Business that logged the worst session since march of 2020. 166 billion wiped out that is equal to the entire market cap of nike and amd or disney that cloud weakness spilled over into amazon. We will hear what amazon has to say tonight after the closing bell amazon shares off from yesterday at 1. 7 . Treasury yields picked up. The 2year treasury at 5. 12 thats the key level those are good facts you gave you can find a lot of companies uccompanies. Boeing ibm. Ge to lose that and still be worth a lot is the good news and bad news maybe good news and bad news morning. Uaw and ford reaching a tentative deal to end the sixweek strike. Phil lebeau is joining us with details coming out overnight good morning reporter good morning, andrew the final push for the deal was this week after the uaw called for more strikes ford earnings were set for thursday they finalized a deal. It kaulscalls for a 25 hike foe several four and a half years. There is more Profit Sharing for retirees here is shawn fain talking with the membership last night on facebook we send this contract to you because we know it breaks records. We know it will change lives what happens next is up to you reporter all right what is next for the uaw members who have been on strike since september 15th they will go back to work soon when remains to be seen. They will not wait for finalization details will be spelled out on sunday and the ratification vote will take place after that that remains to be seen. Likely in the next week is the ratification vote. The important part is they will go back to work soon a matter of days not waiting until it is fi fina finalized. All of this comes as you look at shares of ford when the company will report q3 results after the bell and Conference Call analysts are expecting earnings up 50 compared to the Third Quarter of last year still Strong Demand and pricing, especially on the f150 and suvs as a result, that is the focus on the Conference Call today not necessarily the q3 results, but theagreement that call is after the bell. They release after the bell and we get the ford call gm and stellantis have strikers at their plants. For gm, that strike is knocked out or stopped with 15 of the production in the United States. For stellantis, these strikes stopped 11 of its production here in the u. S. Guys, one down and two to go lets see you how long it takes for the uaw to strike a deal with gm and stellantis phil, how do you expect this to go with the other companies is this a blueprint and 25 of the pay increase is that the expectation that gm and stellantis have to step up to that or are there other issues which are different with those companies over ford . Reporter the contracts will be similar, but there are differences. Stellantis a big push from the uaw is to reopen the plant outside of rockford, illinois the belvedere plant. They idled it earlier this year. They have no intention of restarting that plant. Sd stellantis does not. The the uaw wants the plant reopened what happens do they repurpose it as a mega hub for parts and distribution one idea which has been floated out there. That is not the same level of pay as the final assembly plant. That is one example, becky, where the contract with stellantis has different sticking points than the contract with ford or gm they are generally speaking in terms of the wage increase which will be in the same area and expect them to come in at 25 . To that point, phil, how far does this trickle out . We are talking about the specific companies and all of the supplies in the ecosystem will trade and those nonunion will use these as new baselines for everything or not . Reporter yes do i think they will get 25 for some of the suppliers . No i dont think they will get 25 . You are right, andrew. This resets the map in the Auto Industry for uaw and nonunion we talked about this for some time you can bet the pay will go up for honda plants and toyota plants all nonunion foreign auto worker plants. Pay will go up not as much as uaw is it doable for ford to stay wildly profitable . Do they have to stay with internal control we will hear from them similar to gm . The good times are rolling right now. Money is rolling in. The minute inventory sits on th lot and people dont want it, will this stick to the taxpayers . Reporter i dont think were at the point with taxpayers stuck with the increase. Jim farley its always happens. Reporter joe, lets talk about this discussion. Bill ford and jim farley have to thread the needle. They are not giving up on electric vehicles. They believe and most in the Auto Industry believes the future is electric vehicles. The question becomes how much of the inn vvestment going into th electric vehicles when you know demand is slowing down relatively what it has been in the past it is not stopping waging are surging. Reporter waging are going up ultimately this is the knock you hear especially on wall street about the big three auto stocks. How can these guys ever get the multiple they would like given the cost components relative to toyota, honda, tesla thats the one that people talk about the most tesla workers make far less than the uaw at gm and ford and stellantis when the contract is in, the gap widens okay. Thanks, phil. Breaking overnight israel conducted a targeted raid on sites in northern gaza with tanks. Described the raid as preparations to combat with idf striking terrorist infrastructure and antitank Missile Launch sites we will get more information i guess this would be the start of the ground war. To the mass shooting in maine last night at least 15 people are dead and around 50 people injured after a man fired in several locations in lewiston, maine including a Bowling Alley and bar. Residents were told to shelter in place while police searched for a suspect. Police have named 40yearold robert card as a person of interest we will update you on the story as we get more information. Hard pivot to this u. P. S. Reporting its earnings. Lets tell you about them. Beating estimates by 5 cents with adjusted quarterly profit with 1. 