Little over two points. Business leaders continue to speak out about the election. This is what mark cuban told us on this program yesterday. He is going to say things that are stupid and ofshive that could lead to some sort of military action not originating from the United States but from another country that is the worse thing possible for the stock market. So spencer we are looking at the longest losing streak of the year, maybe five years, depends how we close today. All is all that a reaction to the things cuban is talking about . I think it is. We saw this friday with the new fbi letter coming out. The market hates uncertainty whether stock market or Housing Market. What could be more uncertain than prospect of a President Trump . Some say a president clinton. I think the most ardent trump supporter would agree that trump revels in being unscripted and off the cuff. You dont know what he will say and what he will do and that is the definition of uncertainty. That seems to be the crux of his argument but he went on to say that the risk premium for clinton winning the white house isnt necessarily zero, that spending will remain at higher levels, that there will be Foreign Policy that not everyone agrees with. How do you match them up together when you think of how to invest. You have the known and the unknown. The fear of the unknown is greater than volatility. From a housing perspective we look at both candidates and what most housing economists say is clinton will be neutral. The survey of 100 economists that we collected data on seems to agree that that is general consensus. Wouldnt you expect the market to figure it out over time how trump works, how he communicates . There are questions of international policy. Either candidate when elected president will be stymied domestically. There is no doubt they will walk in and implement policies. If there is a President Trump what foreign adventures will he take us on . And that scares people like mark cuban and the market. We think most near term about we are getting into the Holiday Season and will there be a hangover and where will Election Results manifest itself in the economy. Neither of these candidates will emerge unscathed. What does the hangover look like . It is a contested election. That would be the worst possible outcome that clinton wins and trump doesnt. It doesnt concede defeat. We have who knows how long of this cloud over us that will be very unfortunate. Either candidate will lack a mandate when elected and a contested election will create more uncertainty for the market. What if clinton wins, its not uncontested but the overhang of what the fbi looks into continues . That seems like the most likely scenario. That will create another cloud over clinton. It will be difficult to govern because trump catalyzed the right and created so much attention and focus on clintons flaws. If there is an Ongoing Investigation it will make it more difficult. Thats the only thing that we can agree on from this is either case is not clear as skies ahead. Spencer mentions housing speaking of the election and housing. Here is a question. Which candidate is better for the Housing Market . We have thoughts on that in washington. Reporter hard to say because housing has been absent in the political rhetoric. Neither candidate put forth plan to reform Mortgage Market nor to accelerate what has been a slow and bumpy housing recovery. Housing will come down to regulation and the governments role. Donald trump is antiregulation opposed to doddfrank. If he were to break down the regulation in the Mortgage Market and banks were less afraid of getting sued we might see the Mortgage Market open up a little bit. He favors private capital but bringing that back to a still shaky Mortgage Market is a lot harder than it sounds. Hillary clinton has talked some about Affordable Housing in under served communities. There have been proposals for down payment assistance programs. She would be building on what is already in place in the Obama Administration that is lowering fha premiums, cutting guarantee fees, both of which make mortgages cheaper and help borrowers to qualify for credit. I think there are barriers to housing that are relatively easy to remove and can be done Via Executive power. We dont need to reinvent the system on day one. Now, in the end housing comes down to the economy like everything else, whichever candidate is better for jobs and incomes will be better for housing because those are the primary drivers of homeownership. If you want to hear more opinions on this it is online. Thank you for that. Our next topic microsoft says a group of hackers linked to the russian government were behind Cyber Attacks that exploited a security flaw in windows. Microsoft says it will release a patch on november 8. Microsoft ceo set to speak at an event in new york city. We will monitor that to see if he has comment. Just in the last couple of weeks the narrative had begun that it was microsoft doing the interesting things, not apple. I mean, the clear winner of this election cycle and news cycle have been the Cyber Security stocks and Cyber Security overall. If you are running a Public Company or private company and you are not focussed on Cyber Security you have your head in the sand. This is moved out of the suite and into the board room. What is interesting about this situation is google is the one that actually identified the hackers and posted about it. Which did not make microsoft or adobe microsoft was very disappointed to say the least that google called us out publically. I think they