It is not but we are thrilled to have you here lets take a look at where the u. S. Equities are. Dow up by about 72 points. With these gains, the dow would actually erase the loss for the week at these levels s p up about eight points. S p up around 7. 5. Youll see the 10year note is yielding 1. 716 Global Markets continue to follow the headlines learning trade talks between u. S. And china are set to resume october 10 sources say Vice President premier lu will represent the delegation weve had lower level things happen but this is the next big event. Its the back drop amazing. Trump keeps plugging away. There is so many Business News headlines i think Portfolio Managers are losing sight we are coming up on the quarter. The dollar rally but most of the conversations im having right now, it centers on the Fourth Quarter of last year everyone is reflecting upon it and thinking to themselves basically, you go into the Fourth Quarter of a Football Game with a 207 lead and end up losing 2720 in the Fourth Quarter. You dont want to havethat again. You walked into october 2018 with the s p higher, december 2018, you left that quarter with the s p lower. I think there is a defensive mentality built in do you think there is memory on that soar is it just muscle memory built in . Or is it from every october weve had . It is about liquidity and the need for liquidity i think last year, the Federal Reserve was removing liquidity they seem far more a meanable to adding that. The world is short u. S. Dollars. The real issue is the value of the u. S. Dollar. Bank reserves need to be lifted higher i would imagine october 29, october 30 at the fomc meeting, they talk should we do a little qe light i think the Federal Reserve is a meanable to that maybe it differentiates that environment. There were all sorts of concerns about earnings at that point too. It was worries about the fed, earnings all of that. When the fed reverses course, everything came back i think it was the absence of liquidity. In december, there was not one highyield Debt Offering as soon as we turned to january 2019, chairman powell pivoted. As soon as he pivoted, the markets rallied. I feel a little better about where the fed is and where theyll be providing i thought you lost your mind. It reminded me of an snl skit. You were like, quiet thoughts. But half time report, you never look back. Most traders are about looking forward. You are saying it harkens back you are saying the factors have set themselves up to be similar . Yes the Big Five Banks are required youve been reflecting, i see. On your life, your career. Purposeful reflection always. It is 5 00 and im standing in times square i noticed you coming in i noticed you too peloton shares dropped. Priced at 29 a share at the high end the shares finished the day lower. Check out some of these other highprofile ipos. Smile direct down 44 . All of these down since their debuts endeavor group pulls its ipo citing weak market conditions. The Talent Agency that owns Miss Universe and the ufc this is the second time theyve hit the brakes the window closed quickly i think at this point, i think there was a maturity factor like uber, i think they came to the market too late. In the case of peloton yesterday, i cant see the excitement surrounding this. It is a Fitness Company about fitness equipment. 80 of the revenue is coming from the treadmill or the bike that is the reality. Wall street and Retail Investors are not going to fund growth at all costs. It is no longer going to be a story of getting bigger and beiger they all point to amazon as the season but the losses these companies are talking about are far beyond what amazon was talking about. This next story doesnt help. More drama at wework this is a big part a lot of companies are being painted with the same brush. It would be a tough time no matter who you are this weeks the companys ipo is postponed. Wework ceo has stepped down. Eventually the new coceos are expected to cut thousands. And is a main part of their leasing. And again, im totally immune. You are a leadite ive never done a door dash although, can you get taco bell . Door dash says they have had a data breach. That happened back in may. Information exposed includes the last four digits of credit cards and drivers licenses of many of the workers. It hatches again and again. I feel like im insulated. I think weve made the assumption our information will be out there is there ever a bill to pay on this . There are certain circumstances where it does. I think it is a bigger story right now, the effect is on the individual individuals getting identities stolen, Bank Accounts cleaned out. I would trade a lot of privacy for google maps. That has changed so many things. When are you going to be there 10 41. Have they tracked you and sent a speeding ticket to your house. You get a 3 discounty if you are a really good driver the world will go, if you are texting, the Insurance Company will know. Im worried about the orangish red lights and rolling through