California launching an investigation into facebooks practices. And the ceo from ring joins us to talk about the state of his company and the new investment he is making in meat yes, eat it is thursday, november 7 Worldwide Exchange begins right now. Good morning, good afternoon, good evening thank you for joining us on a very busy thursday wait until you hear the business lineup we have record highs yesterday again. After new comments this morning from Chinas Commerce Ministry a spokesperson saying both sides have agreed to cancel some existing tariffs and are inching closer to the phase one trade agreement. Dow futures up 139 asia as well the market we have been talking about for weeks. That is japan. The nikkei up. And japan quietly caught on fire Chinese Markets also higher. Green on the screen. Pretty much a trend. All green, asia green. Our futures are green as well. Why dont we start there joining us now, gina sanchez, ceo. Great to have you on like a day like today we have seen already high valuations in some names go up again. Do you believe certain parts of the market, maybe Big Technology may be getting a little overheated there is definitely parts of the market overheated. Technology is full of a lot of different stories. The overheated part is the software end you look at Something Like sales force trailing 200 times earnings still very positive analysts you go to the other side youve got apple apple is trading hardly overvalued. I would say that is the two ends of the spectrum you have to deal with today could actually benefit what i call the middle of the road, which is the semiconductors theyve gotten beat up by this trade war really more through their multiples than anything. Theyve been at the front end of a lot of these trade talks why not, youve got to have something. I bring up big tech. Every day now, we are talking about some sort of investigation. Privacy concerns we have top executives the thief legal officer at google there is it time to say ive made my money, im going to take my money and run. Yes since about may, weve seen a rotation into value. A lot of folks are thinking, if we get a trade deal, we should be able to rotate into growth. We are also slowing down into an economy. You may be able to get some heat off the trade deal from the markets. I think the markets could stay pretty defensive that leaves parts of tech really high and dry the middle of the road trade, you mention semiconductors specifically is it fair to say, nothing is wildly undervalued maybe oil. Is there anything else you can say this is tolerable and worth our money . That is what is crazy everything is middle of the road the value stocks have gotten a lot of play. Best performers have been Companies Like apple, applied materials. Even the unloved segment of these various sectors are still getting some price power in the defensiveness that a lot of investors are really starting to face you are mentioning that big rotation and others have talked about. Do you think that rotation is here to stay i do. The value rotation still has legs even if we do get a china deal and a pop from the short term of the market im fairly certain we are headed into a slow down we are not expecting a recession. We are expecting a slow down that will probably not hit out until the middle of next year. That is a long way to go from here we have analysts expecting not just this as a negative quarter for earnings but a second in q 4. That is actually a while before we start to get positive numbers both from earnings and the economy. I think that value defensive rotation is going to have a lot to feed even if we have a trade deal the little red sticky said stocks on pace for the first year since 2013. Gina sanchez first of our live guests from los angeles. Thank you. Thank you the story around Google Alphabet investigating how the Company Handled claims of misconduct including by top executives at the firm alphabet formed a committee to look into the issues and hired a law firm to help with the investigation. The move came after several share holder groups sued the company in january alleging the board breached their responsibilities by covering up claims against two former top executives including andy rubin who was let go and paid a 90 million severance package after reports claim they found Sexual Assault charge against him were credible that sparked an employee walk out. David drummond who was accused of having a relationship with employees including one who said they had a child together while he was still married drummond made 47 million last year drummond is a former board member of uber he led Capital Investment into uber and one of the key players when they were having all of their Sexual Harassment issues interesting i think this is anni issue goog faced in the past. 48 employees have been fired in the previous two years over claims of Sexual Harassment. A developing story google not the only Big Technology stock with trouble today. The other two names, twitter the Justice Department has charged two former employees for spying for saudi arabia. Using the platform and gave that information to saudi officials one of the men charged is an associate to the crown prince. Twitter down 2 right now. Facebook, california investigating the company over its privacy practice accusing facebook to adequately comply with its request. Data from 87 million users may have been improperly shared with cambridge analytica. That stock up. 75 on the news two of the faang stocks in focus for all the wrong reasons. It is a busy thursday. When we come back, call this a race to the bottom the bank of epg langland to rel the latest call. Plus, not all good news for stocks lots of winners. Ahead, well get nasty and show you the worst stocks in all the major indices. Why not. Todays big number, 75 . That is how many s p 500 companies have topped expectations this year that my friends, 10 better than the longterm average of 65 well be back right after this did you know that feeling sluggish or weighed down could be signs that your digestive system isnt working at its best . Taking metamucil every day can help. Metamucil supports your daily Digestive Health using a special plantbased fiber called psyllium. Psyllium works by forming a gel in your digestive system to trap and remove the waste that weighs you down. Metamucils gelling action also helps to lower cholesterol and slows sugar absorption to promote healthy blood sugar levels. So, start feeling lighter and more energetic by taking metamucil every day. