The equities tenyear yield is below the 5 we have been crossing over earlier in the week. Twoyear yield an above 5 oil is another interesting picture to watch wti has been trending up this morning after being down for the week down by over 6 . Lets bring the developing story from the middle east fighter jets launching a strike in two locations in Eastern Syria. The pentagon says this is linked to the Iran Revolutionary guard over attacks on u. S. Bases that began last week killing one u. S. Citizen and injuring 20 more the pentagon says the u. S. Does not seek escalation of any conflict and describes this as a separate issue from israel and hamas. You have to think the issues which emerged in israel with hamas have inflamed the situation. This is the Iranian Revolutionary guard with the attacks. It is hard to separate one from the other with Iranian Revolutionary guard proxies with hezbollah and hamas. If you watch the news and every time you watch it, you say this is the 17th attack since october 7th on u. S. Forces in the middle east. You know whats driving it you have to answer it you know the Biden Administration is under pressure the big question now is whether bidens red line with iran will go the same way. I assume it will go the same way with obamas red line with s syria. We will not do anything. No way the concern is what happens if this becomes a larger issue i think they know that. They have been testing. Wti up 2. 5 this morning because p market this week was trading as if this was contained to gaza. Some concerns reversing. Little bit. 85. We were down 6 as of yesterday. 5 growth rate. Shares of amazon are higher. Earnings of 94 cents a share beating estimate revenue of 143 billion came above 141 billion expected. Those profits tripled. Amazon web services below estimates of 23. 1 billion revenue. Advertising revenue above expectations at 12 billion. Staggering numbers thats up 26 from a year ago. It eclipses google ad growth of 9 and metas ad growth of 23 . Intel shares are jumping 41 cents a share beat expectations of 22 cents revenue beat estimates, but fell the 8 from a year ago Current Quarter revenue guidance came in higher than expected and the company told investors it expects rs revenue to grow in te Current Quarter. Pat gelsinger spoke to jon fortt last night that was one factor that improved the Financial Performance this quarter as we are adjusting the factory loadings we had to work off the inventory and under load charges that is now a tailwind that improves the Gross Margins significantly for us this quarter as one of the factors. Overall, everything is working better gelsinger said the company would cut costs by 3 billion this year. We will bring you more with the interview later in the show. That stock up 7. 9 this morning. Still over the threeyear period that we are looking at right now, it is down 23 . A lot of questions if you can turn this around and what will happen with the foundrys they are building. And shares of ford are sinking. Earnings of 39 Cents Per Share missed estimates r revenue lower than expected. Ford withdrew guidance over the tentative deal john lawler blamed the earnings miss on the strike and quality costs. The strike cost 1. 3 billion in l lost production. North america customers are unwilling to pay a premium for evs. And now a postponement of 12 billion of ev investment some Sales Numbers were lower than expected. Not just that, but the uptick in the goal line as they talk about moving the goal posts. Refuse to pay a premium for ford. Tesla is bringing down prices, too. I know. They are still everywhere. I dont see ford evs i dont see any big three evs anywhere in that is the reason elon is bringing down the price. He doesnt want to lose market share. If people are willing to pay a premium for tesla, you say yes. You dont pay a premium for the big three. By the way, 4,577 on the s p it was below 4,150. 4,137 9. 9. 6 . Were almost in a correction territory. Nasdaq already is on it the s p up to date. Were very close ill round that up speaking of evs. Hertz pumping the brakes on the fleet to evs after repair costs came in higher than expected after teslas price cuts reduced the resale value of the majority of evs in the fleet to onethird. The ceo last night on mad money. Depressciation went up becau tesla took price down by a third earlier in the year. The price difference is expressed through depreciation the opportunity to dump the car is not one that is available to us it is not one i would take theres positive margin to be had in the existing fleet of cars well buy our price down over time hertz will not meet the target of 25 electric fleet by 2024 as it hoped previously. Shares dropped 10 yesterday after the mostly positive earnings report. Tesla shares fell by 3 during yesterdays session. What happened to fords blockbuster billions that caused them to give 25 increase . What happened . They still had big profits. Profits up. It is a relative term compared to expectations and Everything Else. Durham points out that President Biden praised it as a historic tentative agreement. One reason tesla can still make money is the increased of automation and they dont pay as much in the end, if the administration is forcing everyone to make the evs causes the company to be less profitable, there is more automation and uaw long term will be hurt by this agreement will mean less evs which is why ford is going to invest 12 billion less in evs. Thats where they will make it