Road map begins with china trade concerns, retails biggest sales decline in seven months, corporate earnings in focus. B of a rallying on a beat, futures point to a muted open. Capitalism under fire a bit democratic president ial hopefuls square off and taking aim at big business and personal wealth. And billionaire marc benioff will join us at post nine. Well talk tech regulation, capitalism, ipos and who he is eyeing in the 2020 race. Stocks are on track for a modest open a day after the dow close the above 27 k for the first time in almost a month s p finished shy of 3,000. B of a beats the street with quarterly results. On the economic front, retail sales were down. 3 in september. Revisions were better. Gas stations down. 7 people say maybe this has to do with gas prices. Perhaps it does when i take a look at what is going on, if you read between the lines with bank of america, which is just a gigantic bank, gigantic consumer bank, talking about 5. 7 growth in Consumer Spending year to date. I wonder whether these retail numbers are accurate i tended to wanted to believe in them, but i find it hard to believe that you can have bank of america showing this level of growth, bank of america is, i think, representative of our country. Versus the retail sales. Maybe the retail sales do not capture what they used to in the numbers. Because thats a tremendous disparity, gasoline or no. Hard to believe. You would like to see the changing metrics, how they go about measuring given the significant change in place of how people buy things. Theyre counting for online and things of that nature. Theyre not missing that. Are they . I dont know lets see what the adobe numbers are. Adobe keeps track of all commerce, keeping ecom. I think ecom is harder to track. There are so many different i was and outlets that companies that you buy things from, when you look at it is almost like thats a mall number mall number plus club. Look at target, look at walmart, look at amazon, look at costco, look at home depot, youre seeing spending, the best in years. Why is that how can you those are, you know, market share dynamics, potentially at work we were doing prints of. Of. 4,. 5,. 8, all summer long. I know that there is a propensity to believe that what you saw last night, what you see in the papers is cutting back spending, but jpmorgan had an exceptional number yesterday for Consumer Spending and talking about, you know, a gigantic talking about, like, gigantic amount of Consumer Spend goldman not as important but goldman had tremendous numbers on the credit card they would argue theyre a big factor, not wealth spending was pretty darn good citi spending was good i struggle to find of the companies i follow anything that is anywhere near that retail sales number, retailers or banks. I dont know how to rectify. I cant i just cant reconcile. I cannot reconcile these numbers. And i know that we can listen to people who in the previous show who talked about Federal Reserve and commerce department, get the numbers. I deal with the reality of bottoms up, bottoms up is much better than that number. Yes, you can back out sears and kmart, i dont care. You can also say these are real numbers im giving you. The real numbers require making a mosaic of what is going on and the mosaic involves banking and retail to a level that i cant ignore yeah. All fair this morning, an interesting dynamic in the research that ive noticed, jim, im sure you too, there seems to be analysts who want to temper the prospects for Growth Companies yes. You mentioned adoeb why i be of their numbers the downgrade from citi, workday over at evercore, a lot of positives, but Adoption Remains an evolution, not yet a revolution morgan stanley, tougher road to large opportunity on slack they also take a breather on service now. And im just wondering, is there an underlying tone here that perception of growth changing . We have been talking about it, but now maybe it is there is no perception, hours worked has fallen, wage growth rolling over, the payroll average is ounsel dowdown this is not coming out of nowhere. How can walmart be challenging all time highs bill gross would say, what, a quarter of the gains this year have been because of falling rates . Well, ill take whatever i can get. I do worry what david is talking about, the idea that the companies that sell at 30, 40, 50 times earnings are really falling, falling and back up what you said, david, the workday number price target, slowing human capital, moderating the core business, when you look at adobe, talking about their commerce business, simply not being that commerce business, huge part of the business. Service now, youre back trying to reconcile microsoft and be buying microsoft. It is the sass companies we have benioff. We do the stock has not done particularly well, trades well below the group, undervalued many would say what do you do to fix that, right . Well, ive got it tell you this market likes the lowest multiple stocks, with the exception of the autos look at micron, loves micron, 43, 43 they like Texas Instruments. J j, sells at 15 times earnings it loves Jpmorgan Citi worth noting, very important yeah. Meanwhile, got to keep one eye on the debates last night. Healthcare breaking a big tech, taxing the wealthy heres how senator Elizabeth Warren defended her plan to tax the wealthiest americans. I really am shocked at the notion that anyone thinks im punitive look, i dont have a beef with billionaires my problem is you made a fortune in america, you had a great idea, you got out and worked for it, good for you but you built that fortune in america, i guarantee it, you built