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Transcripts For CNBC Squawk Box 20131030

in just a few minutes. but first, the rest of today's agenda, earnings central will be hearing from general motors, nbc parent comcast, chrysler, corning and sodastream, all before the bell. this afternoon, we have visa, facebook, comcast, kraft foods and many others. on the economic front, the fed wraps up a two-day fomc meeting in washington. this is a policy announcement set tore 2:00 p.m. eastern today. the central bank is expected to maintain its massive bond buying campaign. fed watchers say ben bernanke and company may point to softer readings on the economy to signal that the policy will be extended into next year. as for the other items on today's economic agenda, the october adp employment report is going to be released at 8:15 eastern time. it's expected to show 150,000 private jobs were added this month. the whisper number, though, is below that. we'll see what happens. coming up at 8:30 eastern time, we have the september consumer price index. it was delayed by the government shutdown, but it will be hitting the tape today at 8:30. the futures this morning, you can see right now, are indicated higher. dow futures up by about 55 points. s&p futures up by close to 6 1/2. andrew, back over to you. welcome back. >> thank you, becky. it's nice to be back. we have corporate news this morning, the big one being jpmorgan and the justice department reportedly hit a stumbling block over that 13 million settlement over the mortgage bonds we've been talking about for the past two weeks. the two sides are set to be arguing over whether mistakes to be paid by washington mutual. jpmorgan saying that the fdic should be on the hook for that piece of this settlement, worth a couple billion dollars. and those talks are continuing. we'll see how things play out over the next couple of days. also playing out over the next couple of days, sac capital will reportedly plead guilty to securities fraud with federal prosecutors. the deal expected to be announced by next week, if not earlier. and the final details are being finished quite quickly. "the wall street journal" says steve cohen's firm will agree to stop managing outside money and to pay the government criminal penalties of$1.2 billion with a quick note there, steve cohen will remain under criminal investigation personally. however, there's an expectation that no case will be brought against him individually. nelson peltz spun off pepsi's beverage business and merged its snack business creating a $70 billion snack food giant. finally, china mobile has put an advertisement on its website for the faster 4g network. this is raising expectations that the deals between the largest carrier and apple may fine finally be announced as early as next week. and if you are getting ready for the twitter ipo, check this out. twitter is getting high marks from institutional investors would net with executives on the road show this week. investors say they are optimistic about the social media site's ipo and see little sign of the irrational natural exuberance from last year. speaking of twitter, if you got on the site this morning, they're showing visual mete media directly within the twitter time line. in the past, you had to click to see the tweet, to see that embedded multi media. but now there's a lot of images, which means they can sell ads more easily. >> i'm going to go there. twitter? >> you've heard of it, maybe. you're on there, man. >> i know. >> joe, squawk, which is it? i don't know. yesterday someone asked me and i said it was @squawkjoe. but i'm @joesquawk. very important to me. stocks to watch today, linkedin posted better than spented results. the social networking company, issued a conservative revenue forecast for the he of the year. that dampened the sizzling stock price. 247. 239. down eight from where it is right there. and you can call cnbc to attempt to get your own obama care insurance here, if you want. we've got some of the same people working on -- that's a glitch, isn't it >> it's a glitch. i don't understand why you would ever want the market close when there's been trading after that. apparently it's the way the system is set up. we've asked about it, but -- i see it. i see it, andrew. >> do you see the glitch? >> no. i see a big picture on my twitter feed. >> of? >> i'm not going to say because it's weird. i don't know who this is. an advertisement from a site called h-i-s-c-o-x usa. and then it says small bis and it's an advertisement on twitter. why anyone would have a company like this, i don't know. but it's the very first thing that comes up. isn't that weird? there's a cnbc tweet here. and than a fortune pag zeeb tweet and then i don't know what that is. >> promote by -- >> it looks for real. it's a nice picture and everything. >> is that how they make money? >> i don't know. weird, right? your eyebrows are dark today, man. >> what? >> look at those things. it's not halloween. >> they're darker than normal? >> he doesn't put anything on -- mascara is for your eyelashes, not your eyebrows. >> oh, they're beautiful. >> thank you. >> that is creepy. >> it's just a fly. i'm not going to swat at that. anyway, yelp, a loss of 4 had. share price was expected in that stock, wow, in that case, becky, it looks like it has the right. >> all right. oh, because it's ticking this morning. that's what it is, right? the glitch is if it hasn't traded this morning, then it reverts back to yesterday's close. >> okay. take two actor's ennings. finally, electronic arts posted better-than-expected earnings in revenue. expecting lighter than expected goois guidance for the current quarter. shares of buffalo wild wings posting beat estimates as an extra week. i was wondering why. an extra week of big sporting events to entice more customers to visit its restaurants. they sell lots of beer. they have every game on in most of those places. and western union reported a 20% fall in quarterly profit. the face of increasing competition and higher regulatory expenses. those shares dropped in after hours trading. and online photo shares service shutter fly forecast current quarter results below analyst estimates. and the shares dropped on the news. you can see there. dreamworks reported results ahead of estimates helped by a strong pay tv showing of lines of the guardians. let's check on markets yesterday. great new highs and continuing today. qe is a beautiful thing. the s&p is closing in on 1800. >> wow. >> closing in on 1800. let's check out the oil pictures. >> does it bother you that on the "wall street journal" they won't butt the s&p. they put just the dow and the nasdaq across the top. >> and the people at s&p decide what's in the dow now, right? let's look at the ten-year. 2.49. 2.49, below 2.5 again. dollar, we still need some work here on that. euro, 1.3761. finally, gold we didn't really do that story yesterday, but some central banks aren't nearly as positive on gold as -- >> i think russia sold some and it had been responsible for something like 30% of the gold that central banks bought since 2010. so a turn around. >> let us at this point get to the global markets report where ross westgate is standing by in london. we're in that weird week where we broadcast "squawk box" at 4:00 a.m. over here. some other version of "squawk box," kind of a knockoff. but because of some daylight savings time -- something that doesn't work over where you are or something. >> no, we moved our clocks a week earlier than you have. we're now back on gmt here in london as opposed to our british summertime. so there's only four hours left between us. >> why do you do that? you pathetic types over there, you want to be first at something and this is the last bastian of -- >> that's what's happening. we've moved our clocks before you guys did. >> so what time is it there now? is it a four-hour difference? >> it's a four-hour difference. >> normally it's five. >> so if anybody is flying, you have to work that out. >> okay. >> yeah, we're closer. this is nice. it's knight nice to foal closer. >> and i like the spining stuffer now, right, ross? they did the eavesdropping and gave it to us and then they got mad at us for letting it out that we had it, i guess. i don't know. this story, i'm losing interest quick my, ross. i'm sorry. >> yeah. it's already moved on over here. we've so the stopped worrying about that. >> okay. >> anyway, so we've sort of moved on. we are on equities, joe, ahead of the u.s. open today. nearly 7 to 3 on the dow jones stoxx 600. two hours into the session here, and this is where we currently stand with the ftse. it was up 49 points yesterday. just about. up another 33 today. xetra dax is up 0.3%. employment data, we did see an increase in level of unemployment. the ibex up 0.8%. spain existed recession today. not by much, but it doesn't matter. it was in the positive. we haven't been in recession in spain. a number of stocks that we're focused on today. let's kick off with volkswagen, europe's biggest automaker up 4% today. q3 operating profit, 2.78el euros. porsche and audi sales doing particularly well and doing very well in north america. there are some, though, that suggest its marks a decline in sales at the more mass market brand. they also had a record operating profit of 11.5 billion euros and they say we're going to keep 230e6ing on our rear-end targets given the extremely difficult economic environment. the uk bank this morning, they are facing a 50 million pound uk regulators for failing to disclosure of its capital rate in qatar. they've confirmed that it's involved in another investigation as to whether there was any rigging of the currency markets, as well. but on the underlying basis -- i'm sorry, big jump in pretax profit, investors say up on the currency investigation is going to start wide bing. they're now launching their investigation themselves into what may or may not have gone on. quite how you read currency markets, i'm not sure. the flows are enormous. back to you guys. >> okay, ross, thank you. ross westgate. we will -- we won't see him again, will we? >> not this mortgage. we'll see him tomorrow morning. we did mention earlier, health care is going to away story today. secretary sa beale why testifying on capitol hill. and president obama speaking in boston. another story we'll be focused on this morning, the obama administration appears to have passed up offers for amazon and microsoft to help fix the government's healthcare.gov website b. an october 7th inquiry from amazon subsidiaries. in the meantime, microsoft contacted hhs and the white house with offers of technical expertise and assistance, but the company has not provided any such services at least at this point. coming up, we're going to do reviews of our own. we have reviews of apple's new ipad. >> you have it? >> i don't have it. i've seen it. >> do you guys have air? >> it's pretty amazing. >> we have it coming up in the next segment. >> it seems like all minor things to me. >> it's a little lighter, a lot monster. >> 3-d games are -- >> you want them better or -- >> no. it's expensive. we're going to talk about the sugary drink tax debate. also, in sports news, the boston red sox, can win the world series tonight at fenway if the cardinals win. game seven, that's going to be in boston. >> if they win in boston, it will be the first time since woodrow wilson. 