Transcripts For CNBC Squawk Box 20240713

He wants to work out a trade pact with the United States and has been trying to avoid a trade war but he also warned china is not afraid to retaliate when necessary. Eunice yoon joins us putting in his comments du jour. There is always something for those who think it is going to happen and then a qualifier. What do you think . That is right it is interesting that president xi jinping weighed in. This is the first time weve heard those remarks. Unfortunately, the content were not anything different from the standard government line about the trade discussions. He was speaking with a group of International Visitors including henry kissinger. His point was that china does want to have a phase one trade deal however there does need to be an understanding that u. S. And china are seen as equals and it has to be done with mutual respect. Thats what we had heard repeatedly what was also interesting was how he hinted at some of the tensions saying when it comes to the financial opening, china still wants to have a financial what he called financial sovereignty. That is raising a lot of eyebrows here that it is just another reminder that even though china is opening up, it still wants to make sure the state has a lot of control the stock market wasnt particularly encouraged by his remarks dropping to a threemonth low. U. S. Naval vessels went to the south china sea. There are a lot of concerns about whether President Trump will end up turning the hong kong human rights bill into law. This weekend, well have another interesting referendum on the Pro Democracy Movement the city is Holding District elections. These are normally not particularly interesting they focus on very mundane issues this year, it looks like it will be very different. Almost 4 Million People have registered to vote in this election it is going to be seen as like a gauge of public sentiment towards these protests there are some concerns that beijing and the authorities in hong kong could end up suspending the elections if they see more violence. There is a bit of a hint of concern because the Hong Kong Media in the past hour or so have started reporting that the Hong Kong High Court has reinstated a face mask ban for the next seven days which would mean that it would be harder for protesters to hide their identity if they were to go out and protest around some of these election and polling booths. But the security is very, very tight. There is a concern that there could be more violence a lot of people who watch this closely are also worried if these elections are suspended that it would enflame the public anger towards beijing. I feel some empathy for president xi if i were to examine my feelings closely when i hear him talk about these nebulous, we need to be respected and both countries need to it sounds like gobblygook if you listen to some of the real hawks over here whether senator rick skcott or marco rubio, there are just some things china wont do. It seems like they tease us and we get close and then he comes out with these nebulous, none discrypt ways of stalling. More ways about what United States is asking china to do it is annoying me now. Now i think it is annoying actually, joe, you are right about the blacked out part what i think is interesting. Kind of difficult is i hear what you are saying i feel like i have conversations with academics here. Some of them are hard lined. Its as if im on a totally different planet i have heard over and over that the chinese feel that the u. S. Has to make the next move. The chinese have compromised a lot. From the chinese perspective they said look at the opening. Today, there was a negatives list put out theyve already started purchasing some agriculture al products you can argue it is not the 50 billion they are saying we are buying all of this stuff, this is not a balanced relationship. We are living in different worlds i think President Trumps perspective is that it is already an unbalanced relationship that has been benefitting the chinese for a long time as they were saying they were a developing nation and obviously now they are the second largest economy i mean, thats the argument you hear in the u. S. Repeatedly, i have heard from many people here some of them either in the government or close to the government or just privately that china is the one making a lot of the sacrifices. Thats why there has been such a big push to get the tariff roll back the u. S. Started this. They started it with all these tariffs. The only way they could start this is by having a roll back from tariffs there are a lot of people that say the partial roll back is okay we dont expect that the u. S. Is going to lift everything even though weve been asking for all of those to be lifted. There is a very strong feeling here that the u. S. Is the one that has to make some type of move on the roll back. From chinas perspective, theyll feel like the trade deal is much more equal unfortunately that is kind of a perception that china doesnt always speak totally forthrightly about things thats saying it a nice way. Weve got President Trump over here who you would say, you can tell when hes lying because his lips are moving. I didnt say that but you were saying there used to be say thing when you would cough and say that bad word. When you were talking, i thought about doing that but i thought it would be unprofessional you are right i thought about it. You just did it i thought about doing it but it shouldnt be something. You made your point effectively. Same point. Thank you eunice. Meanwhile, we have some stocks to watch. Wild week for retail shares of nordstroms rising. Raised its earnings forecast for the full year. Looking at that stock up close to 8 . Williams sonoma said sales fell dropping 2 versus the 1 expected earnings were in line with estimates. It is really a tail really an operations situation more than an economic or trend story we are watching shares of the gap. Worse than analysts expected the company says it is committed to a plan to spin off old navy and continues to search for a new ceo. More on the wild week for retail coming up at the bottom of the hour well talk to the retail guru to try and make sense of all of this coming up, the video we cant stop watching. The tesla pickup truck unveil that went horribly wrong those windows are supposed to be unbreakable. We have more next. 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. I can shine. Imma do what im made to do. Built for excellence. You start from the foundation up. The excellence is reaching dreams and chasing them at the same time. The excellence is reaching dreams and hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Elon musk unveiling the new cyber truck. Lets get to phil lebeau he has the specs of the new pick up good morning. Some saying, look, there is a lot of potential but still a lot of questions about exactly how this vehicle would perform if you had a full payload or tow capacity i cant be the only person who saw it come on stage and say, wow, that is way outside the box. They are offering three versions the range depending on duel motor or trimotor ranges from 250 up to 500 miles fully charged. Here is elon musk on what they were thinking when they designed the truck. Trucks have been the same for a very long time like 100 years we wanted to try something different. Boy, did they they also tried a demonstration of the glass you saw the first time they through a weighted ball at the glass. Watch what happens when they try to do it again he asked him should i try to do it again. He said sure, try it on the passenger vehicle. It broke both times. Definitely a failure there in terms of how the vehicle would do if they build this and production is supposed to start by late 2021, starting at 39,900 for the base model and goes up to 59,000 for the tri motor version. Production expected to start in late 2021. Ive heard everything from, this is a weird design. Other analysts who are saying, you know what, it is a radical design we think it is going to resonate with buyers. That will be the hot debate. What do people think of the cyber truck. Is it a niche vehicle or is it going to be a threat to the broader pickup truck industry, which some people do think it will be. I dont personally thats the debate today. Phil, what qualifies as a truck . It is a flat bed there. There is a bed it opens up. It is a sixfoot bed i want to say they have 3,500 pounds cubic feet. Towing capacity is up to 3,500 it is an interesting looking truck. It does have a bed in the back its unclear they built this little atv they road it up to the flat bed and said, look, you can charge this you cannot deny this is not a futuristic design that is going to get a lot of reaction you cant deny. Im not going to say anything until sorkin says something. Im afraid well agree if i wanted to be in a movie, id buy the truck. Like a movie 100 years from now. It is like a halloween there is something you like and then you realize you dont like it. I dont think you should strive to design the ugliest looking vehicle ever made. Weve done it before would you encourage the sorkin family to get that or a minivan . If you told me you liked that, i was going to say you are in the market for a minivan. How can you possibly like that is. Ill tell you this. My kids like it. Do you remember when people bought hummers so you could say, look at me, im driving a hummer thats the only reason people bought it. Thats what it is phil, nobody thinks that is a neat looking thing i dont know what the hell it is did they look surprised when the windows broke . I think so. Elon looked at it and said, this isnt what we expected how many times is is ththat g to be shown today . That video is going to be shown a gazillion times. I think hes clever enough to not try it i thought you were saying i dont know if they tried it before joe, you cant see in the video. They dropped that Weighted Metal ball they dropped that from about 15, 20 feet down on a sheet of the window and it did no reaction at all. No crack, nothing. They said, see well give you another demonstration here i dont think they expected that i dont know why they didnt try it lets try it in front of all these people with the cameras rolling . Good question we werent invited thats how he does it. They get a lot of viewers on the tesla website and then he goes off stage. Remember whenford did their mach e not with tesla, its a hollywood event. Dan ives is here. What is your take on the truck in terms of the launch, i kind of view it as a disaster in terms of other launch events because of the cracked glass in terms of the truck, its the wow factor, the mad max, blade runner thing is it niche or mass market i think it is niche. To get north of 100 k units i think is tough i dont see it gaining ground against ford or gm the bigger question would be what happened in the third quarter. They did better than anticipated in earnings. They had the profitability. Youve seen the stock react and rebound. Can they continue with that profitability. Right now, that will be difficult given demand in the u. S. Right now, i think this is sort of the next one to two quarters that will determine if this is 250 or 400 stock you are saying hold off and wait and see yes i think it is one where a lot of good news is baked in. Street numbers continue to go above into 2020. When i look at overall demand and model y and some new products, theyve done a phenomenal job in terms of the stock here, i continue to be more yellow light rather than green. What would change your mind you have to see demand continue to beat expectations a demand pick up in the u. S. If they could show sustained profitability, which we are spectacle of is there anything that could happen that would make you go wow . You go okay, youve got 3 million pick ups in the u. S. , if you could get significant share there. Best case 100, 150 k you think it is niche i think it is blade runner and great to pull up to parties. Outside of that, it will be hard to get mass. You look at that f1501. 1 million they are selling a year. Is there a vacuum cleaner you can charge an atv in the back of that you could charge a dust buster thats a big thing for andrew the sorkin family just wants a charged dust buster inside the vehicle at all times so easy to send the staff out when they finish one of the houses to do the car what staff . I dont know, the staff for the city house or the Country House . Are they different they must be we got to go. Coming up when we return the investigation into a brazen crime. Thats next. 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 ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. It is nice. Students ahis haircut is nice. This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go seats. Can your car do this . Man, yall getting a hook up and yall dont even work here. Dont act like im not doing yall a favor. Yall should be singing my praises. Pacificaaaaa with employee pricing, get 4,107 below msrp plus 1,000 bonus cash plus 0 financing for 60 months on the 2020 Pacifica Limited im a regular in my neighborhood. Im a regular at my local coffee shop and my local barber shop. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. Welcome back. Imagine loading up a cart of merchandize and just walking out of the store retail loss is at an alltime high home depots said shrinkage hurt its profits. Looking into how they fight the jo ongoing problem in this investigation, grab and go you are watching brazen retail left. The suspects are so sure, some even get aggressive when stopped. This Surveillance Video shows. Most likely, these people arent shop lifters or stealing for their own use. It is a bigger problem known as organized retail crime with organizers working together for profit it all starts with boosters. Somebody who is basically a professional shop lifter doing it for profit. Are they just guessing what items are in demand or do they know it from history there are many locations out there giving lists to the boosters if they are giving lists, they are part of the crime too one of those here is this pawnshop the manager charged with selling stolen profit. The next stop this raid. Helping when Law Enforcement served a search warrant on this utah home. We can provide them the value of the merchandize the suspect allegedly sold stolen power drills on facebook. He was arrested. Seizing a pallet full of items in the home. They were brought to this warehouse. It may look like home depot but this is actually an Evidence Room inside over 1 million worth of stolen product seized from a raid of seven pawnshops. Well see lowes and home depots price 199 our price 79. How is it some of these second hand merchants are selling at less they found the answer in these sting operations what do you want to do . Sell them . Pawn them . This is undercover video selling items that seem stolen to pawnshops this makes it harder for pawnshops to buy unopened product. Since the new law, it is Getting Better but weve seen the shift to e commerce. The power tools here on sale on facebook. Organized retail crime is growing and nearly 800,000 for every billion in sales home depot said its profit took a hit due to the higher loss of goods. We dont comment on our particular numbers, we are seeing shrinkage rates rise. Scott is in charge of Asset Protection organize retail crime drives other crimes drugs, guns, Human Trafficking i think opioid and drug epidemic is driving it. We have been very good about not raising prices as a result if it gets to a point that we cannot continue doing business, ultimately, well have to pass it along it is not just home depot lowes said yes, this issue has hurt its margins in the most recent quarter as well crazy to think it has picked up in the last three quarters. You think about opioid issue rising, are criminals just getting smarter. They are not going to tell us about all of them because they are trying to detour the theft there are areas of the country where the opioid issue is a bigger problem and you are also seeing the higher rates of these organized crimes and the poor person home depot has there checking my reet for my light bulbs if there is three or four people pushing a shopping cart, they are not in position to karate chop to stop them. What is the poor person that works for home depot to stop them or pretending they are armed. Sometimes not pretending. They have the videos there they are building these cases. Employees are told not to interfere because they are afraid it could become a dangerous situation. For the most part, they are walking out and the employees have to let us do that when we were in that evidence place, there was literally a compressor still screwed to the wood pallet it came in on. And as we head to break, a look at yesterdays s p 500 winners and losers that was wonderful. I loved it. It was great. It wasnt bad. Parts could have been better. I didnt really like it it was bad. It was awful tom steyer wall street banks took advantage of millions of americans during the recession. So, my wife kat and i took action. We started a Nonprofit Community bank with a simple theory give people a fair deal and real economic power. Invest in the community, in businesses owned by women and people of color, in affordable housing. The difference between words and actions matters. Thats a lesson politicians in washington could use right now. Im tom steyer, and i approve this message. Good morning. Welcome back to squawk box. Weve been watching equity futures. The dow futures indicated up by about 29 points. S p up by about four and nasdaq up by about 21 chinas loss in the trade war appears to be vietnams gain u. S. Imports jumped nearly 35 while imports from main land china fell by 13. 4 . Main categories are computers and other machinery. Uber cofounder has now sold close to 1. 5 million of his stake. Another share holder bought more shares on monday later, trump hearing from Share Holders on the issue of vaping regulation. U ay tuned yoare watching squawk on cnbc. Through the at t network, edgetoedge 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. Thats the power of edgetoedge intelligence. 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. Welcome back, ush cofounder has been on a major selling spree since ubers lockup expired selling nearly 1. 5 billion of it and another share holder buying more stock the stock below the ipo price. A little selling. Little bit joining us, bradley tusk, a very early uber investor and craig is here, cofounder of the Disruptor Foundation he teaches a class at Columbia Business School on disruptive businesses they are not the same thing as all you have been very critical of derek management of this company. I think you were a fan of travis the question is, what do you want them to do now . A lot of investors want them to show profits they are not even interested in the growth story the pied piper story this is the same for adam neumann, has the world changed what you are asking for is a little different than what the public investor is asking for. There are two competing trends on one hand, private valuations and public valuations are out of line you have venture funds that keep raising bigger and bigger funds. It is not supportable. On the other hand, from when travis left until today, ubers po worth half of what it was. Is that a function of the person at the company or the fact that pricing is so miss priced three years ago part of the fact that if it is a Company Based on radical innovation, they are not going to reward them with buying the shares you could blame some of this on valuation. They did it to lyft too it doesnt matter about the leader juneau, i just got my discontinuation notice they dont care about the leader anymore the numbers make no sense. You can believe this person will transform and the market does not believe he can what do you make of this . One is valuation. The other is going to be what is the Business Model that gets you to profitability i think particularly in the wework case, was this a Real Estate Company or a technology company. The valuations are different as long as the dream is that it is the technology company, youll get the technology valuation. This has been some kind of massive miss alignment it is impossible to look at it any other way. Lets put it out there the last time i got a price on the bonds, it was 71 you run that through, there is a pretty big disconnect. Somebody said sto me, an activist should show up on the scene with uber. It is the only unicorn out there. I thought, what could an activist do . Are they going to go in there and say run the business for cash in which case the stock goes lower or says no, no. We want you to grow like a weed and we dont care about profits. Im not sure the stock would go up either. I dont know if you saw the bill ackman comments on wework the real question is can softbank turn themselves into a version of an activist inside all of these companies. Issue of governance and duel classes. The real window of last resort is softbank. Are you selling your shares yes all of them much smaller numbers than travis but similar some believe uber is predicated right or wrong on being the amazon of transportation whether you are getting a burrito or a truck or a person from point a to point b, they will own every part of that if you dont see reason of doing it, there is no reason to own the stock. The only way in this particular case is that they have to be able to be on the position again. That vision to get to that vision, you have to run losses in the short term for a long time im not sure this Public Market is ready to do that right now. It is hard to know that for sure when there is both really big losses and no vision most of the early investors in uber you are friends with they are out. They are out . I was thinking of Lance Armstrong the other day. So much of the value of his family at this point was wrapped up in uber back then, he was thinking uber was worth 120 billion i think a lot of viewers arent that sympathetic im sure hes happy you are sympathetic towards him. I may be the last one someone with unperson. Your sense is that early investors. Do you know of any early investors who are saying, it has dropped too much im giving them a year or two. Early investors are in the black. I came in at level a it doesnt really matter most early investors, thats the point. Has anybody emailed or called me and said, you are crazy . Not a single person. We and masa, you have seen the reports about how masa may have to reduce the offer hes already made because the banks in japan which are going to loan him money and saying we are not supposed to tell you what to use the money for but if you are using it for wework, weve got a problem here the question with wework is two things they have an a to b transition well call it the red ink. Well call it the adam neumann pay out. Ill make a comparison travis makes perfect sense to me call it 8090 rational, 10 shakespearean. When you get to wework, you might want to flip it around there is still enough time for softbank they are talking about renegotiating. You think it will happen . Not the way it is right now i think lawsuits will happen. Lawsuits will go on for 10 years. You cant make a deal and then turn around and say im not paying you there is a famous case of texaco and they had to file for money financially to impact the softbank empire. Right. Its certainly enough to shake the confidence you know, at the end of the day, both stories of arrogance and hubris. Bradley and craig, thank you guys. Good to see you. Coming up, were going to talk about whats working in retail because theres a big split. You can see some of the divergent fortunes in this sector just this week. Talk about some of the names worth considering for your portfolio with a well known guest on the show, dana kelce will be here next. Dont forget to subscribe to our podcast. Youll get interviews, original content and behind the scenes access look for us on Apple Podcasts or on your votefari podcast app and subscribe to squawk pod today. To keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Been a wild week for retail earnings for that whole group separating winners from losers take a look at some of the big moves so far this year amazing really crazy. How is that possible there is actually 93 i see a little bit of a pattern there. Joining us now on set, tulsa Advisory Group dana tulsie digital, target, walmart, these are old stories but they seem to be getting worse, dont they what would you do if you were in charge of a Department Store at a mall Department Stores are in a lot of trouble right now they have to figure out how to compete and frankly how to offer consumers things that they want to come in and buy i think one of the things with the Department Stores, how do you reduce the assortment apparel, how do you increase the inflection and youre competing against what you saw before. Walmart and target who value convenience are winning. They have a rough road ahead of them nordstrom numbers were a surprise last night. Think about why. The different innovation techniques they have, whether its locals, whether its their loyalty program. Its not just apparel. Weve got to move just beyond apparel. Is it possible for a company like a mazys or a nordstrom to rip off the band aid how many stores would they have to close when you think about it, nordstrom has 116 stores. Theyre pretty clean. Thats not the problem with nordstrom. Right is it an overall mall problem . Its the cost of doing business thats higher you have to recalibrate your margins. When youre doing Free Shipping in some instances, when youre doing a local program, when youre doing delivery, labor costs are involved and when labor costs are involved, we have to be able to get full price all the time. The difference is, weve spoken with Brian Cornell earlier this week at target. He said hes actually able to bring those costs down when you convince people to pick things up at the store, when you use a secondary service like shippet, you kind of have to do the stores there, too. You need the store base but you have to figure out a smart online. Exactly the combination. Online pickup in store is your most profitable. You can get attachment sales as a result of that when customers shop multiple channels they typically buy two to three times more than the Single Channel how do you make the store exciting how do you basically capture the customer on their phone to get to bring them into the store thats the conundrum that theyre all running into differentiated merchandise, exclusive offerings. Youre having really targeted emails going out to people texting them at the same time. What is all this about its a Service Offering at the same time. Target and walmart, the ability on price and the ability on value and convenience in order to be able to offer that macys is figuring it out. I think theyre still figuring it out do you think they will succe succeed . I think its going to be a tough deal theyre still figuring out expense structure. Would you buy macys or nordstrom . Nordstrom has a greater value on the top line. The off pricers are winning i like the tjxs of the world i like brands. Brands are winning when you see what a bf corp is doing, nike. I think luxury lvmh, tiffany, thats going to happen. Dana, nice to see you. You, too. When we come back, check out the futures. Dow up by 40 points. Were going to talk strategy and later, a vaping summit at the white house after the administration backed off its potential regulation is it now back in play well be right back. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Supporting Innovative Companies that will shape tomorrow and Building Workforce development and tuitionfree College Programs to generate the talent companies need. With a 150 billion investment in state of the art, modern infrastructure, and a nationleading commitment to lowcost clean energy, new york is doing more than any other state to build for the future of your business. New york state, the state of the future. Learn more at esd. Ny. Gov. Nongmo, made with naturally thesundown vitamins are all 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 dow is snapping a four week losing streak vaping under fire. President Trump Holding court as he weighs policy with the ecig industry elon musk unveiling his latest creation. This is not your grandpas pickup details straight ahead as the second hour of squawk box begins right now. Good morning welcome to squawk books right here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen this morning we are having fun. Thats the good news. Better news, its friday morning. 2 1 2 hours before the market opens and we are in the green. Dow looks like it would open up about 48 points higher nasdaq opening 27 points higher and the s p 500 up about 6 points. Heres whats making headlines at this hour let me reemphasize this, on a friday morning, its almost the weekend, the hong kong mask ban is going to be remaining in place for the next seven days. There are local elections in hong kong this weekend and the recent protests are expected to continue. Tesla ceo elon musk unveiling the new all electric pickup truck last night. The price tag starts at about 40,000. The unveil didnt come without some issues though that was supposed to be unbreakable bullet proof class thats what elon was promising but the tesla chief designer threw a metal ball and then the glass shattered. Were going to have more from phil lebeau. Hell try a second time. If i talk for long enough, youll see this. Failure second time, too well, maybe that was a little too hard i dont know. Okay stocks were going to watch that a lot stocks are coming under pressure dom chu joins us with a look at the biggest movers dom, things happening between china and the United States today. I dont know if you noticed. I did theyve been happening i think for quite some time now so im trying not to get worked up about it i will not, andrew, joe, becky, be throwing any metal balls at the touchscreen. This costs way more than anything i make. Got the fancy logo lets take a look at this week as it plays out the dow is on pace to snap a threeday winning streak it would be the longest losing streak rather, three day losing streak. The longest losing streak weve had in the dow it would also snap if these gains stay where they are. It would snap a fourweek winning streak for the dow lets take a look overall. That picture 1 away from record highs. Were not that far away. However, if you take a look at the internals and the stocks within the dow, there are big winners and losers among the names dragging the dow to the far side, you have home depot on the heels of earnings, 3m industrial china home depot, 3m United Health, the biggest laggard. Thats driving the dow action so far. With the s p 500 we could be on pace for the longest losing streak weve seen since september for the s p 500. Again, just about 1 away from record highs just to put it in a little bit more context and as for the stocks that have been really in focus for the s p 500 so far, it has been those retail stocks, right there have been clearcut winners and losers this week on the heels of earnings. Kohls and macys, the big decliners. Macys down 13 , kohls down 9 . Ecommerce sales down big divergence leaders and laggards, ill send things back to you. Dom, thank you for that. Investors watching the latest manufacturing numbers this morning meantime, yesterdays session 8 of the 11 s p sectors were in the red. Real estate led the way to the down side sliding 1. 39 . Energy, one of the worst performing sectors was up 1. 63 but remains in correction territory. Lets talk about all of this bob dahl is here doug ramsey, chief investment investor at leuthold youre sitting to my right so ill go straight to you. Where are we what do we make of all of this craziness . It feels like you hear one good story on one side, the other story is terrible. Thats been the whole week. Thats exactly where we are we have some good news and not good news. Chopped beyond frustrating is the outcome on the market. The path of least resistance fear of missing out. There is no alternative. Thats terrible fear of missing out is the whole but thats weak buyers, no question about it. But underneath the surface go back a couple of months, everybody is worried about a recession. Weve gotten enough numbers now to say it may not be strong, but were not going to get a recession. Thats enabled the market. Right the problem is Earnings Growth is earnings jumped 1 its a very stock specific you look at the earnings reports, especially retail and its no longer lets tell us theres an overall story about the consumer or about the larger economy. Its now very specific agreed, meaning weve moved from the beta to the alpha market yes and the alpha market is harder but its more interesting. Look what happened right after labor day when youve got that crash in momentum, rise in value, increase in cyclic calls, decline in defensive stocks. Thats whats going on thats the more interesting part of the market inside. Except for the fact that most investors are buying indexes and funds in which case theyre getting mixed up in all of it. Correct i think investors would say i have to play this game. Back to the active game back to the active game hopefully. We have to get it right. The s p 500 is only 3 compound higher than it was in january of 2018. We have the big down at the end of last year, the big up at the beginning of this year, but were not making a lot of progress. That goes to the larger point, joe, nothing is happening. Were up consolidated huge gains from 2016. In fact, huge. 60 . Agreed. Huge, huge gain. Doug, last time you were on, i just remembered this, i was kidding you about paulsen. You and jim paulsen are at the same firm and one of you is going to owe the other one dinner and im afraid you owe him like a weeks worth of dinners. You could not have been more wrong the last time you were on. Youre saying the same stuff now. Youre still totally baerisearih are you going to stick with that now . So glad i came on well, im just trying to figure out your thinking paulsen ended up did you tell him, geez, jim, you were right heres what i missed well, i mean, yes, i have i mean, quite frankly, i mean, what weve owned weve been allocated pretty well. I mean, we didnt get cautious in terms of what we owned. Pro cyclical, very heavy in technology our big winner this year has been semicapital equipment so the group work that we do is sort of divorced from the macro view, which in this case has been good. I mean, were not im not overtly bearish here in the short term i mean, id call our positioning low neutral. Its interesting, you know, you talked about the stock specific nature of this market. We see that situation technically. We have a situation where a lot of stocks are making new highs and a lot are making new lows simultaneously thats strange given aulie quit at this we have. Supposedly this was going to be a big, broad upswing we had in the quant quake. Its interesting we are back to the high market which typically is not a good sign for the next 6 to 12 months outlook but right now were going to finesse it were not as low in equity exposure as we had been at points earlier in the year. And to back that up, the average stock did make its high in january of 2018 the cap stock averages are down, most international averages are down its the cap weighted s p 500 thats looking great what would you buy right now . Ive got a list of six names. I know you do in managed care i want to own humana pick a different one if you want in this day in age you think you pick any one United Health care is still good joe has a love affair with that. Biotech abvi got to own a bank. Bank of america, citi. Take your pick card company, capital one financial. Target, go long target, short macys cummings in industrials. I want to have some cyclicals as the pmis and the isms get less bad. Do you want to agree or disagree with any of those picks . Well, its interesting. I think the pmis are huge here weve had all of this stimulus thats been injected over the last, you know, 9 to 12 months and it is not doing anything yet for the Manufacturing Sector i think sorry to interrupt. But my view is the tightening last year caused the economic weakness this year the easing of scentral banks ths year will be better next year. Well, bob, i can see its still on the come though without question. Industrial commodity praises are back near their lows for the year, which tells me were probably not going to get great pmi numbers for the month of november and, you know, at some point, you know, low rates for ten years, i just think the impact ultimately, im not sure its totally worn off, but certainly the beta i mean, the impact on businesses after this free moneys been available for so long i dont think is going to be quite what it was back when you were at 9 or 10 unemployment and attitudes just couldnt have been darker. Ill leave the conversation there. Appreciate it. Addios. Thank you guys very much. Still to come this morning, President Trump set to meet with representatives from the vaping industry later this morning as he weighs a federal ban on flavored ecigarettes dr. Scott gottleib will join us right after the break to talk about options and what may happen. And later tesla unveiling the cyber truck last night, but not everything went as planned well show you theid a veond talk about teslas latest model. Squawk box will be right back. President trumps going to hold a meeting at the white house. Eamon javers has the information. Reporter theyre calling this a listening session 1 45 p. M. Eastern time a lot of the top stakeholders in the vaping debate will be meeting with the press to discuss what to do about vaping, particularly teenage and youth vaping the white house, you remember, proposed a ban on flavored ecigarettes back in september. Nothing has happened really since then in terms of the absolute finalization on any plans. They insist that everything is still going forward. Heres the statement that the white house gave us on todays meeting. They say theres a serious problem among our youth and their growing addiction to ecigarettes. The policy making process is not stalled. It continues to move forward this meeting will allow the president and other Administration Officials an opportunity to hear from a large Group Representing all sides as we continue to develop responsible guidelines that protect Public Health and the american people. Take a look at some of the attendees we expect to be at the event today. Representatives of some of the big tobacco companies. Altria, reynolds, the american vaping association, the American Lung association and the american cancer society, Cancer Action Network all expected to be at this meeting today, so a wide range of voices speaking to the president. You remember, joe, back in september the president talked about melania trumps interest in this issue because of their son baron. The president said that melania was particularly focused on this issue because of the rise of teen vaping. But the politics of this are really unsettled vaping is so new its not like tobacco or other things where we know exactly where the politics shake out. There could be some political damage for the president because vaping may be popular among his base so there might be some people in and around the white house who are watching the political ramifications of this as well as the Public Health ramifications. Guys, back to you. That was the narrative when the backtracking started, that in certain in Trump Country theres a lot of vapors, i guess. Yeah. Smokers, vapors. Yeah. Thats the