it in part getting your goods to market on roads and bridges all of us helped pay for. You built it at least in part protected by police and firefighters all of us help pay the salaries for all im saying is you make it to the top, the top of. 1 of 1 , pitch in two cents so every other kid in america has a chance to make it. Thats what this is about. Jim, you were, i would say fired up on twitter last night and this morning. I just feel they got to distinguish between what i thought was reasonable socalled assault on billionaires, one of them was up there, versus this rhetoric about prosecutions of drug executives. They mentioned j j, want to prosecute alex gorsky . Thats a show trial. Show trial j j, Great American company. I heard it astonished okay, break up the banks the government put together the banks. Do we need to break up the banks . Bank of america too powerful we have so many more banks in this country than any other country. It is remarkable big tech, mark zuckerberg, he is a pinata amazon, how do you like the way that Elizabeth Warren quoted the 47 amazon, versus saying that walmart never got near destroying Small Business like this i think Amazon Web Services powers Small Business. I think that the rhetoric about attacking the companies that we follow, versus a very reasonable negotiation with the billionaires, who should give money back, versus giving it back charity, these are two different things, but when i heard j j, i said this is america. Cant prosecute alex gorsky criminally for what for 1 of opioid, which was all prescribed is that the way our country is headed should point out as well this morning there is a lot of different news s on potential opioid settlements, with distributors, talking about teva, close to a potential settleme settlement, j j involved, separately from what they were talking about last night, but important for the performance of the stocks i wonder if some of this goes back to the lack of prosecution during the banking most definitely by the way, that did come up, which is the idea we dropped the ball against the people who really almost wrecked our country. It is going to be a great discussion of marc benioff i agree with you, this is a rear guard assault on what should have happened. And there are executives i want to mention names who i thought should have been criminally prosecuted, but got but stated, they did skate that justice department, Obama Justice department failed. And you know there are books written about how they fail. I just felt i finished and said, geez, i really like a lot of these candidates, but they have got to stop talking about how business is the center of all evil business is the greatest platform for change today. They probably will stop, once we get past were in the primary season. I know. Look, i think it is interesting that Bernie Sanders is a socialist. What do i socialist what do i expect rhetoric hes a capitalist hes a stated socialist, like, you know, the great socialist of france during the i live in a communist i have a house in a communist regime in italy. Communist. Called a commune it is different. They come in, they tell you what to spend, what to do, they take your money and say, hey, what did you think . What did you think it is communist for heavens sake socialist is a little bit better at least they dont tell me what crop i need to grow. It is not as though were not going to have a debate coming up in this election about sort of the future of capitalism mr. Benioff will speak to that he does in his book as well. Do you think senator warren is against capitalism . No. I dont either. I do think she wants change in the substantial way so interesting too i met a couple of people who were her students at upenn law school, and they are she was their favorite, and theyre, like, we dont know who this person is. People at harvard the Consumer Protection bureau, very important. People i know are from texas, people i no he frknow from harve say great professor, in terms of reasoned analysis. Maybe you have to do this to get the nomination a lot of people say, i said i was at a party last night, will she move right, will she move right, will she move right she cant tack right when Bernie Sanders is out there raising a ton of money thats exactly what is happening. Meanwhile, the reaction this morning, Lee Cooperman on squawk saying the market has another leg up left in it. Maybe 10 over six months. But did talk about the risk of a president warren and sanders listen to that. If the president resorts to another round of tariffs that probably increase the probability of recession, and if we have a recession, the market drops, at least 25 . If Elizabeth Warren is elected president , in my opinion, market drops 25 . Bernie sanders, same thing all right, so echoing what he said at delivering alpha a fu weeks ago. Right Bernie Sanders, if you read his platform, one of the first things he says is a trillion dollars in buybacks, thats got to end if you look at the numbers of citi, the numbers of bank of america, when they bought back a gigantic amount, you look at the numbers from jpmorgan, the first thing you say is the biggest reason why they made so much money is the buybacks. Johnson johnson, gigantic buyback f that ends, i understand what lee is talking about. You still have dividends, but as also lee talked about how the stock market is really the residence of rich people so once again, thats a continual theme. And therefore it is almost like they wish it would go down that means that you cut a check to the government for what you made in the market and thats about it right well, the runup in the 90s helped with