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(vo) meee-ow, business pro. meee-ow. go national. go like a pro. after singapore airline stops service between singapore and new york, which airline will have the longest flight with no stops? qantas airways with 8600 mile flight between sydney and dallas. time now for the executive edge. this is our daily segment focused on giving business leaders a leg up. almost every major insurance has a review of the new apple ipad air today. and reviews seem to be positive across the board, even though it is priced higher than many competitors. what mossberg calls the ipad air the best tablet he's ever used. he said if you have to pick it, if you can afford it, this is the tablet he would buy. >> everything seems to will have the tablet. the one thing that i did play with -- you know, when you sit and hold a heavy ipad for a while, you can feel it. this does feel different. >> one point. one pointed. i would carry it in my purse. >> you like the mini, right? >> i like the mini, but i have been thinking i'd like a bigger screen because you can do a lot more with it. >> joe? >> you know. >> you have nothing to say? >> i chart things up a lot. i'm anal there. other people let it go. i'm usually close to -- you like to have the battery close to 100% at all times? >> yeah. usually i'm sitting down. i don't really notice the weight. >> i think david did say it's not revolutionary. these are changes that are gradual and good. if you haven't gotten one, it's good. he said you don't need to update every year, but maybe every other year. >> if you have the first one -- >> a few i wish think wouldn't. >> the controls over so they can't go to places. >> you're wife is putting some on you, isn't he? >> sorry. maybe they should be, but they're not. but they're not. >> let me tell you guys about the next story. san francisco may be the latest u.s. city to try to conserve the tax on those beverages. they've asked voters to impose in 2014 to impose a 2 cents an ounce tax on soda and other drinks with added sugar. to this point, we haven't seen many of these through and it's already sailed in two california cities. >> i can't believe el monte was so -- it's kind of a working class neighborhood. they have a lot of factories. san francisco, i understand. >> right. >> you can drink as much as you want to. >> compared to banning it, i guess it's incrementally, it's not quite as bad. >> and it's being put to a vote. >> and the do gooders love the idea. you get to cents and you get $30 million. with that, you pay for -- some government agency is going to doll out the 30 million for pe programs that are probably 90 cents falls through the cracks on the way they spend it. using tax policy to try and change behavior typically there's people that like it and -- >> this behavior is changing, anyway. you see how water is overtaking cabbon ated beverages, anyway. >> becky, i checked my fridge last night. >> do you have any soda? >> no. i had some polyo with a january expiration date. >> did you? did you look at the upc? i was shocked. and you know how i found that out? so people that don't know, there's a recall on certainly -- >> we were inspecting this string cheese because it's supposed to change color. but i had just bought some and it was january and this was october to february you're supposed to check it out. it spoils quicker and it says don't eat it. 700,000 cases are getting recalled. kraft. >> kraft? >> is it kraft or mondalese. >> oh, no, i bet it's kraft because that's the old school grocery cart. >> it did say kraift. >> but i saw your tweet and i go -- >> somebody asked me this after i tweeted this last night. i tweeted a picture because i found it in my fridge but they asked, was it an unopened pack. we haven't eating any. are you? >> yeah. i had eaten -- you know what? i'm cheap. until it looks -- >> ahh. >> you drink milk after the expiration? >> no. >> there are people who think a day or two after -- >> no, no. i just wait until it's cheap. >> or yogurt, one of the two. >> can't you take it back to the super market and get -- if it's recalled, can't you take it back? >> that's why i sent the picture to see if i could get any money back, but i threw it out immediately is no one would eat it. >> we're going to take it out. >> i was more concerned with getting my $4 back. let's talk about big coin. it's trying to go mainstream. an atm opened in a coffee shop this week. the kiosk looks like a normal atm, but it has hand and bar code scanners so users can swap their bitcoins for cash. any buyers at the table? >> i don't get this. it doesn't spit out bit coins in terms of -- it doesn't send out a receipt. but apparently you go on and do whatever you're doing and it transfers the cash to your iphone or your android or whatever. >> so weird. >> but i feel like we're behind the times, guys. >> they grew up and now need something else to do. >> but now the company that did this thinks that they're making thousands of atm machines across the country. i don't know. maybe this becomes something. >> tweet us about this and tell us what you think. >> it will take me so long. >> the twins at the moment are laughing all the way to the bank. >> we better get to singulairty. >> i'll be cyborg before i -- >> i am still a blackberry user, so let us know. >> darth showed you that picture. ten reasons i hate blackberrys. anyway, he has a picture -- he drove a steak through his blackberry. >> two of them. one is from verizon and one is from at&t. >> do you see what he brought me? sflo. >> do you know what that is inspect. >> it's a dog. >> is it coming at you or leaving? >> i'm not sure. >> i don't know, either. i wasn't sure what he tried to say. and i named this. >> what did you make it? >> al gourd. and you know where i keep it? >> no. in a squawk box. >> thank you. >> you're not laughing. your crazy eyebrows are just twitching. >> you tried this on me before. >> that's why. >> you know why? >> i want to give you a heads up. whenever i talk about anything like that, i'm going to give you a heads up from now on. we have a governor from kentucky on today. b-e-s-h-e-a-r. >> beshear. >> martin beshear. when we come back, we're going to talk about the fed and what to expect from this afternoon's announcement. first, though, as we head to a break, take a look at yesterday's winners & losers. when we made our commitment to the gulf, bp had two big goals: help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, where experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. good morning. welcome back to "squawk box" here on cnbc. making headlines, china's money market rates spiked to a four-month high today. yesterday, the country's central bank injected funds into the market to ease worries that it was planning a significantly tighten credit conditions. a seven-day repo rate is viewed as a gauge of confidence to lend in the interbank markets. and it rose to around 5.5% and that was up from 64 basis points from the previous day. analysts say the jump in rates was seasonal in nature and they're not too concerned about a repeat of events that happened back in june when a surge fueled fears of a credit crunch in that country. both the dow and the s&p 500 rallied ahead of record highs ahead of today's fed decision. joining us now is brian belsky. anthony chan who is chief economist at chase private clients. guys, let me ask you this first up. brian, why don't we start with you. >> is it all about the fed or does anything else matter? >> it's all about the fed.. we're not really following fundamentals. we're continuing on with what we like to call counter intuitive strength where the economy is not too hot, not too cold, and this is going to carry us into volatility. stocks are going higher. and don't discount the eks forcing the balance funds and allocation model toes start buying equities. and that will be yet another push to the upside for the u.s. equity market. >> anthony, you've been bullish for a long time on stocks. was part of it because you thought the fed would be in it at this point or did you think we would be doing better on our own without the fed standing in? >> well, i think it's a combination of both, becky. the federal reserve has been very supportive. we saw that with a delay of tapering and we also see that the fundamentals are gradually improving. despite all the bumps in the road that we've seen, the economy is getting better. we'll grow a little less than 2% this year. next year we'll exceed 2%. and we know the fed is not going to move over the near term. right now, the two fomc meetings that have a news conference in 2014 occur in march and in june and those are the months that are in place. so between now and then, we continue to get more and more support for the federal reserve. and that really puts a floor on how much we can grow. >> do you agree with brian's thought that we're really in a difficult position because the ceos and cfos are not all that optimistic about what they see and so they, in turn, won't spend which means we're not going to see new jobs? >> you are seeing some cautiousness, specifically when you look at capital spending. there's been some hesitation there. but i think as the next couple of months proceed and we continue to see a gradual improvement in economic growth, you will see capital spending picking up. already you're starting to see some money coming off the sidelines to some extent as this market picks up. believe it or not, don't underestimate the wealth effect that as the equity market continues to get better, even consumer confidence picks up. we know that consumer confidence drops sharply during the government shutdown. but guess what, becky? we've seen it come back. we're still down a little bit from the preshutdown days. but we've made up almost all of that and that should be reflected in higher spending. and that will stimulate ceos to increase production and to some extent increase hiring as we go into 2014. >> brian, earlier this week we had peter fisher here as a guest. and he pointed out that at this point the market is not expecting the fed to pull back on qe anytime soon. that the real surprise to the markets would be if the fed were to signal things like tapering could come sooner rather than later. and i just wonder what you think that would do to the market at this point. >> well, especially considering that most of the near term money or the latest money has really been driven by this fed announcement, you know, we contend that until we start to see actually a reacceleration of job growth and a reacceleration of the economy, the fed really can't do anything. it's kind of backed itself into a corner to some degree. but the real trend longer term is that as ansette, the united states of america with respect to equities is still the most consistent stable asset in the world. and the two major trends that have so be part of continuing on this bull market is from a theme attic basis, number one, private wealth management is the rotation outs of fixed income into other assets begins. number two, this whole notion of cash expenditures really will drive earnings and more importantly revenue growth heading into the latter half of 2014 and beyond. >> all right. brian, anthony, guys, thank you both for being with us this morning. >> pleasure. coming up, we're going to talk about facebook, which is set to post quarterly results after the bell. the stock has been rising, but will investors still like it after today? 