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Are those bottom numbers correct . Oh, hi welcome back the markets are on record highs. A lot of big stocks hitting alltime highs lets get nasty. We have pulled out the dogs of the market the worst four in each of the four indices why not . It is getting cold and dark outside. I was on camera and didnt know it the average gain of the index is 22 . Macys grabs the title of the worse this year down 46 the average stock up 27 mylan labs is down 37 so far in 2019 in the midcap 400, green dot in the red. Down a staggering 63 . The average stock in the midcap 400 is actually up 20 this year we saved the best or the worst for last in the small cap 600, unit corp, an oil and gas company. What else . Down 86 in 2019 versus the average gain of a stock of 16 macys, mylan, green dot and unicorp. That would be the worst four stocks this year bank of england well go to willem lets call this the global limbo of interest rates. Just like the weather here, the data has deteriorated in the uk pmi there is repeated there appearing sub 50 economists are looking fordo downgrades lets call them dovish dissenters there is a new level of uncertainty for the british economy. A new government could bring a new plan one other point worth noting, it is almost if not quite the last appearance for governor mark karny. His replacement will not be named until after the election so possibly late december, more likely early january so willem, weve got that weve got brexit outstanding is there anybody out there you talk to that says we are going to go the other way . The uk slow down is not just due to global uncertainty. That has meant weve seen a huge amount of investment that is something you hear again and again and again. People shorting the pound, weve seen that bump up a little bit wait to see whether mark karny has anything positive to say as well somebody has to have the contrarian trade out there and if you do, you will be the man to bring it us on deck, why qualcomm is getting a nice pop this morning on earnings and hear what the ceo has to say about the potential of 5g. And the ceo of ring joining us live to talk about his investment in a startup for meat well meet the founder of that startup. Cool stuff to come we are back after this memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. When you look at the world, what do you see . Where others see chaos, we see patterns. Connections. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. Dont get mad. Get e trade, dawg. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Good morning. This might add a Little Spring to your step dow futures up 135 points. Getting a bump from trade headlines out of china saying dc and beijing have agreed in principal to cancel some existing tariffs and are getting closer to what they cause call that phase one trade agreements markets coming in at record highs. We could see new record highs if those stick. The big stock stories of the day. Number one, toyota the automaker sticking to earnings out look for the year toyota announced plans for nearly 2 billion buy back the nikkei 25 in japan is up 11 in 90 days toyota is going places qualcomm reporting better than expected results helped by renewed licensing deal with wiapple. Predicting 200 million smartphones will be sold next year the potential impact for that faster Wireless Technology i think the general trend of people using more 5g versus less is there certainly at the price points that people tend to talk about in terms of being the market moving price points. There is a lot ofreasons that is true. In the developed world from china through to the united states, the intensity in getting 5g out the door is very high you can see more of that interview later at 11 00 a. M he is a Virginia Tech hokie. And shares of roku growing. It spent more money to attract subscribers. Stocks down 12. 5 . Investors have done well roku still the first or second best selling ipo of the year also on the watch list of the year is disney reporting earnings after the bell today another record high before pulling back to where it is now at 132. 50. Taking a hit in the previous quarter. The new fox acquisition and lower theme park attendance. They may have rebounded this quarter because the new star wars has opened at disneyworld the streaming Service Disney plus launches next week, so the company can also say how many have signed up for that platform in advance on deck, the dremocrats look to take the impeachment proceedings live to the general public what investors need to know about what is happening in the capital as we connectd. C. To wall street when we come back. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Are all nongmo, sundown vitamins made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean all the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. The House Democrats impeachment inquiry to President Trump is set to continue as depositions and plans to bring the proceedings to televisions next week. Well go to tracie potts in d. C. Good morning. Before that gets started, there is more private temperature happening here on capitol hill an aid to Vice President pence testifies today. Lawmakers want to know what he knew that testimony happens today behind closed doors before the first public hearing set for next week. Acting Ukraine Ambassador bill taylor is first up with hearings start wednesday. They are going to get somebody who ties it all together a transcript from private temperature was just released. He told lawmakers there was a clear understanding that President Trump wanted the bidens investigated before releasing aid. Republicans argue, there is nothing wrong with that. Ive got 400 million of american taxpayer money here before i give it to a government that has a history of corruption, i want a possible investigation. Also testifying publicly next week, state Department Ambassador george kent those will be an opportunity for the American People to evaluate the witnesses themselves the testimony today is getting easier to defend the president. One person we are not expected to hear from, the whistleblower. Trump said this or that then when they heard my real phone call, the whistleblower disappeared. Governor rand paul wants that person outed the whistleblowers identity is protected by law we are continuing to watch what is happening here the Justice Department trying to distance themselves from all of this reporting the attorney general was asked and refused to hold a News Conference saying President Trump didnt break any laws or did anything wrong President Trump says that never happened never a dull day. We are glad you are there for us lets check on this mornings other big stories. Including the latest on the man hunt in mexico more on that with phillip mena search for potential suspects after that deadly ambush that killed nine members of the same family the nooechrtheast is preparig for the first winterlike storm. The midwest experiencing temperatures well below freezing the storm creating dangerous Road Conditions in wisconsin a 38yearold man was killed when his car slid into a truck a new consumer and Retail Holiday started at midnight. Called cash back day some offering cash back. Head to retail me not or search for deals you are interested in. Id like to have a little cash back. Thank you, cash out. On deck, when does a negative equal a positive when the removal of tariffs creates stocks going up. As the streaming wars heat up, netflix ceo doesnt break a sweat. More coming up next. Whether your beauty routine is 3 steps. Or 57, make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Woman what gives me confidence about Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Fewer tariffs, more money stocks set to surge as as they slash more who is there ceo from ring will join us live with his latest investment in meat and return of a Legend Technology is giving james dean a new movie. Sort of. More coming here on cnbc good morning. Happy thursday thank you for being with us. New this morning stocks could hit new records again. Futures are up higher right now. A spokesperson for commerce saying both beijing and d. C. Have agreed to cancel some tariffs and are getting closer to a phase one deal. The stock market already seeing momentum futur futures nicely in the green. Similar story in asia and europe we have been talking about this on wex for weeks the in japan, up 11 in just 90 days european markets in the green as well trade is not just a story in china. It is a global story all t all the major market averages up as well. What is driving stocks higher . That is trade, positive comments out of china and the possibility of canceled tariffs. Eunice yoon joining us now from beijing. Are you hearing the same kind of positive chatter there yes absolutely china says the two sides have agreed in principal to roll back existing tariffs in phases saying this is being discussed over the past two weeks and stressed the face one agreement have to go the spokesperson said they want the tariffs to be lifted at the same time by the same amount the amount still can be negotiated the time and place of a deal signing has yet to be decided. After the Commerce Ministry remarks, the state media became laser focused on the point if there is no tariff removal, there will be no phase one trade deal this has been one of the core demands. Also emphasizing they need to be lifted simultaneously. That will be an indication to the chinese that china and the u. S. Are considered equals to make things easier for Trump Administration meet demands, trump sentenced nine people to jail for smuggling fentanyl into the united states. Authorities said this is the first time when the Narcotics Division is working in collaboration with the u. S there has been talk that making this a political decision could help President Trump market back to his base. A school of thought we dont talk about a lot some of these chemicily enhanced drugs. These are big Players Behind the scenes in these trade negotiations, are they not they are. The authorities here in the Narcotics Division understand that this is a very important point for President Trump. President trump had asked president xi jinping if he could help on this opioid issue because from the u. S. s perspective, they believe a vast majority of fentanyl has come from here. They continue to say that they are not to blame and that it is a u. S. Problem the decision on fentanyl was made in accordance with President Trump and president xis agreement a lot of deaths around the opioids. This is a big story. Thank you so much. In corporate news, expedia shares drop. Trip advisor shares dropping as well latest earnings fell short announcing a joint venture with trip. Com not helping one more to add this morning, this one a small cap name and getting smaller. Fossil the retailer posted a big miss expected to drop between 5 to 10 . Down 27. 