70 per revenue it cut the fullyear sales outlook. U. P. S. Was impacted by unfavorable conditions when we come back, we will dig into earnings. The big tech earnings. We show you what ibm and meta said those stocks moving. And the ceo of biontech will zhme us on the latest on the aleirs drug you are watching squawk box and this is cnbc that first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Cmon, were right there. Cmon baby. With a partner 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. Welcome back to squawk box. Lets get to the squawk planner. We have a busy day from earnings honeywell and merck and comcast. We hear from ford and chipotle after the bell today and we will get the first look at Third Quarter gdp today we will see 4 as the expectation, joe yes 4. 5. We get september durable goods orders and weekly jobless claims ecb will release the latest Interest Rate decision at 8 15 a. M. Eviastern time. Shares of ibm are higher revenue is in Line Software revenue up 8 consulting up 6 Mainframe Computers fell 2 . I dont know how many years you can go back and get similar drops in revenue guidance for the full year for ibm with the market cap loss we saw in alphabet. Ibm lost 166 billion. That is 124 billion lets talk about meta. Shares slipping this morning the social media giant with stronger results and the company widened the revenue guidance it signall led softer ad spendig since the start of the israel conflict we havehave Julia Boorstin with. The key thing here is the top and Bottom Line Results beat expectations meta is seeing accelerating Revenue Growth 23 Revenue Growth over 21 which was expected we are talking the fastest quarterly Revenue Growth in two years. Something happened on the call a little bit of weakness as investors digested the information which was lighter than expected. The cfo susan li said we are seeing a little bit more weakness and uncertainty and volatility when it comes to the Fourth Quarter with so much uncertainty with ad spending the same thing snap Ceo Evan Spiegel said you cannot contribute the spending to one region over this weakness the question is how brand advertisers in particular respond to this ongoing war. Brad, how concerned are you about this and the other thing i would mention is all we talked about metaverse and how much they were spending on the metaverse. That conversation has stopped. Now they talk about has the company pivoted to being an a. I. Company and will that work what is the opportunity to monetize that . Speak to what julia said with the call piece im concerned where you land on the a. I. Piece of it i think people being aware of the war and people had questions. You had snap say we are seeing meaningful pause in brand spending meta has low exposure in brand spending that had somewhat of an impact the other thing that came up on the call which was an issue is they called out china as a source of strength in all regions of the world for ad spend. You had a couple of ecommerce players that have come in aggressively when you are driving that much strength right now, it calls into question how sustainable that is into next year 290. 60 right now is this a good deal . Absolutely. We think longer term stock trading 16 times earnings. Share gainer over the next few years. That is a compounder recognize there is always noise on some of the prints with everything going in the world right now. I would point out, andrew, over what happened to the metaverse. Mark zuckerberg talked about it, but he pivoted saying a. I. Is part of everything and it is driving the advertising results and it will make things better the metaverse is all about a. I the way they talked about the headsets and the ray ban gr glasses. I want a pair you can ask for advice through the a. I. Glasses or ask for directions or information. All of that initially started out being about the metaverse and now it is about a. I. It looks cooler than the google glasses they dont have anything in them except a camera on them they have the speakers. I did a demo of them last week they have the speakers, you can say hey, meta. Ask for a recipe or instructions let me ask brad here you are. Is that a killer app for you . The truth is if siri were better, you could do siri is not bad and you can do it it w with the google app. Ask the same questions nice uppercut, julia. The key thing here is meta has the embedded 10 million plus advertiser relationships they have the commercial relationships already. They are bringing the technology in when you think about how we call it access the internet mark is tielling us this is how people will access the internet in the future. You have to stitch that together by the way, no one thought about the fact that a. I. Is moving in from the ad recommendation you are selling to the a. I. Not just human any more, if you think about it. Hold on you warped my brain there. You are selling to the a. I what do you mean by that if the a. I. Is helping you navigate the internet, there is a farpartner in crime exactly some amount of subjectivity to how they help you navigate that relationship thus, the ads will need to reflect that the a. I. Will start to know you, if that makes sense. Julia, thank you. Brad, great to see you i appreciate it. Thanks. Private equity giant silverlake is working on taking evndeavor group private. It has a majority stake in tko holdings which