the right turn on reds speed limits. A lot of places in the burb that they dont tell you, they go off the base limit of 35. Do you know what a 40 or 42 in a 25 will do they call it like three points especially in a school zone coming up the uaw strike against General Motors and the latest on talks. A look at the biggest premarket winners and losers in the wow where United Health has been added. Great riches will find you when Liberty Mutual customizes your car insurance, so you only pay for what you need. Wow. Thanks, zoltar. How can i ever repay you . Maybe you could free zoltar . Thanks, lady. Taxi only pay for what you need. Liberty. Liberty. Liberty. Liberty. A new kind of credit card. Created by apple, not a bank. With a better way to track where you spend. A new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back to squawk box. G plrch and United Auto Workers remain far apart on many issues. Meanwhile, they said they will pay for Health Insurance on striking workers they said they had blindsided workers with the decision. Jeff, i think in a nutshell, you think the goal is in fact. Theyve held so far. What are you feeling day after all the political and some of the developments in the repo market you think there might be some choppy trading on the show, our trading models looking at the low and looking for the alltime high. Time is running out. The first part of october, models indicate could be a problem for overall markets on a trading basis. Not on a longer term market base which is something we are in if you fail, like you just said, becoming more likely, maybe 50 50, are you looking at 5 , 10 . What would be your down side objective . I think 5 to 7 would be it we are coming out of the strokestro strongest part of the year is just noise we are doing well. Last time i looked, we were outperforming the dow jones. Despite the masinations of the trading, we are doing well here. Jim paulson says a lot of the economic numbers have been Getting Better instead of being lower expectations, theyve been higher that sometimes means earnings are getting ready to reaccelerate would that surprise you . Thats exactly what i think. Hes got a good handle on the markets i see that hard Economic Data is improving and people are paying attention to the soft Economic Data. The hard numbers are improving i think that is very bullish do you think earnings can be better or not . You always have that hope certainly. On a yearon year basis, that is difficult. The question i have is going into the Fourth Quarter, it seems as though growth names are mod rated on demands do we need those names to perform higher on the Fourth Quarter . I do. Wall street will always pay out for true growth. I dont think it is any different now. Based on the action you are seeing, what is your upside. You are secular bull now will we be talking like this in 2020, 2021 thats what i think i think these people dont have knowledge of history they may be short term bull and tactic tact tactical bear markets. The 1982 to 2000 market did not end with the 1987 crash, that went on another 13 years there are not any of us around to remember what secular bull markets look like. Not many can say theyve been following the market for 55 years. In the back drop globally be con deucive to this . Some people think we can have a domestic economy that stays strong and maybe dodges the rest of the slow down do we need growth globally to get this or are rates low enough to where it could happen im not of the opinion that growth globally will just stop things look pretty good to us. Stocks are not all that expensive despite what you are hearing. I saw estimates for next year around 177, 180. Our work suggests that 19 times earnings is a fair multiple going forward. 2020, how should i think about that buy back if senator warren is victorious, they cant buy back their stock after 2020. That comes back once again let me say, i dont think Elizabeth Warren has a chance. She is just too far left i think the economy is going to reaccelerate theyve been telling me for two years, earnings wont come in to expectations and they keep coming in even better. The mothers milk of bull markets is earnings. I think we have years left to go joe, thank you. Good to see you. When we return, streaming while driving. Well be right back. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. You should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Keeping the night interesting, is all about setting the right tone. Lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. Corona premier. Thand find inspiration who win new places. Ct. Leading them to discover were woven together by the moments we share. Everything you need, all in one place. Expedia. It is time for this mornings executive edge tesla is fixing an update. The cars can stream video in the car while parked adding additional games to the tesla arcade offering and upgrading the sum on feature to call their car if it is within the line of sight. And a new feature who cant stand getting stuck next to a baby now offering a baby map. It will place a child icon on those seats with a baby eight days to two years old. That wont be available for a last minute change or if you book through a third party saying once you pay for first class, you should be guaranteed. It is life. Can i make sure i look next to no annoying people it makes you a better person. You are either going to help the baby nobody gets on a plane trying to do Everything Possible to keep your baby happy it is hardest thing in the world to fly with a baby i just dont want to be sitting next to someone who crosses over the line. A spreader, man spreader . I heard from somebody that said the baby was changed on the tray table and then offered the diaper to the Flight Attendant they cant. And so it went the seat back you should be required to keep your shoes on they are dirtier than a rest stop bathroom. Nobody washes those things. Those are the down sides. Joe, i could see you complaining good you are in first class and somebody not in first class uses the rest room be quiet. Some day, maybe andrew will take me up there to see what it is like special behind the scenes content and the latest headlines. For for us every day on your pave ri favorite podcast app sub describe today that was wonderful. Pretty great there was parts i didnt like, it was awful bo through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Welcome back to squawk box live from marketsite on times square up about 98 or so the tenyear, you can see there. 21 on the nasdaq 10year where it has been in the most recent 1. 7 has been where it was hasnt really done much. Lets talk about some stocks to watch this morning. Micron is reporting better than expected results micron is blaming trade and Economic Uncertainty it has resumed some shipments to huawei but sales could worsens if this continues. You can see the stock is off by about 6 microns ceo will be on with an exclusive interview this morning. Delta buying latam giving delta a bigger presence in the south american region. Shares of Las Vegas Sands are rising it will be added to the s p 500 replacing nectar which will be moved to the midcap. I would hate for that to happen. If you are a midcap, that only means you did one thing. Nals you are buying back stock midcaps can become infavor. Know where you live i live in new york. I live in new jersey. Because of all the legalized betting. It is the whole it is me. Ive already been looking at the weekend. Micron is that a big deal i would imagine the interview will be a compelling one i agree with jim cramer who said he didnt believe the Conference Call would be as bad it is back to huawei not knowing what will happen next okay when we come back, bitcoin is hovering around 8,000. Well talk about what is behind that decline next. And former Philadelphia Fed charl Charles Blaser man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Welcome back. U. S. Equity futures are higher dow up about 100 points. S p up by 12 and nasdaq up by 23 local fox channels have gone dark for dish Network Customers as the two sides fail to come to a new agreement. Check out bitcoin falling below 8,000 for the First Time Since june today, 50 this must be a pump stat tisic, 50 is set to expire did you give us that fact . I did not anthony cofounder at morgan street assets. It is down from 12 or 13 to around 8 but still doubled for the year it went from pennies to 4,000, back to 13, back to 4,000, now at 8,000 obviously, its hard to use as a currency there is a nail salon in springfield that accepts bitcoin. Is it digital gold the way you think about it this, as you said, it has gone from being worth very little to worth more it is volatile if you look at the fundamental systems. It is very encouraging it is still over doubled this year you are going to get this asset that can run two, three, four x. Then it will pull back when you have a store of value, you need increased demand for that price to move upwards weve talked stock to flow before and people love that. On that chart, the stock to flow is how you can evaluate. For gold, it will make 62 years. Even with stock flow, when it got up to 11,000 or 12,000, the actual chart, at 8,300 is where it is right now. This is not far from where the stock to flow model would put the value. There are a few ways to put the value versus the price the value, the stock to flow most of those charts are saying we are right about where we should be. The price will go above and below that value what causes, in your view, what caused the sell off in the last week in your view when a price drops, there is more sellers than buyers that simple definitely other things the futures price point is lower. Historically about 75 of the time before cme pays out, there is a drop. Over the long term, i think futures are less impactful. You say it is a store of value. Im not going to get into an argument over that we will reach a point where the u. S. Dollar will become digital. Other currencies will become digital. If