up for now. Any normal company will not do something to result in higher profits. We are watching shares of apple this morning as well u. S. Federal agency found that apple violated the patent of the rival tech company the ruling could lead to an import ban for models of the smart watch starting on christmas day. The company said apple violated the patent with the blood oxygen levels apple poached employees to pursue the pulse oximeter. Apple said the device copies its products the Company Found apple was in violation of the u. S. Trade law. The commission ordered a ban on appar apple watches that contained the Technology Apple hopes the decision will be reversed on appeal shares up 50 cents right now in the meantime, Jpmorgan ChaseCeo Jamie Dimon with the s. E. C. Filing saying dimon and his family will sell shares in 2024 citing diversification and tax planning it is the first such sale since taking over the position his family holds 8. 6 million shares he believes the prospects are strong and plans to retain a significant stake. Hes been the ceo a long time. That adds up. If you add it up, thats real money now. 140 stock hes not a founder he did enough to be almost considered a builder of that business that was the thing for a long time a chicago guy and then a new york guy. Bank one was columbus then chicago and it turned into Jpmorgan Chase before we head it to break, a long time guest of squawk box and friend of the program buy byron wien has died. He was the chief u. S. Investment strategist at more sgagan stanl. Byron said it was about his life lessons. There were 20 of them. He delivered of the last with good humor never retire if you work forever, you can live forever byron wien was 90 years old. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Whoa thats one way of phrasing it. French Drugmaker Sanofi taking a hit this morning down 16 following the release of quar Quarterly Earnings and maybe more importantly the guidance of 2024 and the spinoff of the Health Consumer business joining us for the interview on the day you need to do the interview. Paul hudson from sanofi. Anyone can take a victory lap, paul this is the day you need to explain to shareholders what your view is of the companys prospects and whether the stock move is warranted. Well get to the earnings for the last three months in a second for the outlook, you have tax changes, global tax changes and a big increase in investment for r d. Which is more troubling or shocking to investors, do you think . Lets take a step back. The results announced today, Great Results for q3, of course, but we witannounced bold moves d. That is where people were not expecting us to be quite am ambi ambitious. We can create more shareholder value and doubling down on science which is matured and set up well. We didnt want to make a tradeoff we take the long hterm view wi today being unsettled today. We have the Earnings Calling today and the r d later. We will start goatto get back to where we need to be. Maybe the notion you have to spend more is troubling to investors because of the state of the business right now. Third quarter net sales did fall to 11. 96 billion euro. All Drug Companies lose excessive of products. That is wegovy you know, im glad you raised it the last major loss this decade. We are one of the least exposed companies in the entire sector which is one of the reasons were able to double down on science. We had three major launches this year, not least for rsv and diabetes we shared confidence in our earnings numbers it is an important moment. We have such a rapidly growing pipeline of best in class assets we have a choice to make do we go after them and try to show what we are tape able of do capable of doing and change the trajectory of the company or pull punches we have to go allin on science. We are confident of what we are doing and confident in our launches we think shortterm disappointment as we bring clarity for that and people will understand we are proud of the progress we made, frankly, since we laid out the strategy in 2019 we knew this moment would come it is an important moment. On the journey to be a pharma company, we will separate our Consumer Healthcare business another declaration of commitment to focusing on science and Value Creation you know, you have given back almost a years worth of gains with the stock 20 year over year and down 16 to today. If you exclude the tax rate change, its flat. If you include the tax changes, which are interesting, and why wouldnt people know about that . Tax rate from 21 to 19 if you include that, you will be down eps in 2024 low single digits. It takes faith and clarify tore clarity to say you are benefitting in 2025. 