question. We dont really know how this shakes out politically, but that could be right the president could be facing a bunch of angry single issue voters if theyre vapors and thats important to them theres the argument that the industry makes and others make that vaping is important to get cigarette smokers off because you have transition. Transition. You have the normal libertarian type, antigovernment types that just dont want nanny state Grover Nordqvist is going to be sending someone to this dont tell me what to do. So what if its bad, thats my business. Dont tell this new entrant to the race. I had a 17 ounce sugary drink the other day, not in new york outside city limits outside of city limits. If you have a good contact, they can smuggle it in cant wait to have the whole country oh, stop it. I cant even believe it you bet. The most everybody getting stopped and frisked. The most accomplished Competent Person giuliani . That come on, lets go. Let me get to scott hold this for a moment in a recent op ed former fda commissioner Scott Gottleib detailed what the administration should be doing about vaping dr. Gottleib joins us now. We should point out hes a cnbc contributor and a member of the foo pfizer board you would like to see strict regulations coming down on this. What do you think will be happening at the white house whats happening behind the scenes you know a lot of the players. This is a legitimate process. Theyre trying to back into a policy process this is a legitimate meeting to gather Stakeholder Input and have the president hear from different voices if the concern is the vape shops, which is where i think the concern is resting right now and the idea that if you put in a universal flavor ban youll shut down the adult only vape shops, i think theres a way to cavre around the vape shops. You can make a Public Health argument why you might exempt the vape shops for the time being. If a vape shop is adult only, if it age restricts to allow people into the store, you couldnt allow that store to continue to sell flavored products on a direct relationship to a customer what you need to go after are the mass produced products that are cheap, disposable, very sleek and attractive that kids are buying in gas stations and Convenience Stores because thats what the kids are abusing. Its typically not the open tank big contraption sold to me vape shops because theyre hard to conceal. They consume large plumes of vapor and the kids dont like them. That is the push back Grover Norquist and libertarians might come up as eamon mentioned, stay out of my business this is my decision to make. Your concern has been the huge epidemic thats been taking place among children right. How about that . Its gotten worse, not better. No, its gotten worse juul upped their marketing its quite extraordinary i think theres a way to target the portion of the market of the products that the kids are using. You can consider taking the cartridge based products, disposable products off of the market pending successful applications with the fda where they need to prove they provide a net Public Health benefit. You can argue, they dont have enough redeeming Public Health value given all the youth use on the market and carve out the stuff adults use you have to make sure the adult shops age restrict remember, the United Kingdom doesnt have the youth problem we have. They have a Large Population of smokers transitioning to vaping but the difference is that most of the products sold in the u. K. Are the open tank vaping systems, these large kwer cr contraptions you dont have the 5 nicotine because it gives you a quicker buzz. You know the president. Its political he was clearly ready to go on this until he wasnt. Look, i think the reportings been accurate. Theyre concerned about shutting down the small mom and pop shops. From a Public Health standpoint i can make hold on, scott. Youre talking about in a very practical way. This is not a philosophical conversation. I think they can carve around the vape shops i outlined it in the Washington Post if an adult vape shop age restricts and is selling to adults, you can allow them to continue selling the flavored products were going after the mass produced flavors the problem with taking the flavors off the market and those products, i think the kids are going to start using the tobacco flavor. Who is going to come i want to know this is the thing i dont understand politically. If the president really is against vaping, which i think he is, across the board by the way, across the board. I agree with that. The idea that hes going to somehow lose his base because hes going to go after something which would benefit the public and the Public Health and hes going to lose his base to who . The base is going to transfer itself to Elizabeth Warren or to joe biden because they like him better i dont understand this. The whole thing is so cockamamy to me that i dont get it. I dont know that they necessarily look at the polling reports. Theyre worried about the political implications there is a legitimate argument to be made that there are adults using these to transition off of combustible cigarettes to vaping products you dont want to sweep the market of everything you want to leave something for the adults leave the open tank systems sold in stores that age restrict. You have to be over 18 to get in the store. Then you take Everything Else off the market so you preserve some portion of the market for adults who are legitimately using these to quit smoking. You know im not a big proponent of this altogether, but i think theres a way to carve around what the adults are using responsibly and what the kids are abusing. If we look at whats been happening, whats been overshadowed by the ecigarettes epidemic, smoking rates have plummeted. You have to acknowledge that some of that at least is a result of the vaping some adults are using these products to transition off of cigarettes on to these vaping products so you dont want to disadvantage them entirely i think theres a way to carve around this. It helps them go around shutting down the small shops. It sounds practical, common sense, a plan that could get done but will it i think it will i think that something is going to get done here they seem very committed they wouldnt be putting out these statements doubling down on the fact that theyre going to do something if they didnt intend to do something i think they were spooked by the politics of this and the push back, its another backing into a policy process and an open process, taking dialogue theyll come out with something that probably cavrves around the vape stores. You can get them off the market or restrict the kids access. Scott, great to see you thank you. All right if i get an apology for the big gulp like with the stop and thrifts, ill start thinking about it if it puts out an apology i dont understand. Business successful Business People who are good Business People and not only was mayor bloomberg a Good Business person, hes created more value than you can possibly imagine i just was talking about libertarian big gulp. I understand, but and then he managed the city for 12 years remarkably successfully. So i dont really understand im impressed with him. I could find two or three things i dont like and you could point them out but at the expense of you know how i feel about other things if hes focusing on those other issues that i think are less his entire post mayoral if you care about the Global Economy i care about big gulps. I care about sugary drink, to be able to buy one here and not retrofit all the factories well be right back. How much does political bias play into the market call. Well discuss that. Time now for todays aflac trivia question. On this day in 1900, where did the first mercedes take its inaugural test drive xonnusqwk when cnbcs ua bo cties re honored to have youn campus for the official visit. Aflac coach saban, how is aflacs Program Different from Health Insurance . Well aflac gives you money directly, for things Health Insurance doesnt cover. Aflac we put together a little highlight reel for you. Heres aflac helping you with your deductible. Copays. Out of pocket costs. You look good paying bills. Get to know us at aflac. Com i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. siren blaring Police Officer excuse me, sir. Sit tight. Yep, sit real tight, speedy. Cause youve got to call it in, Police Officer radio to dispatch. Type it up, hey, dispa. feedback ringing deal with that, dispatch. Write it up, walk it back, Police Officer slow down out there. And call hqagain. sigh siren blaring this isnt working. Introducing Samsung Mobile First Responder solutions. With the galaxy note10, you can get Realtime Data at the scene, all on one device. Samsung business solutions. Now the answer to todays aflac trivia question. On this day in 1900, where did the first mercedes take its inaugural test drive the answer, cannstatt, germany spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. 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. Mastering biology to advance human health. We can imagine a path to curing cancer, addressing infectious diseases, and figuring out alzheimers. And i believe our team at 10x will be instrumental in making this the century of biology. Were just getting started. Together, were going to do some amazing things. people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Investor don rogers joined squawk box earlier this week and raised some eyebrows with his comments on impeachment. We need to be thinking what does it mean when we have a president pence and how will he handle that . Weve been doing a lot of research we think over the next six months we could have that kind of leader. And a lot of people after the most recent election were not very bullish on the markets. For example, john rogers had the s p by 800 basis points. Part of that might be because of the occupant in the white house. Joining us to talk about how politics can affect market calls, elizabeth kemp, assistant professor of finance at the booth school of business she coauthored the study partisan professionals this is from Credit Rating analysts the study and you did an actual study where you tried to factor out other variables and its found that these professionals can make it harder to make money if the current occupant of the white house is a Different Party from what they are personally. It puts them in a bad mood or something. It doesnt it actually skews their ratings lower. Is that basically what the abstract that i read summarized . Yes the study which is done with my coauthor from cornell, we show that political views of analysts affect Credit Ratings, specifically alignment with the president seems to be important. So when they are supporting the president s party they tend to be more optimistic they are more likely to upgrade and less likely to downgrade firms. Heres what ill tell you the year that you use was 2016 i think for the lions share of this you point out its a more divisive time. Did you do it in 2008 . This is historically like nothing anybodys ever seen. Are you sure that isnt an outlier . Because you saw the forecast for what the stock market and the economy and the bond market, you saw a lot of the forecasts from mainstream financial analysts when trump was elected and kind of the opposite happened. Yeah. So our study was much broader in the sense that we studied data over 18 years. We looked at more than 500 analysts we did not just study the trump election, but we did find that the disagreement between democratic and republican analysts was particularly pronounced during that period. And we also find that it tends to be particularly high when the environment is very politically polarized. Im looking at it there im trying to figure out the bush 1 and bush 2. Bush 2 republican analysts were more positive . Were more positive. They were more positive during ws term than the democrat analysts, but thats right. Thats just a measure right there on the right what is that blue democratic analysts during trump, thats a measure of trump derangement syndrome moodys analytics had a report on what was going to happen to the bond market. I mean, i have never seen a more dire forecast for what was supposed to happen that they came out with. It obviously did none of it came to pass couldnt have been more wrong probably did you look at that one not that one in specifically, but certainly the data that weve been looking at tells us there is Something Special around the trump election because there was that was the time where our disagreement, we saw a large spike just looking monthbymonth around the election but, you know, it was not the only time where people disagreed. So its, you know, particularly pronounced now, but the problem was also there before. You did it with so this is upgrades, downgrades for basically corporate debt yeah. By the Ratings Agency yes. Can you extend this to equity commentary from the major firms in terms of the stock market or do you think that have you thought about doing that study is it possible could you do a controlled experiment there we would we would love to, actually, and i think its definitely on our Research Agenda to try to understand how broad