Themselves on the wrong end of a judges decision in california it is friday, october 23, 2020 and you are watching Worldwide Exchange on cnbc good morning, everyone. Im seema mody in for Brian Sullivan we kick off your friday morning with a look at stock futures, the dow up currently about 75 points the major averages august coming off their second positive day in three. But looking to end the week in the red. Here is how were set up the dow and s p are on track to snap a three week winning streak, the nasdaq on pace to break a four week winning streak for its first worse week since september. Part of that is apparent rotation out of Technology Take a look at the ishares and momentum etf, it is down more than 2 this week. And on pace to snap a five week win streak the etf tracks tesla, apple, amazon, invidia and microsoft. But not to be out done, First Trust Dow jones Internet Fund is now down about half a percent for the week eyeing its first down beak week in five financials and regional kre are both coming off their best day since july 21, the latter up around 7 . So certainly seeing some movement in the financials and energy is surging coming off its best day since july 21 you can see up 4 yesterday. And were watching the Home Builders that had a really strong run this year, but trading just about flat right now premarket, ishares Home Construction etf is down about 7 this week and on pace for worst Weekly Performance since april. Asia ending mixed. Trading in europe is just getting started. Lets send it out to Steve Sedgwick in london for a look at early trading. Great to see you seema, great to see you not that i dont like sully, but lovely to catch up with an old friend like yourself as well european markets had an absolute dwr drubbing as you can see behind me, were trying to float the boats of a bit of a rally and it is actually a broaden compassing rally despite the inheritance from intel daimler, are a novembrenauld ous as well. And what a rigde on brent and wti. And also the banks are rallying as well. Let me show you barclays here, a lot of our viewers are aware of this one, the three month move, in session, weve halved the last quarter performance, up 6. 5 and i spoke with the boss at barclays and he is pretty happy because a lot of things are moving in the right direction. We saw with Goldman Sachs and others that their markets, their vision going well. And equities up 40 as well. Fixed income currencies, up 3. 1 and in the world of zero interest rates, the Net Interest Margin is key on both sides of the Atlantic Barclays is still making a interest margin, name, of 2. 2 and that is quite respectable. It certainly is have a great weekend back home, a new development in the fight against the coronavirus. Leslie picker has that story and among other corporate headlines. Good morning, gilead says the fda has given a green light to its drug rechl oig fnminbcomme treatment of those who require hospitalization. It was also one of the treatments that President Trump received when he contracted covid just a few weeks ago you can see there shares of gilead up 6. 8 in premarket trading. Wells fargo is reportedly exploring a sale of its Asset Management business, the possible sale would be the biggest shakeup since former bank of new york mellon chief joined the bank last year the Asset Management arm could reportedly fetch more than 3 billion. And u. S. Antitrust officials are nearing a final decision on whether or not to bring a lawsuit against facebook accusing the company of using its dominant position in the marketplace to hurt competition. Ylan mui reports ft commissioners met yesterday to discuss a potential antitrust case a source tells cnbc that they have not decided whether to move forward, but you received information on the pros and cons and potential wram iftential raf an anti trust suit shares just fractional higher this morning and to the campaign trail and last nights second and final president ial debate. Much more civil affair than what the American Public wilted thtn three weeks ago, but no less contentious. Tracie potts is joining us with the highlights good morning reporter hi there, good morning. So this was clearly a different debate than the last debate that we saw the moderator kept things moving along, mics were muted during responses. And President Trump seemed to back off and follow the advice of his own team to let joe biden speak. In fact, it appears that was part of his strategy the second and final president ial debate, calmer than the first, with both candidates insisting character is on the ballot you know who i am you know who he is you know his character, you know my character you know our reputations for honor and telling the truth. I am the least racist person in this room reporter this time there was is substantive conversation on a number of issues including coronavirus. Were learning to live with it, we have no choice. We cant lock ourselves up in a basement like joe does learning to live with it . Come on. Were dying with it because hes never said it is dangerous reporter and katthat iran a russia are trying to interfere i made it clear any country that interferes in american elections will pay a price they will pay a price. Reporter also at issue, the president s taxes. I prepaid my tax. Over the last number of years, tens of millions of dollars. I prepaid. Hes been saying this for four years show us. Just show us stop playing around. Reporter both claim they dont take foreign money i closed the account before i even ran for president let alone became president reporter and on the minds of american families, health care joe biden is going to terminate all of those policies. These are people that