2 billion in cost cuts, not the payoff from the investments. Through 2024, you are cutting exp expenses what with e announced today a 2 billion euro spending sorry, savings plan. We will reallocate the majority to r d we will reallocate to the most important projects that will create more value that way. The tax piece is known, but you have to declare what you think it will mean for you for the up sdls upcoming year. Thats helped navigate us safely through difficult times for the sector and all sectors in fact what we said is, you know, watch our eps. It will be broadly last minus the tax next year. We will rebound strongly in 2025 the statement to be able to say that means we increased our flexibility to go after organically and inorganically the right type of science to create the most longterm value. If we stick where we were, there is a chance we let opportunities go thats not the right thing to do for patients those with difficult diseases to treat. It means we will create the most longterm value as possible. We are well positioned for that. For those that join the researc and development, you get a f flavor for that we like things to be better, of course, in terms of stock market reaction, but with clarity and information, we are in a good spot paul, theyre wrapping me up. What caused the rise in the tax rates . A global thing based in france. Can we glean anything from that . I would rather you spend that 2 at 19 to 21 and i would rather you have that go to r d. This is kind of an example of why Drug Companies argue that the longterm benefit, you can generate more from the capital than maybe pay taxes, corporations need to pay taxes this is impacting your ability to invest in the business. Let me be clear we are running a more efficient business we made 500 bps improvement. Who raised the taxes . This is just a Global Harmony change of the rules. This is getting to a Global Tax Rate our guidance we have given is to say despite the headwinds, were confident in science and where were heading, we will power through. We are well set. We are really well set for the rest of the decade well keep an eye on it and see improvement in the shares throughout the session i appreciate you coming on paul, thanks thank you chevron just out with the quarterly numbers. Energy giant reported profit of 3. 05 a share. That is below the consensus estimate of 3. 75. Looking through the things, revenue number at 51. 9billion. Above expectation. It was below the year ago number with 63. 5 billion. Oil prices came down year over year for that quarter. When they talk about what happened with this, they say the lower profit numbers over a year ago not only lower oil prices, but also lower realizations. Lower margins they saw on refined profit sales product sales. Cap x in the Third Quarter up 50 from a year ago. D distribution is 2. 6 billion dollars. 3. 4 billion in share buy bback. They were down year over year with restrictions related to acquisition to the pbc energy. You see the stock down 1. Buy more oil assets they need to good idea they had the ak ri signi acquisition of hess and pioneer. We are watching exxonmobil here is where chevron stands numbers down year over year, but up quarter over quarter with profit and revenue when we. When we come back, we have the highlights of Sam Bankmanfried on the witness stand. We also have the first on cnbc interview with darren woods. Squawk box will be right back. Ameritrade is now part of schwab. Bringing you an elevated experience, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. 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Sam bankmanfried taking the stand in his defense without the jury present a dress rehearsal, of sorts, in the landmark cryptocurrency fraud trial. Kate rooney is here with more. The jury left halfway through the day. Detour yesterday Sam Bankmanfried did get up on the stand, but no jury in the room this was so the judge could decide if topics are admissible and including the corporate lawyers. He was wearing a gray suit and shorter hair defense team kicked it off he tried to blame the lawyers. That the point, Sam Bankmanfried seemed calm and giving concise answers not the case with the prosecution started grill him. He stalled and took multiple sips of his water bottle and could not remember certain things he would say i would not classify that as particularly what happened. That was one example of an answer the judge was frustrated with the diversions he repeatedly told him listen to the questions and answer the question directly. He noted sarcastically that the defendant has an interesting way of answering questions Sam Bankmanfried will continue that testimony today and in the coming days facing more cr crossex crossexamination. If the judge suggests he lied in the testimony, that could add years to the sentence. We expect the judge to rule on what the jury can hear this morning. They are back in the courthouse in a few hours i have a couple of questions. A moment where i was reading the transcript where there is an objection. The judge sustained. He answers the question and his lawyer says what are you doing havent you been here . His lawyer said we are going to the next question and tried to coach him up there. That was fascinating what do you expect . This defense, which is largely around the idea that he had lawyers that were advising him to do some of these things or with the advice of counsel a bit of a trumpian defense, to be honest with you do you think judge kaplan will go for it . He used the hypothetical situation. Say you robbed a bank and if you use that money to buy an apartment and you had lawyers work on some of the documents for the apartment, the lawyers are not libel, they did not know about the bank robbery he did not come around to the argument it was the lawyers fault. What do you mean oversized gray suit . He got a haircut. He had to go to goodwill for the suit he didnt have nice clothes it is weird oversized suit it was the detail you need, joe. I know. I cant tell from the drawings that looks like norman scott. He was known for having big hair and now he looks like he lost weight. The judge is not buying any of this . He will not let him testify because he wont tell the truth . He will testify, but not a