is this phenomenon and whether other groups of professionals and finance are also affected by their political views. We thought that Credit Rating analysts are actually very useful starting point because, you know, theyre very geographically concentrated and so that made it easy to match it to Party Affiliation information but also i think because we know from prior literature that ratings are important determinant of firms cost of debt, that suggests that, you know, if we do find evidence of partisan bias there, it actually has consequences for the rating firms. Do you see Austin Goolsbey Walking Around do you know him at the booth school of business is he one of your colleagues yes, i do see him regularly, yes. Did he try to stop you from disseminating this information in the interest of disclosure . Did he say, youve got a breakfast to attend . Did he say, heres where the studio is and give you the wrong address . Did he try to stop this from getting out or no, elizabeth no. No my colleagues he may not have known about it. Theyve been very supportive. I cant believe hed let this getting out. We love him. Im kidding. I did this because i noel watch the video and he still wants to have lunch but never really tells me when hes coming here thank you, elizabeth appreciate what youve done. Interesting study. Thank you very much for having me. I think i should check journalists out. Shocking hes giving you the brushoff id love to have you i owe him lunch ill get back to you on dates that work. He does economist math on things we bet on. When we come back, some stocks to watch and then tesla claimed its cyber truck was bullet proof and then it smashed its window with a metal ball oops i cant say this word. I dont know what that stands for. Is the monolithic view of emerging markets obsolete . At pgim, we see alpha in the trends driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Welcome back to squawk box. Futures in the green solidly 53, 54 points on the dow the s p indicated up 6 nasdaq up 24 basically getting back some of the what we lost yesterday. Lets take a oh, this is you, andrew. Thank you, sir. Lets take a look at some stocks to watch this morning. Earnings from gap beating by 2 cents. Same store sales falling by 4 that was worst than analysts had expected its committed to spin off old navy and continues its search for a new ceo. Take a look at xerox giving hp an ultimatum right now. In its effort to go hostile in the bid unless the Company Agrees to pursue a friendly combination. They turned down the 22 a share offer saying its significantly under valuing the company. Still to come this morning, elon musk unveiling his companys latest skreeation at an event last night in california this isnt your grandfathers pickup truck not your dads pickup truck rgog tk wee intoalabout that after the break. people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. It is already working in cities like tokyo. people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Tesla unveiling its highly anticipated cyber truck last night in los angeles, but debut didnt go according to ceo elon musks plan. An on stage demo that was supposed to show a break proof glass went wrong phil lebeau joins us one of my viewers, i have to give it attribution. A love child between the pontiac aztec and the deloreon. Was that a joke on all of us, do you think no, that wasnt a joke. That was just a bad, bad, bad design choice by general motors. They were in a bad period when they made the aztec. Thats not even the ugliest. Then they had a baby and now, listen, in elon musks defense there is an axiom in the auto business that you want people to have a visceral reaction to a new model. Thats the only way to know whether or not its going to succeed. If you build Something Like everybody else has out on the market, its just going to be just another model they clearly made sure this is not viewed as just another model when they unveiled the cyber truck last night by the way, there are three versions of the cyber truck depending on the size of the motors, the number of motors, the battery pack that determines the range which is going to be between 250 and 500 miles when fully charged although its unclear what that range would be when theyre hauling a pay load of lets say 8,000 pounds or 10,000 pounds. They didnt give the statistics last night the reaction from analysts, two camps, bernstein think it will be a niche model teslas cyber truck looks weird, like really weird. Then there are the analysts that say, look, this is a radical design but it will resonate. Jed dorsime said we believe this will resonate with consumers leading to solid demand. Then of course there is the demonstration of the windows that you guys were showing earli earlier. Look, this was bad it might be years from now that was a really stupid idea to test the strength of the windows live on a stream here that clearly did not work the first time and then they said, well, lets go try it for the passenger window in the back. It shattered just like the first one. Take a look at shares of tesla, the price on the cyber truck when they start selling it, which is expected to be late 21, early 22 is going to be 39,900. Goes up to 59,900 if you are looking at the trimotor. Its like the foldable phone. Hey, we have a phone thats foldable you try it and it breaks breaks. They should have tested that, right . Theres a cynical view that they knew. I dont buy that. You dont listen to anything i say. I dont buy that. Look at elon musks reaction well play the video 100 times. You didnt hear me go off on that no, i did you said it this way you moved yourhand and when yo say it it actually becomes relevant right . Depends whos listening. Phil, thank you for that report ears are micro targeted so are mine. Like 100 people. Phil, stick around. Want you to be part of this as well joining us right now is alex kanterwicz, the Senior Technology writer from buzz feed and a writer from the new yorker. Author of habit. Are you going to buy this truck . No. You need a Leather Jacket if you have the truck by the way. And you need chance and hoops. I would buy it. If i could buy it, i would park it. Would you buy a hummer. Did you have a visceral reaction i liked it. It was beautiful. Let me ask you, do you own a truck . Have you ever owned a truck . I dont own a truck i grew up in new mexico i have never heard a truck owner say, you know, i just love cyber punc and what id love to buy is my next truck to be from blade runner. Its a utility truck. It wont cut into the market. Thats exactly right. I would love a truck that costs 10,000 more than a ford f150 and at 4 in the morning when im driving it out to the field if it dies and someone comes by with a gas can ill say, no, no, i need a generator can you get the generator. I disagree with you the people who have pickup trucks today, they have brand loyalty. Theyll keep buying them this is for the next generation of buyers, the group of people who grew up buying video games. Youre saying the same thing. Yeah, i dont think maybe youre right. Maybe in 15 years the video game buyer when they graduate from high school, go to college then like me needs to get a mini van thats one of the problems then theres kids to put in the back seat. Right . Thats the conundrum. A truck is a utility vehicle. You use it for something that being said, is this necessarily a failure . Were talking about tesla. Were not talking about the fact that none of their numbers make any sense. They had to dip into set aside to post numbers so perhaps for tesla this is a big win. We are going to switch gears. See the pun segue. Switch gears thats one of yours. Were going to talk about executives at softbank looking to reducethe size of wework soft stock adam neumann being a beneficiary. Talks are focusing on shrinking the 3 billion tender offer to limit the payout for adam neumann. It would come after they announced layoffs of 2400. It comes because many of the sn japanese banks who have lent softbank money are saying they wont give them the money if the money is going to wework. If you are sitting here a hipster neighborhood, and you hear a whooshing sound, thats the death spiral. Go to zero . I dont know. Softbank can make decisions to keep it away from zero is there a lot of enterprise value there . If you come and you pay more for your office well have a bunch of employees who will change the beer tap, teach yoga, show up at your parties by the way, we just laid them all off yesterday. What do they sell you for that premium youre paying for the Office Rental except for some ironic wallpaper im not sure how they make an affirmative statement to say, were cutting staff to make our business succeed. Have you ever been in wework . I have. People are going to be doing gig work and out there freelancing and need a place to work they went way over their skis on this one if you ask me, theres youre alex thats right. Youre the buzz feed dude. Thats right. Youre the new yorker guys . Charles theres people that i sometimes agree with youre the new age buzz feed dude that disagrees with him you are at the new yorker. I think alex is exactly right. Now youre agreeing. Its a new world. Its a Business Model. The model is real gig economy. But the truck is ugly. Truck is cool i totally agree with him too. I think the difference is is wework the company thats going to be able to execute on this opportunity . Right. Or are they so crazeily so over cap toollized exactly. I want to switch gears to one final topic which is political ads on facebook, on google obviously google switched their policy yesterday my question is will it force facebook to change their policy . Yes. You think facebook will change their policy. Mr. Zuckerberg you think is going to have to change what theyre doing . Theyre changing. They still arent going to fact check ads, thats not changing what they will change, theyll make a change on targeting we already know in 2020 theyre going to limit the amount of placements advertisers will be able to do so a politician running 2 million ads, thats going away i think theyll continue to ramp down this to this segment and this to another. Zuckerberg left the door open for making changes on the Conference Call twitter announced it were still thinking about it. I could change my mind. A facebook spokesperson told me everything is on the table. I think were going to see changes. Stay tuned for whats going to come. Final words i think the other question and the bigger question is it smart what google is doing and what facebook would be doing look, if youre changing rules about how elections are held and youre doing it in a way that the people in the left and right dont like, both the left and right hate what they announced, theyll hate it if facebook does it, i think youre going to pick a fight that youll lose the regulators will step in. Its a question of whether they do something or do something that looks like a band aid. Thanks, guys. Thank you fun conversation. Iacocca was testing the dashboard of the mustang years ago and it was supposed to be padded in case you were in an accident and he did it with eggs and they all broke he missed a couple times and hit the assistant in the shoulder. He did 11 eggs and most busted. But did he do it on a stage in front i think he did it in front of people. Tried that before hard boil the eggs, right did you own you liked the pontiac aztec. I didnt own it you want to have some eye catching. We understand the taste issue. Do you own a car . I got rid of my 1991 mazda proto zay and now take scooters. You are buzz feed im here for ya. Can you stay. I want to talk just about everything. When we come back. I dont understand a lot. You have a pulitzer. War on the battle of political ads on social media. The futureha bs veeen indicated higher dow up 56 points well be right back. Ep one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Can markets keep the streak alive . Major averages tracking their first down week in at least a month. The nasdaq in almost two months. Teslas truck play is it shrewd or just a stunt the electric car maker rolling out its first pickup it looks like the love child of the pontiac aztec and the delorean. And the confusion over online political ads deepens theres a new report that facebook is reconsidering its own policies facebooks former chief Security Officer will join us live. The final hour of squawk box continues right now. Good morning and welcome back to squawk box here on cnbc live from the nasdaq mark site in time square, im joe kernen along with becky quick and Andrew Ross Sorkin dow up at 55 points. Well see if that holds. The nasdaq indicated up 25 and change s p indicated up 6 treasury yields now down in the low mid 1. 70s. 1. 