Welcome to squawk box. Im becky quick along with joe kernen and Andrew Ross Sorkin. Futures are indicated higher this morning, triple digit gains for the dow up by about 167 points but yesterday was a big down day for the markets. Dow was down by over 400 points, 1. 4 the s p and nasdaq done evz nasy even more. This morning s p indicated up by about 25 and nasdaq looks like it would open up by over 100 points fairly significant obviously everybody watching what will be happening with the stimulus talks with the deadline that nancy pelosi has said for later today. Lets take a look at the treasury markets ahead of that, you will see that the ten year looks like it is yielding 0. 777 so a little stronger yields for the treasury markets right now but andrew, obviously washington is where people are watching and that is exactly where well go because House Speaker nancy pelosi and Steve Mnuchin are saying that they are making progress in their latest stimulus talks with time running short of course to reach a deal before that 2020 election and ylan mui is joining us with more on all of it and today is the deadline democrats have set but as the white house put it, nobody is popping shachampagne t yet. Nancy pelosi and Steve Mnuchin were on the phone for 53 minutes yesterday and will be talking again today. The white house says that they are narrowing their differences and that lawmakers and their staff will be working around the clock to resolve them. But she also said that the divide goes deeper than dollars. The democrats and administration dont have the same values she said and white house chief of staff mark meadows agreed with her. Right now again, it is not a number as much as it is the underlying policy that is a problem. And if there were areas that we could invest in that would provide Growth Opportunities for the economy, for example monies in infrastructure, money in bringing back manufacturing from china to america the other problem is that the white house and Senate Republicans may not have shared values either. The senate will be voting toda on a very narrow standalone extension of the Payroll Protection Program this measure is not expected to go anywhere, but it is something that republicans can sort of unify around and rally around before the election because, guys, right now it is not clear how many if any republicans would support a deal if President Trump stuck with the democrats. Are we really expecting tha well hear something today, i mean really really or will this be, you know, were making progress and maybe we should do it another 48 hours . Weve been burned before on many different deadlines so im hesitant to say that this is the absolute final day. But clearly lawmakers want to get back to the campaign trail they dont want to have to take their members, you know, bring them back to washington in the final days before the election the senate is in session this week so it makes sense that if something is going to happen, it would happen this week they are still talking so that opens that little window of hope for them to reach some sort of agreement. But you know, this is not just a negotiation between the white house and between democrats. Senate republicans are also Major Players in this and there has not been concerted effort to reach out to that chamber so far. So there would still be quite a heavy lift to be done even if mnuchin and pelosi were able to reach some sort of deal today. Did i hear that correctly, did mark meadows actually say that they want to ram an infrastructure bill into the middle of this, the infrastructure bill that nobody has been able to agreeon in th last ten years in washington i think his point was that there are places where they feel that they can spend money and have it be spent wisely in a way that does help the economy they do sort of agree on that. The point there i think he was making is that exactly how to do it, that is where they are getting bogged down. They have come close in terms of the top line number, but it is the language that is tripping them up. And did nancy pelosi just realize yesterday that there is a difference in values in these two parties, that they have different objectives that they would each like to agree like no kidding. Right so i think that initially the stumbling block was just you they were so far apart in the money that they couldnt even have the conversation about the language you could also argue however that as the white house does, that she has been moving the goalposts, is it about the money, is it about how it is spent, in a bill that will span hundreds of pages, certainly there is always language that you could quibble over so is there really an interest in the part of the democrats in finding a solution here or is this more of a political gamg bit a gambit and that has been frustrating both members on both sides and also obviously voters. Well of course be coming back to you a lot i imagine throughout today and well see what were all talking about tomorrow morning along these maybe same lines or maybe there will be resolution who knows. Joe. A point of how close we really are so i want you guys to come back, but it is empty here basically so byom, that is bring your own milk for me if i want coffee so i went to get some yesterday and now i moved the front milk and go into the back where the Expiration Date is later, you can do that. And you know what i got yesterday . November 2 i have december which makes me a little concerned because you have what i have a december i just looked at it this morning. How is that possible . That ive never seen i thought i was really getting sounds like powdered milk anyway, november 2 and when i got it yesterday, i was like oh, rmy god, there is a election the next day. Lasts until the election. So we are close we are as close as milk souring. Byom anyway, in other political news, President Trump and former Vice President biden will at