resulted from the merger of wrestling iente entert entertainment. Silverlake ownss 70 . Ari emanuel says we believe this is a prudent approach to ensure we are maximizing the value for shareholders endeavor went public in april of 2021 before the after hours move, that stock was down 35 since the ipo being up 23 right now which is a gain of 4. Coming up, Sam Bankmanfried is expected to testify in his fraud trial. We will tell you how soon he could take the witness stand. And coming up later, nik ley is joining us. Thats in the next hour. Icy hot. Ice works fast. Heat makes it last. Feel the power of contrast therapy. So you can rise from pain. Icy hot. [soldier] take a look at this s theyve left us a gift. [soldier] i think we misjudged them. I love horses. birds chirping [soldier] we should open the gate. Lets see what charlotte thinks. [narrator] at crowdstrike, we monitor trillions of cyber events to detect threats and prevent breaches before they happen to keep your business from becoming history. We stop cyberattacks. We stop breaches. We stop a lot of bad things from happening. Crowdstrike. Protection that powers you. Lawyers for Sam Bankmanfried revealed he could testify as soon as today in a letter to the judge, Sam Bankmanfrieds legal team outlined three key points. They indicate he could try to shift blame to the former legal team or blame the status quo in crypto or blame authorities in the bahamas for some of his postbankruptcy actions. His attorney seems to think Sam Bankmanfried pmay decline to testify if the judge would not allow him to speak along those lines. What . It is fascinating the judge limited what can come into the case. The idea, for example, of blaming lawyers. How do you blame the bahamian authorities . I dont know. Except to say you were regulated. They should have caught if they were authorizing these things that is the argument a lot of the stuff, the judge has not allowed to come into the trial at all i think a lot of people are watching this case and obviously increasingly seems like a slam dunk there is little defense mounted at all almost no defense mounted. One of the main reasons that is the case is because the judge is limited what can be brought into the case why why is the judge limiting that he has a particular view. It is interesting to see, im sure, that the lawyers are hoping to set up a situation if and when they lose that they appeal the case on the grounds that certain aspects of the case were never tried in the case it will be a very hard case to win on appeal or try to have a second trial, effectively. That is clear if you are watching the tea leaves and given the way the judge has been hard lined over what is allowed in and out and in a way that people raised questions. That will be the debate. It gets stranger by the minute. When we come back, we will tell you what the new House Speaker mike johnson said yesterday about his legislative priorities plus, the ceo of biontech will join us on the companys new alzheimers data while we head to break, lets look at yesterdays s p 500 winners and losers announcer executive edge is sponsored by at t business next level moments need the next level network. 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. Only the sleep number climate360 smart bed lets you both sleep up to 13 degrees cooler or warmer on either side, and at your ideal level of comfort. Your sleep number setting. And now save up to 500 on our new sleep number smart beds. Sleep next level. Shop for a limited time only at sleep number. The first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com good morning welcome back to squawk box. We are live from the Nasdaq Market site in times square. Looking at futures still in red arrows. Dow futures down 85. S p down 22. Remember, the s p closed below that 4,200 level yesterday nasdaq was the big loser yesterday. The futures are indicated off 120 points right now. We have merck just out with the results. Checking the yield is the first thing with merck for so long, it was a bond with upside that is not the case 2. 8 drugmaker with the profit of 2. 13 a share. Revenue also above the wall street forecast. Results were helped by a particularly strong growth in oncology treatment and vaccines. Doing okay not on its highs trading at 103. 119 was the high. Biontech presented alzheimers data with the medical meeting this week. Angjelica is here with me when you looked around, you said this is amazing. Is that the first thing you thought on squawk box and were all thinner and taller in person that is what i thought about. Thanks for having me we had a few updates from biontech from the alzheimers conference up in boston. Biontech and partner are saying the drug leqembe is approved in an iv form the companies are saying they will move ahead with approval to seek approval in march that drug clears harmful brain plaque similar to iv form. This is the second approved drug for alzheimers. The first faced controversy over efficacy and regulatory review we will get a better sense when the Company Reports earnings neck next month being able to inject at home inn s stead of infusion could help it. Biontech is testing another drug other than lequembe. We will keep an eye on it. We hear Home Infusion it was a growing business. People need to go in there are big delays and back ups. You need it twice a week iv. Injectable. The old one was twice a week iv even when it was approved, it will not move the needle it is too difficult to administer this is like insulin or epi. This is easier i thought i saw it removes the plaque 14 better than iv. That is what they presented last night which is really interesting. It actually works better than the iv at removing plaque. It com