755. We are watching three big stories at this hour the markets as joe mentioned, futures are pointing to a positive open this morning the dows been up for four straight weeks at this point the s p has been higher for six weeks. The nasdaq hasnt had a down week in seven. Number two, chinas leader speaking out about trade overnight. President xi saying china wants to work out a trade pack with the United States and has been trying to avoid a trade war but he also warns that china is not afraid to retaliate when necessary. Third, teslas truck play. The electric car maker rolling out the ev pickup. Its called the cyber truck. The price tag starts at 40,000. The unveil did catch some attention. Didnt go off without issues musk had promised the truck was bullet proof, the windows. The tesla chief designer threw a metal ball as part of a demonstration to prove that and the glass appeared to shatter. Lets get over to nbcs phil neely. Joining us live from the asian hub this morning good morning reporter yeah, good morning. The focus of the protests in the last week has been the university, the scene of quite extraordinary clashes between protestors and police. It is quiet today and its been quiet for the last two days. It is still completely surrounded there are still several dozen protesters inside that university riot Police Inside but they are waiting it out one by one those protesters are giving themselves up its thought that there are perhaps several dozen hard core protestors still inside. As they come out if theyre over 18 they are arrested by police if they are under 18 they are allowed to go home so that festers on on sunday we have elections here so one week after those protests began, we have important elections here remember, hong kongers only get one chance, and this is it, to directly elect any level of government on sunday 4 Million People will go out to polling stations that will be guarded by riot police and its thought that the government here will get an absolute drubing in those elections because they are a referendum on the five months. On a poll conducted, 83 of people of hong kong said they blame the government and the police for whats happening here not the protestors so it was thought on sunday that the pro democracy candidates will do far, far better than the pro government candidates. As you said just before introducing me, behind all of this are the u. S. China trade talks and dont think that hong kong and whats happening here isnt part of that it is, andrew. All right thank you, bill. Lets get to the markets with all of the major averages tracking towards their first negative week in a month this mornings wall street journal reports that ray dalios hedge fund bridgewater is betting 1 billion that the markets will fall. Its currently one of the largest against the markets and that it will pay off if the s p 500, the euro stoxx 50 or both see a decline. Joining us to talk more about the markets, sarat sethi, a cnbc contributor and mike santoli i was reminded of a couple of things, mike, and that was sorro sorrowss bearish bets never worked out and another guy that loved dealing in puts named buffet he sold billions of dollars and made added so much to his when you sell puts youre just betting that the market is going to continue to rise. Sure. So we seem to say how high every time dalio makes a move. I mean, the first thing to say is that the report kind of lacks context. You dont know where this fits within the constellation of all of the things the firm is doing. Its not a bet the firm trade on the market going down right away i think you have to point that out. I think it reflects some sort of general activity among big institutions saying puts are cheap. You might as well lock some in if you can look at sort of the slope of hedging activity going out several months, there is this welling up of concern thats concentrated around early march, which is super tuesday, which is when somehow people think thats when Election Outcomes are going to be relevant for the market. So it reflects that activity it doesnt mean the market is going to tell you its going down. When puts get really cheap theres a reason sentiment wise and sentiment dictates a lot. Expect calm market, were at new highs. Puts probably should be cheap. Hes playing the odds every 18 months you get a 10 correction on average. On average. Sometimes it happens. For all of those who have missed this 20 plus rally, especially the hedge funds, weve missed most of this, how do we say were charging you 2 . Theres something we have to do. I dont know when hes going to be right hell be right at some point. You follow bridgewater. Yeah. He has more his hands are directly involved with some funds more than others, right . Some did well and some did just miserable, right theres the classic bond fund. The all weather. The all weather the all weather is the man mouth sized fund. Which over 20 years has a great record. A couple of them he was more involved with. Its not that hes more involved with them or less involved, its you can find some poor performers. Very moodle driven. Its not like the cowboys this is not that ray dalio wakes up and says, i want to buy apple. Thats never happening thats not part of the then he doesnt act on his recession calls that we hype whenever he makes them in the last few years weve hyped a lot of different calls none of which i dont think that those calls per se first of all, i think a that we, i put it more on us than i do him. I would too. In hyping yes no, thats what happens were doing it again today. Mikes explanation is perfect. Have you gotten hurt by saying yields are going to stay low around the world and theres a lot of macro very few of the big bond guys stayed long. Mikes explanation is perfect with the nuance that puts are cheap. This isnt a bet the firm and you dont know what else the firm is doing and balance the risk on the other side. By the way, you want that you almost want people thinking just around the corner theres something you have to worry about. Thats not new thinking over the last year. Its finance 101. If we didnt have it, youd be off to the races and worried about sentiment. Right as weve gone to new levels on the s p have you decided to raise cash i raise cash on specific companies that are over valued im still bullish, invested fully. I think the parts of the market that are still cheap, trading local value or book value, i think some of the techs are extended i think oils getting very cheap here so theres opportunity here within the market but if youre fully invested i think you stay to your objectives you dont have to be at the higher end. When you say fully invested that means everything you sell you file it back into Something Else or always a certain amount of cash . No, im mid range if somebodys objective is 60 to 75, im at 65. Im not at the higher end. The market has given us that higher end but if i have cash, i will deploy it i wont sit on the side completely. Do you think the market, either one of you, is getting desensitized im looking for the next thing im surprised the futures are higher after what president xi said yesterday. But at some point in time, is the election the next big even within china i think the market needs something decisive one way or the other before it reacts to it because the premise right now is weve kind of deescalated to a certain degree we havent foreclosed on the possibility of, you know, pushing off the tariffs in december so until we get out of that band of probabilities what are we talking about after the first of the year . The recession, we stopped talking about that. The recession i think elections are going to be front and center. You do . The National Elections are everything. Well, i think whos going to be on the democratic side. Thats probably why youre seeing all of this stuff as you mentioned. Its always a question of what we dont know that causes the markets to go up and down. Todays data on what we have, you have a pretty good market of 1. 5 to 2 , but its always that uncertainty thats the premium bonds at 1. 7 not a lot of value. We have to test this premise that the markets are based on right now, which is that we are going to get a reacceleration. In the next few months you have to see the data come around to the markets view and were off to better numbers next year. I think after the first of the year weve refocused, too, dont we i think earnings have to go up next year if they dont go up, youre going to get a market with a multiple compression coming back down. When will we know if theyre going back up . I think this tariff is huge with a lot of companies with cap ex, at least when we talk to companies. Great balance sheet. Thats providing some bottom to the market youre getting dividends above the your ten year so thats providing some support to the market so when were showing dahlias new market wave, thats a billion dollar stock its possible they have been married but to a long position, too. Whats the long position whats the long position 80 billion how much altogether 150 how much in equities thats like 30 to 50 billion position i dont know. Thats a married put one thing its signaling. We dont know what hes trying to do. Hes not trying to beat the market the whole objective, the clients are going to lose the money. As of 2018, i dont know if this is right, 125 billion. No, im sorry, theyre saying about 160 billion in total. All right i figured youd be when we asked you to come on we were going to say, ill do a phoner, but thats it . I managed to get him. Youre available for a phoner just about any time . The relevant people here have my number. Thats not you. He said that looking at me thats why i knew exactly what you were saying, mike. Sar saras. Any time. Theyre staying here. In fact, when we come back its a phoner youre going to leave and come back. With Charles Schwab negotiating to buy t. D. Ameritrade, we play takeover talk well hear more about this deal. By the way, whos the player who could get bought next . Stay tuned, youre watching squawbo rhteronnbk xig he cc. Servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Youre going to leave and come welcome back to squawk box this morning take a look at futures where things stand as we speak dow looks like it would open up 47, 48 points. Nasdaq opening 19 points higher. The s p 500 opening up 5 points. As i first reported yesterday right here on cnbc worldwide exchange, Charles Schwab is in talks to acquire t. D. Ameritrade. Sarat sethi is here and mike santoli. Sarat, i know this is an industry you know pretty well. We have over 2 billion in schwab serving on their Advisory Board for many years schwab cut trading fees they were the first people to do it its really a consolidation of complementary assets so i think if youre schwab youre looking at a big potential of complementary sinner kynergies on the revenue. You have customer base, clients like us that are sharing both and if you get the synergies especially given td has 25 of trading going to zero. So you can see it from their side the question is how big do they become you guys are controlling 40, 45 of the business. Would it affect you as a customer no, it wouldnt it would make us simpler we do use fidelity we have a couple others as well. Does it provide any variety to our customers . Maybe there would be more money spent on technology. What would be a fair price . I think when you look at it thats whats up in the air right now still . Right right. Its a question of what are the expected synergies i think youll get mid teens ecretion and the stock reflected yesterday. A lot of that has to go right. They have to relinquish the control. That has to go right you have to get more negotiation. If this doesnt happen, i think t. D. Is going to be in play and you have some other player. I was going to say, is t. D. In trade or etrade i think they would both be. A lot of them are looking etrade is more selfdirected, so is t. D a lot of these players like schwab, you may get somebody looking for wealth management. Thats the highest turn on investment then you add the cash value and you expand the pie most of them dont have all of their capital at t. D. And sch b schwab thats another area. Schwabs done a great job in that business. The deal has to happen because is there a price at which theres a problem for them i think theyre forced to do the deal obviously there will be some price. If t. D. Says were up 20 , we want 40, schwab would walk away. They have usaa that theyre still trying to digest theres a lot on the table for schwab they have a lot of opportunities. The market is telling you they like this deal. The fact that the market took schwab up, thats the if its a stock deal, schwab has more cash on hand. They are more easily able to pay for it. We look at the prior deals, prior stocks have not been going up so the market has been telling banking stocks, which everybody thinks is cheap, and you have Asset Management saying, wait were seeing more synergies and you have two people combining and really after that theres no publicly traded bohemoth you have Goldman Sachs and Different Things similar that would be good for the industry as well you would see more of a consolidation. Better for the customer. Theres no trading fee so you really have to say how is this going to affect returns schwab has a lot of other things that they have they have their own mutual funds and products i think theyre looking at, hey, we can get this at a cheaper price than it was six months ago. Its a massive acquisition of accounts and a huge cost save. To me, thats the way i see it youre not buying a brand. The active trader business, everybody coveted and its a lot less because youre not charging basic commissions. Thats a significant thing the cost