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[ male announcer ] and our priority is you. go to usps.com® and try it today. welcome back, everybody. it's time for your "squawk box" planner. on the earnings front, quarterly results from comcast and general motors before the bell. this afternoon, we have facebook, sri wa, kraft foods and starbucks. first on cnbc at 7:50 eastern time, daniel ammann, jrt motors cfo. the fed will wrap up day two of a policy meeting. and kathleen sebelius will be testifying at 9:00 eastern time. she's expected to be grilled about the problems with healthcare.gov and all the cancellation notices that have been going out to individuals who had previously been told that they could keep their plans. you can catch the testimony on "squawk on the street." andrew, back over to you. >> we are going to talk facebook post results after the bell today. the social networking giant has been on a tear this year and the street has high hopes for the firm's third quarter. joining us now with a preview for all that, scott kessler. good morning to you, scott. >> good morning, andrew. >> walk us real quick through what your expectation is before we get into some of the details. >> yeah, sure. so basically we're looking fought growth of about 45%. substantial, but indicating deceleration from the priority quarter. that's actually below where the street is. in addition, we're looking for earnings around 12 cents a share. now, we include stock based combination in our estimate and we look at that as maybe comparable to where the street is at at 19 cents a share. >> and the thing that i imagine the markets are all going to be looking at is mobile. >> yeah, you know, obviously people are aware of the trend in mobile where it seems like every quarter it's gotten not just bigger, but better in a lot of ways. last quarter, 41% of advertising revenues were generated from mobile. frankly, i think a lot of people are looking for a number with a five in front of it in this quarter. >> did you buy this? i want to read you something. facebook hasn't delivered on its promise and, in fact, it's become reliant on the traditional advertising models it once lampooned. >> yeah, i read that from the forester report that was released earlier this week. it was pretty damming when you consider the fact that this was a company that came out and said facebook ranked not just low, but pretty much the lowest among the number of outlets for marketing that cmos have available to them when it comes to -- i think two different criteria, right? one was basically what business value you have from the relationship and then also how good a partner from a marketing perspective is facebook. and so i read through that. to be honest with you, look, they spend a lot of time working on these relationships and talking to everyone about the value that they provide. honestly, the proof is in the pudding. people probably wouldn't be spending money on facebook if they weren't get something type of return, right? >> competitive landscape. we're going to see, of course, the ipo for twitter in the next week. and they just added images. in fact, joe was playing with the screen this morning. you can see the images which should allow more advertising. how much competition do you think that represents to twitter? is that a true competitive threat -- rather to facebook? >> i don't think there's any question that this is a very kind of dynamic area where there are always changes. twitter is very strong in mobile. they've been strong in mobile for a long time. they detailed a much higher percentage of revenues coming from mobile than facebook. in addition, you look at the international user base. it's substantial, as well. the question, of course, is is there enough room for everyone in this growing market? and i would argue there really is. so even though it's competitive, i think a lot of companies can do well, even though it seems like the expectations for facebook going into the q3 print is substantial. >> john, real quick, do you have a hold on this stock? >> we do have a hold recommendation on facebook here. >> what's the price expectation in the next 12 months for you? >> so right now we have a 12-month target price of $44. and the reality here is simply that the stock has doubled over the last three months. so people need to be mindful of that going into this afternoon. >> okay. scott, thanks for joining us this morning. >> thanks a lot, andrew. >> appreciate it. coming up, lance armstrong, a doping scandal, a wall street firm and a cover up. is one of these things not like the owner one? maybe, maybe not. and the investigation, coming up next. the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ so there i was again, explaining my moderate to severe chronic plaque psoriasis to another new stylist. it was a total embarrassment. and not the kind of attention i wanted. so i had a serious talk with my dermatologist about my treatment options. this time, she prescribed humira-adalimumab. humira helps to clear the surface of my skin by actually working inside my body. in clinical trials, most adults with moderate to severe plaque psoriasis saw 75% skin clearance. and the majority of people were clear or almost clear in just 4 months. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. make the most of every moment. ask your dermatologist about humira, today. clearer skin is possible. welcome back to "squawk box." our next guest was responsible for uncovering one of the biggest sports scandals ever. the lance armstrong doping cover up. their new book, "wheelmen" lance armstrong, the tour de france, and the greatest sports consxeersty ever." good morning, guys. >> good morning. thanks for having us. >> thank you. congratulations on the book. my question is really actually about the money. i want to follow the money. the. tom was one of the great big backers of lance armstrong. to this day i know he said he knew nothing about this. did tom who had been backing this guy from day one know what was going on? >> we don't have consequential proof that tom actually had intimate first hand knowledge of the doping on the team, but one of the reasons we were so passionate about the story, there were several around him, it wasn't just lance armstrong. so many people looked the other way or did have direct knowledge and didn't allow the truth to come out or allow the scandal to be uncovered. >> here's my question. i don't understand. i assume when you follow the money, you have to get to other people. it seems nobody else has been implicated in the meaningful way from the money side. i assume to keep the conspiracy going on you not only looked the other way but had to know. >> the theme of our book is the willful blindness. you'd be amazed of people that didn't ask lance armstrong if these allegations were true. there were allegations going back to 1999. you have to have the willful blindness to continue to support him in the face of these allegations. it's easy for me to say that now because i worked with reid on writing this book. we stepped back and looked at all of this. people were actively defending armstrong. >> we wanted to believe it. >> when was the guy on 60 minutes, the earnest guy that was so clear he was telling the truth, when was you that interview? >> tyler hamilton about a year after we broke the story and floyd came forward -- >> there was some other guy. >> you're talking about travis tiger from the u.s. doping agency. >> i knew all along. it was so obvious. >> i didn't want to believe you. >> that's what i'm saying. what are the years tom was doing that? he had to know. you're just naive. >> tom was one of the early pioneers in american cycling. he left the skiing, involved in olympic skiing, he started the team to eventually recruit armstrong when he was 18 years old. he was involved from the beginning. there are some scenes in the book where you see that tom was around it. we don't have that smoking gun. >> what about the sponsors? i want to know about nike and other companies behind this company -- they turned a blind eye. do you think they had people inside that actually knew. >> they actively supported armstrong. you remember nike ads where armstrong said what am i on? busting my -- well any way. >> it's cable you can say it. >> we luook aded at the busines. there's no way they were not aware of allegations armstrong faced. there's no way they were not aware of the fact that he was being accused of doping. it's their responsibility to sort of raise this with the athlete they're sponsoring and throwing millions and millions of at. that's one of the lessons from our book is that it's kind of sad to see how few people ask questions. >> the cancer story was a huge enabling factor in all of this too because normal people would say, wait a second, there's no way this guy would do that after he went through this and lie to us about it. it's like sociopathic. >> that became one of armstrong's best arguments to say he was clean. he'd say wait a minute, i had cancer and survived cancer. >> which makes it more disgusti disgusting. >> was he on it before the cancer. >> there's a question in the book if taking the human growth hormone made the cancer worse. >> i was young at the time he started doing this. there was the the argument he was successful at what he did because of the cancer. remember that? >> there may be truth to that. the fact is his body type changed after cancer. he became skinnier. he was able to rebuild his muscles specifically for cycling. that actually may of helped him. >> where does all this go for lance next? are we going to see him reemerge in other places? who else gets implicated if they do? >> the biggest is the $120 million lawsuit the u.s. department of justice joined. they're saying he and his team defrauded the united states postal service. that was his big sponsor. >> that's a civil case but potentially triple damages. triple $40 million the postal service paid. back to your earlier point at the sponsors what they knew, armstrong's big defense, his lawyer said the u.s. postal service should have known he was doping zblcht that's ridiculous. >> read the book. go out and get it. fascinating story. >> thank you for having us. >> "squawk box" has its own with -- >> we have our own doping story? >> lance armstrong on "squawk box." >> that's true. lance armstrong came onto do a self serving interview. and the unmitigated gall to ask him about doping, weeks later ran into him at a bar. lance armstrong came over and a costed him and wanted to get into it for asking that question. >> it was an intimidation thing. >> that was the height of it. >> can you imagine? you've got to be -- few screws loose. stick around. 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(vo) meee-ow, business pro. meee-ow. go national. go like a pro. obama care and your investments. how companies should be handling the transition and what investors can take away. earning central hits the street. quarterly results from gm and the mother ship come cast ready to report. we have the numbers and market reaction. a big budget meeting in washington with a focus on a long term solution. budget committee member and republican policy committee chair lang ford is our second guest. the second hour of "squawk box" starts right now. good wednesday morning. welcome to "squawk box" here on nbc. cofounder of home depot, former stock exchange director. plenty to talk about with ken. never wanted to hold back. we'll see what he has to say today. before we do, that let's get a check on the markets. dow opens 50 points higher, s&p close to 6 higher. obama care front and center once again on capitol hill. kathleen sebelius faces questions over the glitches that have occurred with the launch of the healthcare.gov website. president barack obama will defend the health care reform law taking the pitch to boston where the overhaul bill was signed in 2006. and now panasonic expanded the 2011 deal on auto batteries. panasonic will supply 2 billion batteries over the next four years. it will be used in the current model s as well as the model x scheduled at the end of the next year. we're a few days from the kodak come back. once a dow component. we'll see the stock return to the exchange friday. kodak shares have been trading over the counter since it emerged in bankruptcy back in december. >> panasonic was a name of the past. that was the first receiver stereo. then sony replaced them. poor sony. >> panasonic has been doing batteries. >> when you get kodak and obama care. that's depressing to start the morning. >> not everyone is depressed. >> they can't be happy it is as it is. >> you want people to know what some people have known all along. that's the only thing. let's get come cast earnings. >> this is the a parent company. company came in with profit 65 cents a share, 4 cents better than expected on the street. revenue 16.15 billion comparing to 16.62 billion. when you look at the operating cash flow numbers. free cash flow rose to a record during the quarter $2 billion. street estimated 1 bt $7 billion for that number. up 30%. total consolidated cash flow up 10.5% in third quarter to $5.4 billion excluding olympics and termination of small pension plan. operating cash flow up 6.4%. these are numbers