Stocks and a retreat from record highs in the premarket. Amex, nike, and apple are all leading the dow lower. Plus, a big change at the top of American Express. Ken shenalt is stepping down after 17 years at the helm and 30 years later, lessons for black monday for todays stock market as stocks continue to break new ground we are set to open lower after wednesdays rally, in which the dow closed above 23k for the first time in the meantime, two dow components out with Quarterly Results this morning verizon posted revenues above consensus, helped by some Strong Performance in smartphones travelers, better than expected results, although it did suffer 700 million in catastrophic losses related to the hurricanes, harvey and irma. This nike downgrade, guys, is going to take some wind out of the sails, too you know, its funny. I question the value add of the downgrade. Which is, by the way, goldman. And the reason i question the value added, theyve got a big Analyst Meeting come up. Its all the same thing. Look, theres excess inventory, there are issues with ebay well get to that later, and with amazon and the headwind the tailwinds are now headwinds. I read it and i said, guys, this is the kind of call that i want at 63. I dont want it at 51, where you basically say the price earnings to multiples is low enough that its going to support the stock. Its just not a lot of value added. And the people who really helped you with nike were the people who told you, listen, the inventory going to be really bad off of footlocker and the inventory is going to be really bad off of what is basically a kind of a glut of jordans. So, i mean, i know its going to hurt the stock im not recommending it. I just think, come on, guys well, goldman does say that the excess inventory and the inability to resetna north amea is well known. They come out and say that they just say its going to take a long time and these markdowns are going to get high visibility because of this new amazon they are. And amazon is everywhere on the ebay call, amazon comes off about auto parts and apparel. So this is, again, its in the business only vf corp. Right now has really been getting a lot of analyst support, as not being amazonable it is rather remarkable to read the nike call and say, okay, tell me something i dont know and thats not bad work. You dont want there are people who were saying that you should buy it into the Analyst Meeting, but the only thing he did wrong was that he made this call at 52 and not 62. Meanwhile, weve got decent industrial results dover, dana heher, adobe with gd guidance danaherr, we managed to catch someone at 84. Thats really ridiculous adobe, so bankable what i did is went back to the june forecast when they announced their last quarter and in it, there was talk that perhaps they had taken their organic growth from 18 to 20 . And what they said last night is thats completely wrong. Were not taking it from 18 to 20 . Not only that, but were raising the total adjustable market by 20 billion. He is so bankable. He literally, he literally is telling a much better story than he did on june 20th. And the analysts all got very nervous, very nervous after that last Conference Call and i speak to him all the time. They didnt even know what he said that made them nervous. But, boy, did he ever blow the number way take a look at the fiveyear chart on that stock is a thing of beauty. This has been a continuous performer. Its not just an overnight wonder right, hes a genius and uses a lot of artificial intelligence, process trillions of transactions every day. Anybody i know who does anything commercial spends the money to get the program. 400 in five years. But he went from being a company that was acrobat to a company that expands cloud, everything, whether document, marketing, and most importantly, he went sass he went a subscription he is the real rival yeah, no, a friend of our show, rosen on the board yes, chegg was at 3 when he came on. By the way, talk about another turnaround he came on the call and he was like, i was trying to fight back tears i had the hanky all set for him. And i said, listen, i think you just made a strong case. Its up five times and i think even number 86 for the eagles, the hottest tight end in fantasy football was a buyer after that interview he probably was we should get to verizon we mentioned it briefly at the top. Its a good number or a decent number in terms of versus expectations lets not get carried away here. Were not talking about incredible Revenue Growth, of course, at the enormous wireless carrier, but the stock is up its been a difficult year for verizon, as everybody knows, facing difficult revenue comparisons and a lot of questions for the firm overall for some time, there appeared to be a focus on the company in trying to perhaps use m a as a way to obtain some growth or at least protect the future that seems to be dispatched to a large extent my last interview, not that many weeks ago, of course, they really seemed to be focused on the 5g future. However far away that may be or however close it may be, and there are different views of that but the numbers themselves this quarter, guys, postpaid phone net ads of 603,000, 274,000 to that were actual smart the smartphones. A lot of tablets in there, as well postpaid churn at 0. 97 the rpu or rpa number, 136. 