5 to under 10 a share. This is a 20 stock one year ago. It has been more than a year now since all those smart shocks on shark tank and turned down ring. Amazon came in and bought them now hes rich and hes trying to help others get there as well. With us live, cofounder of probably the best name ive ever heard moink, a meat delivery service. Jamie, all this talk about fake meat, impossible foods why are you making a bet on real meat when i make bets, i look at the mission of what im doing. With ring, it was about making neighborhoods safer. When i met lucinda on shark tank, her mission was about helping the farmers. Weve proven out that is what we are doing. Is it offensive if i call you the stitch fix of meat no. As long as you say oink, oink. Im just so happy i got moinked. Ill never live that down you are an eighth generation farmer you mix and match what you get every month. How does it work we offer grass fed and grass finished beef and lamb, pasture raised chicken and fresh caught Atlantic Salmon delivered fresh to your door what makes you more confident you are not going to get caught up in the mix and noise of these Subscription Services . We are hyper focused on our mission. Our mission is to save the family farm. When you get up every day and work towards that goal, you can be confident we are putting a high quality product on the consumers table there are many reasons consumers start ordering, the reason they stay is because it tastes better youve been on both sides you tried to get investments the sharks rejected you. You did well now you are wealthy and trying to with help out lucinda a lot of our viewers are saying what do i need to do when you are looking to vest in a company or a founder, what are you looking for . I have seen in myself, having a mission does a lot of Different Things it makes your team more excited and brings customers in to help you. For me, it all comes down to the mission. And are you doing Something Better for the world with ring, it was about making the world safer. With moink, it is about helping the american farmer. You can do good both for the world and for yourself, everyone wins you also got to make money, jamie. Ive always said and this is with ring, i said it from the beginning with my team and still say it today if we make a neighborhood safer, a customer will reward us with that purchase. When you build business, you want to be rewarded with the customer even an amazon thing they talk about working from the customer backwards you focus on the need. Theyll reward you it is a great way to look at a long term Sustainable Business model. Once you get successful, and i hope you are everybody will start to try to rip you off. How do you grow but also fend off competition . Once youve established yourself, everybody is hey, lets copy that . You stick to what you do well you put your head down and do what is right. Youll become known as the person as doing it right, that has the quality, consistent quality every time consumers see right through things as long as you are sticking to your mission and doing what you know is right. Thats how you suck said in my opinion. Good advice jamie, stocks are at record highs. You are rich now do you vest in the stock market . I have an Investment Strategy which is what i stay focused on ring right now and on moink and i want to make sure i dont lose some of this money ive made that i have set aside for my family. I still go to work every day working for my customers, inventing and driving that Mission Forward and trying to make the world a little better and neighborhoods safer and also with meat. Higher quality meat and saving farmers. I like it you are integrated because we are going to order some good meat its going to be on our porch. We want to make sure nobody steels it so we use the ring to make sure nobody runs off with our steaks thank you why this a loudy little Cardboard Box may lsthe future of television. Atea hbo hopes it is that story ahead to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Did you know that feeling sluggish or weighed down could be signs that your digestive system isnt working at its best . Taking metamucil every day can help. Metamucil supports your daily Digestive Health using a special plantbased fiber called psyllium. Psyllium works by forming a gel in your digestive system to trap and remove the waste that weighs you down. Metamucils gelling action also helps to lower cholesterol and slows sugar absorption to promote healthy blood sugar levels. So, start feeling lighter and more energetic by taking metamucil every day. Every year, our analysts visit thousands of companies, in a multitude of countries, where we get to know the people that drive a companys growth and gain new perspectives. Thats why we go beyond the numbers. T. Rowe price. Invest with confidence. Thats why we go beyond the numbers. Are all nongmo, sundown vitamins made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean all the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Cardboard boxes disguises as televisions and james dean back from the dead, sort of Frank Holland is here. I was waiting for the two shot i love this two shot people with roommates will appreciate this one. Hbo wants to make it easier to watch your favorite shows privately. The hbo box. A big box with air holes and cut outs to stick their legs through so users can get privacy no matter who is in the room and throwing that box over them. Here is the catch, you can only enter the competition if you have a college or university email. Most college kids would do better with a card board tube than a box you are