of Customer Acquisition is tremendous. The risk on this is acquisition. On the schwab side . On the schwab side. Because theyre both strong brands. Both strong brands. Are you going to have customers that go somewhere else that say, wait, i dont want to be part of this how do you even deal with the customers . Because the t. D. Customers never really had a lot of people to talk to, right theyve been selfdirected now all of a sudden somebody comes in will they move to somebody else . I think a lot of this is done because of the rollover. Youve gone robin hoods, the bettermans of the world schwab has that, too i think this is an interesting play being on the offense, kind of what they did with cutting commissions but now theyre saying to the players that are getting funded by venture, hey, we make real money market likes real money at this point as weve seen in any publicly traded company. I think this will be an interesting shot across the bow for all of the other players to say were going to be the bohemoth of this business. Sarat, thank you. Well see you at the stock exchange, mike are you connected to people, to your peeps . Have you seen anything happen recently just in the last 20 minutes or so . I dont know what youre its friday you love fridays anyway, right yeah. John bolton, glad to be back on twitter. I saw that. After more than two months. Yeah. For the backstory, stay tuned, dot, dot, dot, dot, dot his last tweetwas on september 10th and it said i offered to resign last night and President Trump said, lets talk about it tomorrow that was his last tweet. This is his first tweet. And you dont think the next treat is going to say, buy my book pretty sure its not going to say, ill be testifying. Maybe not but i just thought it would make your day anyway, i dont know whats going to happen. Coming up, teslas truck play. The electric car maker unveils the highly anticipated pickup. First impressions are just ahead. Im staying tuned. Coming up, a fork in the road for online political advertising. Today twitter goes its own way while facebook and google prepare to go theirs just ahead, well get expert analysis on each strategy from facebooks former chief Security Officer. U w tuned yoreatching squawk box on cnbc it also has the highest groh in manufacturing jobs in the us. Its a competition for 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. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. But a Company Develops a way by tto actually attack it. In, what drew me to Capital Allocation in Health Sciences was the potential to help many people through investments that help fund medical innovation. My team and i often choose to invest at the very early stages of human trials. Investing lets me use everything ive learned as a doctor to help make a positive impact. So thats why i go beyond the numbers. Welcome back to squawk box. Futures indicated up 42 points on the dow weve had some green most of the session based on some comments from president xi that could be taken positively but then said that we can retaliate but we want to do a deal these are a small move on the percentage basis youtube is preparing to overhaul the way it displays kids content on the platform. Kids are worried it could be the end of their Business Model. Our ylan mui explains why. Jeremy johnston explains his days are family and plenty of fun. 1, 2, 3, go. And he shares it all on his Youtube Channel with his 2 million subscribers. Its his fulltime job and a big business it takes up to 40 people to put together all these videos, but lately the most important place for johnson to be is washington, d. C. Were trained to inform the fcc legislators. Reporter johnson is worried his channel and his ad revenue are about to take a big hit. Thats because youtube is changing how it shows its content. It comes after the company was forced to pay a record 136 million to the federal trade commission over allegations that it illegally collected childrens personal data privacy advocates say the change is long overdue. I do understand that this is going to affect their bottom line and theyre upset about that, but i think one thing they need to recognize is that the Business Model that they were using was an illegal one. Some content creators predict their ad revenue could plunge by 60 to 90 so now theyre fighting back. This is very serious. So Family Friendly content is kind of in danger right now. We may not be able to create content on youtube. Reporter creators argue that youtubes rules discourage them because they cant make any money doing it some of them could move to amazon prime or netflix where the rules are different, but most of all, they just want washington to hear their side. As theyre getting this new information theyre reconsidering. Theyre thinking about it and theyre realizing that this is a bigger problem and they dont want those unintended consequences. Reporter guys, johnson had planned to create a Second Channel next year that was more focused on education but those plans are on hold. Back over to you. Thank you, ylan appreciate that. Coming up when we return, top stocks making moves ahead of the opening bell well bring you the biggest names next. Next, twitters ban on worldwide ads starts today is the social media making the right move facebooks former chief Security Officer will join us next as facebook is considering making policy changes stay tuned, youre watching sawbo ocnquk xn bc e middle wi no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. So it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. More exciting than than getting a lexus. Giving one. This is unbelievable it really is. The lexus december to rembember sales event lease the 2020 rx 350 all wheel drive for 419 a month for 27 months. Experience amazing at your lexus dealer. Welcome back to squawk box, this is cnbc were live from the Nasdaq Market center in times square. Microsoft says that the Commerce Department has okayed its request for a license to export Mass Market Software to Chinas Huawei the tech giant sells windows and Office Software to huawei. Also, uber shares are rising this morning upgrading that stock to a buy saying its showing signs of sustainable improvement and that its valuation gives investors good entry point check out the futures. The dow indicated up by 57 points nasdaq up by 20 and the s p up by 6. Lets talk about social media as twitters worldwide ban on ads goes into effect. Facebook taking a second look at its own policies criticized for the decision to allow politicians to say whatever they want on the platform facebook is thinking about increasing the number of users who can be targeted by a political ad from a hundred to a few thousand that could cut down on the practice of micro targeting or targeting small numbers of users based on specific criteria joining us to talk about all of this is alex stamos. Good morning, andrew. The real question is take us inside Mark Zuckerbergs brain how much of a push, a shift is this going to be for him do they want to do it . I dont think they want to do it they dont want to be the arbiters of what is an accurate political ad they dont want to be in the place if trump has an ad that says the u. S. Economy has never been better, that facebook has to decide whether thats true or not. When you look at what google has done, do you think that theyre going to be taking positions on that . I dont think thats what were talking about. No. Thats why theyre looking at limiting micro target ging. The truthfulness relates to all. Why dont you think Mark Zuckerberg from a philosophical perspective is willing to take on the issue of saying for the most egregious stuff im going to deal with it . I think they could. I think they could have a standard that is about claims about your opponent. The costs for them in terms of human beings being required to deal with these ads, because thats got to be part of the problem here. Its not. The truth is the volume of ads that run on facebook is minuscule compared to the volume of organic content the volume has tens of thousands of viewers what he doesnt want to do is he doesnt want to break the seal on the idea that the super powerful targeting products are dangerous at all he doesnt want any kind of idea that let me ask you about two break the seal ideas though. How do you feel or do you think it would do it, turn off political ads. Right now on facebook you can say, this works for me, this doesnt, work through the algorit algorithm. If there was a toggle on toggle off, is that a slippery slope . It says i want to turn off all ads or ads like this i think giving users choice is reasonable. The truth is when you work on these products you have the tyranny of the default. To me the ultimate band aid would be you can turn this off. People arent talking about their individual choice. What they dont want is they dont want politicians running ads for their own supporters. You would turn nothing off . I wouldnt. Neither would i i understand why you want to limit micro targeting, why that makes sense in the context of a president ial campaign or whatever, however, if i was running as mayor reaching 100 people might actually be all i want to reach. Right if they came up with a micro targeting standard you could have tears you could say president ial candidates and house candidates have to do on a Congressional District basis you could say if you proof your mayor or local town council you lowered the limit, were going through a verification what for issue ads thats the problem twitter has backed themselves into in 2019 everything is political. What are they going to do when nike runs a Colin Kaepernick ad or exxon runs an ad saying theyre caring about global warming. Is that political . Twitter is motivating the advertisers to fight them over and over youre not limiting their targeting, youre banning them from the platform totally. So what do you think is going to happen . How soon do you think this all gets sorted . If im going to make a guess i think in the next couple of weeks you will see facebook announce some kind of limit on targeting. Does that placate people by the way, does it rile up one side of the base or the other in terms of Political Class well, this is the interesting thing. I think people have over pivoted on the democratic side pushing against this i actually think in the end limiting the power political ads is going to hurt trumps challenger he doesnt need the ads. He has the ability to hit them. All of these democrats are screaming. This is going to hurt democrats . Its a dumb move honestly by the democratic candidates. The moment we have a democratic challenger theyre going to need to spend tons of money to make up the enthusiasm gap. Mayor pete, he doesnt have name recognition. He has to define himself hell be limited in his ability to use online ads when trump can use his massive organic base to define him. Wait a second tell me this again because trump no, i understand. Im just wondering so many followers. Im going to have to reevaluate. Ive got to be you. Yes yes okay i will then. Weve got to censor all of this stuff. Its awful terrible lies, lies, damn lies. No, weve got to switch places. Right are you ready not really but not really. Does google get any high ground for this, any credit for this . Is twitter getting any credit for this does it really matter . I think it matters. The first thing is this demonstrates why we need a legislative move by congress only three companies have done anything, google, twitter, facebook those are the only three that have launched ad transparency projects there are thousands of other companies that have done nothing. You could run a very vigorous silent campaign, perhaps even with foreign money and just avoid those three companies and hit tons and tons of content. What do you make of this sort of critique . You saw this report yesterday, Mark Zuckerberg and peter teal have dinner at the white house there are people within the Silicon Valley and facebook according to some reports that are cant believe whats happening here yeah. That makes no sense to me i think you should be out having dinner out having dinner every night. Whats the problem yeah, i you see this in two places you saw it with zuck and then tim cook. Tim cook different because he effectively was participating in an Advertising Campaign for apple im sorry, not for apple but for the president. His entire business is based on being able to import from china . Thats right. He decided that the gamble here was ill be in the ad and the cost of being in that ad is i will keep the tariffs off. To me this demonstrates why you want these companies to have the least power possible in political advertising. The truth is the president of the United States has spectacular power over every company in the United States, right . He controls the entire regulatory state he can start investigations from the doj. You dont Want Companies to be in a position where a person like this is over. Thats why if theres going to be rules, the rules need to be finely targeted and fairly enforced if you end up in a situation where they have a lot of discretion, youll see people like trump trying to use that. It suggests that maybe companies here we always are saying companies should come out