looked at closely. if you go through nbc universal cash flow up 22.4% if you excluded the olympics. even without increased 9.6%. >> at&t and verizon had combined 30,000. that's good business. business services up 26.4% in quarters. then you've got nbc stuff too. nbc revenue increase 3.9. if you take out the olympics for everything. that's a huge piece. otherwise down 40% on the revenue side if you looked a that the. that's apples and oranges. the olympics produces such a boost when it happens. >> cable net work operating cash flow up 5.4%. operating cash flow at theme parks record up to 343 million. film addition 117 million to 183. >> you're talking broadcast revenue right? >> not nbc. you have to remove the one off. it makes no sense to compare this quarter to a year ago because you had the olympics. >> theme parks to a record because of higher guest attendance and higher per capita spending. >> theme parks are maiamazing. i'm not sure come cast wanted the theme parks. >> the subsequent transaction was ten times what black stone got for it or whatever. the all time high on stocks 48.35. at this point we're 48.50 now the bid. 49 is the ask on the a on cmcsa. i don't know why. i'm not going to ask. speaking of technical glitches and sticker shock. i'm ready to start calling it the affordable care act because of the irony of that name what's going to happen for us that gets insurance through our employers? that's the plan you're supposed to be able to keep. senior correspondent scott con here. lisa myers broke the story for nbc. we said, the thing that i have been worried about all along when the president said if you like your plan, you can keep it. that was disingenuous because so many employers would say we'll let the government handle it. indirectly if you like your plan, your employer might say that. we weren't talking about this. this is an individual market. that's a small market. this other story could end up being a bigger story. >> and plans have never been static in that way where the plan will be the same year. they're going to keep changing. have you seen this yet? this is our nbc universal open enrollment guide that just came out. it does pretty much say first thing off the bat, costs are rising. we're using more experience and all that. one other reason, quote, funded health care changes demands implement changes to contribute to the cost of our plans. some of the costs are way up double digits. so wait the affordable care act is making my premiums go up? how is that? this is a ceo of one of the providers. >> it will past over a billion to taxes and fees associated with the affordable care act that need to go into pricing. those create an unstable market causing us to rethink fundamenta fundamentals. >> it comes down to $45 a piece. multiple experts we've spokeen with said yes, your health care premium will probably go up 5 to 7%. we should point out that is if you have health insurance through your employer in the last decade your contribution is up 89%. so a 5% increase if they can hold it to that would be below average. experts warn if problems persist in the obama care exchanges you could feel it at open enrollment time next year. >> the carriers will have to make up that margin somewhere. this could eventually lead to increased prices in the non exchange marketplace as carriers are trying to maintain earnings to remain viable. >> other things you're likely to see at open enrollment time, more plans with high deductibles and more incentive for wellness programs and incentives. all of that has been going on for a while. it predates obama care. we're seeing more of the same though. >> by the way it won't happen. we're living longer. longer we live, more health care we need. insurance is a simple concept. you put enough people in a pool, the money comes in. you hope you raise enough money to more than match what you pay out. it's that simple. there's a lot of misinformation. home depot was headlined two weeks ago they're ended health insurance for part timers. that's not so. home depot will offer employees participation at a less grand scale of the health insurance plan. home depot self insures. the affordable care act happen dates that it is illegal for us to offer health care to part time employees anymore. so we didn't end it. the government ended it. our people now are many of whom come to work to get the insurance part time. that's gone. so rates will have to go up because thank god we're living longer. that's not going to change unless of course we want to die southeaste sooner. >> what about the people bringing into the pool? we have children under 26 on their parent's policies that your employer has to cover. >> here are the contradictions of the plan. the best people to insure who command the less need are young people. why? because we're healthier, susceptible to disease and so forth. those kids can wait for a pre-existing condition and say now i want insurance. the risk to the insurance company goes up ex pe deshlly because the kid is coming in unhealthy not healthy. >> isn't the kid coming in regardless? >> no because until he's 26 he goes on his parents plan. >> but he wasn't getting coverage before. >> he can pay the penalty or not commit at all. the penalty is not enough to generate the heavy yrevenues of people. insurance is a fairly simple conce concept. spreading and sharing risks. leaving enough margin. all do respect to the gentleman from retina, margin is not the word. the word is revenue to compensate for the added cost that go up in the pool of people. this is all it is. the affordable care act in my opinion is flawed because it defies the whole concept of what insurance is. you're not going to bring 35 million more people into the pool for care and say we're going to do it cheaper. >> what do you do? what's the alternative? what i would have done in if i was a republican in congress, i would have let it happen. ironically the government reopens in a few days later we find out we can't run this thing. there's a lesson in history. when the new york stock exchange -- remember y 2k all ringing our hands at the clock? remember under the leadership of dick grass sew. we had dry run after dry run. people came in including mr. grasso. january 1, 2000 that system was go. kathleen sebelius, that's what she should have been doing. what do we want cabinet members to do? get appointed and go out and make speeches. >> it's here. now what do we do with it? the first problem attacks demographics and looks -- that has nothing to do with health care.gov and problems with the website. hopefully they fix the website at some point. how do we attack the bigger problem of making this affordable? >> don't confuse the word affordable with inevitable cost increases. your point is well made. costs will continue to go up for a good reason. we're living longer. >> right. >> we're more active. i'm 78 years old. i got the bed last night at 11:00, in the gym this morning at 4:30. i don't know what when the game is going to stop. i'm not an exception. older people are living healthier lives and commending more in the way of health care. >> what do you do about people who are under the previous system going bankrupt because they don't have insurance and live longer, get will, have to coverage? this is what this is supposed to address. what do you do about that? >> why not create a law that addresses specifically that pool? what you've done instead is to discome bob late this whole thing. >> republicans would have been by partisan. that's the whole problem. change 20% of the economy without a single republican vote. this is what you get. >> i don't want to speak for obama care -- >> you always have. >> no. i'm just saying the idea is supposed to be as you said bring more people into the pool. they may not be working -- >> let me tell you a myth. there's no place in new york city, no health care place if you go in with a bullet wound or car accident they say show me your insurance card or you can't come in. this is non sense. >> then you and i pay for it. >> that's fine. >> look, we're going to take a quick break. this conversation is not going to end. it will probably go on the next two hours. in the meantime, universal health care system ceo on the effects of the obama care system. we just heard from mother ship come cast. we'll have the numbers and what it means for investors. that leads to the first interview with the cfo. "squawk box" returns right after this. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. . welcome back. we're continuing the conversation about the affordable care act. joining us now to add to the conversation is allen miller, ceo of universal health services that manages surgical hospitals. thank you for joining us. i'm not sure if you heard our conversation before the break. we've been trying to figure out what the affordable care act means for hospitals. tell us what's been happening to this point and what ultimately it will mean. >> first i want to mention we released earnings last night and had a solid quarter. we have raised our guidance. we're doing fine. i think that what should be happening is a delay and then each of the provisions should be fixed. i think they've got to do it on a situation where both parties contribute. it can be fixed. both parties have to contribute to that. >> what has to be fixed in particular? >> well for example, trying to get young people to buy insurance when they're indestructible. there's a $95 penalty when insurance will cost you $10,000. it doesn't make sense. you've got to fix that arithmetic. people are not going to spend 10 when for $95 they can avoid having to pay that. >> isn't that scheduled to go up? >> it is but you're not going to get people at the beginning. when it goes up, it's a few hundred. it doesn't make sense from the out set. any way. >> overall is obama care the affordable care act, good or bad for hospitals? we were talking about -- ken mentioned when people come into the hospital you end up with bad debts you have to cover. >> the good part about the law is it's going to extend coverage to 30 million people. that's very good for the people. it's good for america. in addition, there's another 30 million people that have not been covered in small business policies. they didn't have to be covered. now they'll have to be according to the law. if you add 30 and 30, that's 60 million people that may not have had coverage before. that's a very solid thing for the hospital industry and good for america. >> you still have the situation we were talking about where the health care cost curve has not been bent to this point. ken was talking about this too. the question becomes how do you do that and can you? >> you can. i think you have to sit down and go over each provision. i'm referring back to the law again. you've got to go over each provision. 80% of people in america liked our health care. 20% or something like that had problems. this far reaching law covering 17 or 18% of the economy tried to do something on a broad, broad scale that i think was unnecessary. i'd like to see torte reform, policies sold across state lines. there's a lot of ways to fix this. i don't think it's been gone about the right way. >> ken, you were just talking abtha about this too. what would you do? >> alan raises pay good point. unless you bring the lawyers into the mix, don't forget 60 million people that are now available -- every time something comes into your hospital, you've got a potential lawsuit. prayfully you don't. people don't come to the hospital and can't sue for what the hospital might or might not have done wrong. you can't measure it. the bigger part of reform is not settlements or legal cost. it's the defensive medicine practiced. >> that's exactly right. our doctors prescribe all these tests. they say i know exactly what the condition is but boy am i going to cover my butt. i'm going to have a document to say i did this, this, this. >> that's right. doctors are pet ri fied of lawsuits. a doctor can do one thing. they don't do a lot of different things. they practice medicine. if they are sued and lose their license, that's the end of their livelihood. the estimates are $2 billion worth of tests that are unnecessary. who knows the number. it's enormous. >> that's a mantra of progressive about reform that is it deminute mouse right? >> people have low numbers. ken is right about the overall cost. >> on the left, people say torte reform is not -- basically that's the point the left always makes. they say it's relative basis. >> can we have a commercial break. i want to show you this in the times from a year ago today. ironically a year ago today at this time, roughly 8:00 in the morning i got a call and was told nyu medical center might not open two years and possibly not again. we opened it eight weeks and three days. here's this ad. okay. what does it say, quality and safety number one in america. >> ken is with us the rest of the program. alan, thank you. "squawk box" will be right back. opportunities aren't always 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. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, where experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. on the looming budget battle. "squawk box" will be back after a quick break. a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ that's how ameriprise puts more within reach. the world is changing faster than ever, creating new opportunities for those who stand ready to seize them. in a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, our flexible, collaborative approach helps forward-looking companies not only run better, but run different... to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because now more than ever, the future belongs to those who challenge the present. welcome back to "squawk box" in the headlines this morning, key economic reports coming out this morning. 8:15 eastern time we're going to get the october report on private sector jobs. economists looking for 150,000 new jobs during the month. 8:30 eastern time, consumer price index report coming out. economists expect the headline number and food and energy reading to rise for the month. chrysler reporting third quarter earnings $464 million up 22% from a year ago. >> gm earns hit the wire. better than expected numbers coming from gm. they beat the street 96 cents per share. street expecting 94 cents. heavy revenue you lighter. when you look at the different divisions around the world the engine continues to be north america. gm made $2.2 billion particular interest gm operations in europe. they have cot losses going from half billion last year in the third quarter down to a loss $200 million this quarter. 96 cents two cents above street estimate. talking with cfo dan in 15 minutes. we'll take a look at numbers and the outlook for gm heading to the fourth kwquarter. back to you. >> we'll look forward to that. let's get to our guest host ken. you don't run a mutual fund, but your own personal net worth could be a mutual fund. >> why am i still working? >> i don't know how many yachts you can water ski behind. >> haven't got my first one. >> i'm not discouraging you. i'm an admirer of the achievements you made. >> i would be water skiing if i were you. >> i can't swim. i barely can swim. >> the entire country needs to go back to achieving not receiving. now you're investing in things. >> yes. you like slumbers? >> the activity in oils ai ration, the gas plan in the united states. do you realize this country will be energy self dependant? around the world we're refining oil but it's becoming more difficult to find oil. there's a playing off the coast of brazil. they've got to go through soil. that creates challenges. this is probably one of the best managed companies in the word. >> where you buying coal companies? >> yes. number one economies will come back. gm is doing better in europe, ford doing better in europe. slowly it will come back. will it be as robust as it was? i don't think so. you think coal is depressed because of the economy? >> there's been a lot of coal taken out of the industry. a lot of mines have been shut down. the reason i like coal stocks is the economics and also i like anr. they're in the gas play with a solid company called rice energy. very successful people. they're going public now. i love the eatton corporation. >> they make fabulous products. >> things we're going to need. >> i own a full service business. eaton axles never break down. they could give you a million mile warranty and wouldn't have to pay. they're a quality product. look at parker's numbers. it's 116 now. there's more to come. emerson is another one. >> emmerson electric another one. go down the list. the thing we're all going to have to deal with is sluggish revenue growth. that's going to be around a while. you look at general motors, they missed the revenue number. they made more money. why? because they're squeezing cost out. i'm excited if we ever get things going all at once, companies that have made themselves so efficient, the slightest increase in revenue will be a big impact on the bottom line. >> you like bill too? >> i like bill ford. >> bill ford, i admire as well. he had no ego. he got out of the way and put mulilly then. >> he made the deal for the $25 billion loan. >> the point is, as i said i woke up this morning positive and optimistic. don't dampen. >> i'm sorry. we've got problems. >> this is the media. when i came into this -- >> okay the house is not burning. good night. >> no the house is not burning. >> we're going to find problems here. bear with me. >> you like wells fargo? >> i love wells fargo and jp morgan. >> tell me about jp morgan and why you still love it? were you disa pointed jamie is in a position he sort of has to say thank you, sir, have another. go ahead and do the 13 billion because he can't fight it. it sets a bad precedent. >> of course it sets bad precedent. the thing with the loss. it's like the kid strikes out four times. the father says you're not getting supper tonight because you didn't get a hit. they took a loss. they were punished for taking the risk. in spite of that loss -- he wrote a good piece. >> don't look at me. i read it. i was proud. >> you made the case jamie dimon should not. >> i'm proud to know you. you nailed it. the fact of the matter, jamie dimon is arguably the best ceo across all companies. he proved it. when? 2008. he was able, strong enough that the government came to him and pleaded take bear sterns. >> take my wife. >> no. >> by the way, best part about jamie, he's a good human being. >> we're going to agree if he's not the best manager, one of the best out there. if one of the best managers out there could have the the problems the firm has had, there have been a number. forget about too big to fail. is there an argument to be made about too big to manage? meaning when you get to the leverage issue you decide if the best guy in the world can't do it or at least run into trouble, anybody lesser will have lots of problems. >> we went public, home depot, everybody said you can do it. you've got four stores in atlanta, couple in phoenix and cup untilouple in florida. we have 2300 stores today in every state, canada and mexico. guess what, frank blake is proving you can run it. it gives you capacity you never knew you could handle. >> other than the litigation expense cutting earnings in half or whatever it is, if you take out bear sterns and wa hoo, where has it been mismanaged just the whale? >> throw in whale. i say little. i don't think it's a huge issue. >> however there is government activism. >> jamie made the addition to say yes to wa moo and bear sterns. he didn't have time to do it. >> over the weekend. >> he did not insist they take away liabilities. >> if i could relive history there's a lot of things i would have done different. i'm sure if jamie knew this would have been the consequence, he would have said i'm not going any place. i want a bullet proof clause. now the government would have figured a way to get jamie dimon after 2008. the brunt was before 2008. jamie is being punished believe outer not for not doing what the rest of them did. if jamie wasn't strong, they wouldn't have gone him and said buy these two guys. >> do you think there's something he could have done to prevented the number we're talking about. >> i play golf to guys that all talk about how he postered himself with a sign that said hit me. i don't agree with. that jamie is blunt, honest, and fells its as it is. when jamie went down there and said this is dumb. okay, jamie was just being jamie. thank god he is jamie. i've got serious -- he won't think it's serious. i've got serious money invested in that bank. >> i just said you were your own mutual fund. >> i'm not my own mutual fund. positive, stanley and jeff canada are doing now about generational theft. thank god for those two. if we turn those kids on to what's going on, we're going to have -- >> the guy that stan is always siting that totalled up liabilities. it's the work he always sites. >> the fact -- 200 billion or -- >> he's talking about the generational theft. >> i'm a customer of jp morgan. >> how much we owe versus how much -- >> my check is always clear. there's no bounced checks. what i'm saying is jamie has done -- >> i don't believe your checks could bounce. >> jp morgan board deserves a lot of credit. they're getting a lot heat. >> we've got ken with us the rest of the program. up next we turn focus to looming budget battle. james lang ford up next. and then the first interview with cfo of general motors. 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"squawk box" will be right back after a quick break. [ female announcer ] what if the next big thing, isn't a thing at all? it's lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. ♪ it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. we're going to wake the world up. and watch, with eyes wide, as it gets to work. cisco. tomorrow starts here. time ago. j phil joins us now. >> we want to bring in the cfo dan ammann. you beat the street two cents above what they were expecting. characterize the third quarter. people were concerned about plateauing globely. >> it was a strong quarter for the company overall. we're in the middle of a great new launch activity bringing new vehicles in the marketplace very well received by customers ch you see the market share up, revenue up, cash flow up. strong quarter across the board. >> you had a profit margin 6.8% overall. profit 9.3%. i can't remember the last time gm had a profit margin that high. are you worried at all about incentives and what you're seeing in the marketplace out there now? >> we're looking to remain disciplined in the marketplace. you've seen that in us many the past few months. benefit of bringing great new vehicles to the market it allows us to remain discipline from a pricing point of view. we're going to continue to take that approach in the coming quarters. >> they are edging higher for the entire industry correct? >> incentives edging slightly higher for the industry. again, our approach is remain disciplined, bring great products to market. that's the foundation for pricing discipline going forward. >> i know a big part of what you said, you want a fortress balance sheet. that's a lot of money people look at and say when do you deploy that in terms of a dividend or use that money in some other way? what's your sense in using that $26 billion? >> to reinvest in the business and bring to the market as we've been doing. priority one is reinvest in the business, two is maintain the balance sheet which we've been continuing to do through this quarter and priority three, generate cash to our shareholders. that's something we've done overtime. >> yurngs you'europe you've cut. >> we obviously have made good progress against that over the course of this year. notably the third quarter was the first in a couple of years we had year over year revenue increase in europe. that's an encouraging sign. we have a lot of vehicles we're introducing into that market. a lot of good for europe. >> congratulations on numbers. assuming revenue growth remains sluggish and every indication shows it is not for a while. how much further do you think you can go addressing costs and continuing to drive better margins by virtue of better cost? >> we have a relentless focus on fi efficiency in the company. we have good opportunity on that front. we've made a lot of progress in the last couple of years. we have a good amount of run way in front of us. use the scale to our advantage around the world. that's going to allow us to maintain profitability in whatever environment we have to deal with. >> so if your revenues bump along modestly up, we can still expect to see improvement at the bottom line particularly as you drive technology through your processes in general motors. is that a fair take away for me to have? >> that is a fair take away for you to have. >> congratulations. thank you. >> dan ammann, general motors cfo join us on a day the revenue beat the street, two cents better than the street. back to you. adp private payroll report, reaction from the company. a look at how unions handle the issue of obama care. the current president of the american federation for teachers joins us in the next hour. mine was earned orbiting the moon in 1971. afghanistan in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. so ally bank has a raise your rate cd that won't trap me in a rate. that's correct. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally. sometimes they just drop in. always obvious. 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. kentucky has been a bright spot for new health care enrollment. most new signees aren't buying. they're signing up for medicaid. we'll talk about the success and challenges of the health care law. hhs secretary kathleen se bellous under fire today. we're going to get adp private payrolls and index numbers as the third hour of "squawk box" starts right now. welcome back "squawk box" on cnbc. our guest host is ken langone and chairman cofounder of home depot. in our headline, president barack obama going to deliver a speech later today. a symbolic location for health care reform. annie joins us now from boston. i'm trying to put that together. why is that symbolic, i don't know? i'd do it at the mass general hospital maybe. >> this is where the first health care law in the nation was signed into law. behind me is where mitt romney in 2006 signed the bill into law. it was a republican governor, along side democratic leaders like a liberal ted kennedy that called the passage of the bill the work of his lifetime. the president expected to not only defend the affordable care act but draw parallels between the national law and the massachusetts law saying that initially in massachusetts enrollment came in dribs and drabs. as the deadline approached, enrollment picked up. by the deadline in ma massachusetts, 36,000 signed up. it is very popular here and considered a blueprint for the national law. of course when the law went into effect there were problems but nothing like compared to healthcare.gov, the problems happening now and absolutely besieging the president and his administration. >> i should have been able to figure that out. you're right. so it was romney care signed in the quincy market area. that's interesting. i like it. thank you. >> you didn't know, did you? >> i did not that was the exact location. i understood the state part, but didn't understand the location. >> so many things happen in boston that were first. this was a recent first. we don't need to go back. we don't need the freedom walk in boston. >> give romney credit. he demonstrated the management ability by execution. let's not argue the philosophy whether we should have had it or not. he's a suburb manager and functioned as a manager and a governor. he would have waited. >> everybody would have waited unless you didn't have experience to understand the magnitu magnitude. >> it was hard to run against obama care for him when he had done romney care. >> you're right. >> let's not talk about this horrible situation that happened a few years ago. >> what's next, christy? >> i love him. i think he's going to win in nj next week. >> you told me romney was going to win big. >> there's a lot i tell people i'm wrong about. >> there's a lot of things. i've done enough right things to have you guys have my on the show. if it was all fair, you'd say who the hell wants that guy. everybody wants her head. that's wrong. what we needed was somebody in the job from the date of appointment that had the management skills, experience. she brought nothing like that. >> i want to know in the crisis we're in now, what do you do mr. manager? >> put everything on a halt now. stop. reset the clock. we're not going to talk again until we have the basics done. >> is it too late now? so many people have gotten cancellation notices of their insurance. can you undo everything? >> you can have the insurance company say sorry you're reinstated on the old basis. rates go up. here's what it's going to be. bring in bill gales, whitman, all these people in who have had enormous experience in running high technology. bring in eds. people forget when lyndon johnson passed health care, it was the system that brought public signed in all plans. >> it's millions of lines of code. it's daunting. >> it can be done. the point is we weren't organized to implement the biggest task we've ever undertaken as a government in terms of providing services to our people. >> we're going to see interesting drama today with secretary sebelius. you think the republicans should not look too nasty with her today? >> reasons should say all right you're here. i can't do a thing about what happened five minutes ago. you have now known about the problem two weeks. tell me what your plan is. explain to me your plan. tell me how we get out of the ditch we're in. i'm not into playing. leave god and children for blame. i want to fix the problem. i'm a business man. i made a mistake. okay. i got to fix it. i've got to move on. these people should be very objective and very fair. i think the tragedy of this is, i don't think this poor woman is equipped to deal with the technical and huge management problems that this plan presents. that's all. >> maybe you -- >> i'm too practical. all i want to know is can i cut my cost, get my sales and make a buck? >> this is one of the major stories we're focussing on today. we have other things that are happening. feds wrap up a two day meeting in washington. there's a policy announcement said for 2:00 p.m. eastern time. the central bank is expected to maintain the program. we'll see what happens come 2:00. the october adp report coming out in less than ten minutes. expected to show jobs add this month. we have the consumer price index at 8:15. we'll get those numbers. we should tell you several earnings of note. gm 96 cents a share. beat the street by two cents. universal comcast showing profit of four cents above estimates. revenue 16.15 million. down 2.4% from a year earlier. comcast points out the year agoing quarter contained extra revenue you boost provided by the summer olympics. free cash flow rose to 30% to $2 billion and operating cash flow 4.5 billion. >> the stock is up today. take a look at markets joer all. dow futures up 40 points up. s&p up 4.7. obama care continues to draw criticism. how is the affordable care act impacting unions? joining us, president randy wine garden. thanks to see you. >> great to be with you. >> it's pay by partisan sort of headache at this point. just the way it's playing out. i guess we agree on that wouldn't we? >> we've actually spent a bunch of time with the administration detailing a bunch of issues that we knew were issues with the law. let me say this, my disappointment is this. if the congress wasn't fighting so much trying to relitigate whether or not we should have this law, i suspect that a bunch of things we have raised from over a year ago would have been fixed already. some legislatively, some regulatorily. the point you made about romney care, there was a by partisan agreement to it. they rolled up their sleeves and they made it work. they made it work. what happened this the washington dysfunction, yes you're totally right the problem with the computers is a big problem. any big thing that gets rolled out will always have problems. there's no shame in the correction. we have to fix those problems because at the end of the day, creating a level of health care so that people are not one illness away from bankruptcy is a really important mention. >> one of the reports i hear. i'm hearing concern about teachers being forced into part time positions and usually we hear that from critics of the law on the right that it's going to cause a part time world. you're worried about that for teachers right? >> this is what we're worried about. we worry that people who don't want to invest in education use anything as an excuse to not do it. we actually had not seen any decreases in hours because of the health care law. we know that across the bargaining table, some of the employers have said it. what i'm saying sir is that we have raised some of these issues before. we know they can be solved. at the end of the day you need a functional congress to solve it. >> you say there's no shame in the mid course correction. if you were managing this, would you have delayed it? >> there are certain things that have been delayed. you make certain adjustments given what is going on. >> you think it was a mistake to pursue this given the problems they knew were there? >> you know, at one point or another, you have to dive in. you dive in but you actually end up like they've done in certain ways. you stop the stakes. you stop the penalties. you have to actually dive in. look, i know this is not the topic today. we've said the same thing about the common core. dive into it but stop the high stake testings. stop the penalties of it. dive in on big things in order for you to make the adjustmentaadjustment ls to make it work. >> how are you today? >> i'm fine ken. how are you? >> i'm fine. i'm active in the schools. >> i want you active in the public schools. >> i want to ask you one question. the trends and results of children in public schools are not good. we cannot be happy with the results we're seeing in educating. i'm the product of a private school. i'm at the desk because i got a wonderful education at a public school. let's forget about the philosophical arguments we'ring have. how do we get numbers to start going in the right direction. they're not now. >> the public and charter schools in the united states of america are basically doing the same. some public are better, some charters better. a lot of public and charters are doing the same. there are four things you actually do. number one. i love to talk about this off camera. we'll claim the promise of public education. until we get 100% of our kids doing exactly what they need to do to claim their future, nobody is going to be happy. you have to have well prepared supportive teachers with time collaborate and tools they need. if not doing their job, they shouldn't be there. you have engaged curriculum of art and music. the other thing jeff does is wrap around services. after school care, health care, these things that cost money. number four, welcoming safe environments. if you do those four things where teachers work together with parent, you have the wrap around services, we actually have well supported prepared teachers engaged in curriculums about thinking math, english and art and music, every time thele school does those four thing, charter or public, those schools work. >> last week i was at a boy's club. >> help us with that in the public schools. >> we are. last week i was at a clubhouse for the new york city boys club in new york. there they have after school programs. i saw the kids in a room doing their homework together. don't forget harlem backed children into education. we started out with social programs. i want to commend you. the first thing you said