are grateful that google identified the flaw. Its a lot to chew on as a tech leader. Google said it found the flaw about a week ago and it has an obligation to its users to disclose it. What is best practice. Microsoft will not patch it for another week. If you ask best practices to discuss it privately google made it publically known that there is a hack on a competitor service and wont be fixed for another week. Tech Companies Work behind the scenes all the time and share information all the time. That was a bit surprising to those in the know. It is rich considering that the majority of mobile hacks happen on the android operating system and that a Campaign Manager for a Major Political party had all g mails dumped on to wiki leaks. You think they were trying to have press deflection . I dont think so. I like to believe that they really were doing the right thing for their users and we werent motivated by other moti motives. Why shares of those companies arent higher . I think the stocks come out with a bang. And then they end up trading on Company Specific issues, not macro issues. Cyber is in the news but they had a big company. The big surprise to me is daily dumb beat of wiki leaks information is that there havent been more revelations or scandals. We have learned that a couple of days ago we learned Hillary Clinton sent wellworded emails to parents concerned about the foundation. We learned eric schmidt sent advice to the clinton campaign. We learned dnc leadership wanted Hillary Clinton to get the nomination. Those things should surprise nobody. With tens of thousands of emails i kind of felt there would be more juicy stuff. A couple more days. There is a lot to sift through. There could be something on it. I assume every email i write will be publically revealed. Its just that is the day and age that we live in. You should assume that, too. As i say, it is surprising that more hasnt come out. Lets get to shares of zillow enjoying a nice day back to 35 beating on revenue and earnings, raising revenue outlook for a full year thanks to increase in user numbers. We had on tough quarters this doesnt appear to be one of those. Revenue up 35 year over year. Fwr we raised full year outlook. Things are going very well. The benefits of our combined audience scale are starting to acquire fruit. All brands have between two thirds and three quarters of all home shoppers looking for real estate either on desktop or mobile. We are firing on all cylinders. Are you sensing a flurry because people sense rates are rising . Rates have been so low for so long. You have to remember how the math works. A 25 point basis increase equates to 25 a month increase on mortgage. 200,000 mortgage. The average u. S. Mortgage 25 is 25 a month. It doesnt move until higher mortgage rates. We hear people complaining about supply that there is not enough on the market but making prices rise to a point beyond affordability. About half of home buyers dont get the first home they bid on. What remedies that is slow and steady price depreciation. We have 12 of all homes with mortgage upside down on their home. They cant list because they have negative equity. The issue with new construction is it comes in at the high end. There is not that much inventory at the low and mid part. We have seen the percentage of sales on some types of homes coming from firsttime buyers. Zillow released the largest study of all home buyers ever. It has got incredible information that shows 46 of all home purchases are gogoing to age 36 and younger. The millennial buyer is the buyer. That flies in the face of home buyer being in 50s or 60s. Those people are using the internet and smart phones to shop for real estate and agents and much more smarter going into the transaction. Millennials will end up having to buy homes. They are going up against biology. The media sometimes says millennials dont buy music or movies or cars. That is just false. If i show you a chart of home depot, whirlpool noticeable. I dont know about those stocks. I know that the Demographic Data says Millennials Want to buy homes and they are. Half of all home sales are going to millennials. They are impacting the market in a big way. Good to see you again. Thanks for coming in. Joining us from zillow. Markets are cutting the losses at this hour. People are looking towards the election and the uncertainty and then the fed decision coming out and then there is this inventory build largest on record although underlying data is very nuanced. Definitely worth looking at that. Crude is down by about 3 . Bro broadcom announcing it will buy brocade. Broadcom is up 1. 5 . Take a look at visa. The company was reportedly set to lay offtween 800 to 1,500 people. The company says it is eliminating some roles after acquisition of visa europe. The company didnt disclose the number of people affected. The shares are down about half of 1 . You see this in almost every single m a transaction. That is a large percentage of the work force. Square seeing a nice gain after beating on revenue and raising its full year guidance. The companys cfo will join us. Watching facebook getting ready to report earnings after the bell tonight. We will tell you what to watch. Shares of alibaba worth noting. A closer look at those numbers when squawk alley continues. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Man, im glaaflac c pays cash. Isnt Major Medical enough . No whos gonna help cover the holes in their plans . Aflac like rising copays and deductibles. Aflac or help pay the mortgage . Or child care . Aflaaac and everyday expenses . Aflac learn about one day pay at aflac. Com boat blurrlblrlbr ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Take a look at shares of square up 6. 