31 better than expected so overall, a decent quarter for verizon. And by the way, it was the Second Quarter of 17 also was not a bad quarter, either, for the company. So they put two together here, at least, in the face of a course, a very difficult, competitive environment where they went unlimited. Where they didnt people didnt think they would. And theyre at least starting to show a little i dont want to call it momentum well, i would poke a ledger in the eye the revenues beat the ads, were good but david, how about the breakout, the 2 billion breakout of tim armstrongville what do you think of the oath business. Thats an 8 billion run rate on that zpr do you wear by the oath i dont zbl well, to be honest, the facebook tbh you told me about that yesterday. Yeah, your boy no, my girl its the 12th quarter of churn that low and those wireless subs, thats 36 year on year the ledger must be going crazy. The only wrinkle, you tie it to apple, whats happening to apple this morning some of these newspapers in asia are reporting its the classic story soft suppliers having their eight orders revised down. This is good. This happened from, say, 50 to 160 in apple we heard about the revision orders down. Youre not supposed apple suppliers are like fight club. The first rule of apple suppliers is youre not supposed to talk about apple. But these guys do it who knows. Maybe apple took away their orders people always trade awe off of stuff. Its why i say own apple youll get some story from some chinese or taiwan paper that says this is the end, this is the end, kind of like its an homage to the doors. Skpu and you feel like the blue bus is coming for us, and you sell out, but for no reason tonight equipment supplier side, its important to note in verizon, this is from the citi note this morning, they said the capex guidance from verizon at the low end, were talking 16. 8 to 17. 5 billion in capex. But that could be a negative data point for the Communications Equipment company. Yes, it could be. And thats going to be hard to pin down, because we dont know where it really is david, i want to point out, theres another because i believe in vox, were getting an inquiry here that says, are we seeing the same results, Service Revenue down 11 quarters, why, oh, why, bad its a guy named ledger magenta and twitter. So i dont know. He may be authoritative. He may be there he is im glad he surfaced because he was out late yesterday, throwing a little shade. Is that what they say . Verizons way. He was doing a little trash talk its kind of the josh norman of this business. Lowell mcadam doesnt have 4. 5 million followers on twitter. Lernl dodger does. Shannon will do a gift of his gift shes our gift person. But i think its good that the ledger came back immediately i was saying the ledger, this could be a better number than you think. And he actually has used twitter to say thats not the case hes not taking down numbers, verizon, okay . Hes downgraded to a sell, sell, sell already so theres not any place to go after that hes got his plate full as i tweeted back to him and of course didnt get an answer, hows the Due Diligence going on sprint or tmobile he was spinning or hes going to identify time for dumplings in seattle. A guy who did a 4. 06 mile did he run a 4. 06 mile. When he was younger not yesterday i didnt even make the harvard team notice how i had to drop harvard in, because im so insecure on this 30th veeranniversary day. By the way, while were on twitter, really quick, just left frankfort, great meetings, great weather, really enjoyed it gad, because ill be spending a lot more time there, brexit yes, i said thats london lite that was a real shot hat the bow. Basically, i hear a lot of people stay frnkfort is kind of, i dont know, what would you say, like omaha . Really. Apparently going to become the new london of europe if frankforts so great, open space there. Wow, thats actually not an insignificant thing. Blankfein trying to sort of no, i immediately we both tweeted it out, because its the most significant thing that hes said his twitter account is not particularly its like it was one tweet for every 30,000 followers but it is, i thought this was very important, because London Real Estate is ridiculously expensive. Frankfort, which is not necessarily known for being beautiful but and not to mention in the Bigger Picture that the talks between Prime Minister may and the and everybody else in the eu, not said to be going particularly well so far, in terms of meeting any of their hope for end points and trying to figure out how their going to actually negotiate a soft exit as opposed to a harder exit. Is it going better than madrid versus catalonia . Thats another tough one, as catalan refuses to drop their independence bid and spain says were going to go in and take constitutional control you want to get to geopolitics here because once you go down that road, you start to wonder, in general, why the market is so strong you would have been a member of the lincoln brigade, david, in the old days. Youve been over there, youve been on fifth coluonist. I always said that stability in spain was important. It was. Im with you. Well go see gornka its in madrid. Its in the we know whats in boston, if you look at prompter tape. Please come to boston i will go to boston for a celtics game . I spent some time there many, many years ago in boston what are you doing there . Im going there tomorrow, jim, to do an important interview on squawk on the street. Thats what it says right there. With the celtics . No. Were going to have an exclusive with that man, general electrics new chairman and ceo. Remember, hes also chairman now and John Flannery will be my guest. Ill be alone with him and no, i will be you will be with me in spirit. Like i was with wilf yesterday with tim sloan i was very much in the spirit with that. Or as wilf today with david im actually in the spirit with that. But i like to be in the flesh. And your time will come this is the business ive chosen it is the business youve chosen you will not break the peace that youve made here today. I will not, mo green hey, mo green i know, you always get me on the godfather references ge, tomorrow, of course, reporting earnings you have flannery about 6 30 in the morning and there are expectations that perhaps well get some signs as to what the company will really be focused on on november 13th it has its big Analyst Meeting, that in many ways people expected would sort of set the