love their health care. What im going to do is pass obamacare with a public option, become bidencare reporter the final debate before america decides who w should lead. Today President Trump is back in florida, he is doing a couple rallies down there george w. Bush back joe biden will be in delaware doing a speech on covid and the economy, continuing to hit the theme that he thinks the president has not been a leader, that his leadership on this has been lacking and it continues. Thank you. And sticking with the laeksz a election and your money, the next guest says correlation w h suggest that the markets are warming into a he potential democratic sweep, but he cautions that assumptions over the election can be dangerous. Craig johnson at Piper Sandler is joining us this morning craig, layout what the charts tell you about how investors are digesting the latest polls and now this recent debate yeah, so it is very interesting, if we go back and look through history, you can clearly see that having a democratic president has historically been stronger for markets. And if you look through markets right now, the trick and treat as we see is simply this, the sweep would be a democratic blue wave coming through and the trick would ultimately be that the polls are wrong, once again like they were in 2016 and under that kind of scenario, you see a perhaps divided congress remain in taktact and would be positive. I think the market would like to see gridlock as we look through history, i think that we have a market that has sort of gotten a little complacent you were mentioning the charts earlier and some of the early monologue you had. And you look at a lot of the larger cap stocks. They have not been performing well there are lower highs in a lot of faang stocks. Leadership is sort of changing a little bit ten year bond yields are moving up, weak for the housing market. So the market is trying to digest what it could look like under a biden victory. From my perspective, i think this market could have a little bit of a short term set back meaning that we move into this election, it is probably an election that play not be contested, but may take a while to get all the votes calculated. And under that scenario, the only period that you can look back at history and sort of put this into a context would be 2000 and in 2000, you saw the market fall a little under 12 , oil prices came in 23 , ten year bond yields fell about 95 basis points pchb and th points and then you have a strong rebound the type of stocks that did well why, financials and energy, what does that tell you about where investors are placing their bests. That is a terrific question and it tells me it that under that scenario, the financials could do a little bit better but again, bringing back these large cap names, apple, amazon, lulu, these names look like they are either making a double top or lower high than the year before, but i would think that under the market model, which we position highlighted in this months publication we sent out to clients, that when the market is higher, three months heading into an election, you typically see your incumbent candidate typically get reelected. So under that scenario, the market would say trump would be reelected and that would be positive for the financials ultimately and perhaps that is what some of the market message could be coming out to play. And again, trying to digest all this news is very difficult and looking at the poling at the pod comparing it to the market is a challenge. There is a bifurcated set of outcomes from my perspective as a person that looks at charts for a living, im going to stick with what the market message is telling us and i think right now it is suggesting that well see programs the incumbent reelected again looking at the data. Well see if you are right. Craig, thank you for joining us. And when we come back, why shares of intel are getting ready for a rough open this friday morning, down 8 in premarket plus with the Airline Sector under pressure, why one industry Hedge Fund Sees opportunity in this sector. And later much more on last nights president ial debate and what it means for the markets, your money a busy hour ahead. We started goodrx in 2011 because too many people in the United States cant easily get to a doctor or afford the treatment they need. Thats why goodrx has built a leading consumerfocused Digital Healthcare platform. We wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. Lets get a check on some of the stocks on the move intel taking a tumble. Leslie picker with the details intel reporting a crop in Third Quarter profit and revenue in line with forecasts, but sales from its Data Center Business sank and the Fourth Quarter revenue outlook is below analyst estimates. Also being hit by consumers shifting to cheaper laptops, shares falling sharply this morning. Jon fortt will interview bob swan today on squawk alley at 11 00 a. M. Capital one posting better than expected Third Quarter earnings and revenue, the credit loss provisions falling to about 330 million for more than 4 billion in the second quarter. Paypal is on the hunt for bitcoin. Bloomberg reporting it is exploring the cryptocurrency code deal applies is unclear, bitco last raised funding at a valuation of 170 million. Earlier this week, paypal announced that it would allow customers to buy, tellingsell a cryptocurrency on its network. And still on deck, a 2,000 switcharoo at one of new yorks most iconic eateries, and other top trending stories coming up. Kaidtodays big number 157 million. That is how many votes predicted estimates will be cast in the 2020 president ial election that would be a 20 increase from 2016. For skin as