the budget deficit, given the Capital Gains taxes. Yes, it did. Many of us have come back to that perhaps as being a more favorable way to go about trying to deal with income inequality, which continues to worsen and is driving so many of these different debates. Wouldnt it just be so simple to say, look, lets go back to where i know Elizabeth Warren dances around this, lets go back to ordinary Capital Gains taxes the same i havent been in a ton of regimes where Capital Gains, 84, they changed the law, that was ronald reagan. I agree with you, i think these guys are all overcompensating, trying to make it so they dont win the billionaires vote they wont get bezos vote what theyre look at again to reference benioff, im hyping this interview, talking about 27 people who own the world 27 half the country owns no stock or mutual funds at all well, i mean most people cant get past the 400 emergency bill. Should we go back to lenin . Lenin was not a part of our history. Were planning and really equalizing things. I dont know what we go back to, but no. The People United will never be defeated. When we come back, well get cramers mad dash, count down to the opening bell also ahead, a include thclue ont nights jeopardy. And sales force chairman and coceo marc benioff out with a new book, take a look at the futures here, well get to amazon, adobe, ual and big night with netflix and ibm dont go away. This is the age of expression. But shouldnt somebody be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. This piece is talking yeah . So what do you see . I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. Go on and take the money and run go on take the money and run go on take the money and run always like the whistle there. Steve miller. Steve miller. And not the guy who not the guy, yes not the one dealing with purdue pharma. The space cowboys, the man who speaks to the lets get to a mad dash for also what we call hump day at squawk on the street. Yes united airlines. Okay, keeping with this notion you brought up the high multiple stocks are really under a big assault. This is a low multiple stock it roared an incredible number, they have 389 million shares, five years ago, 257 now. Remember the days when they had the issue shares constantly, doing so poorly. Traffic up 1. 9 . They raise numbers, they could earn about 1050, now 11 and a quarter, 12. 25 the buyback is 50 lower than where the stock is so oscar munoz just a fantastic interview, with phil lebeau this morning. This one has to be bought. And look, the max came up. 737 max. You can argue it is distorting everybodys numbers and fuel is higher david, this is a really inexpensive stock versus say workday, versus service now. Thats what those stocks, the money is coming out of those and looking for a home this is one of the homes thats an important trend that we have been noting for some time. Also wondering whether or not it is going to reverse itself it usually does. Growth somehow finds a way. The numbers are extraordinary, we say what the hell were we thinking dumping these stocks those are stocks that are momentum these are not momentum stocks. There is so much money that is pegged to momentum, but the momentum guys saturated with louse banking stock yesterday is they all kind of say there is still a window that is open, but they talk about wework, goldmans call was about 80 million exposure listen, theyre numbers when it came to underwriting equities, were not great. No. I think were the window is not as open as these guys say. I remember that from my french class. Here we go. Yes, some people call me maurice. They call me maurice because i speak we have a lot more songs from the spinning deejays at hq on squawk on the street and the opening bell i am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Bank earnings continue were watching the brexit discussions in brussels. Reaction to the debate you got china, more fed speak and data today the opening bell is in about six minutes. The biggest challenge of. Owning and running a Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in three and a half minutes busy day that is so good to have cramer back at the desk because people have been asking some big questions, the ten year back to 175. What does this do . Is it this a p g market or they have gotten hit, you talk about the 120s to 117, i think everything is day to day there is a propensity to try to go for lower multiple over high. I want to correct something i said last week about apple in terms of the back order watch, not being out of it, im confusing anecdotally back order, up at apple store last night to try to clarify things there are certain products that are on back order. And that is surprising when i speak to the managers there, last night, the 11, there are certain 11s on back order. Again, i dont want to i want to i dont want to conflate back order with out of back order meaning you cant many stores we cant get in new york and brooklyn. I should not have generalized that way but then again, look at the stock. The stock is reflecting that the 11 is a huge hit just a huge hit. And it is also reflecting the watch is doing better. It is reflecting service revenue. But, look, starbucks, throwing stuff at starbucks in hong kong. Who knows what will happen but abbott apple is a great example of what i regard as being a low multiple stock that is getting a higher multiple and workday,bushry, gave a lot not to love about workday. I said in my game plan that workday would have a good conference, good session there an and i was wrong. Mixed takeaways from the workday analyst meeting, right, jim . You got a couple you got a