It ended up 34 points. Look at what is happening with the treasury market. This is the big story from yesterday. Huge swings where you saw the yields up significantly in the morning and drop Something Like 18 or 19 basis points. You see the tenyear yield below where we were this time yesterday. 4. 488. The twoyear yield at 5. 07 . Lets look at crude oil. Wti is up to 85. 93. Then we look at the crypto board. You b bitcoin is up this morning with the speculation it will be approved by the s. E. C. 17,000 is low. I remember it. I dont get the speculation. We talked to hester yesterday. I cant believe it hasnt happened. She also has been in favor. She seemed to suggest and i read her comments to mean these folks were not any more inclined to do it a week ago. I got her. If we did get that from her, it was like go figure. For some reason, they will not do it. It implied the logic. Sure. She has been in favor. If you have people who dont agree with logic, it doesnt matter. Ge is out. Phil lebeau is here with more. We are looking at the beat on the top and bottom line. 82 cents a share above the estimate of 56 cents a share. Revenue stronger at 16. 5 billion. The growth here is largely because of organic growth in the orders for new equipment and services by 18 . The real growth driver here is with ge aerospace where they saw huge growth in terms of organically. Free cash flow of 1. 7 billion. Profit margin at 9. 88 in the Third Quarter. More importantly, ge raising guidance for 2023. Eps for 2023 is now expected in the range of 255 to 265. It was 210 to 230. It was raising guidance in the low teens. It expected low double digit growth previously. You are looking at the company expecting maybe 10 growth. Now in the 14 range. It is raising the Free Cash Flow guidance for 2023 to a range of 34 4. 7 to 5. 1 billion. Ge was expecting 4. 1 to 4. 6 billion of Free Cash Flow. Any way you look at this, strong numbers across the board. They plan to complete the spinoff in the Second Quarter of next year. Thats when ge will launch ge aerospace. In terms of the Third Quarter, guys, great numbers and raising guidance for 2023. Back to you. Phil, thank you. Checking out the market cap. 116 billion. It is like when i look at citigroup, i have to remember it is 100 stock. You have to divide it by eight, i think, to get th 1 for 8. Thanks, phil. And the latest on gaza with more from jay gray in tel aviv. Good morning, jay. Reporter good morning. We are hearing from the hostages that were released, including an 85yearold woman who just in last few moments talked about her experience in captivity. Saying she was treated well. She shook hands with captors before leaving. She was provided food, water and medicine. She saw the network of tunnels in gaza and it looked like a spider web according to her. She also had tough comments for the is sraeli Defense Forces an saying why they did not take this seriously. Why there wasnt a bigger presence involved and asking why and how these attacks owecoccur. There are at least 220 hostages still in captivity. All of that going on as the idea continues what they are calling a wide scale operation hitting 400 military targets in the last 24 hours. Including rocket command centers and antitank installations and tunnels. Israeli defense minister and im quoting here that they are involved in a multilateral operation that will soon p proceed from air, ground and sea. Thats going to with one end of the gaza strip. On the other end, we know 20 more aid trucks are rolling across the border with egypt and into gaza. Food, water, medicine and medical supplies and no fuel. Fuel is critical. The u. N. Is saying it is as important as food or water in the area for the hospitals operating. They are doing so at 150 capacity. Likely there is a day of fuel left before sthey shutdown. One official saying these hospitals will become mass graves. Jay gray. Jay, how are things shifted on the ground in terms of the psyche of the folks around you right now . Reporter i think there is a continued support here on the ground in tel aviv for the israeli forces. People are still stunned and hurt by what happened on october 7th as is much of the world. They believe the forces should make a ground incursion. There is a lot of concern about the hostages and what will happen should tanks roll across and into gaza. Jay gray this morning in tel aviv. Thank you. I appreciate it. Thanks. We have a news alert from china. Bloomberg is reporting that president xi jinping made his first known visit to the central bank. That visit has not been reported by state media. Bloomberg says the visit is aimed at better understanding the Foreign Exchange reserves. On the squawk planner, we heard from ge and we will hear from gm and 3m and cocacola and verizon before the opening bell. The ceo of General Motors will join us. After the closing bell wit, we hear from alphabet and microsoft and snap. We have more on squawk box coming up, bill ackman and bill gross are pulling back on bonds. That story is next. And later, a read on real estate. Earnings due from pultegroup. You are watching squawk box and this is cnbc. Experience the art of High Pressure brewed coffee with the lor barista system. Enjoy richer, bolder flavors that satisfy your senses like never before. Inspired by french artistry and elevated by High Pressure, its a dramatically different coffee experience complete with a kiss of velvetsmooth crema. The lor barista coffee and espresso system. Now brewing peets coffee. When you think of investment risk, do you consider climate risk . Changing weather patterns are impacting the way we live and the value of businesses large and small. This can mean disruption to supply chains, changing demand for products and shifting regulation. What does this mean for your