is something we and you can do something about. let's make sure our teach h herreheers are prepared to present if a way kids are excited and absorb it. things are absolutely necessary. we know if we don't keep the kids after school. the boys club in new york, my wife was honored last week. you go out and see kids doing homework. they're all public school kids. i'm as committed to public education as you are. the point is we have to look at our own warts and pimples. >> of course. >> right now i'm afraid the notion of throwing more money at it solves the problem is not working. it's just not working. >> if you look at finland which is -- we're going to see the international rankings again in a month. take finland that has the best international rankings in the world on education. they do exactly what i just talked about. they focus on the quality of the teaching force. they deeply respect the teaching force. the teaching force is paid the same as other middle class people. >> sorry to interrupt you. thank you for your time. adp reporting private sector. job growth 130,000 in october. the estimate 150,000. down by 21,000. producing sector up 24. it was the service sector where underperformance was 107,000 off 130. the non payroll estimate still a week and a half out. early estimate 130,000. that should not be a big deal depending on where government goes. joining us now the analyst that puts the numbers together. mark, the most important question, are we reaching a level where there's not enough job growth to keep reducing the unemployment rate? are we near the threshold we might see the unemployment rate rise? >> i think about 125,000 per month would be consistent. >> so darn close. >> this is pretty stable. i don't think we see furlther decline at this point. not for a while. i think it did damage. it's hard to know for sure. >> how do you see that? >> it's hard to know for sure. the underlying growth in adp was 150k going into this number. this was 20 to 30k shy of that. >> we should be clear mark. what we've had is a step down. a normal step down from 190 earlier this year. the job market you have to say going into october was a softening job market. many months in advance. i want to be careful. this was a weak number and could have gotten weaker from october or october would have been just a matter of the normal trend of softness. >> i think job market was weakening going into october. it got weaker. >> it will continue to be weak. >> meaning whatever we see when the next print comes. in general, yes. it's weak. we're going to see ups and downs on a monthly basis because of other issues. it's going to be weak for a considerable period. >> watching the future, you would expect maybe they would trade down. they haven't budged. that makes you start to wonder if the market cares about this. >> the consensus does 130 right? it won't change that much. >> the market probably did not expect it. >> we're talking about trying to figure out the weight of softening the job market going into the number. the excel ration from the shutdown. the issue out there has been the health care act. when i look at 20 to 49 employees, businesses that size, that was a weak sector, especially service sector. minus 3,000 which is a place where people who have said they would look for aca in hiring, is a place of service 20 to 49. >> of course we got head faked with that data earlier in the year. >> yeah, we did. second thing, you think if the government shutdown had an impact it would mostlikely be small business and less likely to affect the big guys. >> that's a good point. >> they held up fine. no problem at all. >> when did you take over? >> adp? >> a year ago. >> our graphics -- >> should we be listening or not at this point? >> do we know whether he's any good -- >> consistent absolute bias of numbers between 50 and 30,000. >> that's better than -- >> it's gone up and down. actual bias they had been running cooler than the private sector which is where i compare it. now they're hotter. numbers have been both. >> explain. where does this come in relative? >> you don't want to have this conversation. >> just don't try to make a joke about it. >> steve is right that in the last six months or so adp has been higher generally than the bls number. i can tell you with a great deal of confidence that the number is not biassed. what that means is we're going to be coming in below. >> you must have the idea of why you think your numbers is coming in higher? >> i don't think it's fundamental in particular. i'm saying to you going forward in the next six months, the adp will come in south. >> you realize being within 100,000 is a miracle. 135 million working americans. 30,000 is like a triple miracle. >> do you think we might be so micro managing our analysis of numbers month to month and week to week we lose sight of the big picture, we've got to get people back to work and address issues of block us getting people back to work. >> there's two questions you're asking. one is a question about investment. investors want to know the trend. the other question is economic policy question. that's where -- >> it's not economic policy. i beg your pardon. we need to address the challenge of regulation and what it's doing to job creation in country. there's no doubt about it it will affect the employment in this country. >> i'm sympathetic to that argument. >> i know you are. >> if you look at the plethora of data we have, lots of different data, i don't see it. it may show up. >> let me not be theoretical. >> that's empirical. >> home depot has 80,000 part time employees mandate. no more than 29 hours. floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. get live squawks right in your trading platform at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer. it's not going up quickly. welcome back everybody. few early morning movers. the company is raising the full year earnings forecast. see where you're going when you're running. quarter earnings beating by a penny on corning. devices that use gorilla glass, including things like the iphone. >> ipad, all you that. it's amazing. >> nike shares getting a boost after morgan stanley raises the rating on stock to equal weight. coming up t roll out of obama care in kentucky has been much smoother than other states. kentucky built its own health exchange website and tested it three months. kentucky governor steve beshear created the exchange. >> he'll join us at 8:40. 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(announcer) scottrade-proud to be ranked "best overall client experience." welcome back to "squawk box" we are a few minutes away to our guest host. we haven't talked hacking issue, i spying issues. i want your views. >> my views? anything we can do to make us safer with limits i'm for. >> what are limits then? >> for example, if you said something like i get arbitrarily punished or put in prison -- i'm talking absurd limits. right now -- all the data you want on me, if hit can help me live a safer life and not worry about the things i'd worry about if i it wouldn't another country where you have to worry about thing, i'm for. >> how do you explain that to german people or french? >> i'm sorry. i thought your question was about me in america. how do you feel about government leaders elsewhere? >> i think it's wrong. they're not americans. we are concerned about their safety, but it's not our responsible. >> so we can spy on ourselves? >> i don't think you're spying on me. >> we might be. >> in the spirit of full l disclosure, i have an investment in a company pal entier. >> they do it. >> and successfully. >> i have a corvette. i'd love to drive 130 miles per hour. why they won't let me? i'd kill somebody. >> we shouldn't spy on our allies? >> we have cpi numbers. we'll get back to ken in a moment. rick. >> headlines strip out the all important food and energy up one tenth. numbers close to expectations. you could say core is a little light. year over year and take a longer view, headline 1.2. as expected 3/10 lower than the last look. if you strip out food and energy look at year over year core, 1.7. that's about 1/10 lighter than both expectations in our last look. we are slightly below 2 1/2% in ten year. there's a dynamic going on with the yield curve. yesterday steeper. looks like the long end is catching up a bit. one thing to remember with the supply, the curve is where most is. fives and sevens should go well considering the correlation of mortgages. however there's also a correlation with layoffs and less mortgage employees and activity. all that has to be factored back in. >> hang where you are. we're going to get more with steve crunching numbers here. >> it's pretty muted. 0.8% increase in gasoline. hope is that that would come off in coming noes. airline fairs off a point. i have a list to call bls is talk about how they handle fees. >> the baggage fees. year one you have no bag fee. it's $100. year two there's a $25 a bag fee. >> you think it should be higher? >> i think the inflation rate would be higher in that case if talking apples and apples. my guess is bls includes it. i need to run that down. we did have increase in housing fuel utilities up. looking at year over year rate, policy measure 1.2 is rate as far as federal reserve is concerned. food energy hotter 1.7%. fed wants increase on other index that runs lighter because it doesn't include housing quite as much. fed says it fails on both measure, not winning on unemployment and inflation metric. so that would lead certain people on the board to say we still need to be with our foot on the gas pedal of the economy. we know how much rick likes that. >> fill her up. >> there's one thing out there. we don't know the reason although we think it had a lot to do with the recession. health care costs have been lower. i don't know if we have the chart through september. paul hues, the husband of ford economists, there's that. it's been down and lower. >> you sent me something. >> it should be 30. that's not the right number. >> that's generally how it looks. it's down. they've kept a lid on medicare. >> i just sent you that. >> i just replied back to you. you sent me the e-mail. i just sent back. edna pointed out medicare payments have been down. unh and well point sited similar things. they just slashed payments. what does that mean for hospitals? >> it means you've got to continue to drive efficiencies. look at things that move the needle. reinfection, all those things that add up. in our place, we can see a direct correlation between our margin improvement and this going down. >> i'm not sure i want your margin to improve. as a patient, i'm not sure i want it to. >> yeah you do when i spend money on a new you tower. we're not for profit. when i spend money to give you better health care in the future or diagnose you quicker or better and more exactly. >> you're the first to point this out. the reason we're having this problem is because we're living longer and healthier. why is this taken as the most negative possible argument we could possibly be having? this is the best development we could ever hope for. would you like to have the other problem? >> when people say we can't afford our promises we're not saying whether it's good or bad. >> what do you mean we can't? you're saying we can't afford to live longer? >> we can't afford to live the way we want to. >> no, not for everybody. >> thank god that god invented death. could you imagine the mess we'd have on the planet now? >> google. >> just strikes me this is something we should argue from. >> it's a good problem to have, it just cost a lot of money. >> we want quality of life too. >> you do. >> someone a live on a machine doesn't know where he is or what he's doing. let the guy go to his maker in peace. >> thank you for numbers and analysis. coming up, kentucky governor steve beshear on the early success of the affordable care act with his state and why it hasn't been successful elsewhere. we're back in a moment. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account. sometimes they just drop in. always obvious. 