no need to do more of that all we know it'll be -- this is 2010 what goes on in my head, aside from the migraine that i have you don't want to buy all at once but

they negotiated a great deal for themselves but a horrible deal for the united states. health care, as you know, is moving along. i knocked out csr's. that was a subsidy to the insurance companies. that was a gift. take a look at their stocks. take a look at where their stocks were when obamacare approved and you will see numbers if you invested in those stocks, you will be extremely happy. given them a total gift. they have given them, you could almost call it a payoff. it's a disgrace. that money goes to the insurance companies. we want to take care of poor people. we want to take care of people that need help with health care. that's what i'm there to do. i am never going to get campaign can traditions from the insurance companies but if you take a look at the democrats, take a look at how much money has been spent by the democrats and the health companies and by politicians generally but take a look at the coffers of the democrats. csr payments have actually brought republicans and democrats together. we got emergency calls from the democrats. probably, the republicans wer

united health and johnson an johnson all reported earnings today and companies straight to 23 and rightse open. >> wait and see on that. if we're thinking a little awkward lunch but let's call it workinging power lunch and main we see fax reform out of president meeting and mitch mc con sglel let's call it bromance. yesterday they looked like bpfs. this is what is it inter interesting. mitch mc counsel transporttive of gop establishment which is exactly what steve bannon surprise fighting. right? and it seems like the president aligns himself more with bannon even though he no lo yesterday during this working lunch press conference the president and senate majority leader said yeah all is great. we have the same mission. we have the same agenda and topping that agenda is tax reform. when tax reform gets done we don't know. but it is going to seem like leeway. goal this year is president said and seems like the markets don't care and we haven't seen a tax cut. >> and imagine when we do get. it okay. >> let's talk about maybe all these protests and we've seen them grow any given sunday and