business, your clients, and your investments . Ice offers data and markets that can provide critical insight. Manage your climate risk with ice. Cmon, were right there. Cmon baby. That can provide its the only we need. Go, go, go, go ah touchdown baby touchdown are your neighbors watching the same game . Yeah, my 5g Home Internet delays the game a bit. But you get used to it. Try these. Theyre noise cancelling earmuffs. I stole them from an airport. Its always something with you, man. Great solid greek salad . Exactly dont delay the game with verizon or tmobile 5g Home Internet. Catch it on the xfinity 10g network. Now to the bond market. Bill ackman unwound the investment in government bonds and risk. He said the keconomy is slowing faster than expected. And then bill gross is expecting recession by years end. The comments coinciding with the drop in yield during yesterdays session. The tenyear yield had been above 5 before the comments. Bill gross has been right about some things in the past. He knows about bonds. Bill ackman made a lot of money, obviously. It is assuming this, isnt it . Were going to get a 5 rate. Thats a weird time to say the bond the rise in yields is over with the sharp slowdown in the economy. Ackmans point is because of the israelihamas war, you could see a flight to safety. I dont know how longterm of a call this is. At least bill gross thinks were in recession by the end of the year. I didnt talk to him. He is not talking about the economy slowing down . I didnt see the entire thing. He cited the israelihamas war as the reason you see the flight to quality. I think he was citing risk around the world to the economy which is impacted by it. Lets talk to matt toms about this. Global chief Investment Officer of voya. Hopefully you have been able to hear the conversation around the table. Are you with bill gross or ackman . The recession by the end of the year is too soon. We have been calling for softer growth, but not recession. Everyone wants to take the growth. You will see a soft look on growth. The call on where crrates is important. 5 yield and you can leap slower and grind higher. We think the insulated effect of the economy from higher rates is starting to abate the consumer who is not as strong. Corporate earnings will weaken a bit next year. Government spending impulse wont increase. Make no mistake at 5 , it is attractive with that yield. What is the chance of a 5 yield . Bill ackmans comment is what we are seeing in the middle east. It is a cloud on the world, but is it going to be a cloud on the markets . It shouldnt be. Theres a great tragedy occurring. You have geo ppolitical events which becomes part of the kaleidoscope. There is a tailrisk scenario. Bonds rally and the tailrisk happens, we dont think that forms the central tendency. It provides value in bonds or the diversified Corporate Bond portfolio and it is 6 yield. Those are competitive versus the s p. People are connecting the dots, matt, to this if it were to spread to oil in the middle east. If this were to spread to and disrupt supply with demand which is still strong and we were around 100 like previous conflicts in the middle east, that would cause a sharp slowdown which would make bonds a buy. It would. It would be stagflation dary. Europe would have to stay higher. That would be a bad event. Not the central tendency. There is a risk with why bonds have a Downside Protection benefit for you. Geopoliticals dont drive the central tendency. You see the vix print higher and volatility print higher. That is a headwind in the financial markets. Financial conditions have weakened which is the direction of travel. It doesnt provide the path forward. Joe was pointing out what bill ackman was making. He believes the economy is slowing more than the data suggests. It would have to fall off a cliff, matt. The gdp number is the first look at Third Quarter, i think. If we go from 5 to a recession or sharp that is like falling off a cliff. Do you see anything in the numbers to indicate that will happen, matt . Do you need a crystal ball . Is there anything that says that . You can. You have to see something break. We are seeing longterm influence soften. The consumer is weakening in our opinion. Corporate Earnings Base growth is weakening and the fiscal impulse is weakening. Next week is the treasury refounding announcement and the fed, on the week of halloween, appropriate with the politics in washington and the careless spending. All of that is longer term. The consumer is pulling back, but not immediately shutting down. Nor is the jobs market or those with wealth or savings that pay high Interest Rate. Zero was the abnormality. Some are winning from higher rates t. Is too early to Say Something will break. Things can always break. Forecasting a break is difficult. Central tendency is softer growth. Not collapse. Matt, what does that indicate . Take yields higher and markets come back into play. What is the marktomarket Balance Sheet . It doesnt matter if they borrow from the fed liquidity. You have seen that with the financials. That helped pull financial stocks lower versus growth stocks. We think that is an earnings influence. Private market has a good ability to the bank channel. We think there are other channels to let that persist. That lending persist. Matt, we greatly appreciate you helping us through the market that doesnt make sense. Thank you. I appreciate it. This is complicated. This guys reasoning for why we fall off the cliff. We ran up to 2 trillion. The policy changes and fiscal and mondetary policy that are nt here after this quarter. That would be weird to go from 5 to. 50. That the case. You know, you mentioned the deficit. That is double from last year. Stimulus and we had it is a lot of connecting the dots. What causes that 5. 