alive as you are. Dont settle for silver gold bond champion your skin airlines are out with Quarterly Results and they continue to reveal the impact of the pandemic on the sector with southwest yesterday reporting its biggest loss ever, the stock under pressure this morning as are some of the other airlines joining us now to discuss the outlook for the sector, Peter Mcnally for industrials, materials and energy at third bridge a pleasure to have you on, peter. First to southwest disappointing report is that what we should expect from other airlines that are getting set to record next week . Good morning, seema yeah, it has been a disappointing sector for i think obvious reasons. The good news for southwest is that historically it catered to the Leisure Traveller and those are only the travelers that were seeing today business and long haul sbr international are more important for united, american and delta, and that does not show any signs of coming back anytime soon, particularly with europe locking down again there are encouraging signs around holiday july 4th was good, labor day was good, we have thanksgiving and christmas ahead. But it is still a tough business yeah, and at the same time, they are making changes. Swept yesterday announcing that it is bringing the middle seat back, American Airlines has done the same but to your point that Leisure Travel is doing much better than business travel, that is not expected to come back until sometime in 2021, if that could discourage, bringing that middle seats back, could discourage travelers from booking a flight, the idea that you may not be getting as much space on board well, it is apparent that will t lot of the airlines cant make money without that middle seat southwest is in a little better position with its costs and its 737 fleet. But, you know, the rest of the airlines, it is just going to be much more difficult. And the Bigger Airlines need these business and International Travelers to come back and it has been a little bit discouraging, executives seem to have coalesced around the idea that 10 to 20 is never coming back and our thinking that it was down 5 to 10 prior to this and so without that middle seat, it will be hard to make money, but this industry is finding different ways to adapt all the time best name to invest in in this sector . Who has donees best job at perhaps not only managing its final situation, but position being good at also marketing its products our experts have focused on two things, it has been Balance Sheet and fleet capabilities and southwest does well on both fronts whereas most people would think things like american and united will have a much more difficult time with their large long haul fleets that are geared specifically for that Leisure Traveler and industrials set to report next week and im curious if you think the likes of 3 m and caterpillar that have had still a strong runup over the last four weeks, a stock like caterpillar is less than 6 away from its record high what do you expect from these names when they report next week in. Well, i think specifically for caterpillar, if you look at their customers, right, the mining companies, copper, iron ore, gold, these commodities have been strong and it has been both some supply issues, but also demand has been quite good. China has come back. So i think that outlook while in the short term caterpillar obviously faces some issues as you highlight with cash burn, Commodity Prices are the real big story there. So i think that explains why weve seen this rapid recovery in caterpillar and well see if it can continue with results out on tuesday, 3 m out as well peter, appreciate you joining us Peter Mcnally. Happy to be here. Straight ahead, we head back to nashville following last nights second and final president ial debate before election day the issues that matter to wall street after a civil but no less contentious evening between the Candidates Plus take a look at this mornings mystery chart with a stock up nearly 6 in premarket, we reveal the name to watch when Worldwide Exchange returns. A final faceoff as President Trump and former Vice President biden go head to head in the second and final president ial debate before election day key takeaways, coming up and stocks trying to keep their win streak alive as investors digest optimistic news around the fight against covid19 and our treasury hunt finally comes to an end, after more than 50 year mystery. Youre watching Worldwide Exchange on cnbc. Welcome back, im seema mody in for Brian Sullivan futures are higher pretty much across the board, the dow up 119 points, set for a triple digit grain f gain for the dow looking to end the week in the red, the dow is on track and s p both on track to snap a three week winning streak. And nasdaq on pace to break a four week winning streak for its worst week since early accepts a september and the msci momentum is down more than 2 this week and on pace to snap a five week winning streak this etf tracks all the big names like apple, tesla, amazon and microsoft. So search ocertainly one to wath financials, the kbe and regional are both coming off their best day since july 21, the latter up nearly 7 since monday and also catching investor attention is a rise in bond yields, and that sent hoemd build builders lower ishares etf down nearly 7 and this could potentially be the stock of the day as shares of gilead are surging as the fda has given the green light to its drug remdesivir for dream for patients requiring hptizatio hospitalizati hospitalization. This is the first and only approved coronavirus treatment in the u. S remdesivir was also one of the treatments that President Trump received when he contracted cov