5 after reporting strong Third Quarter earnings this week. Shares as you can see 11. 81, one of their highest levels of the year. Sarah friar is cfo of square and joins us from one market. Great to have you. Thanks for having me. You have now had three quarters not only of Strong Performance but of increased guidance for the full year. Have you previously been guiding too conservatively or has momentum been better than expected . I think the company has been executing on all cylinders. We have definitely executed beyond our expectations. We see it in our results. Three quarters of beating the overall analyst forecast and lifting our guidance. We are particularly pleased with the year over year growth and adjusted revenue. One of the big parts of the square growth story is Square Capital and lending 208 million in credit extended to Small Businesses including square customers and including those who are not square merchants. How does that break down . How many people outside the square ecosystem are taking you up on a cash advance . As you mentioned, the business has been going from strength to strength. That billion dollars went in just two years. It is amazing for a product that is just starting from scratch. You are right that one of the avenues for growth is starting to work with partners so we announced a partner in the quarter and began to take the first step into merchants that arent necessarily on the square ecosystem. It is just one step. There is still a lot of opportunity in our base. Over the next several years most of our growth will come from square sellers sitting on the square ecosystem. You know, the most iconic symbol of the company is the square reader that plugs into an iphone or sits on the counter. That is becoming a shrinking part of the business although credit s swrks uisse upgraded your stock based on the fact that hardware losses are expected to be smaller than previously thought. How big or small a part of the business would you like that to be . So absolutely the whole ecosystem is premised on hardware and software and services that we add on top. Hardware is important because it is a way for us to bring our sellers on to the system with the best possible technology. You know the head phone jack we released a new reader at the end of last year that connects to the phone through blue tooth. It was important because it accepts things like apple pay and android pay just making it much more secure for the seller and the buyer and also just so much easier. I think it is also worth noting that so Much Technology is coming through software so the amount that hits the head phone jack is down to about 18 . That is software way of taking payments. It is about staying foot forward from a technology standpoint and ease of use standpoint. When you look at the trajectory of Small Business creation or expansion in this country whether or not you think the election is material in how that changes over time. So the resilience of the u. S. Economy has been wowing to watch. I think you see it in squares results. So the fact that we are now processing 13. 2 billion, almost 40 year over year we see no slow down in just the health and just the vibrancy of that Small Business market. I think almost 500,000 new businesses are created monthly. I think that is a huge part of what keeps the u. S. Economy strong. I think regardless of how the election turns out we will continue to see that just growth from the entrepreneurs who really get business going in this country. Are there parts of the country where growth or expansion is slower than in major cities because of some of these head winds and because of the economic forces holding consumers and businesses back . Its an interesting question because square is so broad we actually get a really deep real time look at microcosms. One example is weather. When we saw the hurricane blow through florida we absolutely see that impact happen to businesses and we want to be there as they get back up on their feet and make sure that while other systems might be down square because it is mobile is right there with them. I think beyond that we do watch to see are there parts of the economy perhaps particularly merchant types that are slowing or growing faster. I wouldnt say right now that we see any particular trend happening. I would go back to what i said previously that Small Businesses are very healthy at the moment. I think it is because they can do things like get access to capital, getting right down into places where banks, et cetera cant reach any sort of Cost Effective way. As square diversifies and adds new businesses and refines its strategy there are some analysts who say parts of the business that were previously focuses for the company can you talk about whether you see square owning caviar a few months from now . We are delighted with caviars performance. I think we got into that business for exactly the reason we are in business. We want to bring more sales to our seller base. Caviar does that. If you are a restaurant you are constrained by the size of your restaurant and the amount of time where you can feed people for dinner, for example. What caviar does is opens up that restaurant kitchen to do things like delivery or pickup. Since we bought it orders are up 11 x which is an amazing growth trajectory. It helps us get into bigger businesses. So the average caviar plus square merchant is doing over 500,000 in revenue. So for us