05 on the tenyear yield . In the afternoon, we were 4. 810 . That is with the atlanta fed at 5. 4 . When is that . Thursday . I think. For gdp. When we come back, more backlash from harharvard. This time from alumni angry with the protests over the terrorists attacks by hamas. And we go to washington to see eight lawmakers vying for speaker. Squawk box will be right back. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. In the u. S. We see millions of Cyber Threats each year. That rate is increasing as more and more businesses of us living here. Move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. Announcer executive edge is sponsored by at t business. Next level moments need the next level network. Welcome back to squawk box. I dont know if you saw this. Five harvard alumni, including mitt romney and seth klarvin are accusing the school of ignores students. Threatening demonstrations and jewish students locked themselves in dorm rooms. They are urging harvard to restrict campus to students. They are proposing a semester long course teaching Critical Thinking and interrogation of facts. Independently of that, the former maryland give larry hogan is withdrawing his fellowships at harvard after the denouncing the antisemitic material. He will join us in the 8 00 hour today. I thought the letter from mitt romney and seth and a couple of others was fascinating, but not just fascinating, but a lot of people complain about what is going on at universities. They actually spelled out what to do about it. It is one thing to say i hate everything that is happening. You are terrible. It is another thing to say it is terrible and here are some concrete ways to fix the problem. I actually thought that everything that was on the list was generally a reasonable common sense style to think about. Andrew, we have a lot of earnings today. Things like this are not necessarily what we talk about. It is relevant now. I told you, we are in a bizarre world. Did you see what i asked you to look at . The press secretary was asked yesterday about just this issue. Threats and antisemitic threats to jewish people. Her answer was the president is very worried about a backlash against muslims and islamic people. At least on my twitter feed, people were like come again . What . A Democratic House member wrote a letter and saying what are you doing . You need to do better on this. It was josh moskowitz. Is that her or the deepest part of the administration . It reminds me of the obama years. She had to come back later and tweet. We are very concerned about the rise of antisemitic. We were going to say Something Like this in a post. We were shocked that the Biden Administration beat them to the punch of what with what looked. She was called out. I watched it. We should look at the donor class. I think the idea of the critical discourse and Critical Thinking and discourse. Accountability matters. Were worried. The president is worried about people on both sides being targeted. It was bizarre. Coming up, a read on real estate. The pulte group ceo interview is coming up. As we head to break, here is a look at the s p 500 winners and losers. Announcer winners and losers sponsored by state street global advisors. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . With gold bond. You can age on your own terms. Retinol overnight means. The smoothing benefits of retinol. Are now for your whole body. Plus, fastworking crepe corrector diminishes wrinkled skin in just two days. Gold bond. Champion your skin. Gm just out with earnings. Lets get to phil lebeau who is joining us with the numbers amid a big strike. Well talk about the strike impact. You see it in what gm announcing this morning. Lets go with the q3 numbers. Gm earnings 228 a share. 1. 81 the was expected. 44. 13 billion revenue. We are seeing the rising costs and cost in terms of tighter margins. Margins for the Third Quarter up 8. 1 compared to 10. 2 last year. North american margin is 9. 8 compared to 11 last year. Gm saw profitable growth in every region around the world. Thats great. We knew the Third Quarter would be strong. It is the impact of the uaw strike is what people are more interested in right now. What investors are focused on in q3, the impact was 200 million between october 1st and 21st. The first three weeks of the month, the impact was 600 million. What will the impact Going Forward be . Gm expects 200 million per week impact from the uaw strike as it currently is laid out. In other words, if there are more locations where the strike grows at gm, that cost will go up. Right now, it is 200 million per week. Gm is withdrawing guide aance f 2023. It is withdrawing the Production Guidance of 400,000 evs produced by the middle of 2024. This speaks to the higher costs with the uncertainty with the ev market as sales slowdown or the rate of growth is not as great. It is delaying the production ramp at the michigan plant which we talked about. Gm expects to save 1. 5 billion by slowing down the ramp up in ev production. The headline here is they are withdrawing guidance for 2023 because of the uaw strike. Well discuss this with gm ceo Paul Jacobson in the next hour and including where they are on the next offer. A number of things and we heard from the uaw and heard from them on friday. The arlington plant is on notice for potential strike. Well talk with paul about that next hour. Okay. Phil, thank you for that. Well keep our eyes on the numbers and talk to you in a little bit. In the meantime, 3m out with results. Stronger than expected earnings per share of 2. 68 against 2. 34 the street was expecting. They are raising guidance for the full year. 8. 95 to 9. 1 9. 15. Although the low end of the range is above that. You can see the stock right now up by 3. 8 . Comments from the cio micke