only able to watch hbo. You can do whatever you want in there whatever you want i dont get it either moving on. Talk about gone but not forgotten. James dean landed a new movie role six decades after passing away cast the second lead in finding jack two visual effects companies are working on creating a realistic version of dean using cgi. Another actor will voice him they decided that james dean was the only one that could fill this role. Think about the implications of this. Remember they did the tupac halogram at coachella a couple of years ago doesnt bode well for hollywood stars. He doesnt have an Instagram Account to promote the movie would you watch it in the box . I dont know. Think about it google looking to make changes on policies about political advertisements conversations it is vihang on that important matter. We are back after this memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Time now for your executive recap. Netflix ceo shrugging off concerns about subscriber accounts playing down the importance of the numbers. People subscribe to a couple of serves the way they subscribe to a couple of News Services in terms of time, thats the competition. The tricky thing is apple, disney is not going to break out revenue. Youll hear subscriber numbers but you can bundle things in the real measurement will be time how do consumers vote . With their evenings. Starting in q 1, well start to see a break out from neilson and others google is considering a change on its policy on political ads. The reported conversations come after twitter and facebook unveiled opposing stances on the issue. The Justice Department has charged two former twitter employees for spying for saudi arabia giving that personal information to saudi officials one of them charged is an associate of the Saudi Crown Prince getting back to these macromarkets already at record highs. Well welcome our friend david nelson who says crippicly in an email last night, the worm has turned what is the worm growth to value youve seen it play out the last couple of months now growth has been the hands down winner the last decade people forget before the financial crisis that value was the place to be. You started to see it play out in particular, you started to see it play out in financials. Financials are year to date out performing the s p 500 a lot of that is on the heels of what the fed did you are steepenning the curve. That inverted yield curve had it wrong it appears to be. It is good news for banks and names like jp morgan when people do something and they are successful at it, they want to keep doing the same thing. It is going to be hard for people to say, ive loved you for a long time big tech stock, now ive got to leave you. That has to be a hard thing for the people to do if all you have is the faang names, they are disappointing. Maybe laying their benchmark, this is a place to get some of that return back jp morgan, 3 yield just for waiting. Morgan stanley paidunder 10 times. With markets at all time highs, by definition their revenue has to go higher there is a race to the bottom in fees. I know there is now commissionless trading squaub and td are going to make a lot of money off that in the end, the consume is going to pay for it. You say financials, talking Asset Managers do you like the big banks . Not just jp morgan thats a safe trade it trades as a premium a new name for us is bank of new york estimates of up 10 . Those are names that have some legs right now under 10 times earnings in a market that is relatively expensive. This is a good place to catch up are you this trade talk optimism guy no. No weve been here before weve been here about two years. Every month, there is like a positive headline. It does feel like it is maybe more real because it is coming out of the china side. It is kind of a politic cant punt both sides needed this President Trump understands that where this market is, where this economy is a year from now could make or break him. The only question that really matters is one simple one. If we get the deal, do stocks respond or is it already priced in if this is really meaningful, wed be up six or seven points we are not touching any of the issues the other things we have been talking about. That is 2021 not going to happen any time before the election. I think americans are kboing to understand that china will be an adverse arie. This is not going to change by signing piece of paper the worm is starting to turn david thank you. Real pleasure. Today, it is all about a company we almost never talk about. Coty an american Beauty Company not many people talk about it but one man did on this network. Do you remember big time investor bill miller who vested in this company in january he told us on january 31, live on cnbc, hey, im buying coty. If you had followed his advice guess what, youve only made 67 . People like to talk about active management they like to knock it. Sometimes the smart people who have made it very well for a very long time get it right. Bill miller nailed it on coty. Random but profitable. Thats it for Worldwide Exchange. Im off tomorrow squawk box now. Good morning. U. S. And china have agreed to cancel tariffs in faces. Masa son says it will make no rescues. Soft bank stock falling overnight. Bill gates speaking out about the warren tax plan. It is thursday, november 7, 2019 squawk box begins right now. Good morning. Welcome to squawk box here im andrew ross scorkin. Is this your first time here on the new set. It is thrilling one minute into the show, it is thrilling call her in three hours. I assume she meant that she meant that seriously. U. S. And china have agreed to phase out the tariffs imposed on the trade war. Getting stra
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