and deal with political issues, immigration, social issues everybody wants to be socially responsible. Who says that we talk about it all the time you say that. I know. Dont look at me while youre saying that. Then you look at the situation that tim cook is in what do i care about . Money, money, money, money, money shareholder value. Thats money, money, money, money, money thats the true green movement. Do you like the truck or what the truck from the future, im not sure i would ever do a demo where somebody has to smash a window. Do you like the way the truck looks . Im probably not the target audience i dont know who is that what you meant . People who are buying the flame thrower, thats the target audience. If it had a weapon mounted on it, that feels like it would be much more there are flame throwers everywhere. It looks like a Stealth Bomber or a Leather Jacket to own this car. Is it stealth i wonder if youre not on radar. No, i think is it really a serious truck that theyre trying to introduce to the yes, thats what he said. I dont believe it. Were going to talk more about it thank you. Youre not the demo. I have a tesla. I love my tesla. I have a model x i wouldnt touch this thing with a ten foot pole. Getting out of that thing in the parking lot. They have Leather Jackets on. You wouldnt look cool without a Leather Jacket. When i do the carpool i have to put my kids in matrix jackets. Walk out with a flame thrower and start coming up, can tesla crack the markets for pickup trucks . I dont know. Crack it how . Rolling out the latest electric model lets say it doesnt resemble any pickup youve ever seen. Well tell you about it when squawk box comes right back. Dont forget to subscribe to our podcast. Youll get interviews, original content and behind the scenes access look for us on Apple Podcast or on your favorite podcast app and bsibtoquk toy. Da for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. But he wanted snow for thelace holidays. So we built a snow globe. Ill get that later. Dylan but the one thing we could both agree on was getting geico to help with homeowners insurance. What . Switching and saving was really easy i love you what . Sweetie hands off the glass. Ugh call geico and see how easy saving on homeowners and condo insurance can be. I love her weveryone, looknk isntat your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Its namesake jams, folgers coffee, milk bone dog biscuits sales were ever so slightly below estimates and smuckers did cut the full year profits and sales due in part to softness in its premium dog food offerings. The shares off 1 3 of 1 next up shares of foot locker higher by 3. 5 336,000 shares of volume they posted better than expected shares of profit sales did phi shy of expectations sales growth at established store locations, samestore sales came in better than expected so did profit marge kbins. They were better than last year. Those shares on the move higher. Were going to ind with shares of a smaller company. This is a big premarket mover weve got buckle which is up about 9 on 6,000 shares of volume the apparel retailer posted better than expected profits and growth in online transactions. So, joe, those shares up 10 its only a billion dollar company. Ive heard of it. Never been in one, dom do you know anything about it . Ive never been in one. What they do, they apparently sell apparel to young adults i dont know if i can call them a teen retailer. They say they are targeting younger adults. Got nothing to do with buckles though, right . They sell clothes that dont have buckles. I see jeans there on their website but they may have belts that have buckles on them. I dont know i dont shop there do you own a belt i own a belt. I dont like belts as you know. I know that yeah. With you its not a mistake. No. Youre not groggy and forget . No. My pants have the tabs. I know. Because if i travel, i dont want to sodifferent yet so alike. Thanks, dom. Lets talk about teslas big night. Elon musks company rolled out it says here, interesting looking pickup truck phil lebeau joins us now with more youve had three hours, phil, since weve been talking about it do you like it more or youre not im trying. Looks like a Stealth Bomber sort of, too, doesnt it . Reporter yeah. Absolutely it looks like something out of mad max. Look, i think its a great niche vehicle for a statement. Will it look like that if its ever built starting in the end of 2021 . Will it look like that if it is, its going to be a niche model. Thats my prediction i could be wrong could end up being wildly popular. It will start at 39,900. Production is set to start late 2021 heres what theyre offering with the cyber truck three versions of it the range depending on whether or not you go with the dual motor all the way up to the tri motor. Between 250 and 500 miles when fully charged. Towing capacity, between 7500 and 14,000 pounds. As strange as this looks, and thats getting a lot of attention today, it was the demonstration of what was supposed to be shatter proof glass. The windows are supposed to be shatter proof. Look what happened when the head designer, he threw a Weighted Metal ball at the passenger door window or driver door window that shattered give it another crack. Try it at the rear passenger window lets see if it does better there . By the way, he did not throw it as hard as he did with the drivers side and as you can see here, yeah, it didnt work the second time either heres elon musk on the glass failure. We threw wrenches we threw everything. We even literally kitchen sink at the glass and it didnt break the reason it broke now, i dont know why fix it and post. By the way, most of the analyst notes out today, they believe the cybertruck is going to be a niche model. Lifestyle vehicle, if you will, that is going to have limited sales or limited appeal here one other thing, guys, as you look at the analyst notes, you know how much discussion there is about tesla stealing away major market share from the big three and pickup business . Zero very little discussion of that because thats just not a vehicle that is going to be likely making somebody who is a contractor with an f series say, oh, yeah, im switching over to the cybertruck thats not the opinion as of right now. Mad max, retro fitted old trucks what about the johnny cab from total recall do you remember how about that i like that. That about that thats not bad. Johnny cab from total recall. I thought you were going to call up the urban assault vehicle from stripes. The big toe, yeah he watches sometimes what was his sergeant husker . Okay, anyway, phil, we got to talk about this in business, the business side of things. Craig irwin, Senior Research analyst at roth capital. Tim higgins, reporter at the wall street journal. When wants to start . Business wise . Well, it makes a lot of sense in some ways if, you know, tesla is trying to get into the pickup market, you know, toyota, for example, struggled for a generation to get any traction there because of the detroit freeze stranglehold on that segment. So if you look at where teslas market is in the u. S. , it is largely in california. Thats one place that toyota has seen success with its midsize truck. Is it a business no, a niche product. Phil is right about that. You know, there is a lot of jokes this morning this is more of a brand Building Event than anything else, you know elon played way too much minecraft over the last several years. Thats what allows him to connect with the kids out there. You think the Younger Generation will buy the truck and wants a truck like this . There are people that want a truck like this. I was out to dinner last night with the ceo of a Silicon Carbide company from texas, like, man, im buying one. There are people that definitely want Something Like this. You think they thought the glass would not break . Of course they had no idea the glass would break. That was the best part of the demonstration was atv. I think that could crush everything right . Thats a cool little toy so, you know, last night was really just elon having some fun. He said he said in public before that, you know, he doesnt really expect the truck to be mainline product really not trying to break the f 150 stranglehold then . Or are they . Yeah. No, they want to take it they want to be tough, but if their talk of bulletproof siding and windows and stuff like that, but clearly not a vehicle aimed at commercial buyers that would make a lot of that segment, people using these trucks in the Business World something also interesting here on the pricing, and kind of suggestion of the rollout, the cheaper one, the cheaper version of this truck is looks like it will be one of the earlier ones to come out you normally see the high end one come out first you want to kind of get all the money you can out of the hot new vehicle. But the companys signaling it will be late 2020, 22 before the higher end truck with the performance features hits. I just wonder so theyll never sell 100,000 of these . Theyre going to outsell the delorean thats a safe bet. But they probably wont outsell the aztec and that peaked at 28,000 units a year. It will be something similar to the s and the x, maybe better, maybe better than both. Is it good for people to take their eye off the financials of tesla or thats not part of the tesla needs to do whatever they can to keep the multiplei the stock. And part of that is driving enthusiasm for the rest of the vehicles and enthusiasm for the company. And Retail Investors are a large part of the trading dynamic in tesla so, you know, this is something theyre doing to maintain their multiple. You never could figure out the whole flame thrower thin think if they did have a couple attached to the siding and it came out with those things, you know, on full bore. That could have been maybe even more popular. I said, should come with flame throwers and there is the atv. This is going to freak out. Craig, thanks tim, thanks. To jim. Thats right. Jim is still in San Francisco at one market plaza jim, i know you already talked a little bit about how you grabbed live wires when it comes to telling people they should sell pot tax right now, why dont we go through the trifecta and talk about tesla too . What do you think . Well, geez, i hesitate to call it anything other than a disastrous launch. I thought this could be something that would be additive immediately because pickup truck market is the most robust. Suddenly the big backers say, listen, never really important i dont know the stock is up gigantically since we first started hearing about this and this is all they got the momentum trade may have ground to a halt here. Never have to say that, i just said it. All right hat trick, way to go, jim. What else is catching your attention this morning what should we be following . Foot locker surprisingly strong growth. Mallbased player, talk about appealing to youth and it looks like it is working i dont know many people who felt that would be good given the fact that i thought the mall was dead nordstrom had a good number. Williams sonoma had a good number and people are finding fault. I beg to differ and think the stock could rally. Awesome jim, thanks for the quick tease on all of that well see you in a few minutes by the way very good, thank you. Great stuff out from San Francisco this week. By the way, an exclusive interview on mad money with the ceo of clorox. Thats coming your way at 6 00 p. M. Eastern time. Stay tuned squawk box will be right back. This is an incredible milestone for 10x on our journey to mastering biology to advance human health. We can imagine a path to curing cancer, addressing infectious diseases, and figuring out alzheimers. And i believe our team at 10x will be instrumental in making this the century of biology. Were just getting started. Together, were going to do some amazing things. 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. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Quick final check on the markets. Half hour before they open the dow looks like it would open up 65 points higher. Nasdaq looking to open up about 25 points higher the s p 500 up as well, about 8 points higher. The ten year note now, looking at 1. 760 and on an where is bolton bolton, stay tuned for that stay tuned for bolton. Trump saying on another network, we have a deal with china, in his words, potentially very close but then says he told president xi this cant be an even deal. Which is what president xi responded today that it has to be on equal does this move anything probably not. A lot of basketball today a lot of little tournaments and stuff. Have a fabulous weekend, everybody. College. Well see you on monday join us then squawk on the stree squawk on the street begins right now. Keep walking on good friday morning. Welcome to squawk on the street. Im Carl Quintanilla with david faber at the New York Stock Exchange cramer at one market in San Francisco. Dream force gets ready to wrap up today futures getting some balance out of the comments from the president on fox a few moments ago that a china trade deal is, quote, potentially very close. Plenty to watch, whether it is the flash pmis, la guards first major speech, the Tesla Cybertruck europe is up ten year 176,