times have their microphones cut during the next debate when one candidate is given a chance to provide a two minute answer, miss opponents mihis ml be muted the debate set for thursday at 9 00 p. M it will be moderated by Kristen Welker and it will run 90 minutes. And i momentarily thought that i would ask to do our shtick where one of us starts talking and i he pretend but people get confused and it looks like we had technical problems we dont need to look like [ muted i think it is a good policy by the way i do i thought for us it is a great policy i actually think no, but for the debates though, during the keeping it real where there is not really supposed to be a debate, where they are supposed to give a presentation, both sides should be quiet and let the other one talk and then when there is a debate, leave the microphones on i agree and i think this is enforcing the rules that already existed i think that is where the frustration has come in from the debate people to begin with is that the rules are set in strans and then the candidates have cho st c chosen the rules and they did it to us no, i was just pretending do we not need a sense of humor in this world . Exactly lighten it up. We get some funny things happening in the news. Anyway, go ahead im not going to touch that one. Maybe youre not. But any way stocks to watch, intel has reached a deal to sell its flash memory Manufacturing Business to sk hynix for about 9 million. That unit makes flash memory primarily used in hard drives. Thumb drives and cameras and prices for flash memory slumped back in 2018 and they have been a little slow to recover. What kind of memory oh, flash memory all right. Go on. Flash sticking to the theme. Ubs reported a jump in net income to 2. 1 billion in the Third Quarter, that is a 99 increase from the same period a year ago ubs described it as the best Third Quarter in a decade that they have seen and the outgoing ceo told cnbc that visibility is limited, sometimes that is a fortunate thing, but the bank is staying agile. Joe. You know, i cant imagine i mean, you know, my wife, hey, honey anyway, coming up, ibm shares are under pressure. Well dig through the companys Quarterly Results next and on tap today, reports from travelers, proctor and gamble, and lockheed martin, all to look forward to stay with us i feel like were forgetting something. Let me check. Xfinity home gives you peace of mind from anywhere with professionally monitored Home Security built around you. No, i think were good. Good. So when youre away, you dont have to worry. The tent. We forgot. The tent. Except about that. Xfinity home. Simple. Easy. Awesome. Hey look, i found the tent get xfinity home with no Term Contract required. Click or call today. Ibm reported its Third Straight quarter of revenue declines in line with what analysts expected. At one time, ibm was the biggest name in tech representing 6. 4 of the s p 500 that was way back though in 1985 no company dominated the index more until apple reached 6. 5 this past summer ibm weighting steadily declined and now represents 0. 39 of the s p 500. Joining us now to talk about how were calling it big blue ive renamed it, alex, i called it i said medium blue i think maybe that is generous at this point. Founder and writer of the Big Technology newsletter and also a cnbc contributor i dont take any satisfaction here and the landscape is littered with stories like this. You remember digital equipment maybe you dont. Youre a young guy but i just remember novel, data general, edson and all these companies black theack then at leaooeeast i bmpt bm we stilt it but it has fallen a long way is there any future really for ibm . It must be a niche, wouldnt you think . Yeah, i like the medium blue. I would even call it two blue now that it is about to split off, basically one company that will focus cloud and one that will focus on consulting so if you are looking for hope, it would be in the Cloud Business ibm has been talking about the fact that 80 of Enterprise Computing hasnt moved to the cloud yet the and that is an opportunity that they could get into of course but it is probably not the core fwrukand that is an opportunity that they could get into of course but it is probably not the core fwruk infrastructure so youre right, ibm started a century ago and still kicking. There is some hope, but it is not what it used to be, that is for sure weve heard about the move to the cloud, that was the last ceo was in the process of trying to do that. And weve also the declining revenue story has been i mean, it is not just quarters now. It is probably more than five years where basically it has been an outlier when there was a gain in revenue and the buybacks to try to get the eps up a little bit it has been difficult to watch a once great name struggle with not being in you know, even microsoft didnt do social media. So there are always new names that seem to take the place of the stalwarts. Just the Way Technology works. I dont know why young people i guess well, microsoft by the way, it committed to cloud five years ago and has had an amazing revital staigs algttalization revitalization and i share your skepticism of ibm, it might be too little too late and so at this point, who would you say that ibms competition is, who can they learn from, who do they have to take share from, do they just really have to hold their own, and what are the prospects for it would you buy the stock at 121 . Much cheaper, market cap smaller than it has been in quite a while does that represent an opportunity for investors . Yeah, they are in such a weird position because again, they are coming into this cloud world after microsoft and amazon have really staked their claim on it. But if you imagine that were at the beginning of the move to the cloud, maybe there are multiple billions of dollars to be made in working as a layer on top which they call like the multicloud so that