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. welcome back to "squawk box" this morning. headlines from the government social security benefits. rising 1.5% next year. it's cost adjustment year over year calculated september to september. eastman kodak saying it's going to begin trading friday. the company filed for chapter 11 bankruptcy last year and trying to make a come back as a smaller company focused on commercial and packaging printing. adobe said the threat of a cyber breech was bigger than reported. attackers obtained data on 38 million customer a counts. we'll talk to kentucky governor. one of the big bright spots for the roll out of obama care so far. the health exchange site has had 350,000 unique visitors and signed up 31,000 people for health care coverage. steve beshear will join us right after the break when we come right back. tdd#: 1-800-345-2550 trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. so i can reach ally bank 24/7, but there ar24/7.branches? 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(cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. avo: sales event is "sback.hen drive" which means it's never been easier to get a new passat, awarded j.d. power's most appealing midsize car, two years in a row. and right now you can drive one home for practically just your signature. get zero due at signing, zero down, zero deposit, and zero first month's payment on any new 2014 volkswagen. hurry, this offer ends october 31st. for details, visit vwdealer.com today. welcome back to "squawk box" everyone. let's take a look at a live shot of healthcare.gov. this is the government portal. affordable care act sieng up for it, site is still down. the obama care data head was experiencing outage. the operator verizon said it was doing maintenance. sunday, the healthcare.gov site was down as well as similar state sites. one state says that it is having success. joining us now is the governor of kentucky steve beshear. thank you for joining us this morning. >> you're welcome. >> you have your own portal. tell me how many have been coming in and how many have signed up? >> we've been going gangbusters unlike the federal exchange. we have had 350 unique visitors to our website. from 12:01 a.m. october 1, kentucky have been swarming this website. we have so far signed up almost 32,000 now kentucky residents for the medicaid program or qualified health plan. things are working well here. >> the vast majority are signing up for medicaid correct? >> about two-thirds one-third. 20,000 in medicaid so far, 10,000 in the qualified health plans. it's so much quicker once you determine you qualify for medicaid it's quick you can go ahead and register and sign up. when you find out you qualify for premium subsidies and health plans you take your time. people are shopping and looking at different plans. we have another 12,000 people have determined they qualify for the subsidies and they're now just shopping. they will start signing up. we expect those numbers over the course of a few months to even out. >> what do you expect january 1st when the coverage kicks in? what numbers do you expect with the must bes you've gotten already? >> we don't set artificial deadlines here. we work hard to make sure 640,000 kentucky residents ultimately get affordable coverage. 308,000 are qualified for medicaid. 332,000 are in the qualified health care plans. we're going to make that happen. this is a process. i know on the national level and in washington everybody always wants to have a deadline so they can declare winners and losers, success and failure. that's not the way, not the reality of the affordable care act. it's going to take time. if you go back and look at the last time there was a transformational change in the health care system in the u.s., it was medicare a act 1965. it took three years for bumps in the road to be smoothed out and kinks to be ironed out before that was working properly. that's what's going to happen with the affordable care act. i know the website is not working well. the president and sebelius are working on it. it will get fixed and people will have the same opportunity on a federal level they're having in kentucky. >> i'm glad you bring up three years down the road things will look different. as i understand it, the obama care is going to pick up 100% of cost for medicaid patients you're adding with this. three years from now it's a different picture. isn't it at that point the states are expected to pick up 10%? >> in 2017 the match starts kicking in. by 2020 it reaches the 10% level. let me tell you something becky. i didn't just make this decision because it was the right thing to do. it's the morally right thing to do. i have a fiscal responsibility to the people of our state. i can't put us into something we can't afford. i asked price water house cooper and urban institute at university of louisville to do an economic analysis for me and tell me can we afford this in the long run? they looked my in the eye and said governor you can't afford not to do this. you're going to infuse over the next eight years $15 billion into kentucky's economy, create 17,000 new jobs. to me it's a win, win situation. >> did they run numbers on how many they expected to sign up? obviously new job creation is a great deal, getting people covered is wonderful too. if the state has to pick up 10% six years from now, how do you do that? >> we pick it up. when you have 17,000 new job, those folks pay taxes. revenues go up. as a matter of fact price water house cooper predicted it would have $800 million positive impact on our budget. >> that sounds like a win all the way around. governor, we're eagerly a waiting what happens. >> maybe the state should have done it. you bring up medicare and it took a while to do that. president johnson got 70 republicans in the house, 13 republicans in the senate to vote for that. not 0 and 0. maybe in the state -- is there merit to the idea each state should have done this? >> the critics with all do respect, they proved the old saying history repeats itself. when you go back and look when they adopted medicare, you had the same arguments genagainst i. >> at least it was by partisan. that's the point i just made. it should have been by partisan. you've got this rank parer epap in d.c. they can't agree on the time of day. democracy still works. we pull people together and act like adults. >> by partisan ship goes both ways. >> sure it does. >> people with good faith didn't think it was a good idea to go this way. they weren't difficult because they were partisan with obama care. >> it passed without a single republican vote. you couldn't fix it or send it back to the house to fix it. >> well, it's passed. it's the law. you know, i'm using it to transform kentucky. we're going to change kentucky's history with this law. 640,000 people for the first time in their lives will have affordable health care. these folks aren't aliens from a planet. they go to church with us, sit in the bleachers on friday night and watch ball games. these are our family and friends. i'm going to tell you something. this country and state is going to be so much better off in the next generation. we'll have a healthier work force. responsible business people know we'll have a more productive work force. >> you don't believe that ken? >> i'm a more productive workforce. >> you don't believe it, you're rolling your eyes. >> no, because there are 32 million other people -- >> hang on, ken. take a deep breath, chill out and let this thing work. >> i'm chilled out, governor, believe me. frankly, when becky mentioned the vast majority who signed up, it was medicaid, correct? >> and i've explained those numbers and the qualified health plans are growing. and, by the way, a third of the people signing up for both the qualified health plans and medicaid are under 35 here in kentucky. that's another thing -- >> i do have a suggestion based on your statement. let's move washington to kentucky so they'll all have common sense. >> well, it's about time they grow up and stop exacting like a bunch of spoiled children. >> mabe it's in the water in kentucky. that's okay with me. >> it's actually kentucky bourbon. >> thank you both of you for the conversation. up next, we'll check in with jim cramer, who is down teat the ny. we're back in a moment. ♪ [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪ . let's get down to the new york stock exchange. jim cramer joins us now. it's almost the end of the month. we're still getting some reports from various companies. you saw gm, comcast, but they're trickling more at this point, wouldn't you say? >> right, they're trickling. the big ones occurred. two that reported remarkable numbers, eaton and parker. these are great american companies. >> did you see langone? >> i thought that was a terrific thing. these th is america. these are the companies that make things that everybody wants. we spend too much time moaning, not enough time praising. >> somebody took note at parker, hanford and eaton, they're doing well right now. >> when stocks get better, look out -- >> i agree. we're going to have tremendous up side leverage. >> people should respect what you've done with langone. >> and dr. -- >> i got to have him. >> he's the best. >> good. >> how about thank you for what you've done. >> thank you for being a patient of ours, jim. we do all we can to keep you. and if you got a problem, call me, all right? >> i hope i don't have to but i know that you would take my call. >> absolutely. absolutely. thanks, jimmy. >> thanks, buddy. >> coming up, we're going to get some last thoughts from our guest host this morning. our guest host ken langone. we'll give him the last word when we return. ♪ [ male announcer ] staying warm and dry has never been our priority. our priority is, was and always will be serving you, the american people. so we improved priority mail flat rate to give you a more reliable way to ship. now with tracking up to eleven scans, specified delivery dates, and free insurance up to $50 all for the same low rate. 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[ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. welcome back, everybody. our guest host is ken langone. we talked about a lot of stocks. you had a couple others you liked. >> love wells fargo. demonstrated an ability to manage itself. love the over-the-counter market, there's some great values, good balance sheets. i think the important thing is corporate balance sheets have improved dramatically over the last five, six years. that's healthy. when things pick up, there's going to be an opportunity to grow without worrying about having the financial wherewithal to do it. so that's very good. >> you expect that to happen any time soon, growth to pick up? >> i don't know. but i can tell you right now, becky, if there's been a time to be enthusiastic and optimistic about america, it's right now. we are the greatest nation on earth, we'll continue to be the greatest nation on earth. there's a lot of opportunities out there. we need to address the issue of regulation. people push back, you don't know what you're talking -- fine. i know that there's regulations that i have to deal with that cause me not to make decisions that create jobs. >> really? >> yeah, sure. because when you start adding the incremental cost and this and that and the other thing. but, look, right now i believe that kids coming out of college today, i said this last week to a group db. >> ten seconds. >> kids coming out of college right now. >> i'm glad you're saying that. >> ken langone, one of the greats. join us tomorrow. street -- "squawk on the street" begins right now. health and human secretary kathleen sebelius about to take the mic. in her prepared remarks she's says "the initial consumer experience of healthcare.gov have not lived up to the expectations. american people and are not acceptable. we are committed to fixing these probms nothing new.

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