agenda for mr. Flannery. We continue to hear, of course, nothing is sacred with the company. There is a sense, certainly, that there is a great deal of change to come at ge my dear friend to my right here, as talked often about the inability, perhaps, to continue to serve a dividend at this level given the levels that the company has and its lack of overall Free Cash Flow so a lot of questions and perhaps beginning of some answers tomorrow i want to ask you, will it be an empty plane following your plane no, i get no, the american flight that ill be taking, i think, will so its not just too plain. You have an exclusive with flannery were going to talk more about immelts doubling on the plane thing. Well talk about ge. Well talk about amex, ken shenalt stepping down as ceo got to get to me bey and travelers. Well talk to art cashin about the stock market crash of 87 30 years ago today. The s p hasnt closed doing ten points since september 5th i cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise the stock market crash known as black monday occurred 30 years ago today. The dow tumbled by almost 23 . The worst oneday decline ever lost half a trillion in market value. And as a result, nyc institute and all of those Circuit Breakers we talk about now that reduce volatility, 508 points today, guys. 2. 2 not 22. 6 you need a 6,000 decline, obviously, in cash for that day. I want to thank karen cramer for that, who gave me an unbelievable call, saying the last week, the week before, had been the worst week in the market forever saying theres no bids underneath the only thing i had on my sheets that monday were Johnson Johnson puts you couldnt even sell them, because nobody even knew a bigcap stock. Nobody knew Johnson Johnson were trading if you want to take advantage of the crash the next day, terrible tuesday, which stewart won a fabulous Pulitzer Prize on, was by far worse it looked like it traded through 1,100, and there was liquidity concerns, a lot of the big banks, its been said, got together, including Steve Mnuchins father from goldman. Also, greenspan was pretty involved in that greenspan said well make all liquidity available. When that came out, the selling stopped. That was midday after the private conference with the heads of all the major firms the problem was you couldnt i went in to buy 50,000 shares of caterpillar, and people gave me a market which was 40 70. 40 to the sellers, 70 to the buyers thats how Little People knew. People said, when did you start buying stocks again, i said, when the stock market started to function again it couldnt function it is true if you called nasdaq, you couldnt get anyone on the phone. Theres a big debate about whether there are lessons to be learned. Whether the rulesbased portfolios can be tied to etfs do you think there is or can do markets just crash sometimes portfolio insurance created a false expectation among a lot of the gogo managers that they would be stopped down 5 people didnt understand the power of chicago versus new york back then. I think people should remember that japan was the ascending market they got to 39,000 soon after. The japanese were buyers used to come in every day with bigcap stocks, they would be up 2 every single day the market was levitating, had a bit it did have a bad august, where you started seeing the mercks of the world going down but people have to remember, when i say, no bids, and what karen cramer meant, she was help running a big trading desk she said, aisle trying to sell 100,000 georgia peach. Theres no buyers. She wasnt telling me, but what shes basically saying is, every single stock that she tried to sell, there was nothing underneath and what that means for people who have not traded is that you see these markets and we take it for granted that when something comes over the tape and you see its union pacific, 109, 109. 01, first, we were using quarters. But more important, it would be like, the offered side, the side you can buy is 109 the bid side is 104. So you couldnt do anything. So people were frantically trying to get out. The japanese backed away that week so they werent in the next day. There were some terrible comments by james baker that weekend in the times about not letting the germans kick us around, and you came in on monday and it was just like an extension of what was happening friday and yet, how many months later, into 1988, and all the gains im sorry, all the losses had been made up. Oh, it was great. Nice chart today in the journal it looks like a blip. You can barely see it down 22 , black monday you had to buy it. Its interesting enough, the stocks that really came back the fastest were the materials because the economy was quite strong it was really, youhad to buy the chemicals and the papers those groups arent even really talked about anymore or theyve all been combined. The papers and chemicals were really strong. All i can tell you is, there was nothing in the fundamental economy that was at all weak so people make fun, because in 29, people said, the fundamentals were fine and they werent in fact, in 87, the fundamentals were fine, and you had to get back in and buy stone paper. A stone container. You had to buy international paper. You had to buy dow chemical. And John Flannerys big exclusive with david, i always yeah, he split it we split. We split, but we cant i want to be we split liveris, i get flannery, and you get everyone else how did you get that interview . Guys, settle this during the break. The mad dash on the other side of this commercial dont go away. It can detect a threat using ai, and respond 60 times faster. It lets you know where your data lives, down to the very server. It keeps your insights from prying eyes, so theyre used by no one else but you. It. Is. The cloud. The ibm cloud. The cloud thats designed for your data. Ai ready. Secure to the core. 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