is interesting i think right now the stock doesnt seem very appealin because they will spin off the money losing part and this new company will be a better buy but the question is like is the stock going up once that happens. I personally wouldnt do it right now, id wait until the spinoff and make a decision then there is hope for the company. They finally got their strategy right. But you have to be an optimist in order to invest in them right now. And we have all of less than a minute left, but as a savvy tech watcher, if either facebook or twitter said will you come in here and fix our regulatory problems, where would you start . After the most recent incidents weve seen yeah, i dont know. Facebook and twitter, they seem to get in their own way all the time the fact that they were interfering with the New York Post article last week hasnt really turned out very well for them i mean, look at the ftc right now. It is totally underfunded. They make as much they have as much money in a year as facebook makes in a day and a half so if im facebook and twitter, i stay the course. Im not too worried about government regulation. They are coming for google first. So id wait and see how the google thing plays out and try to go from there so is that really m 3 e 1, u. S. Version of m 4, what is that the pillows. Behind me yeah. Honestly, im up in steelgeae this is a house that i stayed in when i was reporting out for my bo book, i was cat sitting and back here for a week, just like to split my team good the bay area and seattle. So you dont know what the heck it is anyway, im scratching my head i like it. Im thinking einstein, i dont know what the hell it means. Thought you wrote a book so you dont know either great. Thank, alex. Sorry, i cant answer it. It is scrabble. E is only worst one and m is only jaw, i know im not supposed to do this, but it is home oh, okay. All right. Home sweet home. We digress sorry. Im curious are. Thanks, alex becky. You didnt know that, did you . I was saying it was scrabble. Im beingmuted like the debates. When we come back, how struggling restaurants have faired and right now, lets take a look at the biggest premarket gainers in the nasdaq 100. Moderna getting a boost after its ceo says that ivaccine coul gain emergency useutriti in december. Before we talk about taxsmart investing, whats new . Well, audreys expecting. Twins grandparents we want to put money aside for them, so. Change in plans. Alright, lets see what we can adjust. Wed be closer to the twins. Change in plans. Okay. Mom, are you painting again . You could sell these. Lemme guess, change in plans . At fidelity, a change in plans is always part of the plan. Aflac now tell me, what does aflac do . Aflac pays you money directly to help with unexpected medical bills. And is Aflac Health Insurance . No, but it can help with expenses Health Insurance doesnt cover thats right. Are there any questions . Coach yes . Can i get one of those cool blue blazers . You know i cant play favorites. Alright lets talk coverage. Its go time get help with expenses Health Insurance doesnt cover. Mmm hmm get to know us at aflac. Com working within amazon transportation services, i really saw the challenge of climate change. We want to be sustainable, but when you have a truck covering over 300 miles, or you have flights going hundreds of miles, its a bit more challenging. We are letting the data guide us to the best solution. Its inspiring to try to solve a problem that no one else has solved. Thats super exciting. U. S. Restaurants continue to struggle as the pandemic continues and as Speaker Pelosis deadline for stimulus deal is approaching. Kate rogers is here. What can you tell us this morning . Well, restaurant recovery is continuing its very slow march forward. Black Box Intelligence reports that comp sales were down 7. 4 year on year and traffic fell by 13. 5 . The numbers, they are not as strong as the week prior october 4 which was the best week for sales and traffic since march. Trends recently do show an uptick in Consumer Spending for full Service Restaurants and remember that fast food and pizza have been the big winners during the pandemic. And turnover continues to rise and Staffing Levels are consistent now with precovid levels while casual and full Service Restaurant levels are more reduced and more consumers may be opening their minds to actually eating at a restaurant a Research Polling of likely voters show that 45 of customers say that they are now comfortable dining out at this point in the outbreak, that is off the highs that we saw in september, but still much higher than it was over the summer. And how attitudes shift as cases continue to climb around the country remains to be seen back to you. And kate, i have a couple questions. My first is, we look at restaurant sales, but if so much of the dining sales that they have seen have been people who are getting takeout and taking it home to eat, how does that cut into their margins for the restaurants, for the sitdown restaurants that maybe had a lot of the margin coming from alcohol that they would serve if you were eating there . So you can see a lot of the higher end restaurants have started to sell alcohol when they can, but it is just simply not enough to do that and also offer these takeout and delivery offerings to keep you afloat when so much of your business does come in the form of people actually coming in and sitting at your restaurant so that has been one of the Biggest Challenges and a lot of the restaurants are not set up the way a more casual chain would be to serve people with delivery and takeouts. So the answer is that that is really not enough moving forward. What do you think the biggest challenge is it is getting colder, maybe people less likely to go sit outside and eat. What is the big egest challenge you think the restaurants face the coming months . Certainly winter is on its way. Places like n